CHAPTER 9 REVENUE MANAGEMENT IN TOUR AND TRAVEL AGENCY BUSINESS

Question 1

central to achieving financial sustainability,

Answer 1

revenue generation, driven by demand

Question 2

is critical for any organization’s long-term survival, ensuring the ability to provide services and withstand economic challenges independently.

Answer 2

Financial sustainability

Question 3

optimizes pricing, timing, and distribution channels for targeted customer engagement in the service industry.

Answer 3

Revenue management

Question 4

involve forecasting, overselling, dynamic pricing, and capacity management, leveraging analytical insights to maximize profitability amidst evolving demand and market segmentation.

Answer 4

Effective revenue management systems in tourism-related sectors

Question 5

helps travel agencies manage customer flow and capacity effectively.
It enables customized pricing for different customer segments, increasing customer engagement.

Answer 5

Revenue management

Question 6

aid in predicting demand and managing risks.

Answer 6

revenue management strategies

Question 7

allows travel agencies to stay competitive amid industry challenges

Answer 7

Effective revenue management

Question 8

Travel companies earn money from hotels, airlines, restaurants, and other services when they make bookings for customers.

Answer 8

Commissions and service fees

Question 9

With lower airline commissions, agents make more by offering hotels, local transport, tours, insurance, and shopping.

Answer 9

Extra services

Question 10

Companies often use travel agencies for employee travel, giving agencies a steady source of income.

Answer 10

Business travel

Question 11

Travel agencies serve both individuals and groups, but commissions have decreased because more people book their own trips online.

Answer 11

Holiday market segments

Question 12

Agents earn money by offering expert advice on destinations, hotels, safety, and other travel needs. They also make more by planning unique or exotic trips.

Answer 12

Consultations and value-added services

Question 13

is a performance metric used by travel agencies to measure how much revenue is earned from each tour product available for sale.

Answer 13

REVENUE PER AVAILABLE TOUR PRODUCT (RevPATP)

Question 14

RevPATP shows how well tour packages are earning for the agency.

Answer 14

Measures performance

Question 15

It guides agencies in adjusting prices to improve profits.

Answer 15

Helps with pricing

Question 16

Agencies can focus on top-earning tours and improve or replace low-performing ones.

Answer 16

Supports better planning

Question 17

T OR F: Is it important Create tour packages that match the needs of different customer groups

Answer 17

T

Question 18

T OR F: Revenue management strategies does not adjust prices based on demand and market changes.

Answer 18

F

Question 19

Busy seasons like holidays let agencies charge more, offer fewer discounts, and avoid no-shows with clear policies.

Answer 19

High periods

Question 20

Slower times need smart selling, like offering upgrades or promos to boost sales.

Answer 20

Low periods

Question 21

Agencies can suggest extras like tours or insurance to increase earnings.

Answer 21

Regular periods

Question 22

helps earn more by changing prices based on demand, competitor rates, and market trends.

Answer 22

Dynamic pricing

Question 23

save money for tour providers by avoiding commission fees, improving online visibility, and staying in touch with customers.

Answer 23

Direct booking incentives

Question 24

means changing prices quickly. Higher during busy times to earn more, and lower during slow times to stay competitive.

Answer 24

Demand-based distribution

Question 25

adds a profit margin to the supplier's cost. It is computed by adding a percentage on top of the base cost.

Answer 25

Mark-up pricing

Question 26

lowers the price of slow-selling products. It is computed by subtracting a discount from the original price.

Answer 26

Mark-down pricing

Question 27

combine several services into one offer. Pricing is based on the total cost of included services, often with a slight discount.

Answer 27

Packages

Question 28

are the standard published prices before any discounts. They are often used as a base to show how much customers save with deals.

Answer 28

Rack rates

Question 29

changes rates depending on high or low travel seasons. It is computed by adjusting prices based on expected demand for each time of year.

Answer 29

Seasonal pricing

Question 30

offers discounts close to the travel date to avoid empty slots. It is based on remaining availability and how soon the service starts.

Answer 30

Last-minute pricing

Question 31

include per person, per unit, single, and double occupancy. These are set based on the number of guests and the type of accommodation or service booked.

Answer 31

Types of pricing in tourism

Question 32

T OR F: Travel agencies need to carefully manage bookings, prices, and customer types to avoid unsold tour spots or missed income.

Answer 32

T

Question 33

Y OR N: revenue can be affected by overbooking, longer trips during holidays, or limited availability of services like transport or accommodations.

Answer 33

YES

Question 34

T OR N: Phones are convenient because they’re easy to carry, connect to the internet quickly, and let users pay using apps like GCash or Maya.

Answer 34

T

Question 35

T OR F: But using phones also has downsides. It can be harder to search, type, or remember details, especially for long or complicated information like travel plans.

Answer 35

T

Question 36

led to job losses across sectors, particularly in tourism and hospitality.

Answer 36

Travel bans and restrictions

Question 37

T OR F: Many agencies aimed to sustain operations but acknowledged challenges without government support.

Answer 37

T