Tour Sales



The Dufney Classic Hotels was a group of 23 privately ownedguesthouses that included the Parker House, Berkshire place, andAmbassador East boarding houses. The Parker house was the mostprofitable, and it was situated in Boston. It served as the flagshipof the corporation.

The critical business decision was how to accommodate a deal of40,000-bus tour booking request made with Trans Am. The request wasassociated with lower profitability since the expedition spent littlemoney at the hotel. Consequently, it conflicted with the lodge`stradition of appealing to luxury clients such as business andprofessional travelers. The restaurant`s practice limited the busvisits to the weekends and the slower months of July to August.

The director for tour sales, Harvey Kimball, was concerned about thenumber of clients since they determined his end of year bonus. Headvised that the deal should be spread among the corporation`sguesthouses in a manner that maximized the revenues. Janet Morin wasagainst Kimball’s idea. She argued that the business would resultin confusion once allocated among the hotels. Robert McIntosh andBill Murphy saw the need to support the Dufney corporate image byeliminating tour groups from the Parker house and transferring themto other properties such as Berkshire in Manhattan. However, thedecision could block 2,000 guest nights at the Berkshire during boththe weekends and weekdays.

Both McIntosh and Murphy realized the need to reduce the number oftour groups from the Parker house due to its 85% occupancy rate inthe weekdays. However, they foresaw the expeditions’ ability toraise the weekend occupancy rate than any other clients. Given theuncertainties of all the executives, it was essential to calculatethe most appropriate number of bus tours to assign in the guesthousesand, especially, the Parker house without altering its profitabilityand positioning.