HFT4468 Revenue Management Final
EXAM QUESTIONS AND ALL
CORRECT ANSWERS 100% SOLVED
AND GUARANTEED SUCCESS!!
1. Which of the following is not a hotel intermediary?
Correct Answer: Front desk agents
Rationale:
Hotel intermediaries are third parties that help sell hotel rooms, such as travel agents, online
travel agencies (OTAs), and global distribution systems (GDS). Front desk agents work directly
for the hotel and are not intermediaries.
2. Which travel industry-related business group developed the Global Distribution System?
Correct Answer: The airline industry
Rationale:
The Global Distribution System (GDS) was originally developed by airlines to manage flight
inventory and reservations. Hotels later joined GDS networks to distribute room inventory
worldwide.
3. What was the original purpose of THISCO?
Correct Answer: To develop a single GDS connection for major hotel companies
Rationale:
THISCO (The Hotel Industry Switch Company) was created to simplify hotel connections with
multiple GDS systems by providing one central connection point.
4. What is true about the calculations required to calculate the following Net ADR Yield
formula?
Standard ADR (-) Distribution Channel Costs (=) Net Room Rate
,Correct Answer: Standard ADR (-) Distribution Channel Costs (=) Net Room Rate
Rationale:
Net ADR Yield measures the actual room revenue retained after deducting distribution costs
such as commissions and fees.
5. Lani is the revenue manager at the Aloha Inn. In which situation would Lani optimize the
Inn's gross rooms revenues?
Correct Answer: High Standard ADR, high Net ADR Yield
Rationale:
Revenue managers optimize performance by achieving higher room rates while minimizing
distribution costs. High ADR combined with high Net ADR Yield produces stronger profitability.
6. What is the industry term for a lower room rate that is offered when a potential rooms
buyer exhibits initial price resistance?
Correct Answer: Fade rate
Rationale:
A fade rate is a reduced price offered after a customer shows resistance to the original quoted
rate in order to save the sale.
7. What is true about a future room reservation booked for a guest whose original reservation
was booked through expedia.com and who is presently checking out of the hotel?
Correct Answer: No IDS fees will be paid on the revenue the new reservation will generate
Rationale:
A direct repeat booking made at checkout avoids the Internet Distribution System (IDS)
commission because the guest no longer books through Expedia or another intermediary.
8. Harold tracks his hotel guest check outs and the number of new reservations made at check
out. Last week a total of 640 guests checked out of his hotel. In that same period, his front
desk staff booked reservations for 32 future rooms nights from this group of check out guests.
What is true at Harold's hotel?
, Correct Answer: The reservation nights booked per check out for last week was .05
Rationale:
Formula:
Therefore, each checkout generated 0.05 future room nights.
9. For which distribution channel type do hotels typically employ a shopper's service?
Correct Answer: Sales made via the telephone
Rationale:
Telephone sales require employees to assist customers by answering questions, comparing
options, and completing reservations.
10. Which is most often true about room sales made by a hotel's group sales department?
Correct Answer: ADRs are lower than average and Net ADR Yield is higher than average
Rationale:
Group sales usually involve discounted rates, but they often reduce distribution costs because
they are booked directly through the hotel.
11. How are most CVBs in the United States funded?
Correct Answer: By a combination of hotel occupancy taxes and membership dues
Rationale:
Convention and Visitors Bureaus (CVBs) are commonly funded through destination marketing
fees, especially hotel occupancy taxes, plus contributions from members.
12. Which statement does not accurately describe a non-electric distribution channel?
Correct Answer: CRS is a non-electric distribution channel
Rationale:
A Central Reservation System (CRS) is an electronic distribution system used to manage
reservations.
EXAM QUESTIONS AND ALL
CORRECT ANSWERS 100% SOLVED
AND GUARANTEED SUCCESS!!
1. Which of the following is not a hotel intermediary?
Correct Answer: Front desk agents
Rationale:
Hotel intermediaries are third parties that help sell hotel rooms, such as travel agents, online
travel agencies (OTAs), and global distribution systems (GDS). Front desk agents work directly
for the hotel and are not intermediaries.
2. Which travel industry-related business group developed the Global Distribution System?
Correct Answer: The airline industry
Rationale:
The Global Distribution System (GDS) was originally developed by airlines to manage flight
inventory and reservations. Hotels later joined GDS networks to distribute room inventory
worldwide.
3. What was the original purpose of THISCO?
Correct Answer: To develop a single GDS connection for major hotel companies
Rationale:
THISCO (The Hotel Industry Switch Company) was created to simplify hotel connections with
multiple GDS systems by providing one central connection point.
4. What is true about the calculations required to calculate the following Net ADR Yield
formula?
Standard ADR (-) Distribution Channel Costs (=) Net Room Rate
,Correct Answer: Standard ADR (-) Distribution Channel Costs (=) Net Room Rate
Rationale:
Net ADR Yield measures the actual room revenue retained after deducting distribution costs
such as commissions and fees.
5. Lani is the revenue manager at the Aloha Inn. In which situation would Lani optimize the
Inn's gross rooms revenues?
Correct Answer: High Standard ADR, high Net ADR Yield
Rationale:
Revenue managers optimize performance by achieving higher room rates while minimizing
distribution costs. High ADR combined with high Net ADR Yield produces stronger profitability.
6. What is the industry term for a lower room rate that is offered when a potential rooms
buyer exhibits initial price resistance?
Correct Answer: Fade rate
Rationale:
A fade rate is a reduced price offered after a customer shows resistance to the original quoted
rate in order to save the sale.
7. What is true about a future room reservation booked for a guest whose original reservation
was booked through expedia.com and who is presently checking out of the hotel?
Correct Answer: No IDS fees will be paid on the revenue the new reservation will generate
Rationale:
A direct repeat booking made at checkout avoids the Internet Distribution System (IDS)
commission because the guest no longer books through Expedia or another intermediary.
8. Harold tracks his hotel guest check outs and the number of new reservations made at check
out. Last week a total of 640 guests checked out of his hotel. In that same period, his front
desk staff booked reservations for 32 future rooms nights from this group of check out guests.
What is true at Harold's hotel?
, Correct Answer: The reservation nights booked per check out for last week was .05
Rationale:
Formula:
Therefore, each checkout generated 0.05 future room nights.
9. For which distribution channel type do hotels typically employ a shopper's service?
Correct Answer: Sales made via the telephone
Rationale:
Telephone sales require employees to assist customers by answering questions, comparing
options, and completing reservations.
10. Which is most often true about room sales made by a hotel's group sales department?
Correct Answer: ADRs are lower than average and Net ADR Yield is higher than average
Rationale:
Group sales usually involve discounted rates, but they often reduce distribution costs because
they are booked directly through the hotel.
11. How are most CVBs in the United States funded?
Correct Answer: By a combination of hotel occupancy taxes and membership dues
Rationale:
Convention and Visitors Bureaus (CVBs) are commonly funded through destination marketing
fees, especially hotel occupancy taxes, plus contributions from members.
12. Which statement does not accurately describe a non-electric distribution channel?
Correct Answer: CRS is a non-electric distribution channel
Rationale:
A Central Reservation System (CRS) is an electronic distribution system used to manage
reservations.
