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Hotel bookings in Miami are only done through travel websites. In 2011, there were 50,000 fewer hotel room night bookings...

GMAT Critical Reasoning : (CR) Questions

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Hotel bookings in Miami are only done through travel websites. In 2011, there were 50,000 fewer hotel room night bookings then there were in 2010. Hotel owners are blaming the apartment renting service by new website Miami$50 that not only sells hotel room bookings at bargain prices but also allows people to rent out their houses. The website owners dispute the charge stating that they only rented out only 8,000 apartments through their website. They claim that the down economy and not their website is responsible for majority of the decline in hotel room bookings.

Which of the following if true most seriously weakens the Miami$50 owners claim?

A
Miami$50 rents apartments at a much lower price then it rents hotel rooms.
B
Miami$50 rented out at least 8 times as many hotel room nights bookings as apartments.
C
Most apartments in that Miami$50 rented out were rented out multiple times.
D
Miami$50's profit from renting out apartments was higher than it was for renting out hotel rooms.
E
Most of Miami$50's customers preferred renting an apartment to renting a hotel room
Solution

Passage Analysis:

Text from Passage Analysis
Hotel bookings in Miami are only done through travel websites.
  • What it says: All Miami hotel bookings happen through travel websites only
  • What it does: Sets up the context for how the hotel booking market works in Miami
  • What it is: Background information
In 2011, there were 50,000 fewer hotel room night bookings then there were in 2010.
  • What it says: Hotel bookings dropped by 50,000 room nights from 2010 to 2011
  • What it does: Presents the main problem that needs explaining
  • What it is: Statistical fact
  • Visualization: 2010: 100,000 bookings → 2011: 50,000 bookings (50,000 decline)
Hotel owners are blaming the apartment renting service by new website Miami$50 that not only sells hotel room bookings at bargain prices but also allows people to rent out their houses.
  • What it says: Hotel owners blame Miami$50 website for the decline because it offers cheap hotels AND apartment rentals
  • What it does: Introduces one side's explanation for the 50,000 booking decline
  • What it is: Hotel owners' claim
The website owners dispute the charge stating that they only rented out only 8,000 apartments through their website.
  • What it says: Miami$50 owners deny responsibility, saying they only rented 8,000 apartments
  • What it does: Presents the counter-argument with specific data to challenge hotel owners' blame
  • What it is: Website owners' defense
  • Visualization: Hotel decline: 50,000 vs Apartment rentals: 8,000
They claim that the down economy and not their website is responsible for majority of the decline in hotel room bookings.
  • What it says: Website owners blame the bad economy instead of their service for most of the booking decline
  • What it does: Completes their defense by offering an alternative explanation for the decline
  • What it is: Website owners' alternative explanation

Argument Flow:

The passage starts with background info about Miami's hotel booking system, then presents a problem (50,000 booking decline), followed by two competing explanations: hotel owners blame the Miami$50 website, while website owners defend themselves with data and blame the economy instead.

Main Conclusion:

The website owners claim that the down economy, not their website, is responsible for the majority of the decline in hotel bookings.

Logical Structure:

The website owners use two pieces of evidence to support their conclusion: (1) they only rented 8,000 apartments, which seems small compared to the 50,000 booking decline, and (2) there was a down economy that could explain the decline instead.

Prethinking:

Question type:

Weaken - We need to find information that reduces belief in Miami$50 owners' claim that the down economy (not their website) is responsible for the majority of the hotel booking decline.

Precision of Claims

The Miami$50 owners make specific quantitative claims: only 8,000 apartments were rented through their site, and the economy caused the 'majority' of the 50,000 booking decline. The precision lies in these numbers and the causal relationship they're defending.

Strategy

To weaken their claim, we need to show either: (1) their website actually had a much bigger impact than the 8,000 apartments suggest, (2) the economy wasn't actually that bad during this period, or (3) there's evidence directly linking their service to the hotel booking decline in ways they're not accounting for.

Answer Choices Explained
A
Miami$50 rents apartments at a much lower price then it rents hotel rooms.

This tells us about pricing differences between apartments and hotel rooms on Miami$50. While this might explain why people prefer apartments, it doesn't address the core issue of whether their website significantly impacted hotel bookings. The Miami$50 owners could still argue that only 8,000 apartments were rented regardless of price differences, so this doesn't weaken their quantitative defense.

B
Miami$50 rented out at least 8 times as many hotel room nights bookings as apartments.

This actually strengthens the Miami$50 owners' position rather than weakens it. If they rented 8 times as many hotel room nights as apartments (\(\mathrm{8,000} \times \mathrm{8} = \mathrm{64,000}\) hotel bookings), this shows they were actually helping the hotel industry more than hurting it. This supports their claim that they're not responsible for the decline.

C
Most apartments in that Miami$50 rented out were rented out multiple times.

This severely weakens the Miami$50 owners' claim. Their defense relies on the seemingly small number of 8,000 apartments rented. However, if most apartments were rented multiple times throughout the year, the actual impact is much larger. For instance, if each apartment averaged 6 rentals, that's 48,000 rental instances - almost matching the 50,000 hotel booking decline. This shows their website had a much more significant impact than their raw apartment count suggests.

D
Miami$50's profit from renting out apartments was higher than it was for renting out hotel rooms.

Information about Miami$50's profit margins doesn't address whether their service caused the hotel booking decline. The owners could still maintain that regardless of their profit structure, they only facilitated 8,000 apartment rentals, so profit data doesn't challenge their quantitative defense or their claim about the economy being responsible.

E
Most of Miami$50's customers preferred renting an apartment to renting a hotel room

Customer preferences alone don't weaken the claim about causation. Even if customers preferred apartments, the Miami$50 owners could still argue that with only 8,000 apartments rented, their impact was minimal compared to the 50,000 booking decline. Preference doesn't directly challenge their quantitative argument or their claim about the economy's role.

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