1. Holusha, Filling the Last Rooms, For Pure Profit, 2005 (Price Strategy)

1. Holusha, Filling the Last Rooms, For Pure Profit, 2005 (Price Strategy)

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Filling the Last Rooms, For Pure Profit By JOHN HOLUSHA Published: December 25, 2005 LAST summer, a group of New York hotels came up with a promotion that used the tagline  ''Take the Grandkids, Leave the Parents.'' It was offered when parents were presumably  working and grandparents were ready and willing to go on vacation.  More important, it came in July, one of the slow times in the New York hotel business.  Despite a soaring occupancy rate over all, there are times when rooms go unoccupied -- and  in the hotel business, there is a big incentive to fill those last rooms. Once fixed costs have  been met, almost all the revenue from renting an additional room falls to the bottom line as  profit.  ''There are two periods when New York is soft: January and July,'' said Vijay Dandapani, the  chief operating officer of Apple Core Hotels, the group of five moderately priced hotels in  Midtown that ran the promotion aimed at grandparents.  It is not surprising that hotel rooms are more readily available at those times. ''In January,  the weather is cold and people are recovering from the holidays,'' said Mr. Dandapani, who is  also the chairman of the Hotel Association of New York City. In July, tourism drops a bit  because there is greater interest in the beach.  The promotion was based on both calendar and social factors, he said. ''Grandparents today  are healthier and better off financially than in the past,'' he said. ''They want to do more for  their grandchildren than just leave money for college.''  One way for the generations to bond is to visit New York and to tour famous attractions. For 
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This note was uploaded on 11/02/2011 for the course MARK 11420 taught by Professor Cox during the Fall '11 term at University of Houston.

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1. Holusha, Filling the Last Rooms, For Pure Profit, 2005 (Price Strategy)

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