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There is a situation where a hotel incurs a cost of INR 5 0 0 for booking of a room. Hotel has a tie up
There is a situation where a hotel incurs a cost of INR for booking of a room. Hotel has a tie up with many nearby hotels to offer bookings to any number of travellers.
Demand of hotel rooms can be explained using demand graph dpp Now,
there is some renovation work is going in nearby hotels and they are unable to accommodate my guests. I can only use my hotel capacity of rooms. What should be new price to get maximum profit in this new scenario with existing demand pattern?
What will be profits in two situations?
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