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(4) How much would the 2 Bedroom Suite Off-Peak per day rate need to be to have the same off-peak maximum revenue as the 1
(4) How much would the 2 Bedroom Suite Off-Peak per day rate need to be to have the same off-peak maximum revenue as the 1 Bedroom Suite?
| Beachfront Guest House | ||||||||||||||||||||||||||
| Effective May 1, 2016 | ||||||||||||||||||||||||||
| Peak Rentals | Off-Peak Rentals | |||||||||||||||||||||||||
| Rental Type | No. Units | Per Day | Maximum Revenue | Per Day | Maximum Revenue | Discount Rate | ||||||||||||||||||||
| Studio Apartment | 6 | $ 149.95 | $ 899.70 | $ 112.50 | $ 675.00 | 25.0% | ||||||||||||||||||||
| 1 Bedroom Suite | 4 | $ 250.45 | $ 1,001.80 | $ 174.00 | $ 696.00 | 30.5% | ||||||||||||||||||||
| 2 Bedroom Suite | 2 | $ 450.00 | $ 900.00 | $ 247.55 | $ 495.10 | 45.0% | ||||||||||||||||||||
| Questions & Answers | ||||||||||||||||||||||||||
| Assume all 12 units are rented as you answer the following questions: | ||||||||||||||||||||||||||
| (1) Which rental type generates the most maximum revenue for peak rental periods? | ||||||||||||||||||||||||||
| One bedroom suites generate the most revenue for peak rental periods. | ||||||||||||||||||||||||||
| (2) Which rental type generates the most maximum revenue for off-peak rental periods? | ||||||||||||||||||||||||||
| One bedroom suites generate the most revenue for off-peak rental periods | ||||||||||||||||||||||||||
| (3) Why is there a difference? | ||||||||||||||||||||||||||
| There is not a difference in this instance. However, in the off peak season the studio apartments generate the second highest amount of revenue vs the 2 bedroom suites during the peak season. This is due to the 2 bedroom suites having a higher discount rate during the off peak season. | ||||||||||||||||||||||||||
| (4) How much would the 2 Bedroom Suite Off-Peak per day rate need to be to have the same off-peak maximum revenue as the 1 Bedroom Suite? | ||||||||||||||||||||||||||
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