Money Money Money Exercise30 Minutes Each of you will start with the same five room hotel. Your job is to maximize revenue. In a few minutes, reservations will appear on the screen. You can either accept or deny the reservations but you want to make sure you are filling as many rooms as you can with the highest rate. However, you won’t know how many reservations are coming so you have to be discriminating.

Revenue Management Exercise Let’s go ahead and take a look at an example. This is a sample of your five room hotel. You will be taking reservations and filling in the boxes to show that the room is occupied. *This is a Holiday Inn Hotel

Reservation Request - EXAMPLE Here is a 2 night reservation request arriving Wednesday for the IBM rate of $80. If you decided to accept the reservation, you would simply fill in rate for Wednesday and Thursday. A new reservation will appear automatically every 15 seconds. Just like the real world, you won’t know when they will stop?!

Revenue Management Exercise It would look like this.Since we want to make sure everyone has the same opportunity, we have a few guidelines for our exercise: One Room per Reservation Only 5 Rooms – TOTAL Line is NOT a Room When a Room and/or a Night is Filled, You Cannot Accept the Booking Once a Reservation is Denied or Accepted, you Cannot Change Does anyone have any questions about the rules or the exercise before we start making some money? Address questions as neededAlright—let’s get started! *This is a Holiday Inn Hotel

Reservation Request

Reservation Request

Reservation Request

Reservation Request

Reservation Request

Reservation Request

Reservation Request

Reservation Request

Reservation Request

Reservation Request

Reservation Request

Reservation Request

Reservation Request

Reservation Request

Reservation Request

How did you do? Add Up the total revenue for each day Then add up the total revenue for the week Highest possible revenue…$2330