Assignment $5$: Price Shops

The attached document is a shop for your competitor hotels. You are the Revenue Manager for Hotel Alpha. It is January $6$ and you just received your shops. the below applies to Hotel Alpha:

Main booking window is between $30$ to $45$ days out.

Hotel Alpha has $200$ Rooms available to sell per day. All room types are the same and priced the same

Hotel Alpha has sold $80$ rooms per night for a group from April $15$ to April $20(50$ rooms each night inclusive$).$ This means during these dates you only have $120$ rooms left to sell per day.

High season is from January $15$th to April $10$th$.$

Shoulder$/$Low season starts on April $11$th$.$

There is an art festival in market from March $25$th to March $31$st$.$ This is creating increased demand in market.

High season prices in this market range from $$300$ to $$650.$

Low season prices in this market range from $$200$ to $$550$

Hotel Alpha is the price leader in market. It is ranked as one of the best hotels in the area due to their $5$ star service. Hotel Las Brisas and Belmond are your biggest competitors.

Based on the price shop attached $,$ Las Brisas and Belmond are sold out on some days.$($ CLOSED$)$

Based on this information, what price changes should you make for the entire period shown on the shops. If you need to change the price add an additional column adding the prices you will set and showing the difference.

Please explain why or why not you are making a change. Be very detailed. Submit your explanations on a separate word document in essay format.

Please ensure you submit the excel document showing the price changes AND the word document showing your detailed explanations.

Help: Please read carefully everything mentioned above. Booking window means how far in advance the majority of your rooms get booked. This is where most of the activity happens.

If a hotel in your competitive set is already sold out. This means there is less inventory in your market. You should take advantage of this.

Having group on the books, creates compression ; therefore you should maximize the revenue you can get from the inventory you have left.$\backslash$