REVENUE MANAGEMENT CORE MAIN QUESTIONS
AND ANSWERS SET A+
✔✔What is the most likely result of a revenue manager's decision to raise room rates
during periods of moderate to low demand?
Occupancy rates will increase
The number of potential buyers will decline
The number of potential buyers will remain constant
ADR will decline - ✔✔the number of potential buyers will decline
✔✔What is one consistent characteristic of desirable rooms revenue?
It leads to higher CPOR levels
It leads to lower GOPPAR levels
It leads to higher GOPPAR levels
It leads to lower GOPPOR levels - ✔✔it leads to higher GOPPAR levels
✔✔Which of the following is not a hotel intermediary?
Travel agents
3rd Party websites
Front desk agents
Travel wholesalers - ✔✔front desk agents
,✔✔Which travel industry-related business group developed the Global Distribution
System?
The restaurant industry
The hotel industry
The airline industry
The online travel agency industry - ✔✔the airline industry
✔✔What was the original purpose of THISCO?
To develop a single GDS connection for major hotel companies
To determine the order of hotel listings on 3rd Party internet websites
To bypass the GDS and allow the booking of hotel rooms directly with CRSs
To negotiate IDS booking fees - ✔✔to develop a single GDS connection for major hotel
companies
✔✔What is true about the calculations required to calculate the following Net ADR Yield
formula?
Net Room Rate
Standard ADR = Net ADR Yield
Standard ADR (x) Distribution Channel Costs (=) Net Room Rate
Standard ADR (-) Distribution Channel Costs (=) Net Room Rate
Standard ADR (+) Distribution Channel Costs (=) Net Room Rate
Standard ADR (÷) Distribution Channel Costs (=) Net Room Rate - ✔✔standard ADR (-
) distribution channel costs (=) net room rate
✔✔Lani is the revenue manager at the Aloha Inn. In which situation would Lani optimize
the Inn's gross rooms revenues?
Low Standard ADR, low Net ADR Yield
Low Standard ADR, high Net ADR Yield
High Standard ADR, low Net ADR Yield
,High Standard ADR, high Net ADR Yield - ✔✔high standard ADR, high net ADR yield
✔✔What is the industry term for a lower room rate that is offered when a potential
rooms buyer exhibits initial price resistance?
Rack rate
Fade rate
Discount rate
Diminished rate - ✔✔fade rate
✔✔What is true about a future room reservation booked for a guest whose original
reservation was booked through expedia.com and who is presently checking out of the
hotel?
No franchise fees will be paid on the revenue the new reservation will generate
No IDS fees will be paid on the revenue the new reservation will generate
The reservation will have greater than average distribution channel costs
The buyer's room rate must be discounted to optimize RevPAR - ✔✔no IDS fees will be
paid on the revenue the new reservation will generate
✔✔Harold tracks his hotel guest check outs and the number of new reservations made
at check out. Last week a total of 640 guests checked out of his hotel. In that same
period, his front desk staff booked reservations for 32 future rooms nights from this
group of check out guests. What is true at Harold's hotel?
The reservation nights booked per check out for last week was .02
The reservation nights booked per check out for last week was .20
The reservation nights booked per check out for last week was .05
The reservation nights booked per check out for last week was .50 - ✔✔the reservation
nights booked per check out for last week was .05
✔✔For which distribution channel type do hotels typically employ a shopper's service?
Sales made via the GDS
, Sales made via the IDS
Group sales
Sales made via the telephone - ✔✔sales made via the telephone
✔✔Which is most often true about room sales made by a hotel's group sales
department?
ADRs are higher than average and Net ADR Yield is lower than average
ADRs are lower than average and Net ADR Yield is lower than average
ADRs are higher than average and Net ADR Yield is higher than average
ADRs are lower than average and Net ADR Yield is higher than average - ✔✔ADRs
are lower than average and net ADR yield is higher than average
✔✔How are most CVBs in the United States funded?
By a tax imposed by the US Travel and Tourism agency
By a combination of state income taxes and membership dues
By a combination of hotel occupancy taxes and membership dues
By the applicable state-level agency responsible for the state's travel and tourism
promotion - ✔✔by a combination of hotel occupancy taxes and membership dues
✔✔Which statement does not accurately describe a non-electric distribution channel?
Non-electric distribution channel tend to have a higher ADRs
CVB is a non-electric distribution channel
CRS is a non-electric distribution channel
A non-electric distribution channel tends to have lower costs in terms of fees assessed
- ✔✔CRS is a non-electric distribution channel
✔✔Which of the following rooms marketing strategies would contribute to the
commoditization of hotel rooms?
