REVinsight

Tool for segmenting the market in order to tap the greatest possible demand.Rate fences can be based on characteristics of the product or of the consumer,can be physical or nonphysical, and can involve special promotions or coupons.

The price consumers think is appropriate and fair for a product or service.

The way customers are accustomed to a hotel room being sold.

A price strategy, strongly discouraged in revenue management, in which a hotel charges the same rate for all rooms.

A method of price quoting in which reservation agents quote the highest price first and then introduce lower and lower prices in increments.

Average cost per click.

The average cost incurred as a result of a consumer clicking the online ad.

Conversion rate.

The fraction of people who are “clickers” that convert to “buyers.”

Click through rate.

The fraction of impressions that become clicks, or the fraction of people who see the ad who actually click it.

The process by which search engines automate ad copy development and display using keyword entries by the user.

A search for a product in which the user does not enter a brand name as a keyword.

An example is “downtown hotels in Philadelphia,” which asks for hotels in Philadelphia but does not specify a specific hotel chain or name.

Incremental cost per click.

The cost of each additional click generated as a result of bidding more for ad space.

This is just the difference between two bid amounts, divided by the number of additional clicks generated as a result of placing the higher bid.

Impressions. The number of consumers who see an online ad.