You are the general manager for Hotel Jolie, a new luxury hotel set to open soon. Hotel Jolie is a deluxe family hotel resort located in a mountainous area that offers services and amenities for adults traveling with children of all ages.
Hotel Jolie offers 5-star accommodations. Each guest suite is equipped with baby and child accessories, furnishings and bedding, large couches, extra-large showers and bathtubs, and bookshelves full of children’s literature. The hotel has outdoor play areas, an interactive animal farm, several swim areas that are toddler and baby friendly, a climbing wall, hiking trails, bicycles and strollers. The eight restaurants all accommodate a “fresh for little menu” that offers a variety of organic homemade foods for babies and toddlers.
There are also plenty of services and amenities geared toward adult guests such as a spa, fitness center, several lounges, an adults-only pool, advanced hiking trails, cooking classes and skiing in the winter months.
The owner has tentatively set room rates at $950-$1500/night depending on the season, number of guests and room type.
The owner of the hotel is excited to be adding a new service. Hotel Jolie plans to offer babysitting services, hiring a staff that will be referred to as nannies, to care for groups of children. The children will be cared for in age groups: 0-3 years old and 4 years and older. The staff of nannies will not only provide care and safety but also arts and crafts, activities around the property and playtime. The on-site babysitting will be available from 9:00AM to 9:00PM daily.
The owner wants you to determine how to best price the babysitting service by designing two pricing structures: one that is bundled into the room rate and another pricing structure that can be an optional add-on per child.






