REVENUE MANAGEMENT FINAL EXAM
QUESTIONS WITH CORRECT ANSWERS
Charging guests for watching a PAYPERVIEW movie in their hotel is an example of -
Answer-Two-tiered pricing
What two factors do successful revenue managers employ when they devise and
implement strategic pricing plans - Answer-Data management and insight
What is the relationship between differential pricing and consumer surplus: - Answer-
differential pricing is a strategy used by sellers to minimize consumer surplus.
The name for the price perceived by consumers to be the normal or standard price for a
product or a service - Answer-Reference Price
The name for the net value achieved by both parties in a business transaction - Answer-
Profit
STR - Answer-A company that specializes in helping hospitality managers evaluate their
effectiveness.
The requirement that a buyer present a coupon at the time of purchase is an example of
what differential pricing - Answer-pricing based on customer characteristics.
What special challenges do buyers of hospitality products such as hotel guestrooms or
restaurant meals face - Answer-Difficulty in quality evaluation prior to purchase
What is the fundamental assumption upon which the Law of Supply is based? - Answer-
The higher the demand for a product the more of it will be produced by sellers
100 hotel rooms to sell. Saturday night has enough customers to sell 125 rooms so she
will be refusing 25 requests for rooms` - Answer-Constrained supply
GOPpar - Answer-=Total (rooms + nonRooms) revenue/Total occupied rooms
Donna is a hotel revenue manager preparing next year's rooms forecast. donna knows
that in Nov. of next year a new hotel is opening near her own. As a result, she is
considering reducing her rooms forecast for that month. If she does so, what data type
will she primarily be using to make her decision? - Answer-Future Data
For revenue managers working in the lodging industry the term "Place" in the 4ps of
marketing mix refers to items. One is the physical location of the hotel. What is the
second? - Answer-The property's distribution channel
, A Front Desk Agent is NOT a hotel intermediary. - Answer-TRUE
One consistant characteristic of desirable room revenue is - Answer-It leads to Higher
GOPPAR levels
What strategy should be put into action when revenue managers implement special
events rates/ - Answer-Enhance guest value by providing product and/or service
enhancements.
What would be the result of a revenue manager's successful implementation of
aggressive strategies designed to shift guests’ future bookings from more expensive
distribution channels to lesser expensive channels? - Answer-Increased Net ADR yield,
increased GOPPAR
It is near the end of the month and Tamika is a revenue manager considering the
impact of selling 200 room nights, for use this month, but at a room rate far below her
hotels average room rate. what would be the impact on her hotel's operating statistics if
she makes this sale" - Answer-Increased RevPAR and reduced flow-thru %
Price - Answer-is not typically used by revenue managers to designate specific room
products sold in their hotels.
Last month Carls hotel ran a 55% occupancy. His comp. set had 50,000 room nights
available for sale and sold 25,000 rooms. What was Carl's occupancy index last month?
- Answer-110%
Peggy is the revenue manager at a 1500 room hotel. For next Friday Peggy's PMS
shows 300 check-outs, 900 stayovers, 250 transient arrivals and 200-room group block
that begins a three-day stay on that day. What is Peggy's current rooms available for
sale for next Friday? - Answer-150
Lani is the revenue manager at the Aloha Inn. In which situation would Lani optimize the
Inn's gross rooms revenues? - Answer-High Standard ADR, high Net ADR yield
In the lodging industry what factors would be overinflated to produce an unrealistically
high RevPAR forecast? - Answer-ADR and/or Occupancy %
Hanna is the revenue manager at the Waterford Hotel. For a Saturday in the future she
has determined her hotel will accept reservations only for those guests seeking to stay
for two or more days. She is using what type of revenue management
control(restrictions)strategies? - Answer-MLOS
Last month carl's 500-room hotel had a comp. set that included five additional hotels
offering a total of 2000 rooms. What was Carl's supply share % last month? - Answer-
20%(formula=Available rooms subject hotel/Available rooms comp set + subject hotel
rooms)or 500/(2000 +500)=supply share %
QUESTIONS WITH CORRECT ANSWERS
Charging guests for watching a PAYPERVIEW movie in their hotel is an example of -
Answer-Two-tiered pricing
What two factors do successful revenue managers employ when they devise and
implement strategic pricing plans - Answer-Data management and insight
What is the relationship between differential pricing and consumer surplus: - Answer-
differential pricing is a strategy used by sellers to minimize consumer surplus.
