Revenue management final

Revenue management final ADR formula - ANS-Total Rooms Revenue / Total Rooms Sold Value proposition - ANS-when a seller communicates to a buyer a description of a product to be sold and the price at which that product will be sold Owners ROI formula - ANS-Owners Investment Return/ Owner's Original Investment Profit - ANS-net value achieved by both parties in a business transaction GOPAR formula - ANS-Total revenue - Management Controllable Expenses / Rooms Available to sell Destination marketing - ANS-used to describe efforts undertaken to encourage travel and tourism to a specific geographic area or attraction What is the fundamental assumption upon which the law of supply is based? - ANS- The higher the demand for a product, the more of it will be produced by sellers What must be true if a product is to continue creating and selling products? - ANS- Revenue must exceed costs T/F: Unit costs will vary based upon how high or low an item is priced? - ANS-True Sandy has 100 hotels rooms to sell. This Saturday night has enough customers to sell 125 rooms so she will be refusing 25 requests for rooms. What is this an example of? - ANS-Constrained supply What is an algebraic equivalent of the formula: Sales = Costs + Profit? - ANS-Profit = Sales - Costs Price - ANS-Value given up by a buyer and seller in a business transaction Cost Accounting - ANS-the specialized branch of accounting that focuses on recording and analyzing the expenses incurred by an organization Rack rate - ANS-the price of rooms when no discounts of any type are offered RevPOR definition - ANS-average revenue generated by each occupied guests room during a period of time Costs - ANS-What hospitality managers used to calculate their selling price Continues...