RM Exam 1 questions well answered
already passed
What is the main reason that travelers today have more clout than ever before? - correct answer
✔✔They have information on virtually everything at their fingertips.
Revenue Management is NOT necessarily about... - correct answer ✔✔Achieving 100 % occupancy and a
perfect science
The Hurdle Rate is...? - correct answer ✔✔The Lowest Rate for a Given Day
T/F A benefit of variable pricing within revenue management is the smoothing of demand - correct
answer ✔✔True
Revenue management is a set of revenue maximization strategies and tactics that... - correct answer
✔✔can be used to improve the profitability of certain businesses.
In January, the 200-room SnowBound Inn ran a skiers special that resulted in them selling 5,735 rooms
during the month. What was the occupancy percentage for the month? - correct answer ✔✔Occupancy
% = Room nights sold in a period / Room nights available in that period
Answer: 5,735 / (200x31) = 5,,200 = 92.5%
When the American Airlines CEO developed yield management, what type of information was crucial to
its success? - correct answer ✔✔forecasting
The goal of revenue management is to MAXIMIZE REVENUE per Available Time-Based Inventory Unit (or
RevPATI). RevPATI formula applied to all industries translates into...? - correct answer ✔✔Capacity
Utilization x Average Revenue per Service Transaction
Which of the following is NOT a criterion needed for an industry to unlock the full potential of revenue
management? - correct answer ✔✔low fixed costs and high variable costs
, To interpret measures of a hotel's performance, managers often compare those measures with: - correct
answer ✔✔industry or sector averages, the budget for the period, and historical figures from
comparable earlier periods at the hotel.
T/F Revenue management is new, as are all of the strategies that are employed to maximize profit. -
correct answer ✔✔False
Revenue Management includes multidisciplinary management techniques applied to several sub-sectors
of the hospitality. Which of the following is NOT one discipline within Revenue Management? - correct
answer ✔✔Logistics Management
Identify which of these is not a positive of using revenue management strategies and tactics: - correct
answer ✔✔Motivate employees
If a 300-room hotel achieves 70 percent occupancy for April at an ADR of $153 per room, what will room
revenue equal? - correct answer ✔✔$963,900
What is the main reason that travelers today have more clout than ever before? - correct answer
✔✔They have information on virtually everything at their fingertips.
Revenue management can be defined as - correct answer ✔✔A set of strategies and techniques used to
sell the right product, to the right customer, at the right time and at the right prices.
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 ✔✔$140.00
Which 100-Room Hotel would you rather manage? - correct answer ✔✔Hotel A: Average Rate=$ 240 ;
Occupancy= 80% You would rather manage the hotel which has higher ADR and higher Occupancy
because that would be the one generating the highest RevPAR and potentially the most profitable.
In January, the 200-room SnowBound Inn ran a skiers special that resulted in them selling 5,735 rooms
during the month. What was the occupancy percentage for the month? - correct answer ✔✔92.5
percent
already passed
What is the main reason that travelers today have more clout than ever before? - correct answer
✔✔They have information on virtually everything at their fingertips.
Revenue Management is NOT necessarily about... - correct answer ✔✔Achieving 100 % occupancy and a
perfect science
The Hurdle Rate is...? - correct answer ✔✔The Lowest Rate for a Given Day
T/F A benefit of variable pricing within revenue management is the smoothing of demand - correct
answer ✔✔True
Revenue management is a set of revenue maximization strategies and tactics that... - correct answer
✔✔can be used to improve the profitability of certain businesses.
In January, the 200-room SnowBound Inn ran a skiers special that resulted in them selling 5,735 rooms
during the month. What was the occupancy percentage for the month? - correct answer ✔✔Occupancy
% = Room nights sold in a period / Room nights available in that period
Answer: 5,735 / (200x31) = 5,,200 = 92.5%
When the American Airlines CEO developed yield management, what type of information was crucial to
its success? - correct answer ✔✔forecasting
The goal of revenue management is to MAXIMIZE REVENUE per Available Time-Based Inventory Unit (or
RevPATI). RevPATI formula applied to all industries translates into...? - correct answer ✔✔Capacity
Utilization x Average Revenue per Service Transaction
Which of the following is NOT a criterion needed for an industry to unlock the full potential of revenue
management? - correct answer ✔✔low fixed costs and high variable costs
, To interpret measures of a hotel's performance, managers often compare those measures with: - correct
answer ✔✔industry or sector averages, the budget for the period, and historical figures from
comparable earlier periods at the hotel.
T/F Revenue management is new, as are all of the strategies that are employed to maximize profit. -
correct answer ✔✔False
Revenue Management includes multidisciplinary management techniques applied to several sub-sectors
of the hospitality. Which of the following is NOT one discipline within Revenue Management? - correct
answer ✔✔Logistics Management
Identify which of these is not a positive of using revenue management strategies and tactics: - correct
answer ✔✔Motivate employees
If a 300-room hotel achieves 70 percent occupancy for April at an ADR of $153 per room, what will room
revenue equal? - correct answer ✔✔$963,900
What is the main reason that travelers today have more clout than ever before? - correct answer
✔✔They have information on virtually everything at their fingertips.
Revenue management can be defined as - correct answer ✔✔A set of strategies and techniques used to
sell the right product, to the right customer, at the right time and at the right prices.
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 ✔✔$140.00
Which 100-Room Hotel would you rather manage? - correct answer ✔✔Hotel A: Average Rate=$ 240 ;
Occupancy= 80% You would rather manage the hotel which has higher ADR and higher Occupancy
because that would be the one generating the highest RevPAR and potentially the most profitable.
In January, the 200-room SnowBound Inn ran a skiers special that resulted in them selling 5,735 rooms
during the month. What was the occupancy percentage for the month? - correct answer ✔✔92.5
percent
