HMD 440 (Midterm Chapter 1-5) Questions and Answers Already Passed
The price of a hotel room changes depending upon the time of the year and sometimes within
the same week - Answers True
Revenue management utilizes established economic theories combined with the power of
historical information to help formulate a strategy for setting the correct price that encourages
the maximum amount of sales and, in turn, provides the most significant profit for a business. -
Answers True
Revenue Management takes into account the available inventory of a product or service and
sets a price in an attempt to "sell it all" for the maximum price. - Answers True
According to Cross (1997), revenue management refers to selling perishable goods and
services to the most profitable mix of customers, producing maximum revenues. - Answers
True
The elements of Revenue Management system are: - Answers All of the above (price fences,
forecasting, inventory control/overbooking, price discrimination
In Revenue Management, a hotel revenue manager should be focused on the following: -
Answers All of the above (Right forecasting, right website, right team approach, right channel,
right customer
Forecasting is the critical technique used by revenue management to anticipate demand. -
Answers True
Prior to the concept of revenue management, businesses utilized a practice known as yield
management to make pricing and inventory decisions. - Answers True
Yield Management is about "selling the right capacity, to the right customers, at the right time
for the right prices." - Answers True
Artificial intelligence is the ability of a computer to follow a program or series of instructions for
a desired outcome and attempts to mimic natural or human intelligence. - Answers True
Information technology is a process of using integrated computer technology to manage
systems in an attempt to minimize efficiency and productivity. - Answers False
Revenue Management principles are used in the following segments of the hospitality industry: -
Answers All of these (Hotels, Restaurants, Spas, Casinos, Golf Courses)
The airline industry was the pioneer of modern revenue management. - Answers True
GDS stands for Global Distribution System. - Answers True
Revenue Management is multi-disciplinary, and is supported by three major areas: - Answers All
, of the above (Financial, Marketing, operations)
Based on the article by S. Kimes in the first Module, fill in the blanks for the following sentence:
"Basically, yield management is the process of allocating the right ____________ to the right
____________ at the right _________ so as to maximize revenue or yield." - Answers Type of
capacity, kind of customer, price
According to the article by S. Kimes on Module 1, what should be the goal of hotel managers? -
Answers To maximize revenue
According to the article by S. Kimes, what problem do multiple night stays pose to revenue
management? - Answers A guest may arrive during a low demand day and stay over high
demand days as well
According to the article on Module 1 by S. Kimes, yield management systems require
commitment from top management to be effective. - Answers True
According to the article on Module 1 by S. Kimes, one of the benefits of initiating a yield
management system is that it requires more employee training. - Answers False
What are some of the topics that should be discussed in revenue management meetings? -
Answers All of these (The marketplace and general economic conditions)
Human capital is used to describe the accumulation of: - Answers Manpower with useful
abilities and talents in a particular area of expertise
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 difference between inventory analysis and reservations inventory analysis? -
Answers Inventory analysis looks at supply and reservations analysis looks at demand.
Revenue leaders needs both hard and soft skills. What was an example of a soft skill discussed
in chapter 2? - Answers Communicate effectively, lead the revenue team, analyze trends,
demonstrate professionalism, and develop effective strategy
What is pricing analysis? - Answers Revenue leader will evaluate the previous day's performance
to determine if rates were optimized to bring in maximum revenue.
What is price fixing? - Answers Communication between two or more businesses to set prices
to a certain level.
What is displacement analysis? - Answers It is a method for comparing the value of two
business opportunities to determine which one is more profitable. Revenue leaders evaluate
displacement for opportunities.
The price of a hotel room changes depending upon the time of the year and sometimes within
the same week - Answers True
Revenue management utilizes established economic theories combined with the power of
historical information to help formulate a strategy for setting the correct price that encourages
the maximum amount of sales and, in turn, provides the most significant profit for a business. -
Answers True
Revenue Management takes into account the available inventory of a product or service and
sets a price in an attempt to "sell it all" for the maximum price. - Answers True
According to Cross (1997), revenue management refers to selling perishable goods and
services to the most profitable mix of customers, producing maximum revenues. - Answers
True
The elements of Revenue Management system are: - Answers All of the above (price fences,
forecasting, inventory control/overbooking, price discrimination
In Revenue Management, a hotel revenue manager should be focused on the following: -
Answers All of the above (Right forecasting, right website, right team approach, right channel,
right customer
Forecasting is the critical technique used by revenue management to anticipate demand. -
Answers True
Prior to the concept of revenue management, businesses utilized a practice known as yield
management to make pricing and inventory decisions. - Answers True
Yield Management is about "selling the right capacity, to the right customers, at the right time
for the right prices." - Answers True
Artificial intelligence is the ability of a computer to follow a program or series of instructions for
a desired outcome and attempts to mimic natural or human intelligence. - Answers True
Information technology is a process of using integrated computer technology to manage
systems in an attempt to minimize efficiency and productivity. - Answers False
Revenue Management principles are used in the following segments of the hospitality industry: -
Answers All of these (Hotels, Restaurants, Spas, Casinos, Golf Courses)
The airline industry was the pioneer of modern revenue management. - Answers True
GDS stands for Global Distribution System. - Answers True
Revenue Management is multi-disciplinary, and is supported by three major areas: - Answers All
, of the above (Financial, Marketing, operations)
Based on the article by S. Kimes in the first Module, fill in the blanks for the following sentence:
"Basically, yield management is the process of allocating the right ____________ to the right
____________ at the right _________ so as to maximize revenue or yield." - Answers Type of
capacity, kind of customer, price
According to the article by S. Kimes on Module 1, what should be the goal of hotel managers? -
Answers To maximize revenue
According to the article by S. Kimes, what problem do multiple night stays pose to revenue
management? - Answers A guest may arrive during a low demand day and stay over high
demand days as well
According to the article on Module 1 by S. Kimes, yield management systems require
commitment from top management to be effective. - Answers True
According to the article on Module 1 by S. Kimes, one of the benefits of initiating a yield
management system is that it requires more employee training. - Answers False
What are some of the topics that should be discussed in revenue management meetings? -
Answers All of these (The marketplace and general economic conditions)
Human capital is used to describe the accumulation of: - Answers Manpower with useful
abilities and talents in a particular area of expertise
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 difference between inventory analysis and reservations inventory analysis? -
Answers Inventory analysis looks at supply and reservations analysis looks at demand.
Revenue leaders needs both hard and soft skills. What was an example of a soft skill discussed
in chapter 2? - Answers Communicate effectively, lead the revenue team, analyze trends,
demonstrate professionalism, and develop effective strategy
What is pricing analysis? - Answers Revenue leader will evaluate the previous day's performance
to determine if rates were optimized to bring in maximum revenue.
What is price fixing? - Answers Communication between two or more businesses to set prices
to a certain level.
What is displacement analysis? - Answers It is a method for comparing the value of two
business opportunities to determine which one is more profitable. Revenue leaders evaluate
displacement for opportunities.
