Exam 1 | HB 437 - Hospitality Revenue Management, Quizzes of Tourism Economics and management

Download Exam 1 | HB 437 - Hospitality Revenue Management and more Quizzes Tourism Economics and management in PDF only on Docsity! TERM 1 Competitive Set DEFINITION 1 A group of similar and directly competing lodging properties. TERM 2 RevPar DEFINITION 2 ADR X Occupancy percentage orTotal revenue / Total rooms available for sale TERM 3 GOPPAR DEFINITION 3 Total revenue - Management controllable expense---------------- ----------------------------------------------------- Total rooms available for sale TERM 4 ADR DEFINITION 4 Total room rev / Total rooms sold TERM 5 Price Sensitivity DEFINITION 5 Price elasticity of demand is a measure used in economics to show the responsiveness, or elasticity, of the quantity demanded of a good or service to a change in its price, ceteris paribus. TERM 6 Dynamic Pricing DEFINITION 6 Dynamic pricing is a pricing strategy in which businesses set flexible prices for products or services based on current market demands. TERM 7 Differential Pricing DEFINITION 7 Differential pricing is the strategy of selling the same product to different customers at different prices. Consider the pricing behavior at an auction. Everyone has the same information and bids on the same item. TERM 8 Value Based Pricing DEFINITION 8 Value-based pricing is a pricing strategy which sets prices primarily, but not exclusively, on the value, perceived or estimated, to the customer rather than on the cost of the product or historical prices. TERM 9 Product Versioning DEFINITION 9 A business practice in which a company produces different models of the same product, and then charges different prices for each model. Versioning a product gives the consumer the option of purchasing a higher valued model for more money or a lower valued model for less money. In this way, the business is attempting to attract higher prices based on the value a customer perceives. TERM 10 Customer Lifetime Value DEFINITION 10 In marketing, customer lifetime value (or often CLTV), lifetime customer value (LCV), or life-time value (LTV) is a prediction of the net profit attributed to the entire future relationship with a customer.