Best Night Co

Sir, I need your guidance on how to answer the non-financial information of the question Best Night co (asked in march 2019)

Could you please help me what I have written are correct and it will help me gain most of the marks?

Note 1 – Capital employed:
39.5m – 39.1 / 39.1m = 1%

We can comment that ROCE ratio should be calculated after deducting the depreciation costs of non-current assets because if the hotel has older machines which will increase the depreciation costs and therefore reduce the book values of those fixed assets.

Note 2 – Occurpany rates:
74 – 72 / 72 = 2.8%

We have performed well here because more and more customers are coming and occupying rooms which will increase the revenue of the hotels. The occupancy rate is 74% which is greater than the 72% that was budgeted for the year ended 30 June 2017. It can be seen from the increase in standard price per night of $140 in 2017 as compared to $135 in 2016. The customer receives a generous discount from the business because managers have authority to offer discounts to regular customers which can be seen by the percent increase in discounts of 45.4% (16783 – 11540) / 11540. It is most probably paid because the economic conditions were not good in recent times in Essland.

Note 3 – Average customer satisfaction score:
4.2 – 4.5 / 4.5 = -6.7%

The business needs to be concerned about customer satisfaction score which has declined in the recent year and the customer feedback about the service not as good as they were before should be mend. The manager should be put accountable regarding room services and room redecoration and old fixtures and fittings which need to be replaced. These factors bring a bad name to the business because we were in the top 10% of hotels in the last year but in the current year, we have dropped to the top 25% hotel which indicates a massive drop.

The current manager should be removed and a new manager should be given authority because with slight hard work we can achieve a place in the top 10 hotels again.