Reference no: EM132683324
1 . Ultimately, GMs are responsible for maximizing the revenue-generating potential of their hotels. The work of the revenue manager has a big impact on a hotel's capacity to increase revenues. In smaller properties, the GM may actually assume the role of revenue manager. In large properties, several individuals may be needed to accomplish all of the required revenue-management tasks. Explain two advantages enjoyed by GMs who complete their required revenue-management activities themselves. Describe two advantages that accrue to those GMs who have the benefit of multiple staff members participating in the revenue-management process.
2. Some individuals feel room rates should not be increased significantly when room demand is high. Why do you think they feel that way? What would you say to a regular guest who called you to complain that the room rate she was quoted for her next stay was 50% higher than the rate she paid on her last visit? Assume you have forecasted a guaranteed sellout for the dates requested by that guest.
3. Some GMs focus most of their revenue-management efforts on increasing occupancy, while others emphasize the maximizing ADR. Discuss one advantage and one disadvantage related to each of these approaches.
4. The amount of marketing dollars spent prompting a specific distribution channel will typically affect the company of that channel to generate revenues for a hotel. Consider the web and your group sales team as two distinct distribution channels. What factors might influence you as a GM to increase funding of your Web-based efforts. What factors might result in increased funding for the members of your group sales team?
5. Consumers increasingly book their hotel rooms via the Internet. When you shop for a room on the Internet, what attracts you to a specific hotel? Do you feel most guests "shop" the Internet in the same manner? List at least three things that you feel impact a guest's decision to select a particular hotel when reserving rooms on the Internet.