REVENUE MANAGEMENT REVIEW TIPS
QUESTIONS AND ANSWERS SET A+
✔✔Last month Carl's 500-room hotel had a comp. set that included five additional
hotels offering a total of 2000 rooms. What was Carl's supply share % last month?
50%
40%
25%
20% - ✔✔20%
✔✔Last month Carl's hotel supplied 10.8% of the rooms in his comp set. It attracted
11.6% of all the rooms sold (demand) and generated 9.1% of the total revenue
achieved by the comp set. What is true about Carl's hotel?
Its rates are high relative to the comp. set's and the hotel has an occupancy index
above 100%.
Its rates are high relative to the comp. set's and the hotel has an occupancy index less
than 100%.
Its rates are low relative to the comp. set's and the hotel has an occupancy index less
than 100
Its rates are low relative to the comp. set's and the hotel has an occupancy index above
100%. - ✔✔its rates are low relative to the comp. set's and the hotel has an occupancy
index above 100%
✔✔What metrics are best used to assess the relative merits of a specific lodging
industry distribution channel's contribution to a single hotel?
,ADR and rooms sold
Rooms sold and Net ADR Yield
ADR and Net ADR Yield
STAR occupancy index and ADR - ✔✔rooms sold and net ADR yield
✔✔It is near the end of the month and Tamrika is a revenue manager considering the
impact of selling 200 room nights, for use this month, but at a room rate far below her
hotel's average room rate. What would be the impact on her hotel's operating statistics if
she makes this sale?
Increased RevPAR and reduced flow-thru %
Reduced RevPAR and reduced flow-thru %
Increased ADR and increased flow-thru %
Reduced ADR and increased flow-thru % - ✔✔increased REVPAR and reduced flow-
thru%
✔✔Which of the following statements about restaurant pricing methods is true?
The menu pricing methods used by restaurateurs have changed radically
in the past two decades
In most cases the task of pricing menu items is assigned to a revenue
management specialist
Discounting for quantity purchase is one of the primary pricing methodologies
used by restaurateurs
Restaurant industry pricing methods are very different from hotel
industry pricing methods - ✔✔restaurant industry pricing methods are very different
from hotel industry pricing methods
✔✔Shaniqua's restaurant utilizes a product cost percentage pricing system. What
should be the selling price for a steak dinner she sells if her total plate cost for the
dinner is $7.00 and her desired product cost is 25%?
$ 35.71
$ 28.00
$ 3.57
, $ 10.00 - ✔✔$28.00
✔✔Shaniqua's restaurant utilizes a product cost percentage pricing system. She would
like to apply pricing factors to make pricing her menus easier. What would be the pricing
factor she would use when her desired product cost percentage for an item is 40%?
250
25
2.5
.25 - ✔✔2.5
✔✔Which menu pricing system would utilize an operation's prime costs when
calculating its selling prices?
Product Cost: Plus
Product Cost Percentage
Contribution Margin
Differential Pricing - ✔✔product cost: plus
✔✔In which menu pricing approach would Menu Engineering as proposed by Kasavana
and Smith be utilized?
Product Cost: Plus Pricing
Contribution Margin Pricing
Product Cost Percentage Pricing
Plate Cost Pricing - ✔✔contribution margin pricing
✔✔What is the common feature in the Product Cost: Plus Pricing, the Contribution
Margin Pricing and the Product Cost Percentage Pricing systems?
The amount paid for prime costs
The amount paid for labor
The amount paid for products
QUESTIONS AND ANSWERS SET A+
✔✔Last month Carl's 500-room hotel had a comp. set that included five additional
hotels offering a total of 2000 rooms. What was Carl's supply share % last month?
50%
40%
25%
20% - ✔✔20%
✔✔Last month Carl's hotel supplied 10.8% of the rooms in his comp set. It attracted
11.6% of all the rooms sold (demand) and generated 9.1% of the total revenue
achieved by the comp set. What is true about Carl's hotel?
Its rates are high relative to the comp. set's and the hotel has an occupancy index
above 100%.
Its rates are high relative to the comp. set's and the hotel has an occupancy index less
than 100%.
Its rates are low relative to the comp. set's and the hotel has an occupancy index less
than 100
Its rates are low relative to the comp. set's and the hotel has an occupancy index above
100%. - ✔✔its rates are low relative to the comp. set's and the hotel has an occupancy
index above 100%
✔✔What metrics are best used to assess the relative merits of a specific lodging
industry distribution channel's contribution to a single hotel?
,ADR and rooms sold
Rooms sold and Net ADR Yield
ADR and Net ADR Yield
STAR occupancy index and ADR - ✔✔rooms sold and net ADR yield
✔✔It is near the end of the month and Tamrika is a revenue manager considering the
impact of selling 200 room nights, for use this month, but at a room rate far below her
hotel's average room rate. What would be the impact on her hotel's operating statistics if
she makes this sale?
Increased RevPAR and reduced flow-thru %
Reduced RevPAR and reduced flow-thru %
Increased ADR and increased flow-thru %
Reduced ADR and increased flow-thru % - ✔✔increased REVPAR and reduced flow-
thru%
✔✔Which of the following statements about restaurant pricing methods is true?
The menu pricing methods used by restaurateurs have changed radically
in the past two decades
In most cases the task of pricing menu items is assigned to a revenue
management specialist
Discounting for quantity purchase is one of the primary pricing methodologies
used by restaurateurs
Restaurant industry pricing methods are very different from hotel
industry pricing methods - ✔✔restaurant industry pricing methods are very different
from hotel industry pricing methods
✔✔Shaniqua's restaurant utilizes a product cost percentage pricing system. What
should be the selling price for a steak dinner she sells if her total plate cost for the
dinner is $7.00 and her desired product cost is 25%?
$ 35.71
$ 28.00
$ 3.57
, $ 10.00 - ✔✔$28.00
✔✔Shaniqua's restaurant utilizes a product cost percentage pricing system. She would
like to apply pricing factors to make pricing her menus easier. What would be the pricing
factor she would use when her desired product cost percentage for an item is 40%?
250
25
2.5
.25 - ✔✔2.5
✔✔Which menu pricing system would utilize an operation's prime costs when
calculating its selling prices?
Product Cost: Plus
Product Cost Percentage
Contribution Margin
Differential Pricing - ✔✔product cost: plus
✔✔In which menu pricing approach would Menu Engineering as proposed by Kasavana
and Smith be utilized?
Product Cost: Plus Pricing
Contribution Margin Pricing
Product Cost Percentage Pricing
Plate Cost Pricing - ✔✔contribution margin pricing
✔✔What is the common feature in the Product Cost: Plus Pricing, the Contribution
Margin Pricing and the Product Cost Percentage Pricing systems?
The amount paid for prime costs
The amount paid for labor
The amount paid for products
