LUX* Resorts & Hotels: Optimal Room Mix Marketing Decisions
(3 pages of text)
In early 2016, LUX* Resorts & Hotels, a hotel group headquartered in Mauritius, needed to determine the room mix to sell to foreign guests to achieve a specific earnings target. The hotel group also intended to sell some of the remaining rooms to local residents at affordable (discounted) prices. The objective was to maximize the revenue stream to finance local corporate social responsibility projects. The case highlights the practical use of Microsoft Excel Solver, an optimization tool, to resolve routine planning challenges faced by a hotel group.
This case is suitable for undergraduate, graduate, and specialized courses in analytics, finance, and hospitality management. It demonstrates how an optimization tool, Microsoft Excel Solver, can be effectively applied to routine hospitality management problems, which are often tackled through time-consuming, trial-and-error attempts. After completing the case, students should be able to
- use Microsoft Excel to determine the correct room mix to achieve a hotel’s earnings target;
- understand why and how to use an optimization template to resolve hospitality management issues;
- consider how to make an earnings target easier to achieve; and
- discuss alternative ways a hotel can increase its corporate social responsibility project financing.
Accommodation & Food Services
Mauritius, Large, 2016
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