Author Question: With reference to the topics of Revenue Management vs. Customer Service, what other conflicts may ... (Read 22 times)

panfilo · **on:** Sep 11, 2019

Question 1

Why do most motorcoach companies tend to be small?

What will be an ideal response?

Question 2

With reference to the topics of Revenue Management vs. Customer Service, what other conflicts may arise and what can be done to resolve them?

What will be an ideal response?

cloudre37 · **Reply #1 on:** Sep 11, 2019

Answer 1

This industry is largely local and lacks a large customer base.

Answer 2

Some other examples are:

Some customers do not accept the fact that resort hotels require a minimum (for example) 3-night stay for Saturday arrivals. Hotels need to explain to these customers that without that restriction, resorts will quickly fill up with one-nighters and lots of other travelers will not be able to stay even if they are planning to stay for longer periods. Resorts receiving only one-nighters on Saturday will see lots of vacant rooms during Sunday and Monday nights thus losing revenue and wasting human and facility resources. It is important for the reservations staff to communicate that the policy applies to all, and, if possible, offer alternative dates to these frustrated consumers.

Customers are rightfully upset when they see a discounted rate that became unavailable when they called back two hours later. Hotels and airlines offer certain amount of their inventory to discount classes and once these inventory are sold, only higher fares will be displayed. It is important to let the customers know that rates are available at the time of the inquiries and may change as basic room types or seat classes are sold out. Today's reservation agents are prompted to ask for sales once they have quoted the price.

For many frequent travelers, seasonal price changes are steep even though they expect to see a change. For example, a hotel may offer a 99 rate during a slow summer season and raise the rate to 199 during the peak fourth quarter. Hotels need to be able to offer various prices that come with different terms of sales. For example, hotels may consider offering an advanced purchase rate of 159 that requires full non-refundable prepayment. They can also consider offering relative flat (with minimum seasonal price changes) rates to a business client for all of their travels.