Mr. and Mrs. Louis are planning a trip to visit their grandchildren. Knowing that the Educational Inn is near their destination, they call the hotel to make reservations for a four-night stay (Tuesday through Friday). During the week in question, the Educational Inn is facing high demand for both Tuesday and Wednesday nights, while Thursday and Friday appear to have significantly lower occupancy forecasts. While talking with the Louises, the reservations agent, following management instruction, quotes the hotel’s high rate (the rate applicable to the first night, a high-demand night). Even though they would like to stay at the Inn, the Louises consider the rate too high and decide to stay elsewhere.
Questions: Did management’s policy of quoting the highest to lowest rates serve the best interests of both the Louises and the Inn? What other strategies could have been used?
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