Answer ALL questions.
Please make clear the number of the question you are answering and make sure your answer can be easily read to avoid losing unnecessary marks. Please note and adhere to the word count indicated for each question. Please indicate all supporting citation and a reference list for each question where
appropriate.
1. The 200-room Hotel PoshPlace is soon to open in Perth, Australia. It is
projected that the hotel will be financed with a loan of $6,000,000 at 12 per cent annual interest, and the owners will invest $2,000,000. The owners will be seeking a 15 per cent annual return on their investment. The hotel will be open 365 days per year, and it is expected that it will achieve a 70 per cent average occupancy. Hotel profits will be taxed at the rate of 40 per cent.
Hotel fixed costs are expected to be:
Insurance $180,000
Depreciation $200,000
Administration $150,000
Information Systems $100,000
Human Resources $ 50,000
Marketing Expenses $140,000
Property Maintenance $200,000
It is estimated that the hotel’s food and beverage department will generate an annual profit of $150,000 and that variable room cleaning costs will be $12 per room night sold.
Required:
Calculate the minimum average room rate that PoshPlace will need to charge in order to provide the hotel’s owners with the 15 per cent return on their investments that they are seeking. For full marks, you must show your workings out, not just the end answer. Mark: /8
2. The Intercontinental London has a total of 250 rooms. The budgeted occupancy for the month of March 2022 was 80% and the actual occupancy was 92%. The actual labour expense of £49 569 exceeded the budget by £10509, and the budgeted room attendant hours of 3100 increased to 3813. Simone Smith, the
executive housekeeper, has difficulty in reporting on the total labour variance
of £10509 for the month of March 2022.
a) Can you assist Simone in calculating the labour volume, efficiency and
compound variances that resulted in the total labour variance of £10509?
For full marks, you must show your workings out, not just the end answer.
Mark: /8
b) Given your calculations, can you interpret and explain the likely
circumstances that led to the total labour variance experienced by Simone?
Word Count: 150 Mark: /4
Approved
May 2022
Event Venue Management
CATE 1171
Page 3 of 3
3. Many event venues primarily serve B2B market segments, rather than B2C
market segments. Detail and describe the three key B2B market segments for
event venues and then explain both the online and offline sales and marketing
strategies that venues can adopt to reach these audiences. Channel choice and
information content should be included in your response, linked to the academic
and industry literature. Distinguish between proactive and reactive sales and
marketing activities as part of your answer.
Please indicate citations used to support your answer.
Word Count: 500 Mark: /25
4. How does the consideration of core and non-core activities matter in decision-
making in companies about outsourcing? Consider the possible implications
for venues where commercial events teams generate secondary revenues
streams (are part of non-core activities), e.g., Academic Venues, Unusual
Venues.
Please indicate citations used to support your answer.
Word Count: 350 Mark: /15
5. While one of the true benefits of outsourcing is the transfer of responsibility to an outside expert who is well equipped to handle the task, clients must put systems in place to ensure their own satisfaction with the service (contract management). What are some of the guidelines we can follow for measurement and evaluation? Provide illustrative examples from venue-related management contracts, e.g. contract
catering, to underpin your answer. Please indicate citations used to support your answer.
Word Count: 400 Mark: /20
6. Characterise and explain the difference between cost orientation and market orientation in food and beverage operations. Use illustrative examples of each type of food and beverage operation.
Please indicate citations used to support your answer.
Word Count: 400 Mark: /20
