Skyview Manor

This case study is set in 1962 in rural Vermont. The Skyview Manor is an old, but well-maintained
property that has changed ownership several times over the years. It has no restaurant or bar. It
is positioned as a mid-price, good quality destination resort hotel.

The Skyview Manor is open only during the skiing season. It opens on December 2 and
closes the last day of March. The ski mountain that it serves operates on a permit from the state
which allows only 120 days of operation per year. Each of the 50 rooms in the east wing rents
for $15 for single occupancy or $20 for double occupancy. The west wing of the hotel has 30
rooms, all of which have spectacular views of the skiing slopes, the mountains, and the village.
Rooms in this wing rent for $20 and $25 for single or double occupancy, respectively. The
average occupancy rate during the season is about 80% (typically, the Hotel is full on weekends
and averages 50 to 60 rooms occupied on week nights). The ratio of single versus double
occupancy is 2:8; on average.
Operating results for the last fiscal year are shown in Exhibit 1. Mr. Kachack, the
manager of the hotel, is concerned about the off-season months, which show losses each month
and reduce the high profits reported during the season. He has suggested to the owners, who
acquired this hotel only at the end of the 1961 season that to reduce the off-season losses, they
should agree to keep the west wing of the hotel operating year-round. He estimates the average
occupancy rate for the off-season to be between 20% and 40% for the next few years. Kacheck
estimates that with careful attention to the off-season clientele a 40% occupancy rate for the 30
rooms during the off-season would be much more likely if the owners would commit $4,000 for
advertising each year ($500 for each of eight months). There is no evidence to indicate that the
2:8 ratio of singles versus doubles would be different during the remainder of the year or in the
future. Rates, however, would have to be drastically reduced. Present plans are to reduce them
to $10 and $15 for singles and doubles.
The managers salary is paid over 12 months. He acts as a caretaker of the facilities
during the off-season and also contracts most of the repair and maintenance work during that
time. Using the west wing would not interfere with this work, but would cause an estimated
additional $2,000 per year for repair and maintenance.
Mrs. Kacheck is paid $20 a day for supervising the maids and helping with check-in.
During the season, she works seven days a week. The regular desk clerk and each maid are paid
on a daily basis at the rate of $24 and $15 respectively. The payroll taxes and other fringe
benefits are about 20% of the payroll. Although depreciation and property taxes would not be
affected by the decision to keep the west wing open, insurance would increase by $500 for the
year. During the off-season, it is estimated that Mr. and Mrs. Kacheck could handle the front
desk without an additional person. Mrs. Kacheck would, however, be paid for five days a week.

The cleaning supplies and half of the

miscellaneous expenses (room supplies) are
considered a direct function of the number
of rooms occupied. The other half of the
miscellaneous expenses are fixed and would
not change with 12-month operation. Linen
is rented from a supply house and the cost
also depends on the number or rooms
occupied, but is twice as much, on average,
for double occupancy as for single
occupancy. The utilities include two items:
telephone and electricity. There is no
electricity expense with the motel closed.
With the motel operating, electricity expense
is a function of the number of rooms
available to the public. Rooms must either
be heated or air-conditioned. The telephone
bills for each of the four seasonal months
were as follows:
80 Telephones @ $3.00/month
Basic Service Charge

$240
50
$290

During the off-season, only the basic

service charge is paid. The monthly charge
of $3 is applicable only to active telephones.
An additional aspect of Mr.
Kachecks proposal is that a covered and
heated swimming pool be added to the hotel.
Mr. Kacheck believes that this would
increase the probability that the off-season
occupancy rate would be above 30%.
Precise estimates are impossible. It is felt
that although the winter occupancy rate will
not be greatly affected by adding an indoor
pool, eventually such a pool will have to be
built to stay even with the competition.
The cost of such a pool is estimated to be
$40,000. This amount could be depreciated
over five years with no salvage value
($15,000 of the $40,000 is for a plastic
bubble and the heating units, which would
be used nine months of the year). The only

other costs associated with the swimming

pool are $400 per month for a lifeguard,
required by law during the busy hours;
additional insurance and taxes, estimated to
be $1,200; heating cost of $1,000; and a
yearly maintenance cost of $1,800. If the
pool is covered, a guard is needed for 12
months. If it is not covered, a guard is
needed only for three summer months (from
June 15 to September 15, the warmest
period of the year), and there would be no
heating expense.
EXHIBIT 1
Skyview Manor
Operating Statement, For the Fiscal Year ended
3/31/62
Revenues
Expenses
Salaries
Manager
Managers Wife
Desk Clerk
Maids (four)