The name for the price perceived by consumers to be the normal or standard price for a
product or a service - Answer-Reference Price
The name for the net value achieved by both parties in a business transaction - Answer-
Profit
STR - Answer-A company that specializes in helping hospitality managers evaluate their
effectiveness.
The requirement that a buyer present a coupon at the time of purchase is an example of
what differential pricing - Answer-pricing based on customer characteristics.
What special challenges do buyers of hospitality products such as hotel guestrooms or
restaurant meals face - Answer-Difficulty in quality evaluation prior to purchase
What is the fundamental assumption upon which the Law of Supply is based? - Answer-
The higher the demand for a product the more of it will be produced by sellers
100 hotel rooms to sell. Saturday night has enough customers to sell 125 rooms so she
will be refusing 25 requests for rooms` - Answer-Constrained supply
GOPpar - Answer-=Total (rooms + nonRooms) revenue/Total occupied rooms
Donna is a hotel revenue manager preparing next year's rooms forecast. donna knows
that in Nov. of next year a new hotel is opening near her own. As a result, she is
considering reducing her rooms forecast for that month. If she does so, what data type
will she primarily be using to make her decision? - Answer-Future Data
For revenue managers working in the lodging industry the term "Place" in the 4ps of
marketing mix refers to items. One is the physical location of the hotel. What is the
second? - Answer-The property's distribution channel
, A Front Desk Agent is NOT a hotel intermediary. - Answer-TRUE
One consistant characteristic of desirable room revenue is - Answer-It leads to Higher
GOPPAR levels
What strategy should be put into action when revenue managers implement special
events rates/ - Answer-Enhance guest value by providing product and/or service
enhancements.
What would be the result of a revenue manager's successful implementation of
aggressive strategies designed to shift guests’ future bookings from more expensive
distribution channels to lesser expensive channels? - Answer-Increased Net ADR yield,
increased GOPPAR
It is near the end of the month and Tamika is a revenue manager considering the
impact of selling 200 room nights, for use this month, but at a room rate far below her
hotels average room rate. what would be the impact on her hotel's operating statistics if
she makes this sale" - Answer-Increased RevPAR and reduced flow-thru %
Price - Answer-is not typically used by revenue managers to designate specific room
products sold in their hotels.
Last month Carls hotel ran a 55% occupancy. His comp. set had 50,000 room nights
available for sale and sold 25,000 rooms. What was Carl's occupancy index last month?
- Answer-110%
Peggy is the revenue manager at a 1500 room hotel. For next Friday Peggy's PMS
shows 300 check-outs, 900 stayovers, 250 transient arrivals and 200-room group block
that begins a three-day stay on that day. What is Peggy's current rooms available for
sale for next Friday? - Answer-150
Lani is the revenue manager at the Aloha Inn. In which situation would Lani optimize the
Inn's gross rooms revenues? - Answer-High Standard ADR, high Net ADR yield
In the lodging industry what factors would be overinflated to produce an unrealistically
high RevPAR forecast? - Answer-ADR and/or Occupancy %
Hanna is the revenue manager at the Waterford Hotel. For a Saturday in the future she
has determined her hotel will accept reservations only for those guests seeking to stay
for two or more days. She is using what type of revenue management
control(restrictions)strategies? - Answer-MLOS
Last month carl's 500-room hotel had a comp. set that included five additional hotels
offering a total of 2000 rooms. What was Carl's supply share % last month? - Answer-
20%(formula=Available rooms subject hotel/Available rooms comp set + subject hotel
rooms)or 500/(2000 +500)=supply share %
