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?

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

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

Weather Signup and view all the answers

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

Different types of guests Signup and view all the answers

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

Last-minute bookings Signup and view all the answers

What does yield management help to achieve?

Minimization of unsold capacity while maximizing average spend and occupancy Signup and view all the answers

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

To maximize revenue by effectively managing limited resources Signup and view all the answers

What is the first step in product yield management?

Understanding your guests Signup and view all the answers

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

To allocate rooms effectively to reduce vacant spaces Signup and view all the answers

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

Higher occupancy rates Signup and view all the answers

What technique involves giving client segments special offers or discounts?

Rate fencing Signup and view all the answers

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

Overbooking Signup and view all the answers

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

To predict how busy the business will be in the future Signup and view all the answers

What is the last available room in a hotel called?

Last-room availability Signup and view all the answers

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

To prevent overbooking Signup and view all the answers

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

Increased revenue and market competitiveness Signup and view all the answers

What is one of the benefits of efficient inventory management?

Reduced costs Signup and view all the answers

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

To maximize profits Signup and view all the answers

Which of the following industries can benefit from yield management?

Hotels and airlines Signup and view all the answers

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

Data-driven decision-making Signup and view all the answers

What is the result of implementing efficient yield management techniques?

Obtaining a competitive edge Signup and view all the answers

Why is yield management crucial in the hospitality industry?

Because of fluctuating demand and limited capacity 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.