An Empty Hotel Room Brings in No Revenue

question 47

Multiple Choice

An empty hotel room brings in no revenue.Then why wouldn't a hotel manager at a luxury hotel or resort offer a very low,last-minute rate for an unfilled room?

• A)it would reduce the manager's bonus which is based on total revenue
• B)it would result in a price war with similar hotels or resorts
• C)it is likely the person getting the discount rate will cancel
• D)to avoid "cheapening" the reputation of the luxury hotel

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Definitions:

Major Competitors

The top or primary companies that compete in the same industry or market, offering similar products or services.

Strategy

A plan of action designed to achieve a major or overall aim, often involving detailed methodologies to conquer challenges and achieve long-term goals.

Prestige Pricing

A pricing strategy where goods are priced higher to evoke a sense of luxury or exclusivity.

Lamborghini

An Italian brand known for manufacturing luxury sports cars and SUVs, characterized by their high performance and distinctive design.