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Chapter 1 - Revenue Management Exam Questions With 100% Correct Answers

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Give an example of how Revue Management would work in a Hotel - ANSWER-In hotels, Revenue Management is used to examine: 1. Occupancy - How many room nights are sold 2. Discounting - At what rate (are they discounted or not) 3. Sales mix - What else is sold (Parking, seats in the restaurant, spa) 4. Market segmentation - To whom (FIT travelers or business) 5. Distribution channel management - Through what channel (Ie, Expedia) What is Revenue Management? - ANSWER-Revenue management is the task of allocating the right type of capacity to the right type of customer at the right time and cost to maximize revenue. (helps improve profitability of certain business)

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