HTM 4454 Exam 1 Review- ospitality and
Restaurant Training or Human Resource
Management
_______ occurs when a hotel sells a room at a discounted price when that room cout have
been sold for a higher price
a. rate parity
b. rate transparency
c. rate dilution
d. cross product elasticity
e. rate cannibalization
e. rate cannibalization
Rebecca is the director of revenue management for a hotel in Blacksburg with 160 rooms. Last
Tuesday she was successful in renting 120 of her rooms. Her total room revenue was $20,000.
What was her occupancy rate?
a. 55
b. 65
c. 75
d. 85
e. None of the above
c. 75
Because of the cyclical demand characteristic of most hotels and the perishability of the hotel
product (rooms), the emphasis of revenue management focuses on ____________.
a. inventory management
b. human resource management
c. cost management
d. information systems management
e. demand management
e. demand management
, Apart from a "science", in what sense is Revenue Management called an "art"?
The art comes from moving things around to optimize the most revenue, also called Creativity
What is bigger in the tourism industry, fixed costs or variable costs?
Fixed costs
We can reduce prices (even below total cost per room), as long as the reduced price covers
the fixed cost per room or variable cost per room?
Variable cost per room
High value customers tend to book early or last?
Last
Do we sell "time blocks" or "physical products"?
Time blocks
- Once the day has passed, the rooms that didn't sell can't be made up and sold the next day
What implications does selling time blocks have?
Perishability
"I want my hotel to be the first to sell out in the market": Correct or incorrect?
Incorrect
RM can be organized with different levels regarding the people involved. How many? Which
ones?
- Corporate
- Property
- 3rd Party
What does a booking curve represent?
Forecasted bookings
What does a pace report track?
The OTB reservations against the forecasted reservations
Who attends the weekly RM meetings?
- Revenue Manager
- General Manager
Restaurant Training or Human Resource
Management
_______ occurs when a hotel sells a room at a discounted price when that room cout have
been sold for a higher price
a. rate parity
b. rate transparency
c. rate dilution
d. cross product elasticity
e. rate cannibalization
e. rate cannibalization
Rebecca is the director of revenue management for a hotel in Blacksburg with 160 rooms. Last
Tuesday she was successful in renting 120 of her rooms. Her total room revenue was $20,000.
What was her occupancy rate?
a. 55
b. 65
c. 75
d. 85
e. None of the above
c. 75
Because of the cyclical demand characteristic of most hotels and the perishability of the hotel
product (rooms), the emphasis of revenue management focuses on ____________.
a. inventory management
b. human resource management
c. cost management
d. information systems management
e. demand management
e. demand management
, Apart from a "science", in what sense is Revenue Management called an "art"?
The art comes from moving things around to optimize the most revenue, also called Creativity
What is bigger in the tourism industry, fixed costs or variable costs?
Fixed costs
We can reduce prices (even below total cost per room), as long as the reduced price covers
the fixed cost per room or variable cost per room?
Variable cost per room
High value customers tend to book early or last?
Last
Do we sell "time blocks" or "physical products"?
Time blocks
- Once the day has passed, the rooms that didn't sell can't be made up and sold the next day
What implications does selling time blocks have?
Perishability
"I want my hotel to be the first to sell out in the market": Correct or incorrect?
Incorrect
RM can be organized with different levels regarding the people involved. How many? Which
ones?
- Corporate
- Property
- 3rd Party
What does a booking curve represent?
Forecasted bookings
What does a pace report track?
The OTB reservations against the forecasted reservations
Who attends the weekly RM meetings?
- Revenue Manager
- General Manager
