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Should a hotel in Bangkok raise its prices?
The prompt
An illustrative 300-room hotel in Bangkok runs at 75 percent occupancy with an ADR of THB 4,000. Each occupied room night costs THB 600 in cleaning, laundry, amenities, and energy. Management thinks a 10 percent price increase would lower occupancy to 70 percent. What are RevPAR and yearly rooms revenue today, and does the price increase raise profit?
Your interviewer will share data as you ask for it. Ask clarifying questions, state a hypothesis, then lay out your structure out loud before you calculate.
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