Unit 2 - Revenue Management - Part 1

Question 1

____ is the technique of planning to achieve maximum room rates and the most profitable guest. This concept originated with the use of ______.

Answer 1

Revenue Management
Yield Management

Question 2

Yield management was borrowed from the ____ industry to assist hoteliers in becoming better decision makers and marketers

Answer 2

Airline Industry

Question 3

Yield management forced hotel managers to develop _____ policies that would build a profitable bottom line.

Answer 3

reservation policies

Question 4

As with other businesses, pricing for the lodging is based on ____ and ___.

Answer 4

Supply and demand

Question 5

The period between peaks and valley, is called ___, during which hotels build business and offer a variety of rates.

Answer 5

Shoulder time

Question 6

Revealed the success of a hotel staff in attracting guests to a particular property.

Answer 6

Occupancy Percentage

Question 7

Formula for Occupancy Percentage

Answer 7

(No. of rooms sold ÷ no. of rooms available )× 100 = Single Occupancy Percentage

Question 8

_____ is a measure of a hotel staff’s ability to attract more than one guest to a room.

Answer 8

Double Occupancy

Question 9

Formula for Double Occupancy Percentage

Answer 9

[(no. of guests - no. of rooms sold )÷ ( no. of rooms sold)] × 100

Question 10

___ is a measure of the hotel staff’s success in selling available room rates.

Answer 10

Average Daily Rate or ADR

Question 11

Formula for ADR

Answer 11

total room sales ÷ no. of room sold

Question 12

____ and ____ are essential parts of revenue management because they challenge hoteliers to maximize occupancy and room rates.

Answer 12

Occupancy Percentage and ADR Computations

Question 13

____ allows you to recognize it as one of the financial determinants that hoteliers use in discussing revenue management.

Answer 13

RevPAR or revenue per available room

Question 14

____ is determined by dividing room revenue received for a specific day by the number of rooms available in the hotel for that day.

Answer 14

RevPAR

Question 15

Formula for RevPAR

Answer 15

Room revenue ÷ no. of available rooms
or
Hotel occupancy × ADR

Question 16

___ answer the question, “How many dollars is each room producing?”

Answer 16

RevPar

Question 17

What airlines and hotels share similar features that need the practice of yield management?

Answer 17

Hotel rooms and airline seats

Question 18

One major difference in how yield management is used in airlines and hotels.

Answer 18

Airline passengers usually don’t have the opportunity to spend money for other products and services unlike in the hotel.

Question 19

3 basic factors of yield management to navigate their way through revenue management.

Answer 19

Room rate categories, room inventory, and group buying power

Question 20

The goal of revenue management is two fold: _____ and _____.

Answer 20

To maximize profit for guest room sales and to maximize profit for hotel services.

Question 21

The ____ reports directly to the general manager, work closely with the marketing, and sales department, and consults with the front office manager.

Answer 21

Revenue Manager

Question 22

The job of the ____ is to oversee the room inventory and room rates offered throughout the year to groups and individuals and through various channels; CRS, GDS, third-party reservation system, toll-free reservation number, and so on.

Answer 22

Revenue Manager

Question 23

Jobs of revenue Manager

Answer 23

1. Monitor, analyze, and report on demand patterns, sales, and losses.
2. Develop, implement daily, and improve sales strategies as needed.
3. Work with Sales, Catering, and Conference Planning to balance transient and
   group business. Provide feedback about potential new customers.
4. Analyze no-shows, cancellations, early departures, and unexpected stayover
   patterns.
5. Direct weekly revenue meetings.
6. Assist with product development and marketing of transient packaging.
7. Adjust all rates and restrictions on property and through all transient channels.
8. Provide weekly reports about business pace and changes in consumer behavior
   that affect revenue.