REVENUE MANAGEMENT FINAL EXAM
REVENUE MANAGEMENT FINAL EXAM QUESTIONS AND ANSWERS GRADED A+
What is the industry term used to describe the sum of prices paid by a
business's customers? - correct answer Total Revenues
Historically, what concept have hospitality managers chiefly used to
calculate their selling prices? - correct answer Costs
What is an algebraic equivalent of the formula: Sales = Costs + Profit? -
correct answer Profit = Sales - Costs
What is the name for the net value achieved by both parties in a
business transaction? - correct answer Profit
What element is not present in a barter economy? - correct answer Money
,REVENUE MANAGEMENT FINAL EXAM
What is the formula used to calculate an owner's ROI? - correct answer
Owner's Investment Return / Owner's Original Investment = Owner's
Return on Investment
Sandy has 100 hotel 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? - correct answer Constrained Supply
Which industry was the first to use Yield Management principles? -
correct answer Airline
What is the industry term used to describe the selling of rooms which
are not actually available for sale? - correct answer Overbooking
What is the formula used to calculate Average Daily Rate? - correct answer
Total Room's Revenue / Total Rooms Sold = Average Daily Rate
Tashia's hotel sold 175 rooms last night at an ADR of $200.00. Her hotel
has 250 rooms. What was Tashia's occupancy % last night? - correct answer
70%
Tashia's hotel sold 175 rooms last night at an ADR of $200.00. Her hotel
has 250 rooms. What was Tashia's RevPAR last night? - correct answer
$140.00
,REVENUE MANAGEMENT FINAL EXAM
What is the industry term for the average revenue generated by each
occupied guestroom during a defined period of time? - correct answer
RevPOR
What is the formula used to calculate GOPPAR? - correct answer (Total
Revenue - Management Controllable Expenses) / Rooms Available to
Sell = GOPPAR
What is the industry term for a customer group which can be readily
identified by one or more common characteristics? - correct answer Market
Segment
What is rack rate? - correct answer The price of rooms when no discounts
of any type are offered
What is:
Total period revenue
(Number of available seats) x (hours of seat availability) - correct answer
The formula for RevPASH
What is the term used to identify a management philosophy that places
customer gain ahead of short-term revenue maximization in revenue
management decision making? - correct answer Customer-centric revenue
management
, REVENUE MANAGEMENT FINAL EXAM
What is the term used to describe the potential customers to whom a
business's marketing activities and messages are directed? - correct answer
The target market
What is the term used to describe efforts undertaken to encourage
travel and tourism to a specific geographic area or attraction? - correct
answer Destination Marketing
What is the name for the value given up by a buyer and a seller in a
business transaction? - correct answer Price
Charging guests for watching a "Pay-Per-View" movie in their hotel
guestroom is an example of what type of pricing? - correct answer Two-
tiered pricing
What is the fundamental assumption upon which the concept of
consumer rationality is based? - correct answer Buyers act in ways that are
of personal benefit to them
What is the revenue management term used to describe the perceived
benefit gained, minus the price paid, in a business transaction? - correct
answer Value
What is created 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? -
correct answer A value proposition
REVENUE MANAGEMENT FINAL EXAM QUESTIONS AND ANSWERS GRADED A+
What is the industry term used to describe the sum of prices paid by a
business's customers? - correct answer Total Revenues
Historically, what concept have hospitality managers chiefly used to
calculate their selling prices? - correct answer Costs
What is an algebraic equivalent of the formula: Sales = Costs + Profit? -
correct answer Profit = Sales - Costs
What is the name for the net value achieved by both parties in a
business transaction? - correct answer Profit
What element is not present in a barter economy? - correct answer Money
,REVENUE MANAGEMENT FINAL EXAM
What is the formula used to calculate an owner's ROI? - correct answer
Owner's Investment Return / Owner's Original Investment = Owner's
Return on Investment
Sandy has 100 hotel 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? - correct answer Constrained Supply
Which industry was the first to use Yield Management principles? -
correct answer Airline
What is the industry term used to describe the selling of rooms which
are not actually available for sale? - correct answer Overbooking
What is the formula used to calculate Average Daily Rate? - correct answer
Total Room's Revenue / Total Rooms Sold = Average Daily Rate
Tashia's hotel sold 175 rooms last night at an ADR of $200.00. Her hotel
has 250 rooms. What was Tashia's occupancy % last night? - correct answer
70%
Tashia's hotel sold 175 rooms last night at an ADR of $200.00. Her hotel
has 250 rooms. What was Tashia's RevPAR last night? - correct answer
$140.00
,REVENUE MANAGEMENT FINAL EXAM
What is the industry term for the average revenue generated by each
occupied guestroom during a defined period of time? - correct answer
RevPOR
What is the formula used to calculate GOPPAR? - correct answer (Total
Revenue - Management Controllable Expenses) / Rooms Available to
Sell = GOPPAR
What is the industry term for a customer group which can be readily
identified by one or more common characteristics? - correct answer Market
Segment
What is rack rate? - correct answer The price of rooms when no discounts
of any type are offered
What is:
Total period revenue
(Number of available seats) x (hours of seat availability) - correct answer
The formula for RevPASH
What is the term used to identify a management philosophy that places
customer gain ahead of short-term revenue maximization in revenue
management decision making? - correct answer Customer-centric revenue
management
, REVENUE MANAGEMENT FINAL EXAM
What is the term used to describe the potential customers to whom a
business's marketing activities and messages are directed? - correct answer
The target market
What is the term used to describe efforts undertaken to encourage
travel and tourism to a specific geographic area or attraction? - correct
answer Destination Marketing
What is the name for the value given up by a buyer and a seller in a
business transaction? - correct answer Price
Charging guests for watching a "Pay-Per-View" movie in their hotel
guestroom is an example of what type of pricing? - correct answer Two-
tiered pricing
What is the fundamental assumption upon which the concept of
consumer rationality is based? - correct answer Buyers act in ways that are
of personal benefit to them
What is the revenue management term used to describe the perceived
benefit gained, minus the price paid, in a business transaction? - correct
answer Value
What is created 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? -
correct answer A value proposition
