Question
A study done by the largest hotel in the village has shown that skiers spend on average $50 per person on the first day and
A study done by the largest hotel in the village has shown that skiers spend on average $50 per person on the first day and $30 per person on each additional day in local restaurants. The study also forecasts that due to increased hotel prices the average length of stay for the upcoming 2018/ 2019 season will be reduced to five days. What will be the percentage change in revenues of local restaurants compared to current year (when skiers still stayed for 10 days)? Assume that hotels continue to be fully booked (i.e., on average there are still 1200 skiers in the village). Also assume that the spending profile remains the same, i.e., skiers still spend on average $50 per person on the first day and $30 per person on each additional day in local restaurants. Choose the numerically closest answer.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started