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1) Many travelers increasingly book their hotel rooms via the Internet (including at hotel-specific websites and through distribution channels). When you shop for a room online, list two things that specifically attract you to select a hotel. Explain why these things matter to you and how you search for hotels.
2) Also, some consumers feel hotel room rates should be mostly static (unchanged) and should not be increased when room demand is high. Why do you think they feel that way? What would you say to a regular guest who complains that the rate she sees online is 30% higher than the rate she paid for that same room on her last visit to your hotel?
Assume you are the GM for a 400-room San Jose Airport Inn located near the San Jose International Airport (a busy airport in a metropolitan city). You have been contacted by an airline and asked to bid on a contract to have your hotel house the pilots and flight attendants who stay overnight in San Jose.
The airline crew would occupy 20 rooms per night every day of the year. The airline has informed you that they are willing to pay a room rate that is one-half of your current year-to-date ADR.
List and describe at least three critical factors you would consider before deciding if the airline contract would be suitable for the hotel. Explain why these details matter to your decision.
Explain what conditions might convince you to tell your revenue manager to make the bid. Discuss your reasoning in detail.
Explain what considerations might convince you NOT to have your revenue manager bid on this contract. Discuss your reasoning in detail.
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