Seven spring break destinations are offered for spring break tourists

Question

Seven spring break destinations are offered for spring break tourists from Partee University. For each destination, the table lists the plane ticket price, the discounted plane ticket price (if any), the spring break operator, the rate for a waterfront beach house in the block area, and the lowest rate for a waterfront beach house. Spring break traveler groups will require 4 nights of lodging and all beach house rates are per night and per group. All plane ticket prices are also per group of up to six passengers. Each group has no more than six people as there are 6 beds in each beach house. The lowest rate for an available beach house outside of the waterfront is $70.
    Destination    Ticket   Price    Discounted Ticket   Price    Tour   Guide    Block   Rate    Lowest Rate   for Waterfront   
  Miami  $210   $150  Contiki  $100   $70  
  Hawaii  $525   $450  WorldSprings  $140   $115  
  Jamaica  $220   $200  Spring Breakers  $160   $135  
  Cancun  $480  $350  CancunaBreakers  $150   $120  
  Daytona  $200  $170  SpringBling  $135   $100  
  Bahamas  $240   $210  SunFun  $115   $90  
  Puerto Rico  $425   $400  BeachBurn  $200   $150The waterfront beach houses are organized in 3 rows. The spring break company has set aside a block of beach houses (the first row along the waterfront) for its clients; the availability is at a higher-than-normal rate for the waterfront beach houses.

While most spring breakers prefer to stay in beach houses in the waterfront area, they often follow an alternate strategy to avoid the extra cost of reserving a house. Some attendees reserve houses outside the waterfront area - ROWFA strategy. Others reserve beach houses outside the block - ROB strategy - and get a row 2 or row 3 waterfront beach house instead.

Spring break operators have succeeded in curbing the frequency of these alternatives by increasing the plane ticket by a fixed amount and then offering an equivalent plane ticket price discount to spring breakers who book rooms in the front waterfront block. A study has shown that if this plane ticket discount is equal to at least half the potential savings of a spring breaker's particular cost-saving strategy, the spring breaker is much more likely to reserve a beach house within the first row of the waterfront block.

EMPOWERgmatVerbal · Accepted Answer

We can crush these questions swiftly and accurately and outperform other test-takers with strategic and tactical thinking.

Question 1: 
Check out the options. Notice how spread out the options are? That tells you that we can beat other test takers through simple rounding and estimation:
Since the group has 10 people, they need two beach houses. Estimate total costs for lodging and plane tickets without exact calculations:
- Lodging: Block rate (around $150) * 4 nights * 2 houses = around $1200
- Plane tickets: Discounted price (around $350) * 2 groups = around $700
Total cost is roughly $1900, which is closer to option D.
 Answer: D. $1900

Question 2: 
Zoom out, gain perspective on the data. For each destination, simply compare the total costs of ROB and block rate strategies (lodging + plane tickets):
- Cancun: ROB total cost ($120 * 4 + $480) is greater than block rate total cost ($150 * 4 + $330); answer Yes
- Jamaica and Miami have lower ROB total costs; answer No for both
 Answer: Yes for Cancun, No for Jamaica, No for Miami

Question 3: 
Quickly eliminate Daytona, Miami, and Bahamas as their plane ticket discounts are smaller compared to Hawaii or Jamaica. Compare the differences between block rates and lowest waterfront rates for Hawaii and Jamaica. Hawaii's difference ($140 - $115 = $25) is smaller than Jamaica's ($160 - $135 = $25). So, most likely, travelers would favor the ROB strategy in Hawaii.
 Answer: A. Hawaii

Question 4: 
Compare potential loss due to ROB strategy with the reimbursement received by spring break operators (25% of front row block rate):
- Contiki (Miami): Reimbursement ($100) is less than loss due to ROB strategy ($120); answer Yes
- WorldSprings (Hawaii) and SunFun (Bahamas): Reimbursements are greater than losses due to ROB strategies; answer No for both
 Answer: Yes for Contiki, No for WorldSprings, No for SunFun

Question 5: 
Drawing on our skill in looking for patterns or relationships in the data, compare the ratios of price differences for plane tickets and beach houses. For Cancun, the plane ticket price difference ($480 - $330) is greater than the beach house price difference ($150 - $120). This indicates that Cancun's plane ticket discount percentage is higher.
 Answer: No for Miami, No for Hawaii, Yes for Cancun

