REVENUE MANGEMENT FINAL EXAM
When yield management was introduced, what type of information was crucial to its success?
a. forecasting
b. destination times
c. fuel prices
d. employee wages - a. forecasting; gives you an idea on where you are going to land on ADR,
occupancy, and RevPAR
What are the criteria a business or industry must meet in order to maximize the potential of an
effective revenue management strategy? - Unpredictable demand, low variable cost/high fix cost,
and perishable products
What can be described as the cost differential between an occupied room and a vacant room?
a. uncontrollable cost
b. controllable cost
c. fixed cost
d. variable cost - d. variable cost; will have to pay to clean each time the hotel room is used
In a hotel, why does it make more sense to improve profitability by raising revenue rather than
by cutting costs? - There is a limit on cutting costs but no limit on generating revenue
Room revenue divided by the number of room nights sold provides you with what?
a. average daily rate (ADR)
b. RevPAR
c. GoPAR
d. occupancy rate - a. average Daily Rate (ADR)
, If a hotel has 700 rooms, and if it sold 3,850 rooms in a one-week period, what was its
occupancy percentage? - 78.57%
RevPAR is a statistic that is used to measure the? - Dividing the total room revenue by the total
number of rooms available
Room rate minus the variable cost of a room equals what? - Contribution margin
Which metric can be used to assess cost efficiency?
a. average daily rate (ADR)
b. RevPAR
c. GoPAR
d. occupancy rate - c. GoPar
Which factor would be most helpful for a property to consider when determining its competitive
set? - Market segments
If a hotel has 1,500 rooms, while the two other hotels in the competitive set have 1,800 and
1,300. What is the capacity market share for this hotel? - 32.61%
A property's market share for the year is 24 percent and its fair share for the same time period is
28. What conclusion can be reached from this data? - You didn't get your fair share
What is a penetration index? - It indicates how well a hotel or company has successfully captured
their total market
What is the most frequently contested issue when it comes to measuring revenue management
results? - A particular improvement that can be tracked over time
When yield management was introduced, what type of information was crucial to its success?
a. forecasting
b. destination times
c. fuel prices
d. employee wages - a. forecasting; gives you an idea on where you are going to land on ADR,
occupancy, and RevPAR
What are the criteria a business or industry must meet in order to maximize the potential of an
effective revenue management strategy? - Unpredictable demand, low variable cost/high fix cost,
and perishable products
What can be described as the cost differential between an occupied room and a vacant room?
a. uncontrollable cost
b. controllable cost
c. fixed cost
d. variable cost - d. variable cost; will have to pay to clean each time the hotel room is used
In a hotel, why does it make more sense to improve profitability by raising revenue rather than
by cutting costs? - There is a limit on cutting costs but no limit on generating revenue
Room revenue divided by the number of room nights sold provides you with what?
a. average daily rate (ADR)
b. RevPAR
c. GoPAR
d. occupancy rate - a. average Daily Rate (ADR)
, If a hotel has 700 rooms, and if it sold 3,850 rooms in a one-week period, what was its
occupancy percentage? - 78.57%
RevPAR is a statistic that is used to measure the? - Dividing the total room revenue by the total
number of rooms available
Room rate minus the variable cost of a room equals what? - Contribution margin
Which metric can be used to assess cost efficiency?
a. average daily rate (ADR)
b. RevPAR
c. GoPAR
d. occupancy rate - c. GoPar
Which factor would be most helpful for a property to consider when determining its competitive
set? - Market segments
If a hotel has 1,500 rooms, while the two other hotels in the competitive set have 1,800 and
1,300. What is the capacity market share for this hotel? - 32.61%
A property's market share for the year is 24 percent and its fair share for the same time period is
28. What conclusion can be reached from this data? - You didn't get your fair share
What is a penetration index? - It indicates how well a hotel or company has successfully captured
their total market
What is the most frequently contested issue when it comes to measuring revenue management
results? - A particular improvement that can be tracked over time
