Revenue Management Quiz

According to the text, revenue management is a specialized pricing discipline applied to industries with which of the following characteristics?

• Relatively fixed capacity, time-perishable inventory, time-variable demand, low cost of sale

• Flexible capacity, time-perishable inventory, time-variable demand, low cost of sale

• Flexible capacity, non-perishable inventory, time-variable demand, high cost of sale

• Relatively fixed capacity, non-perishable inventory, time-variable demand, high cost of sale

What was the first industry to apply revenue management after deregulation in the 1980s?

• Cruise lines

• Airlines

• Rental cars

• Hotels

What is one of the characteristics of revenue management mentioned in the text?

• Non-variable demand

• Flexible capacity

• Low demand for products

• High cost of sale compared to fixed costs

What was the original purpose of yield management in the airline industry?

• To control the number of discounted fares sold

• To increase the number of full-fare seats

• To simplify fare structures

• To reduce the number of available seats

What is the purpose of fences in the context of yield management in the airline industry?

• To increase the number of available seats

• To simplify fare structures

• To discourage booking of lower fares

• To encourage booking of lower fares

What is one of the trends that emerged in revenue management since the original algorithms were developed?

• Decreased price transparency in the market

• Strict fences on rates or fares in hotels

• Reduced distribution costs for hotels

• Increased number of fare levels in airlines

What is an example of an emerging data source for revenue management mentioned in the text?

• Customer age

• Weather forecasts

• Net rates/distribution costs

• Employee salaries

What is the purpose of considering airline lift in revenue management for hotels?

• To determine the number of available rooms

• To reduce distribution costs

• To forecast future demand

• To simplify fare structures

What is the significance of search data in revenue management analytics?

• It is a leading indicator of demand into a market

• It is used to calculate customer lifetime value

• It indicates the number of available rooms

• It determines the net rates for distribution costs

What is the term used for any type of analytics used to set a price that optimizes hotel revenue?

• Price optimization

• Revenue management analytics

• Market segmentation

• Revenue optimization