Bachelor of Tourism and Hospitality
Management BTHM
2022-SEM3-THH3113 Cost and Performance Management for Tourism and Hospitality
Assessment Task 3A, 3B & 3C: Individual Assignment
Assessment of the assignment is based on the adequacy and accuracy of the submitted assignment.
For all written work students must ensure that they submit their own original work. Any act of plagiarism will be severely penalised.
Students must:
• fully reference the source(s) of all material, even if you have re-expressed the ideas, facts or descriptions.
• acknowledge all direct quotations; and
• Not submit work that has been researched and written by another person. This assignment is done as a single individual assignment whereas they are submitted in three different parts.
Task 3A – 20% - Week 10 6th February Sunday 11:55 pm
Individual Video Presentation
Task 3B – 10% - 13th February Sunday 11:55 pm
Forum Discussion of the individual presentation
Task 3C – 30% - 20th February 2022 11:55 pm
Report on the analysis
Length: 1250 -1500 words
Weight: 30% - Individual Report
There should be an overview of the assessment task and expectations of students to successfully complete the task. This is an individual report. It should include the following:
Your work will be assessed in terms of the following criteria:
1. Effectiveness of communication – i.e. readability, legibility, neatness, completeness and presentation
2. Demonstrated understanding of the subject matter covered - This will be evidenced by your ability of submitted answers.
Certain aspects of these questions may require some assumptions to be made. Therefore, different answers are very acceptable. For ease of marking please specify these if you think it clarifies your decisions and responses. Unless assumptions are provided your work would be marked with the marking guide provided . The marks for individual criteria are already discussed along with the questions.
Your assignment must be submitted into the Turnitin drop box on LMS in the respective slots
Assessment Task:
You are the RM at Yarra Resorts in Victoria along the Yarra ranges which has 200 fully serviced bedrooms for guests to visit during the winter. Austin the property’s DOSM and Patricia the manager. Three of you serve on the hotel’s RM boards committee headed by the DOSM.
Last year 2021 first week June winter season records showed that the hotel had suffered a heavy blow because of the governments lockdown restriction and customers were not ready to risk their money and life because of the lockdown scenarios. This year they are getting offers from everywhere and they are worried that they will be overbooked. Austin the DOSM has received 3 offers and he wants to know which would yield more for the business during the first week of June weekend from 4th June 2022 till 11th June 2022. To make up for the loss from last year the management has decided to charge $259.99 per night for rooms on rack rate and its looking a for a 40% profit margin on the yield they make to compensate the previous years loss and also unsure about this years occupancy rates – Historically they are occupied only 60 % during this time
Offer 1: Austin was approached by the Yarra valley wine association to reserve 60 rooms per day (70% occupancy) from 4th June 2022 till 11th June 2022. The price quoted to them is $239.99 per night. (after discount) The group has requested Austin add 10 rooms each night to its block at the originally contracted rate of $239.99. It states that its members will use all the additional rooms if they are made available, but if not, they will move their remaining 10 attendees down the street to the Yarra Yard Resorts Inn. Austin is favor of increasing the block and keeping the group together
Offer 2: Patricia was approached by Horticulture University students wanted to reserve 75 rooms (75% occupancy) per day from 4th June 2022 till 11th June 2022. The price quoted to them is $218.99 per night.
There are two offers that currently need to be considered. You as a revenue manager is opposed with this offer as you are convinced that you can sell 20 more rooms each day for transit customers during the period at normal rack rate of $259.99.
Under your plan, you estimate that the hotel can maximize its ADR.The RM committee requires you to calculate differentiate explain which of their costs are fixed and variable and any recommendations to change from the variable to fixed costs or would that be better to stay as variable costs according to the cost behaviour and driver.
Yarra Resorts RM Committee are planning to find out whether Patricia’s offer would be beneficial or Austin’s offer should be considered or should they open for business considering your as usual to operate with the forecasted 90% occupancy.
