Please review the scenario below

$"$I$\text{'}$m sorry Sir," said Jose "but all of our cabanas are booked right now. I will have one

available in about one hour."

"Thanks anyway," said the disappointed family as they left the pool area. It was a hot day

at the pool at the Rancho Mirage Resort & Spa. The hotel was packed with families who

wanted to enjoy to the pool and waterslide.

"What did they want?" asked Jill, Juso's inanager, as she will ed ov$"$r to the pool services

desk.

"They wanted to rent a cabana for the afternoon and they are all booked." said Jose.

Jill looked at her watch and said, "Typical, it's $12$pm$,$ prime time. Everybody wants a

cabana when it is the hottest part of the day. You should have told them to book ahead

next time or come in the morning when it is slow!"

"Maybe we need to put in more cabanas," said Jose, $"$so we have more to sell in the peak

times."

"More cabanas just means more cost and less pool deck," replied Jill. "maybe we what

we really need to do is reexamine cur jlicing."

Please answer this question:

Assume that the resort decides to implement a demand$-$based $($differential$)$ pricing

structure. How would you advise them to do it$?$ Create an actual pricing schedule for the

cabanas with booking and cancellation policies. Make sure to include explanations and

justifications for all aspects of you pricing plan.