Revenue Management in the Hospitality Industry Chapter 5&6 Exam Questions With 100% Complete Solutions

Room night - ANSWER-The single night's use of a guest room. For example, one room sold for three consecutive nights yields three room nights. RMs are forced to implement one of three income-management alternatives when demand for their products is high - ANSWER-1.Establish one fixed price, then sell to customers on a first-come-first-served basis until they have exhausted their supply of products. 2.Allocate the limited supply to selected customers who meet established criteria (i.e., they are volume buyers, repeat buyers, or they hold another favored buyer status). 3.Raise their prices until demand is reduced sufficiently to equal the available supply. Total available seat supply - ANSWER-Number of seats available X Hours of seat availability