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Incentive Pay in the Hotel Industry Kristin Helmud is the general manager of Highland Inn, a local midpriced hotel with 100 rooms. Her job objectives include providing resourceful and friendly service to thehotel's guests, maintaining an 80% occupancy rate, improving the average rate received per room to $88from the current $55, achieving a savings of 5% on all hotel costs, and reducing energy use by 10% bycarefully managing the onsite laundry facility, amonth other means. The hotel's owner, a partnership ofseven people who own several hotels int eh region, want to structure Kristin's future compensation toobjectively reward her for achieving these goals. In the past, she has been paid an annual salary of $72,000,with no incentive pay. The incentive plan the partners developed has each of the goals weighted as follows:
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