Question 10.RQ.4: The Ludford Hotel and Conference Centre is used for conferen...
The Ludford Hotel and Conference Centre is used for conference bookings and private guest bookings. Conference bookings use some bedrooms each week, the balance being available for private guests.
Data has been collected relating to private guest bookings (i.e., non-conference bookings) which are summarised below for a 10-week period.
| Week | Double rooms available for private guest bookings | Number of guests | Average stay (nights) |
| 1 | 55 | 198 | 2.1 |
| 2 | 60 | 170 | 2.6 |
| 3 | 72 | 462 | 1.4 |
| 4 | 80 | 381 | 3.2 |
| 5 | 44 | 83 | 5.6 |
| 6 | 62 | 164 | 3.4 |
| 7 | 80 | 348 | 2.6 |
| 8 | 54 | 205 | 1.7 |
| 9 | 80 | 442 | 1.8 |
| 10 | 24 | 84 | 3.2 |
Some of the costs for private guest bookings vary with the number of guests, regardless of the length of their stay, while others vary with the number of rooms available in any week.
Variable cost per guest £17.50
Variable cost per week per room available £56.00
The general fixed cost for private guest bookings per week is £8,100
Requirements
(a) To the nearest penny, the total costs for private guests ’bookings for the 10-week period is £ \boxed{ \ \ \ \ \ \ \ \ \ \ \ \ } .
(b) To the nearest whole number, the number of private guest-nights achieved in the 10-week period is \boxed{ \ \ \ \ \ \ \ \ \ \ \ \ } .
(c) The number of private guest-nights available for the 10-week period is \boxed{ \ \ \ \ \ \ \ \ \ \ \ \ }
● You will be using a composite cost unit in this question as well: a guest night. The cost per guest night is the cost incurred by the hotel for one guest to stay for one night. In this example, the number of guest nights is calculated as:
No. of guest nights = no. of guests × average no. of nights stayed
● You will need to prepare some preliminary workings in part (a). The totals to be calculated for the 10-week period are:
(i) the number of rooms available (you need this in order to calculate the costs incurred);
(ii) the number of guests (this is also needed for the cost calculation);
(a) £159,613.50
(b) 6,064
(c) 8,554
Workings:
| Week | Rooms | Guests | Average stay | Guest nights |
| 1 | 55 | 198 | 2.1 | 415.8 |
| 2 | 60 | 170 | 2.6 | 442 |
| 3 | 72 | 462 | 1.4 | 646.8 |
| 4 | 80 | 381 | 3.2 | 1,219.20 |
| 5 | 44 | 83 | 5.6 | 464.8 |
| 6 | 62 | 164 | 3.4 | 557.6 |
| 7 | 80 | 348 | 2.6 | 904.8 |
| 8 | 54 | 205 | 1.7 | 348.5 |
| 9 | 80 | 442 | 1.8 | 795.6 |
| 10 | 24 | 84 | 3.2 | 268.8 |
| 611 | 2,537 | 6,063.90 |
Total costs for private guests ’ bookings = (611 × £56) + (2,537 × £17.50) + (10 × £8,100) = £159,613.50
Guest nights available = 611 rooms × 7 night × 2 guests = 8,554