A ski resort has 20 deluxe rooms and 40 suites. December is the busiest month of the year.

You are facing with 2 alternatives:

Alternative 1: You can charge $95 for the deluxe rooms and $165 for the suite, you will have 95% occupancy for both types of rooms.

What would be the total room revenue for the month?

Alternative 2:You can increase your room rates by 30%, occupancy for each type of room will drop by 20%.

What would be the total room revenue for the month?

Assume there is no change to all costs. Which alternative should you choose? If you choose alternative 1, write 1 in the answer box; if you choose alternative 2, write 2 in the answer box?

Answer rating: 100% (QA)

Calculating Room Revenue and Choosing the Best Option Alternative 1 Deluxe room revenue20 rooms 95ro... View the full answer