Question: Study question I need input for. My answer is either E or B. You have to give up discounted rooms to the retail group if

Study question I need input for.

My answer is either E or B. You have to give up discounted rooms to the retail group if you want to maximize revenues. I would go with E but the wording makes it sound like your reducing the actual rate for discounted rooms. Making discounted rooms even cheaper isn't what we want.

You are examining your OTB Reservations for the weekend of December 17th to the 19th. Youve calculated your new forecast using the OTB data. In the original forecast, you had anticipated being very close to 100% occupied. When compared to the original forecast you find the following:

Retail Group Discount
Friday -40 +5 +25
Saturday -35 +2 +30
Sunday -30 +1 +20

Presuming youve completed a competitive rate shop and have concluded that your rates are largely similar to those of your key competitors, which of the following would be the most likely strategy

a. increase the retail rate b. reduce the retail rate c. increase the group rate d. reduce the group rate e. reduce the discount rate

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!