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Early in 2005 skiing season, the LaVilla hotel Association considered free dining for people on their first day in the village.
Early in 2005 skiing season, the LaVilla hotel Association considered free dining for people on their first day in the village. LHA estimated that first-day free dining would raise hotel occupancy to 85% (1020 people) but length of stay would still be at 5 days and average restaurant spending, after day 1 would generate profit of $30 per person, per day. The average hotel profit for room only is $100 per person per day. Considering at 80% occupancy per day (960 people) in 2004, with restaurant generating $50 profit on first day and $30 for each additional day, with an average of 5 days. Was the free dinner, to increase occupancy a good idea?
