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Revenue Management Module 1 and 2 Flashcards | StudBud
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Revenue Management Module 1 and 2
Revenue Management Module 1 and 2
37 terms
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To aid in review of terms and concepts in module one of LODG 265 - Revenue Management.
Flashcards
37 cards
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Practice quiz
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Questions
37
Answers
1
Which hotel segment is based on offering deal in your hotel during slow times?
Incentive
Social
Packages
In House Discounts
2
Which is NOT a Channel of Distribution?
Telephone number
The internet
Travel agency storefront
Brochure
3
What does a GROUP MASTER sheet keep track of?
Misbehaving Guests
Group charges and details.
Employee discounts
Individual charges
4
An ATTRITION CLAUSE guarantees a minimum number of rooms to be paid for with groups.
False
True
5
What is PROFIT?
All the $$ left-over after ALL costs are paid for.
Money used to pay for salaries.
Clothing that fits REALLY well.
All $$ taken in by a business.
6
What is a MARKET SEGMENT?
Groups we put similar customers into.
A group of people who share one or more characteristics.
Different times of the week.
Different hotel prices for different seasons.
7
Choose an example of a DISTRIBUTION CHANNEL.
A hotel's website.
The telephone.
3rd party websites (ORBITZ, BOOKING.COM, KAYAK.COM, etc...)
Travel Agencies
8
What is OVERHEAD?
OVERHEAD is a strategy in Revenue Management.
General costs of a business.
All the money left over after all costs are paid.
Above your head!
9
Bookings resulting from the guests working hard to win a special prize is what market Market Segment?
Incentive
F.I.T.
Package
Discounts
10
DIRECT PRODUCT COST(S) is money used to make your product.
False
True
11
What is a RACK RATE?
The the rate for the largest room in a hotel.
The rate for the smallest room in a hotel.
The LOWEST price a hotel will sell a room for that day.
The HIGHEST price a hotel will sell a room for that day.
12
The WASH RATE is what?
How clean a hotel room is.
Equal to the Spread Rate.
How much laundry costs.
How many people did not show up for their reservation or event.
13
Which of these is NOT a characteristic of Associations/Conventions/Trade shows segment?
Short Lead Time (1-2 weeks)
High Wash Rate
Long Lead Time (1-10 years)
Organizers are looking for a Profit.
14
Leisure segments are usually PRICE SENSITIVE.
False
True
15
Which segment do we use when your customer does not fit into any of your segments?
Individual & Group
Rack & Other
Other & In House Discount
Business & Leisure
16
A restaurant's OVERHEAD is more than a hotel's.
False
True
17
People who can afford to pay for high quality will only do so if they perceive value.
False
True
18
What are EXPENSES?
All the money taken in by a business.
Costs that must be paid
The cost of making a product.
Money left over after all bills are paid.
19
What is the main benefit of Revenue Management?
To maximize OCCUPANCY.
To bring in more Expenses.
To bring in more Revenue.
Rewards good buying behavior.
20
Your Spread Rate is the price of a double room minus the price of a single room.
False
True
21
I am booked by a wholesaler, 12- 16 months in advance, and guests arrive with a payment voucher?
Corporate Meetings
F.I.T.
Corporate Individual
Tours
22
What is a B.A.R. ?
Bureau of Available Requests
A place to go drink alcohol.
Best Available Rate
Brutally Awesome Rate
23
Comp Room Factors are requirements that customers must reach to get free rewards (rooms, meals, shows, etc...)
True
False
24
Revenue Management EMPOWERS employees by...
Allowing for more holidays.
Maximizing their salaries.
providing different rates to offer customers.
Allowing for extra training.
25
What is the MAIN GOAL of Revenue Management?
Increase EXPENSES
Manage employees
Increase REVENUE
Lower PROFIT
26
What is a Run-of-the-House Rate?
A type of Spread Rate.
A cheap option where you let the hotel pick your room type on arrival.
An expensive option where you let the hotel pick your room type on arrival.
The most expensive room available.
27
What is a CONTRIBUTION MARGIN?
Total money taken in by a business.
Total $$ - Expenses = CM
Total $$ - Direct Product Costs = CM
Costs of making a product.
28
Different rates allow employees to offer the same hotel experience to different types of guests.
False
True
29
Take a guess at what FORECASTING is!
Choosing prices based on previous business performance.
Predicting the weather.
An arm movement when fishing.
Guessing future sales using lots of different data.
30
These are all SPECIAL CHARACTERISTICS of the hospitality industry except ______________.
HIGH COSTS
PERISHABILITY
LONG HOURS
LOCATION
31
One way to INCREASE REVENUE is to sell the same amount at higher prices.
True
False
32
When a hotel sells a combination of a room plus something else (such as a tour) it is called a ____________________.
Discount
S.M.E.R.F.
Package
Segment
33
DIRECT PRODUCT COSTS are the same as EXPENSES.
False
True
34
What is REVENUE?
Money left over after expenses are included.
A type of customer.
Costs of making something.
All the money taken in by a business.
35
What is the product of a hotel?
Renting a hotel room.
The land a hotel is built on.
The total experience while staying there.
The total services in the spa.
36
An experience can be a business product.
False
True
37
Which of these is NOT a characteristic of the CORPORATE AND GOVERNMENT MEETINGS segment?
Segment is NOT loyal
Short Lead Time
Low Wash Rate
Demand is Spring and Fall, weeknights
