Hotel management wants you to develop a package or set of packages to offer to non-hotel residents. They would like to see the profit margin for this package be approximately 40%. The additional profit margin is to cover the additional costs related to outsiders using the facilities. Identify the primary target market you would use for this project. What would you offer and why? Explain the pricing approach and final price you would use for the bundle(s). If you know the customer group has a high level of price sensitivity, what is your concern with this pricing scenario?
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