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Questions and Answers
Revenue Management is the entire set of strategies addressing the issue of ______ offered to customers.
value
A ______ Business is an organization providing foods, beverages, lodging, travel, or entertainment services to people away from their homes.
hospitality
The main purpose of a business is to earn ______.
profit
______ is the net value achieved by the seller and a buyer in a business transaction.
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Revenue is the total amount achieved in the specified ______ period.
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A ______ Manager is the individual or team responsible for insuring that the company’s prices match a customer’s willingness to pay.
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To be an effective ______ Manager, one must understand the importance of Revenue Management.
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A ______ is a source of business, it is also a vehicle used to communicate with the source of customer.
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Study Notes
Revenue Management and Hospitality Business
- Revenue Management is the set of strategies addressing the issue of value offered to customers.
Hospitality Business
- A hospitality business provides services such as foods, beverages, lodging, travel, or entertainment to people away from their homes.
Purpose of Business
- The primary purpose of a business is to earn profit.
- Another important purpose is to provide job opportunities.
Profit and Revenue
- Profit is the net value achieved by the seller and buyer in a business transaction, calculated as Profit = Revenue – Expenses.
- Revenue is the total amount achieved in a specified time period, calculated as Revenue = Total Units Sold × Unit Price.
Key Terms
- TC: Transaction Count
- CC: Cover Count
- ACTC: Average Check per Transaction Count
- ACCC: Average Check per Cover Count
- IS: Items Sold
- SPI: Sales per Items
- IPTC: Item per Transaction Count
Revenue Manager
- A Revenue Manager is responsible for ensuring that the company's prices match a customer's willingness to pay.
Channel
- A channel is a source of business and a vehicle used to communicate with the source of customers.
Effective Revenue Management
- To be an effective Revenue Manager, one must:
- Understand the importance of Revenue Management.
- Understand the complex factors that influence revenue and many strategies and tactics.
- Make better Revenue Management decisions than competitors.
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Description
This quiz covers the basics of revenue management and its application in the hospitality industry, including the purpose of business and key concepts like profit and revenue.
