A hotel that has 300 rooms charges a rate of $150 per night Monday through Thursday.During this period of peak demand,the hotel operates at 100 percent capacity.On weekends (Friday through Sunday),the hotel discounts half of its rooms at a rate of $100 per night while the remaining rooms are still priced at $150 per night.Calculate the hotel's yield for a Saturday night,if it fills 50 percent of the $150 rooms and sells all of the $100 rooms.

Question

Quizplus · Accepted Answer

The hotel has 300 rooms, and on Saturday night, it fills 50% of the $150 rooms and sells all of the $100 rooms. So, the hotel fills 150 rooms at $150 and 150 rooms at $100. The total revenue for the night is 150 * $150 + 150 * $100 = $37,500. The hotel's yield is the revenue divided by the total number of rooms multiplied by the room rate, which is $37,500 / (300 * $150) = 58%.

A Hotel That Has 300 Rooms Charges a Rate of $150