Revenue management Exam Questions With Accurate Answers A+ Grade

Revenue management Exam Questions With
Accurate Answers 2025\2026 A+ Grade
Main rm industry characteristics
- accurate answers-Fixed capacity;
High fixed cost and low marginal sales;
High demand fluctuations;
Sell products in advance;
Perishable inventory;
Multiple and clear market segments;

Main RM problems
- accurate answers-Multiple-night stay;
Multiplier effect;
Booking lead time

Main idea of RM
- accurate answers-Selling the right product, to the right customer, at the right
price,for the right time and through the right dist.channel

RevPar
- accurate answers-Revenue per available room
ADR*occ%=RevPar
Total revenue /total rooms available
Doesn't show you additional revenue

RevPor
- accurate answers-Revenue per Occupied room, at specific point in time
Total revenue/total rooms occupied

NRevPar
- accurate answers-Net room revenue, all room revenue minus all dist channel
cost
Net room revenue/total rooms available
Net revenue=total revenue - dist.cost

GOPPAR
- accurate answers-Gross operating profit, best performance indicator, since it
shows all revenue(not just rooms)-all cost

,GOP/total rooms available for sale=GOPPAR
GOP=total revenue-manag.cont. expense

Minimum length of stay
- accurate answers-During high demand;
Full in hotel after hi demand stays;
Develop packages

Maximum length of stay
- accurate answers-During low demand;
Restrict the length of stay for people wanting to stay more

Closed to arrival
- accurate answers-During extremely hi demand periods;
Nobody can arrive that day;
Higher occupancy rate including overbooking

Competitive set
- accurate answers-Comparison of your performance according to your
competition through KPI

KPI- what do they show, how to interpret, how to analyze
- accurate answers--it is a metric which is used to determine how you are
performing against your business objective

Cost based pricing
- accurate answers-A pricing philosophy that involves the cost of product or
service the profit desired in order to achieve price
Disadvantages- unit cost changes with volume; overpricing in weak market,
underpricing in strong

Competition based pricing
- accurate answers-A method of pricing in which the seller makes the decision
about pricing according to the competition
Find the best price BUT important to create value by being unique
Disadvantages- ignores their own cost, competitors may mimic the price

, Customer value-based pricing
- accurate answers-A method of pricing in which the seller makes a decision
based on what the customer can justify paying( willingness to pay)
Comprehensive understanding of customer and what they value
Disadvantages- diff. To obtain data

price
- accurate answers-tc+margin

steps in setting pricing policy
- accurate answers--select the objective
-determine demand
-estimate cost
-analyse competitors
-select pricing method
-define list of prices

Single rate pricing
- accurate answers-Charming the same price to all buyers

Differential pricing
- accurate answers-Charging different price to different customers for same
products or slightly different one
Multirate- different rates for more revenue

Fixed pricing
- accurate answers-Pricing that doesn't change according to demand

Variable
- accurate answers-Price is changing according to demand( different
weekdays)

Rate fences
- accurate answers-Logical rational rules that are designed to allow customers
to segment themselves into appropriate rate categories based on their needs,
behavior and willingness to pay

Connection between market segment and rate fence
- accurate answers-Preventing higher segments from purchasing products for