Final Exam of The Fundamentals of Revenue Management The Cornerstone of Revenue Strategy
1.
Question 1
Monitoring Pick-Up
A 600-room hotel on the stay-date of December 30 has OTB numbers, for the entire property, shown below:
| Date | Property OTB |
| October 19 | 20 |
| October 29 | 411 |
Based on this 10-day pick-up, should the property yield up, lower, or keep the rates the same for the yieldable rates?
2.
Question 2
Monitoring Pace
A 150-room hotel has demand numbers for the stay date of November 1, for the entire property, shown below:
| Date | Demand |
| September 14 | Unconstrained Demand over 100 % |
| September 21 | Unconstrained Demand over 100 % |
Based on this Week-over-Week variance in demand, should the property yield up, lower or keep the rates the same for the yieldable rates?
3.
Question 3
Conversion Rate
A 225-room hotel has property-direct Internet booking engine conversation for the stay of December 14, for the entire property, shown below:
| Conversion Rate | |
| Normal | 5% |
| Current | 15% |
Based on this conversion rate, should you yield up, lower, or keep the rates the same for rates on your booking engine?
4.
Question 4
Group
A 200-room hotel has group OTB numbers for the stay date of December 15, for group OTB, shown below, the property lost a wedding group:
| Date | Group OTB |
| August 15 | 50 |
| August 22 | 10 |
Based on losing this large group block should you yield up, lower, or keep the rates the same for your yieldable rates?
5.
Question 5
LRA increase
A 250-room hotel has corporate LRA OTB numbers for the stay date of December 21, for the entire property, shown below:
| Date | Corporate LRA OTB |
| August 7 | 20 |
| August 14 | 150 |
Based on this large 7-day pick-up should you yield up, lower or keep the rates the same (and implement restrictions) for your corporate rates?
6.
Question 6
Monitoring Pace & Reputation
A 150-room hotel has demand numbers for the stay date of November 1, for the entire property, shown below. Additionally the property has been ranked above the comp set on online review scores.
| Date | Demand |
| September 14 | Unconstrained demand over 100% |
| September 21 | Unconstrained demand over 100% |
Based on this Week-over-Week variance in demand should the property yield up, lower, or keep the rates the same for the yieldable rates?
7.
Question 7
Transient
A 200-room hotel has group OTB numbers for the stay date of December 15, for the transient segment, shown below. Note: the property is pacing to sell out and transient pick-up is average.
| Date | Transient OTB |
| August 15 | 75 |
| August 22 | 90 |
Based on this data, should you yield-up, lower or keep the rates the same for your transient rates?
8.
Question 8
OTA
A 225-room hotel has group OTB numbers for the stay date of December 22, for the OTA OTB, shown below. Note: the property is pacing to sell out and OTA pick-up is high.
| Date | OTA OTB |
| July 15 | 75 |
| July 22 | 150 |
Based on this data should you yield up, lower or keep the rates the same for your OTA rates?
9.
Question 9
Corporate nLRA
A 400-room hotel has a corporate nLRA OTB for the stay date of December 30, for the corporate OTB, shown below. Note: the hotel is forecasted to sell-out.
| Date | nLRA OTB |
| September 10 | 20 |
| September 17 | 150 |
Based on this data, knowing you cannot yield rates, should you put a length-of-stay restriction on the corporate segment?
10.
Question 10
Unexpected Group
A 200-room hotel has group OTB numbers for the stay date of December 15, for group OTB, shown below; note this was not an expected group:
| Date | Group OTB |
| August 15 | 10 |
| August 22 | 70 |
Based on losing this group pick-up, should you yield up, lower, or keep rates the same for you yieldable rates?
11.
Question 11
Expected Group
A 200-room hotel has group OTB numbers for the stay date of March 15, for group OTB, shown below; note this was an expected group (meaning you forecasted the other segments knowing this group was coming):
| Date | Group OTB |
| January 2 | 10 |
| January 16 | 50 |
Based on losing this group pick-up should you yield up, lower, or keep rates the same for your yieldable rates?
12.
Question 12
Cost Per Occupied Room
On October 15, a 300-room hotel has a current price of $59 on their website for the stay date of November 22. Their cost per occupied room (or cleaning cost of the room) is $59.
Based on this information, should the hotel consider lowering rates?
13.
Question 13
Monitoring demand
A 150-room hotel has demand numbers for the stay date of November 1, for the entire property, shown below:
| Date | Demand |
| September 14 | Unconstrained Demand over 100% |
| September 21 | Unconstrained Demand = 100% |
Based on this Week-over-Week variance in demand, should the property yield up, lower, or keep the rates the same for the yieldable rates?
14.
Question 14
Monitoring Demand
A 200-room hotel has demand numers for the stay date of November 15, for the entire property, shown below:
| Date | Demand |
| September 23 | Unconstrained Demand over 100% |
| September 30 | Unconstrained Demand = 90% |
Based on this Week-over-Week variance in demand, should the property yield up, lower, or keep the rates the same for the yieldable rates?
15.
Question 15
Monitoring Comp. Set Pricing & Demand
On October 19, a 300-room hotel has an unconstrained demand of 90% for the stay date of December 20. All the other competitors in the market are lowering their rates.
Based on this information, should the hotel raise or lower rates?
