You operate a group of hotels which have seen an increase in the amount of reservations. You currently have a staff of 10 people working in the reservations area. You would like to concentrate on providing the guests with an exceptional stay at the hotels, but the cost of a computerized reservation system would reduce the amount of staff which could service the guests. You have to make some decisions on which decision will be best for the business.

1. What relevant and irrelevant information do you need to make this decision?
2. What non-financial information is relevant to make this decision?
3. Explain how your decision will have an affect on your pricing for the hotel?