Revenue Management-Complete Exam
Study Guide 2026/2027 with Verified
Answers | Newest Version. A+
What is the name for the net value achieved by both parties in a business transaction?
Profit
RevPash
Total period revenue/ number of available seats * Hours of seat availability
According to the most recent Hospitality Sales & Marketing Association International(HSMAI)
survey, to whom do the largest percentage of hotel revenue managers report?
Hotel's General Manager
Formula to calculate an owner's ROI
Owner's Investment return / Owner's original investment
Average revenue generate by each occupied guest room during a define period of time
Rev Por
Rev Par
Total revenue/ Total rooms available for sale
Potential customers that utilize business marketing activities and messages are direct
Target Market
Fundamental assumption upon which concept of consumer rationality is based
Buyers will act in ways that are personal benefit to them
This is created when a seller communicates to a buyer the description of a product to be sold
and the price at which the product will be sold.
A value proposition
Included with the Place portion of the hotel marketing mix
,Promotions
Fundamental assumption which Law of Supply is based?
The higher the demand for product, the more of it will be produced by sellers. Demand for a
product the will be produced by
Equilibrium price is in place for product. What is the law of supply?
new price will be higher and supply will increase
Break even point
The point at which a firm's revenues exactly equal .
what food service costs is a variable cost?
Food
Total cost line always starts further up the Y axis
Fixed costs are incurred even if no guests are sold
Buyers view of a sales transaction
Perceived value. Perceived value - selling price = personal profit
Quantity and quality held constant . How will reduction as a price affect buyers perception of
value
Perceived value will increase
Which of the 4 I's of service often depends upon the skill level of the individual who supplies
it
Inconsistency
4 I's of service addressing the fact that a hotel goes unsold on a certain night
Inventory
Which two factors do successful revenue manages employ when the devise and implement
strategic pricing plans
Data management and insight
All except are marketing based example of marketing pricing
Return on Investment
,True for franchised hotel operations in the US
Prices are established by Hotel Owners
Consumer pricing difference from consumer surplus?
Differential pricing is a strategy used by sellers to minimize consumer surplus.
- Consumer Surplus is the difference between the amount of a buyer would be willing to pay for
a product or service and the amount they are charged.
- Consumer pricing is more focused on promoting the items they know customers like best
Customer rewards program
Customer characteristic
- formalized system of granting special pricing or other benefits for a company's best customer
Arbitrage
The nearly simultaneous purchase of a product at a low price and reselling of it at a higher price
with the intention of keeping the difference in price.
Price Fence
The specific requirements that describes who is and not eligible for a special pricing offer
offering reduced room rates for third parties
Distribution channel
Implement a differential pricing we supply when over sold
Cartel - name used to describe a consortium of independent organizations formed to limit
competition by controlling the production, distribution and pricing of a product or service
Price perceived by consumers be the normal or standard
Reference price
Corporate level executive
To whom would a revenue manager likely report if consistency across multiple properties was of
most importance?
Vehicle used to best develop revenue management
Regular strategy meetings
Meetings
, Run once a week involving the GM, DOSM, Senior sales manager, and front office
New hotel manager is eliminating room discounts
Current Data
Overstay
Staying after the duration of the visit
Rev par unrealistically high
ADR and Occupancy %
Customer centric strategy for revenue managers to seek and to optimize ADR and Revpar
Eliminate Discounts
Most likely the result of revenue managers decision to raise the rate room during periods of
high demand
Rev Par will increase
Consistent characteristic of desirable room revenue?
Increase higher Goppar
Revenue management decision on high rates low demand
The number of potential guests will decline
NOT typically used by revenue managers to designate specific room products sold in a hotel
Price
Attrition and Wash
The difference between the purchases a group pledges to make and purchases it actually makes
Pick up
Proportion of previously reserved rooms that are ultimately occupied
Ultimately occupied/ reserved rooms
Daily Receipt
Agencies are to maintain daily cash receipt records reflecting all daily receipts by accounting
Profit
The net value achieved by a seller and a buyer in a business transaction
Study Guide 2026/2027 with Verified
Answers | Newest Version. A+
What is the name for the net value achieved by both parties in a business transaction?
