A) Ensure total revenue increases each year.
B) Promote an even follow of revenue throughout the year.
C) Maximise total revenue by using demand forecasts to determine what price to charge for a class of rooms on a particular day.
D) Ensure room night prices are relatively consistent across the year.
E) Maximise room occupancy throughout the year.
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A) Having a knowledge of reservation booking patterns.
B) Having information on historical demand by market segment.
C) Having an understanding of the hotel's over-booking policy.
D) Having knowledge concerning how much a particular price change for a particular room type at a particular time of year will change the volume of bookings.
E) All of the above
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A) Due to employee morale issues, it can be important to view a Revenue Management system as an information resource, but not necessarily as the finite decision maker.
B) If a Revenue Management system is introduced to a hotel, staff in group-sales departments that have been rewarded based on the number of group sales achieved, should have this incentive system modified.
C) Introduction of a new Revenue Management system will require the reservations and front office staff to be trained on using the system.
D) Care should be taken not to alienate customers when operating a Revenue Management system.
E) A Revenue Management system should not be linked in with a hotel chain's central reservation system.
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E
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A) Revenue management can include getting a tour operator to change the dates of a booking to a time that a hotel has low occupancy.
B) Revenue management systems use rate categories and demand forecasts.
C) Revenue management seeks to find the optimal point between minimising revenue lost due to unsold rooms and minimising revenue lost from rooms sold at prices below what they could have been sold for.
D) Revenue management is inconsistent with maximising RevPar.
E) If demand for a particular night is low, a revenue management system would indicate that prices for that night should be dropped in order to minimise unsold room inventory.
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D
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A) The decision to provide the tour operator with the 100 rooms at $80 will have the impact of increasing revenue for the year by $800.
B) Selling the rooms to the tour operator is justified as the increased occupancy will more than off-set the discounted pricing of the rooms.
C) Application of a revenue management philosophy could result in the tour operator being offered the 100 rooms at $78 each on a different night.
D) Application of a revenue management philosophy could result in the tour operator being encouraged to make the 15th May booking for less than 100 rooms.
E) Application of a revenue management philosophy would result in the rooms not being sold to the tour operator.
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E
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