,HOSPITALITY REVENUE MANAGEMENT
FINAL EXAM REVIEW QUESTIONS AND
ANSWERS 100%!!!
What is the industry term used to describe the sum of prices paid by a business's
customers? - ANSWER total revenues
Historically, what concept have hospitality managers chiefly used to calculate their
selling prices? - ANSWER costs
What is an algebraic equivalent of the formula: Sales = Costs + Profit? - ANSWER
profit=sales-costs
What is the name for the net value achieved by both parties in a business transaction? -
ANSWER profit
Which industry was the first to use Yield Management principles? - ANSWER airline
What is the industry term used to describe the selling of rooms which are not actually
available for sale? - ANSWER overbooking
What is the formula used to calculate Average Daily Rate? - ANSWER Total Room's
Revenue / Total Rooms Sold = Average Daily Rate
Tashia's hotel sold 175 rooms last night at an ADR of $200.00. Her hotel has 250
rooms. What was Tashia's occupancy % last night? - ANSWER 70%
What element is not present in a barter economy? - ANSWER money
Sandy has 100 hotel rooms to sell. This Saturday night has enough customers to sell
125 rooms so she will be refusing 25 requests for rooms. What is this an example of? -
ANSWER constrained supply
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? - ANSWER $140
,What is the industry term for the average revenue generated by each occupied
guestroom during a defined period of time? - ANSWER RevPOR
What is the formula used to calculate an owner's ROI? - ANSWER Owner's Investment
Return / Owner's Original Investment = Owner's Return on Investment
What is the formula used to calculate GOPPAR? - ANSWER (Total Revenue -
Management Controllable Expenses) / Rooms Available to Sell = GOPPAR
What is a rack rate? - ANSWER The price of rooms when no discounts of any type are
offered
What is:
Total period revenue
(Number of available seats) x (hours of seat availability) - ANSWER RevPASH formula
What is the term used to identify a management philosophy that places customer gain
ahead of short-term revenue maximization in revenue management decision making? -
ANSWER Customer-centric revenue management
What is the industry term for a customer group which can be readily identified by one or
more common characteristics? - ANSWER market segment
What is the term used to describe the potential customers to whom a business's
marketing activities and messages are directed? - ANSWER target market
What is the term used to describe efforts undertaken to encourage travel and tourism to
a specific geographic area or attraction? - ANSWER destination marketing
Charging guests for watching a "Pay-Per-View" movie in their hotel guestroom is an
example of what type of pricing? - ANSWER two-tiered pricing
What is the fundamental assumption upon which the concept of consumer rationality is
based? - ANSWER Buyers act in ways that are of personal benefit to them
What is the revenue management term used to describe the perceived benefit gained,
minus the price paid, in a business transaction? - ANSWER value
, What is created when a seller communicates to a buyer a description of a product to be
sold and the price at which that product will be sold? - ANSWER value proposition
Which of the following terms would be included in the Place portion of a hotel's
marketing mix? - ANSWER distribution channels
Penny Larson is travelling to San Francisco for a personal vacation. Which of economist
Milton Friedman's buyer value formulas would apply to her purchase of the hotel rooms
she will need during her trip? - ANSWER spending her own money on herself
What is the name for the value given up by a buyer and a seller in a business
transaction? - ANSWER price
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
According to Alfred Marshall's work, if the price of a product is lower than the natural, or
equilibrium price, what will happen? - ANSWER The demand for the product would
exceed its supply
If a Revenue Manager implements an organization's strategic pricing plan what
personal characteristic of that Revenue Manager will be most important for ensuring the
plan's success? - ANSWER an understanding of an organization's customers
What concept is displayed by the intersecting point on a supply and demand curve? -
ANSWER An estimate of the amount of a product that would be purchased at a known
price and point in time
What must be true if a product producer is to continue creating and selling products? -
ANSWER Revenues must exceed costs
What is the specialized branch of accounting that focuses on recording and analyzing
the expenses incurred by an organization? - ANSWER cost accounting
What is the industry term for the point at which an organization's revenues exactly equal
its costs? - ANSWER break-even point
FINAL EXAM REVIEW QUESTIONS AND
ANSWERS 100%!!!
