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Questions and Answers
What does efficient pricing primarily reflect?
What does efficient pricing primarily reflect?
Which of the following is NOT a condition for using revenue management techniques?
Which of the following is NOT a condition for using revenue management techniques?
What is meant by the term 'Average Room Rate (ARR)'?
What is meant by the term 'Average Room Rate (ARR)'?
How should inventory be managed to maximize revenue in hospitality?
How should inventory be managed to maximize revenue in hospitality?
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What does 'Revpar' stand for in hospitality management?
What does 'Revpar' stand for in hospitality management?
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What is the primary goal of the reservations department in hospitality management?
What is the primary goal of the reservations department in hospitality management?
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What does revenue management in hospitality primarily focus on?
What does revenue management in hospitality primarily focus on?
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Which of the following is a basic task of the reservations department?
Which of the following is a basic task of the reservations department?
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What aspect should be considered when determining the rate policy in hospitality?
What aspect should be considered when determining the rate policy in hospitality?
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Which situation represents a potential issue in reservations management?
Which situation represents a potential issue in reservations management?
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What does the 'correct customer' refer to in revenue management?
What does the 'correct customer' refer to in revenue management?
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What is one of the contractual considerations in the reservations process?
What is one of the contractual considerations in the reservations process?
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What would 'extensions of stays' refer to in reservations management?
What would 'extensions of stays' refer to in reservations management?
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Study Notes
Introduction to Hospitality Management: Reservations
- Reservations management focuses on maximizing occupancy and income.
- A room not sold today cannot be sold tomorrow; it's a perishable product.
- Rate management (revenue management) is crucial.
- The management and coordination of reservations depend on sales and marketing policies, contracts with tour operators, and contracts with conferences and conventions.
Basic Tasks
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Booking Control:
- Availability and occupancy forecasts
- Room blocks
- Allotments and release dates
- Overbooking control
-
Reservations Management:
- Controlling reservations (changes, cancellations, new reservations)
- Correcting personal information/contact data
- Statistical data, rate codes, market segmentation, origin
-
Rate Policy:
- Demand
- Type of customers
- Costs
- Competitors
-
Revenue Management:
- Developing sales strategies adapted to different market segments.
Basic Functions
-
Rates Knowledge:
- Public rates
- Special fairs, exhibitions, and conferences
- Special group rates
- Business/corporate rates
-
Contracts and Conditions:
- Allotments (quotas)
- Commissions and markups
- Release dates and complimentary rooms (free rooms)
Process to Follow
- No-shows
- Cancellations
- Overbooking
- Changes and cancellations
- Denial of booking
- Extensions of stays (overstays)
- Reductions of stays (understays)
Income Management (in the Hotel Industry)
- Revenue management is selling the correct service to the correct customer at the correct price to maximize total revenue.
Pricing
- Efficient price: maximum price a customer is willing to pay.
- Factors influence price, but the customer perceives it in two ways.
Revenue Management Techniques
- Use revenue management when:
- Capacity is fixed
- Demand can be segmented
- Product is perishable
- Product can be sold before consumption
- Demand is elastic
Management Inventory
- Create products and rates for specific market segments.
- Control the number and type of discounts.
- Establish barriers and controls.
Occupancy Indicators
- Room Availability: Number of rooms available.
- Total Room Revenue: Income related to rooms sold.
- Average Room Rate (ARR): Average rate of rooms sold.
- RevPAR: Revenue per available room (average revenue).
- Wait List
- Rooming list
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Description
This quiz covers key concepts in managing reservations within the hospitality industry. You'll learn about the significance of booking control, rate management, and revenue strategies that drive occupancy and income. Explore how sales and marketing policies play a role in successful reservations management.
