Revenue Management Quiz #1 With Complete Solutions

Define Revenue Management according to phillips (2005). - ANSWER-Revenue management refers to the strategy and tactics used by a number of industries to manage the allocation of their capacity to different fare classes over time in order to maximize revenue. Define Revenue management according to Cross (1997). - ANSWER-Revenue management is the application of disciplined tactics that predict customer behavior at micro-market level and optimize product availability and price to maximize revenue growth. What are the core concepts of Yield Management described in Kimes (1989)? - ANSWER-1. Right product/service 2. At Right Time 3. For the Right Price 4. To the Right customer 5. Through the right distribution channel How do you set the Right product/service? - ANSWER-1. The Definition/dimensions of Service 2. Service Request: Anticipate Reservation/Walk-in; (How?) Channels; (When?) Duration of stay in fluctuating Demand = Multiple stays & LeadTime 3. Service Delivery/Consumption: (What?) refundable/Not = $ Low/$High