Sleep_Well_Inn - Individualassignment2DueApril26,2010...

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Individual assignment 2 – Due April 26, 2010 Sleep Well Inn The hotel group Hospitality Options Inc. is a well known company in the field of hotel management. Founded over 50 years ago, the company operates multiple brands of hotel chains in the U.S.A. and in overseas markets. These chains cater to different types of clientele. Since its inception, the company has introduced many innovative features in the hotel business. Sleep Well Inns were introduced in 1970s and have spread rapidly to over 1500 units in the last 30 years. Individual Sleep Well Inns are owned and operated by franchisees under license from the parent company. While there is considerable freedom in operations, each unit must adhere to certain standards and undergo periodic audits. The particular unit considered here is located about 10 miles from an airport of a city with a population of over half a million. It is actually located on the outskirts of a town (Green Hill) across the state border and is close to a state highway. The unit has about 65 rooms and majority of customers are business travelers. Many of the business customers are repeat customers. Most business travelers cross the state border and do work with companies located near the airport. Capacity Planning and yield management Hotel capacity in terms of number of rooms is fixed. Within this overall capacity, one needs to look at capacities in various categories: smoking vs. non-smoking rooms, rooms with double beds, king size beds, suits, rooms with Jacuzzi, etc. Once again, capacities in different categories cannot be changed easily although some minor adjustment may be possible on a daily basis for some categories. Rooms can be reserved directly by calling the hotel switchboard or on a walk in basis. Indirect reservation is through the Internet or through the hotel chain reservation system (or through travel agents). Yield management can be complex. While the owner can set any room rates, these rates are limited by
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This note was uploaded on 12/14/2010 for the course MGMT 361 taught by Professor Panwalker during the Spring '10 term at Purdue University-West Lafayette.

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Sleep_Well_Inn - Individualassignment2DueApril26,2010...

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