HTM EXAM 1 (QUESTIONS & ANSWERS) 2025 VERIFIED 100% CORRECT!!
Customers' willingness to pay and perceived value vary from one customer to another,
or one occasion to another.
True or False - (answer)True
To prevent high price guests from going to the low price options, hotels may not allow
customers to self-select.
True or False - (answer)False
Rate fences can help hotels reach their target markets without cannibalization.
True or False - (answer)True
Hotels can implement differential pricing because different customer groups have their
unique needs, wants and desires, as well as different levels of willingness to pay.
True or False - (answer)True
Service standardization can help to address the inconsistency of service.
True or False - (answer)True
Geographic segmentation is usually used to set up rate fences in hotel revenue
management.
True or False - (answer)False
The two approaches of price control in hotel industry are market-segment-based
differential pricing and time-based dynamic pricing.
True or False - (answer)True
, HTM EXAM 1 (QUESTIONS & ANSWERS) 2025 VERIFIED 100% CORRECT!!
Which is NOT the major factor to consider when implementing differential pricing?
A. Market segmentation
B. Product versioning
C. Consumer welfare
D. Self-selection - (answer)C. Consumer welfare
As a revenue manager, the ability to communicate with other departments and
management about the hotel revenue management solutions is not as important as
other revenue management related skills.
True or False - (answer)False
What is the industry term for a customer group which can be readily identified by one or
more common characteristics?
A. Market segment
B. STR group
C. Revenue group
D. Comp set - (answer)A. Market Segment
Which of the Four I's of service refers to the tendency of consumers to equate the
quality of service provided with the attitude of the person who actually provides the
service?
A. Intangibility
B. Inseparability
C. Inventory
D. Inconsistency - (answer)B. Inseparability
Customers' willingness to pay and perceived value vary from one customer to another,
or one occasion to another.
True or False - (answer)True
To prevent high price guests from going to the low price options, hotels may not allow
customers to self-select.
True or False - (answer)False
Rate fences can help hotels reach their target markets without cannibalization.
True or False - (answer)True
Hotels can implement differential pricing because different customer groups have their
unique needs, wants and desires, as well as different levels of willingness to pay.
True or False - (answer)True
Service standardization can help to address the inconsistency of service.
True or False - (answer)True
Geographic segmentation is usually used to set up rate fences in hotel revenue
management.
True or False - (answer)False
The two approaches of price control in hotel industry are market-segment-based
differential pricing and time-based dynamic pricing.
True or False - (answer)True
, HTM EXAM 1 (QUESTIONS & ANSWERS) 2025 VERIFIED 100% CORRECT!!
Which is NOT the major factor to consider when implementing differential pricing?
A. Market segmentation
B. Product versioning
C. Consumer welfare
D. Self-selection - (answer)C. Consumer welfare
As a revenue manager, the ability to communicate with other departments and
management about the hotel revenue management solutions is not as important as
other revenue management related skills.
True or False - (answer)False
What is the industry term for a customer group which can be readily identified by one or
more common characteristics?
A. Market segment
B. STR group
C. Revenue group
D. Comp set - (answer)A. Market Segment
Which of the Four I's of service refers to the tendency of consumers to equate the
quality of service provided with the attitude of the person who actually provides the
service?
A. Intangibility
B. Inseparability
C. Inventory
D. Inconsistency - (answer)B. Inseparability
