For the case Le Grand Htel de Leysin (GHL). Please help with below questions. At the board

For the case Le Grand Hôtel de Leysin (GHL). Please help with below questions.

At the board meeting held in January 2020 the board denied Sofie's request to stop offering the conference service (i.e., to discontinue the fourth of the business lines of the hotel). Do you think that the board was right? Why? What would have been the profit before tax for 2019 if the conference service had been discontinued from January 2019 to December 2019? 

 

At the board meeting to be held in July 2020 Sofie will bring up the issue that Accor had launched a campaign offering significant discounts for overnight stays until the end of 2020. Should GHL decrease the price of overnight stays (i.e., the net daily room rate) from 141.1 to 120 Swiss francs? How would this decision affect the company's profit in the second semester of 2020? Why do you think Accor decided to decrease the price of overnight stays?

Answer rating: 100% (QA)

Regarding the first question it is difficult to determine whether the board was right or wrong witho... View the full answer