The Village
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Dear Susan,
After thoroughly analyzing the data you provided to us we concluded that the problem boils down to one simple issue: Seven to eight more premium suites need to be occupied on average from Mid-June through Mid-August. The reason we say that is, the best occupancy numbers we can hope for are those equivalent to those of your most popular rooms during the busiest time period. That percentage is eighty-five percent. So, during the Sunday through Thursday lull that is being experienced by the Premium Suites, there is a deficit of twenty-five percent occupancy or between seven and eight rooms. The potential revenue increase, based on this target occupancy, is approximately forty thousand dollars based strictly on lodging revenue. As you informed us, most of the special amenities and programs you offer will be fully booked during this time period. So any amenity revenue increase based on the increased visitor total will be nominal.

With all that said we decided that targeting the same audience that currently occupies these premium suites during the week would be a futile exercise, and obviously couldn’t justify a marketing budget of seventy thousand dollars with a maximum revenue opportunity of around forty thousand dollars. Our vision is to change the target of the consistently unoccupied rooms to a very specific one: Young to Middle-Aged couples. With a small investment of about seven to eight thousand dollars worth of furniture purchases (consisting mostly of king size beds), the now unromantic twin bed suites could transformed into romantic weekend suites for couples who want to get away during the week to avoid the weekend crowds, and thus not particularly want to partake in the already over booked amenities. With this upgrade and being only a few square feet smaller than the next suite size up the nightly rate could be increased to as much as two-hundred and fifty dollars per night and still be substantially less than the other suites. This alone increases the revenue potential close to seventy thousand, almost a thirty thousand dollar increase during the aforementioned nine week summer period alone.

So besides the furniture upgrade the only other expenditure excluding our fee would be the media and production. Given a new specific target with these rooms, it allows is to get very specific and creative with

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Dollars Worth Of Furniture Purchases And Small Investment. (June 12, 2021). Retrieved from https://www.freeessays.education/dollars-worth-of-furniture-purchases-and-small-investment-essay/