Lisa is the revenue manager of a 500 room hotel property. Next week-end demand for her rooms will exceed the number of rooms she has available for sale. Which high demand pricing strategy will optimize revenue for her property

Question

Tomas Perkins

Business

18 January, 17:13

Lisa is the revenue manager of a 500 room hotel property. Next week-end demand for her rooms will exceed the number of rooms she has available for sale. Which high demand pricing strategy will optimize revenue for her property

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Answers (1)

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Darian Roach · Answer 1

Lisa should implement a differential pricing strategy.

Explanation:

A differential pricing strategy is basically selling the same product or service to different customers at different prices.

Lisa will be able to charge a higher price to those willing and able to pay for it, and since the demand for rooms is larger than the supply, a shortage will result. So she will be able to allocate the 500 rooms to those customers who value them the most and are willing and able to pay a higher price for them.