Recent

  • Show all results for ""
Revenue Management Terms and Definitions
49 Questions
100 Views

Revenue Management Terms and Definitions

Created by
@AmicableNeodymium

Questions and Answers

What does 'Consortia' refer to?

  • A type of discount rate
  • A specific hotel brand
  • Booking a reservation through a travel agent (correct)
  • A room type classification

    • What does BAR stand for?

    Best Available Rate

    What does SMERF stand for?

  • Standard Market Evaluation of Rates for Forecasting
  • Sustainable Management Education Resource Framework
  • Special Minimum Educational Rate Funding
  • Social, Military, Educational, Religious, Fraternal (correct)

    • What is SRP?

    <p>Special Rate Plan</p> Signup and view all the answers

    What does MCAT represent?

    <p>Multiple Special Rate Plans</p> Signup and view all the answers

    What can MSEG be described as?

    <p>IBT, Rack, or leisure</p> Signup and view all the answers

    What is a Global Indicator?

    <p>Transient, Group, Perm, and Non-Revenue</p> Signup and view all the answers

    What does data cleanliness refer to?

    <p>Ensuring historical data accuracy</p> Signup and view all the answers

    What type of business should not be included in a BAR rate?

    <p>Qualified business, CNRs or LNRs</p> Signup and view all the answers

    How does data cleanliness affect hotel operations?

    <p>Optimizes decision making for revenue management operations.</p> Signup and view all the answers

    Why does Hilton offer discounts?

    <p>To reach a broad audience and sell rooms at optimal rates.</p> Signup and view all the answers

    What types of discounts does Hilton offer?

    <p>Hhonors program, OTAs, corporate marketing, team travel</p> Signup and view all the answers

    What is a Merchant Channel?

    <p>Websites like Expedia where customers compare hotel rates.</p> Signup and view all the answers

    What is an Opaque Channel?

    <p>A booking site where provider names are hidden until purchase.</p> Signup and view all the answers

    Name a corporate marketing program.

    <p>Advanced purchase, bed and breakfast, romance package</p> Signup and view all the answers

    How does GRO help manage discounts?

    <p>By closing out discounts below LRV and allowing those above LRV.</p> Signup and view all the answers

    What does LRA stand for?

    <p>Last Room Value</p> Signup and view all the answers

    What is a Group Ceiling?

    <p>Rooms available for the sales team to sell to groups.</p> Signup and view all the answers

    How are group rates built in R&I?

    <p>As a convention SRP.</p> Signup and view all the answers

    What does Transient Protect mean?

    <p>Rooms saved for transient guests who book later.</p> Signup and view all the answers

    When deciding your group ceiling, what should you reference?

    <p>The amount of LRA accounts at your hotel.</p> Signup and view all the answers

    What reports help in evaluating group strategy effectiveness?

    <p>STAR report and Cognos MOS report.</p> Signup and view all the answers

    How do you establish your group rate?

    <p>Through seasonal and day of week demand.</p> Signup and view all the answers

    What is FPLOS?

    <p>Full Pattern Length of Stay.</p> Signup and view all the answers

    What does LRV represent?

    <p>The value of the last room that must reach sellout.</p> Signup and view all the answers

    What does GRO need to optimize decisions?

    <p>Unconstrained demand.</p> Signup and view all the answers

    What does 'Linked' refer to?

    <p>Floats with BAR, either as a dollar amount or percentage.</p> Signup and view all the answers

    How does GRO choose a BAR price?

    <p>By length of stay (LOS).</p> Signup and view all the answers

    What does 'Fixed' refer to?

    <p>Flare rated pricing.</p> Signup and view all the answers

    What does 'Qualified' mean?

    <p>Guests need specific qualifications to book this rate.</p> Signup and view all the answers

    What does 'Yieldable' mean?

    <p>The SRP can be opened or closed as needed.</p> Signup and view all the answers

    What does 'Uncertainty' refer to?

    <p>The likelihood or probability of forecast accuracy.</p> Signup and view all the answers

    What does 'Semi-Yieldable' mean?

    <p>Negotiated account business that can vary based on demand.</p> Signup and view all the answers

    What are 'Exceptions'?

    <p>Days that do not follow usual business trends.</p> Signup and view all the answers

    What is an information manager?

    <p>A screen in GRO for monitoring and improving revenue.</p> Signup and view all the answers

    What are 'Influences'?

    <p>User actions giving GRO more information for forecasts.</p> Signup and view all the answers

    What is a Demand Override?

    <p>A signal to GRO about demand changes.</p> Signup and view all the answers

    What does 'Override' mean?

    <p>User action that limits GRO's decision-making ability.</p> Signup and view all the answers

    What is a Wash Override?

    <p>Alerts GRO about wash in groups.</p> Signup and view all the answers

    What does 'Cost of Walk' refer to?

    <p>Influenced at the room type level.</p> Signup and view all the answers

    What are the four components of the revenue optimization cycle?

    <p>Forecast, Optimize, Control, Monitor.</p> Signup and view all the answers

    At what level does GRO forecast?

