What is a profitability of fictitious hotel

Discuss the below:

Q1-On busy nights, it is not uncommon for a front-office manager to remove several rooms from availability. Usually, the manager creates a fictitious reservation, thereby "selling" the rooms and removing them from availability. By holding on to a few rooms, the manager feels in a better position to accommodate a special guest or request when the hotel is sold out.

Granted that the reason management holds rooms may be very honorable, do you believe this practice undermines the very basis of last-room availability technology? Explain your answer.

Q2- Consider the profitability of fictitious hotel which charge higher rates but attains lower occupancy compared to similar fictitious hotel which charge lower rates but attains higher occupancy. Discuss the merits of each hotel, assuming you were

(a) the manager of budget economy property,

(b) the manager of a commercial convention property, or (c) the manager of an upscale resort property.

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