Question

Suppose that Waldo Hotel has 200 rooms in a college town. Of these, 80, 15 and 120 rooms on Friday, Saturday, and Sunday respectively are still left to sell according to forecasted room demand. Which date should the Revenue Manager identify as MLOS of two days to maximize total weekend occupancy?

Answer 1

Answer:

To maximize its weekend occupancy manager should apply the concept of Revenue Management, sell lower at low occupancy, and sell higher as demand increases. Here 80/15/120 rooms are left means the occupancy rate is 120/185/80 and the company want s to maximize at weekends. Friday and Sunday together consume the overall performance of Saturday and the company wants to open at weekends so, these both days re better to leave vacate as the ratio of occupancy is 80/200 and 120/200 lower than others.SO it's better to vacate in these two days

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