Imagine you are the rooms manager of Will’sWooms, an 80-room hotel located in Stratford upon Avon. Demand for hotel rooms is significantly affected by the tourist season and the popularity of plays appearing in the nearby Shakespeare theatre. e General Manager has asked you to defend your decision to increase average room rates to £120 during the recent summer theatre season. Occupancy for this year’s summer theatre season was 80 per cent which is down from the previous year’s summer occupancy of 90 per cent. Average room rates charged during the previous year’s summer season were £100.

Required:

Use revpar to defend your decision to increase room rates charged during this summer’s theatre season.