Answer 1
Rack rate refers to the base rate (typically the highest possible rate) from which all discounts are computed. Yield measures the actual revenue divided by the total potential revenue and thus measures the extent to which revenue is maximized.
Answer 2
Almost without exception, destinations focus on growth. Heads of tourism bureaus have the assignment of increasing the number of visitors year after year. If they do not, local hoteliers who usually control the tourism bureaus will push for their ouster and seek other candidates.
Thus, no one typically has the task of worrying about how the destination may be changing in ways that lead to a future decline in the number of visitor arrivals and the lowering of per diem spending. Students should be encouraged to consider this central issue and what kind of solutions they might offer to help solve the dilemma that most people at destinations have a very short-term view of the futurebring more visitors next month, not next year or the year after.
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