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We're looking for which conference it would make more sense to choose ROB (avoiding the block rate, but staying in the hotel) over ROHH(avoiding the host hotel altogether in favor of a cheaper alternative.) Well, if you're attending the AMG conference, you're already at the cheapest hotel (for out of block rates), so ROHH doesn't make any financial sense - we can't do any better than $65! So here, it makes more sense to opt for ROB and grab that$65 out-of-block rate, rather than switch to another hotel, where we'd have to pay at least $70. The answer, then, is A Enroll in a Veritas Prep GMAT class completely for FREE. Wondering if a GMAT course is right for you? Attend the first class session of an actual GMAT course, either in-person or live online, and see for yourself why so many students choose to work with Veritas Prep. Find a class now! datonman Senior | Next Rank: 100 Posts Joined 28 May 2014 Posted: 53 messages Tue Jan 27, 2015 7:24 pm thank u for the response. But I'm still a little hazy as to the ROHH strategy. I don't understand what it means to reserve rooms 'outside' the hotel. I also feel the same for the ROB strategy. What does it mean 'outside' the block? By the way I forgot to post the actual questions. Sorry about that. Attachments This post contains an attachment. You must be logged in to download/view this file. Please login or register as a user. ### GMAT/MBA Expert DavidG@VeritasPrep Legendary Member Joined 14 Jan 2015 Posted: 2301 messages Followed by: 115 members Thanked: 1069 times GMAT Score: 770 Tue Jan 27, 2015 8:00 pm Can you repost the question with a fresh image? (Half of the text was cut off in this one.) In the meantime, here's what the two strategies entail: ROB: registering outside the block means registering at the same hotel, but at a lower rate than you'd have to pay if you registered 'in block.' Say, for example, that you were attending a conference hosted at the Asiawest center. If you're staying "in block" you're paying 190. If you employ the ROB strategy, you're grabbing a room at the same hotel for the discounted price of 185. ROHH: Here the strategy is to get a room at another hotel altogether. So even if your conference were being hosted at the Asiawest center, you might stay at, say, the Hilton, and pay only$70.

In sum: ROB: staying in the host hotel, but at a cheaper rate. ROHH: finding a different (and cheaper) hotel altogether.

Make sense?

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datonman Senior | Next Rank: 100 Posts
Joined
28 May 2014
Posted:
53 messages
Tue Jan 27, 2015 8:44 pm
Hello,

thanks for responding. Yes it makes a bit more sense. To answer your question, the question in the image is the same as what I posted in my first post above in italics.

### GMAT/MBA Expert

DavidG@VeritasPrep Legendary Member
Joined
14 Jan 2015
Posted:
2301 messages
Followed by:
115 members
Thanked:
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GMAT Score:
770
Wed Jan 28, 2015 7:12 am
Well, let’s evaluate hotel by hotel.

First, we have Asiawest. They seem to be holding three conferences: CDA, QRTA, and RCD. For this hotel, the block rate (190 or 195 is so close to their lowest rate that it’s hard to imagine them losing money if the conference is going to be reimbursing them 25% for vacant rooms, but let’s do the math anyway, for clarity’s sake.)

Per guest, Asiawest stands to get 190 for its block rate for the CDA concert. For two nights, that means 190*2 = 380 per guest. If that guest employs the ROB strategy, he’ll pay 185 per night, or 185*2 = 370 for the weekend. So Asiawest is losing $10 (380-370) if the guest employs the ROB strategy. But the conference is giving Asiawest 25% of the original block rate to compensate for this, so they’ll get .25*380 = 95 back. Therefore, Asiawest stands to actually make money in this scenario. They lose 10 from the ROB strategy and get back 95 as compensation. (per guest.) (They also host the QRTA and the RCD conferences. Here the Block rate minus in-Block rate is slightly larger, but still not enough to offset that 25% reimbursement.) So here we have a NO. On to the Bard Inn! Well, the Bard Inn doesn’t have any gap at all between their Block rate and their non-Block rate, so we can just eyeball this one and say NO, they won’t lose money if anyone opts out of the Block rate. [And why would they? They’d be paying the exact same price!] Again NO. Last, we have the Hilton. Let’s look at the FFNA conference, because that has the largest Block to non-Block gap. If someone stays at the hotel at the block rate, they’ll pay 140*2 = 280 for the weekend. If they use the ROB strategy, they’ll pay 70*2 = 140, for a net of 280 - 140 - 140. So that’s what the hotel loses. If the conference gives them 25% of the block rate, they’ll get back .25*280 = 70. So they’re forgoing 140 in revenue and getting back a measly$70 from the conference. Clearly, they’re losing out here, so the answer is YES.

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