Joseph Andress

11/29/13

Table of Contents
Table of Contents ........................................................................................................................................................................................ 0
Executive Summary ................................................................................................................................................................................... 1
Descriptive Statistics: Occupancy Rates 2000-2007(minitab) ................................................................................................ 2
Frequency Table of Occupancy Rates 2000-2007: (minitab)................................................................................................... 2
Occcupany Rate Histogram (minitab) ................................................................................................................................................ 3
Distribution by Year .................................................................................................................................................................................. 4
Distribution by Quarter(Excel) ............................................................................................................................................................. 5
Time Series (Excel) .................................................................................................................................................................................... 6

Joseph Andress

MNGT 2600-004

903317825

Executive Summary
The following quantitative data has been collected and analyzed in order to make provisions for the
upcoming year to plan the most effective and efficient ways to manage the resources of the Hotel. The data was
collected every quarter beginning in January of 2000 to December of 2007. Each variable is an average of the
occupancy rate in percent of capacity for the hotel in Honolulu, Hawaii. Analytics of occupancy rates are crucial to
the hotel for understanding the seasonal patterns of consumers. Information on the distribution of rates for
quarters and years can help management to predict and prepare for the fluctuation of the occupancy rates.
At first glance, the histogram may seem to be slightly bimodal, but this is not so after further examination.
One suggest that the histogram is bimodal because the first and third quarters had more occupancy than the
fourth and second, but they are also distributed over the mean. The occupancy rates are between a 57.2 and
84.77, with 50% of the data falling between 71.73 and 75.44. Without substantial reason to assume there is a
lurking variable causing two peaks, it is safe to conclude that distribution is normal. With a larger sample the
histogram would appear more symmetric and unimodal. With the exception of the fourth quarter of 2001,
occupancy rates usually fall between 66-86 for a given quarter. More information is needed to establish what
caused the rates to be dramatically low in the fourth quarter of 2001.
The mean of the data is 75.26, but the data does not show that one should expect the rate to remain
steady through the year. The distribution by quarter shows that the first and third quarters preform similarly with
medians that are close to 80. In contrast, the second and third quarters seem to lag. Although this variation is
expected in the hospitality industry, the hotel should make adjustments to suite this fluctuation. During quarters
of less occupancy prices should be adjusted to match the decrease in demand. Promotional events could also be a
way of improving occupancy rates in these months. Also adjustments to staffing and services should be
implemented. The time series plot and the distribution by year tell us that occupancy fell from 2000 to 2001 one
and was unstable during that year. From 2002 to 2005 occupancy steadily increased, and decreased from 2005 to
2007.
1

Joseph Andress

MNGT 2600-004

903317825

Descriptive Statistics: Occupancy Rates 2000-2007(minitab)

Variable
C1

N
32

N*
0

Mean
75.26

SE Mean
1.04

StDev
5.89

Variance
34.73

Variable
C1

Median
75.44

Q3
79.15

Maximum
84.77

Range
27.57

IQR
7.42

Mode
*

CoefVar
7.83

Minimum
57.20

Q1
71.73

N for
Mode
0

Q3 +1.5IQR =86.28
Q1 - 1.5IQR=60.6
OUTLIERS: 57.20 Q4 2001

Frequency Table of Occupancy Rates 2000-2007: (minitab)

Frequency
Interval
54-58
58-62
62-66
66-70
70--74
74-78
78-82
82-86

Count
1
0
0
3
9
7
8
4

Joseph Andress

MNGT 2600-004

903317825

Occcupany Rate Histogram (minitab)

Occupancy Rate 2000-2007

9
8

Frequency

7
6
5
4
3
2
1
0

56

60

64

68
72
Occupany Rate

76

80

84

Histogram

Joseph Andress

MNGT 2600-004

903317825

Distribution by Year

Joseph Andress

MNGT 2600-004

903317825

Distribution by Quarter(Excel)

Joseph Andress

MNGT 2600-004

903317825

Time Series (Excel)