Optimizing Profitability Across the Rooms Segments in Whistler,BC: A Multifaceted Approach

Abstract

In the beginning of 2025, Amy Wong, the Director of Rooms at the Whistler Blackcomb Hotel (WBH), is facing a crossroads in the operation of the business. WBH, despite being in the prime location in the heart of Whistler Village, has seen continuous decline in room revenue and share from 2022 to 2024. The main problem is the decrease in occupancy and revenue per available room, leading to decreased revenue in the Rooms division. The other issues facing the business are increased costs, underperforming contracts, and weakening brand loyalty. Amy is asked to address the dilemma of choosing between maintaining high-quality, sustainable business practices and premium eco-friendly suppliers, or adopting cost-containment strategies to ensure the profitability of the business. The case presents an opportunity for students to examine the data from the past 36 months, including ARI, MPI, and RGI, to determine if the decline in the business is due to pricing, age of the product, cost, or inefficiency. Ultimately, students must assume Amy’s role to present a data-driven action plan for revenue optimization and market differentiation to strengthen WBH’s position against its competitive set.