Slide 1Why are we here?AssumptionsCurrent Financial Layout based on 200 reservationsSlide 5Slide 6ProposalsOverbooked PassengersRecommendationMimi’s Orlando ShuttleGroup #73Mike HadleyMelissa BuchholzMorgan ZimmerWhy are we here?•Mimi is losing money because of the way she handles her overbooked clients•We need to persuade Mimi to take a bold new strategy for overbooking flights and maximizing her profitsAssumptions•Mimi’s Orlando Shuttle operates 365 days a year•“No shows” occur independently•Plane crews fly both legs of a round trip• In flight snacks are not perishableCurrent Financial Layoutbased on 200 reservationsRevenue Yearly WeeklyTicket Revenue $52,560,000 $1,010,770Expenses Yearly Weekly Lease/Maintenance$3,650,000 $70,192 Insurance$1,200,000 $23,077 Fuel$28,606,875 $550,132 Wages Airport Staf$1,576,800 $30,233 Wages Pilots$1,565,286 $30,082 Wages Attendants$938,571 $18,050 Airport Fees$8,395,000 $161,442 Credit Card Fee$2,6028,000 $50,538,000 Taxes & Fees$5,256,000 $101,077 Snacks$394,200 $7581Total Expenses$54,209,732 $1,042,495Profit/Loss(1,649,732)(31,726)-$2,000,000.00-$1,500,000.00-$1,000,000.00-$500,000.00$0.00$500,000.00$1,000,000.00$1,500,000.00$2,000,000.00$2,500,000.00Increasing Reservations Affects Profits# of ReservationsProfits ($ Millions)210 211 212 213 214 215 216050100150200250300267119573017106Expected Number of Days Between OverbookingsReservationsProposalsReservations Profit/LossExpected Overbooked Flights per Year214+$1,555,7710.046099555215+$1,784,7350.027594667Overbooked PassengersTo maintain customer satisfaction offer overbooked passengers:•A guaranteed reservation on the next flight, or flight of the customer’s choice, which will be discounted by 25%.•A complimentary hotel room stay for one night at a nearby, affordable hotel. - This will please those customers who are stuck for the night if they could not leave on their flightApproximate $160 package valueRecommendationWe recommend that Mimi’s Orlando Shuttle adjust the reservation strategy to allow a maximum of 215 reservations per flight.•0.027594667 flights per year are expected to overbook•Even with the compensation package, Mimi’s yearly profit will increase by at least