Question 6: 
Focus on destinations with higher block rates as more likely candidates for ROWFA strategies being more cost-effective. With a quick comparison of total costs (lodging + plane tickets), it becomes clear that all three destinations (Cancun, Daytona, Puerto Rico) have lower costs with ROWFA strategies.
 Answer: Yes for Cancun, Yes for Daytona, Yes for Puerto Rico

Question 7: 
We can just use common sense to analyze how individuals' earnings might be affected by attendees staying outside the waterfront area. Check it out:
- Rap artist: concert location doesn't change; no gain
- Delivery waitress: fewer deliveries; no gain
- Taxi cab driver: increased transportation needs; gain
 Answer: No Gain for Rap artist, No Gain for Delivery waitress, Gain for Taxi cab driver

Question 8: 
More common sense: if the plane ticket discount is equal to or greater than half of potential savings from staying outside the waterfront area (ROWFA strategy), travelers are more likely to choose front row beach houses. With this logic in mind:
- Miami's answer is Yes (discount equals half of potential savings)
- Jamaica and Cancun have lower total costs with ROWFA strategies, so the answer is No for both.
 Answer: Yes for Miami, No for Jamaica, No for Cancun

Bigger GMAT Perspective  
Compare that to the long, non-strategic approach below (to be avoided---the test-writers want to measure accuracy/time so that requires strategic insight, and frequently you can use the options themselves to clue you in). Why do they do this? Anyone can slog through the calculations. These standardized test questions reward strategic and tactical test-takers given the test's time constraints.

Question 1: 
Jill and her friends are planning a 5-day/4-night spring break trip to Cancun. Their group has 10 people, so they will need two beach houses (each beach house has 6 beds).

Step 1: Calculate the total plane ticket price for both groups of travelers (2 groups, each up to six passengers).
Total plane ticket price = Discounted Ticket price * Number of traveler groups
Total plane ticket price = $350 * 2 = $700

Step 2: Calculate the lodging cost for one beach house in the first block of the waterfront area.
Lodging cost = Block rate * Number of nights
Lodging cost = $150 * 4 = $600

Step 3: Calculate the total lodging cost for two beach houses (since there are 10 people, they will need two beach houses).
Total lodging cost = Lodging cost per beach house * Number of beach houses
Total lodging cost = $600 * 2 = $1200

Step 4: Calculate the total cost for Jill and her friends' trip.
Total cost = Total lodging cost + Total plane ticket price
Total cost = $1200 + $700
Total cost =$1900

So, answer choice D. $1900 is correct.

Question 2: 
We need to find out if spring break traveler groups would spend more money by employing the ROB strategy than by reserving a beach house in the first row of the waterfront block for Cancun, Jamaica, and Miami.

For Cancun:
ROB strategy total cost (lodging + non-discounted plane tickets) 
= (Lowest waterfront rate * 4 nights) + Non-discounted plane ticket price
= ($120 * 4) + $480 = $960

Block rate total cost (lodging + discounted plane tickets) 
= (Block rate * 4 nights) + Discounted plane ticket price
= ($150 * 4) + $330 = $930

Since the ROB strategy total cost ($960) is higher than the block rate total cost ($930), the answer for Cancun is Yes.

For Jamaica:
ROB strategy total cost 
= (Lowest waterfront rate * 4 nights) + Non-discounted plane ticket price
= ($135 * 4) + $220 = $760

Block rate total cost 
= (Block rate * 4 nights) + Discounted plane ticket price
= ($160 * 4) + $200 = $840

Since the ROB strategy total cost ($760) is lower than the block rate total cost ($840), the answer for Jamaica is No.

For Miami:
ROB strategy total cost 
= (Lowest waterfront rate * 4 nights) + Non-discounted plane ticket price
= ($70 * 4) + $210 = $490

Block rate total cost 
= (Block rate * 4 nights) + Discounted plane ticket price
= ($100 * 4) + $150 = $550

Since the ROB strategy total cost ($490) is lower than the block rate total cost ($550), the answer for Miami is No.

