The expenses related to sponsoring a conference can be immense. An organization sponsoring a conference can recoup these expenses through...
GMAT Multi Source Reasoning : (MSR) Questions
The expenses related to sponsoring a conference can be immense. An organization sponsoring a conference can recoup these expenses through registration fees and partnership with the host hotel. As part of the partnership, the host hotel sets aside a block of rooms for conference attendees, with rooms available at a slightly higher-than-normal rate.
While most conference attendees prefer to stay in the host hotel, they often follow an alternate strategy to avoid the extra cost of reserving a room within the block at the host hotel. Some attendees reserve rooms outside the host hotel -- the ROHH strategy. Others reserve rooms outside the block -- the ROB strategy.
Conference sponsors have succeeded in countering these strategies by increasing the conference registration fee by a fixed amount and then offering an equivalent registration fee discount to attendees who book rooms in the block. A study has shown that if this registration discount is equal to at least half the potential savings of an attendee's particular cost-saving strategy, the attendee is much more likely to reserve a room within the block.
Let X denote the block rate of the host hotel for a particular conference, and let Y denote the lowest room rate available in the host hotel outside of the conference block. For a conference that requires a two-night hotel stay, which one of the following expressions represents the least amount of discount on the conference registration fee that, according to the article, would be sufficient to deter conference attendees from employing the ROB strategy in choosing accommodations?
OWNING THE DATASET
Understanding Source A: Article - Conference Sponsorship Economics
| Information from Dataset | Analysis |
|---|---|
| ""The expenses related to sponsoring a conference can be immense"" |
|
| ""An organization sponsoring a conference can recoup these expenses through registration fees and partnership with the host hotel"" |
|
| ""the host hotel sets aside a block of rooms for conference attendees, with rooms available at a slightly higher-than-normal rate"" |
|
| ""Some attendees reserve rooms outside the host hotel -- the ROHH strategy. Others reserve rooms outside the block -- the ROB strategy"" |
|
| ""Conference sponsors have succeeded in countering these strategies by increasing the conference registration fee by a fixed amount and then offering an equivalent registration fee discount to attendees who book rooms in the block"" |
|
| ""if this registration discount is equal to at least half the potential savings of an attendee's particular cost-saving strategy, the attendee is much more likely to reserve a room within the block"" |
|
- Summary: This article explains how conference sponsors use registration fee discounts tied to hotel block bookings to counter attendee strategies for avoiding premium room rates, with a 50% savings offset being the effective threshold for changing attendee behavior
Understanding Source B: Weekend Conferences - Pricing Table for Ten Conferences
| Information from Dataset | Analysis |
|---|---|
| ""Conference attendees will require two nights lodging"" |
|
| ""all room rates are per guest, per night, assuming two guests per room"" |
|
| ""The lowest rate for an available room in City X on this same weekend is $65"" |
|
| Registration fees range from $225 (AMG) to $995 (RCD) |
|
| Eight conferences offer discounts ($25-$150), two offer ""no discount"" (QRTA, WWLOP) |
|
| Discount amounts range from $25 to $150 |
|
| Hilton hosts 3 conferences (CC, FFNA, PPOA), Asiawest Center hosts 3 (CDA, QRTA, RCD) |
|
| PNDA (Bard Inn) and WWLOP (Perry Pavilion) show identical block and lowest rates |
|
| The specific discount amounts ($25-$150) can be evaluated against potential attendee savings |
|
- Summary: This table provides real-world pricing data for ten concurrent conferences, revealing that while most sponsors use the registration discount strategy described in Source A, implementation varies significantly with discounts ranging from $25-$150 that scale with registration fees, and some venues make certain cost-saving strategies impossible
Understanding Source C: No Source Provided
- Source C contains no data or content to analyze
Overall Summary
- The dataset reveals how conference economics work in practice:
- Sponsors partner with hotels to recoup costs through premium room blocks
- Attendees use ROHH (booking outside the host hotel) or ROB (booking outside the block) strategies to save money
