HOSPITALITY REVENUE MANAGEMENT STUDY GUIDE
REAL EXAM QUESTIONS AND CORRECT ANSWERS
GRADED A+ JUST RELEASED 2025.
◉ In the lodging industry what factors would be overinflated to produce an unrealistically high
RevPAR forecast? Answer: ADR and/or occupancy %
◉ What is the most customer-centric strategy for revenue managers to employ if they seek to
optimize ADR and RevPAR in periods of temporarily heightened demand? Answer: eliminate
discounts
◉ What is the most likely result of a revenue manager's decision to reduce rack room rates
during periods of reduced demand? Answer: competitor's rates will also be reduced
◉ What is the most likely result of a revenue manager's decision to raise room rates during
periods of very high demand? Answer: RevPAR will also be increased
◉ What is the most likely result of a revenue manager's decision to raise room rates during
periods of moderate to low demand? Answer: number of potential buyers will decline
◉ What is one consistent characteristic of desirable rooms revenue? Answer: leads to higher
GOPPAR values
◉ For revenue managers working in the lodging system the term "place" in the 4ps of the
Marketing Mix refers to two items. One is the physical location of the hotel. What is the second?
Answer: the property distribution channels
◉ What is the industry term used to describe all of a hotels unique or distinct forms of
guestroom products available for sale? Answer: rooms inventory
◉ What is a rate code? Answer: A property specific description used to identify a particular
room product
◉ Which of the following is not typically used by revenue managers to designate specific room
products sold in their hotels? Answer: price
,◉ What is the lodging term used to describe two independent data management systems that
have been electronically connected? Answer: interface
◉ what would be the effect of an upon-arrival inventory management training program that
resulted in a hotel significantly up selling a large percentage of its arriving guests? Answer: ADR
and RevPar would increase and occupancy % would be unchanged
◉ What are two synonymous lodging industry terms used to identify the difference between
purchases a group pledges to make and the purchases it actually makes? Answer: attrition and
wash
◉ Tanika is the revenue manager at the Holiday House Hotel. Southeast airlines has requested
that Tanika quote them a rate for the use of 20 rooms per night for a period of one year. If
Southeast accepts Tanika's quote for both price and availability, what type of room rate will the
hotel and airline agreed upon? Answer: contract rate
◉ Expedia.com wants Jesse, the revenue manager at the Hilton, to agree to contract terms that
would require Jessie's hotel to apply the agreed upon Expedia rate to any room type (except
suites) available at the time one of Expedia's customers wants to make a reservation. What is
the industry term for Expedia.com's contract request? Answer: last room availability
◉ Francisco is the revenue manager at the 1500 room BayShore hotel. Tonight he forecasts 750
stay-overs and 750 arrivals. Assume he is accurate in forecasting a 6% no-show rate. How many
additional reservations could Angelina accept before she would be required to walk an arriving
guest? Answer: 90
◉ What is true about a revenue manager's rooms demand forecast? Answer: It is based on
customer demand at an established price
◉ In the airline industry, airline companies establish ticket prices. In the lodging industry, who
is responsible for establishing room selling prices for hotels that are part of a lodging company?
Answer: hotel owners or their designees
◉ in the lodging industry, what is a rack rate? Answer: A room's selling price when no discounts
of any type are offered
◉ What is true about discounts offered on the selling price of hotel rooms? Answer: they should
be easily explainable and defensable
, ◉ In which situation would a customer-centric revenue manager likely implement a special
event rate? Answer: During a local festival that would fill all of the area hotels
◉ Hanna is the revenue manger at the Waterford hotel. For a Saturday in the future she has
determined her hotel will accept reservation only for those guests seeking to stay for three or
more days. Which of the following revenue management control (restriction) strategies is she
using? Answer: MLOS
◉ Bob is the revenue manger at the Waterfront hotel. For the third week in December next year
he has determined the hotel will accept reservations for guests seeking to arrive on Dec 21st.
Dec 22nd. or Dec 23rd; but not on Dec 24th or Dec 25th. Which of the following revenue
management control (restriction) strategies is she using? Answer: CTA
◉ Which of the following is not a strategy typically used by revenue managers to optimize
revenue during periods of high demand? Answer: Implement rack rate discounts to maximize
occupancy
◉ To optimize revenues while enhancing property operations, which strategy pair should
revenue managers seek to implement? Answer: Maximization of room codes, minimization of
rate codes
◉ What strategy should be put into action when revenue managers implement special event
rates and expect a sell out? Answer: Enhance guest value by providing product and/or service
enhancements
◉ Which of the following is not a hotel intermediary? Answer: front desk agents
◉ Which travel industry-related business group developed the Global Distribution System?
Answer: airline industry
◉ What was the original purpose of THISCO? Answer: To develop a single GDS connection for
major hotel companies
◉ What is true about the calculations required to calculate the following Net ADR Yield formula?
