Revenue Management Final Exam | Latest 2024 with complete solution

What is the industry term used to describe the sum of prices paid by a business's customers? - Total Revenues Historically, what concept have hospitality managers chiefly used to calculate their selling prices? - Costs What is an algebraic equivalent of the formula: Sales = Costs + Profit? - Profit = Sales - Costs What is the name for the net value achieved by both parties in a business transaction? - Profit What element is not present in a barter economy? - Money What is the formula used to calculate an owner's ROI? - 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? - Constrained Supply Which industry was the first to use Yield Management principles? - Airline What is the industry term used to describe the selling of rooms which are not actually available for sale? - Overbooking What is the formula used to calculate Average Daily Rate? - 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? - 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? - $140.00 What is the industry term for the average revenue generated by each occupied guestroom during a defined period of time? - RevPOR What is the formula used to calculate GOPPAR? - (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? - Market Segment What is rack rate? - The price of rooms when no discounts of any type are offered What is: Total period revenue (Number of available seats) x (hours of seat availability) - 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? - 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? - The target market What is the term used to describe efforts undertaken to encourage travel and tourism to a specific geographic area or attraction? - Destination Marketing What is the name for the value given up by a buyer and a seller in a business transaction? - Price Charging guests for watching a "Pay-Per-View" movie in their hotel guestroom is an example of what type of pricing? - Two-tiered pricing What is the fundamental assumption upon which the concept of consumer rationality is based? - Buyers act in ways that are of personal benefit to them What is the revenue management term used to describe the perceived benefit gained, minus the price paid, in a business transaction? - Value What is created when a seller communicates to a buyer a description of a product to be sold and the price at which that product will be sold? - A value proposition Which one of the following terms is not one of the 4 Ps of the Marketing Mix? - Proposition Which of the following terms would be included in the Place portion of a hotel's marketing mix? - Distribution Channels