Osakas PowderSki Hotel has been approached by a tour operator wanting to book 30 rooms for 1 week at the group rate of 70,000 per room. The hotel has 110 rooms. The hotels revenue manager has predicted that if the booking is not accepted, the hotel will be able to achieve an 80% occupancy with all guests paying a weekly room rate of 100,000. PowderSkis revenue manager is concerned about the displacement of higher rate-paying guests if the group booking is accepted and is thinking about cutting the weekly room rate to 60,000 if the tour operator can find a way to reduce the size of his room allocation request to 22 rooms.