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Updated on: 25 Sep 2025, 23:40
Originally posted by debabrata44 on 06 Jul 2012, 12:13.
Last edited by Bunuel on 25 Sep 2025, 23:40, edited 23 times in total.
Last edited by Bunuel on 25 Sep 2025, 23:40, edited 23 times in total.
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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 book 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.
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 book 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.
CC: No
FFNA: Yes
HMHPA: Yes
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
95%
(hard)
Question Stats:
52% (03:39) correct
48%
(03:50)
wrong
based on 1137
sessions
History
Date
Time
Result
Not Attempted Yet
ID: 100417
1. 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.
1. 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.
| Yes | No | |
| CC | ||
| FFNA | ||
| HMHPA |
ShowHide Answer
Official Answer
CC: No
FFNA: Yes
HMHPA: Yes
CC: No
FFNA: Yes
PPOA: No
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
45%
(medium)
Question Stats:
76% (02:00) correct
24%
(02:03)
wrong
based on 1268
sessions
History
Date
Time
Result
Not Attempted Yet
2. For each of the following sponsors, select Yes if an attendee of the sponsor's conference would spend less money by employing the ROHH strategy—paying the lowest possible room rate outside the host hotel and paying the nondiscounted registration fee—than by reserving a room in the block at the host hotel. Otherwise, select No.
| Yes | No | |
| CC | ||
| FFNA | ||
| PPOA |
ShowHide Answer
Official Answer
CC: No
FFNA: Yes
PPOA: No
Asiawest Center: No
Bard Inn: No
Hilton: Yes
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
95%
(hard)
Question Stats:
56% (02:49) correct
44%
(02:59)
wrong
based on 1018
sessions
History
Date
Time
Result
Not Attempted Yet
ID: 100418
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.
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.
| Yes | No | |
| Asiawest Center | ||
| Bard Inn | ||
| Hilton |
ShowHide Answer
Official Answer
Asiawest Center: No
Bard Inn: No
Hilton: Yes
Speaker hired by a conference on education to speak about school reform.: No Loss
Room service waiter at the conference hotel whose earnings are primarily from gratuities.: Loss
Salaried front desk manager at the conference hotel.: No Loss
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
5%
(low)
Question Stats:
88% (00:59) correct
12%
(01:27)
wrong
based on 991
sessions
History
Date
Time
Result
Not Attempted Yet
ID: 100419
4. Many individuals stand to benefit financially from attendees at conferences. For each of the following individuals, choose Loss if the individual would likely earn less money if rooms in the conference block are vacant because of attendees using ROHH strategies. Otherwise select No loss.
4. Many individuals stand to benefit financially from attendees at conferences. For each of the following individuals, choose Loss if the individual would likely earn less money if rooms in the conference block are vacant because of attendees using ROHH strategies. Otherwise select No loss.
| Loss | No Loss | |
| Speaker hired by a conference on education to speak about school reform. | ||
| Room service waiter at the conference hotel whose earnings are primarily from gratuities. | ||
| Salaried front desk manager at the conference hotel. |
ShowHide Answer
Official Answer
Speaker hired by a conference on education to speak about school reform.: No Loss
Room service waiter at the conference hotel whose earnings are primarily from gratuities.: Loss
Salaried front desk manager at the conference hotel.: No Loss
\(X-Y\)
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
85%
(hard)
Question Stats:
60% (01:32) correct
40%
(01:37)
wrong
based on 1003
sessions
History
Date
Time
Result
Not Attempted Yet
ID: 100420
5. Let X denote the block rate of the host hotel for a particular conference, and let Y denote the lowest room rate available in the host hotel outside of the conference block. For a conference that requires a two-night hotel stay, which one of the following expressions represents the least amount of discount on the conference registration fee that, according to the article, would be sufficient to deter conference attendees from employing the ROB strategy in choosing accommodations?
5. Let X denote the block rate of the host hotel for a particular conference, and let Y denote the lowest room rate available in the host hotel outside of the conference block. For a conference that requires a two-night hotel stay, which one of the following expressions represents the least amount of discount on the conference registration fee that, according to the article, would be sufficient to deter conference attendees from employing the ROB strategy in choosing accommodations?
| \(\frac{X+Y}{2}\) | |
| \(\frac{X-Y}{2}\) | |
| \(X-Y\) | |
| \(X+Y\) | |
| \(2(X-Y)\) |
ShowHide Answer
Official Answer
\(X-Y\)
AMG
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
25%
(medium)
Question Stats:
83% (01:46) correct
17%
(02:20)
wrong
based on 788
sessions
History
Date
Time
Result
Not Attempted Yet
ID: 100421
6. Assume that all host hotels for the conferences in City X on the weekend indicated have conference block rooms available and that all hotels in City X have rooms available at their lowest rates for the conference weekend. Which one of the following conferences is most likely to have attendees favoring the ROB strategy over the ROHH strategy?