So, the final answers are Yes, No, and No for Cancun, Jamaica, and Miami respectively.

Question 3: 
We need to find out which destination is most likely to have spring break travelers favoring the ROB strategy over the ROWFA strategy.

Step 1: Calculate potential savings from ROWFA and ROB strategies for each destination.

For Hawaii:
ROWFA savings: (Block rate * 4 nights) + Discounted plane ticket price - ((Lowest rate outside waterfront) * 4 nights + Non-discounted plane ticket price)
= ($140 * 4) + $450 - (($70 * 4) + $525) = $95

ROB savings: (Block rate * 4 nights) + Discounted plane ticket price - ((Lowest waterfront rate) * 4 nights + Non-discounted plane ticket price)
= ($140 * 4) + $450 - (($115 * 4) + $525) = $25

For Jamaica:
ROWFA savings: ($160 * 4) + $200 - (($70 * 4) + $220)=80
ROB savings: ($160 * 4)+$200-(($135*4)+$220)=40

For Daytona:
ROWFA savings: ($135*4)+$170-(($70*4)+$200)=110
ROB savings: ($135*4)+$170-(($100*4)+$200)=30

For Miami:
ROWFA savings: ($100*4)+$150-(($70*4)+$210)=60
ROB savings: ($100*4)+$150-(($70*4)+$210) = 60

For Bahamas:
ROWFA savings: ($115*4)+$210-(($70*4)+$240)=50
ROB savings: ($115*4)+$210-(($90*4)+$240)=10

Among all the destinations, Hawaii has the highest ROB savings ($25) compared to ROWFA savings ($95). Therefore, the answer is A. Hawaii.

Question 4: 
We need to determine if the spring break operator would lose beach house revenue if a room in the block is vacant because a traveler group employed the ROB strategy for Contiki, WorldSprings, and SunFun.

Since spring break operators receive a reimbursement from the waterfront beach housing organization for 25% of the front row block rate for each unoccupied beach house in the front row block of the waterfront area, we will calculate this reimbursement and compare it with potential loss due to ROB strategy.

For Contiki (Miami):
Reimbursement: 0.25 * Block rate * 4 nights = 0.25 * $100 * 4 = $100
Loss due to ROB strategy: (Block rate * 4 nights) - (Lowest waterfront rate * 4 nights) = ($100 * 4) - ($70 * 4) = $120
Since reimbursement ($100) is less than loss due to ROB strategy ($120), Contiki would lose beach house revenue. The answer is Yes for Contiki.

For WorldSprings (Hawaii):
Reimbursement: 0.25 * Block rate * 4 nights = 0.25 * $140 * 4 = $140
Loss due to ROB strategy: (Block rate * 4 nights) - (Lowest waterfront rate * 4 nights) = ($140 * 4) - ($115 * 4) = $100
Since reimbursement ($140) is greater than loss due to ROB strategy ($100), WorldSprings would not lose beach house revenue. The answer is No for WorldSprings.

For SunFun (Bahamas):
Reimbursement: 0.25 * Block rate * 4 nights = 0.25 * $115 * 4 = $115
Loss due to ROB strategy: (Block rate * 4 nights) - (Lowest waterfront rate * 4 nights) = ($115 * 4) - ($90 * 4) = $100
Since reimbursement ($115) is greater than loss due to ROB strategy ($100), SunFun would not lose beach house revenue. The answer is No for SunFun.

So, the final answers are Yes, No, and No for Contiki, WorldSprings, and SunFun respectively.

Question 5: 
We need to determine if the percentage discount on the plane ticket (compared to the original price) exceeds the percentage discount for reserving the lowest rate beach house in the waterfront area (compared to the block rate in the waterfront area) for Miami, Hawaii, and Cancun.

For Miami:
Percentage discount on plane ticket: (($210-$150)/$210)*100=28.57%
Percentage discount on beach house: (($100-$70)/$100)*100=30%
Since plane ticket discount (28.57%) is less than beach house discount (30%), the answer is No for Miami.

For Hawaii:
Percentage discount on plane ticket: (($525-$450)/$525)*100=14.29%
Percentage discount on beach house: (($140-$115)/$140)*100=17.86%
Since plane ticket discount (14.29%) is less than beach house discount (17.86%), the answer is No for Hawaii.

