Question
P6.10 The Resolute Resort hotel currently operates at 75% occupancy, using a rack rate for all rooms of $60 and a marginal cost per room
P6.10 The Resolute Resort hotel currently operates at 75% occupancy, using a rack rate for all rooms of $60 and a marginal cost per room sold of $ 8 . calculate the occupancy figures for discount grid using discount percentages of 5%,15%,and 20%
P6.11 Motley Motel's potential average room rate is calculated to be $62.Assume that this motel had three market segments.Vacation travelers use 75% of the room nights and are charged 100% of the rack rate. business travelers use 15% of the room nights and are charged 90% of the rack rate.sport teams acounts for 10% of the room nights and are charged 80% of the rack rate.
a. calculate the room rate by market segment.
2. Prove that your calculations are correct,assuming that total annual room nights are 7,300.
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