Question: When high - fare demand is less than their protection level, rooms went empty because it was too late to sell the rooms to low
When highfare demand is less than their protection level, rooms went empty because it was too late to sell the rooms to lowfare arrivals. But now Le Meridien has an opportunity to sell rooms at the lastminute to a third party seller such as hotwire.com and priceline The third party seller buys the unsold rooms on that day at $ and assumes all the risk of selling those rooms on its website. How many rooms should Le Meridien now protect for high fare customers given that the hotel now has this opportunity to salvage unsold inventory at the last minute for $ Assume high fare customers still pay $ per night, and the demand for high fare customers is still normally distributed with mean and standard deviation Early demand at the low fare of $ remains ample and Le Meridien still makes this decision to maximize expected revenue. Choose the closest answer.
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