For Cancun:
Percentage discount on plane ticket: (($480-$330)/$480)*100=31.25%
Percentage discount on beach house: (($150-$120)/$150)*100=20%
Since plane ticket discount (31.25%) is greater than beach house discount (20%), the answer is Yes for Cancun.

So, the final answers are No, No, and Yes for Miami, Hawaii, and Cancun respectively.

Question 6: 
We need to determine if a spring break traveler going for the 4-night package would spend less money by employing the ROWFA strategy than by reserving a front row beach house in the block for Cancun, Daytona, and Puerto Rico.

For Cancun:
ROWFA total cost: (Lowest rate outside waterfront * 4 nights) + Non-discounted plane ticket price = ($70 * 4) + $480 = $760
Block rate total cost: (Block rate * 4 nights) + Discounted plane ticket price = ($150 * 4) + $330 = $930
Since ROWFA total cost ($760) is less than block rate total cost ($930), the answer is Yes for Cancun.

For Daytona:
ROWFA total cost: (Lowest rate outside waterfront * 4 nights) + Non-discounted plane ticket price = ($70 * 4) + $200 = $480
Block rate total cost: (Block rate * 4 nights) + Discounted plane ticket price = ($135 * 4) + $170 = $710
Since ROWFA total cost ($480) is less than block rate total cost ($710), the answer is Yes for Daytona.

For Puerto Rico:
ROWFA total cost: (Lowest rate outside waterfront * 4 nights) + Non-discounted plane ticket price = ($70 * 4) + $425 = $705
Block rate total cost: (Block rate * 4 nights) + Discounted plane ticket price = ($200 * 4) + $400 = $1200
Since ROWFA total cost ($705) is less than block rate total cost ($1200), the answer is Yes for Puerto Rico.

So, the final answers are Yes, Yes, and Yes for Cancun, Daytona, and Puerto Rico respectively.

Question 7: 
We need to determine if individuals would likely earn more money if beach houses in the front row block are vacant because of attendees using ROWFA strategies for a rap artist, a delivery waitress, and a taxi cab driver.

Rap artist:
Since the rap artist is hired to throw a concert alongside the waterfront beach houses, their earnings would not be affected by attendees staying outside of the waterfront area. Therefore, there would be no gain for the rap artist. The answer is No Gain.

Delivery waitress:
If more attendees stay outside the waterfront area, it could potentially reduce the number of breakfast deliveries and gratuities for the delivery waitress. Therefore, there would be no gain for the delivery waitress. The answer is No Gain.

Taxi cab driver:
If more attendees stay outside of the waterfront area and require transportation to the waterfront area where vacationers tend to hang out, this could increase business for taxi cab drivers. Therefore, there would be a gain for taxi cab drivers. The answer is Gain.

So, the final answers are No Gain, No Gain, and Gain for Rap artist, Delivery waitress, and Taxi cab driver respectively.

Question 8: 
We need to determine if spring break traveler groups would be more likely to reserve a beach house in the front row of the waterfront block than getting a beach house outside of the waterfront area for Miami, Jamaica, and Cancun.

For Miami:
ROWFA total cost: (Lowest rate outside waterfront * 4 nights) + Non-discounted plane ticket price = ($70 * 4) + $210 = $490
Block rate total cost: (Block rate * 4 nights) + Discounted plane ticket price = ($100 * 4) + $150 = $550
Since ROWFA total cost ($490) is less than block rate total cost ($550), it might seem that the answer should be No for Miami. However, according to the article, if the plane ticket discount is equal to at least half the potential savings of a spring breaker's particular cost-saving strategy, the spring breaker is much more likely to reserve a beach house within the first row of the waterfront block. In this case, the plane ticket discount ($60) is equal to half of the potential savings ($60), so Miami should be Yes.

For Jamaica:
ROWFA total cost: (Lowest rate outside waterfront * 4 nights) + Non-discounted plane ticket price = ($70 * 4) + $220 = $500
Block rate total cost: (Block rate * 4 nights) + Discounted plane ticket price = ($160 * 4) + $200 = $840
Since ROWFA total cost ($500) is significantly less than block rate total cost ($840), and considering that the plane ticket discount of $20 is not at least half of the potential savings of $340, spring break traveler groups would likely choose a beach house outside of the waterfront area. The answer is No for Jamaica.

