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5. A 400-room hotel located near Boston's Logan International airport (BOS) normally discounts very heavily (sometimes as much as 50 percent off the rack rate)
5. A 400-room hotel located near Boston's Logan International airport (BOS) normally discounts very heavily (sometimes as much as 50 percent off the rack rate) on Sunday nights because, historically, it has sold an average of 100 rooms on that night . Historical data taken from the PMS indicates that over the past two months, occupancy percentage on Sunday nights averaged slightly less than 25 percent. Today is Sunday , and the PMS shows the property currently has 110 reservations on the books. The weather forecast, however, is for extremely heavy snowstorms of the type that have, in the past , significantly delayed flights or closed the airport. On nights such as these, the hotel has experienced a sell-out as airlines seek housing for their stranded passengers and delayed flight crews. Should the hotel's RM immediately revise their demand forecast and also eliminate the heavy discounts on the rooms remaining to be sold on this Sunday night? Do you feel ethical issues are in play in this scenario? Explain your answers. any
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