- Most sponsors counter with registration discounts for block bookings, needing to offset only 50% of potential savings to change behavior
- Real data from ten conferences shows this strategy is common (80% of conferences) but not universal
- Certain hotels dominate the conference market and some venues eliminate specific cost-saving options
Question Analysis
- In Plain Terms: For each sponsor (CC, FFNA, HMHPA), determine if paying full registration fee plus the lowest hotel room rate costs less than paying the discounted registration fee plus the block hotel rate
- Key Constraints:
- Compare ROB strategy (full registration + lowest hotel rate) versus block booking (discounted registration + block rate)
- Calculate total cost assuming 2 nights per guest
- Answer is 'Yes' if ROB is cheaper, otherwise 'No'
- Answer Type Needed: Numerical cost comparison and binary yes/no determination per sponsor
Cost Analysis by Sponsor
- The analysis includes registration fees, discounted fees, block rates, and lowest available hotel rates for each sponsor
- Total costs for both strategies can be calculated directly from the provided data
CC Conference
- ROB Strategy: $720 + ($70 × 2) = $860
- Block Booking: $620 + ($110 × 2) = $840
- Difference: ROB costs $20 more than block booking
- Result: NO - ROB is not cheaper
FFNA Conference
- ROB Strategy: $325 + ($70 × 2) = $465
- Block Booking: $275 + ($140 × 2) = $555
- Difference: ROB saves $90 compared to block booking
- Result: YES - ROB is cheaper
HMHPA Conference
- ROB Strategy: $600 + ($79 × 2) = $758
- Block Booking: $575 + ($104 × 2) = $783
- Difference: ROB saves $25 compared to block booking
- Result: YES - ROB is cheaper
Systematic Verification
- Ensured all hotel room costs are calculated for 2 nights as per given rates
- Applied discounted registration fees only for block booking strategy
- Full registration fees used for ROB (lowest rate) calculation
- Verified numeric totals match provided pricing data
- Confirmed final verdicts are logical given cost differences
Final Answer
- CC: No
- FFNA: Yes
- HMHPA: Yes
Article
The expenses related to sponsoring a conference can be immense. An organization sponsoring a conference can recoup these expenses through registration fees and partnership with the host hotel. As part of the partnership, the host hotel sets aside a block of rooms for conference attendees, with rooms available at a slightly higher-than-normal rate.
While most conference attendees prefer to stay in the host hotel, they often follow an alternate strategy to avoid the extra cost of reserving a room within the block at the host hotel. Some attendees reserve rooms outside the host hotel -- the ROHH strategy. Others reserve rooms outside the block -- the ROB strategy.
Conference sponsors have succeeded in countering these strategies by increasing the conference registration fee by a fixed amount and then offering an equivalent registration fee discount to attendees who book rooms in the block. A study has shown that if this registration discount is equal to at least half the potential savings of an attendee's particular cost-saving strategy, the attendee is much more likely to reserve a room within the block.
Weekend Conferences
Ten conferences are scheduled for the same weekend in City X. For each conference, the table lists the conference sponsor, the registration fee, the discounted registration fee (if any), the host hotel, the rate for rooms in the block at the host hotel, and the lowest rate for an available room in the host hotel during that same weekend. Conference attendees will require two nights lodging, and all room rates are per guest, per night, assuming two guests per room. The lowest rate for an available room in City X on this same weekend is $65.
| Sponsor | Registration Fee | Discounted Registration | Host Hotel | Block Rate | Lowest Rate |
|---|---|---|---|---|---|
| AMG | $225 | $150 | Garden Inn | $120 | $65 |
| CC | $720 | $620 | Hilton | $110 | $70 |
| CDA | $450 | $400 | Asiawest Center | $190 | $185 |
| FFNA | $325 | $275 | Hilton | $140 | $70 |
| HMHPA | $600 | $575 | Holiday Inn | $104 | $79 |
| PPOA | $550 | $400 | Hilton | $105 | $70 |
| PNDA | $425 | $400 | Bard Inn | $125 | $125 |
| QRTA | $325 | no discount | Asiawest Center | $195 | $185 |
| RCD | $995 | $895 | Asiawest Center | $195 | $185 |
| WWLOP | $475 | no discount | Perry Pavilion | $155 | $155 |
Article
The expenses related to sponsoring a conference can be immense. An organization sponsoring a conference can recoup these expenses through registration fees and partnership with the host hotel. As part of the partnership, the host hotel sets aside a block of rooms for conference attendees, with rooms available at a slightly higher-than-normal rate.
