Problem: You operate a group of hotels which have seen an increase in the amount of reservations. You currently have a staff of 10 people working in the reservations area. You would like to concentrate on providing the guests with an exceptional stay at the hotels, but the cost of a computerized reservation system would reduce the amount of staff which could service the guests. You have to make some decisions on which decision will be best for the business.
Question 1: What relevant and irrelevant information do you need to make this decision?
Question 2: What non-financial information is relevant to make this decision?
Question 3: Explain how your decision will have an affect on your pricing for the hotel?