The expenses related to sponsoring a conference can be immense. An org

Thanks a lot for your reply !! Can you also pls explain how yes for HMHPA ?

What would be even better, is if you post the solution to HMHPA. You can use my previous post as a template. You'll benefit more by doing this than by simply reading my solution.

HMHPA


Savings from Discounted Registration: $25
Savings per day if implementing ROB:
The savings would then be: $104 - $79 = $25 for one day
The saving for two days would be: $50

A study has shown that if this registration discount is equal to at least half the potential savings of an attendee's particular cost-saving strategy, the attendee is much more likely to reserve a room within the block.

half of $50= $25 which is equal to Savings from Discounted Registration .

So it is No for HMHPA . Am I not correct ?

Your logic is sound but read the question once again. It is asking whether a person would spend less by using the ROB. The answer is yes, because $50>$25.

Now lets change the question.

Is an HMHPA attendee likely to stay in the block or to use the ROB?
Then the answer would be: the attendee would most likely stay in the block because the registration discount is equal to at least half the potential savings in the ROB strategy.

So basically, the question is simply asking which number is greater, not about the likelihood of an attendee staying within the block. Hope this makes sense!

ARTICLE
The expenses related to sponsoring a conference can be immense. An organization sponsoring a conference can recoup these expenses through registration fees and
partnership with the host hotel. As part of the partnership, the host hotel sets aside a block of rooms for conference attendees, with rooms available at a slightly higher-than-normal rate.
While most conference attendees prefer to stay in the host hotel, they often follow an alternate strategy to avoid the extra cost of reserving a room within the block at the host hotel. Some attendees reserve rooms outside the host hotel—the ROHH strategy. Others reserve rooms outside the block— the ROB strategy.

Conference sponsors have succeeded in countering these strategies by increasing the conference registration fee by a fixed amount and then offering an equivalent registration fee discount to attendees who reserve rooms in the block. A study has shown that if this registration discount is equal to at least half the potential savings of an attendee's particular cost-saving strategy, the attendee is much more likely to reserve a room within the block.


Weekend Conferences

Ten conferences are scheduled for the same weekend in City X. For each conference, the table lists the conference sponsor, the registration fee, the discounted registration fee (if any), the host hotel, the rate for rooms in the block at the host hotel, and the lowest rate for an available room in the host hotel during that
same weekend. Conference attendees will require two nights lodging, and all room rates are per guest, per night, assuming two guests per room. The lowest rate for an available room in City X on this same weekend is $65.

Sponsor - AMG
Registration fee - $225
Discounted registration fee - $150
Host hotel - Garden Inn
Block rate - $120
Lowest rate in host hotel $65

MY QUESTION

I'm struggling to understand how to calculate the cost for ROB and ROHH strategiers. So according to the article then the Discounted registration fee is for those who apply ROHH strategy. But then how do I calculate the cost for ROB strategy? I dont have the price per rooms outside the block in the information provided.

This question has already been discussed please follow the link below

https://gmatclub.com/forum/the-expenses ... 35390.html

ALWAYS search before posting new topic

Regards

Thank you for your answer! I've reviewed the previous post, but still I dont understand when is Discounted Fee is used and why. The problem is not with calculations but rather with reasoning, I just dont understand why.

3. Assume that host hotels receive a reimbursement from the conference organizers for 25% of the block rate per night for each unoccupied room in the conference block. For each of the following hotels, select Yes if, for at least one conference on the weekend listed, the hotel would lose room revenue if a room in the block is vacant because an attendee employed the ROB strategy. Otherwise, select No.

Can someone explain the reasoning of this question to me? Why are we using the ratio of the Lowest rate in host hotel to the Block rate ?

In Question 3,

Hotel Asiawest Centre, in a conference sponsored by CDA, will the hotel lose the following under ROB Strategy -

1) {$450 + 2($185) + 2*(0.25)(190)} - {$400 + 2($190)}
2) {$450 + 2($185) + 2*(0.25)(190)} - {$400 + 2($190)} - 2($190) (Assuming that the hotel cannot rent out the blocked room to a non-attendee)

The solution says (1) is the answer. I believe the answer should be (2) because it considers the opportunity cost.