$160,800
$15,000
2,400
2,880
7,200
$27,480

Payroll Taxes and Fringe

Benefits
5,496
Depreciation (15 year life)
30,000
Property Taxes
4,000
Insurance
3,000
Repairs and Maintenance
17,204
Cleaning Supplies
1,920
Utilities
6,360
Linen Service
13,920
Interest on Mortgage
(5% interest rate)
21,716
Miscellaneous Expenses
7,314
Total Expenses
Profit before Federal Income Taxes
Federal Income Taxes (48%)
Net Profit

138,410
$22,390
10,747
$11,643

ASSIGNMENT QUESTIONS
1. On average, how many rooms must be
rented each night in season for the hotel
to breakeven?
2. The hotel is full on weekends in the ski
season. If all room rates were raised $5

3.
4.

5.

6.
7.

on weekend nights, but occupancy fell to

72 rooms instead of 80, what is the
revised profit before taxes for the year,
per Exhibit 1?
What is the proposed incremental
contribution margin per occupied
room/day during the off-season?
For each alternative in the case, list the
annual expenses that are incremental to
that decision alternative but are not
related to the room/days occupied.
For each decision alternative calculate
the occupancy rate necessary to break
even on the incremental annual
expenses?
What alternative do you recommend?
Why?
Evaluate the profitability of the Hotel as
an investment for its owners. Does this
affect your answer to question 6?

Skyview Manor
Studi kasus ini terjadi pada Tahun
1962 di daerah pedesaan Vermont.
Skyview Manor termasuk sudah
berusia, namun tetap terpelihara
dengan baik dan telah berpindah
kepemilikan beberapa kali selama
beberapa tahun. SM tidak
memiliki restauran dan bar.
Dengan tarif menengah, SM
dikenal sebagai hotel tujuan yang
memberikan layanan berkualitas.

SM dibuka hanya pada musim salju,

yaitu sejak tgl 2 des sd akhir maret.
Kawasan pegunungan ski yang disediakan
oleh SM menjadapt ijin opersi dari
pemerintah selama 120 hari setiap tahun.
SM memiliki 50 kamar di sisi timur yang
disewakan dengan tarif $15 untuk single bed
dan $20 untuk double bed. Sisi barat terdiri
dari 30 kamar, semuanya memiliki

pemandangan salju yang spektakuler, yaitu

pemandangan pegunungan dan pedesaan.
Tarif sewa kamar di sisi barat adalah $20
untuk single bed dan $25 untuk double bed.
Rata2 tingkat hunian kamar adalah 80%,
biasanya kamar full booked pada akhir
pekan dan 50 60% pada hari biasa. Rasio
kamar dengan single bed dan double bed
rata-rata adalah 2:8.
Hasil operasi pada satu tahun terakhir
terlihat pada table 1. Mr. Kachack, manajer
hotel, fokus pada 6 bulan di mana hotel
tidak dibuka, yang merugi setiap bulannya
sehingga mengurangi keuntungan yang
diperoleh selama musim beroperasi. Dia
menyarankan
kepada
pemilik
agar
mengakuisisi hotel pada akhir tahun 1961
untuk mengurangi kerugian pada saat offseason (musim sepi), pemilik sepakat untuk
mengoperasikan kamar di sisi barat selama
satu
tahun
penuh.
Mr
Kachack
memperkirakan tingkat hunian pada musim
sepi antara 20% - 40%. Kachack
memperkirakan bahwa dengan penanganan
serius terhadap pelanggan di musim sepi,
kemungkinan besar tingkat hunian akan
mencapai 40% yaitu dengan mengeluarkan
tambahan biaya iklan senilai $4,000 per
tahun atau $500 setiap bulan selama 8 bulan.
Tidak
ada
bukti
empiris
yang
mengindikasikan rasio single dan double
bed berbanding 2:8 akan berbeda di musim
sepi. Tentu saja tarif kamar harus diturunkan
menjadi $10 untuk single bed dan $15 untuk
double bed.
Gaji manajer akan dibayar selama 12
bulan. Dia bertanggung jawab menjaga
fasilitas selama musim sepi dan bertanggung
jawab membuat kontrak untuk reparasi dan
pemeliharaan alat. Penggunaan diperkirakan
akan meningkatkan biaya tambahan untuk
reparasi dan pemeliharan senilai $2,000.
Mrs. Kachack dibayar $20 per hari
untuk mensupervisi pelayan dan membantu
menerima tamu. Mrs Kachack bekerja 7 hari

