Workshop 1 Flashcards
What is revenue management?
A technique to optimise income revenue from a fixed, but perishable inventory. The challenge is to sell the right rooms to the right customer at the right time for the right price, in the right placer.
What are individual guests also called?
transient guests
What are different approaches for segmentation?
- Optimising business mix
- Displacement analysis
What is optimising business mix?
What type of guest, what type of price
What is displacement analysis?
Selecting the right customer at that time (e.g. 2 requests)
What are the elements to determine a price?
- Competitors
- Willingness to pay
- Location (e.g. beach hotel> more guests/demand in summer)
- Price leader / price follower
- Product
- Cost based & value based pricing
- Economics (how is the economy doing)
What are the tools to determine ‘‘the right price’’
- Analyze segmentation
- Reviews
- SWOT
- Competitive analysis
- Bench marking
- Questionnaires
What is customer value:
from the customer perspective> if I pay this amount, do I get the value I expect for this money
What is customer worth
from the company perspective> what is the value the customer brings in
What is displacement analysis?
A tool an organization uses to asses customer worth
What is the formula for customer worth/value?
Room revenue
Ancillory revenue (other rev) +
=TOTAL REVENUE
acquisition costs (costs made in order to get customer to the hotel -
X number of visits
= Value/worth
What are 4 factors that impact the elasticity of demand
- events
- subsitute
- time factor (high/low season)
- budget
