HFT4468 Revenue Management Final Exam
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Which of the following is not a hotel intermediary? - Answer✔Front desk agents
Which travel industry-related business group developed the Global Distribution System? -
Answer✔The airline industry
What was the original purpose of THISCO? - Answer✔To develop a single GDS connection for
major hotel companies
What is true about the calculations required to calculate the following Net ADR Yield formula? -
Answer✔Standard ADR (-) Distribution Channel Costs (=) Net Room Rate
Lani is the revenue manager at the Aloha Inn. In which situation would Lani optimize the Inn's
gross rooms revenues? - Answer✔High Standard ADR, high Net ADR Yield
What is the industry term for a lower room rate that is offered when a potential rooms buyer
exhibits initial price resistance? - Answer✔Fade rate
What is true about a future room reservation booked for a guest whose original reservation
was booked through expedia.com and who is presently checking out of the hotel?
No IDS fees will be paid on the revenue the new reservation will generate - Answer✔No IDS
fees will be paid on the revenue the new reservation will generate
Harold tracks his hotel guest check outs and the number of new reservations made at check
out. Last week a total of 640 guests checked out of his hotel. In that same period, his front desk
staff booked reservations for 32 future rooms nights from this group of check out guests. What
is true at Harold's hotel? - Answer✔The reservation nights booked per check out for last week
was .05
For which distribution channel type do hotels typically employ a shopper's service? -
Answer✔sales made via the telephone
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Which is most often true about room sales made by a hotel's group sales department? -
Answer✔ADRs are lower than average and Net ADR Yield is higher than average
How are most CVBs in the United States funded? - Answer✔By a combination of hotel
occupancy taxes and membership dues
Which statement does not accurately describe a non-electric distribution channel? -
Answer✔CRS is a non-electric distribution channel
Which of the following rooms marketing strategies would contribute to the commoditization of
hotel rooms? - Answer✔Participation on a web site that lists only a hotel's name and a single
rack room rate
Into which hotel industry distribution channel component would a brand's call center worker
enter room reservations he or she has made? - Answer✔CRS
Which components of the hotel industry's current reservation system currently offers its users
the ability to simultaneously see comparative hotel rate information? - Answer✔The GDS and
IDS
Where on a hotel's statement of income and expense (income statement) does the 10th Edition
of the Uniform System of Accounts for Lodging Industry (USALI) recommend travel agency
commissions be recorded? - Answer✔The rooms expense portion
Which common IDS room sales model is most dependent on selling price for its revenue
generation? - Answer✔Opaque model
What is true about proprietary web sites administered by a hotel's franchisor? -
Answer✔Content changes must be implemented by the brand's managers
Lara's rack rate is $299.99. She has been asked to bid on 200 rooms nights needed by a travel
agent seeking housing for a group of seniors touring the area by bus. The travel agency has
requested Lara provide her a net (non-commissionable) rate. Lara's hotel typically pays a 10%
travel agency fee. What would be Lara's per room night net non-commissionable bid for these
rooms if she does not lower her rack rate? - Answer✔$ 269.99
What would be the result of a revenue manager's successful implementation of aggressive
strategies designed to shift guests' future bookings from more expensive distribution channels
to lesser expense channels? - Answer✔Increased Net ADR Yield, increased GOPPOR
What is true about rooms that are sold at prices below a hotel's variable operating costs? -
Answer✔They will cause an increase in RevPAR
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