Which of the following does NOT demonstrate the principle of the use of physical rate fences to support revenue management?
A)Seat location
B)Size of a hotel room
C)Furnishing of a hotel room
D)Product bundle
E)Having to pay cancellation fees

Question

Quizplus · Accepted Answer

Physical rate fences are tangible or physical differences in products or services that allow companies to segment the market and charge different prices. Examples include seat location, size and furnishing of hotel rooms, and product bundles. Cancellation fees, however, are an example of a non-physical rate fence, as they are based on the terms of service rather than a physical attribute of the product or service.

Which of the Following Does NOT Demonstrate the Principle of the Use