HTM 4250 Lecture Notes - Lecture 1: Wayne Gretzky, Bulk Purchasing, Fixed Cost

• School: University of Guelph
• Department: Hospitality and Tourism Management
• Course: HTM 4250
• Professor: Holmes

Document Summary

Price and quantity interact: as price is reduced, demand increases. Price and quantity interact: as price is reduced, fewer rooms are supplied. Price and quantity offered are perfectly matched. Revenue managers operate within the area where price are neither too high or too low, and rooms supply matches demand in that range. Unit price x quantity of goods or services sold. You may have been wrong, and you might learn something new. Common misperception is that it is a computer program; its managing revnues to maximize revenue generation. Effective management through the use of revenue management. Difficult to adjust to fit current demand. Service capacity: no excess supply to the next day. Almost never response to variation in short-term demand. Prevent those who would pay more from paying less. One coat application (if on primed dry wall) Occupancy is 76% - up 5% from last month. Adr is up from last month.