Net Room Rate
REAL EXAM QUESTIONS AND CORRECT ANSWERS
GRADED A+ JUST RELEASED 2025.
◉ In the lodging industry what factors would be overinflated to produce an unrealistically high
RevPAR forecast? Answer: ADR and/or occupancy %
◉ What is the most customer-centric strategy for revenue managers to employ if they seek to
optimize ADR and RevPAR in periods of temporarily heightened demand? Answer: eliminate
discounts
◉ What is the most likely result of a revenue manager's decision to reduce rack room rates
during periods of reduced demand? Answer: competitor's rates will also be reduced
◉ What is the most likely result of a revenue manager's decision to raise room rates during
periods of very high demand? Answer: RevPAR will also be increased
◉ What is the most likely result of a revenue manager's decision to raise room rates during
periods of moderate to low demand? Answer: number of potential buyers will decline
◉ What is one consistent characteristic of desirable rooms revenue? Answer: leads to higher
GOPPAR values
◉ For revenue managers working in the lodging system the term "place" in the 4ps of the
Marketing Mix refers to two items. One is the physical location of the hotel. What is the second?
Answer: the property distribution channels
◉ What is the industry term used to describe all of a hotels unique or distinct forms of
guestroom products available for sale? Answer: rooms inventory
◉ What is a rate code? Answer: A property specific description used to identify a particular
room product
◉ Which of the following is not typically used by revenue managers to designate specific room
products sold in their hotels? Answer: price
,◉ What is the lodging term used to describe two independent data management systems that
have been electronically connected? Answer: interface
◉ what would be the effect of an upon-arrival inventory management training program that
resulted in a hotel significantly up selling a large percentage of its arriving guests? Answer: ADR
and RevPar would increase and occupancy % would be unchanged
◉ What are two synonymous lodging industry terms used to identify the difference between
purchases a group pledges to make and the purchases it actually makes? Answer: attrition and
wash
◉ Tanika is the revenue manager at the Holiday House Hotel. Southeast airlines has requested
that Tanika quote them a rate for the use of 20 rooms per night for a period of one year. If
Southeast accepts Tanika's quote for both price and availability, what type of room rate will the
hotel and airline agreed upon? Answer: contract rate
◉ Expedia.com wants Jesse, the revenue manager at the Hilton, to agree to contract terms that
would require Jessie's hotel to apply the agreed upon Expedia rate to any room type (except
suites) available at the time one of Expedia's customers wants to make a reservation. What is
the industry term for Expedia.com's contract request? Answer: last room availability
◉ Francisco is the revenue manager at the 1500 room BayShore hotel. Tonight he forecasts 750
stay-overs and 750 arrivals. Assume he is accurate in forecasting a 6% no-show rate. How many
additional reservations could Angelina accept before she would be required to walk an arriving
guest? Answer: 90
◉ What is true about a revenue manager's rooms demand forecast? Answer: It is based on
customer demand at an established price
◉ In the airline industry, airline companies establish ticket prices. In the lodging industry, who
is responsible for establishing room selling prices for hotels that are part of a lodging company?
Answer: hotel owners or their designees
◉ in the lodging industry, what is a rack rate? Answer: A room's selling price when no discounts
of any type are offered
◉ What is true about discounts offered on the selling price of hotel rooms? Answer: they should
be easily explainable and defensable
, ◉ In which situation would a customer-centric revenue manager likely implement a special
event rate? Answer: During a local festival that would fill all of the area hotels
◉ Hanna is the revenue manger at the Waterford hotel. For a Saturday in the future she has
determined her hotel will accept reservation only for those guests seeking to stay for three or
more days. Which of the following revenue management control (restriction) strategies is she
using? Answer: MLOS
◉ Bob is the revenue manger at the Waterfront hotel. For the third week in December next year
he has determined the hotel will accept reservations for guests seeking to arrive on Dec 21st.
Dec 22nd. or Dec 23rd; but not on Dec 24th or Dec 25th. Which of the following revenue
management control (restriction) strategies is she using? Answer: CTA
◉ Which of the following is not a strategy typically used by revenue managers to optimize
revenue during periods of high demand? Answer: Implement rack rate discounts to maximize
occupancy
◉ To optimize revenues while enhancing property operations, which strategy pair should
revenue managers seek to implement? Answer: Maximization of room codes, minimization of
rate codes
◉ What strategy should be put into action when revenue managers implement special event
rates and expect a sell out? Answer: Enhance guest value by providing product and/or service
enhancements
◉ Which of the following is not a hotel intermediary? Answer: front desk agents
◉ Which travel industry-related business group developed the Global Distribution System?
Answer: airline industry
◉ What was the original purpose of THISCO? Answer: To develop a single GDS connection for
major hotel companies
◉ What is true about the calculations required to calculate the following Net ADR Yield formula?
Net Room Rate
