Read the following article (read before the section of forecasting demand in page 166) and answer the following questions.

Metters et al. (2008) The "Killer Application" of Revenue Management: Harrah's Cherokee Casino & Hotel

166 Interfaces 38(3), pp. 161-175.

This article is accessible from our library online databases at Business Source Ultimate.

(Databases Select Business Source Ultimate and Go Click Business Source Ultimate Log in Type keywords (Harrah and RM))

5. The Cherokee denied Mr. Smith's room reservation request, although it has 183 unreserved rooms for that night, and gave Mr. Smith a free room at another hotel because the Cherokee's management believes that the hotel's RM (Revenue Management) system, which makes such decisions, contributes to the hotel's profitability. Explain how such decision can result in higher profits (20 points)

6. Discuss at least two weaknesses of segmenting customers by restrictions (10 points)

7. What does RFB1 mean in the Table 1? (10 points)