Ann Marie Has Been Working on Pricing for the Hotel

question 122

Multiple Choice

Ann Marie has been working on pricing for the hotel where she works.She knows that business travelers stay at the hotel because it has easy access to the airport,and leisure travelers stay there because it is convenient to the shopping and entertainment districts.She is unsure whether she should raise rates for the business travelers,the leisure travelers,both,or neither.As she works to find the best pricing mix,she'll have to look at the ways these travelers will evaluate the benefits of staying at the hotel.In doing so,Ann Marie will be using:

• A) value-based marketing.
• B) convenience pricing.
• C) destination planning.
• D) all of these.
• E) none of these.

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Definitions:

Fair Value

The estimated market value of an asset or liability, based on current conditions rather than historical cost.

Long-Term Investments

Investments in securities or other assets intended to be held for a period exceeding one year for capital growth or income generation.

Trading Investment

An investment in securities with the intention of selling them in the short term to profit from price changes.

Interest

The cost of borrowing money, usually expressed as a percentage of the amount borrowed, paid by the borrower to the lender.