Question: Any help would be appreciated:) Class Problem for Network Management The Hotel Deluxe has 450 rooms and offers a fixed daily rate of $100, good

Any help would be appreciated:)
Any help would be appreciated:) Class Problem for Network Management The Hotel

Class Problem for Network Management The Hotel Deluxe has 450 rooms and offers a fixed daily rate of $100, good for any night of the week. That price, current average demands, and estimated demand curves for the various days of the week are reflected in the following table: As you can see from this table, the hotel typically fills up on Wednesday and Thursday nights under the current pricing policy, and some demand is typically turned away on those nights as well, whereas there are typically rooms left empty on other nights, and the average occupancy rate is only 20% on Saturdays. The overall average occupancy rate is about 60%. (Remember that some demand is turned away on Wednesdays and Thursdays.) Not surprisingly, management has ordered a comprehensive review of the current pricing policy, including the introduction of a weekend discount rate for patrons staying three nights (Friday through Sunday). The hotel will therefore offer eight distinct "products" for any given week seven one-night products, and one three-night product. Market demand for the new multi-night product has been estimated as follows: Weekend Discount Package Quantity =9003.0 Price (a) If obliged to charge a common rate for all one-day stays, regardless of the specific day of the week, but free to offer lower average daily rates for the multi-day package, what prices do you recommend? (b) If you are free to charge different rates for one-day stays on different days of the week (that is, if the prohibition against variable pricing is lifted), now what prices do you recommend? How much does the lifting of the prohibition increase average weekly revenue

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