This is a short homework assignment for my hotel management class HMD 440. Please answer the questions related to revenue mnagemnt of a casino resort in a short answer format. No specific number of sources.
1) The Table Games manager has come to you and said that they think that the minimum bets for the blackjack tables are not working well. Right now, they have a $10 minimum bet Sunday through Thursday and a $25 minimum bet on Friday and Saturday. However, the demand for blackjack seems to vary not just by day of the week but by time of the day. What steps would you need to take to understand if you should change the minimum bet? Specifically, what information would you want to know and how would you examine it?
2) The Spa Manager has come to you and said that they are feel like they are having customer service issues that they think are resulting in a loss of revenue. The Spa has 10 treatment rooms and is open 8 hours a day, so they can serve 80 customers a day for 50 minute treatments. However, they also have 90 minute treatments available that use up rooms. Additionally, the demand seems to vary by day of the week. The Spa Manager knows they cannot take everyone but they want your feedback on a couple of ideas. Should the Spa take the reservations as they come in or should they set aside rooms for certain time blocks so they can maximize the rooms? Explain your reasoning.
3) The manager of the Golf Course has a dilemma. They had a lot of problems with people cancelling tee times the day before and then they were unable to rebook them. The manager put in a new policy that requires customers to cancel no more than 72 hours in advance, but it has made a lot of people angry, and they have lost revenue. The Manager wants your thought on three ideas. Should they have a 48 hour cancellation policy instead? Should they keep the 24 hour cancellation but charge a flat fee instead of the entire green fee? Should they go back to the 24 hour cancellation policy and instead overbook the course in anticipation of cancellations? Please give the pros and cons for each idea and choose one to implement.
4) Finally, the Revenue Manager has come to you with an idea they find very exciting. There is a brand new Revenue Management system that will allow them to implement dynamic pricing for the spa, casino, and golf course. This means that the revenue manager will be in charge of changing the prices for these outlets based on the demand they see. What would be some of the barriers to successfully implementing this program? What kind of feedback should the managers from these departments have? Do you think there would be different demands for each of these areas?