Profit
RevPash
Total period revenue/ number of available seats * Hours of seat availability
According to the most recent Hospitality Sales & Marketing Association International(HSMAI)
survey, to whom do the largest percentage of hotel revenue managers report?
Hotel's General Manager
Formula to calculate an owner's ROI
Owner's Investment return / Owner's original investment
Average revenue generate by each occupied guest room during a define period of time
Rev Por
Rev Par
Total revenue/ Total rooms available for sale
Potential customers that utilize business marketing activities and messages are direct
Target Market
Fundamental assumption upon which concept of consumer rationality is based
Buyers will act in ways that are personal benefit to them
This is created when a seller communicates to a buyer the description of a product to be sold
and the price at which the product will be sold.
A value proposition
Included with the Place portion of the hotel marketing mix
,Promotions
Fundamental assumption which Law of Supply is based?
The higher the demand for product, the more of it will be produced by sellers. Demand for a
product the will be produced by
Equilibrium price is in place for product. What is the law of supply?
new price will be higher and supply will increase
Break even point
The point at which a firm's revenues exactly equal .
what food service costs is a variable cost?
Food
Total cost line always starts further up the Y axis
Fixed costs are incurred even if no guests are sold
Buyers view of a sales transaction
Perceived value. Perceived value - selling price = personal profit
Quantity and quality held constant . How will reduction as a price affect buyers perception of
value
Perceived value will increase
Which of the 4 I's of service often depends upon the skill level of the individual who supplies
it
Inconsistency
4 I's of service addressing the fact that a hotel goes unsold on a certain night
Inventory
Which two factors do successful revenue manages employ when the devise and implement
strategic pricing plans
Data management and insight
All except are marketing based example of marketing pricing
Return on Investment
,True for franchised hotel operations in the US
Prices are established by Hotel Owners
Consumer pricing difference from consumer surplus?
Differential pricing is a strategy used by sellers to minimize consumer surplus.
- Consumer Surplus is the difference between the amount of a buyer would be willing to pay for
a product or service and the amount they are charged.
- Consumer pricing is more focused on promoting the items they know customers like best
Customer rewards program
Customer characteristic
- formalized system of granting special pricing or other benefits for a company's best customer
Arbitrage
The nearly simultaneous purchase of a product at a low price and reselling of it at a higher price
with the intention of keeping the difference in price.
Price Fence
The specific requirements that describes who is and not eligible for a special pricing offer
offering reduced room rates for third parties
Distribution channel
Implement a differential pricing we supply when over sold
Cartel - name used to describe a consortium of independent organizations formed to limit
competition by controlling the production, distribution and pricing of a product or service
Price perceived by consumers be the normal or standard
Reference price
Corporate level executive
To whom would a revenue manager likely report if consistency across multiple properties was of
most importance?
Vehicle used to best develop revenue management
Regular strategy meetings
Meetings
, Run once a week involving the GM, DOSM, Senior sales manager, and front office
New hotel manager is eliminating room discounts
Current Data
Overstay
Staying after the duration of the visit
Rev par unrealistically high
ADR and Occupancy %
Customer centric strategy for revenue managers to seek and to optimize ADR and Revpar
Eliminate Discounts
Most likely the result of revenue managers decision to raise the rate room during periods of
high demand
Rev Par will increase
Consistent characteristic of desirable room revenue?
Increase higher Goppar
Revenue management decision on high rates low demand
The number of potential guests will decline
NOT typically used by revenue managers to designate specific room products sold in a hotel
Price
Attrition and Wash
The difference between the purchases a group pledges to make and purchases it actually makes
Pick up
Proportion of previously reserved rooms that are ultimately occupied
Ultimately occupied/ reserved rooms
Daily Receipt
Agencies are to maintain daily cash receipt records reflecting all daily receipts by accounting
Profit
The net value achieved by a seller and a buyer in a business transaction
