Pros: Helps hotel to achieve 100% occupancy, Maximize expected venue, Long term revenue and profit increase, low risk method to increase profitability and Compensation are cheaper than leaving a room empty
Cons: loss of hotel reputation, alternative arrangement for guests might be more expensive, may revive negative review online ,
The purposeful and deliberate act of overbooking runs counter to any acceptable standard of ethical business practice. In addition to the practice being ripe with serious legal, contractual and consumer protection violations, overbooking forces hospitality personnel into making conscious immoral and unethical choices.
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
False
It’s it’s too good to be true then theirs a catch which makes the deal worse
Answer:
sale price is $0.78
Explanation:
Given data
assets = $10,000,000
rate = 7% = 0.07
Sales volume = 350,000 units per year
Variable costs = $16 per unit
Fixed costs = $1,500,000 per year
to find out
sales price per unit
solution
we find required return that i s
return = asset × rate
return = 10,000,000 × 0.07
return = $700000
so here total cost = Sales volume × Variable costs + fixed cost
put here all these value
total cost = 350000 × 16 + 1,500,000
total cost = $7100000
so now for sale price
sale price = total cost + required return / sale
put all these value
sale price = ( 7100000 + 700000 ) / 10,000,000
sale price is $0.78