REVENUE MANAGEMENT FINAL EXAM 2024 STUDY QUESTIONS
WITH ANSWERS GUARANTEED PASS | RATED A+
The major traditional market segmentation variables are geographic, demographic,
psychographic, and behavioral traits and price-sensitivity. Which of these considers criteria such
as social class, personality and lifestyle? - Answer>>> Psychographic
What is a potential drawback of competing solely based on offering the lowest price? -
Answer>>> Price-driven guests are loyal to lowest prices, not the hotel offering them; Any
competitor can beat a low price if it wants to; Other ways of generating demand are more
profitable and sustainable ..... All of the Above
Which of the following is NOT a question that any Customer Relationship Management (CRM)
system helps to answer of interest to a revenue manager? - Answer>>> How do I forecast the
best customers?
Restaurant Revenue Management primarily focuses on front-of-house operations. However,
other aspects of running a restaurant are also tied to RRM. These are: - Answer>>> All of the
above
If a 210-seat restaurant is open 360 days a year for 8 hours a day and has total annual revenue of
$6,000,000. Its RevPASH is: - Answer>>> $6,000,000 ÷ 210 * 360 * 8 = $9.9206
$9.92
A process flow diagram: - Answer>>> all of the above
A diner has an average dining duration of 36 minutes at breakfast time. The standard deviation
of dining duration is 5 minutes. Which of these RRM solutions would NOT help decrease the
variation in duration? - Answer>>> issuing a coupon for an late breakfast special
Displacement Analysis can determine the quantifiable benefits of different options. However it
needs to have the right circumstances. When is it appropriated? - Answer>>> When a reliable
forecast indicates that there's more demand than our capacity, it will be a period of high
demand
Displacement analysis is a RM decision making and comparative scenarios tool with four step
process: (1.) ; (2.) Establish the net Food and Beverage
revenue differential; (3.) Determine other revenue; (4.) Summarize. Following the computation
, of the Transients displaced costs and the group reservation revenues, what do we do in step 1.? -
Answer>>> Establish net room revenue differential
Why does Gabor Forgacs (your RM book's author) mentions in regards to displacement analysis
that "the numeric results of the (displacement) analysis should not be the only criteria for the
decision" p.57? - Answer>>> Because rather than a quick tactical interpretation of the numbers,
one should consider other critical (and eventully strategic) information e.g. Existing competitor
key account
A displacement analysis should be conducted: - Answer>>> when accepting a group booking will
mean turning other business away.
Which of the following is a step in the displacement analysis process? - Answer>>> Establish net
room revenue differential
In displacement analysis, if a possible group reservation will bring $3,850 in rooms revenue but,
according to your accurate forecast, you would expect to impact your future availability by
displacing 33 transient demand rooms sold at $100 room/night, would you be inclined to accept
or to deny this group reservation? - Answer>>> Based only on these numbers and taking into
consideration nothing more, I would accept this current group booking request.
Which of the following hotels would be most likely to need and benefit from displacement
analysis? - Answer>>> an urban hotel during its busy season
When might a revenue manager choose without questions to accept a less profitable group
booking over more profitable transient business? - Answer>>> The group is a regular customer
of the hotel or a key account group from your comp set.
Displacement Analysis can determine the quantifiable benefits of different options. However it
needs to have the right circumstances. When is it appropriated? - Answer>>> When a reliable
forecast indicates that there's more demand than our capacity, it will be a period of high
demand
What information is needed to calculate a net room rate? - Answer>>> room rate, variable costs,
and all costs and fees that apply to the booking
WITH ANSWERS GUARANTEED PASS | RATED A+
The major traditional market segmentation variables are geographic, demographic,
psychographic, and behavioral traits and price-sensitivity. Which of these considers criteria such
as social class, personality and lifestyle? - Answer>>> Psychographic
What is a potential drawback of competing solely based on offering the lowest price? -
Answer>>> Price-driven guests are loyal to lowest prices, not the hotel offering them; Any
competitor can beat a low price if it wants to; Other ways of generating demand are more
profitable and sustainable ..... All of the Above
Which of the following is NOT a question that any Customer Relationship Management (CRM)
system helps to answer of interest to a revenue manager? - Answer>>> How do I forecast the
best customers?
Restaurant Revenue Management primarily focuses on front-of-house operations. However,
other aspects of running a restaurant are also tied to RRM. These are: - Answer>>> All of the
above
If a 210-seat restaurant is open 360 days a year for 8 hours a day and has total annual revenue of
$6,000,000. Its RevPASH is: - Answer>>> $6,000,000 ÷ 210 * 360 * 8 = $9.9206
$9.92
A process flow diagram: - Answer>>> all of the above
A diner has an average dining duration of 36 minutes at breakfast time. The standard deviation
of dining duration is 5 minutes. Which of these RRM solutions would NOT help decrease the
variation in duration? - Answer>>> issuing a coupon for an late breakfast special
Displacement Analysis can determine the quantifiable benefits of different options. However it
needs to have the right circumstances. When is it appropriated? - Answer>>> When a reliable
forecast indicates that there's more demand than our capacity, it will be a period of high
demand
Displacement analysis is a RM decision making and comparative scenarios tool with four step
process: (1.) ; (2.) Establish the net Food and Beverage
revenue differential; (3.) Determine other revenue; (4.) Summarize. Following the computation
, of the Transients displaced costs and the group reservation revenues, what do we do in step 1.? -
Answer>>> Establish net room revenue differential
Why does Gabor Forgacs (your RM book's author) mentions in regards to displacement analysis
that "the numeric results of the (displacement) analysis should not be the only criteria for the
decision" p.57? - Answer>>> Because rather than a quick tactical interpretation of the numbers,
one should consider other critical (and eventully strategic) information e.g. Existing competitor
key account
A displacement analysis should be conducted: - Answer>>> when accepting a group booking will
mean turning other business away.
Which of the following is a step in the displacement analysis process? - Answer>>> Establish net
room revenue differential
In displacement analysis, if a possible group reservation will bring $3,850 in rooms revenue but,
according to your accurate forecast, you would expect to impact your future availability by
displacing 33 transient demand rooms sold at $100 room/night, would you be inclined to accept
or to deny this group reservation? - Answer>>> Based only on these numbers and taking into
consideration nothing more, I would accept this current group booking request.
Which of the following hotels would be most likely to need and benefit from displacement
analysis? - Answer>>> an urban hotel during its busy season
When might a revenue manager choose without questions to accept a less profitable group
booking over more profitable transient business? - Answer>>> The group is a regular customer
of the hotel or a key account group from your comp set.
Displacement Analysis can determine the quantifiable benefits of different options. However it
needs to have the right circumstances. When is it appropriated? - Answer>>> When a reliable
forecast indicates that there's more demand than our capacity, it will be a period of high
demand
What information is needed to calculate a net room rate? - Answer>>> room rate, variable costs,
and all costs and fees that apply to the booking
