Chapter 1 | Introduction to Revenue Management Flashcards Preview

HTM 381 Revenue Management > Chapter 1 | Introduction to Revenue Management > Flashcards

Flashcards in Chapter 1 | Introduction to Revenue Management Deck (7)
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1
Q

Purpose and Objective of RM

A

Achieve maximum level of revenue

2
Q

Necessary conditions for RM

A
  1. Perishable inventory
  2. Fixed capacity
  3. Variable demand
  4. Segmentable market
  5. Advanced booking
3
Q

RM in hospitality

A
Price
Customer
Product
Time
Capacity/duration
Distribution Channel
"The right price to the right customer for the right product at the right time within the right capacity through the right channel"
4
Q

Differences between hotel RM and airline YM

A
  1. More uncertainty
  2. More group bookings
  3. More distribution channels
  4. Less control over channels
  5. Other revenue generation units
5
Q

Strategic RM

A
  1. Understand different customer groups and market segments
  2. Optimize profits - incorporate group and other revenue generation business
  3. Manage distribution channels
6
Q

Airline’s solutions to cannibalization

A

Rate fences

Capacity control

7
Q

RM job descriptions

A
  1. Establish prices
  2. Forecast demand
  3. Manage inventory
  4. Manage distribution
  5. Evaluate results
  6. Provide recommendations
  7. Communicate with other departments and management about RM strategies and decisions