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Due to the same late cancellations problem, you decide to reduce the price of your rooms to $150 and request customers to pay a non-refundable
Due to the same late cancellations problem, you decide to reduce the price of your rooms to $150 and request customers to pay a non-refundable fee of $50 at the moment of booking (as a result, customers that show-up only pay $100 on sight). Despite these changes, you estimate that the distribution of late cancelations will be the same as before.
How many overbookings should you accept?
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Step: 1
1 Estimate the NoShow Rate Determine the percentage of customers who typically cancel ...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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