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Hotel Galway is a 50-room Boutique hotel in a popular city break destination in Ireland. Until recently the hotel has priced each room at $120

  1. Hotel Galway is a 50-room Boutique hotel in a popular city break destination in Ireland. Until recently the hotel has priced each room at $120 for bed and breakfast. On average 40 rooms are occupied every weekend. The variable cost of each occupied room is $30. Following an internal review, management has decided to try a revenue management approach, with rooms priced at $90 for bookings up to one week early and $180 for bookings within a week of their stay. It is estimated the hotel will sell 28 rooms at the lower price and 14 at the higher price. Variable costs will not change. 

  2. Recommend which approach is the most feasible.

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