Question 1

From a yield management perspective, the occupancy pattern of a resort (busy on weekends and slower on weekdays) is opposite to that of the commercial hotel, which is slower on weekends and busier on weekdays.

Accepted Answer

The answer of From a yield management perspective, the occupancy...

Question 2

A general manager knows his/her yield management program has achieved its objectives when the ratio of Rate Realized: Rate Potential is one or higher.

Accepted Answer

When the ratio of Rate Realized to Rate Potential is one or higher, it indicates that the yield management program is effectively maximizing revenue by achieving or exceeding the potential rate, thus meeting its objectives.

Question 3

A failure to pay commissions in a timely manner is one of the travel agency industry's major complaints against the hotel industry.

Accepted Answer

Travel agencies often complain about the hotel industry's failure to pay commissions in a timely manner, as these payments are crucial for their cash flow and operational efficiency.

Question 4

Among other things, yield management considers customer demand, lead time, buyers' sensitivity to price, and room type requested.

Accepted Answer

Yield management, particularly in industries like hospitality and airlines, involves analyzing various factors to maximize revenue. These factors include customer demand, lead time (the time between booking and the actual use of the service), buyers' sensitivity to price changes, and the type of product or service requested (such as room type in hotels), to set prices and availability in a way that maximizes profit.

Question 5

Although we see fenced rate quotes (non-refundable reservation, 21-day advance purchase, stay over on a Saturday night) regularly in the airline industry, it is still relatively uncommon to find them in the lodging industry.

Accepted Answer

Fenced rate quotes are common in the airline industry but not in the lodging industry.

Question 6

The United States is the global leader in online travel reservations.

Accepted Answer

The United States has been a pioneer in the development of online travel booking platforms, with companies like Expedia, Booking.com (although originally Dutch, its parent company is now US-based), and Airbnb leading the global market, making it a leader in the sector.

Question 7

Application Service Providers (ASP's) provide global distribution and central reservation services to unaffiliated, independent hotel properties.

Accepted Answer

ASP's provide global distribution and central reservation services to unaffiliated, independent hotel properties.

Question 8

Yield management decisions are partially based on the fact that leisure guests are sensitive to date (they must travel during their vacation dates), while corporate guests are most sensitive to rate (as businesses strive to save money, hotel room prices are carefully evaluated).

Accepted Answer

The answer of Yield management decisions are partially based on...

Question 9

Single-image inventory allows all Application Service Provider (ASP) members to feed data from the same database.

Accepted Answer

Single-image inventory refers to a system where all members or users (in this case, Application Service Providers or ASPs) access and manage inventory information from a unified database, ensuring consistency and real-time data sharing across the network.

Question 10

Airlines generally pay travel agents a 10% commission on all air travel booked. Hotels generally pay travel agents no commission at all (beginning in 2001).

Accepted Answer

Airlines have largely eliminated the standard commission payments to travel agents for air travel bookings since the late 1990s and early 2000s. Hotels, on the other hand, often still pay commissions to travel agents, typically ranging from 10% to 15% for bookings made.

Question 11

With growing corporate and leisure business, the travel industry is widely successful these days. As such, the number of travel agents in America has grown substantially since 2001.

Accepted Answer

The number of travel agents in America has actually declined since 2001, largely due to the rise of online booking platforms which allow travelers to book their own flights, hotels, and other travel arrangements directly.

Question 12

Surprisingly, the most expensive average room rates are booked on-line. Cheaper average rates come from direct telephone calls to the CRS.

Accepted Answer

Studies and data have shown that the most expensive average room rates are often found when booking directly through a hotel's central reservation system (CRS) via telephone, while online booking platforms often offer competitive or discounted rates due to the vast comparison options available and special deals they can negotiate with hotels.

Question 13

Third-party travel sites act as inventory aggregators; contracting with hotels for a set number of rooms at a deeply discounted price, and then re-selling the rooms through popular web sites.

Accepted Answer

Third-party travel sites often operate by contracting with hotels to secure a certain number of rooms at a discounted rate, which they then sell to consumers through their platforms, acting as intermediaries between the hotels and travelers.

Question 14

Meta-search web sites (e.g. SideStep, Kayak, TravelZoo), use sophisticated search technology to exploit hotels and chains which have not ensured internal rate integrity.

Accepted Answer

Meta-search websites aggregate data from various sources, including hotels and chains, to find the best rates, which can reveal inconsistencies in pricing if internal rate integrity is not maintained.

Question 15

The average corporate guest books his/her lodging accommodations and air flights at least 45-days in advance of travel.

Accepted Answer

The average booking window for corporate travelers varies widely depending on the industry, company policy, and purpose of travel, but many business trips are often booked much closer to the date of travel, sometimes even within a week or two of the departure date.

Question 16

In terms of yield, a 200-room property selling 80% of its rooms for $65 per night ADR would demonstrate identical yield to a different 200-room property selling 65% of its rooms for $80 per night ADR.

Accepted Answer

Both properties generate the same revenue of $10,400 from room sales. The first property earns $65 x 160 rooms = $10,400, and the second property earns $80 x 130 rooms = $10,400, thus demonstrating identical yield.

Question 17

Which of the following items seems out of place (doesn't belong with the others in the set):

Accepted Answer

Hampton is a hotel brand, while the others are all airlines.

Question 18

Which of the following would not be considered a method for making a hotel reservation:

Accepted Answer

All the options listed (A through D) are recognized methods for making hotel reservations.

Question 19

Which of the following services do Application Service Providers (ASP) offer member hotels:

Accepted Answer

Application Service Providers (ASP) offer a range of services to member hotels, including access to alternate distribution systems, internet-based reservations, connections to the Global Distribution System (GDS), and listings on a Central Reservation System (CRS). These services are designed to enhance the hotel's visibility, streamline booking processes, and improve overall distribution efficiency.

Question 20

Chain-owned Central Reservation Systems:

Accepted Answer

Chain-owned Central Reservation Systems are designed to handle a high volume of calls, often reaching 1-2 million per month, indicating their capacity to manage extensive customer interactions. They typically charge hotels a fee for each reservation made through the system, which is a common revenue model for these services. Monitoring the length of time reservation agents spend on each call is a standard practice to ensure efficiency and customer satisfaction. Additionally, these systems use automatic call distributor equipment to manage incoming calls effectively, ensuring that calls are routed to available agents in a timely manner.

Quiz 5: Global Reservations Technologies