Hospitality Revenue Management final
exam review
What is the industry term used to describe the sum of prices paid by a business's
customers? - Question and answerstotal revenues
Historically, what concept have hospitality managers chiefly used to calculate their
selling prices? - Question and answerscosts
What is an algebraic equivalent of the formula: Sales = Costs + Profit? - Question and
answersprofit=sales-costs
What is the name for the net value achieved by both parties in a business transaction? -
Question and answersprofit
What element is not present in a barter economy? - Question and answersmoney
What is the formula used to calculate an owner's ROI? - Question and answersOwner'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? -
Question and answersconstrained supply
Which industry was the first to use Yield Management principles? - Question and
answersairline
What is the industry term used to describe the selling of rooms which are not actually
available for sale? - Question and answersoverbooking
What is the formula used to calculate Average Daily Rate? - Question and answersTotal
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? - Question and answers70%
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? - Question and answers$140
What is the industry term for the average revenue generated by each occupied
guestroom during a defined period of time? - Question and answersRevPOR
What is the formula used to calculate GOPPAR? - Question and answers(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? - Question and answersmarket segment
What is a rack rate? - Question and answersThe 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) - Question and
answersRevPASH formula
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? -
Question and answersCustomer-centric revenue management
What is the term used to describe the potential customers to whom a business's
marketing activities and messages are directed? - Question and answerstarget market
What is the term used to describe efforts undertaken to encourage travel and tourism to
a specific geographic area or attraction? - Question and answersdestination marketing
What is the name for the value given up by a buyer and a seller in a business
transaction? - Question and answersprice
Charging guests for watching a "Pay-Per-View" movie in their hotel guestroom is an
example of what type of pricing? - Question and answerstwo-tiered pricing
What is the fundamental assumption upon which the concept of consumer rationality is
based? - Question and answersBuyers 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? - Question and answersvalue
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? - Question and answersvalue
proposition
Which of the following terms would be included in the Place portion of a hotel's
marketing mix? - Question and answersdistribution channels
What is the fundamental assumption upon which the Law of Supply is based? -
Question and answersThe higher the demand for a product the more of it will be
produced by sellers
, According to Alfred Marshall's work, if the price of a product is lower than the natural, or
equilibrium price, what will happen? - Question and answersThe demand for the product
would exceed its supply
Assume an equilibrium price (P1) is in place for a product. What would the law of supply
and demand predict as an outcome if demand for that product increased? - Question
and answersThe new price (P2) would be higher than the previous price (P1) and
supply would increase
What concept is displayed by the intersecting point on a supply and demand curve? -
Question and answersAn estimate of the amount of a product that would be purchased
at a known price and point in time
What must be true if a product producer is to continue creating and selling products? -
Question and answersRevenues must exceed costs
What is the specialized branch of accounting that focuses on recording and analyzing
the expenses incurred by an organization? - Question and answerscost accounting
What is the industry term for the point at which an organization's revenues exactly equal
its costs? - Question and answersbreak-even point
Which of the following foodservice costs is a variable cost? - Question and answersfood
Which of the following lodging costs is a fixed cost? - Question and answersmortgage
payments
In a hospitality industry break-even analysis graph the Total Revenues line starts at 0.
