The Cost of an Empty Hotel Room
Written by Studio AM.
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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.
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Questions
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Question 1 of 4
What is the main idea of the passage?
The answer is C: A hotel balances price and costs because an unsold night cannot be stored for later sale.
The passage explains the room’s expiring sales chance and the limits on discounting.
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Question 2 of 4
Why might a hotel lower a room price?
The answer is D: A smaller payment may be better than leaving the room empty.
The final paragraph compares some payment with none when rooms remain open.
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Question 3 of 4
What does “balance” mean here?
The answer is A: weigh two competing risks
Managers compare the cost of emptiness with the cost of selling too cheaply.
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Question 4 of 4
What can remain on a shelf if it is not sold?
The answer is B: a canned drink
The second paragraph contrasts a stored drink with an expiring room night.
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