6. Assume that all host hotels for the conferences in City X on the weekend indicated have conference block rooms available and that all hotels in City X have rooms available at their lowest rates for the conference weekend. Which one of the following conferences is most likely to have attendees favoring the ROB strategy over the ROHH strategy?
| AMG | |
| CDA | |
| QRTA | |
| RCD | |
| WWLOP |
13 Sep 2021, 12:43
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Official Explanation
1. 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.
An attendee of the conference sponsored by CC would pay, for registration and a room in the conference block,
$620 + 2($110) = $840
By employing the ROB strategy, an attendee would pay
$720 + 2($70) = $860.
Therefore the attendee would not save money by employing the ROB strategy.
The correct answer is No.
An attendee of the conference sponsored by FFNA would pay, for registration and a room in the conference block,
$275 + 2($140) = $555.
By employing the ROB strategy, an attendee would pay
$325 + 2($70) = $465.
Therefore the attendee would save money by employing the ROB strategy.
The correct answer is Yes.
An attendee of the conference sponsored by HMHPA would pay, for registration and a room in the conference block,
$575 + 2($104) = $783.
By employing the ROB strategy, an attendee would pay
$600 + 2($79) = $758.
Therefore the attendee would save money by employing the ROB strategy.
The correct answer is Yes.
An attendee of the conference sponsored by CC would pay, for registration and a room in the conference block,
$620 + 2($110) = $840
By employing the ROB strategy, an attendee would pay
$720 + 2($70) = $860.
Therefore the attendee would not save money by employing the ROB strategy.
The correct answer is No.
An attendee of the conference sponsored by FFNA would pay, for registration and a room in the conference block,
$275 + 2($140) = $555.
By employing the ROB strategy, an attendee would pay
$325 + 2($70) = $465.
Therefore the attendee would save money by employing the ROB strategy.
The correct answer is Yes.
An attendee of the conference sponsored by HMHPA would pay, for registration and a room in the conference block,
$575 + 2($104) = $783.
By employing the ROB strategy, an attendee would pay
$600 + 2($79) = $758.
Therefore the attendee would save money by employing the ROB strategy.
The correct answer is Yes.
2. For each of the following sponsors, select Yes if an attendee of the sponsor's conference would spend less money by employing the ROHH strategy—paying the lowest possible room rate outside the host hotel and paying the nondiscounted registration fee—than by reserving a room in the block at the host hotel. Otherwise, select No.
CC
For the conference sponsored by CC, an attendee applying the ROHH strategy would save 2($110 − $65) = $90 in room charges and would pay an additional $720 − $620 = $100 on the registration fee. Therefore the attendee would spend an additional $10 by employing the ROHH strategy.
The correct answer is No.
FFNA
For the conference sponsored by FFNA, an attendee applying the ROHH strategy would save 2($140 − $65) = $150 in room charges and would pay an additional $325 − $275 = $50 on the registration fee. Therefore the attendee would spend $100 less by employing the ROHH strategy.
The correct answer is Yes.
PPOA
For the conference sponsored by CC, an attendee applying the ROHH strategy would save 2($105 − $65) = $80 in room charges and would pay an additional $550 − $400 = $150 on the registration fee. Therefore, the attendee would spend an additional $70 by employing the ROHH strategy.
The correct answer is No.
CC
For the conference sponsored by CC, an attendee applying the ROHH strategy would save 2($110 − $65) = $90 in room charges and would pay an additional $720 − $620 = $100 on the registration fee. Therefore the attendee would spend an additional $10 by employing the ROHH strategy.
The correct answer is No.
FFNA
For the conference sponsored by FFNA, an attendee applying the ROHH strategy would save 2($140 − $65) = $150 in room charges and would pay an additional $325 − $275 = $50 on the registration fee. Therefore the attendee would spend $100 less by employing the ROHH strategy.
The correct answer is Yes.
PPOA
For the conference sponsored by CC, an attendee applying the ROHH strategy would save 2($105 − $65) = $80 in room charges and would pay an additional $550 − $400 = $150 on the registration fee. Therefore, the attendee would spend an additional $70 by employing the ROHH strategy.
The correct answer is No.
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.
Asiawest Center
For a hotel to lose room revenue in this scenario, the lowest rate must be less than 75% of the block rate. This will occur when the ratio of the lowest rate to the block rate is less than 0.75.
For the conferences hosted by the Asiawest Center, the ratios are 185/190≈0.97 for the conference sponsored by CDA and 185195≈0.95 for the conferences sponsored by QRTA and RCD. Therefore the Asiawest Center would not lose room revenue.
The correct answer is No.
Bard Inn
For the one conference hosted by Bard Inn—sponsored by PNDA—the ratio is 125/125=1; thus the Bard Inn would not lose room revenue.
The correct answer is No.
Hilton
For the conference sponsored by CC, the ratio is 70/110≈0.64, which indicates that the host hotel, Hilton, would lose room revenue.
The correct answer is Yes.
