18 Questions
What method do hotels and restaurants use to match demand with capacity by taking reservations in advance?
Reservations
According to David Maister, what type of waits are longer than equitable waits?
Unfair waits
How do managers handle situations where capacity exceeds demand and guests are willing to wait?
By implementing queuing systems
What pricing method uses price as a means of matching demand with capacity?
Revenue Management
During slow periods, what can hotels effectively use to build business?
Promotional Events
What does shifting demand involve when a manager has flexible dates to work with?
Adjusting dates to off-peak periods
What is one way to decrease capacity to match lower demand in the hospitality industry?
Schedule repairs and maintenance during the low season
Why is managing capacity and demand important in hospitality marketing?
To take full advantage of peak season
What is one of the key functions of managing capacity and demand in hospitality marketing?
To manage capacity and demand effectively
How can businesses accommodate short-term demand fluctuations?
By adequately adjusting operating systems
What does capacity management allow a business to do?
Increase its capacity as needed
How do restaurants manage demand during slow days?
Offer specials on slow days
What is one benefit of involving the customer in service operations?
Expands the number of people one employee can serve
How do self-service technologies (SSTs) impact service operations?
Enable customers to serve as the company's employee
What is a strategy to manage demand when different service areas experience varying levels of demand?
Cross-training employees to shift them as needed
How can managers expand capacity during busy periods in seasonal businesses?
Using part-time employees to expand capacity
What is a way for businesses to accommodate short-term demand when facing space limitations?
Sharing or renting extra facilities and equipment
What is the vision of DHVSU regarding producing professionals for sustainable development?
To become a lead university in ASEAN Region for globally competitive professionals
Study Notes
Demand and Capacity Management
- When demand exceeds capacity, managers raise prices to lower demand.
- Reservations are used to monitor demand, especially in hotels and restaurants.
- Overbooking is a method used to match demand with capacity, commonly used in hotels, restaurants, trains, and airlines.
- Revenue Management is a pricing method that uses price as a means of matching demand with capacity.
Managing Waiting Lines
- According to David Maister, unoccupied time feels longer than occupied time.
- Unfair waits are longer than equitable waits.
- Uncertain waits are longer than known, finite waits.
Shifting Demand
- Managers can shift demand to a period when the hotel is not projected to sell out and needs the business.
- Demand for banquets and meetings can be shifted.
Creating Promotional Events
- Promotional events can increase demand or shift the demand curve to the left.
- Creative promotions can be effective in building business during slow periods.
Increasing Capacity
- Involving the customer in the service-delivery system can increase capacity.
- Self-service technologies (SSTs) allow customers to serve as the company’s employee, increasing capacity.
- Cross-training employees can shift employees to increase capacity.
- Using part-time employees can expand capacity during busy periods.
- Renting or sharing extra facilities and equipment can increase capacity.
Other Strategies
- Scheduling downtime during periods of low demand can decrease capacity to match lower demand.
- Changing the service-delivery system can enable businesses to operate at maximum capacity during peak season.
- Managers can use price to create or reduce demand, such as offering specials on slow days.
Test your knowledge on revenue management methods such as using reservations, overbooking, and queuing to match demand with capacity. Learn about how hotels, restaurants, trains, and airlines utilize pricing strategies for revenue management.
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