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Rooms Inventory > Knowledge > Flashcards

Knowledge Flashcards

1
Q

Distribution Channel management

A

Process of delivering a product from the manufacturer to the end customer

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2
Q

Businesses that generate hotel rooms reservations

A
  • Travel agents
  • Online travel agent
  • Tour Operator
  • Hotel Reservation websites
  • Travel review sites
  • Opaque booking sites
  • Airbnb
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3
Q

Travel agents

A
  • receive 10-15% commission
  • makes the hotel booking for the guests
  • uses GDS
  • make money by commission from the hotel
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4
Q

Online travel websites

A
  • website offers packages for holidays
  • uses GDS
  • large computer website
  • eg. booking.com
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5
Q

Tour operator

A
  • group travel programs
  • markets directly to consumer
  • hotel has a number of rooms which they sell for a lower rate
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6
Q

Hotel reservation website

A
  • focus on selling hotel rooms

- loyalty program

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7
Q

Travel review sites

A
  • platform to share your experience

- gives the options to book trips

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8
Q

Opaque booking sites

A
  • guest bid for a room
  • guest only know price,stars, and location
  • hotels give up to 30-60% discounts
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9
Q

Airbnb

A

-low commission for home owners

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10
Q

PMS - property management systems

A

Controls onsite property’s

  • POS( point of sales)
  • CRS ( central reservations systems )
  • Eg. opera
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11
Q

CRS - central reservations systems

A

Manage hotels distribution and hotel room booking
Via travel agents

  • supply attractive photos and creative site
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12
Q

GDS - Global Distribution systems

A 
A reservation platform to enable reservations 
4 major GDP companies:
-Sabre 
-Galileo
-amasdeus
-worldspan

Travel agents use this to book hotels,airlines etc

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13
Q

WBE - web booking engining

A

Let’s guests shops for rooms and complete reservations

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14
Q

Channel management systems

A

Controls the hotels inventory and rates across all distribution channels

Should reduce labour costs and improve efficiency by providing a way to control multiple channels

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15
Q

How does the channel manager work for the hotel?

A
  • deducts rooms sold via one website

- helps you create rate parity

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16
Q

GDS users

A
  • travel agents
  • Internet travel sites
  • opaque travel sites
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17
Q

Rate parity

A

The distribution channel of a hotel should reflect the same rates for the same conditions for a particular room type

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18
Q

Regulations for five star hotel

A
  • at least two people in the reception
  • Night receptionist
  • Three types of shift,Early, late, night
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19
Q

When do we use forecasting

A
  • When you make plans to build or buy a hotel
    Investment, return on investment
  • when you are managing the hotel
    Occupancy, and room rates, costs, staffing
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20
Q

Front office records

A
  • confidential information at all times kept within the hotel
  • individual guest history profile
21
Q

Pick up rate

A

The difference between the number of rooms expected by group booking and the actual number of rooms booked by the group

22
Q

Hotel pick up record

A

Booking pace of your hotel

Recorded on every first day of the month the monthly occupancy for every future month

23
Q

Hotel pricing

A

-to price and understand how the consumer reacts to the pricing strategy
-marketing decisions need to be taken
-The cost structure:
Fixed costs [high - low]
Variable costs [high - low]

24
Q

Effects of price on market

A
  • High prices may reduce demand
  • May attract high guests and brand your hotel differently
  • Price equals creates competition
  • Low prices may fail to cover costs
25
Q

Positioning your price

A
  1. Skim
  2. Match
  3. Surround
  4. Undercut
  5. Penetrate
26
Q

Skim

A
  • Set your price is higher than the competition does
  • So you can skim off the higher paying customer in hope of getting people who are willing to pay a bit more
  • attracts luxury and more expensive that majority cannot afford
27
Q

Match

A
  • Set one right to match the competition and another right slightly higher
  • Higher rates for better rooms
28
Q

Surround

A
  • all for one price that is lower than the competition and one price is higher
  • To attract bargain seekers
29
Q

Undercut

A
  • Offer a price is the same as your competition and lower one as well
  • In hope of attracting more customers
30
Q

Penetrate

A
  • set your rates lower than the competition

- In hope of getting a customers to try your product

31
Q

Rate fences

A

Setting special conditions to receive special lower price

Eg. book in advance, pay in advance p,stay more then 3 nights

32
Q

Costs approaches

A

Tangible criteria and intangible criteria

33
Q

Tangible criteria

A
  • type of room
  • size of rooms
  • location and view
  • level of service
34
Q

Intangible criteria

A
  • season
  • weekend or weekday
  • Time of arrival
  • Inclusive or non-inclusive
  • Per person or per room
35
Q

Establishing room rates

A

Room rates reflect service expectations to the hotels target market

  1. Market condition approach
  2. Rule of thumb approach
  3. Hubbart formula Ford/ bottoms Up Approach
36
Q

Market condition approach

A
  • commonsense approach
  • often used but has many problems
  • Allows the Local market to determine the rate
37
Q

Rule of thumb approach

A
  • set the minimum average room rates at $1 for each $1000 of construction and furnishing costs per room
  • assume 70% of occupancy
  • Doesn’t include other hotel services
38
Q

Hubbart formula/Bottoms up approach

A
  • What is the target rather than actual room prices

- Needs management estimates

39
Q

Method for bottoms Up approach

A

– Calculate desired profit
– Calculate pretax profits
– Calculate fixed charges and management fees
– Calculate undistributed operating expenses
-estimate non-room operating department profit/loss
-calculate required rooms division income
– Determine room division income
– Calculate average room rate

40
Q

Room rate economies

A

The process by which revenue managers price rooms while considering how consumers may react to the pricing strategy

41
Q

Benefits of revenue management

A
  • improved forecasting
  • Approved seasonal pricing and inventory decisions
  • Determine discount activity
42
Q

Revenue management methods

A
  1. Capacity management
  2. Discount allocation
  3. Duration control
43
Q

Capacity management

A
  • Designed to fix capacity of the hotel rooms in the most optimal way
  • balances risk of overbooking
44
Q

Discount allocation

A
  • Offering discounts on hotel rooms

- Restricts time period And product mix available at reduced or discounted rates

45
Q

Duration control

A
  • Special conditions/restrictions to the duration of the stay
  • 1 to 2 days as there’s a big event in the town
  • Reaches more occupancy
46
Q

Rack rates

A
  • The published rates
  • maximum property can charge for a room
  • Maximum possible price
47
Q

Elements of revenue management strategies

A
  • group room sales
    business rooms
  • transient rooms sales
    Individual booking
48
Q

Important features of distribution channel management

A
  • be visible
  • attractive photos
  • languages
  • booking module

Rooms Inventory (2 decks)

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