You own an enchanting Victorian bed-and-breakfast facility in Ashland,Oregon,home of the annual Oregon Shakespeare Festival.The symbol for your in-season rates is $$$$,when the Bard's plays are being enacted on the stages.In season,you have a two-night minimum-stay requirement.When the festival season has ended,however,you have trouble filling your rooms.
Using the tool of yield management,what action will you take to maximize profits?
A)close down your facility during the off season to minimize expenses
B)connect with other hotel/motel owners and set a minimum rental limit
C)lower your rates to $$ and remove the minimum-stay requirement
D)keep your rates and minimum stay the same and increase advertising
E)consider the off season as vacation time to renew your energy

Question

You own an enchanting Victorian bed-and-breakfast facility in Ashland,Oregon,home of the annual Oregon Shakespeare Festival.The symbol for your in-season rates is $$$$,when the Bard's plays are being enacted on the stages.In season,you have a two-night minimum-stay requirement.When the festival season has ended,however,you have trouble filling your rooms. ​
​Using the tool of yield management,what action will you take to maximize profits?
A)​close down your facility during the off season to minimize expenses
B)connect with other hotel/motel owners and set a minimum rental limit​
C)​lower your rates to $$ and remove the minimum-stay requirement
D)​keep your rates and minimum stay the same and increase advertising
E)​consider the off season as vacation time to renew your energy

Quizplus · Accepted Answer

Lowering the rates and removing the minimum-stay requirement can attract more guests during the off season. This can increase occupancy rates, which will result in higher revenue and profits. Additionally, it is important to note that yield management involves adjusting prices and terms based on demand and supply levels to maximize revenue. Therefore, keeping the same rates and minimum stay requirements may not be the best strategy for the off season when demand is low.

You Own an Enchanting Victorian Bed-And-Breakfast Facility in Ashland,Oregon,home of the Annual