For Cancun:
ROWFA total cost: (Lowest rate outside waterfront * 4 nights) + Non-discounted plane ticket price = ($70 * 4) + $480 = $760
Block rate total cost: (Block rate * 4 nights) + Discounted plane ticket price = ($150 * 4) + $330 = $930
Similar to Jamaica, since ROWFA total cost ($760) is significantly less than block rate total cost ($930), and considering that the plane ticket discount of $150 is not at least half of the potential savings of $170, spring break traveler groups would likely choose a beach house outside of the waterfront area. The answer is No for Cancun.

So, the final answers are Yes, No, and No for Miami, Jamaica, and Cancun respectively.

maikikiuu · Answer

I got different answer for Q8. According to Article,

A study has shown that if this plane ticket discount is equal to at least half the potential savings of a spring breaker's particular cost-saving strategy, the spring breaker is much more likely to reserve a beach house within the first row of the waterfront block.

So it mean as long as the saving from plane ticket alone exceed 50% of total saving of ROWFA, the group is likely to book beach house.

I got the same answer for Miami and Jamaica, but for Cancun, the saving from plane ticket = 130 (480-350) while ROWFA saving is 190 (+130-(150-70)*4). 130 clearly exceed 50% of 190 so the group is likely to book beach house.

Apt0810 · Answer

1)D,since the total flight price would be 350*2(since there are 10 people so two groups would be formed)+150*4*2(2 groups and 4 nights=1900

2)a)Yes,In Cancun without ROB the price of 1 group for 1 night would be 350+150*4(4 days)=950
While with ROB:120*4+480=960
b)No,In Jamaica without ROB the price of 1 group for 1 night would be 200+160*4=840
While with ROB:220+135*4=760
c)No,In Miami without ROB the price of 1 group for 1 night would be 100*4+150=550
While with ROB:210+4*70=490

3)D,I think the answer should be Miami since the lowest cost for beach house is 70$ and outside is also 70$ so a person would prefer RO B

4)a)In Contiki loss would be there since occupying 2nd row house will cost 70 while for the first row room which is not occupied the owner will get a discount of 25% so final price to him would be 100-100*.25=75,so a loss of 5$ is there
b)In Worldsprings no loss would be there since occupying 2nd row house will cost 115 while for the first row room which is not occupied the owner will get a discount of 25% so final price to him would be 140-140*.25=105,so no loss is there
c)In Sunfun no loss would be there since occupying 2nd row house will cost 90 while for the first row room which is not occupied the owner will get a discount of 25% so final price to him would be 115-115*.25=86.25,so no loss is there

5)a)No,In Miami the % discount on plane is (210-150)/210=28.57
while discount on room in 1st block vs other rows=100-70/100=30
b)No,In Hawai the % discount on plane is (525-450)/525=14
while discount on room in 1st block vs other rows=140-115/140=17.8
c)Yes,In Cancun the % discount on plane is (480-350)/480=27
while discount on room in 1st block vs other rows=150-120/150=20

6)a)Yes,In Cancun Total for 4 nights with RoWFA=480+70*4=760
while occupying first block= 350+150*4=950
b)Yes,In Daytona Total for 4 nights with RoWFA=200+70*4=480
while occupying first block= 170+135*4=710
c)Yes,In Puerto Rico Total for 4 nights with RoWFA=425+70*4=705
while occupying first block= 400+200*4=1200

7)Here only cab driver will not suffer since he is bringing people from outside to inside the beach area in waterfront and if people are not staying inside then the rapper and waiter will not get a chance to perform or serve anyone and thus will have lossess

8)So here in this question only people in Miami they will try to book house in first block beacuse the price difference is lowest among the three choices given in the question as the difference between inside and outside is lowest for Miami = 100-70=30$ ,so the likelihood is also high here that people will book houses inside the first row here

Posted from my mobile device

jaky_nguyen · Answer

Hi  Sajjad1994 ,

IMO, QA of Q1 should be D, please help check it again. Many thanks!

jaky_nguyen · Answer

According to the explanation, I have some concerns:

- "Quickly eliminate Daytona, Miami, and Bahamas as their plane ticket discounts are smaller compared to Hawaii or Jamaica". However, how could plane ticket discounts of Daytona (30), Miami(60), and Bahamas(30) be smaller than plane ticket discounts of Hawaii (75), Jamaica (20) ?

