HTM 358: Hospitality and Tourism Purchasing and Supply Management
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HTM 358: Hospitality and Tourism Purchasing and Supply Management

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Questions and Answers

What is the main objective of product yield management?

  • To increase prices and reduce demand
  • To minimize costs and quantities of goods and services
  • To minimize unsold capacity while maximizing average spend and occupancy (correct)
  • To reduce the quality of goods and services
  • Why is product yield management crucial in the hospitality and tourism sectors?

  • Because of the fixed demand for the products
  • Because of the perishable nature of the products (correct)
  • Because of the long shelf life of the products
  • Because of the low competition in the industry
  • What is one of the challenges faced by a small B&B in terms of demand?

  • Fluctuating supply of rooms
  • High competition from larger hotels
  • Fixed pricing strategy
  • Fluctuating demand (correct)
  • What is the goal of yield management in terms of pricing?

    <p>To price rooms to fill them when demand is high, but still attract guests when it's low</p> Signup and view all the answers

    What is one of the variables that can impact pricing and demand?

    <p>Weather</p> Signup and view all the answers

    What is one of the challenges faced by a small B&B in terms of guests?

    <p>Different types of guests</p> Signup and view all the answers

    What is one of the challenges faced by a small B&B in terms of bookings?

    <p>Last-minute bookings</p> Signup and view all the answers

    What does yield management help to achieve?

    <p>Minimization of unsold capacity while maximizing average spend and occupancy</p> Signup and view all the answers

    What is product yield management primarily used for in the hospitality and tourism industry?

    <p>To maximize revenue by effectively managing limited resources</p> Signup and view all the answers

    What is the first step in product yield management?

    <p>Understanding your guests</p> Signup and view all the answers

    What is the purpose of inventory control in product yield management?

    <p>To allocate rooms effectively to reduce vacant spaces</p> Signup and view all the answers

    What is the benefit of product yield management in the hospitality industry?

    <p>Higher occupancy rates</p> Signup and view all the answers

    What technique involves giving client segments special offers or discounts?

    <p>Rate fencing</p> Signup and view all the answers

    What happens when a hotel takes in more reservations than it can handle?

    <p>Overbooking</p> Signup and view all the answers

    What is the purpose of forecasting demand in product yield management?

    <p>To predict how busy the business will be in the future</p> Signup and view all the answers

    What is the last available room in a hotel called?

    <p>Last-room availability</p> Signup and view all the answers

    What is the purpose of closing sales for a particular room type?

    <p>To prevent overbooking</p> Signup and view all the answers

    What is the result of improved occupancy rates in a hotel?

    <p>Increased revenue and market competitiveness</p> Signup and view all the answers

    What is one of the benefits of efficient inventory management?

    <p>Reduced costs</p> Signup and view all the answers

    What is the primary goal of yield management in the hospitality industry?

    <p>To maximize profits</p> Signup and view all the answers

    Which of the following industries can benefit from yield management?

    <p>Hotels and airlines</p> Signup and view all the answers

    What is the benefit of using historical data and forecasting tools in yield management?

    <p>Data-driven decision-making</p> Signup and view all the answers

    What is the result of implementing efficient yield management techniques?

    <p>Obtaining a competitive edge</p> Signup and view all the answers

    Why is yield management crucial in the hospitality industry?

    <p>Because of fluctuating demand and limited capacity</p> Signup and view all the answers

    Study Notes

    Product Yield Management in Hospitality and Tourism

    • Product yield management is a technique that increases sales by modifying costs, quantities, and other elements in response to current market demand.
    • It is crucial in the hospitality and tourism sectors due to the perishable nature of products (e.g., hotel rooms, airplane tickets, tour packages).
    • The goal is to minimize unsold capacity while maximizing average spend and occupancy.

    Key Components of Product Yield Management

    • Understanding your guests: knowing different types of guests and their needs.
    • Flexible pricing: adjusting prices based on demand.
    • Inventory control: managing room allocation to different types of guests and pricing categories.
    • Forecasting demand: using historical data and industry trends to predict demand.

    Benefits of Product Yield Management

    • Higher occupancy rates: maximizing the proportion of available rooms or lodgings occupied by paying visitors.
    • Increased revenue: adjusting prices and inventory levels in response to demand.
    • Reduced costs: efficient inventory management reduces holding costs and prevents overstocking.
    • Enhanced customer satisfaction: providing a range of pricing options and availability.
    • Competitive advantage: adjusting products and pricing to meet customer needs.
    • Data-driven decision-making: using historical data and forecasting tools to make informed decisions.

    Importance of Product Yield Management in the Hospitality and Tourism Industry

    • Crucial for businesses with limited capacity and fluctuating demand, such as hotels, airlines, cruise lines, tour operators, and theme parks.
    • Helps businesses maximize profits, reduce expenses, and raise customer satisfaction.
    • Enables businesses to stay competitive in a dynamic market by adjusting products and pricing to meet customer needs.

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    Description

    This quiz is about product yield management in the context of hospitality and tourism industry. It covers the concept of product yield management and its relation to the industry.

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