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In order to promote off-season business, Mt. Dunmore Lodge
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Updated on: 11 Jan 2005, 15:42
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In order to promote off-season business, Mt. Dunmore Lodge made the following "Welcome Back" offer to their winter guests: guests who rent a room for at least a week during ski season can come back during the summer and get 25% off the standard summer price of any room they rent. After the summer passed, the owners of the lodge determined that the majority of their guests had taken advantage of the "Welcome Back" offer and paid the reduced rates. However, they were surprised to find they still managed to rent more rooms at full price than they did at the discount rate.
Which of the following, if true, would explain the surprised finding of Mt. Dunmore Lodge?
(A) Most of the guests who stayed at Mt. Dunmore Lodge during the winter did not stay for a full week.
(B) Those guests taking advantage of the "Welcome Back" discount were more likely to bring their families with them than were those guests who were paying full price.
(C) Some of the guests who received the "Welcome Back" discount also received a 10% rate reduction through their auto club.
(D) In order to pay for the construction of a new gymnasium and a new pool, the owners of the lodge raised their summer prices considerably.
(E) On average, guests who took advantage of the "Welcome Back" discount spent more money at the hotel on additional goods and services than guests who paid full price for their rooms.
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This topic has been closed and archived due to inactivity or violation of community quality standards. No more replies are possible here.
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Originally posted by qhoc0010 on 11 Jan 2005, 10:53.
Last edited by qhoc0010 on 11 Jan 2005, 15:42, edited 1 time in total.
Re: In order to promote off-season business, Mt. Dunmore Lodge
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13 Jan 2005, 04:58
Anyway, OA is (B).
This question is from Kaplan 800. However, their explaination do not really convince me. Even after POE, I still think (B) is correct, but the main point of question is errorous. It said in the stem "majority of their guests had taken advantage of the "Welcome Back" offer and paid the reduced rates". So that means "majority of guests used the offer and paid reduced rates". But think about it, in reality, when you rent a hotel, how many people pay for a room even though there are more than one person in a room? Of course, there should be only ONE person who pay per room. This question COUNTS everybody in a discounted room as "discount guests" who paid. This means everybody paid. MAKE NO SENSE. This question would make more sense like this.
In order to promote off-season business, Mt. Dunmore Lodge made the following "Welcome Back" offer to their winter guests: guests who rent a room for at least a week during ski season can come back during the summer and get 25% off the standard summer price of any room they rent. After the summer passed, the owners of the lodge determined that the majority of their guests had stayed in discounts rooms. However, they were surprised to find they still managed to rent more rooms at full price than they did at the discount rate.
Tell me what you think
Archived Topic
Hi there,
This topic has been closed and archived due to inactivity or violation of community quality standards. No more replies are possible here.
Still interested in this question? Check out the "Best Topics" block above for a better discussion on this exact question, as well as several more related questions.
Thank you for understanding, and happy exploring!
gmatclubot
Re: In order to promote off-season business, Mt. Dunmore Lodge [#permalink]