Study guides, Class notes & Summaries

Rooms Inventory - ANSWER-All of the unique forms of guest room products offered for sale by a lodging facility. DD Room - ANSWER-The common CRS and PMS code for a guest room containing two full-sized (double or queen) beds Close Out - ANSWER-to remove from sale or to stop selling Room Code - ANSWER-A property-specific, shortened description used to identify a specific room product in a hotel Concierge Floor - ANSWER-An area (often an entire floor) located within a hotel, access to wh...

Demand (consumer) - ANSWER-The number of potential buyers with the interest and ability to purchase the products sold by a business at the specific price offered. Capital Improvement - ANSWER-An addition to a property that will enhance its value or increase its useful life. Examples; roof replacement and the purchase of new furnishings. Historical Data - ANSWER-Data describing events that have already occurred. Such data are also known as actual data and results data. Trailing Period - ...

Top 10 Revenue Management Mistakes - ANSWER-#1)Believing that discounting is an effective way to increase revenue. #2)Believing the right price to charge for a room night is established solely on the hotel's costs and ROI expectation. #3)Thinking that artificial intelligence - revenue management software - is superior to human intelligence. #4)Thinking that short-term goals must have priority over long-term goals. #5)Counting revenue dollars as equal - regardless of the distribution channel...

revenue - ANSWER-the total amount of sales achieved a specified time period Revenue formula - ANSWER-number of sales x price per unit Revenue Managers must do 3 things - ANSWER-1. understand the importance of revenue mgt 2. understand the many complex factors 3. become better at making revenue mgt decisions than their competitors the profit fallacy - ANSWER-sales = costs + profit OR profit = revenue-expenses both buyer and seller - ANSWER-seek a profit profit - ANSWER-net valu...

What is bigger in the tourism industry, fixed costs or variable costs? - ANSWER-fixed costs are bigger -Think of an airplane: staffing, airport fees (fixed) - huge amount of the costs for airplanes come from fixed costs; food, fuel (variable) - not as easy to determine the variable costs 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? - ANSWER-We can reduce prices as long as the reduced price covers t...

Revenue - ANSWER-The total amount of sales achieved in a specified time period Revenue is calculate as: - ANSWER-Number of Units Sold x Unit Price Effective managers of an organization's revenues MUST do three things - ANSWER-1. Understand the importance of revenue management 2. Understand the many complex factors that influence revenue management strategy and tactics 3. Become better at making revenue management decisions than their competitors Proft Formula - ANSWER-Revenue - Exp...

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...

Pace of build refers to: a) How quickly new hotel rooms and new hotels are being added to a comp set's total supply b)The rate at which reservations are being made for a future date c)How quickly the demand for substitute products is reducing demand for hotel rooms d)The speed with which currency exchange rates are rising in a given market - ANSWER-b: The rate at which reservations are being made for a future date Denial reports from reservations show us how much more business we could...

4 P's that ensure you have an accurate competitive set - ANSWER-1) Product (number of rooms, open date, hotel type, meeting space, amenities) 2) Proximity (distance, market and tract, location) 3) Pricing (scale, class) 4) Participation (monthly, daily, segmentation, additional revenue) You are the hotel manager of a 624 room full-service hotel in Minneapolis. In order to determine future price position it is imperative that you understand the break-even point and profitability of e...

Chapter 6 - ANSWER- Donna is a hotel revenue manager preparing next year's rooms forecast. Donna knows that in November of next year a new hotel is opening near her own. As a result, she is considering reducing her rooms forecast for that month. If she does so, what data type will she be primarily using to make her decision? - ANSWER-Future data Donna is a hotel revenue manager. Donna knows that for tonight she has sold 175 of her 200 available rooms. As a result, is eliminating room disc...