What is the industry term used to describe the sum of prices paid by a business's
customers? - ANSWER total revenues
Historically, what concept have hospitality managers chiefly used to calculate their
selling prices? - ANSWER costs
What is an algebraic equivalent of the formula: Sales = Costs + Profit? - ANSWER
profit=sales-costs
What is the name for the net value achieved by both parties in a business transaction? -
ANSWER profit
Which industry was the first to use Yield Management principles? - ANSWER airline
What is the industry term used to describe the selling of rooms which are not actually
available for sale? - ANSWER overbooking
What is the formula used to calculate Average Daily Rate? - ANSWER Total Room's
Revenue / Total Rooms Sold = Average Daily Rate
Tashia's hotel sold 175 rooms last night at an ADR of $200.00. Her hotel has 250
rooms. What was Tashia's occupancy % last night? - ANSWER 70%
What element is not present in a barter economy? - ANSWER money
Sandy has 100 hotel rooms to sell. This Saturday night has enough customers to sell
125 rooms so she will be refusing 25 requests for rooms. What is this an example of? -
ANSWER constrained supply
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? - ANSWER $140
,What is the industry term for the average revenue generated by each occupied
guestroom during a defined period of time? - ANSWER RevPOR
What is the formula used to calculate an owner's ROI? - ANSWER Owner's Investment
Return / Owner's Original Investment = Owner's Return on Investment
What is the formula used to calculate GOPPAR? - ANSWER (Total Revenue -
Management Controllable Expenses) / Rooms Available to Sell = GOPPAR
What is a rack rate? - ANSWER The price of rooms when no discounts of any type are
offered
What is:
Total period revenue
(Number of available seats) x (hours of seat availability) - ANSWER RevPASH formula
What is the term used to identify a management philosophy that places customer gain
ahead of short-term revenue maximization in revenue management decision making? -
ANSWER Customer-centric revenue management
What is the industry term for a customer group which can be readily identified by one or
more common characteristics? - ANSWER market segment
What is the term used to describe the potential customers to whom a business's
marketing activities and messages are directed? - ANSWER target market
What is the term used to describe efforts undertaken to encourage travel and tourism to
a specific geographic area or attraction? - ANSWER destination marketing
Charging guests for watching a "Pay-Per-View" movie in their hotel guestroom is an
example of what type of pricing? - ANSWER two-tiered pricing
What is the fundamental assumption upon which the concept of consumer rationality is
based? - ANSWER Buyers act in ways that are of personal benefit to them
What is the revenue management term used to describe the perceived benefit gained,
minus the price paid, in a business transaction? - ANSWER value
, What is created when a seller communicates to a buyer a description of a product to be
sold and the price at which that product will be sold? - ANSWER value proposition
Which of the following terms would be included in the Place portion of a hotel's
marketing mix? - ANSWER distribution channels
Penny Larson is travelling to San Francisco for a personal vacation. Which of economist
Milton Friedman's buyer value formulas would apply to her purchase of the hotel rooms
she will need during her trip? - ANSWER spending her own money on herself
What is the name for the value given up by a buyer and a seller in a business
transaction? - ANSWER price
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
According to Alfred Marshall's work, if the price of a product is lower than the natural, or
equilibrium price, what will happen? - ANSWER The demand for the product would
exceed its supply
If a Revenue Manager implements an organization's strategic pricing plan what
personal characteristic of that Revenue Manager will be most important for ensuring the
plan's success? - ANSWER an understanding of an organization's customers
What concept is displayed by the intersecting point on a supply and demand curve? -
ANSWER An estimate of the amount of a product that would be purchased at a known
price and point in time
What must be true if a product producer is to continue creating and selling products? -
ANSWER Revenues must exceed costs
What is the specialized branch of accounting that focuses on recording and analyzing
the expenses incurred by an organization? - ANSWER cost accounting
What is the industry term for the point at which an organization's revenues exactly equal
its costs? - ANSWER break-even point