    <p>Forecast group level.</p> Signup and view all the answers

    What is the end goal of revenue management?

    <p>To increase REVPAR and REVPAR index.</p> Signup and view all the answers

    How does GRO indicate the highest BAR is restricted due to LRV?

    <p>Teal bubble.</p> Signup and view all the answers

    How does GRO indicate the highest BAR is restricted as a result of LRA demand?

    <p>Blue circle with white exclamation.</p> Signup and view all the answers

    Which forecast groups should you verify if doubts arise about a BAR restriction?

    <p>Semi-yieldable forecast group.</p> Signup and view all the answers

    How often should you perform a forecast review for the next 365 days?

    <p>Monthly.</p> Signup and view all the answers

    How often should you use the information manager to manage exceptions?

    <p>Daily.</p> Signup and view all the answers

    How often should you perform a forecast review for booking windows?

    <p>Weekly.</p> Signup and view all the answers

    Study Notes

    Revenue Management Terms and Definitions

    • Consortia: Refers to booking reservations through a travel agent.
    • BAR: Stands for Best Available Rate, which is applied when a guest does not qualify for discounts and books the retail rate on Hilton.com.
    • SMERF: Acronym for Social, Military, Education, Religious, Fraternal segments in business.
    • SRP: Special Rate Plan, the lowest price level Hilton uses to track business.
    • MCAT: Classification consisting of one or more SRPs.
    • MSEG: Classification that includes IBT (Internet Best Rate), Rack, or Leisure rates.
    • Global Indicator: Classification including transient, group, perm, and non-revenue categories.
    • Data Cleanliness: Ensuring historical data accuracy by coding reservations correctly.

    Business Management Considerations

    • Business Exclusions from BAR: Qualified business, CNRs (Corporate No-Show Rates), and LNRs (Leisure No-Show Rates) should not be included.
    • Impact of Data Cleanliness: Accurate data allows Ground Revenue Optimization (GRO) to make optimal decisions, leading to realistic performance results and strategic focus.
    • Purpose of Discounts: Hilton provides discounts to cater to a diverse audience, ensuring competitive room sales beyond just BAR.
    • Discount Types Offered by Hilton: Includes the Hhonors program, Online Travel Agents (OTAs), corporate marketing, and team travel.

    Pricing and Room Management

    • Merchant Channel: Platforms such as Expedia and Hotels.com, enabling customers to compare hotel rates and features before booking.
    • Opaque Channel: Booking sites where hotel identities are hidden until after a non-refundable purchase is made.
    • Corporate Marketing Programs: Examples include Advanced Purchase, Bed and Breakfast, and Romance Package offers.
    • GRO's Role in Discounts: Discounts above Last Room Value (LRV) are available for purchase; those below are closed out.
    • Last Room Value (LRA): Ensures discount rates are available when BAR rates are sold.

    Group and Transient Reservations

    • Group Ceiling: Indicates the number of rooms available for the sales team to sell to groups.
    • Transient Protect: Rooms reserved for transient guests at potentially higher rates; these cannot be allocated to groups.
    • Group Rate Establishment: Based on seasonal trends and specific day of the week demand.

    Revenue Optimization Strategies

    • Full Pattern Length of Stay (FPLOS): Represents stay restrictions and allows varying price points for guests arriving on the same date.
    • Revenue Management Cycle: Consists of the four components: Forecast, Optimize, Control, and Monitor.
    • Monitoring Techniques: Utilize STAR reports and Cognos MOS reports to assess group strategy effectiveness.
    • Forecasting Level: GRO forecasts at the group level due to the broad nature of SRPs and the diversity of MCATs.

    Operational Guidelines

    • Forecast Review Frequency: Monthly for a full year and weekly for booking windows; daily for managing exceptions.
    • GRO Indicators: Teal bubbles indicate restrictions due to LRV; blue circles with white exclamation points signal LRA demand restrictions.
    • Conclusion Aim of Revenue Management: Focuses on maximizing REVPAR (Revenue Per Available Room) and REVPAR index to enhance total revenue outcomes.

    Studying That Suits You

    Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

    Quiz Team

    Description

    Test your knowledge on key revenue management terms and their definitions in the hospitality industry. This quiz covers essential acronyms and classifications that are critical for effective hotel pricing and booking strategies. Perfect for students and professionals looking to enhance their understanding of revenue management concepts.

    More Quizzes Like This

    Estrategias de marketing en la industria hotelera
    10 questions

    Estrategias de marketing en la industria hotelera

    ProductiveAwe avatar
    ProductiveAwe
    Revenue Management Principles
    10 questions

    Revenue Management Principles

    ConfidentSelenite avatar
    ConfidentSelenite
    Perishability in Tourism
    98 questions

    Perishability in Tourism

    CourteousDogwood avatar
    CourteousDogwood
    Hotel Booking Curves and Revenue Management
    22 questions

    Hotel Booking Curves and Revenue Management

    TransparentNeon avatar
    TransparentNeon
    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser