The position of the business was improved while moving from period 2 to period 3 as costs has been decreased to a reasonable extent which may be a result of serious steps taken by the management to overcome the issues related to operating costs. However, there is still a considerable room for improvement to ensure the long run success of the business. Another major area of concern is that more than 20% of rooms available with the business remain un-accommodated that is an indication of wastage of precious resources of the business. These rooms if remain accommodated will contribute to add to the profitability of the business by increasing the revenues that are earned.
The percentage of accommodation of total number of rooms remained between 75% to 78%, which is not a satisfactory at all. After increasing the charges of rooms the business has experienced a further decline in the accommodation percentage of rooms as it was decreased to a level of 75%. No business can sustain such a considerable waste to resources it has because wastage of resources acts to be a serious threat for the long run success of business as it increases the costs without having any contribution in the revenue of profitability of the business.
In order to improve the current situation of the business the management of the business will have to take serious steps. These steps will have to be aimed at decrease in costs, proper utilization of resources and increase in the revenues of the company.