Voyager Inn International

11 Pages Posted: 23 Jun 2009

See all articles by Sherwood C. Frey

Sherwood C. Frey

University of Virginia - Darden School of Business

Dana Clyman

University of Virginia (UVA), Darden School of Business (deceased)

Abstract

Voyager Inn International (Bethesda) is negotiating a master contract with TourAmerica, an international tour operator, for hotel rooms during the 1995 tourist season. Issues under consideration include number of rooms during peak, mid-, and off-periods; room rates; breakfast prices; and the cost of ancillary services. The hotel manager is evaluated on the basis of several criteria, including adjusted daily rates, occupancy rates, and food and beverage profitability. To facilitate trade-offs among the various criteria, the manager articulates a utility scheme. This case is a role-play exercise, and must be used in conjunction with "TourAmerica" (UVA-QA-0464). Reporting forms for the evaluation of alternative contracts are provided with each case.

Excerpt

UVA-QA-0463

VOYAGER INN INTERNATIONAL

Lionel Jackson, general manager of the Voyager Inn (Bethesda) hotel, was preparing for an upcoming negotiation with Karen Shepard, his contact at TourAmerica. Jackson was looking forward to these negotiations, as he expected to raise prices and thereby increase the profitability of the TourAmerica account. Last year, he had agreed to hold prices at the previous year's levels, but only because he anticipated that extensive renovations and improved service levels would soon justify a significant increase in prices. At this point, not only were renovations complete, but TourAmerica's own surveys indicated that Voyager Inn's service levels had improved substantially.

The pending negotiations were particularly important to Jackson. TourAmerica was a prominent customer whose overly favorable contract not only reduced Voyager Inn's average daily room rate, but also adversely affected food and beverage profitability. While Jackson anticipated that Shepard would agree to some improvement in contract terms, he was also aware that she was a tough negotiator. In order to reach the overall profitability targets set for him by corporate, Jackson knew that he would have to achieve a significant improvement over last year's TourAmerica contract.

Voyager Inn International

Voyager Inn International was a hotel chain with 328 properties in 15 countries. Domestically, it had 288 properties in 46 states. The Voyager Inn (Bethesda) property was located in Bethesda, Maryland, a safe upscale suburb just outside Interstate 495, the beltway circling Washington, D.C. The hotel was conveniently located near the growing number of businesses concentrated in the northern Washington area, the National Institutes of Health (NIH), and other government agencies, as well as the nation's capital.

. . .

Keywords: bargaining/bidding, negotiation, diverse protagonist, gender (female protagonist)

Suggested Citation

Frey, Sherwood C. and Clyman, Dana, Voyager Inn International. Darden Case No. UVA-QA-0463. Available at SSRN: https://ssrn.com/abstract=1422936

Sherwood C. Frey (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

HOME PAGE: http://www.darden.virginia.edu/faculty/frey.htm

Dana Clyman

University of Virginia (UVA), Darden School of Business (deceased)

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

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