seminggu. Petugas front office dan pelayan

dibayar per hari dengan tarif masing-masing
$24 and $15 respectively. Pajak gaji 20%.
Meskipun penyusutan dan pajak atas
property tidak dipengaruhi keputusan untuk
mengoperasikan sisi barat sepanjang tahun,
biaya asuransi meningkat senilai $500 per
tahun. Selama musim sepi, Mr dan Mrs
Kachack dapat menangani front office tanpa
tambahan pegawai. Namun, Mrs Kachack
dibayar tiap 5 hari dalam seminggu.
Biaya pembersihan peralatan dan
biaya perlengkapan ruangan dianggap
sebagai biaya yang berkaitan langsung
dengan penggunaan kamar. Sedangkan
biaya perlengkapan ruangan sisanya
merupakan biaya lain-lain yang tetap (tidak
berubah) selama 12 bulan. Penggunaan
selimut dianggap sebagai biaya yang
berkaitan langsung dengan penggunaan
kamar yang nilainya 2 x lipat untuk double
bed. Biaya lain-lain termasuk di dalamnya
telpon dan listrik. Selama kamar ditutup,
tidak ada biaya listrik. Biaya listrik
merupakan biaya yang berkaitan langsung
dengan penggunaan kamar, biasanya kamar
dipanaskan atau didinginkan suhunya
dengan ac listrik. Tagihan telpon selama 4
bulan adalah sebagai berikut:
80 panggilan @ $3.00/bulan
Service charge

$240
$ 50
$290

Selama tutup yang dibayarkan hanya service

charge senilai $3 per bulan.
Mr K mengusulkan pembangunan
kolam renang yang diyakini akan
meningkatkan keuntungan pada musim sepi
dengan meningkatnya tingkat hunian di atas
30%. Jumlah yang pasti sulit diperkirakan.
Meskipun tingkat hunian pada musim dingin
tidak dipengaruhi oleh keberadaan kolam
renang, namun kolam renang tersebut akan
menjadi daya tarik persaingan.

Pembangunan kolam renang diperkirakan

akan menelan biaya senilai $40,000. Biaya
ini akan disusutkan selama 5 tahun tanpa
nilai residu. ($15,000 dari $40,000 adalah
biaya plastic dan pemanas yang digunakan
selama 9 bulan per tahun). Biaya tambahan
berkaitan dengan kolam renang adalah biaya
pengamanan senilai $400 per bulan,
sebagaimana dipersyaratkan oleh peraturan
selama jam sibuk. Biaya asuransi dan pajak
senilai $1,200, Biaya pemanas $1,000 dan
biaya pemeliharaan $1,800 per tahun. Jika
kolam renang diberi penutup, petugas
pengamanan diperlukan selama 12 bulan.
Jika kolam renang tidak ditutup, petugas
pengamanan diperlukan hanya selama
3 bulan musim panas (15 Juni sd 15
September, hawa terpanas selama setahun)
dan tidak diperlukan biaya untuk
memanaskan air kolam renang.
PERTANYAAN
1. Berapa rata-rata jumlah kamar yang
harus dijual per malam agar BEP?
2. Selama musim ski, hotel selalu penuh.
Jika tariff hotel dinaikkan $5 pada
weekend, namun hunian turun menjadi
72 kamar, bukan 80 kamar, berapa
keuntungannya?
3. Berapakah incremental Margin
Kontribusi untuk usulan pembangunan
kolam renang selama musim sepi?
4. Buatlah alternative dan biaya tahunan
tambahan dari tiap alternative yang
dibuat yang tidak berhubungan dengan
kamar?.
5. Untuk masing-masing alternative
tersebut, berapa tingkat hunian kamar
sehingga mencapai BEP dengan
tambahan biaya tersebut?
6. Alternatif mana yang Anda
rekomendasikan? Mengapa?