Having worked at Delta Airlines and Holiday Inn, I can speak from experience that both the Hotel and Airline industry use the breakeven/CVP analysis as a key way to ensure that they have full hotels and full planes. This will vary based on the time of the year, maybe even the day of the week. The biggest concern is making sure you are maximizing your revenue. When using a CVP analysis, the hardest thing to estimate is your demand. Once you have a good handle on your demand, you can make better decisions. How would you determine how many seats/rooms to send to the wholesale market?
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