day night at a reduced wedding package rate of $95 a room. If those rooms had been available for football fans, both Friday and Saturday nights would have been booked for $300 a night. The Inn's manager is feeling the heat to overbook the hotel, given that wedding guests are known to cancel at the last minute, and football fans book rooms well in advance. Bianca, the event coordinator, has provided data on the number of no-shows or canceled rooms from past weddings at the Inn. She cautions that while overbooking is a sound business practice and would yield lucrative income for that particular weekend, if word gets around that blocked rooms are not really blocked, the future of their wedding business would be in jeopardy. Use the data below to recommend an overbooking strategy for the Inn. Since fans would be looking for a two-night package for the game, assume that the unavailability of a Saturday night room would result in lost revenue from an. unsold Friday night room as well. Fur- ther assume that guests who are bumped will be moved to an expen- sive resort nearby for $450/night, paid for by the Inn. No-Shows Frequency 1 1 3 3 4.
day night at a reduced wedding package rate of $95 a room. If those rooms had been available for football fans, both Friday and Saturday nights would have been booked for $300 a night. The Inn's manager is feeling the heat to overbook the hotel, given that wedding guests are known to cancel at the last minute, and football fans book rooms well in advance. Bianca, the event coordinator, has provided data on the number of no-shows or canceled rooms from past weddings at the Inn. She cautions that while overbooking is a sound business practice and would yield lucrative income for that particular weekend, if word gets around that blocked rooms are not really blocked, the future of their wedding business would be in jeopardy. Use the data below to recommend an overbooking strategy for the Inn. Since fans would be looking for a two-night package for the game, assume that the unavailability of a Saturday night room would result in lost revenue from an. unsold Friday night room as well. Fur- ther assume that guests who are bumped will be moved to an expen- sive resort nearby for $450/night, paid for by the Inn. No-Shows Frequency 1 1 3 3 4.
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
Related questions
Question
Make a recommendation on overbooking rooms that maximizes profit.
Transcribed Image Text:14.36. Amy and Matt are getting married in their hometown the
same weekend as the Battle of Bristol, the largest college football
game ever played. That's good news for the couple, but bad news
for the Inn where the wedding is scheduled. A block of 50 of the
hotel's 100 rooms have been reserved for wedding guests on Satur-
day night at a reduced wedding package rate of $95 a room. If those
rooms had been available for football fans, both Friday and Saturday
nights would have been booked for $300 a night. The Inn's manager
is feeling the heat to overbook the hotel, given that wedding guests
are known to cancel at the last minute, and football fans book rooms
well in advance. Bianca, the event coordinator, has provided data on
the number of no-shows or canceled rooms from past weddings at the
Inn. She cautions that while overbooking is a sound business practice
and would yield lucrative income for that particular weekend, if word
gets around that blocked rooms are not really blocked, the future of
their wedding business would be in jeopardy.
Use the data below to recommend an overbooking strategy for
the Inn. Since fans would be looking for a two-night package for the
game, assume that the unavailability of a Saturday night room would
result in lost revenue from an.unsold Friday night room as well. Fur-
ther assume that guests who are bumped will be moved to an expen-
sive resort nearby for $450/night, paid for by the Inn.
No-Shows
Frequency
1
3.
4
2.
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