Answer written questions in complete sentences and in accordance with proper APA 6th ed format. Use Excel or tables for the spreadsheets. Specific expectations and requirements are outlined in the Grading Rubric.
Chapter 1/Question 5
When consumer demand for hotel rooms increases, the average selling prices for those rooms typically increase as well. In the foodservice business that has not historically been the case. Fluctuations in consumer demand (e.g., volume differences between high demand Saturday nights and lower-volume Sunday nights) in restaurants do not typically result in menu price changes. Given that both hotels and restaurants are part of the hospitality industry, how do you account for these fundamental differences in approach toward strategic pricing? As a customer, which approach do you believe sends you the better value message? Explain your position.
Chapter 2/Question 1
Assume that you need a single room at an independent (non-branded) hotel such as the Roger Smith Hotel in New York for the first Friday and Saturday night of next month. You will be staying in New York to attend the wedding of a friend. Price the two-night room rates (including all taxes and fees) for your stay by searching the following travel seller’s Web sites: i. www.orbitz.com ii. www.expedia.com iii. www.rogersmith.com iv. www.priceline.com Which site offered the lowest rate for the two nights? Which offered the highest? Calculate the percentage difference between the lowest and highest price you found. Why do you think the prices varied?
Chapter 2/Question 4
Experienced RMs in the hospitality industry know that the price paid (value given up) by their customers buys those customers more than the elimination of their hunger and thirst, or a safe place to sleep at night. If that is so, what exactly are these customers buying? List some of those items that you believe constitute the profit these customers receive in their seller/buyer transactions.
Chapter 3/Question 4
Researchers have found that normally frugal buyers are, when spending others’ money on themselves (Value Formula C), often less cost conscious when purchasing than they otherwise would be. Identify at least three specific hospitality industry-related actions you believe these buyers might undertake that would be considered an alteration of their normal buying behavior. Why is it important that RMs recognize the existence of these types of changed behavior?
Chapter 3/Question 5
In the lodging segment of the hospitality industry, many hoteliers allow front desk and night audit staff to use their own judgment when deciding whether to reduce room rates to ensure room sales to call-in or walk-in customers. As a RM, what specific training regarding prices and value do you believe such staff member should have to aid them in making good decisions regarding the prices they quote? Who within a lodging organization do you believe should be responsible for providing that training?