Originally Posted by SkiAdcock
Is it me or did socrates answer make no sense? How is the competition (aka, Starwood, Hilton) going to 'beat' Marriott if - for example, Boeing, ATT - er, SBC -books the # of rooms they negotiated their discount on?
Sorry I tried to keep it simple without all the details
Say you run a 10 room hotel called "my hotel" and your comp also has a 10 room hotel called "bob's hotel"
Now let's say you sell 5 of your rooms to IBM at $50 and 3 to AT&T at $60 and the last 2 at your "rack" rate of $100 your daily room revenue would only be $630
Now let's say Bob's Hotel sells only 5 rooms but at $140 for a total of $700
Bob's hotel beats the competition in both top line revenue and profit because it's more expensive to have 10 rooms occupied than it is to have 5 rooms occupied
Hope this was more clear