Hospitality Revenue Management 2

Question 1

What is the 'rate fence' strategy in hotel revenue management?

Accepted Answer

Conditions guests must meet to qualify for a specific rate

Answer

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.

Question 2

What does 'displacement analysis' help a revenue manager determine?

Accepted Answer

Whether to accept a group booking when it may displace higher-rated transient guests

Answer

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.

Question 3

Which metric measures total revenue generated per available room, including food, beverage, and other ancillary revenue?

Accepted Answer

TRevPAR

Answer

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.

Question 4

What is a 'shoulder period' in hotel demand forecasting?

Accepted Answer

Transition periods between peak and off-peak demand

Answer

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.

Question 5

What does the 'channel manager' technology do for a hotel?

Accepted Answer

Distributes room inventory and rates across multiple online booking platforms simultaneously

Answer

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.

Hospitality and Tourism Practice Test

Hospitality and Tourism Practice Test

Hospitality Revenue Management 2