You are the revenue manager of a 200 room hotel in Memphis The management controllable costs (variable room costs) incurred when selling 1 room are $50 You are interested in evaluating hotel performance for two scenarios fixed pricing and differential pricing Scenario one is that you used a fixed pricing strategy at a selling pricing $200 per night your hotel would sell 150 rooms on a given day Scenario two is that you implement a three price strategy low rate $150 per night, regular rate $200 per night, and high rate $250 per night Your hotel would sell 100 low priced rooms, 60 regular priced rooms, and 20 high priced rooms per day 2 Discuss which scenario generates more revenue for your hotel and why

Question

You are the revenue manager of a 200 room hotel in Memphis  The management controllable costs (variable room costs) incurred when selling 1 room are $50  You are interested in evaluating hotel performance for two scenarios  fixed pricing and differential pricing  Scenario one is that you used a fixed pricing strategy  at a selling pricing $200 per night your hotel would sell 150 rooms on a given day  Scenario two is that you implement a three price strategy  low rate $150 per night, regular rate $200 per night, and high rate $250 per night  Your hotel would sell 100 low priced rooms, 60 regular priced rooms, and 20 high priced rooms per day  2  Discuss which scenario generates more revenue for your hotel and why

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Question

You are the revenue manager of a 200-room hotel in Memphis. The management controllable costs (variable room costs) incurred when selling 1 room are $50.

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