Question
The Park Hyatt Philadelphia at the Bellevue. 118 King/Queen rooms. Hyatt offers a rL= $159 (low fare) discount fare for amid-week stay targeting leisure travelers.
The Park Hyatt Philadelphia at the Bellevue. 118 King/Queen rooms. Hyatt offers a rL= $159 (low fare) discount fare for amid-week stay targeting leisure travelers. Regular fare is rH= $225 (high fare) targetingbusiness travelers. Demand for low fare rooms is abundant. Let D be uncertain demand for high fare rooms.Hyatt believes a Poisson distribution with mean 27.3represents the number of high-fare demand. Assume most of the high fare (business) demandoccurs only within a few days of the actual stay. Objective: Maximize expected revenues by controlling thenumber of low fare rooms you sell
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