Question

A common room pricing strategy used by hotels is to price each day for which this room can be reserved, as discussed in the lecture. The price of a stay is then the sum of the day prices spanned by the stay (i.s., checkin and checkout dates). Full-service airlines, as you may already know, typically price itineraries. a. Explain the differences between day pricing of hotel rooms and the pricing of airline itineraries

Answer 1

Answer:

Explanation:

The differences between day pricing of hotel rooms and the pricing of airline itineraries can be summarized based on what the product is, what the resource is, and what is being priced.

For Airline,

The product: itineraries

The resource: flight legs used by the itinerary

What is being priced: itinerary (the product).

For Hotel,

The product: multi-day stay

The resource: room on a particular day

What is being priced: room on a particular day (resource). The price of the multi-day stay (product) is the sum of the prices of each particular day (resource).