Cambridge IELTS 1, Test 3, Listening Part 3

    Revenue management: listening answers and explanations

    In a tutorial, Mark gives a quick overview of revenue management, a pricing strategy used by airlines and others. Susan describes buying a ticket to Perth, and the tutor and Mark explain why prices change and where else the system is used.

    Questions 24-32 · 9 marks · 2 question blocks

    How the answers come

    In order. Questions 24-27 come from the tutor's introduction and the airline discussion. 'Mark why do you think revenue management has come about?' starts the notes (28-32), which end with the other industries.

    Answer key and self-check

    Type what you wrote and hit mark. Hide the key first if you haven't done the part yet. Every question number jumps to its explanation.

    QYour answerAnswer
    Questions 24-27 · Multiple choice
    24
    B
    25
    C
    26
    D
    27
    A
    Questions 28-32 · Note completion (NO MORE THAN THREE WORDS)
    28
    law has changedAlso accepted: law changes / changes in law / the law has changed
    29
    computer programsAlso accepted: powerful computer programs / computer programmes
    30
    from homeAlso accepted: from home computer / from a home computer
    31
    hotelsAlso accepted: hotel beds / hotel rooms / rooms
    32
    hire cars
    Multiple choice

    Questions 24-27

    How to attack this block: Three speakers, so keep track of who holds which view: Susan finds it unfair, Mark thinks it's common sense. The options borrow words from the tutor's introduction and Susan's ticket story.

    Question 24

    Answer: BThe tutor's introduction

    What is Mark's short talk about?

    a quick run down on a new strategy for pricing … before we go on to your actual tutorial paper on Sales Targets

    Why: 'A quick run down' is the brief talk, and its subject is a new strategy for pricing, B.

    The trap: D (sales targets) is his main tutorial paper, which comes afterwards. A comes from Susan's tutorial last week on approaches to marketing.

    Question 25

    Answer: CWhen Susan explains what the travel agent told her

    When are air fares cheapest, according to Susan?

    it's cheap if you stay away for a Saturday night … and even cheaper if you buy a ticket where you can't get a refund if you have to cancel

    Why: 'Even cheaper' beats 'cheap', so the lowest fares are non-refundable ones, C.

    The trap: A (weekend travel) gets you a cheap ticket, but not the cheapest. B comes from Mark's point about three weeks' time, not Susan's story.

    Question 26

    Answer: DWhen Susan says it seems unfair

    What is Mark's view of revenue management?

    That seems rather unfair. … not really … when you think about it, that's just common sense

    Why: Mark disagrees with Susan and calls it 'common sense': he thinks it's reasonable, D.

    The trap: 'Unfair' is Susan's view, not Mark's. 'Complicated' might come to mind with the computer programs, but Mark never says that.

    Question 27

    Answer: AAfter Susan compares seats to mangoes or apples

    What do the airline companies want?

    The fact is that the companies are not actually interested in selling you a cheap flight! They're interested in selling the seats and flying aeroplanes that are full.

    Why: Selling every seat and flying full planes is about making more money: increase profits, A.

    The trap: C (sell cheap seats) uses the words of what they're 'not actually interested in'. B (benefit the passenger) is never their aim in this talk.

    Note completion (NO MORE THAN THREE WORDS)

    Questions 28-32

    How to attack this block: Mark signals the two reasons with 'firstly' and 'secondly', then the other industries come up one at a time. Shorten what he says to fit three words.

    Question 28

    Answer: law has changedWhen the tutor asks why revenue management has come about

    Also accepted: law changes / changes in law / the law has changed

    What is the first reason for the new pricing approach?

    there are two basic reasons: firstly because the law has been changed to allow the companies to do this

    Question says → You hear

    • Two reasons for the new approachthere are two basic reasons: firstly

    Why: 'Firstly' marks reason one: the law has changed. In three words, 'law has changed' or 'changes in law'.

    The trap: 'They didn't have the right' explains what was true before. The reason is the change, so write the change.

    Question 29

    Answer: computer programsStraight after the first reason, at 'and secondly'

    Also accepted: powerful computer programs / computer programmes

    What is the second reason?

    and secondly we now have very powerful computer programs to do the calculations

    Question says → You hear

    • andand secondly we now have very powerful computer programs

    Why: 'Secondly' marks reason two: computer programs. 'Powerful computer programs' is accepted too.

    The trap: 'Calculations' is what the programs do. The reason is the programs.

    Question 30

    Answer: from homeWhen Mark says the airlines' programs will be available to consumers

    Also accepted: from home computer / from a home computer

    How will people book airline tickets in future?

    will eventually be available to consumers to find the best deals for their travel plans from their home computer … if you could book your airline tickets from home

    Question says → You hear

    • In future people will be able to book airline ticketswill eventually be available to consumers

    Why: 'Eventually' matches 'in future', and Susan sums it up: book your tickets from home. 'From home computer' is also accepted.

    The trap: The travel agent comes in here, but as something that could become 'a thing of the past'.

    Question 31

    Answer: hotelsWhen Susan asks if it's only the airline business

    Also accepted: hotel beds / hotel rooms / rooms

    What is the first other industry using this system?

    Many of the big hotel groups are doing it now. That's why the price of a bed in a hotel can also vary so much

    Question says → You hear

    • Also being marketed in this wayMany of the big hotel groups are doing it now

    Why: 'Doing it' means using revenue management. The thing marketed this way is hotels, or hotel rooms or beds.

    The trap: Mangoes and apples came earlier, but as Susan's comparison, not as an industry that uses the system.

    Question 32

    Answer: hire carsAfter the tutor says it's all a bit of a gamble

    What is the second other industry?

    hire car companies are also using revenue management to set their tariffs

    Question says → You hear

    • andhire car companies are also using revenue management

    Why: 'Also using revenue management' adds a second industry: hire cars.

    The trap: 'Gamble' comes right before, from the tutor, but it's a comment about the system.

    The questions most people get wrong

    Question 25

    Staying over a Saturday night makes a ticket cheap, but a non-refundable ticket is 'even cheaper'. The question asks when fares are lowest.

    Question 27

    Airlines are 'not actually interested in selling you a cheap flight' but in full planes. Option C uses 'cheap seats', the very thing they don't want. Full planes mean more profit.

    Question 24

    Mark's actual tutorial paper is on Sales Targets, but first he gives a quick run-down on a pricing strategy. The brief talk is on pricing.

    Words from this recording worth keeping

    perishable goods(What revenue management is)
    things like food that soon go bad
    rationale(Susan's ticket)
    the reason behind something
    refund(Susan's ticket)
    money given back to you
    commodity(Airline seats)
    a product that can be bought and sold
    at a moment's notice(Reasons for the approach)
    very quickly, with almost no warning
    consumers(The future)
    people who buy goods and services
    tariffs(Other industries)
    fixed prices or charges
    overview(End of the discussion)
    a short general description

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