π Branson Man here! You can reach me at bransonman.com for any questions.
π¨ We're discussing revenue management using a fictitious hotel, the Wagon Wheel Inn, which has 100 rooms.
π΅ The basic cost to sell a room is $20, covering electricity, cleaning, and breakfast.
π Analyzing a specific week, we look at Wednesday, Thursday, and Friday:
π Revenue is the total money brought in, but itβs crucial to differentiate it from profit.
π° Revenue calculations:
π§Ύ Costs:
π Profit calculations:
π The clear winner for profit is Friday with $4,500.
π Understanding revenue management is essential; high occupancy doesn't always mean high profit.
π Thank you for listening! Visit me at bransonman.com for more insights.