Dear
vikram4689,
You're right, this is a difficult convoluted question.
So, Question #2
If the attendee stays in one of the blocked rooms, he/she pays the blocked room fee: that's what the hotel receives. If the attendee employees the ROB strategy, he/she pasy only the fee for the cheapest room in the hotel, but the conference pays 25% of the block room rate for each night --- the hotel receives that sum.
For example, at the
Asiawest Center.
Person staying in block pays
2 nights at $190 = $380 (or 2 nights at $195 = $390)
Person employing the RBO strategy pays
(2 nights at $185) + 2*(25% of $190) = way more than $380 (or, way more than $390)
So, the Asiawest Center does not lose revenue if the attendee employees the ROB strategy. Not surprising, because the cost for the block rooms and the ROB are very close. Answer =
NO
Now, at the
Bard Inn:
Person staying in block pays
2 nights at $125 = $250
Person employing the RBO strategy pays
(2 nights at $125) + 2*(25% of $125) = way more than $250
So, the Bard Inn does not lose revenue if the attendee employees the ROB strategy. Answer =
NO
Now, the
Hilton. Consider the CC conference.
Person staying in block pays
2 nights at $110 = $220
Person employing the RBO strategy pays
(2 nights at $70) + 2*(25% of $110) = $140 + $55 = $195, which is less than $220.
So, the Hilton loses revenue for at least one conference if the attendee employees the ROB strategy. Answer =
YES
Does all this make sense? Let me know if you have any further questions.
Mike
