Using the attached data from Atlantic City Casinos prepare a spread sheet as I did in the Revenue Management II Power Point where I used Caesars as an example. You will need to calculate the ADR, Occupancy Rate, and RevPar for the Competitive Set of Tropicana. Assume that Ballys, Borgata and Resorts are in Tropicana’s Competitive Set. You will need to use just the data for Bally’s, Borgata, and Resorts so you should delete the other casinos data or create a new worksheet with Bally’s Borgata and Resorts data only.
You will first calculate the Total Hotel Revenue, Total Available Room Nights, and Total Rooms Sold for the three casinos by summing the columns. You will then use the TOTALS to calculate ADR, RevPar and Occupancy Ratefor the competitive set. You will then compare the ADR, RevPar, and Occupancy Rate of the Tropicana to the Average ADR, RevPar and Occupancy Rate of the Competitive set.
Then make a recommendation on what Tropicana should do with their Hotel Rates. Raise them, discount them (lower rates), or keep them the same. Support your recommendation with comments explaining why.
