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During the past tourist season, Surfside Hotel did not achieve very high occupancy despite a reservation system that was designed to keep the hotel fully

During the past tourist season, Surfside Hotel did not achieve very high occupancy despite a
reservation system that was designed to keep the hotel fully booked. Apparently, prospective
guests were making reservations that, for one reason or another, they failed to honor. A review
of front-desk records during the current peak period, when the hotel was fully booked, revealed
the record of no-shows given in the following table. There is a $200 opportunity loss from a no-
show. The resulting loss when a guest is overbooked is also $100. Surfside currently overbooks
for 2 rooms. Should Surfside revise its booking policy?
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