HospitalitygRevenuegManagementgExamgLatestggUp
date
Revenuegmanagementgisgthegactgofgdirectinggsourcesgofgincomegwithingthegconfine
sgofg- ANSWER capacity,gsupplygandgdemand
GOPPARgtakesgintogaccountgwhichgofgthegfollowinggvariablesgthatgisgnotgconsidere
dgingRevPAR?g- ANSWER Controllablegexpenses
Namegrevenuegoptimizationgstrategiesg- ANSWER
Marketgsegmentation,gDurationg
controlg,gBARg(BestgAvailablegRate)
Legoherel,gPoutier,g&gFyallgpointgoutgthatgrevenuegoptimizationgisgnotgonlygabou
tgproductgversioning,gdistributiongchannelgselection,gandgpricing,gbutgalsog-
gANSWER carefulgselectiongofgthegmostgprofitablegcustomers
Thegnetgvaluegachievedgbygagsellergandgagbuyergingagbusinessgtransaction
g-gANSWER Profit
AgBartergSystemgisgag- ANSWER
Tradinggsystemgingwhichggoodsgandgservicesgaregexchange
dgwithoutgthegusegofgmoney.
Thegareagofgstudygconcernedgwithgthegproduction,gconsumption,gandgtransfergo
fgwealthgisgcalledg- ANSWER Economics
Thegpurposegofgsuccessfulghospitalitygbusinessesgisgtog- ANSWER
Providegprofitsgtogi
tsgcustomersgandgincreasegtheirgwealth.
Thegindividualgorgteamgresponsiblegforgensuringgthatgagcompany'sgpricesgmatchg
agcustomer'sgwillingnessgtogpay.g- ANSWER RevenuegManager(s)
Agrevenuegmanagementgphilosophygthatgplacesgcustomerggaingaheadgofgshortgter
mgrevenuegmaximizationgingrevenuegmanagementgdecisiongmakinggisgcalledg-
gANSWER Customer-CentricgRevenuegManagement
Agsourcegofgbusinessgcustomersgorgvehiclegusedgtogcommunicategwithgagsourceg
ofgcustomersgisgcalledgag- ANSWER Channel/DistributiongChannel
ConstrainedgSupplygisgthegconditiongthatgexistsgwheng- ANSWER
Sellersgcannotgreadilyginc
reasegthegamountgofgproductsgorgservicesgavailablegforgsalegwhengconsumergdema
,ndgforgthemgincreases
,WhatgisgthegdifferencegbetweengagHardgConstraintgandgagSoftgConstraint?g-
gANSWER
HardgConstraint:gagsupplygconstraintgthatgcannotgbegremoved,gregar
dlessgofgproductgdemand.gEx:ghotelgrooms,gcapacitygofgnaturalggasgpipelines
SoftgConstraint:gagsupplygconstraintgthatgcan,gwithgsufficientgleadgtime,gand/orgrea
sonablegexpense,gbegremovedgorglessened.gEx:
Agdemandgbasedgrevenuegmanagementgstrategy,gfirstginitiatedgbygcommercialgairl
inegcompanies.gItgseeksgtogmaximizegincomegviagmanipulationgofgsellinggprices.
- ANSWER YieldgManagement
Acceptinggreservationsgforgmoregroomsgthangaghotelghasgavailablegorginginventorygi
sgknowngasg- ANSWER Overbooking/Overselling
Aggroupgofgsimilargandgdirectlygcompetingglodginggpropertiesgtogwhichgang
individualghotel'sgoperatinggperformancegisgcomparedgisgcalledg-
ANSWER
gCompetitivegSet
AgMarketgSegmentgisg- ANSWER
Agsubsetgofgagcustomerggroupgthatgcangbegreadilygid
entifiedgbygonegorgmoregcommon,gbutgindividualgcustomergcharacteristics.g
Ex:gIncome,ggender,gorgpurposegofgtravel.
Agsummarygreportgdescribinggthegamountgofgfuturegdemandgforgaglodginggprope
rty'sgroomsgorgservicesgandgthegrategatgwhichgthatgbusinessgisgbunggcapturedgisgca
lledgag- ANSWER PacegReport
RackgRoomgRatesgareg- ANSWER
Thegpricegofgroomsgwhengnogdiscountsgofganygtypegarego
fferedgtogguestsgpurchasinggthegrooms
Thegadvertisinggandgpromotiongofgtravelgandgtourismgactivitiesgingagspecificall
ygdesignatedggeographicgareagisgcalledg- ANSWER DestinationgMarketing
AgTargetgMarketgconsistsgofg- ANSWER
Potentialgcustomersgtogwhomgagbusiness'g
marketinggactivitiesgandgmessagegaregdirected.
Pricegisgagmeasuregofg- ANSWER
Thegvalueggivengupg(exchanged)gbygagbuyergandgagsellergin
gagbusinessgtransaction.
