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The CalgaryStampede Hotel has 200 guest rooms. The hotels revenue manager has been approached by a tour operator who would like to book 100 rooms
The CalgaryStampede Hotel has 200 guest rooms. The hotels revenue manager has been approached by a tour operator who would like to book 100 rooms at a rate of $109 for a Monday in 3 weeks time. To help in her decision-making, the revenue manager has calculated the daily average occupancy and room rate over the last 8 weeks:
MondaysTuesdaysWednesdaysThursdaysFridaysSaturdaysSundaysAverage occupancy88%91%78%67%45%51%29%Average room rate$158.75$188.75$148.75$138.75$155.75$159.75$129.75Required
Determine whether the revenue manager should accept the group operators request to book 100 rooms at $109 per room on a Monday in 3 weeks time.
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