Business Computing
Michael James Young – s3376831 Contact: 0401 884 698
Business Computing 1 - ISYS2056 Wednesday 8.30am Judy Tolson
Contents
Introduction 3 Apartment Analysis 3 One Bedroom Apartment 3 Two Bedroom Apartment 3 Deluxe Studio Apartment 4 One Bedroom Deluxe 4 Apartment occupant ratio. 5 One Bedroom Apartment 5 Two Bedroom Apartment 5 Deluxe Studio Apartment 5 One Bedroom Deluxe Apartment 5 Conclusions 5 Recommendations 6 Appendix 7
Introduction
Shana, an owner manager of 4 holiday apartments (“Seaview Apartments”) in the Melbourne beachside town of Rye, rents out these 4 apartments to people holidaying/staying in the area. Shana has used a paper based system up until recently when she had a simple spreadsheet model developed for her to use as her main bookings database. The purpose of this report is to analyse profit maximisation and whether the properties being used are utilising their maximum profit potential.
Apartment Analysis
One Bedroom Apartment
Throughout 2011, the one bedroom apartment was rented for a total of 63 nights, the lowest of all the available bedrooms available. After assessing the spreadsheet, the low profitability of this bedroom is due to the low average number of nights per booking. At 4.5, the average stay in this bedroom is very low compared to other rooms. Discounts of 15% are applied if booking is for more than 6 nights which does not affect this room’s profitability a great deal as the average stay is under the 6 night 15% discount offer. Nevertheless, takings on this room are lower than any other room before even considering these discounts as the rooms would be targeted to shorter stay leases which reduces total profit potentials. Also eating into profits are the expenses incurred for cleaning the apartment ($40) after each resident has vacated. The higher turnover of occupants means that cleaning expenses for this room total a higher amount than any other room. The cleaning expenses paid
Business Computing 1 - ISYS2056 Wednesday 8.30am Judy Tolson
Contents
Introduction 3 Apartment Analysis 3 One Bedroom Apartment 3 Two Bedroom Apartment 3 Deluxe Studio Apartment 4 One Bedroom Deluxe 4 Apartment occupant ratio. 5 One Bedroom Apartment 5 Two Bedroom Apartment 5 Deluxe Studio Apartment 5 One Bedroom Deluxe Apartment 5 Conclusions 5 Recommendations 6 Appendix 7
Introduction
Shana, an owner manager of 4 holiday apartments (“Seaview Apartments”) in the Melbourne beachside town of Rye, rents out these 4 apartments to people holidaying/staying in the area. Shana has used a paper based system up until recently when she had a simple spreadsheet model developed for her to use as her main bookings database. The purpose of this report is to analyse profit maximisation and whether the properties being used are utilising their maximum profit potential.
Apartment Analysis
One Bedroom Apartment
Throughout 2011, the one bedroom apartment was rented for a total of 63 nights, the lowest of all the available bedrooms available. After assessing the spreadsheet, the low profitability of this bedroom is due to the low average number of nights per booking. At 4.5, the average stay in this bedroom is very low compared to other rooms. Discounts of 15% are applied if booking is for more than 6 nights which does not affect this room’s profitability a great deal as the average stay is under the 6 night 15% discount offer. Nevertheless, takings on this room are lower than any other room before even considering these discounts as the rooms would be targeted to shorter stay leases which reduces total profit potentials. Also eating into profits are the expenses incurred for cleaning the apartment ($40) after each resident has vacated. The higher turnover of occupants means that cleaning expenses for this room total a higher amount than any other room. The cleaning expenses paid