Special Order Request

Special Order Request

1. should CP sell holiday breaks at a price lower than brochure price?

2. Break even

   • = fixed costs / contribution
     • Contribution = selling price - variable costs
   • point of no profit and no loss/point where cost covered

3. Financial benefits

   • profitable in short & long run

4. Non Financial benefits

   • will it affect image reputation and/or relationships with customers

5. L3 Yes

   • occupancy 97.2 in 1012/13
   • extra revenue gained by from restaurants/activities on sight
   • need to recover investment for Woburn, 61 million as soon as possible due to bank loans (high gearing)
   • extra revenue towards fixed costs
   • opportunity to delight customers = better customer service = they should return within targeted 3 years

6. L4 No

   • may affect/upset customer satisfaction of others paying in full less than £148 per night may reduce guest satisfaction of 96%
   • already 97.2 occupancy which is very high so little time for staff training, updating, could damage reputation due to perceived lower quality
   • Martin Dalby 'not just about profit'
   • 100% capacity utilisation makes staff busy and over worked
   • lose exclusivity and seen as cheap