Explain why forecasting is important to revenue management
What will be an ideal response?
Answer: The foundation of any revenue management system is the forecasting function. To use overbooking with any degree of success, a firm must be able to forecast cancellation patterns. Forecasting does not mean obtaining an estimate that is always accurate. Forecasting involves estimating demand and also attributing an expected error to the forecast itself. Both the estimated value and the expected error are important inputs into any revenue management model. Finally, as new information becomes available, reforecast to see if the revenue management tactics currently in place are still appropriate. The frequency of forecasting will depend on the amount of market activity. Ideally, the forecast and the revenue management decision should be evaluated after every transaction.
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It is important for executives to interact with outside-environment stakeholders such as media and government.
a. true b. false
Emotional appeals
A) have no place in persuasive business messages. B) can help audiences care enough to respond positively to your persuasive message. C) often backfire, and should be used only when addressing internal audiences. D) are usually sufficient, on their own, to convince the audience to make important decisions. E) are most effective in persuasive messages designed for international audiences.