Exam 2026 Exam Questions
and Correct Answers | New
Update
What is the industry term used to describe the sum of prices paid by a
business's customers? - ANSWER ✔✔Total Revenues
Historically, what concept have hospitality managers chiefly used to
calculate their selling prices? - ANSWER ✔✔Costs
What is an algebraic equivalent of the formula: Sales = Costs + Profit? -
ANSWER ✔✔Profit = Sales - Costs
,What is the name for the net value achieved by both parties in a
business transaction? - ANSWER ✔✔Profit
What element is not present in a barter economy? - ANSWER
✔✔Money
What is the formula used to calculate an owner's ROI? - ANSWER
✔✔Owner's Investment Return / Owner's Original Investment = Owner's
Return on Investment
Sandy has 100 hotel rooms to sell. This Saturday night has enough
customers to sell 125 rooms so she will be refusing 25 requests for
rooms. What is this an example of? - ANSWER ✔✔Constrained
Supply
Which industry was the first to use Yield Management principles? -
ANSWER ✔✔Airline
What is the industry term used to describe the selling of rooms which are
not actually available for sale? - ANSWER ✔✔Overbooking
What is the formula used to calculate Average Daily Rate? -
ANSWER ✔✔Total Room's Revenue / Total Rooms Sold = Average
Daily Rate
,Tashia's hotel sold 175 rooms last night at an ADR of $200.00. Her hotel
has 250 rooms. What was Tashia's occupancy % last night? -
ANSWER ✔✔70%
Tashia's hotel sold 175 rooms last night at an ADR of $200.00. Her hotel
has 250 rooms. What was Tashia's RevPAR last night? - ANSWER
✔✔$140.00
What is the industry term for the average revenue generated by each
occupied guestroom during a defined period of time? - ANSWER
✔✔RevPOR
What is the formula used to calculate GOPPAR? - ANSWER
✔✔(Total Revenue - Management Controllable Expenses) / Rooms
Available to Sell = GOPPAR
What is the industry term for a customer group which can be readily
identified by one or more common characteristics? - ANSWER
✔✔Market Segment
What is rack rate? - ANSWER ✔✔The price of rooms when no
discounts of any type are offered
What is:
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, Total period revenue
(Number of available seats) x (hours of seat availability) - ANSWER
✔✔The formula for RevPASH
What is the term used to identify a management philosophy that places
customer gain ahead of short-term revenue maximization in revenue
management decision making? - ANSWER ✔✔Customer-centric
revenue management
What is the term used to describe the potential customers to whom a
business's marketing activities and messages are directed? -
ANSWER ✔✔The target market
What is the term used to describe efforts undertaken to encourage travel
and tourism to a specific geographic area or attraction? - ANSWER
✔✔Destination Marketing
What is the name for the value given up by a buyer and a seller in a
business transaction? - ANSWER ✔✔Price
Charging guests for watching a "Pay-Per-View" movie in their hotel
guestroom is an example of what type of pricing? - ANSWER
✔✔Two-tiered pricing