Revenue Management Final exam practice Questions with Complete Verified Solutions 2024

Revenue Management Final exam practice Questions with Complete Verified Solutions 2024 What is bigger in the tourism industry, fixed costs or variable costs? fixed costs are bigger -Think of an airplane: staffing, airport fees (fixed) - huge amount of the costs for airplanes come from fixed costs; food, fuel (variable) - not as easy to determine the variable costs We can reduce prices (even below total cost per room), as long as the reduced price covers, fixed cost per room or variable cost per room? We can reduce prices as long as the reduced price covers the variable cost per room -because we are going to have the fixed costs not matter if we have the person in the room or not High Value Customers tend to book early or last? last Do we sell "time bloc ks" or "physical products"? time blocks What implication do time blocks have? we cannot store it for tomorrow, it is gone once it is not sold for that day "I want my hotel to be the first to sell out in the market": Correct or incorrect? incorrect RM can b e organized with different levels regarding the people involved. How many? Which ones? Property Level - Corporate Level - 3rd Party Services What does a booking curve represent? the expected number of bookings for each day until the arrival date -forecaste d bookings What does a pace report track? The OTB reservations against the forescasted reservations Who attends the weekly RM meetings? -Revenue manager -General manager Sales manager -Rooms manager ***and sometimes -Food and Beverage management -Marketing -HR management How many internal performance indicators do we have? 6: OR, ADR, RevPar, and the percent changes of each of them How many external performance indicators do we have? 6: OR index, ADR index, RevPar index, and the percent changes of each of them What is the minimum number of hotels in a comp set? 4 What is the threshold in the OR, ADR and RevPar indexes that determines the point we are outperforming the comp set? 100 Price from a marketing standpoint includes both monetary and ________________costs non‐monetary price The amount of money charged for a good or service. BAR and BRG The hotel makes a promise that the room prices found on their website are the best rates compared to any other sites. Example of BAR guarantee? If you f ound a better rate then you will get that rate plus some additional discount (within 24 hours of making the reservation) in PA Who requires whom to sign a rate parity agreement? OTA In what type of rates are the "Last Room Available Agreements" signed? Corporate Consumer reference prices: what is bigger, the increase in demand derived from reducing a rate by $100 or the decrease in demand resulting from augmenting a rate by $100? the decrease in demand resulting from augmenting a rate by $100 -because it is more impactful What is more appealing to hotel guests: a discount of $10 in three supplementary products (total savings are $30), or a discount of $30 in just one supplementary product so that it becomes free? a discount of $30 in just one supplementary p roduct so that it becomes free -Discount in just one supplementary product so that it becomes free is more appealing to a guest Rate portfolio The matrix of available rates by forecasted occupancy