REVIEW QUESTIONS
1. What are REVPAR, ADR, Occupancy Rate? What role do they have in determining Revenue Management Formulas?
2. What three different individuals may be given responsibility for Revenue Management? What are the benefits and disadvantages of each?
3. What are Allocation Controls? What are Availability Controls? What are the benefits and disadvantages of each?
4. What type of information must a Revenue Manager have in order to successfully forecast pricing and revenue flow? How is this information collected and over what period of time?
5. How important is revenue management to the overall financial success of the hotel operation? What departments are usually involved in the revenue management process?
ACTIVITIES
1. Make an appointment with the Revenue Manager of a full service hotel; ask about the generics of the system that they use. In some cases this may be considered proprietary information, in which case ask questions concerning reports, importance of revenue management, departments involved, and frequency of submitting reports and price changes.
2. Find out the names of automated hotel revenue management systems (Google). Join www.hotelon-line.com (Free subscription) which is used by many hoteliers. Once online, go to “archives” and type in Revenue Management and hit, “Enter”. This will give the latest articles on Revenue Management.
3. Make a list of when you should raise prices and a list of when you should lower prices. Remember, you are a manager who is trying to make the property profitable, not just give discounts to make your price-sensitive customers happy.
REVIEW QUESTIONS
1. What are REVPAR, ADR, Occupancy Rate? What role do they have in determining Revenue Management Formulas?
2. What three different individuals may be given responsibility for Revenue Management? What are the benefits and disadvantages of each?
3. What are Allocation Controls? What are Availability Controls? What are the benefits and disadvantages of each?
4. What type of information must a Revenue Manager have in order to successfully forecast pricing and revenue flow? How is this information collected and over what period of time?
5. How important is revenue management to the overall financial success of the hotel operation? What departments are usually involved in the revenue management process?
ACTIVITIES
1. Make an appointment with the Revenue Manager of a full service hotel; ask about the generics of the system that they use. In some cases this may be considered proprietary information, in which case ask questions concerning reports, importance of revenue management, departments involved, and frequency of submitting reports and price changes.
2. Find out the names of automated hotel revenue management systems (Google). Join www.hotelon-line.com (Free subscription) which is used by many hoteliers. Once online, go to “archives” and type in Revenue Management and hit, “Enter”. This will give the latest articles on Revenue Management.
3. Make a list of when you should raise prices and a list of when you should lower prices. Remember, you are a manager who is trying to make the property profitable, not just give discounts to make your price-sensitive customers happy.
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