Revenue Management Final Exam Question & Answer

Revenue Management Final Exam Question & Answer What is the industry term used to describe the sum of prices paid by a business's customers? - ANS-Total Revenues Historically, what concept have hospitality managers chiefly used to calculate their selling prices? - ANS-Costs What is an algebraic equivalent of the formula: Sales = Costs + Profit? - ANS-Profit = Sales - Costs What is the name for the net value achieved by both parties in a business transaction? - ANS-Profit What element is not present in a barter economy? - ANS-Money What is the formula used to calculate an owner's ROI? - ANS-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? - ANS-Constrained Supply Which industry was the first to use Yield Management principles? - ANS-Airline What is the industry term used to describe the selling of rooms which are not actually available for sale? - ANS-Overbooking What is the formula used to calculate Average Daily Rate? - ANS-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? - ANS-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? - ANS-$140.00 What is the industry term for the average revenue generated by each occupied guestroom during a defined period of time? - ANS-RevPOR What is the formula used to calculate GOPPAR? - ANS-(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? - ANS-Market Segment What is rack rate? - A