A Hotel Chain Is Considering Using Yield Management to Increase

question 94

Essay

A hotel chain is considering using yield management to increase profits. Its plan is to sell unsold rooms at a discounted rate very close to the night of stay. For example, an unsold Friday night room would be discounted early in the week. It estimates that the percentage of sold rooms (total) would be equal to 50+X, where X is the % discounted off of regular price. Meanwhile the % of rooms sold for full price compared to the discount would be 100-2X (some people would wait to book gambling a discount would happen). Find the ideal discount %.

---

Definitions:

Voice

In organizational contexts, voice refers to the act of expressing opinions, concerns, or suggestions by individuals or groups, often aimed at improving conditions or influencing decisions.

Supportive Communication

Engaging in dialogue that is empathetic, encourages positive relationships, and fosters mutual respect.

Organizational Silos

Refers to the separation of different departments or sectors within an organization, operating independently and with limited communication and cooperation.

Divisional Grapevine

Informal and unofficial channels of communication within a specific division or area of an organization.