Quebecs bonvivant hotel has 200 rooms it sets its room


Question: Quebec's BonVivant hotel has 200 rooms. It sets its room rates according to a policy of charging $120 per night to business clients and $90 per night for group bookings. It has found that most guests stay for three nights. A manager is attempting to determine whether a four-week advance reservation should be made for a group of 40 seeking accommodation on the nights of 20, 21 and 22 June. Eighty rooms for these three nights have already been booked by business clients and past purchasing patterns suggest that, subject to availability, 90% of the remaining 120 rooms will also be sold to business clients.

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Finance Basics: Quebecs bonvivant hotel has 200 rooms it sets its room
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