Revenue Management – Final Exam Questions &
Answers (2026 Edition)
Whatis theindustrytermusedto describethesum of pricespaid by a business's customers?
- ANS-
Total Revenues
Historically,whatconcepthavehospitalitymanagerschieflyusedto calculatetheir selling prices?-
ANS-Costs
Whatis an algebraicequivalentof theformula:Sales= Costs + Profit? - ANS-Profit = Sales- Costs
Whatis thenamefor thenetvalueachievedby bothpartiesin a businesstransaction?- ANS-Profit
Whatelementis not presentin a bartereconomy?- ANS-Money
Whatis theformulausedto calculatean owner'sROI? - ANS-Owner'sInvestmentReturn / Owner's
Original Investment = Owner's Return on Investment
Sandy has 100 hotel rooms to sell. This Saturday night has enough customers125 to sell
roomsso she
will be refusing25 requestsfor rooms.Whatis this an exampleof? - ANS-Constrained Supply
Which industrywasthefirst to useYield Managementprinciples?- ANS-Airline
Whatis theindustrytermusedto describethesellingof roomswhicharenot actuallyavailable for
sale?- ANS-Overbooking
Whatis theformulausedto calculateAverageDaily Rate?- ANS-Total Room'sRevenue / Total
Rooms Sold = Average Daily Rate
Tashia'shotelsold 175roomslastnight at an ADR of $200.00.Her hotelhas 250 rooms. What was
Tashia's occupancy % last night?
- ANS-70%
Tashia'shotelsold 175roomslastnight at an ADR of $200.00.Her hotelhas 250 rooms. What was
Tashia's RevPAR last night?- ANS-$140.00
Whatis theindustrytermfor theaveragerevenuegeneratedby eachoccupiedguestroom during a
defined period of time?
- ANS-RevPOR
Whatis theformulausedto calculateGOPPAR? - ANS-(Total Revenue- ManagementControllable
Expenses) / Rooms Available to Sell = GOPPAR
,Whatis theindustrytermfor a customergroupwhichcan be readilyidentifiedby oneor more
common characteristics?
- ANS-Market Segment
Whatis rack rate?- ANS-The price of roomswhenno discountsof any typeareoffered
Whatis:
Total periodrevenue
(Numberof availableseats)x (hours of seatavailability)- ANS-The formulafor RevPASH
What is the term used to identify a management philosophy that places customer
ahead
gain
of short-
termrevenuemaximizationin revenuemanagementdecisionmaking? - ANS-Customer-centric
revenue management
Whatis thetermusedto describethepotentialcustomersto whoma business'smarketing activities
and messages are directed?
- ANS-The target market
Whatis thetermusedto describeeffortsundertakento encouragetraveland tourismto a specific
geographic area or attraction?
- ANS-Destination Marketing
Whatis thenamefor thevaluegivenup by a buyerand a sellerin a businesstransaction?- ANS-Price
Charging guestsfor watchinga "Pay-Per-View"moviein theirhotelguestroomis an example of what
type of pricing?- ANS-Two-tiered pricing
Whatis thefundamentalassumptionupon whichtheconceptof consumerrationalityis based?- ANS-
Buyers act in ways that are of personal benefit to them
Whatis therevenuemanagementtermusedto describetheperceivedbenefitgained,minus the price
paid, in a business transaction?
- ANS-Value
Whatis createdwhena sellercommunicatesto a buyera descriptionof a productto be sold and the
price at which that product will be sold?
- ANS-A value proposition
Which oneof thefollowingtermsis not oneof the4 Ps of theMarketingMix? - ANS- Proposition
Which of thefollowingtermswouldbe includedin thePlaceportionof a hotel'smarketing mix?-
ANS-Distribution Channels
Whatis thefundamentalassumptionupon whichtheLaw of Supplyis based?- ANS- The higher the
demand for a product the more of it will be produced by sellers
, Accordingto Alfred Marshall'swork,if theprice of a productis lowerthanthenatural,or equilibrium
price, what will happen?
