A Hotel Manager Must Decide How Many Rooms to Overbook

question 21

Multiple Choice

A hotel manager must decide how many rooms to overbook.Room rates are $125 per night and each room costs $45 to maintain.A bumped customer is sent to another hotel at a cost of $75.Given the distribution of no-shows below,how many rooms should the manager overbook?

• A)Overbook 9 rooms.
• B)Overbook 10 rooms.
• C)Overbook 11 rooms.
• D)Overbook 12 rooms.

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Definitions:

Eager Beaver

An extremely enthusiastic and hardworking person, often one who takes on more tasks or responsibilities voluntarily.

Nonoperational Goal

A goal that is not defined clearly enough to be measurable or observable.

Operational Goal

Targets set by an organization aimed at improving performance through specific and measurable outcomes affecting daily functions.

Operational Goals

Short-term and specific objectives that are aimed at implementing the broader strategic goals of an organization.