Read the key concept case study on page 347.
1. Assume you were on Damario’s RM team. Since the property’s room rates are below the competitive
set’s, what specific additional data would be required to convince you that it would be a good time to raise
your rack rates?
2. Assume you were in favor of increasing the RevPAR target next year by 8 percent. Would you be in favor
of increasing rack rates, reducing discounts offered, or increasing the number of discounted rooms
available for sale? What specific additional data would you want to see before making your decision?