Pearson New International Edition International pcl tp indd 1

REVENUE MANAGEMENT
2. This section of the chapter provided examples of times when a reduction in a
specific type of rack rate might be in order. It also mentioned the possibility of
increasing the rate beyond the rack rate. Can you think of times when the laws
of supply and demand suggest that room rates can be charged in excess of the
rack rate? As a revenue manager, are there times when you would not do so,
even if there was an excess demand for rooms? What, if any, legal implications
might relate to room charges in excess of the rack rate?
3. Assume that you will be attending a meeting and your group’s meeting planner
has negotiated a specified rate with the host hotel. Would you consider doing
an independent search for a lower room rate? If so, how would you conduct the
search? What would you do if you found a lower room rate at a property that
competes with the host hotel?