Key Terms and Concepts Flashcards
demand
the amount of good or service that a purchaser is willing and able to buy for any given price at any given time
capacity
the amount of space that can be filled
revenue management
the act of skillfully, carefully, and tactfully managing, controlling, and directing capacity and sources of income, given the constraints of supply and demand
4Ps of marketing
Product, price, promotion, place
Supply
the amount of a good or service that a seller is willing and able to sell for any given price at any given time
booking pace
refers to the pattern and tempo (rate) of receipt and acceptance of advanced reservations
first-level adopter
an organization which tries out new innovations first, before those innovations are mass-produced or disseminated to the market
load factor
the percentage of seats sold (common airline term)
yield
refers to the amount of revenue received by the airline for each mile flown per passenger (also known as passenger mile)
yield management
the precursor to what we now refer to as revenue management. A formalized method of managing and controlling revenue
B2B
Business-to-business e-commerce
B2C
business-to-consumer e-commerce
branding
placing an identifying mark or logo on a product produced by a specific organization or associating that brand with a service performed by that organization
brick and mortar store
the local building that houses a retail establishment
bundling
combining products and services to create a package
C2C
consumer-to-consumer e-commerce
channel
refers to the source of the booking
customer-centric approach
any marketing or operational effort focused on the needs, wants, and desires of an organization’s customers
data-mining
the process of continually digging deeper into data captured by a marketing intelligence system
dynamic packaging
a new customer-centric approach to packaging. Hospitality providers may vary the products and services bundled in package to suit the needs of the individual consumer
e-commerce
the coming together of buyers and sellers on the internet
market
any place, real or virtual, in which a buyer and seller may come together to exchange goods and services
marketing
the process of satisfying the wants, needs, and desires of customers
marketing intelligence
practice of conducting primary research and analyzing secondary research to understand the characteristics of a market
niche
a small, specific market
online store
a retailer’s website
pace
refers to a unit of time measurement
per diem
per day
perceived value
the value of a product or service as perceived by the consumer that may include material value and quality, benefits received from ownership or usage, and esteem associated with the product or service
primary research
research designed and conducted by an organization for its own purposes
prosumer
a term by Alvin Toffler to refer to a customer that was part producer and part consumer of the desired product or service. A second meaning for the term prosumer has increasingly appeared in discussions of consumer behavior.
secondary research
work conducted and published by other organizations
total acquisition cost
may apply to either a customer or an organization. To a customer total acquisition cost may include intrinsic costs such as price, and extrinsic costs, such as the time it takes to make a purchase and the cost of gasoline it requires to get it from the store. To an organization it means the cost of acquiring the customer, including the costs of marketing, the costs of taking reservations, and the costs of actually serving the guest. So the perceived product or service value must be equal to or exceed the total acquisition cost to produce total value to the consumer
total customer value
= perceived product or service value - total acquisition cost
acquisition cost
meaning to customer:
acquisition cost may include intrinsic costs, such as price, and extrinsic costs such as the time it takes to make the purchase and the cost of gasoline it requires to get to and from the store
meaning to organization:
acquisation cost means the cost of acquiring the customer, including the costs of marketing, taking reservations, and the cost of actually serving the guest
ancillary purchase
a supplementary or additional purchase made in a series of transactions
contract
binding agreement that specifies rates, terms, anticipated volume, minimum usage and effective dates
customer relationship management CRM
strategies and tactics developed to acquire and retain customers
demography
the study of the characteristics of a population. Common characteristics considered include age, gender, marital status, education, occupation, income, race, religion and nationality
displacement
replacing one customer for another
displacement analysis
an analysis conducted to determine the total customer worth of competing pieces of business. The piece of business generating the highest customer worth would be chosen on most cases
FIT
foreign or independent traveler
environment scanning
constantly monitoring and assessing the external environment to spot changes and emerging trends
free sell
anytimes rooms are needed by the wholesaler outside of those originally blocked, those rooms are considered to be sold based upon free space, in other words free sell.
A wholesaler may also enter into a free- sell agreement with a hotel that states that any time rooms are available, and that hotels are interested in taking a reservation at the wholesale rate, the reservation will be accepted
frequent traveler program
programs designed to reward loyal patronage and induce repeat business
group business
business involving more than two individuals coming together for a common reason
locally negotiated rate LNR
corporate negotiated rate business
market segmentation
the practice of deviding a market into smaller specific segments sharing similar characteristics
primary purchase
the main purchase made during a single or series of transactions
propensity Y
future propensity to purchase
rack rate
full rate
SMERFE
a market segment comprised of Social Military Educational Religious Fraternal Entertainment business
total customer worth
Primary revenue
+ Ancillary revenue
- Acquisition cost
x propensity
transient
an individual traveling, dining, attending a game or performance, or staying alone. A temporary individual hospitality customer
VFR
visiting friends and relatives
wash factor
a predetermined percentage of usage based upon historical data and experience
wholesaler
a person who purchases individual travel components at a discount based upon volume, and repackages the components and sell them to a consumer on a retail basis, either directly through the wholesale organization or via a travel agent or tour operator
Generations in segmentation
- silver-haired seniors (silent generation)
- baby boomers
- baby busters (generation X)
- baby boomlets (generation Y / echo boomers)
- the millennials
silver-haired seniors
the silent generation
comprised of all individuals born prior to 1946
baby boomers
born between the years of 1946 and 1964, the baby boomers are not only the largest generational segment of nearly 78 million members, they are also the most powerful in terms of both wealth and propensity to spend
baby busters
Generation X
referring to people born between 1965 and 1976. As a group they only number 45 million, a huge slow down from the birth rates generated by their grandparents
baby boomlets
generation Y / echo boomers
Defined as those nearly 72 million people born between 1977 and 1994. They are the children of the younger population of baby boomers. As a group the Echo boomers are almost as large in population as the baby boomers
the millennials
Children born after 1994. Children born at the turn of the century, this time the turn of the new millennium
