nalyze Cityscape Hotels Cityscape Hotels has 200 rooms available in a major metropolitan city. The hotel is able to attract business custo
Analyze Cityscape Hotels
Cityscape Hotels has 200 rooms available in a major metropolitan city. The hotel is able to attract business customers during the weekdays and leisure customers during the weekend. However, the leisure customers on weekends occupy fewer rooms than do business customers on weekdays. Thus, Cityscape plans to provide special weekend pricing to attract additional leisure customers. A hotel room is priced at $180 per room night. The cost of a hotel room night includes the following:
| Cost Per Room Night (at normal occupancy) |
|||
| Housekeeping service | $23 | ||
| Utilities | 7 | ||
| Amenities | 3 | ||
| Hotel |
55 | ||
| Hotel staff (excluding housekeeping) | 42 | ||
| Total | $130 |
The special weekend price is proposed for $120 per room night. At this price, it is anticipated that average occupancy for the weekend (Friday, Saturday, and Sunday) will increase from 30% to 50% of available rooms.
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