Question
You operateaCaribbeandestinationresort. You currently offer plans for a cruise departing from theresort and plans for a casino stay.It is expected that in 2021 there will
You operateaCaribbeandestinationresort. You currently offer plans for a cruise departing from theresort and plans for a casino stay.It is expected that in 2021 there will be some return to more normal travel.You will re-launch your advertising for 2021 announcing that customers will be able to do both for one price.Your marginal cost per customer across both tours is $4800.
Customer Preferences
Cruise
Casino
Customer1
$7,000
$3,000
Customer2
$2,000
$6,000
You know that about 21% of your customers decline cruises because of seasickness.At least 12% decline the casino trip saying they don't believe in gambling.As a rough approximation, you estimate that approximately 33% of your customers will never bundle.Given the preference distribution, will mixed bundling increase profits?You must show the calculations that support your conclusion.
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