Early in 2005 skiing season, the LaVilla hotel Association considered free dining for people on their first day in the village. LHA estimated that first-day free dining would raise hotel occupancy to 85% (1020 people) but length of stay would still be at 5 days and average restaurant spending, after day 1 would generate profit of $30 per person, per day. The average hotel profit for room only is $100 per person per day. Considering at 80% occupancy per day (960 people) in 2004, with restaurant generating $50 profit on first day and $30 for each additional day, with an average of 5 days. Was the free dinner, to increase occupancy a good idea?
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