Revenue Management:

1) Define a wholesaler. How is a wholesaler different from a third-party website?

Use the following information to answer questions 3, 4, and 5:

Fancy Hotel sells its rooms through GDS. The room rate is $100. The Commission per room per night is 20%. The Transaction fee per reservation is $13.

2) What is the total cost for the hotel for one room booked for 3 nights through this channel?

3) Assume that there 50 reservations were sold through this channel for the month of May, for a length of stay for 2 nights, therefore 100 room nights were generated. What was the total cost of the rooms sold for this channel?

4) What is the total profit through this channel (total revenue - total costs) for one reservation for one night? What is the total profit through this channel (total revenue - total costs) for May, using the information from question 3?