Hotel bookings in Miami are only done through travel website

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Hotel bookings in Miami are only done through travel websites. In 2011, there were 50,000 fewer hotel room night bookings then there were in 2010. Hotel owners are blaming the apartment renting service by new website Miami@50 that not only sells hotel room bookings at bargain prices but also allows people to rent out their houses. The website owners dispute the charge stating that they only rented out only 8,000 apartments through their website. They claim that the down economy and not their website is responsible for majority of the decline in hotel room bookings.

Which of the following if true most seriously weakens the Miami@50 owners claim?

A. Miami@50 rents apartments at a much lower price then it rents hotel rooms.
B. Miami@50 rented out at least 8 times as many hotel room nights bookings as apartments.
C. Most apartments in that Miami@50 rented out were rented out multiple times.
D. Miami@50's profit from renting out apartments was higher than it was for renting out hotel rooms.
E. Most of Miami@50's customers preferred renting an apartment to renting a hotel room
Source: — Critical Reasoning |

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by deloitte247 » Wed Aug 01, 2018 2:20 pm

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Option A - INCORRECT.
The statement in this option is also one of the reasons why there is a decrease in the number of bookings of hotel rooms on Miami@50 compared to the increase in number of apartment rented on the travel website. Miami @50 rents apartments at a much lower price than it rents hotel rooms.

Option B - CORRECT.
If the claim that ''Miami@50 rented out at least 8 times as many hotel room nights bookings as apartments to customers'' then there would have being an increment in the number of Hotel room bookings compared to the new increase in apartments and also it would have lead to no account on the booked apartment rate because most of the credits would have been on the hotel room bookings.

Option C - INCORRECT.
The claim in this option that, most apartments that Miami@50 rented out were rented out multiple times is true and has lead to a decrease in numbers of booking on hotels.

Option D - INCORRECT.
This option is also one of the reasons why Miami@50 rents of apartment rather than hotel rooms. The profit made from renting out apartments was higher than it was for renting out hotel rooms.

Option E - INCORRECT.
The statement is this option is also a valuable reason for a decrease in the numbers of hotel booking acountable. Most of Miami@50's customers preferred renting an apartment to renting a hotel room.