Participation on a web site that lists only a hotel's name and its telephone
number
AND ANSWERS SET A+
✔✔What is the most likely result of a revenue manager's decision to raise room rates
during periods of moderate to low demand?
Occupancy rates will increase
The number of potential buyers will decline
The number of potential buyers will remain constant
ADR will decline - ✔✔the number of potential buyers will decline
✔✔What is one consistent characteristic of desirable rooms revenue?
It leads to higher CPOR levels
It leads to lower GOPPAR levels
It leads to higher GOPPAR levels
It leads to lower GOPPOR levels - ✔✔it leads to higher GOPPAR levels
✔✔Which of the following is not a hotel intermediary?
Travel agents
3rd Party websites
Front desk agents
Travel wholesalers - ✔✔front desk agents
,✔✔Which travel industry-related business group developed the Global Distribution
System?
The restaurant industry
The hotel industry
The airline industry
The online travel agency industry - ✔✔the airline industry
✔✔What was the original purpose of THISCO?
To develop a single GDS connection for major hotel companies
To determine the order of hotel listings on 3rd Party internet websites
To bypass the GDS and allow the booking of hotel rooms directly with CRSs
To negotiate IDS booking fees - ✔✔to develop a single GDS connection for major hotel
companies
✔✔What is true about the calculations required to calculate the following Net ADR Yield
formula?
Net Room Rate
Standard ADR = Net ADR Yield
Standard ADR (x) Distribution Channel Costs (=) Net Room Rate
Standard ADR (-) Distribution Channel Costs (=) Net Room Rate
Standard ADR (+) Distribution Channel Costs (=) Net Room Rate
Standard ADR (÷) Distribution Channel Costs (=) Net Room Rate - ✔✔standard ADR (-
) distribution channel costs (=) net room rate
✔✔Lani is the revenue manager at the Aloha Inn. In which situation would Lani optimize
the Inn's gross rooms revenues?
Low Standard ADR, low Net ADR Yield
Low Standard ADR, high Net ADR Yield
High Standard ADR, low Net ADR Yield
,High Standard ADR, high Net ADR Yield - ✔✔high standard ADR, high net ADR yield
✔✔What is the industry term for a lower room rate that is offered when a potential
rooms buyer exhibits initial price resistance?
Rack rate
Fade rate
Discount rate
Diminished rate - ✔✔fade rate
✔✔What is true about a future room reservation booked for a guest whose original
reservation was booked through expedia.com and who is presently checking out of the
hotel?
No franchise fees will be paid on the revenue the new reservation will generate
No IDS fees will be paid on the revenue the new reservation will generate
The reservation will have greater than average distribution channel costs
The buyer's room rate must be discounted to optimize RevPAR - ✔✔no IDS fees will be
paid on the revenue the new reservation will generate
✔✔Harold tracks his hotel guest check outs and the number of new reservations made
at check out. Last week a total of 640 guests checked out of his hotel. In that same
period, his front desk staff booked reservations for 32 future rooms nights from this
group of check out guests. What is true at Harold's hotel?
The reservation nights booked per check out for last week was .02
The reservation nights booked per check out for last week was .20
The reservation nights booked per check out for last week was .05
The reservation nights booked per check out for last week was .50 - ✔✔the reservation
nights booked per check out for last week was .05
✔✔For which distribution channel type do hotels typically employ a shopper's service?
Sales made via the GDS
, Sales made via the IDS
Group sales
Sales made via the telephone - ✔✔sales made via the telephone
✔✔Which is most often true about room sales made by a hotel's group sales
department?
ADRs are higher than average and Net ADR Yield is lower than average
ADRs are lower than average and Net ADR Yield is lower than average
ADRs are higher than average and Net ADR Yield is higher than average
ADRs are lower than average and Net ADR Yield is higher than average - ✔✔ADRs
are lower than average and net ADR yield is higher than average
✔✔How are most CVBs in the United States funded?
By a tax imposed by the US Travel and Tourism agency
By a combination of state income taxes and membership dues
By a combination of hotel occupancy taxes and membership dues
By the applicable state-level agency responsible for the state's travel and tourism
promotion - ✔✔by a combination of hotel occupancy taxes and membership dues
✔✔Which statement does not accurately describe a non-electric distribution channel?
Non-electric distribution channel tend to have a higher ADRs
CVB is a non-electric distribution channel
CRS is a non-electric distribution channel
A non-electric distribution channel tends to have lower costs in terms of fees assessed
- ✔✔CRS is a non-electric distribution channel
✔✔Which of the following rooms marketing strategies would contribute to the
commoditization of hotel rooms?
Participation on a web site that lists only a hotel's name and its telephone
number
