Microsoft Word - OCR_Skyview Manor

Microsoft Word - OCR_Skyview Manor - Skyview Manor This...

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Skyview Manor This case is adapted by Professor John Shank of the Amos Tuck School, with permission, from an earlier version written by Professor Felix Kollaritsch of the Ohio State University. It is set in America. They note that a lthough the case is now almost forty years old, it includes a little “history lesson” on cost levels from the early 1960s. This case study is set in 1962 in rural Vermont, USA. The Skyview Manor is an old, but well- maintained property that has changed ownership several times over the years. It has no restaurant or bar. It is positioned as a mid-price, good quality “destination” resort hotel The Skyview Manor is open only during the skiing season. It opens on December 2 and closes the last day of March. The ski mountain that it serves operates on a permit from the state which allows only 120 days of operation per year. Each of the 50 rooms in the east wing rents for $15 for single occupancy or $20 for double occupancy. The west wing of the hotel has 30 rooms, all of which have spectacular views of the skiing slopes, the mountains, and the village. Rooms in this wing rent for $20 and $25 for single or double occupancy, respectively. The average occupancy rate during the season is about 80% (typically, the Hotel is full on weekends and averages 50 to 60 rooms occupied on week nights). The ratio of single versus double occupancy is 2:8, on average. Operating results for the last fiscal year are shown in Exhibit 1. Mr. Kacheck, the manager of the hotel, is concerned about the off-season months, which show losses each month and reduce the high profits reported during the season. He has suggested
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This note was uploaded on 10/23/2009 for the course HES 2340 taught by Professor Tomedwards during the Three '09 term at Swinburne.

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Microsoft Word - OCR_Skyview Manor - Skyview Manor This...

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