Question: Mindy Lee was a software engineer who worked for a company that is known for its inventorymanagement software suite. She specialized in designing interfaces that

Mindy Lee was a software engineer who worked for a company that is known for its inventorymanagement software suite. She specialized in designing interfaces that help a business migrate itsinventory data to cloud computing. Mindy has loved the Internet since her school years; she used emailand browsers before any other kid in her class. She books all her travel arrangements online, includingflights, car rentals and hotel rooms.Mindy has inherited money and invested in a small hotel, the Sunrise, a 140-room independent, limitedservice midscale property. She has 80% ownership and her silent partner owns the other 20%, allowingMindy total control in operating decisions. The hotel has a lot of potential, as the area in which it is locatedis popular with tourists. There are two similar hotels nearby. Over the years, however, it has struggled togain market share. The previous owner, an old hotelier, did not have much experience with channelmanagement, nor did he understand the importance of segmentation. The average annual occupancy atthe Sunrise for the last two years (prior to Mindys ownership) was 40%. The average net rate for the lasttwo years (prior to Mindys ownership) was $130.Mindy is convinced that she can boost sales by embracing OTAs to sell her rooms, and believes thatExpedia can deliver best results.After her first two quarters (6 months) of being in charge, monthly occupancy has averaged 70%-asignificant improvement. The hotels CPOR (cost per occupied room) is a consistent $40. Her ranking onExpedia has the hotel on the first page for guest searches. Overall hotel ADR however, has droppedsignificantly to $110, even before Expedias 25% margin is factored in.The hotel is selling its rooms at a lower rate on Expedia vs. their own website (Sunrise.com). Almost allrooms are now being booked on Expedia. Even regular guests no longer use the Sunrise website.Using case study format (see rubric), address the situation. What is the primary issue? What is/are thesecondary issue (s)?

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