Your friend works for a hotel in downtown Pittsburgh primarily serving business travelers.Choose all of the following yield management strategies that he is likely to use.
A)Higher prices on weekdays.
B)Lower prices on weekends.
C)Lower prices for rooms booked after 10:00 P.M. for a stay the same night.
D)Lower prices for weekday stays extended through Saturday.
E)Prices on all days lower than competition.

Question

​Your friend works for a hotel in downtown Pittsburgh primarily serving business travelers.Choose all of the following yield management strategies that he is likely to use.
A)​Higher prices on weekdays.
B)​Lower prices on weekends.
C)​Lower prices for rooms booked after 10:00 P.M. for a stay the same night.
D)​Lower prices for weekday stays extended through Saturday.
E)​Prices on all days lower than competition.

Quizplus · Accepted Answer

A hotel serving primarily business travelers in downtown Pittsburgh is likely to use yield management strategies to optimize revenue. Higher prices on weekdays and lower prices on weekends can help capture the price-sensitive leisure travelers and fill rooms that may have been empty otherwise. Lower prices for rooms booked after 10 PM for a stay the same night can help fill last-minute unsold rooms. Offering lower prices for weekday stays extended through Saturday can encourage business travelers to extend their stays into the weekend, which can help fill weekend rooms that may have been vacant. Therefore, A, B, C, and D are the likely yield management strategies used by the hotel. Offering prices lower than the competition on all days may not be a good idea as it may lead to a perception of lower quality or may not provide enough revenue to sustain the hotel's operations.

​Your Friend Works for a Hotel in Downtown Pittsburgh Primarily

Your Friend Works for a Hotel in Downtown Pittsburgh Primarily