What are some possible reasons for the decline revealed by the Pace Report
This was not good news, as J.D. well knew. The drop-off in sales was now in its third
consecutive month. The same was true, to a smaller degree, in the food and beverage
department's catering bookings; although the hotel was not experiencing an occupancy
decline or occupancy index decline evident in the monthly STAR Report, it was clear that
future business bookings, which would be measured by future STAR Reports, were
declining.
"Well," replied J.D. "What do you think is causing the drop-off?"
"I'm not positive," stated Michele, "but it could be several things. Citywide bookings may be
down, the new sales manager we hired for corporate groups may not be up-to-speed yet, or
perhaps we are being too aggressive in our bidding. I know that unless things turn around
quickly, we will have real difficulty meeting our revenue goals next quarter. What would you
like me to do?"
What are some additional possible reasons for the decline revealed by the Pace Report? If
you were J.D., how would you go about assessing the sales difficulties experienced by the
hotel and the DOSM? What tools would you use to help understand and solve the revenue
problem? How responsible should the GM be held for the sales level of a hotel?
