Consider the following situation:

Let me see if I can summarize, said Lucir, the RM at the 400-room Sheraton Civic Center Hotel. Jaymal, you think we should pay extra to move our property up on the Internet listing of our areas hotels. Thats right, said Jaymal, the hotels FOM. I think we need to be listed first or second and pay what we need to pay to get that placement. If we are lower than that, I think we just lose out. We need to make it easy for travelers to book us. O.K. continued Lucir, Sharon, you think we should take the same financialresources to purchase the entire back cover of the CVBs new Meeting PlannersGuide To The City.

Thats right, said Sharon, the hotels DOSM. Were adjacent to the civiccenter. Its a no-brainer to appeal to those groups bringing meetings to the area.

Besides, I think it will help our standing with the CVB to really support theirefforts.

1. Assuming similar costs and revenue generation from these two channels, what customer-related factors would likely influence Lucirs decision? (9 marks)

2. In addition to the actual costs associated with the two alternatives, what net ADR yield considerations should be part of this decision-making process?

   (8 marks)

3. If you were the GM of the hotel, what other factors would you want your RM

   team to consider before making the final decision on this issue? (8 marks)

   (Maximum of 150 words for each of a., b., and c.)