While most conference attendees prefer to stay in the host hotel, they often follow an alternate strategy to avoid the extra cost of reserving a room within the block at the host hotel. Some attendees reserve rooms outside the host hotel -- the ROHH strategy. Others reserve rooms outside the block -- the ROB strategy.
Conference sponsors have succeeded in countering these strategies by increasing the conference registration fee by a fixed amount and then offering an equivalent registration fee discount to attendees who book rooms in the block. A study has shown that if this registration discount is equal to at least half the potential savings of an attendee's particular cost-saving strategy, the attendee is much more likely to reserve a room within the block.
Weekend Conferences
Ten conferences are scheduled for the same weekend in City X. For each conference, the table lists the conference sponsor, the registration fee, the discounted registration fee (if any), the host hotel, the rate for rooms in the block at the host hotel, and the lowest rate for an available room in the host hotel during that same weekend. Conference attendees will require two nights lodging, and all room rates are per guest, per night, assuming two guests per room. The lowest rate for an available room in City X on this same weekend is $65.
| Sponsor | Registration Fee | Discounted Registration | Host Hotel | Block Rate | Lowest Rate |
|---|---|---|---|---|---|
| AMG | $225 | $150 | Garden Inn | $120 | $65 |
| CC | $720 | $620 | Hilton | $110 | $70 |
| CDA | $450 | $400 | Asiawest Center | $190 | $185 |
| FFNA | $325 | $275 | Hilton | $140 | $70 |
| HMHPA | $600 | $575 | Holiday Inn | $104 | $79 |
| PPOA | $550 | $400 | Hilton | $105 | $70 |
| PNDA | $425 | $400 | Bard Inn | $125 | $125 |
| QRTA | $325 | no discount | Asiawest Center | $195 | $185 |
| RCD | $995 | $895 | Asiawest Center | $195 | $185 |
| WWLOP | $475 | no discount | Perry Pavilion | $155 | $155 |
Article
The expenses related to sponsoring a conference can be immense. An organization sponsoring a conference can recoup these expenses through registration fees and partnership with the host hotel. As part of the partnership, the host hotel sets aside a block of rooms for conference attendees, with rooms available at a slightly higher-than-normal rate.
While most conference attendees prefer to stay in the host hotel, they often follow an alternate strategy to avoid the extra cost of reserving a room within the block at the host hotel. Some attendees reserve rooms outside the host hotel -- the ROHH strategy. Others reserve rooms outside the block -- the ROB strategy.
Conference sponsors have succeeded in countering these strategies by increasing the conference registration fee by a fixed amount and then offering an equivalent registration fee discount to attendees who book rooms in the block. A study has shown that if this registration discount is equal to at least half the potential savings of an attendee's particular cost-saving strategy, the attendee is much more likely to reserve a room within the block.
Weekend Conferences
Ten conferences are scheduled for the same weekend in City X. For each conference, the table lists the conference sponsor, the registration fee, the discounted registration fee (if any), the host hotel, the rate for rooms in the block at the host hotel, and the lowest rate for an available room in the host hotel during that same weekend. Conference attendees will require two nights lodging, and all room rates are per guest, per night, assuming two guests per room. The lowest rate for an available room in City X on this same weekend is $65.
| Sponsor | Registration Fee | Discounted Registration | Host Hotel | Block Rate | Lowest Rate |
|---|---|---|---|---|---|
| AMG | $225 | $150 | Garden Inn | $120 | $65 |
| CC | $720 | $620 | Hilton | $110 | $70 |
| CDA | $450 | $400 | Asiawest Center | $190 | $185 |
| FFNA | $325 | $275 | Hilton | $140 | $70 |
| HMHPA | $600 | $575 | Holiday Inn | $104 | $79 |
| PPOA | $550 | $400 | Hilton | $105 | $70 |
| PNDA | $425 | $400 | Bard Inn | $125 | $125 |
| QRTA | $325 | no discount | Asiawest Center | $195 | $185 |
| RCD | $995 | $895 | Asiawest Center | $195 | $185 |
| WWLOP | $475 | no discount | Perry Pavilion | $155 | $155 |