Sales targeting and bid-price control at the Waves of Nazaré

Isabel Pereira, the General Manager of the Waves of Nazaré, a small-sized hotel in the homonymous coastal town in Portugal, reads a weather forecast predicting excellent surfing conditions in the area, and she is sure that this will attract tons of surfers and surf-admirers to Nazaré, Europe's surfing paradise. With anticipated demand likely exceeding the hotel's capacity, and with prices more or less determined by competition in the local market, Isabel has to set sales targets for the various accommodation packages in a way that maximizes the hotel's profitability; as well as determines "bid prices" that will help her manage special reservation requests from partner websites. The clock is ticking, the demand has already started arriving, and Isabel needs to make decisions.