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The Accra Beach Hotel is located on the south coast of Barbadosa popular destination during the spring months. The hotel is considering a request from

The Accra Beach Hotel is located on the south coast of Barbadosa popular destination during the spring months. The hotel is considering a request from the West Indies Cricket Board (WICB) for 50 rooms during the entire West Indies Cricket Seriesa total of 28 daysin the spring of next year.The series occurs over a period that is typically quite busy for the hotel. The group is asking for a discounted rate of just $130 per night for 50 rooms. In addition, the group has requested free laundry every day.

The hotel has 140 rooms with a variable cost per room of $20. The sales director has estimated the average daily rate for the requested time of year to be $142.00. Finally, the sales director estimates that the laundry service will cost the hotel $20 per day.

Would it make sense for the Accra Beach to reserve rooms for this group at a reduced rate? Work through the following questions to find out.

Dates Forecast
24-Apr 140
25-Apr 138
26-Apr 131
27-Apr 132
28-Apr 120
29-Apr 125
30-Apr 140
01-May 140
02-May 140
03-May 139
04-May 102
05-May 78
06-May 85
07-May 110
27-May 96
28-May 111
29-May 111
30-May 122
17-Jun 121
18-Jun 115
19-Jun 109
20-Jun 115
21-Jun 122
22-Jun 113
23-Jun 127
24-Jun 141
25-Jun 141
26-Jun 120

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