Rev Mgmt Final Exam

Rev Mgmt Final Exam Apart from a "science", in what sense Revenue Management is called an "art"? - ANSUsing strategy to work with the numbers What is bigger in the tourism industry, fixed costs or variable costs? - ANS-Fixed cost is higher We can reduce prices (even below total cost per room), as long as the reduced price covers, fixed cost per room or variable cost per room? - ANS-Variable cost per room High Value Customers tend to book early or last? - ANS-Book last Do we sell "time blocks" or "physical products"? What implication does it have? - ANSTime blocks, implication is perishability and that's why price varies (sell for less than total cost at times) "I want my hotel to be the first to sell out in the market": Correct or incorrect? - ANSIncorrect RM can be organized with different levels regarding the people involved. How many? Which ones? - ANS-Property Level - Corporate Level - 3rd Party Services What does a booking curve represent? - ANS-Forecasted bookings What does a pace report track? - ANS-The OTB reservations against the forecast reservations Who attends the weekly RM meetings? - ANS-Revenue manager - General manager - Sales manager - Rooms manager (always) Food and Beverage management - Marketing - HR management (sometimes) How many internal performance indicators do we have? - ANS-6: OR, ADR, RevPar, and the percent changes of each of them How many external performance indicators do we have? - ANS-6: OR index, ADR index, RevPar index, and the percent changes of each of them What is the minimum number of hotels in a comp set? - ANS-4 What is the threshold in the OR, ADR and RevPar indexes that determines the point we are outperforming the comp set? - ANS-100 Price: The amount of money charged for a good or service. But from a marketing standpoint, it includes both monetary and - ANS-Non-monetary Continues...