Description

Background:

You are the General Manager of a popular, private golf course in the Southwestern United States. You have been directed by your board to drive revenue by accepting golf tournaments from the local market when practical – even if it displaces member or non-member leisure golf.

As a part of this effort, you have contacted each of the full-service hotels in your market and presented them with information about your course and the services you offer – and your desire to host tournaments for their meetings and events.

You have received two RFPs for tournaments from meeting planners that have selected one of the local hotels in your market. Each RFP is from a different group, however both tournaments would be on the same day. You can only accommodate one of the two tournaments and must decide which to select.

The meeting planners have both included this tournament in an “all inclusive bid” already accepted by their meeting organizers, and so the revenue/pricing component is fixed in the RFP. Your decision is simply to determine which to accept – if either.

If you accept one of the RFP’s, you would displace your typical leisure golf play as follows:

85 Rounds

$65 per round

$15 in F&B Revenue

Details of the RFP’s

Group 1:

100 Golfers

$45.00 per round.

$25 in F&B

Group 2

120 Golfers

$45.00 per round.

$10 in F&B