- how would Hawaii's difference ($140 - $115 = $25) be smaller than Jamaica's ($160 - $135 = $25), while both are $25?

Sajjad1994 · Answer

"For Hawaii:
ROWFA savings: (Block rate * 4 nights) + Discounted plane ticket price - ((Lowest rate outside waterfront) * 4 nights + Non-discounted plane ticket price)
= ($140 * 4) + $450 - (($70 * 4) + $525) = $95

ROB savings:  (Block rate * 4 nights) + Discounted plane ticket price - ((Lowest waterfront rate) * 4 nights + Non-discounted plane ticket price)
= ($140 * 4) + $450 - (($115 * 4) + $525) = $25

For Jamaica:
ROWFA savings: ($160 * 4) + $200 - (($70 * 4) + $220)=80
 ROB savings:  ($160 * 4)+$200-(($135*4)+$220)=40"

jaky_nguyen · Answer

"For Hawaii:
ROWFA savings: (Block rate * 4 nights) + Discounted plane ticket price - ((Lowest rate outside waterfront) * 4 nights + Non-discounted plane ticket price)
= ($140 * 4) + $450 - (($70 * 4) + $525) = $95

ROB savings:  (Block rate * 4 nights) + Discounted plane ticket price - ((Lowest waterfront rate) * 4 nights + Non-discounted plane ticket price)
= ($140 * 4) + $450 - (($115 * 4) + $525) = $25

For Jamaica:
ROWFA savings: ($160 * 4) + $200 - (($70 * 4) + $220)=80
 ROB savings:  ($160 * 4)+$200-(($135*4)+$220)=40"

In both cases: ROB savings < ROWFA savings, should ROWFA be more favor?

SnorLax_7 · Answer

EMPOWERgmatVerbal

Kindly note that answer to Q8 is Yes, No, and Yes.
and answer to Q3 should be Jamaica instead of Hawaai.

Please correct me if I am wrong.

Sajjad1994 , kindly can you provide the official explanation of this question ?

nisen20 · Answer

question 3 doesn't make sense. 
 
it means in which city  people save more when employing ROB strategy than employing ROWFA strategy ?

the lodging rate for ROB strategy is ranged from 70 to 135, and the lodging rate for ROWFA strategy is always 70.
ROWFA will always be the winner, except the only draw game in Miami.

why do people still favor ROB over ROWFA?

Purple_Wizard · Answer

EMPOWERgmatVerbal  - thanks for your explanation, however there is a miss in Q8. Firstly, the discounted plane ticket cost is 350$ and not 330$ for Cancun. Next, let us redo the math here -

For Cancun:
ROWFA total cost: (Lowest rate outside waterfront * 4 nights) + Non-discounted plane ticket price = ($70 * 4) + $480 = $760
Block rate total cost: (Block rate * 4 nights) + Discounted plane ticket price = ($150 * 4) + $350 = $950
Similar to Jamaica, since ROWFA total cost ($760) is significantly less than block rate total cost ($950), and considering that the plane ticket discount of  $130 is at least half of the potential savings of $190 , spring break traveler groups would likely choose a beach house within the first row of the waterfront area. The answer should be  Yes   for Cancun (similar to the logic for Miami) .

Sajjad1994  request you to check as well once. And I have a universal question - Why are we considering the lowest rate for waterfront at 70$ and not the amount given against each city? Such questions seem ambiguous, even if it from GMAC OG. Can you please suggest if such Qs are expected in the exam? I spent almost 30 mins on this question trying to decode everything, it is a very complicated one.

Adarsh_24 · Answer

Two issues I have noticed.

1) In official explanation:
"considering that the plane ticket  discount of $150 is not at least half of the potential savings of $170 , spring break traveler groups would likely choose a beach house outside of the waterfront area. The answer is No for Cancun."

