1)You are working at a hotel in a resort location. The manager says that the hotel must raise the rates in the winter when it has fewer tourists because the cost per room is much higher. How would you respond?

The manager's suggestion will work only when all the hotels in that area increase the prices of rooms during offseason. The manager's suggestion can still work if it is more luxurious than other hotels in that area however that is just an assumption. In the former case, a price increase may drive the limited tourists away to other hotels and the manager's hotel will lose out whatever limited revenue it would have received in the winter season.

Hence, this decision shouldn't be taken without the above considerations. The manager can consult the other hotel managers and discuss his or her suggestions with them.