The Cost of an Empty Hotel Room

Written by Studio AM.

A hotel room can be sold for one night only once. If it stays empty on Tuesday, the hotel cannot save that Tuesday night and sell it on Friday. The chance is gone.

This makes a room different from a canned drink. An unsold drink can remain on a shelf. An empty room still creates costs. The building needs cleaning, staff, heat, repairs, and insurance.

Hotels may lower prices when many rooms are open. A smaller payment can be better than no payment. But a very low price may not cover the extra cleaning and service for one guest. Managers therefore balance two risks: leaving a room empty and selling it for too little. Time makes the choice disappear at dawn.

Questions

Choose an answer. The explanation appears after you answer.

  1. Question 1 of 4

    What is the main idea of the passage?

  2. Question 2 of 4

    Why might a hotel lower a room price?

  3. Question 3 of 4

    What does “balance” mean here?

  4. Question 4 of 4

    What can remain on a shelf if it is not sold?

Score: none answered yet.

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