Revenue Management Flashcards
6 cards from real HOSPITALITY practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Revenue Management flashcards as text
What is the 'rate fence' strategy in hotel revenue management?
Answer: Conditions guests must meet to qualify for a specific rate
Rate fences are restrictions or conditions attached to discounted rates to prevent guests willing to pay higher rates from taking advantage of lower ones. Examples include advance purchase requirements, non-refundable policies, minimum stay restrictions, and membership requirements.
What does 'displacement analysis' help a revenue manager determine?
Answer: Whether to accept a group booking when it may displace higher-rated transient guests
Displacement analysis calculates whether the revenue from a group booking (at a negotiated rate) is greater or less than the transient (individual) revenue that would be lost by blocking those rooms for the group during that period.
Which metric measures total revenue generated per available room, including food, beverage, and other ancillary revenue?
Answer: TRevPAR
TRevPAR (Total Revenue Per Available Room) expands on RevPAR by including all revenue streams — rooms, food and beverage, spa, parking, and other ancillary revenue — divided by total available rooms. It provides a fuller picture of property-wide revenue performance.
What is a 'shoulder period' in hotel demand forecasting?
Answer: Transition periods between peak and off-peak demand
Shoulder periods are transitional demand periods between a hotel's peak season and low season. Demand is moderate and hotels often use targeted promotions and moderate rates to optimize occupancy during these periods.
What does the 'channel manager' technology do for a hotel?
Answer: Distributes room inventory and rates across multiple online booking platforms simultaneously
A channel manager is software that connects the hotel's property management system (PMS) to multiple online distribution channels (OTAs, GDS, direct booking engine) and automatically updates room availability and rates across all channels in real time to prevent overbooking and rate parity violations.
What is 'rate parity' and why do OTAs require it?
Answer: Hotels charging the same rate on all distribution channels
Rate parity is the practice of maintaining the same room rates across all distribution channels (OTA, GDS, direct booking). OTAs historically required rate parity clauses in contracts to prevent hotels from undercutting their listed prices on direct channels, protecting the OTA's value proposition.