- ANS-The demand fort he product would exceed its supply
Assumean equilibriumprice (P1) is in placefor a product.Whatwouldthelawof supplyand demand
predict as an outcome if demand for that product increased?
- ANS-The new price (P2) would be lower
than the previous price (P1) because supply woulddecrease
What concept is displayed by the intersecting point on a supply and demand -curve?
ANS-An
estimateof theamountof a productthatwouldbe purchasedat a knownprice and point in time
Whatmustbe trueif a productproduceris to continuecreatingand sellingproducts?- ANS-
Revenues must exceed costs
Whatis thespecializedbranchof accountingthatfocuseson recordingand analyzingthe expenses
incurred by an organization?
- ANS-Cost Accounting
Whatis theindustrytermfor thepointat whichan organization'srevenuesexactlyequalits costs?-
ANS-Break-even point
Which of thefollowingfoodservicecostsis a variablecost? - ANS-Food
Which of thefollowinglodgingcostsis a fixedcost?- ANS-Mortgagepayments
In a hospitalityindustrybreak-evenanalysisgraph the Total Revenuesline startsat 0. Why doesthe
Total Costs line alwaysstart fartherup the y axis? - ANS-Becausefixed costs are incurred even if no
guests are served or rooms are sold
Which of thefollowingstatementsaboutunit costsin thehospitalityindustryis true?- ANS-Unit
costs will vary based upon how high or low an item is priced
Which of thefollowingstatementsabouttherelationshipbetweencostsand pricing is true?- ANS-An
appropriate selling price for a product or service must dictate
allowable
its costs
If a Revenue Manager implements an organization's strategic pricing planpersonal
what
characteristicof thatRevenueManagerwill be mostimportantfor ensuringtheplan's success?- ANS-
An understanding of an organization's customers
Which formularepresentsa buyer'sviewof a salestransaction?- ANS-PerceivedValue
- SellingPrice = PersonalProfit
Whattypeof benefitis lacking in materialqualitiesand is not ableto be touchedor seenbut
nonetheless can still be perceived?
- ANS-Intangible
Answers (2026 Edition)
Whatis theindustrytermusedto describethesum of pricespaid by a business's customers?
- ANS-
Total Revenues
Historically,whatconcepthavehospitalitymanagerschieflyusedto calculatetheir selling prices?-
ANS-Costs
Whatis an algebraicequivalentof theformula:Sales= Costs + Profit? - ANS-Profit = Sales- Costs
Whatis thenamefor thenetvalueachievedby bothpartiesin a businesstransaction?- ANS-Profit
Whatelementis not presentin a bartereconomy?- ANS-Money
Whatis theformulausedto calculatean owner'sROI? - ANS-Owner'sInvestmentReturn / Owner's
Original Investment = Owner's Return on Investment
Sandy has 100 hotel rooms to sell. This Saturday night has enough customers125 to sell
roomsso she
will be refusing25 requestsfor rooms.Whatis this an exampleof? - ANS-Constrained Supply
Which industrywasthefirst to useYield Managementprinciples?- ANS-Airline
Whatis theindustrytermusedto describethesellingof roomswhicharenot actuallyavailable for
sale?- ANS-Overbooking
Whatis theformulausedto calculateAverageDaily Rate?- ANS-Total Room'sRevenue / Total
Rooms Sold = Average Daily Rate
Tashia'shotelsold 175roomslastnight at an ADR of $200.00.Her hotelhas 250 rooms. What was
Tashia's occupancy % last night?
- ANS-70%
Tashia'shotelsold 175roomslastnight at an ADR of $200.00.Her hotelhas 250 rooms. What was
Tashia's RevPAR last night?- ANS-$140.00
Whatis theindustrytermfor theaveragerevenuegeneratedby eachoccupiedguestroom during a
defined period of time?
- ANS-RevPOR
Whatis theformulausedto calculateGOPPAR? - ANS-(Total Revenue- ManagementControllable
Expenses) / Rooms Available to Sell = GOPPAR
,Whatis theindustrytermfor a customergroupwhichcan be readilyidentifiedby oneor more
common characteristics?
