Question

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

Answer 1

Lisa should implement a differential pricing strategy.

Step-by-step 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.