The rate spread (that is, the amount of difference in rate) between single and double occupancy is greater in European plan hotels than in American plan hotels.

Question

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European plan hotels typically charge for the room only, without meals, making the rate spread between single and double occupancy primarily based on the room size or bed configuration, whereas American plan hotels include meals, potentially leading to a greater rate spread as the cost of additional meals for the second occupant is factored into the price.

The Rate Spread (That Is, the Amount of Difference in Rate)