Hotel customer flow problem

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Reference no: EM131145890

Hotel Customer Flow Problem..

The V hotel is an upscale independent hotel that caters to both business and leisure travelers. On average, one-third of the guests checking in each day are leisure travelers. Leisure travelers generally stay for 4 nights-twice as long as the average business customer (Assume one guest occupies one room during their stay, and the process is stable, meaning on average the customer incoming rate is equal to the outgoing rate).

On an average day, 135 guests check into the hotel. Calculate the number of each type travelers the hotel receives every day.

Now, consider on average how many guests of each type are in the hotel at any given time? Do business guests account for two-third of the total? Why?

The average business traveler pays a rate of $250 per night, while leisure travelers pay an average rate of $150 per night. What is the average revenue the hotel receives per night?

Reference no: EM131145890

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