Intro to Revenue Management
Why an excessive internal focus on profits is not good
Neglect the customer or another really good answer
What is "price"
Price is the amount of money charged for a good or a service.
Selling price minus costs = ??? (seller's view of sale)
profit (tangible benefit)
Differential pricing is the practice of a seller charging ____ prices to ____ buyers for the ___ product
different, different, same
What movie is about toys coming to life?
Toy Story
Why is revenue management critical to a hotel's success
Maximizes profits or another really good answer
Another name for "meeting room price is "meeting _____ _______"
room rental
Perceived value minus _____ = personal profit (buyer's view of sale)
Selling price
The difference between the amount a buyer would be willing to pay for a product or service and the amount they are charged is called
consumer surplus
May the force be with you ! (guess the movie)
Star Wars
Rooms revenue typically represents what % of overall revenue
65% (55% to 75% is acceptable)
A pricing strategy in which the buyer must pay a price for the ability to make additional purchases is called
Two-tiered price
As prices increase on e Bay, what happens next?
Buyers drop out
The specific requirements that describes who is and is not eligible for a special pricing offer is called a
price fence
Which is heavier, Lions or Tigers?
Tigers
Revenue Management is defined as involving aspects of
Marketing, Operations and Financial Management
Define fixed cost
An expense that remains constant despite increases or decreases in volume
Buyers’ perceptions about price are more important than____ _____ _____
those of sellers
"Students" are an example of a ____ _____
customer characteristic (target market or market segment)
Taste the Rainbow (is the slogan of)
Skittles
Effective managers who oversee revenue generating departments must understand the importance of
revenue management
The higher the demand for product, the more of it will be produced by sellers is called
Law of Supply
Buyers, making purchases, will ultimately evaluate three factors that affect their perceptions of value
Quality, service and price
A system of selling to consumers without the use of an intermediary
direct channel
Who sings the song "Shake It Off"?
Taylor Swift