REVENUE MANAGEMENT QUESTIONS AND
ANSWERS SET A+
✔✔Arbitrage - ✔✔The nearly simultaneous purchase of a product at a low price and
reselling of it at a higher price with the intention of keeping the difference in price.
✔✔Price Fence - ✔✔The specific requirements that describes who is and not eligible for
a special pricing offer
✔✔offering reduced room rates for third parties - ✔✔Distribution channel
✔✔Implement a differential pricing we supply when over sold - ✔✔Cartel - name used
to describe a consortium of independent organizations formed to limit competition by
controlling the production, distribution and pricing of a product or service
✔✔Price perceived by consumers be the normal or standard - ✔✔Reference price
✔✔Corporate level executive - ✔✔To whom would a revenue manager likely report if
consistency across multiple properties was of most importance?
✔✔Vehicle used to best develop revenue management - ✔✔Regular strategy meetings
✔✔Meetings - ✔✔Run once a week involving the GM, DOSM, Senior sales manager,
and front office
✔✔New hotel manager is eliminating room discounts - ✔✔Current Data
✔✔Overstay - ✔✔Staying after the duration of the visit
✔✔Rev par unrealistically high - ✔✔ADR and Occupancy %
, ✔✔Customer centric strategy for revenue managers to seek and to optimize ADR and
Revpar - ✔✔Eliminate Discounts
✔✔Most likely the result of revenue managers decision to raise the rate room during
periods of high demand - ✔✔Rev Par will increase
✔✔Consistent characteristic of desirable room revenue? - ✔✔Increase higher Goppar
✔✔Revenue management decision on high rates low demand - ✔✔The number of
potential guests will decline
✔✔NOT typically used by revenue managers to designate specific room products sold
in a hotel - ✔✔Price
✔✔Attrition and Wash - ✔✔The difference between the purchases a group pledges to
make and purchases it actually makes
✔✔Pick up - ✔✔Proportion of previously reserved rooms that are ultimately occupied
Ultimately occupied/ reserved rooms
✔✔Daily Receipt - ✔✔Agencies are to maintain daily cash receipt records reflecting all
daily receipts by accounting
✔✔Profit - ✔✔The net value achieved by a seller and a buyer in a business transaction
✔✔Over booking - ✔✔To accept reservations for more rooms than a hotel has available
or in inventory.
✔✔yield management - ✔✔A demand-based revenue management strategy, first
initiated by commercial airline companies. It seeks to maximize income via manipulation
of selling prices
✔✔revenue management - ✔✔The individual or team responsible for ensuring that a
company's prices match a customer's willingness to pay
✔✔Rev POR - ✔✔"Revenue per occupied room" the average generated by each
occupied guest room during a specific period of time
✔✔RevPOR Formula - ✔✔Total revenue/ Total occupied room
✔✔ADR - ✔✔Total Room revenue / rooms sold
ANSWERS SET A+
✔✔Arbitrage - ✔✔The nearly simultaneous purchase of a product at a low price and
reselling of it at a higher price with the intention of keeping the difference in price.
✔✔Price Fence - ✔✔The specific requirements that describes who is and not eligible for
a special pricing offer
✔✔offering reduced room rates for third parties - ✔✔Distribution channel
✔✔Implement a differential pricing we supply when over sold - ✔✔Cartel - name used
to describe a consortium of independent organizations formed to limit competition by
controlling the production, distribution and pricing of a product or service
✔✔Price perceived by consumers be the normal or standard - ✔✔Reference price
✔✔Corporate level executive - ✔✔To whom would a revenue manager likely report if
consistency across multiple properties was of most importance?
✔✔Vehicle used to best develop revenue management - ✔✔Regular strategy meetings
✔✔Meetings - ✔✔Run once a week involving the GM, DOSM, Senior sales manager,
and front office
✔✔New hotel manager is eliminating room discounts - ✔✔Current Data
✔✔Overstay - ✔✔Staying after the duration of the visit
✔✔Rev par unrealistically high - ✔✔ADR and Occupancy %
, ✔✔Customer centric strategy for revenue managers to seek and to optimize ADR and
Revpar - ✔✔Eliminate Discounts
✔✔Most likely the result of revenue managers decision to raise the rate room during
periods of high demand - ✔✔Rev Par will increase
✔✔Consistent characteristic of desirable room revenue? - ✔✔Increase higher Goppar
✔✔Revenue management decision on high rates low demand - ✔✔The number of
potential guests will decline
✔✔NOT typically used by revenue managers to designate specific room products sold
in a hotel - ✔✔Price
✔✔Attrition and Wash - ✔✔The difference between the purchases a group pledges to
make and purchases it actually makes
✔✔Pick up - ✔✔Proportion of previously reserved rooms that are ultimately occupied
Ultimately occupied/ reserved rooms
✔✔Daily Receipt - ✔✔Agencies are to maintain daily cash receipt records reflecting all
daily receipts by accounting
✔✔Profit - ✔✔The net value achieved by a seller and a buyer in a business transaction
✔✔Over booking - ✔✔To accept reservations for more rooms than a hotel has available
or in inventory.
✔✔yield management - ✔✔A demand-based revenue management strategy, first
initiated by commercial airline companies. It seeks to maximize income via manipulation
of selling prices
✔✔revenue management - ✔✔The individual or team responsible for ensuring that a
company's prices match a customer's willingness to pay
✔✔Rev POR - ✔✔"Revenue per occupied room" the average generated by each
occupied guest room during a specific period of time
✔✔RevPOR Formula - ✔✔Total revenue/ Total occupied room
✔✔ADR - ✔✔Total Room revenue / rooms sold
