Revenue Management Exam Final 2023 Verified Solution

Revenue Management Exam Final 2023 Verified Solution Revenue Management Definition - ANSWER-Sell the right room, to the right client, at the right price, at the right moment, on the right distribution channels. What data is used to generate a STAR report - ANSWER-ADR, Occupied Rooms, Available Rooms Reference Prices - ANSWER-The prices that consumers anticipate to pay or they considerable reasonable to pay for a particular product or service. Market Segmentation is a key component of revenue management, resulting in the objective: - ANSWER-Protecting inventory for high value customers who tend to book last. High Cross Price Elasticity - ANSWER-Group -- they spend $ on rooms, food, banquet, etc. Last Room Available Agreement - ANSWER-Negations in which hotels stipulate that the hotel must honor the negated rate as long as the occupancy is less than 100% Rate Cannibilatizon - ANSWER-When a hotel room sells at a discounted price when that room could have been sold at a higher price. The first and most important step before making any analyses. Revenue managers work is related and based on it - ANSWER-Market Segmentation Number 1 pricing Mistake for Revenue Managers - ANSWER-Selling out too quickly When forecasting next year's occupancy, you look at the hotel's occupancy over the last five years and there is a distinct upward trend. This is using a -- - ANSWER-Weighted moving average One error with hotel occupancy forecasting simple moving average methods with historical occupancy over the last five years: - ANSWER-Failure to correct for year to year calendar differences Which N should you use if there has been a lot of variance in the past few years for the month of September? - ANSWER-The large N What is primary purpose of the maximum length of stay rate fence - ANSWER-Protect the upcoming demand peak Continues...