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Rooms Inventory > Knowledge > Flashcards

Knowledge Flashcards

(48 cards)

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1
Q

Distribution Channel management

A

Process of delivering a product from the manufacturer to the end customer

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2
Q

Businesses that generate hotel rooms reservations

A
  • Travel agents
  • Online travel agent
  • Tour Operator
  • Hotel Reservation websites
  • Travel review sites
  • Opaque booking sites
  • Airbnb
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3
Q

Travel agents

A
  • receive 10-15% commission
  • makes the hotel booking for the guests
  • uses GDS
  • make money by commission from the hotel
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4
Q

Online travel websites

A
  • website offers packages for holidays
  • uses GDS
  • large computer website
  • eg. booking.com
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5
Q

Tour operator

A
  • group travel programs
  • markets directly to consumer
  • hotel has a number of rooms which they sell for a lower rate
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6
Q

Hotel reservation website

A
  • focus on selling hotel rooms

- loyalty program

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7
Q

Travel review sites

A
  • platform to share your experience

- gives the options to book trips

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8
Q

Opaque booking sites

A
  • guest bid for a room
  • guest only know price,stars, and location
  • hotels give up to 30-60% discounts
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9
Q

Airbnb

A

-low commission for home owners

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10
Q

PMS - property management systems

A

Controls onsite property’s

  • POS( point of sales)
  • CRS ( central reservations systems )
  • Eg. opera
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11
Q

CRS - central reservations systems

A

Manage hotels distribution and hotel room booking
Via travel agents

  • supply attractive photos and creative site
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12
Q

GDS - Global Distribution systems

A 
A reservation platform to enable reservations 
4 major GDP companies:
-Sabre 
-Galileo
-amasdeus
-worldspan

Travel agents use this to book hotels,airlines etc

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13
Q

WBE - web booking engining

A

Let’s guests shops for rooms and complete reservations

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14
Q

Channel management systems

A

Controls the hotels inventory and rates across all distribution channels

Should reduce labour costs and improve efficiency by providing a way to control multiple channels

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15
Q

How does the channel manager work for the hotel?

A
  • deducts rooms sold via one website

- helps you create rate parity

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16
Q

GDS users

A
  • travel agents
  • Internet travel sites
  • opaque travel sites
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17
Q

Rate parity

A

The distribution channel of a hotel should reflect the same rates for the same conditions for a particular room type

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18
Q

Regulations for five star hotel

A
  • at least two people in the reception
  • Night receptionist
  • Three types of shift,Early, late, night
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19
Q

When do we use forecasting

A
  • When you make plans to build or buy a hotel
    Investment, return on investment
  • when you are managing the hotel
    Occupancy, and room rates, costs, staffing
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20
Q

Front office records

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A
  • confidential information at all times kept within the hotel
  • individual guest history profile
21
Q

Pick up rate

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A

The difference between the number of rooms expected by group booking and the actual number of rooms booked by the group

22
Q

Hotel pick up record

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A

Booking pace of your hotel

Recorded on every first day of the month the monthly occupancy for every future month

23
Q

Hotel pricing

Study These Flashcards
A

-to price and understand how the consumer reacts to the pricing strategy
-marketing decisions need to be taken
-The cost structure:
Fixed costs [high - low]
Variable costs [high - low]

24
Q

Effects of price on market

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A
  • High prices may reduce demand
  • May attract high guests and brand your hotel differently
  • Price equals creates competition
  • Low prices may fail to cover costs
25
Positioning your price
1. Skim 2. Match 3. Surround 4. Undercut 5. Penetrate
26
Skim
- Set your price is higher than the competition does - So you can skim off the higher paying customer in hope of getting people who are willing to pay a bit more - attracts luxury and more expensive that majority cannot afford
27
Match
- Set one right to match the competition and another right slightly higher - Higher rates for better rooms
28
Surround
- all for one price that is lower than the competition and one price is higher - To attract bargain seekers
29
Undercut
- Offer a price is the same as your competition and lower one as well - In hope of attracting more customers
30
Penetrate
- set your rates lower than the competition | - In hope of getting a customers to try your product
31
Rate fences
Setting special conditions to receive special lower price Eg. book in advance, pay in advance p,stay more then 3 nights
32
Costs approaches
Tangible criteria and intangible criteria
33
Tangible criteria
- type of room - size of rooms - location and view - level of service
34
Intangible criteria
- season - weekend or weekday - Time of arrival - Inclusive or non-inclusive - Per person or per room
35
Establishing room rates
Room rates reflect service expectations to the hotels target market 1. Market condition approach 2. Rule of thumb approach 3. Hubbart formula Ford/ bottoms Up Approach
36
Market condition approach
- commonsense approach - often used but has many problems - Allows the Local market to determine the rate
37
Rule of thumb approach
- set the minimum average room rates at $1 for each $1000 of construction and furnishing costs per room - assume 70% of occupancy - Doesn’t include other hotel services
38
Hubbart formula/Bottoms up approach
- What is the target rather than actual room prices | - Needs management estimates
39
Method for bottoms Up approach
– Calculate desired profit – Calculate pretax profits – Calculate fixed charges and management fees – Calculate undistributed operating expenses -estimate non-room operating department profit/loss -calculate required rooms division income – Determine room division income – Calculate average room rate
40
Room rate economies
The process by which revenue managers price rooms while considering how consumers may react to the pricing strategy
41
Benefits of revenue management
- improved forecasting - Approved seasonal pricing and inventory decisions - Determine discount activity
42
Revenue management methods
1. Capacity management 2. Discount allocation 3. Duration control
43
Capacity management
- Designed to fix capacity of the hotel rooms in the most optimal way - balances risk of overbooking
44
Discount allocation
- Offering discounts on hotel rooms | - Restricts time period And product mix available at reduced or discounted rates
45
Duration control
- Special conditions/restrictions to the duration of the stay - 1 to 2 days as there’s a big event in the town - Reaches more occupancy
46
Rack rates
- The published rates - maximum property can charge for a room - Maximum possible price
47
Elements of revenue management strategies
- group room sales business rooms - transient rooms sales Individual booking
48
Important features of distribution channel management
- be visible - attractive photos - languages - booking module

Rooms Inventory (2 decks)

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