Assume that a 350-room hotel sold 70% of its rooms last night. Today, we anticipate that 150 rooms will depart. We hold 120 that are 6 p.m. reservations and 150 that are guaranteed reservations. Ten (10) rooms are reported to be out of inventory after last night's damaging monsoon. We know historically that understays are 5% and overstays are 7% of occupied rooms; that early arrivals are 2% and cancellations are 6% of expected arrivals. No shows for 6 p.m. reservations are 10%; no shows for guaranteed reservations are 3%. How many rooms are available to walk-ins?

Question

Quizplus · Accepted Answer

Rooms sold last night: 70% of 350 = 245 rooms.Rooms departing today: 150.Rooms out of inventory: 10.Rooms occupied after departures and out of inventory: 245 - 150 - 10 = 85 rooms.Understays (5% of occupied): 0.05 * 85 = 4.25, approximately 4 rooms (since we can't have a fraction of a room in reality, but for calculation, we'll keep the decimal for accuracy).Overstays (7% of occupied): 0.07 * 85 = 5.95, approximately 6 rooms.Net understay/overstay effect: 6 - 4 = +2 rooms.6 p.m. reservations (120 rooms) with 10% no-shows: 10% of 120 = 12, so 120 - 12 = 108 rooms expected to show.Guaranteed reservations (150 rooms) with 3% no-shows: 3% of 150 = 4.5, approximately 5 rooms, so 150 - 5 = 145 rooms expected to show.Early arrivals (2% of expected arrivals): 2% of (108 + 145) = 2% of 253 = 5.06, approximately 5 rooms.Cancellations (6% of expected arrivals): 6% of 253 = 15.18, approximately 15 rooms.Net effect of early arrivals and cancellations: 5 - 15 = -10 rooms.Total rooms expected to be occupied: 85 (current) + 2 (net understay/overstay) + 108 (6 p.m. reservations after no-shows) + 145 (guaranteed reservations after no-shows) + 5 (early arrivals) - 15 (cancellations) = 330 rooms.Available rooms for walk-ins: 350 (total rooms) - 330 (expected to be occupied) = 20 rooms.However, since none of the provided options matches the calculated availability and the calculation process does not align with any of the given choices, the correct answer is:E) None of the above.

Assume That a 350-Room Hotel Sold 70% of Its Rooms