To Avoid Paying Commissions to Travel Agents and Online Booking

question 7

Multiple Choice

To avoid paying commissions to travel agents and online booking services, hotels are now trying to:

• A) drive potential guests directly to their websites.
• B) contract with CVB and Chamber and Commerce.
• C) sell their inventories to tour wholesalers.
• D) adopt vertical integration and purchase travel agents.

Evaluate the effects of sales mix changes on overall contribution margin ratio.

Develop an understanding of budgeted data to calculate break-even sales.

Analyze the impact of price changes on profit and unit sales requirements.

Understand how changes in selling price and costs impact the unit sales required to maintain profitability.

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Definitions:

Consumption

The use of goods and services by households, which is a key component in calculating a country's Gross Domestic Product (GDP).

Fiscal Policy Measure

Government policies related to taxation and spending that are used to influence the economy, manage inflation, and stimulate economic growth.

Legislative Action

The process by which a legislative body enacts laws, including the proposal, debate, amendment, and voting on new laws or changes to existing laws.

President

The head of state and/or head of government in a republic, typically elected to be the chief executive officer and hold the highest office in the land.