Question

The hotel manager received an offer to hold the local bikers' club annual meeting at the hotel in march, which is the hotel's low season with an occupancy rate of under 50%. the bikers' club would reserve 45 suites for three nights if the hotel could offer a 50% discount, or a rate of $100 per night. the hotel manager is inclined to reject the offer because the cost per suite per night is $125.

Answer 1

Given that this is the hotels low season, and this would be a definite increase in income that the hotel would not normally get, the hotel manager should accept. 45 suites at $100/ night for 3 nights is a nice $13,500. That would be a nice profit in their low season.