The Primary Purpose of Revenue Management Is to

question 32

Short Answer

The primary purpose of revenue management is to
• Sell more rooms at discounted rates
• Increase profitability
• Monitor hotel restaurant and room service orders
• Assist the concierge with customer requests

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Definitions:

Product Promotion

Various marketing strategies and tactics used to increase awareness, interest, and sales of a product.

Monopolistically Competitive Industry

A commercial setup in which various enterprises market goods that are comparable, though not identical, granting them a measure of control within the marketplace.

Elasticity Of Demand

An indicator of the level of change in consumer demand for a product based on fluctuations in its price.

Normal Profit

The minimum level of profit needed for a company to remain competitive in the market; it occurs when total revenues are equal to total costs, including opportunity costs.