I think there is some issue with last question's 3rd part.

2) Question 6 is pasted below. The whole passage is about rates in group of people. The question below asks for a traveller. Im not sure how taht works. Is that a typo?
Or since we divide cost for each using div by 6 on both options. Ratio is the same?

6. For each of the following spring break destinations, select Yes  if a spring break traveler  going for the 4-night package would spend less money by employing the ROWFA strategy -- paying the lowest possible beach house rate outside the waterfront area and paying the non-discounted plane ticket price -- than by reserving a front row beach house in the block. Otherwise, select No.

anand123prk · Answer

The solution to Q No.3 does not make sense. Why would ticket price/discounted ticket price be taken into account whilst comparing ROWFA and ROB strategies? As per my understanding, discounted ticket prices were a part of strategy to curb groups taking the ROWFA/ROB route. Hence, we only need to compare the following:

'lowest rate for an available beach house outside of the waterfront is $70' and 'lowest rate for waterfront for each of the mentioned destinations'

Please correct me if I am wrong.

'lowest rate for an available beach house outside of the waterfront is $70' and 'lowest rate for waterfront for each of the mentioned destinations'

Please correct me if I am wrong.

bb · Answer

I also agree that Q3 answer as Hawaii is not matching the question and either we are misreading the question or the OA was simply given wrong. 
My suggestion is to ignore Q3.

After poking around and investigating, the answer could work to be Hawaii only in these 2 cases. However, neither seems to be supported by the setup: 
1. We treat “at least half” as “strictly greater than half.”
2. Compare the two work‐arounds only to each other, not to the block by looking at the incremental extra savings of ROWFA over ROB.

Dream009 · Answer

MSR were not in GMAT classic so any question tagged as GMAT prep is for official mock? I thought that was only for GMAT prep focus. Can anyone please confirm?

wArrior902 · Answer

According to me, answer to Q3 would be Miami. There's no extra savings in ROWFA, compared to ROB. And people want to prefer choosing house at the river front, so they will most likely choose ROB as for the same amount they're getting the Waterfront houses.

wArrior902 · Answer

No these are from older Gmat classic mocks. They were part of IR.

Puranjaysapra · Answer

Why are we not considering a round trip for airplane prices

Bunuel · Answer

I see your point, however the table’s “Ticket Price” is already the full plane ticket cost per group for the trip. Nothing says it’s one way, so you do not double it for a round trip. If it were one way, the problem would explicitly say “one way” or “each direction.” Here is another very similar official question to practice: https://gmatclub.com/forum/the-expenses ... 35390.html Hope it helps.

Boyoo · Answer

only Miami's figures are correct. Hawaii's ROWFA should be 205, not 95; Jamaica 340/80, not 80/40; Daytona 230/110, not 110/30; Bahamas 150/70, not 50/10. . final line — "Hawaii has the highest ROB savings ($25)" — is contradicted by own table, where $25 is the  lowest  number in that column.

Yes	No
		Rap artist hired to throw a concert alongside the waterfront beach houses.
		Morning breakfast delivery by a delivery waitress at the beach house whose earnings are primarily from gratuities.
		Taxi cab driver bringing guests from outside of the waterfront area to the waterfront area where vacationers tend to hangout.

Yes........	No........	Statements
		Rap artist hired to throw a concert alongside the waterfront beach houses.
		Morning breakfast delivery by a delivery waitress at the beach house whose earnings are primarily from gratuities.
		Taxi cab driver bringing guests from outside of the waterfront area to the waterfront area where vacationers tend to hangout.

Seven spring break destinations are offered for spring break tourists

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My Rewards

Destination	Ticket Price	Discounted Ticket Price	Tour Guide	Block Rate	Lowest Rate for Waterfront
Miami	$210	$150	Contiki	$100	$70
Hawaii	$525	$450	WorldSprings	$140	$115
Jamaica	$220	$200	Spring Breakers	$160	$135
Cancun	$480	$350	CancunaBreakers	$150	$120
Daytona	$200	$170	SpringBling	$135	$100
Bahamas	$240	$210	SunFun	$115	$90
Puerto Rico	$425	$400	BeachBurn	$200	$150

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Seven spring break destinations are offered for spring break tourists

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