Problem StatementTo provide exceptional customer satisfaction, InterStarneeds to have more effective communication. Their lack ofvisibility and consistency is currently hindering their abilityto optimize profits.
Appendix∗ Expedia, Inc. Reports First Quarter 2012 Results:∗ Tech Cost +Expenses ∗ 2011 = $82.9 ∗ 2012 = $104.6 ∗ Results indicate a 26% growth in cost between 2011 and 2012 which is explained by an increase in personnel cost and depreciation expense.∗ Reports showed advertising and media produced a 14% increase in revenue in the first quarter of 2012∗ Hotels.com’s booking app resulted in over 5 million downloads in a year and the Expedia Hotels app resulted in over 2 million downloads in 13 months∗ A refreshed webpage for deals led to an increase in gross bookings∗ Hotels.com’s Facebook fan page doubled it’s fan base in the first quarter 2012∗ Expedia.com’s website launched a sales promotion that led to a three digit room night growth.∗ http://files.shareholder.com/downloads/EXPE/1827268210x0x563523/5e3f52cf-b7
Appendix∗ Huddle Cost ∗ The implementation and cost of Huddle would be minimal to InterStar. It would maybe take a couple days for the user to become familiar with the program and only cost InterStar at most $40 a month per user. Given that InterStar has 2,500 hotels, and let’s suppose that you only need one person to have access to the cloud at each hotel. This equal $100,000 in total cost and the individual costs could easily be covered by each hotel. ∗ http://cloudcomputing.sys-con.com/node/2172661
Appendix∗ Application Cost ∗ The development of the application would cost somewhere in the area of $150,000 to $200,000. This would include the code as well as the back end server and infrastructure as well as any testing that would have to be done. The average going rate for a coder is $100 per hour. The price is driven up because this application would be rather complex and take time. This application would tap into the growing sector of instant information and access. It would allow customers to easily book rooms and be updated on deals. Though it may be a high upfront cost, it will generate revenue through a whole new target market; feeding into the fast paced lives of the busy American. ∗ http://www.padgadget.com/2010/10/17/the-cost-of-building-an-ipad-app/ http://osxdaily.com/2010/09/07/iphone-development-costs/ http://appmuse.com/appmusing/how-much-does-it-cost-to-develop-a-mo
Appendix∗ Rackspace Cost ∗ Projected costs for a 1200 GB Disk with Rackspace would be $1,576.80/ month or $18,921.6 for one year, however the costs would be offset with the money that we actually save from not having to buy our own hardware, server maintenance fees, power and cooling costs, as well as software licensing and upgrade expenses. By subscribing to Rackspace for a relatively low monthly fee, InsterStar would actually be saving money from not having to maintain hardware that not only takes up valuable company space but also often goes unused, which would help stretch our budget further for other aspects of the business that could also use improvement. Rackspace would also allow us to scale down during slower periods in the year by using less storage space in order to cut costs. ∗ http://www.rackspace.com/cloud/cloud_hosting_products/servers/pricin