Pearson New International Edition International pcl tp indd 1

R3—Revenue Management
Three months from now there will be a national attorney’s conference that will significantly
increase local demand for hotel rooms. One hotel anticipates that the demand for rooms with
king-size beds will be much greater than for rooms with two queen-size beds. As a result,
the hotel is likely to sell all of its rooms with king-size beds very quickly, leaving it with only
rooms with two beds.
What decisions should be made about the relative prices guests should be charged for
these two different types of rooms?
If RevPar is to be maximized, the desires of guests for a specific room type must be
considered. Guests’ desires should factor into the ultimate pricing decisions made
about that room type. The higher the demand for a specific room type during a spe-
cific time period, the greater potential the hotel has to increase RevPar for that room
type during that time period.
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