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Question 19 2 pts Illness often lead to last minute cancellations. A large hotel chain has been recently frustrated with no-shows (a number of
Question 19 2 pts Illness often lead to last minute cancellations. A large hotel chain has been recently frustrated with no-shows (a number of guests who failed to show up for their reservation mainly due to covid tests & their fairly easy cancelation policy). Using a data scientist, they are collecting data on no-shows. However they are exploring if they should be overbook? Suppose that an empty suite due to a no-show could have been filled at the discounted rate, $355. However, overbooked guests need to refunded their guest deposit of $355 and also book them at a nearby accommodation at her own expense, which she estimates costs her another $650. What critical ratio should they should use for overbooking?
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