BUISENESS MANAGEMENT
INVENTORY CONTROL
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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ADRs may decline
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Occupancy percentage rates may increase
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Guests who wish to stay for one night may be denied a reservation
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Guests who wish to stay for a large number of days may be denied a reservation
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Detailed explanation-1: -Capacity management involves various methods of controlling and limiting room supply. For example, hotels will typically accept a statistically supported number of reservations in excess of the actual number of rooms in an attempt to offset the potential impact of early check – outs, cancellations, and no – shows.
Detailed explanation-2: -Restrictions are also called stay conditions or stay controls. Their purpose is to achieve optimal occupancy in the hotel with as few gaps in occupancy as possible.
Detailed explanation-3: -Availability Strategies A minimum length of stay strategy requires that a reservation must be for at least a specified number of nights in order to be accepted. The advantage of this strategy is that it allows the hotel to develop a relatively even occupancy periods.