Resorts thinks best way to sell empty rooms is to raise rates

It makes about as much sense as the 60% penetration that causes 20 minutes per table hour to be spent shuffling.

In the dead of winter that should work out very well for Taj and Showboat. Resorts will be a ghost town. His plan can only work if he can get everyone else on the boardwalk to "fix prices" in an illegal manner.

Originally Posted by Frostbyte

It makes about as much sense as the 60% penetration that causes 20 minutes per table hour to be spent shuffling.

And making rules worse to compete against PA.

Where did this guy go to business school - Pennco Tech, at the other end of the AC Expway?

Originally Posted by bigplayer

His plan can only work if he can get everyone else on the boardwalk to "fix prices" in an illegal manner.

Yeah, presumably, that was the point of making the statement in a public venue. Damn hard to prove price fixing from a public statement.

I have a small scale but similar business in support of hotel style rental units. When the economy tanked and the hospitals stopped hiring temporary staff because of the uncertainty of the regulation changes expected to come with health care reform, I was in a similar situation with bean counters wanting to raise rent when occupancy fell. Their view was they were losing $100 per rental by making sure you get $2000 a month instead of $1900. I told them it was a ridiculous idea and the game was to maximize total revenue not revenue pre rental. Their logic only made sense at 100% occupancy rate. They didn't give me the latitude to land those that wanted to rent but weren't quite comfortable with our rate. I kept track of the renters we lost and after almost 2 years the bean counter cost the company a million dollars and had it on the brink of going under. The bean counter was then out of the loop. It was a struggle but I managed to keep the company from bankruptcy and two years later it is making nice money again. That bean counter advocated raising the rent but only managed to keep it the same.

Resorts has a guy doing the same thing only worse. He wants to raise the rent. He WILL drive that company into bankruptcy so fast unless he tries to maximize total revenue rather than revenue per rental unit. Sometimes I wonder about the guys with the business degrees. They seem to know less than the average high school grad. This is not that complicated. Is this guy purposely trying to drive Resorts into the ground so someone can buy it at a discount. I thought that was illegal.

Originally Posted by ZenMaster_Flash

My spouse has an M.B.A. The majority of those with same lack "common sense".

They may have never worked a day in their lives, or even rented a hotel room !

The M.B.A. degree from most schools are pretty thin when it comes to meaningful substance.

Apparently, there are several Universities e.g. Harvard, where actual bright people study.

I have my MBA and I'd like to think common sense! Hoping I'm one of the "bright people" you mention.

I was in a men’s room stall at Citibank once. Two VPs from the corporate tech office walked in the room discussing a not for publication study on the effectiveness of MBAs at the bank that had just been completed. The conclusion was that hiring MBAs was a waste of money.

Apologies to the MBAs here. My brother graduated with a business degree from Wharton. Then applied to get his MBA. He was told they never accept their own undergrads because it's the same courses.

Seems like I better take it off my résumé...

I think a lot of degrees are worthless. It's about critical thinking and problem solving but most people are woefully unprepared in those categories.

M B A ??? Married But Available???

Or, as Abhijit Bhaduri wrote: http://en.wikipedia.org/wiki/Abhijit_Bhaduri