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Register now and save up to $200 Available with Beat the GMAT members only code • Most awarded test prep in the world Now free for 30 days Available with Beat the GMAT members only code • 5 Day FREE Trial Study Smarter, Not Harder Available with Beat the GMAT members only code • 5-Day Free Trial 5-day free, full-access trial TTP Quant Available with Beat the GMAT members only code • Magoosh Study with Magoosh GMAT prep Available with Beat the GMAT members only code • Free Veritas GMAT Class Experience Lesson 1 Live Free Available with Beat the GMAT members only code • Free Trial & Practice Exam BEAT THE GMAT EXCLUSIVE Available with Beat the GMAT members only code • 1 Hour Free BEAT THE GMAT EXCLUSIVE Available with Beat the GMAT members only code ## conference IR question This topic has 3 expert replies and 2 member replies datonman Senior | Next Rank: 100 Posts Joined 28 May 2014 Posted: 53 messages #### conference IR question Tue Jan 27, 2015 4:02 pm The question asks: Assume that host hotels receive a reimbursement from the conference organizers for 25% of the block rate per night for each unoccupied room in the conference block. For each of the following hotels, select 'yes' if, for at least one conference on the weekend listed, the hotel would lose room revenue if a room in the block is vacant because an attendee employed the ROB strategy, otherwise select 'No.' This one was a doozy to me. Attachments This post contains an attachment. You must be logged in to download/view this file. Please login or register as a user. Last edited by datonman on Tue Jan 27, 2015 8:50 pm; edited 1 time in total ### GMAT/MBA Expert DavidG@VeritasPrep Legendary Member Joined 14 Jan 2015 Posted: 2627 messages Followed by: 117 members Upvotes: 1153 GMAT Score: 770 Wed Jan 28, 2015 7:12 am Well, letâ€™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 itâ€™s hard to imagine them losing money if the conference is going to be reimbursing them 25% for vacant rooms, but letâ€™s do the math anyway, for clarityâ€™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, heâ€™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 theyâ€™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 doesnâ€™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 wonâ€™t lose money if anyone opts out of the Block rate. [And why would they? Theyâ€™d be paying the exact same price!] Again NO.

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: 2627 messages Followed by: 117 members Upvotes: 1153 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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