REVENUE MANAGEMENT EXAMS SCRIPT ALL
QUESTIONS AND ANSWERS SET A+
✔✔Strategic pricing - ✔✔the application of data and insight to effectively match prices
charged with buyer's perceptions of value.
✔✔cost based - ✔✔a pricing philosophy that involves summing product (or service)
costs incurred, with a desired profit, to arrive at an item's selling price. ( cost-plus
pricing)
✔✔Cost-based formula - ✔✔Expenses + Desired profit = Selling price
✔✔profit based pricing - ✔✔pricing strategy involves setting prices for your products
that will guarantee you'll make money on each sale.
✔✔value based pricing - ✔✔The practice of establishing prices for a firm's products and
services based primarily on the buyer's perceived value of those products and services
✔✔Value - ✔✔Buyers perception Perceived benefit- price
✔✔inventory- management - ✔✔The process of allocating and modifying the number of
products available for sale at various prices and through various distribution channels
✔✔market management - ✔✔
✔✔Demand Generator - ✔✔Increase in revenue (events)
✔✔Demand drain - ✔✔Circumstances that produces a significant decrease in business.
Example in a hotel catering businesspersons, holidays
✔✔With occupancy given + ADR given. Calculate Rev par - ✔✔ADR * Occupancy %
, ✔✔Future Data - ✔✔Forecast data
✔✔Supply share calculations (Market share) - ✔✔Actual rooms sold/ overall hotel
rooms in the region
- The proportion of the market's rooms controlled by the subject hotel
✔✔Types of Constraint supply - ✔✔Hard and soft constraint
✔✔ What is the name for the net value achieved by both parties in a business
transaction? - ✔✔Profit
✔✔RevPash - ✔✔Total period revenue/ number of available seats * Hours of seat
availability
✔✔According to the most recent Hospitality Sales & Marketing Association
International(HSMAI) survey, to whom do the largest percentage of hotel revenue
managers report? - ✔✔Hotel's General Manager
✔✔Formula to calculate an owner's ROI - ✔✔Owner's Investment return / Owner's
original investment
✔✔Average revenue generate by each occupied guest room during a define period of
time - ✔✔Rev Por
✔✔Rev Par - ✔✔Total revenue/ Total rooms available for sale
✔✔Potential customers that utilize business marketing activities and messages are
direct - ✔✔Target Market
✔✔Fundamental assumption upon which concept of consumer rationality is based -
✔✔Buyers will act in ways that are personal benefit to them
✔✔This is created when a seller communicates to a buyer the description of a product
to be sold and the price at which the product will be sold. - ✔✔A value proposition
✔✔Included with the Place portion of the hotel marketing mix - ✔✔Promotions
✔✔Fundamental assumption which Law of Supply is based? - ✔✔The higher the
demand for product, the more of it will be produced by sellers. Demand for a product the
will be produced by
✔✔Equilibrium price is in place for product. What is the law of supply? - ✔✔new price
will be higher and supply will increase
QUESTIONS AND ANSWERS SET A+
✔✔Strategic pricing - ✔✔the application of data and insight to effectively match prices
charged with buyer's perceptions of value.
✔✔cost based - ✔✔a pricing philosophy that involves summing product (or service)
costs incurred, with a desired profit, to arrive at an item's selling price. ( cost-plus
pricing)
✔✔Cost-based formula - ✔✔Expenses + Desired profit = Selling price
✔✔profit based pricing - ✔✔pricing strategy involves setting prices for your products
that will guarantee you'll make money on each sale.
✔✔value based pricing - ✔✔The practice of establishing prices for a firm's products and
services based primarily on the buyer's perceived value of those products and services
✔✔Value - ✔✔Buyers perception Perceived benefit- price
✔✔inventory- management - ✔✔The process of allocating and modifying the number of
products available for sale at various prices and through various distribution channels
✔✔market management - ✔✔
✔✔Demand Generator - ✔✔Increase in revenue (events)
✔✔Demand drain - ✔✔Circumstances that produces a significant decrease in business.
Example in a hotel catering businesspersons, holidays
✔✔With occupancy given + ADR given. Calculate Rev par - ✔✔ADR * Occupancy %
, ✔✔Future Data - ✔✔Forecast data
✔✔Supply share calculations (Market share) - ✔✔Actual rooms sold/ overall hotel
rooms in the region
- The proportion of the market's rooms controlled by the subject hotel
✔✔Types of Constraint supply - ✔✔Hard and soft constraint
✔✔ What is the name for the net value achieved by both parties in a business
transaction? - ✔✔Profit
✔✔RevPash - ✔✔Total period revenue/ number of available seats * Hours of seat
availability
✔✔According to the most recent Hospitality Sales & Marketing Association
International(HSMAI) survey, to whom do the largest percentage of hotel revenue
managers report? - ✔✔Hotel's General Manager
✔✔Formula to calculate an owner's ROI - ✔✔Owner's Investment return / Owner's
original investment
✔✔Average revenue generate by each occupied guest room during a define period of
time - ✔✔Rev Por
✔✔Rev Par - ✔✔Total revenue/ Total rooms available for sale
✔✔Potential customers that utilize business marketing activities and messages are
direct - ✔✔Target Market
✔✔Fundamental assumption upon which concept of consumer rationality is based -
✔✔Buyers will act in ways that are personal benefit to them
✔✔This is created when a seller communicates to a buyer the description of a product
to be sold and the price at which the product will be sold. - ✔✔A value proposition
✔✔Included with the Place portion of the hotel marketing mix - ✔✔Promotions
✔✔Fundamental assumption which Law of Supply is based? - ✔✔The higher the
demand for product, the more of it will be produced by sellers. Demand for a product the
will be produced by
✔✔Equilibrium price is in place for product. What is the law of supply? - ✔✔new price
will be higher and supply will increase
