Hospitality Revenue Management / 174
Quizzes with Certified Ans
Revenue management is the act of directing sources of income within the confines of - Answer: capacity,
supply and demand
GOPPAR takes into account which of the following variables that is not considered in RevPAR? - Answer:
Controllable expenses
Name revenue optimization strategies - Answer: Market segmentation, Duration control , BAR (Best
Available Rate)
The practice of a seller charging different prices to different buyers for the same product, or slightly
different versions of a product, is - Answer: differential pricing
If the standard fee for a round of golf is $75, which source provides the greatest net round yield?
Comfort Suites with a net round fee of $69
Page 1 of 30
,Sheraton with a net round fee of $60
Hilton Garden Inn with a net round fee of $59 - Answer: Comfort Suites
The term for the range between the lowest and highest prices offered in a differential pricing strategy -
Answer: price band
ADR multiplied by occupancy rate is the formula for which Revenue Management measure - Answer:
RevPAR
True/False: It is nearly impossible for your ADR to be higher than your highest single rate sold on any
given night. - Answer: True
When determining whether to take one customer (or group) over another, what is the most important
consideration for a revenue manager? - Answer: The worth of the customer versus the worth of the
displaced business.
Which of the following are illegal practices that a RM may encounter - Answer: Price gouging -
unreasonable price increases
Predatory pricing - selling below cost
Collusion - secret agreements on pricing or offers
True/False: It is the Revenue Manager's responsibility to determine the positioning for the hotel,
restaurant, or property. - Answer: False
If the cost of angus beef your restaurant sells is $2 per pound and it is sold at $10 per pound, the product
cost percentage is - Answer: 20%
$2/$10 (Cost of product sold/product sales)
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, How many table turns can I expect in a two hour timeframe, assuming 1 hour per check, if i have 635
seats among 127 tables? - Answer: 2
Food and Beverage revenue can be analyzed using - Answer: Revenue centers (where the revenue is
generated)
Day parts (when the revenue is generated)
Service styles (how the revenue is generated)
When you receive your STAR report, your ADR for the month was $100 and the competitive set ADR was
$90. What can you tell? - Answer: Your ADR was $10 higher than the average of all of the members of
the competitive set
Which statement is true regarding raw data that is submitted to STR? - Answer: The majority of data is
exported from the hotel company systems
The number of Rooms Available in a total market can change over time due to what four factors? -
Answer: New hotel openings, Hotel closings, Hotel room additions, and Hotel room drops
The definitions for Supply, Demand and Revenue used by STR and others in the lodging industry are
taken from what source? - Answer: Uniform System of Accounts for the Lodging Industry
True/False: It is nearly impossible for your ADR to be higher than your highest single rate sold on any
given night. - Answer: True
When you receive your STAR report your ADR index was 110 and your Occupancy index was 90. What do
you know? - Answer: The RevPAR index will be in the neighborhood of 100
Key Performance Indicators (KPI) for the Competitive Set (for example the average Occupancy) are: -
Answer: Always based upon the aggregated raw data of each member of the competitive set
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Quizzes with Certified Ans
Revenue management is the act of directing sources of income within the confines of - Answer: capacity,
supply and demand
GOPPAR takes into account which of the following variables that is not considered in RevPAR? - Answer:
Controllable expenses
Name revenue optimization strategies - Answer: Market segmentation, Duration control , BAR (Best
Available Rate)
The practice of a seller charging different prices to different buyers for the same product, or slightly
different versions of a product, is - Answer: differential pricing
If the standard fee for a round of golf is $75, which source provides the greatest net round yield?
Comfort Suites with a net round fee of $69
Page 1 of 30
,Sheraton with a net round fee of $60
Hilton Garden Inn with a net round fee of $59 - Answer: Comfort Suites
The term for the range between the lowest and highest prices offered in a differential pricing strategy -
Answer: price band
ADR multiplied by occupancy rate is the formula for which Revenue Management measure - Answer:
RevPAR
True/False: It is nearly impossible for your ADR to be higher than your highest single rate sold on any
given night. - Answer: True
When determining whether to take one customer (or group) over another, what is the most important
consideration for a revenue manager? - Answer: The worth of the customer versus the worth of the
displaced business.
Which of the following are illegal practices that a RM may encounter - Answer: Price gouging -
unreasonable price increases
Predatory pricing - selling below cost
Collusion - secret agreements on pricing or offers
True/False: It is the Revenue Manager's responsibility to determine the positioning for the hotel,
restaurant, or property. - Answer: False
If the cost of angus beef your restaurant sells is $2 per pound and it is sold at $10 per pound, the product
cost percentage is - Answer: 20%
$2/$10 (Cost of product sold/product sales)
Page 2 of 30
, How many table turns can I expect in a two hour timeframe, assuming 1 hour per check, if i have 635
seats among 127 tables? - Answer: 2
Food and Beverage revenue can be analyzed using - Answer: Revenue centers (where the revenue is
generated)
Day parts (when the revenue is generated)
Service styles (how the revenue is generated)
When you receive your STAR report, your ADR for the month was $100 and the competitive set ADR was
$90. What can you tell? - Answer: Your ADR was $10 higher than the average of all of the members of
the competitive set
Which statement is true regarding raw data that is submitted to STR? - Answer: The majority of data is
exported from the hotel company systems
The number of Rooms Available in a total market can change over time due to what four factors? -
Answer: New hotel openings, Hotel closings, Hotel room additions, and Hotel room drops
The definitions for Supply, Demand and Revenue used by STR and others in the lodging industry are
taken from what source? - Answer: Uniform System of Accounts for the Lodging Industry
True/False: It is nearly impossible for your ADR to be higher than your highest single rate sold on any
given night. - Answer: True
When you receive your STAR report your ADR index was 110 and your Occupancy index was 90. What do
you know? - Answer: The RevPAR index will be in the neighborhood of 100
Key Performance Indicators (KPI) for the Competitive Set (for example the average Occupancy) are: -
Answer: Always based upon the aggregated raw data of each member of the competitive set
Page 3 of 30
