You are to assume the role of a hotel booking agent for CARDINAL SUITES, a hotel chain with 1,000 properties across the nation. A new employee (judge) has asked you to explain the reasons why the properties do not have the same pricing. As hotel booking agents, you and the new employee (judge) help customers over the phone make reservations at all of the CARDINAL SUITES locations. CARDINAL SUITES has locations in large metropolitan areas, small communities, near airports, off the freeway and in tourist destinations. The properties are all suites, but some rooms have extra amenities such has whirlpool tubs, private balconies and sofa sleepers.

The new employee (judge) has completed training and knows how to reserve rooms for all of the CARDINAL SUITES properties, but does not understand why room rates differ based on location, occupancy rate and amenities.

You will explain the different factors that affect room rates to the new employee (judge) in a role-play to take place at the front desk. The new employee (judge) will begin the role-play by asking you about the different room rates. After you have given the new employee (judge) an explanation and have answered the new employee’s (judge’s) questions, the new employee (judge) will conclude the role-play by thanking you for your work.

Must complete the following: (The answer should be a minimum of 600 words)

1. Distinguish between economic goods and services.

2. Describe the functions of prices in markets.

3. Explain the principles of supply and demand.

4. Explain the concept of competition.

5. Is there any one factor that plays a more significant role in determining room rates?

6. If occupancy rates are high, why would we continue to give discounts to military, senior citizens, and loyalty program members?