What happens to unsold hotel rooms at the end of the day?

• A. They can be stored for sale later
• B. They are considered an asset
• C. They become a lost revenue opportunity
• D. They increase the hotel's fixed assets

Answer: (C)

Unsold hotel rooms at the end of the day are classified as a lost revenue opportunity because these rooms are time-sensitive assets. Once the day is over, any unsold rooms cannot be sold later for that specific date, leading to a direct loss of potential income. This aspect is crucial in the hospitality industry, where revenue management relies heavily on maximizing occupancy rates and selling available inventory on a per-night basis.

Properly managing this revenue opportunity involves strategic pricing, marketing efforts, and sometimes offering discounts or promotional deals to fill as many rooms as possible before the night concludes. Other businesses might have inventory they can store or resell later, but hotel rooms do not have that luxury; each night represents a unique opportunity to generate revenue that cannot be recaptured once it has passed. Thus, recognizing unsold rooms as a lost opportunity helps hotel managers focus on maximizing revenue and minimizing waste.