For the question "Assume that host hotels receive a reimbursement from the conference organizers for 25% of the block rate per night for each unoccupied room in the conference block. For each of the following hotels, select Yes if, for at least one conference on the weekend listed, the hotel would lose room revenue if a room in the block is vacant because an attendee employed the ROB strategy. Otherwise, select No.", why don't they count in registration fee?

Dear elle089,
concerning the question:

I'm struggling to understand how to calculate the cost for ROB and ROHH strategiers. So according to the article then the Discounted registration fee is for those who apply ROHH strategy. But then how do I calculate the cost for ROB strategy? I dont have the price per rooms outside the block in the information provided.

Where have you fond the phrase "Discounted registration fee is for those who apply ROHH strategy" is for ROHH ?

Take into consideration the question stem:
Q1. For each of the following sponsors, select Yes if an attendee of the sponsor's conference would spend less money by employing the ROB strategy -- paying the lowest possible room rate in the host hotel and paying the nondiscounted registration fee -- than by reserving a room in the block. Otherwise, select No.

paying the lowest possible room rate in the host hotel is last column in the table called "Lowest Rate....".

Hence,
1. CC: Reg. Fee - Discount Fee + 2 days*(Bloc Rate - Lowers Rate for Waterfront) = 100 -80 = 20$ - surplus of ROB strategy.
Alternatively, Reg. fee + 2 days*(Lowers rate) - Discount Reg fee + 2* Block rate
720 + 140 - 620 + 220 = 860 - 840 = 20$ surplus in case of ROB strategy.

Similarly for FFNA & HMHPA.

Yet, I was bewildered by the phrase:
Conference attendees will require two nights lodging, and all room rates are per guest, per night, assuming two guests per room

We can treat it as following 2 nights * 1 guest * 2 (because 2 guests per room), leading to wrong computation:-)

Dear Sajjad1994
could you fix the QA Spoiler in the question stem Q3:
The answers are N; N; Y.

Edited! Thank you.

Dear Experts, KarishmaB AndrewN RonTargetTestPrep @ReedArnorldMPREP

I read all comments and read the passage 3 times.

I can not understand what the ROHH and ROHH's formula are and what the ROB and the ROB's formula are..

Could you please provide some guides here?


Also, I am wondering Q3

Why is the registration fee not counted?

If the registration is counted, the answer will be No ; No ; No

ROHH - Reserve room outside Host Hotel (when an attendee reserves a room outside the host hotel). The attendee could pay a much lower price for example someone attending the conference sponsored by AMG could book a room in Hilton (instead of Garden Inn) for $70 and save $120 - $70 = $50.

ROB - Reserve room outside Block (When an attendee reserves a room in the host hotel but not in the block reserved for conference attendees). An attendee attending the conference sponsored by AMG could book a room in Garden Inn but not in the block and hence pay only $65.

As for question 3, note that the hotel doesn't get the registration fee. It is the organisation that gets it.
An organization sponsoring a conference can recoup these expenses through registration fees and partnership with the host hotel. As part of the partnership, the host hotel sets aside a block of rooms for conference attendees, with rooms available at a slightly higher-than-normal rate.

[/quote]

Dear Sajjad1994,

I think the saving should be 2(X-Y) - (Regis Discount), then according to the study cited in the article, Regis Discount >= 1/2[2(X-Y) - (Regis Discount)] => Regis Discount >= 2/3(X-Y)

-> Ans is C

Hello KarishmaB Mam,
For question no.3 part (1) i.e. "Asiawest Center" as it can be seen from the table that Block rates for all the 3 conferences held in Asiawest Center are greater as compared to Room Outside the block rate(ROB) , so the conference organizers would definitely have to pay the reimbursement. - Yes
But the official answer is No.
How ? Kindly Elaborate.

Note what the question tells us: Assume that host hotels receive a reimbursement from the conference organizers for 25% of the block rate per night for each unoccupied room in the conference block.

Look at CDA conference - Asia west center Block Room - $190, ROB - $185
So if someone doesn't take the Block room but opts for ROB for $185, the CDA pays the hotel 25% of the Block room cost i.e. around $50. So the hotel gets $185 from ROB and another almost $50 from CDA and hence the hotel does not lose money.
Answer 'No'