(2) (160 points) The North Rising Hotel has 180 rooms, which are booked at three
ID: 1163357 • Letter: #
Question
(2) (160 points) The North Rising Hotel has 180 rooms, which are booked at three different rates: $79, $99 and $129 per night via three distinct marketing programs. The manager has provided you with the following forecast by rate for five days in November $79 $99 $129 40 Monday90 Tuesday12070 40 30 Wednesday 1108060 Thursday 80 60 30 Friday100 30 10 Saturday50 Sunday 10 15 30 In addition, she has compiled the following length-of-stay distributions 4-night 5% 096 096 5% 5% 096 096 3-night 15% ni 50% 60% 70% 80% 50% 90% 100% ni Monday Tuesday Wednesday Thursday Friday Saturday Sunday 30% 10% 40% 10% 0% 1096 5% 5% 0% 0% For example, this means that 50% of all Monday arrivals want to stay for one night, 30% want to stay for two nights, 15% want to stay for three nights, and 596 want to stay for four nights. Assume that, for each day of arrival, the same length-of-stay distribution applies for all three nightly rates. What is the optimal booking policy for the seven-day period? That is, for each day of arrival, how many reservations should be accepted for each combination of room rate and length of stay? What is the resulting revenue?Explanation / Answer
Resulting Revenue: Monday
Resulting Revenue: Tuesday
Resulting Revenue: Wednesday
Resulting Revenue: Thursday
Reservations to be accepted for each combination of room rate and length of stay: Friday
Resulting Revenue: Friday
Reservations to be accepted for each combination of room rate and length of stay: Saturday
Resulting Revenue: Saturday
Reservations to be accepted for each combination of room rate and length of stay: Sunday
Resulting Revenue: Sunday
Resulting Revenue is in $ for all the days.
Room Rate 1 night 2 nights 3 nights 4 nights $79 45.0 27.0 13.5 4.5 $99 20.0 12.0 6.0 2.0 $129 15.0 9.0 4.5 1.5Related Questions
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