Many hotels rely on promotions in order to increase sales

Assignment Help Operation Management

Reference no: EM131435166

Many hotels rely on promotions in order to increase sales. Say you are a hotel manager choosing between two different promotions: a Buy Three, Get Fourth Free promotion (BOGOF), and Half-Price promotion. Before any promotion was announced, Angela and Betty (two potential buyers), were separately planning to stay at the hotel for two nights each this month. Each has the same income and allocates the same budget to her vacation. In two diagrams (one for each potential buyer), shows that Angela takes advantage of the BOGOF promotion and Betty does not because their tastes differ. As an alternative to the BOGOF promotion (“the fourth night free if you pay for three nights”), the resort could offer a half-price promotion in which, after staying two nights at full price, the next two nights are half the usual price. Assume the resort earns the same revenue from either promotion if someone stays four nights. Draw the new situation in each of the diagrams you used in part (a). Which promotion would be more effective for which buyer?

Reference no: EM131435166

Questions Cloud

Business that makes two complementary products : Assume you own a business that makes two complementary products for which you allocated manufacturing overhead proportionally. A competitor is trying to undercut your price for one of the products. How might activity-based costing help you better com..

Design a backup strategy that would provide secure storage : Your friends Dinesh and Vinnie have started a small graphics design firm in Covington KY. They know you are enrolled in the Masters in Information Security program at University and want you to design a backup strategy for them. Presently the firm..

Determine the height of the tree : COSC 2007 -Data Structures - determine the height of the tree, and find each value. You do not need to output the tree using the inorder traversal, but it might be a useful method for you during debugging. Run the program on the two sets of intege..

Searching for a job in finance : Imagine you have completed your bachelor's degree at Strayer and you are searching for a job in finance, accounting or business. Using various employment websites (i.e. Monster.com, Indeed.com, USAjobs.gov) find three (3) careers in finance that y..

Many hotels rely on promotions in order to increase sales : Many hotels rely on promotions in order to increase sales. Say you are a hotel manager choosing between two different promotions: a Buy Three, Get Fourth Free promotion (BOGOF), and Half-Price promotion. Before any promotion was announced, Angela and..

Provide an example of effective early risk identification : To what extent do you think is it possible to identify risks associated with the project early in the project's life span? Provide an example of effective or ineffective early risk identification.

Description of the vulnerable population : A description of the vulnerable population and why they need assistance in your community. A description of the health service needs of the vulnerable population you have chosen to serve with your program

A long coaxial cable consists of two cylindrical shells : A long coaxial cable consists of two cylindrical shells. The inner cylinder with radius a carries a uniform line charge +λ (charge per unit length along the z direction), and the outer cylinder has a radius b and carries a line charge -λ. The char..

What is the value of the stock : A stock will pay dividends of $3, $5, and $9 over the next three years, and then increase dividends at a rate of 9% afterwards. Its required rate of return is 20%. What is the value of the stock?

User Account

All Pages