A 350-room Caribbean hotel has extremely high demand for its 92 beachfront palapas. It can offer these palapas to guests on a first-come, first-served basis or it can charge the guests a daily rental fee. The question becomes one of the trade-off between revenue maximization and customer satisfaction.
Kimes, S. E. (2006). Palapa politics [Electronic version]. Cornell Hotel and Restaurant Administration Quarterly, 47(1), 75-80. Retrieved [insert date], from Cornell University, School of Hospitality Administration site: http://scholarship.sha.cornell.edu/articles/454/