Why does the Total Costs line always start farther up the y axis? - Question and
answersBecause fixed costs are incurred even if no guests are served or rooms are
sold
Which of the following statements about unit costs in the hospitality industry is true? -
Question and answersUnit costs will vary based upon how high or low an item is priced
Which of the following statements about the relationship between costs and pricing is
true? - Question and answersAn appropriate selling price for a product or service must
dictate its allowable costs
If a Revenue Manager implements an organization's strategic pricing plan what
personal characteristic of that Revenue Manager will be most important for ensuring the
plan's success? - Question and answersan understanding of an organization's
customers
Which formula represents a buyer's view of a sales transaction? - Question and
answersPerceived Value - Selling Price = Personal Profit
exam review
What is the industry term used to describe the sum of prices paid by a business's
customers? - Question and answerstotal revenues
Historically, what concept have hospitality managers chiefly used to calculate their
selling prices? - Question and answerscosts
What is an algebraic equivalent of the formula: Sales = Costs + Profit? - Question and
answersprofit=sales-costs
What is the name for the net value achieved by both parties in a business transaction? -
Question and answersprofit
What element is not present in a barter economy? - Question and answersmoney
What is the formula used to calculate an owner's ROI? - Question and answersOwner'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? -
Question and answersconstrained supply
Which industry was the first to use Yield Management principles? - Question and
answersairline
What is the industry term used to describe the selling of rooms which are not actually
available for sale? - Question and answersoverbooking
What is the formula used to calculate Average Daily Rate? - Question and answersTotal
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? - Question and answers70%
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? - Question and answers$140
What is the industry term for the average revenue generated by each occupied
guestroom during a defined period of time? - Question and answersRevPOR
What is the formula used to calculate GOPPAR? - Question and answers(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? - Question and answersmarket segment
What is a rack rate? - Question and answersThe 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) - Question and
answersRevPASH formula
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? -
Question and answersCustomer-centric revenue management
What is the term used to describe the potential customers to whom a business's
marketing activities and messages are directed? - Question and answerstarget market
What is the term used to describe efforts undertaken to encourage travel and tourism to
a specific geographic area or attraction? - Question and answersdestination marketing
What is the name for the value given up by a buyer and a seller in a business
transaction? - Question and answersprice
Charging guests for watching a "Pay-Per-View" movie in their hotel guestroom is an
example of what type of pricing? - Question and answerstwo-tiered pricing
What is the fundamental assumption upon which the concept of consumer rationality is
based? - Question and answersBuyers 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? - Question and answersvalue
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? - Question and answersvalue
proposition
Which of the following terms would be included in the Place portion of a hotel's
marketing mix? - Question and answersdistribution channels
What is the fundamental assumption upon which the Law of Supply is based? -
Question and answersThe higher the demand for a product the more of it will be
produced by sellers
, According to Alfred Marshall's work, if the price of a product is lower than the natural, or
equilibrium price, what will happen? - Question and answersThe demand for the product
would exceed its supply
Assume an equilibrium price (P1) is in place for a product. What would the law of supply
and demand predict as an outcome if demand for that product increased? - Question
and answersThe new price (P2) would be higher than the previous price (P1) and
supply would increase
What concept is displayed by the intersecting point on a supply and demand curve? -
Question and answersAn estimate of the amount of a product that would be purchased
at a known price and point in time
What must be true if a product producer is to continue creating and selling products? -
Question and answersRevenues must exceed costs
What is the specialized branch of accounting that focuses on recording and analyzing
the expenses incurred by an organization? - Question and answerscost accounting
What is the industry term for the point at which an organization's revenues exactly equal
its costs? - Question and answersbreak-even point
Which of the following foodservice costs is a variable cost? - Question and answersfood
Which of the following lodging costs is a fixed cost? - Question and answersmortgage
payments
In a hospitality industry break-even analysis graph the Total Revenues line starts at 0.
Why does the Total Costs line always start farther up the y axis? - Question and
answersBecause fixed costs are incurred even if no guests are served or rooms are
sold
Which of the following statements about unit costs in the hospitality industry is true? -
Question and answersUnit costs will vary based upon how high or low an item is priced
Which of the following statements about the relationship between costs and pricing is
true? - Question and answersAn appropriate selling price for a product or service must
dictate its allowable costs
If a Revenue Manager implements an organization's strategic pricing plan what
personal characteristic of that Revenue Manager will be most important for ensuring the
plan's success? - Question and answersan understanding of an organization's
customers
Which formula represents a buyer's view of a sales transaction? - Question and
answersPerceived Value - Selling Price = Personal Profit
