REVENUE MANAGEMENT FINAL EXAM
GUIDE QUESTIONS AND ANSWERS
in displacement analysis, if a possible group reservation will bring $3,850 in rooms
revenue but according to your forecast you expect to impact your future avail. by
displacing 33 transient demand rooms at $100/night, would you be inclined to accept or
deny this reservation? - Answer-based only on these numbers i would accept this
reservation
which is a step in the displacement analysis process? - Answer-establish net room
revenue differential
an individual traveling, dining, attending performance, or staying alone is referred to as -
Answer-transient
In a property forecasted high period of demand period, if the RM displacement analysis
shows that by accepting a certain group the overall net revenue gain is positive (more
revenues than the costs of displacement transient demand in the future), increasing
profitability, than its Sales or Reservations departments should be inclined to: - Answer-
accept the group reservation
why does Forgacs mention in regards to displacement, that the numeric results of the
analysis should not be the only criteria for the decision? - Answer-because rather than a
quick tactical interpretation of the numbers, one should consider other critical
information like existing competitor key account
which is not a question that any customer relationship management system helps to
answer in the interest to a revenue manager? - Answer-how do i forecast the best
customers
what is the elasticity of a hotel that sees a 10 % increase in occupancy when it lowers
its room rate from $100 to $80? - Answer-.05 (10/20)
The ratio that expresses how a change in the price of a product or service affects unit
demand for that product or service is called? - Answer-elasticity = percent change in
demand / % change in room rate
The Horntooth Ranch Hotel is run by a management company that operates several
mid-range properties under many different corporate flags. What type of management
Contract Company is it? - Answer-second tier
Hotels location as a competitive advantage can change over time. What is NOT an
appropriated example? - Answer-hotels in the heart of Paris
GUIDE QUESTIONS AND ANSWERS
in displacement analysis, if a possible group reservation will bring $3,850 in rooms
revenue but according to your forecast you expect to impact your future avail. by
displacing 33 transient demand rooms at $100/night, would you be inclined to accept or
deny this reservation? - Answer-based only on these numbers i would accept this
reservation
which is a step in the displacement analysis process? - Answer-establish net room
revenue differential
an individual traveling, dining, attending performance, or staying alone is referred to as -
Answer-transient
In a property forecasted high period of demand period, if the RM displacement analysis
shows that by accepting a certain group the overall net revenue gain is positive (more
revenues than the costs of displacement transient demand in the future), increasing
profitability, than its Sales or Reservations departments should be inclined to: - Answer-
accept the group reservation
why does Forgacs mention in regards to displacement, that the numeric results of the
analysis should not be the only criteria for the decision? - Answer-because rather than a
quick tactical interpretation of the numbers, one should consider other critical
information like existing competitor key account
which is not a question that any customer relationship management system helps to
answer in the interest to a revenue manager? - Answer-how do i forecast the best
customers
what is the elasticity of a hotel that sees a 10 % increase in occupancy when it lowers
its room rate from $100 to $80? - Answer-.05 (10/20)
The ratio that expresses how a change in the price of a product or service affects unit
demand for that product or service is called? - Answer-elasticity = percent change in
demand / % change in room rate
The Horntooth Ranch Hotel is run by a management company that operates several
mid-range properties under many different corporate flags. What type of management
Contract Company is it? - Answer-second tier
Hotels location as a competitive advantage can change over time. What is NOT an
appropriated example? - Answer-hotels in the heart of Paris
