Inventory Management and Revenue Optimization in Hospitality Industry, Quizzes of Introduction to Macroeconomics

Download Inventory Management and Revenue Optimization in Hospitality Industry and more Quizzes Introduction to Macroeconomics in PDF only on Docsity! TERM 1 Perishable Inventory DEFINITION 1 if the product is not sold within a given time period, that product cannot later be sold. example: airline seat TERM 2 Fixed inventory DEFINITION 2 Hotels have a fixed amount of rooms, they cant expand on the demand. TERM 3 Provide 2 examples of a stay control application. DEFINITION 3 Stay controls > duration rules and restrictions may apply to arrival dates, departure dates, and minimum length of stay. Reservation 3 nights, pay 2 nights Guest stay for 2 nights offer extra day 50% discount on room rate TERM 4 What is the function of a displacement analysis? DEFINITION 4 Determining the optimal mix of businesses. TERM 5 Give one example to illustrate why this analysis is an important tool for revenue managers DEFINITION 5 Decide/accept a group for a low rate which increases occupancy or sell the rooms to individual guest which increase revenue. TERM 6 Average cancelation percentage over a period. Average occupancy over a period. DEFINITION 6 o What is the industry term used to describe the total value of the customer to the organization, from the organization perspective? TERM 7 Guest worth DEFINITION 7 o What is the industry term used to describe the total value of the customer to the organization, from the organization perspective? TERM 8 Segmentation DEFINITION 8 o What is the industry tem used for a group of customers which can be identified by one or more common characteristics? TERM 9 Price, unit-availability, price purchasing DEFINITION 9 o What is the relationship between optimal business mix and willingness to pay? TERM 10 What is the definition of a GDS? DEFINITION 10 Global distribution system, that collects all the services/products companies have a customer could wish, only accessible for companies. TERM 21 Give one example of data we can use to judge whether performance in revenue management is good or negative. DEFINITION 21 Historical data TERM 22 o Describe 3 difference between a room revenue budget and a room revenue forecast. Budget: fixed, for a year, target strategy DEFINITION 22 Forecasting: flexible, change every day, demand. TERM 23 o Which common IDS room sales model is most dependent on selling prices and location and NOT on unique selling points? DEFINITION 23 Opaque Site examples: Hotwire TERM 24 What is the disadvantage ( from organisation perspective) of a referral/meta search engine? DEFINITION 24 They compare other sites for the best price or deal, like TravelAxe. Referral sites are also paid on a commission per customer booking basis, typically at 10 percent. TERM 25 What is an advantage to work with a merchant model? DEFINITION 25 A merchant model is the familiar online travel site, so a third- party website, like Expedia TERM 26 Give 1 example of an IDS that works with a merchant model. DEFINITION 26 Expedia TERM 27 What is the purpose of a rate fencing? DEFINITION 27 Purpose customers from leaping from one segment to another in an attempt to receive a lower rate. TERM 28 Give 3 examples of rate fences. DEFINITION 28 advance reservations, deposits TERM 29 Which two pricing concepts could revenue managers use of to decide on their selling prices? DEFINITION 29 Cost based pricing, value bases pricing TERM 30 Why should revenue managers care about price elasticity of demand? DEFINITION 30 If the price/value isnt right the customers will go to competitors TERM 31 Which types of data will donna be primarily using to make her decisions? Provide 5 examples of data. DEFINITION 31 Cancellations, no-show, optional bookings, expected walk- in, actual bookings TERM 32 o What is the lodging industry term for the situation which occurs when a hotel is unable to accommodate guests reservation due to unavailability of the room at the price, originally requested by the guest? DEFINITION 32 Denial TERM 33 Which rate management strategy can be used effectively on that date? DEFINITION 33 Pricing rules & conditions TERM 34 o How many additional reservations could you accept before you would be required to walk in guest? What is the term that describes this technique? DEFINITION 34 Variation TERM 35 Figure 2 ( See appendix) shows part of the daily report from a hotel. The hotel has 200 rooms, the highest rate is 110,- o Calculate OCC % ADR and yield % and business mix% ( business, leisure, groups) based on this daily report. DEFINITION 35 Occupancy: rooms sold/rooms available * 100 ADR: amount guest per room type * rate ( all room types calculated together) Yield: actual revenue/ maximum revenue*100 Business mix ( business, leisure and groups): Segment/total guest