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  • E 01 M 1 Rentals

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    The document summarizes rental rates for a beachfront guest house with studio apartments, 1 bedroom suites, and 2 bedroom suites. During peak periods, 2 bedroom suites generate the most maximum revenue at $450 per day. Off-peak, 1 bedroom suites generate the most at $174 per day. The rates are lower off-peak to incentivize rentals when occupancy is lower. For 2 bedroom suites to match the 1 bedroom off-peak maximum revenue, the daily rate would need to be $248.

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    The document summarizes rental rates for a beachfront guest house with studio apartments, 1 bedroom suites, and 2 bedroom suites. During peak periods, 2 bedroom suites generate the most maximum revenue at $450 per day. Off-peak, 1 bedroom suites generate the most at $174 per day. The rates are lower off-peak to incentivize rentals when occupancy is lower. For 2 bedroom suites to match the 1 bedroom off-peak maximum revenue, the daily rate would need to be $248.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    6 views1 page

    E 01 M 1 Rentals

    Uploaded by

    buyonline shopping
    The document summarizes rental rates for a beachfront guest house with studio apartments, 1 bedroom suites, and 2 bedroom suites. During peak periods, 2 bedroom suites generate the most maximum revenue at $450 per day. Off-peak, 1 bedroom suites generate the most at $174 per day. The rates are lower off-peak to incentivize rentals when occupancy is lower. For 2 bedroom suites to match the 1 bedroom off-peak maximum revenue, the daily rate would need to be $248.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    of 1

    Beachfront Guest House

    Effective May 1, 2021

    Peak Rentals Off-Peak Rentals


    Rental Type No. Units Daily Rate Maximum Daily Rate Maximum Discount Rate
    Studio Apartment 6 149.95 116.05
    1 Bedroom Suite 4 250.45 174
    2 Bedroom Suite 2 450 247.55

    Questions & Answers


    Assume all 12 units are rented as you answer the following questions:

    (1) Which rental type generates the most maximum revenue for peak rental periods?

    (2) Which rental type generates the most maximum revenue for off-peak rental periods?

    (3) Why is there a difference?

    (4) How much would the 2 Bedroom Suite Off-Peak per day rate need to be to have the same
    off-peak maximum revenue as the 1 Bedroom Suite?

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