Asiawest Center
For a hotel to lose room revenue in this scenario, the lowest rate must be less than 75% of the block rate. This will occur when the ratio of the lowest rate to the block rate is less than 0.75.
For the conferences hosted by the Asiawest Center, the ratios are 185/190≈0.97 for the conference sponsored by CDA and 185195≈0.95 for the conferences sponsored by QRTA and RCD. Therefore the Asiawest Center would not lose room revenue.
The correct answer is No.
Bard Inn
For the one conference hosted by Bard Inn—sponsored by PNDA—the ratio is 125/125=1; thus the Bard Inn would not lose room revenue.
The correct answer is No.
Hilton
For the conference sponsored by CC, the ratio is 70/110≈0.64, which indicates that the host hotel, Hilton, would lose room revenue.
The correct answer is Yes.
4. Many individuals stand to benefit financially from attendees at conferences. For each of the following individuals, choose Loss if the individual would likely earn less money if rooms in the conference block are vacant because of attendees using ROHH strategies. Otherwise select No loss.
Speaker hired by a conference on education to speak about school reform
It is more likely that the speaker's compensation is a fixed cost for the sponsors of the conference. There is nothing in the information provided to suggest that the speaker would earn less as a result of attendees using ROHH strategies.
The correct answer is No loss.
Room service waiter at the conference hotel whose earnings are primarily from gratuities
If attendees are employing ROHH strategies, then necessarily they would not be staying in the conference hotel. If this contributes to vacancies in the host hotel as is suggested, then it is likely that fewer people would be ordering room service. Therefore, it is likely that the waiters would earn less.
The correct answer is Loss.
Salaried front desk manager at the conference hotel
Salaries are usually fixed amounts; thus, the front desk manager's salary most likely represents a fixed cost for the host hotel. There is nothing in the information provided to suggest that the front desk manager would earn less.
The correct answer is No loss.
Speaker hired by a conference on education to speak about school reform
It is more likely that the speaker's compensation is a fixed cost for the sponsors of the conference. There is nothing in the information provided to suggest that the speaker would earn less as a result of attendees using ROHH strategies.
The correct answer is No loss.
Room service waiter at the conference hotel whose earnings are primarily from gratuities
If attendees are employing ROHH strategies, then necessarily they would not be staying in the conference hotel. If this contributes to vacancies in the host hotel as is suggested, then it is likely that fewer people would be ordering room service. Therefore, it is likely that the waiters would earn less.
The correct answer is Loss.
Salaried front desk manager at the conference hotel
Salaries are usually fixed amounts; thus, the front desk manager's salary most likely represents a fixed cost for the host hotel. There is nothing in the information provided to suggest that the front desk manager would earn less.
The correct answer is No loss.
5. Let X denote the block rate of the host hotel for a particular conference, and let Y denote the lowest room rate available in the host hotel outside of the conference block. For a conference that requires a two-night hotel stay, which one of the following expressions represents the least amount of discount on the conference registration fee that, according to the article, would be sufficient to deter conference attendees from employing the ROB strategy in choosing accommodations?
For an attendee employing the ROB strategy, the savings on room fees is $X − Y per night. Over two nights, then, the attendee would save $2(X − Y). According to the study cited in the article, a registration discount equal to half of the savings of an attendee’s cost-saving strategy would be sufficient to deter the use of that strategy. Therefore the registration discount should be set at
\(\frac{2(X−Y)}{2} = X−Y\)
The correct answer is C.
For an attendee employing the ROB strategy, the savings on room fees is $X − Y per night. Over two nights, then, the attendee would save $2(X − Y). According to the study cited in the article, a registration discount equal to half of the savings of an attendee’s cost-saving strategy would be sufficient to deter the use of that strategy. Therefore the registration discount should be set at
\(\frac{2(X−Y)}{2} = X−Y\)
The correct answer is C.
General Discussion
macjas
Joined: 09 May 2012
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Location: Canada
Schools: Rotman '15 (A) Schulich '15 (M)
GMAT 1: 620 Q42 V33
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Products:
07 Jul 2012, 18:49
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You need to take into account the savings over TWO days.
CC
Savings from Discounted Registration: $100
Savings per day if implementing ROB:
The savings would then be: $110 - $70 = $40 for one day
The saving for two days would be: $80
So even if this person were to shift to outside the block, he or she would still lose $20 in savings from the discount registration.
Sanity Check:
Total Cost With Discount Registration: $620 + (2 * $110) = $840
Total Cost With ROB Strategy: $720 + (2 * 70) = $860
Same process of analysis for the other hotels..
CC
Savings from Discounted Registration: $100
Savings per day if implementing ROB:
The savings would then be: $110 - $70 = $40 for one day
The saving for two days would be: $80
So even if this person were to shift to outside the block, he or she would still lose $20 in savings from the discount registration.
Sanity Check:
Total Cost With Discount Registration: $620 + (2 * $110) = $840
Total Cost With ROB Strategy: $720 + (2 * 70) = $860
Same process of analysis for the other hotels..
