HMD 440 Final Exam Questions and Answers Latest Update 2025-2026
What is distribution channel analysis? - Answers Revenue leaders evaluate the hotel's
distribution channels for production and cost of acquisition.
Which of the following is not an example of revenue management in hospitality: - Answers
Decreasing the price for pool cabanas during the off-season.
What is competitive analysis? - Answers Revenue leaders look to the performance of their hotel
relative to their competitors to benchmark their hotel's performance.
What is the pace report/pick-up analysis? - Answers It answers the question of how many
rooms were actually achieved for the previous night.
What is a market segment review? - Answers Revenue leaders should evaluate where bookings
came from, and which segment(s) were the best in ADR, Occupancy, and RevPAR.
The role of the revenue manager in hospitality operations is to: - Answers Enhance profit
Maximize space
Optimize revenue
Correct! All of these
What is the difference between inventory analysis and reservations inventory analysis? -
Answers Inventory analysis looks at supply and reservations analysis looks at demand.
What are some of the topics that should be discussed in revenue management meetings? -
Answers Hotel performance compared to budget and competition
Forecasting
The marketplace and general economic conditions
Selling strategy
All of these
True or False: Revenue management and yield management are interchangeable phrases. -
Answers True
The concept of perishable inventory is a condition necessary for the successful application of
RM to a service business. It means _____________________ cannot be stored for future sales and
increasing capacity is expensive or not feasible. (fill the gap with the most appropriated answer)
- Answers Rooms
Inventory or capacity units
, Treatment rooms for spas
Correct Answer All of these
An Artificial Neural Network is a machine learning algorithm inspired by, but not identical to,
biological neural networks - Answers True.
What type of forecasting data is represented by the total number of rooms on-the-books? -
Answers Current data
Which of the following is an outcome of over forecasting rooms sold? - Answers Lower
occupancy due to overpricing
What are no shows? - Answers When the guest does not arrive at the hotel on the booked day
and does not cancel the room.
What is unconstrained demand? - Answers The total demand for hotel rooms assuming no
capacity constraint
Fill in the blank: forecast error is the difference between the _________ value and the _____ value.
- Answers Predicted, actual
According to the article, what does ARIMA stand for? - Answers Autoregressive Integrated
Moving Average
What is unconstrained demand? - Answers The total amount of demand in the market
regardless of the supply in the market.
The booking horizon is the way the forecast looks. - Answers False
Imagine that you are asked to categorize the total customer worth of 4 different guests. Then,
rank the guests based on the total amount of revenue they generated for their stay.
Ms. Brown: 3 nights, $200/night room rate, $30/day food and beverage
Mr. Lee: 2 nights, $300/night room rate, $60/day food and beverage, $10 retail for one day
Dr. Green: 5 nights, $150/night room rate, $45/day food and beverage, $200 spa, $200 golf
Mr. and Mrs. Smith: 3 nights, $175/night room rate, $80/day food and beverage, $200 spa, $100
retail
What is the total revenue generated by Dr. Green? - Answers $1375
According to the article on revenue management for casinos, what are two things that a casino
can measure in table games to help them make better decisions regarding minimum bet? -
What is distribution channel analysis? - Answers Revenue leaders evaluate the hotel's
distribution channels for production and cost of acquisition.
Which of the following is not an example of revenue management in hospitality: - Answers
Decreasing the price for pool cabanas during the off-season.
What is competitive analysis? - Answers Revenue leaders look to the performance of their hotel
relative to their competitors to benchmark their hotel's performance.
What is the pace report/pick-up analysis? - Answers It answers the question of how many
rooms were actually achieved for the previous night.
What is a market segment review? - Answers Revenue leaders should evaluate where bookings
came from, and which segment(s) were the best in ADR, Occupancy, and RevPAR.
The role of the revenue manager in hospitality operations is to: - Answers Enhance profit
Maximize space
Optimize revenue
Correct! All of these
What is the difference between inventory analysis and reservations inventory analysis? -
Answers Inventory analysis looks at supply and reservations analysis looks at demand.
What are some of the topics that should be discussed in revenue management meetings? -
Answers Hotel performance compared to budget and competition
Forecasting
The marketplace and general economic conditions
Selling strategy
All of these
True or False: Revenue management and yield management are interchangeable phrases. -
Answers True
The concept of perishable inventory is a condition necessary for the successful application of
RM to a service business. It means _____________________ cannot be stored for future sales and
increasing capacity is expensive or not feasible. (fill the gap with the most appropriated answer)
- Answers Rooms
Inventory or capacity units
, Treatment rooms for spas
Correct Answer All of these
An Artificial Neural Network is a machine learning algorithm inspired by, but not identical to,
biological neural networks - Answers True.
What type of forecasting data is represented by the total number of rooms on-the-books? -
Answers Current data
Which of the following is an outcome of over forecasting rooms sold? - Answers Lower
occupancy due to overpricing
What are no shows? - Answers When the guest does not arrive at the hotel on the booked day
and does not cancel the room.
What is unconstrained demand? - Answers The total demand for hotel rooms assuming no
capacity constraint
Fill in the blank: forecast error is the difference between the _________ value and the _____ value.
- Answers Predicted, actual
According to the article, what does ARIMA stand for? - Answers Autoregressive Integrated
Moving Average
What is unconstrained demand? - Answers The total amount of demand in the market
regardless of the supply in the market.
The booking horizon is the way the forecast looks. - Answers False
Imagine that you are asked to categorize the total customer worth of 4 different guests. Then,
rank the guests based on the total amount of revenue they generated for their stay.
Ms. Brown: 3 nights, $200/night room rate, $30/day food and beverage
Mr. Lee: 2 nights, $300/night room rate, $60/day food and beverage, $10 retail for one day
Dr. Green: 5 nights, $150/night room rate, $45/day food and beverage, $200 spa, $200 golf
Mr. and Mrs. Smith: 3 nights, $175/night room rate, $80/day food and beverage, $200 spa, $100
retail
What is the total revenue generated by Dr. Green? - Answers $1375
According to the article on revenue management for casinos, what are two things that a casino
can measure in table games to help them make better decisions regarding minimum bet? -
