# II. Room Pricing in the Off-Season (Modeling) The data in the table, from a survey of hotels with comparable rates on Hilton Head Island, show that room occupancy during the off-season (November through February) is related to the price charged for a basic room. The goal is to use these data to help answer the fol-lowing questions. What price per day will maximize the daily offseason revenue for a typical hotel in this group if it has 200 rooms available? Suppose that for this typical hotel, the daily cost is \$5510 plus \$30 per occupied room. What price will maximize the profit for this hotel in the off-season? The price per day that will maximize the off-season profit for this typical hotel applies to this group of hotels. To find the room price per day that will maximize the daily revenue and the room price per day that will maximize the profit for this hotel (and thus the group of hotels) in the off-season, complete the following. Multiply each occupancy rate by 200 to get the hypothetical room occupancy. Create the revenue data points that compare the price with the revenue, R , which is equal to price times the room occupancy.

### Mathematical Applications for the ...

11th Edition
Ronald J. Harshbarger + 1 other
Publisher: Cengage Learning
ISBN: 9781305108042

Chapter
Section

### Mathematical Applications for the ...

11th Edition
Ronald J. Harshbarger + 1 other
Publisher: Cengage Learning
ISBN: 9781305108042
Chapter 10, Problem 1EAGP2
Textbook Problem
1 views

## II. Room Pricing in the Off-Season (Modeling)The data in the table, from a survey of hotels with comparable rates on Hilton Head Island, show that room occupancy during the off-season (November through February) is related to the price charged for a basic room.The goal is to use these data to help answer the fol-lowing questions. What price per day will maximize the daily offseason revenue for a typical hotel in this group if it has 200 rooms available? Suppose that for this typical hotel, the daily cost is \$5510 plus \$30 per occupied room. What price will maximize the profit for this hotel in the off-season? The price per day that will maximize the off-season profit for this typical hotel applies to this group of hotels. To find the room price per day that will maximize the daily revenue and the room price per day that will maximize the profit for this hotel (and thus the group of hotels) in the off-season, complete the following.Multiply each occupancy rate by 200 to get the hypothetical room occupancy. Create the revenue data points that compare the price with the revenue, R, which is equal to price times the room occupancy.

This textbook solution is under construction.

### Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

#### The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started