Study guides, Class notes & Summaries

Positives of Revenue Management Strategies & Tactics - ANSWER-- Serve more guests - Increase market share - increase revenues & profitability - NOT to motivate employees What is the hurdle rate? - ANSWER-The lowest rate for a given day (T/F) A benefit of variable pricing within RM is the smoothing of demand - ANSWER-True Revenue Management can be defined as... - ANSWER-A set of strategies and techniques used to sell the right product, to the right customer, at the right time and at t...

Identify which of these is not a positive of using revenue management strategies and tactics: - ANSWER-Motivate employees The Hurdle Rate is...? - ANSWER-The Lowest Rate for a Given Day A benefit of variable pricing within revenue management is the smoothing of demand. - ANSWER-True Revenue management can be defined as - ANSWER-A set of strategies and techniques used to sell the right product, to the right customer, at the right time and at the right prices. Revenue management is a s...

What is the industry term used to describe the sum of prices paid by a business's customers? - ANSWER-total revenues Historically, what concept have hospitality managers chiefly used to calculate their selling prices? - ANSWER-costs What is an algebraic equivalent of the formula: Sales = Costs + Profit? - ANSWER-profit=sales-costs What is the name for the net value achieved by both parties in a business transaction? - ANSWER-profit What element is not present in a barter economy? - ...

Occupancy - ANSWER-The percentage of rooms occupied during a given period of time. Average Daily Rate (ADR) - ANSWER-The average rate sold during a given period of time. Revenue Per Available Room (RevPAR) - ANSWER-A metric calculated by multiplying the occupancy percentage by the ADR RevPAR Index - ANSWER-A measure of a hotel's performance against the market by comparing a hotel's RevPAR to the RevPAR of a set of other hotels. Cost Per Occupied Room (CPOR) - ANSWER-The total expen...

Goods-producing industries - ANSWER-agriculture ,mining, manufacturing, and construction; each of them creates some kind of tangible object Service industries - ANSWER-Those businesses that primarily sell their customers intangible goods. Revenue optimization strategies and tactics can be used any time a service business is characterized by: - ANSWER-•Constrained Supply •High Fixed Costs •Variable Demand •Versioning Opportunities •Perishable Inventory •Ability to Manage Di...

Revenue management is a set of revenue maximization strategies and tactics that - ANSWER-can be used to improve the profitability of certain businesses. When the American Airlines CEO developed yield management, what type of information was crucial to its success? - ANSWER-forecasting Which of the following statements about hotel revenue management is FALSE? - ANSWER-Revenue management is new, as are all of the strategies that are employed to maximize profit. Which of the following is N...

Rooms Inventory - ANSWER-All of the unique forms of guest room products offered for sale by a lodging facility. DD Room - ANSWER-The common CRS and PMS code for a guest room containing two full-sized (double or queen) beds Close Out - ANSWER-to remove from sale or to stop selling Room Code - ANSWER-A property-specific, shortened description used to identify a specific room product in a hotel Concierge Floor - ANSWER-An area (often an entire floor) located within a hotel, access to wh...

Demand (consumer) - ANSWER-The number of potential buyers with the interest and ability to purchase the products sold by a business at the specific price offered. Capital Improvement - ANSWER-An addition to a property that will enhance its value or increase its useful life. Examples; roof replacement and the purchase of new furnishings. Historical Data - ANSWER-Data describing events that have already occurred. Such data are also known as actual data and results data. Trailing Period - ...

Top 10 Revenue Management Mistakes - ANSWER-#1)Believing that discounting is an effective way to increase revenue. #2)Believing the right price to charge for a room night is established solely on the hotel's costs and ROI expectation. #3)Thinking that artificial intelligence - revenue management software - is superior to human intelligence. #4)Thinking that short-term goals must have priority over long-term goals. #5)Counting revenue dollars as equal - regardless of the distribution channel...

revenue - ANSWER-the total amount of sales achieved a specified time period Revenue formula - ANSWER-number of sales x price per unit Revenue Managers must do 3 things - ANSWER-1. understand the importance of revenue mgt 2. understand the many complex factors 3. become better at making revenue mgt decisions than their competitors the profit fallacy - ANSWER-sales = costs + profit OR profit = revenue-expenses both buyer and seller - ANSWER-seek a profit profit - ANSWER-net valu...