Forecasted Expenses for the winter period 4st June 2022 – 11th June
2022 (7 nights) with 100% occupancy
Casual staff wages @100% occupancy $36,000.00
Electricity charges @100% occupancy $17,000.00
Full time staff Salary @100% occupancy $60,000.00
Guests’ laundry charges @ 100 % occupancy $1,980.00
Phone and internet charges yearly charges @100% occupancy $10,400.00
Room Cleaning charges @ 100 percent occupancy $5,000.00
Water charges @100% occupancy $6,800.00
Garden Maintenance charges weekly $680.00
Superannuation charges $9,600.00
Required:
The DOSM, head of the RM committee has asked you to prepare the following and submit a report to the RM committee with the following requirements below to decide.
Task 3A:
Prepare a short 6 to 8 mins video presentation about your findings and recommendations to the RM committee of Purple Resorts. (20 Marks)
The DOSM would like to see these following in the video Presentation for the committee.
1. The Forecasted total cost and revenue for Patricia, Austins Proposal and normal estimated occupancy and Break even unit (10 marks)
2. Comparison of Patricia, Austins Proposal and normal estimated occupancy and which would be yielding more and your recommendation on which one would yield more? (10 marks)
The video presentation should be a created using a PowerPoint slide with a maximum of 10 slides and minimum 6 mins duration (anything less than 6 mins would be marked zero) Once the PowerPoint slides are created, you can use Microsoft PowerPoint to Present and record your presentation. (please go to LMS online learning page to see how to create video presentations)
(Tip: First finish your draft analysis in task 3c and then do your presentation) Note you must upload the video link (through Google drive) and PowerPoint slide to the Lms Submission box (both Video and the PowerPoint slides)
Note: Posting only PowerPoint slides with no video presentation would be awarded no marks. The task requires to upload both using the LMS drop box link provided
Task 3B: Forum Discussion (10 Marks)
Task requirements:
• Develop (thread) for online discussion based on the Video by uploading your video link Task3A onto LMS discussion forum
• Request other students to comment on Your presentation by providing suitable discussion point/s
• Students respond to other discussion forums: Students receive 1 point (maximum of 5 points) for every response they receive from other students’ on their discussion forums. A response will only receive a point if it provides the opportunity for further discussion (5 marks). Your video submission link should be posted in the discussion forum by (week 10 - 6th February 2022
11:59 pm)
Week 11 – Sunday 13th February 11:59 pm Forum discussion Report submission in the
Assessment 3b submission link after taking screenshot of the colleague’s discussion. you must
paste the discussion forum with replies in a word document and submit in the LMS assessment 3B drop box)
Task 3C:
Your report should be presented in this format: 30% - 20th February 2022 11:55 pm
Contents Page:
A. Executive summary (250 – 500 words) (Note- this should be posted in task 3b discussion forum) B. Body of the Report (total 30 Marks) (body of the report should comprise the following)
1. Cost Analysis & Break even Analysis: (Here you must differentiate cost as fixed cost / variable cost and state the reason why they are fixed / variable related to their cost behaviours and recommendations to transform from variable to fixed costs or would that be better to stay as variable costs according to the cost behaviour and driver calculate your BEP using the BEP formula so you need your Fixed cost and variable cost per unit calculated for each room and find out what the Breakeven rooms per day and propose the committee what would be the BEP in units and dollars for 100% occupancy.) (750 – 1000 words) (10 Marks)
2. Analyse and Calculate ADR, REVPAR, ADR index and REVPAR index (Here you need to calculate the ADR per day and REVPAR with the data provided and comment on the ADR and RevPAR index the Comp set ADR is $258.99 occupancy is stated at 94% for each offer (10 marks)
C. Decision / Recommendation (Explain the reason which offer should the committee accept or be better not accepting any offer with reasons for your explanation (5 marks) (750 words)
D. References:
Overall Report presentation with no grammar, formatting errors, proper APA style referencing (please check the video on how to properly reference and format in LMS ) (5Marks)
Due dates Again
Task 3A – 20% - Week 10 6th February Sunday 11:55 pm
Individual Video Presentation
Task 3B – 10% - 13th February Sunday 11:55 pm
Forum Discussion of the individual presentation
Task 3C – 30% - 20th February 2022 11:55 pm
Report on the analysis
Length: 1250 -1500 words
Weight: 30% - Individual Report