Kamal Diamond is the owner of the Galaxy chain of four-star prestige hotels. These hotels are in Chicago, London, Los Angeles, Montreal, New York, Seattle, Tokyo, and Vancouver. Diamond is currently struggling to set weekend rates for the Vancouver hotel (the Vancouver Galaxy). From Sunday through Thursday, the Galaxy has an average occupancy rate of 90%. On Friday and Saturday nights, however, average occupancy declines to less than 30%. Galaxy's major customers are business travellers who stay mainly Sunday through Thursday. (Click the icon to view more information.) Requirement 1. Would you recommend that Diamond reduce room rates at the Vancouver Galaxy on Friday and Saturday nights? What factors to protect the value proposition should be considered in his decision? A. Customers, competitors, and costs should be considered in the decision. Competitors would likely lower their prices even further if Diamond reduced their room rates, making the rate decrease meaningless. For this reason, Diamond should not reduce the room rates. B. Customers, competitors, and costs should be considered in the decision. If other hotels are reducing room rates on these nights, customers are likely to be understanding of this type of pricing, and since the variable costs per room are relatively low, they could still make money with the reduced rates. For these reasons, Diamond should reduce the room rates. c. Customers and costs should be considered in the decision. The hotel is likely to lose money if they charge lower rates on these days. For this reason, Diamond should not reduce the room rates. D. Customers and costs should be considered in the decision. Customers will likely see the hotel as lower rate if they charge lower rates on certain days. For this reason, Diamond should not reduce the room rates. Requirement 2. In six months' time, the Grey Cup is to be held in Vancouver. Diamond observes that several four-star prestige hotels have already advertised a Friday-through-Sunday rate for Grey Cup weekend of $360 a night. Should Diamond charge extra for the Grey Cup weekend? Explain. A. Diamond should not charge extra because increasing the prices will also increase the variable costs, negating any gains from the increase. B. Diamond should not charge extra because they can differentiate themselves from the other hotels by keeping prices lower, and therefore increase profits by boosting the number of occupied rooms. C. If Diamond can find a way to not alienate their long-term customers by increasing the prices and other hotels are already doing this, they should charge extra for Grey Cup weekend since the variable costs will not change, increasing the amount of profits for the company. D. Diamond should charge extra because all customers would be happy to pay extra to stay at the hotel over this period. Kamal Diamond is the owner of the Galaxy chain of four-star prestige hotels. These hotels are in Chicago, London, Los Angeles, Montreal, N currently struggling to set weekend rates for the Vancouver hotel (the Vancouver Galaxy). From Sunday through Thursday, the Galaxy has a Saturday nights, however, average occupancy declines to less than 30%. Galaxy's major customers are business travellers who stay mainly (Click the icon to view more information.) Required Requirement 1. Would in his decision? A. Customers, con decrease mean 1. Would you recommend that Diamond reduce room rates at the Vancouver Galaxy on Friday and Saturday nights? What factors to protect the value proposition should be considered in his decision? 2. In six months' time, the Grey Cup is to be held in Vancouver. Diamond observes that several four-star prestige hotels have already advertised a Friday-through-Sunday rate for Grey Cup weekend of $360 a night. Should Diamond charge extra for the Grey Cup weekend? Explain