Question
Lets say a portion of money that you add, usually, in a package at Quellenhof to cover the fee. Example: a hotel room costs 200
Another example:
The revenue management at the resort uses markup to refer to the amount an online travel agency, increases the net room rate to set the sell rate.
The online travel agency has a model to work with Quellenhof based on the net rate. Quellenhof will provide the travel agency rate, and the travel agency will mark it up or in other words increase it to set a sell price
Qullenhof gives the agency a rate of 100 and the agency marks up 20, to sell at 120.in this case the markup is 20%.
formula of Markup is:
Markup = Selling Price - Net Room Rate (120-100=20)
Markup % = Markup / Net Room Rate (20/100= 0.2 = 20%)
1 per 1000 approach
Quellenhof invested 18.7 million in the hotel for130 rooms. Then we calculated what average rate we have to reach for one room (investment) --> 143.846,154. Average rate of the 1 per 1000 approach = 143.846.15/1000 = 143.85 per room
What are the Advantage and dis advantage of this pricing approach?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
The 1 per 1000 pricing approach where the markup is calculated as a percentage of the total investme...Get Instant Access to Expert-Tailored Solutions
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Step: 2
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