Ingthegconsumer'sgmind,gvaluegforgthegproductgisgequivalentgtog-
ANSWER
, perceivedgbenefitgminusgthegprice
g
Thegminimalgsalesgpointgisgequivalentgtog- ANSWER
thegdollargsalesgvolumegatgthegbreakg
evengpointg(revenueg-gcostg=g0)
date
Revenuegmanagementgisgthegactgofgdirectinggsourcesgofgincomegwithingthegconfine
sgofg- ANSWER capacity,gsupplygandgdemand
GOPPARgtakesgintogaccountgwhichgofgthegfollowinggvariablesgthatgisgnotgconsidere
dgingRevPAR?g- ANSWER Controllablegexpenses
Namegrevenuegoptimizationgstrategiesg- ANSWER
Marketgsegmentation,gDurationg
controlg,gBARg(BestgAvailablegRate)
Legoherel,gPoutier,g&gFyallgpointgoutgthatgrevenuegoptimizationgisgnotgonlygabou
tgproductgversioning,gdistributiongchannelgselection,gandgpricing,gbutgalsog-
gANSWER carefulgselectiongofgthegmostgprofitablegcustomers
Thegnetgvaluegachievedgbygagsellergandgagbuyergingagbusinessgtransaction
g-gANSWER Profit
AgBartergSystemgisgag- ANSWER
Tradinggsystemgingwhichggoodsgandgservicesgaregexchange
dgwithoutgthegusegofgmoney.
Thegareagofgstudygconcernedgwithgthegproduction,gconsumption,gandgtransfergo
fgwealthgisgcalledg- ANSWER Economics
Thegpurposegofgsuccessfulghospitalitygbusinessesgisgtog- ANSWER
Providegprofitsgtogi
tsgcustomersgandgincreasegtheirgwealth.
Thegindividualgorgteamgresponsiblegforgensuringgthatgagcompany'sgpricesgmatchg
agcustomer'sgwillingnessgtogpay.g- ANSWER RevenuegManager(s)
Agrevenuegmanagementgphilosophygthatgplacesgcustomerggaingaheadgofgshortgter
mgrevenuegmaximizationgingrevenuegmanagementgdecisiongmakinggisgcalledg-
gANSWER Customer-CentricgRevenuegManagement
Agsourcegofgbusinessgcustomersgorgvehiclegusedgtogcommunicategwithgagsourceg
ofgcustomersgisgcalledgag- ANSWER Channel/DistributiongChannel
ConstrainedgSupplygisgthegconditiongthatgexistsgwheng- ANSWER
Sellersgcannotgreadilyginc
reasegthegamountgofgproductsgorgservicesgavailablegforgsalegwhengconsumergdema
,ndgforgthemgincreases
,WhatgisgthegdifferencegbetweengagHardgConstraintgandgagSoftgConstraint?g-
gANSWER
HardgConstraint:gagsupplygconstraintgthatgcannotgbegremoved,gregar
dlessgofgproductgdemand.gEx:ghotelgrooms,gcapacitygofgnaturalggasgpipelines
SoftgConstraint:gagsupplygconstraintgthatgcan,gwithgsufficientgleadgtime,gand/orgrea
sonablegexpense,gbegremovedgorglessened.gEx:
Agdemandgbasedgrevenuegmanagementgstrategy,gfirstginitiatedgbygcommercialgairl
inegcompanies.gItgseeksgtogmaximizegincomegviagmanipulationgofgsellinggprices.
- ANSWER YieldgManagement
Acceptinggreservationsgforgmoregroomsgthangaghotelghasgavailablegorginginventorygi
sgknowngasg- ANSWER Overbooking/Overselling
Aggroupgofgsimilargandgdirectlygcompetingglodginggpropertiesgtogwhichgang
individualghotel'sgoperatinggperformancegisgcomparedgisgcalledg-
ANSWER
gCompetitivegSet
AgMarketgSegmentgisg- ANSWER
Agsubsetgofgagcustomerggroupgthatgcangbegreadilygid
entifiedgbygonegorgmoregcommon,gbutgindividualgcustomergcharacteristics.g
Ex:gIncome,ggender,gorgpurposegofgtravel.
Agsummarygreportgdescribinggthegamountgofgfuturegdemandgforgaglodginggprope
rty'sgroomsgorgservicesgandgthegrategatgwhichgthatgbusinessgisgbunggcapturedgisgca
lledgag- ANSWER PacegReport
RackgRoomgRatesgareg- ANSWER
Thegpricegofgroomsgwhengnogdiscountsgofganygtypegarego
fferedgtogguestsgpurchasinggthegrooms
Thegadvertisinggandgpromotiongofgtravelgandgtourismgactivitiesgingagspecificall
ygdesignatedggeographicgareagisgcalledg- ANSWER DestinationgMarketing
AgTargetgMarketgconsistsgofg- ANSWER
Potentialgcustomersgtogwhomgagbusiness'g
marketinggactivitiesgandgmessagegaregdirected.
Pricegisgagmeasuregofg- ANSWER
Thegvalueggivengupg(exchanged)gbygagbuyergandgagsellergin
gagbusinessgtransaction.
Ingthegconsumer'sgmind,gvaluegforgthegproductgisgequivalentgtog-
ANSWER
, perceivedgbenefitgminusgthegprice
g
Thegminimalgsalesgpointgisgequivalentgtog- ANSWER
thegdollargsalesgvolumegatgthegbreakg
evengpointg(revenueg-gcostg=g0)