- ANS-Market Segment
Whatis rack rate?- ANS-The price of roomswhenno discountsof any typeareoffered
Whatis:
Total periodrevenue
(Numberof availableseats)x (hours of seatavailability)- ANS-The formulafor RevPASH
What is the term used to identify a management philosophy that places customer
ahead
gain
of short-
termrevenuemaximizationin revenuemanagementdecisionmaking? - ANS-Customer-centric
revenue management
Whatis thetermusedto describethepotentialcustomersto whoma business'smarketing activities
and messages are directed?
- ANS-The target market
Whatis thetermusedto describeeffortsundertakento encouragetraveland tourismto a specific
geographic area or attraction?
- ANS-Destination Marketing
Whatis thenamefor thevaluegivenup by a buyerand a sellerin a businesstransaction?- ANS-Price
Charging guestsfor watchinga "Pay-Per-View"moviein theirhotelguestroomis an example of what
type of pricing?- ANS-Two-tiered pricing
Whatis thefundamentalassumptionupon whichtheconceptof consumerrationalityis based?- ANS-
Buyers act in ways that are of personal benefit to them
Whatis therevenuemanagementtermusedto describetheperceivedbenefitgained,minus the price
paid, in a business transaction?
- ANS-Value
Whatis createdwhena sellercommunicatesto a buyera descriptionof a productto be sold and the
price at which that product will be sold?
- ANS-A value proposition
Which oneof thefollowingtermsis not oneof the4 Ps of theMarketingMix? - ANS- Proposition
Which of thefollowingtermswouldbe includedin thePlaceportionof a hotel'smarketing mix?-
ANS-Distribution Channels
Whatis thefundamentalassumptionupon whichtheLaw of Supplyis based?- ANS- The higher the
demand for a product the more of it will be produced by sellers
, Accordingto Alfred Marshall'swork,if theprice of a productis lowerthanthenatural,or equilibrium
price, what will happen?
- ANS-The demand fort he product would exceed its supply
Assumean equilibriumprice (P1) is in placefor a product.Whatwouldthelawof supplyand demand
predict as an outcome if demand for that product increased?
- ANS-The new price (P2) would be lower
than the previous price (P1) because supply woulddecrease
What concept is displayed by the intersecting point on a supply and demand -curve?
ANS-An
estimateof theamountof a productthatwouldbe purchasedat a knownprice and point in time
Whatmustbe trueif a productproduceris to continuecreatingand sellingproducts?- ANS-
Revenues must exceed costs
Whatis thespecializedbranchof accountingthatfocuseson recordingand analyzingthe expenses
incurred by an organization?
- ANS-Cost Accounting
Whatis theindustrytermfor thepointat whichan organization'srevenuesexactlyequalits costs?-
ANS-Break-even point
Which of thefollowingfoodservicecostsis a variablecost? - ANS-Food
Which of thefollowinglodgingcostsis a fixedcost?- ANS-Mortgagepayments
In a hospitalityindustrybreak-evenanalysisgraph the Total Revenuesline startsat 0. Why doesthe
Total Costs line alwaysstart fartherup the y axis? - ANS-Becausefixed costs are incurred even if no
guests are served or rooms are sold
Which of thefollowingstatementsaboutunit costsin thehospitalityindustryis true?- ANS-Unit
costs will vary based upon how high or low an item is priced
Which of thefollowingstatementsabouttherelationshipbetweencostsand pricing is true?- ANS-An
appropriate selling price for a product or service must dictate
allowable
its costs
If a Revenue Manager implements an organization's strategic pricing planpersonal
what
characteristicof thatRevenueManagerwill be mostimportantfor ensuringtheplan's success?- ANS-
An understanding of an organization's customers
Which formularepresentsa buyer'sviewof a salestransaction?- ANS-PerceivedValue
- SellingPrice = PersonalProfit
Whattypeof benefitis lacking in materialqualitiesand is not ableto be touchedor seenbut
nonetheless can still be perceived?
- ANS-Intangible
