Hospitality Revenue
Management final exam review
with correct answers
2025/2026
What is the industry term used to describe the sum of prices paid by a business's customers? -
correct answerstotal revenues
Historically, what concept have hospitality managers chiefly used to calculate their selling
prices? - correct answerscosts
What is an algebraic equivalent of the formula: Sales = Costs + Profit? - correct
answersprofit=sales-costs
What is the name for the net value achieved by both parties in a business transaction? - correct
answersprofit
What element is not present in a barter economy? - correct answersmoney
What is the formula used to calculate an owner's ROI? - correct answersOwner's Investment
Return / Owner's Original Investment = Owner's Return on Investment
,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? - correct
answersconstrained supply
Which industry was the first to use Yield Management principles? - correct answersairline
What is the industry term used to describe the selling of rooms which are not actually available
for sale? - correct answersoverbooking
What is the formula used to calculate Average Daily Rate? - correct answersTotal 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? - correct answers70%
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? - correct answers$140
What is the industry term for the average revenue generated by each occupied guestroom
during a defined period of time? - correct answersRevPOR
What is the formula used to calculate GOPPAR? - correct answers(Total Revenue - Management
Controllable Expenses) / Rooms Available to Sell = GOPPAR
What is the industry term for a customer group which can be readily identified by one or more
common characteristics? - correct answersmarket segment
What is a rack rate? - correct answersThe 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) - correct answersRevPASH 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? - correct
answersCustomer-centric revenue management
What is the term used to describe the potential customers to whom a business's marketing
activities and messages are directed? - correct answerstarget market
What is the term used to describe efforts undertaken to encourage travel and tourism to a
specific geographic area or attraction? - correct answersdestination marketing
What is the name for the value given up by a buyer and a seller in a business transaction? -
correct answersprice
Charging guests for watching a "Pay-Per-View" movie in their hotel guestroom is an example of
what type of pricing? - correct answerstwo-tiered pricing
What is the fundamental assumption upon which the concept of consumer rationality is based?
- correct answersBuyers 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? - correct answersvalue
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? - correct answersvalue proposition
Management final exam review
with correct answers
2025/2026
What is the industry term used to describe the sum of prices paid by a business's customers? -
correct answerstotal revenues
Historically, what concept have hospitality managers chiefly used to calculate their selling
prices? - correct answerscosts
What is an algebraic equivalent of the formula: Sales = Costs + Profit? - correct
answersprofit=sales-costs
What is the name for the net value achieved by both parties in a business transaction? - correct
answersprofit
What element is not present in a barter economy? - correct answersmoney
What is the formula used to calculate an owner's ROI? - correct answersOwner's Investment
Return / Owner's Original Investment = Owner's Return on Investment
,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? - correct
answersconstrained supply
Which industry was the first to use Yield Management principles? - correct answersairline
What is the industry term used to describe the selling of rooms which are not actually available
for sale? - correct answersoverbooking
What is the formula used to calculate Average Daily Rate? - correct answersTotal 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? - correct answers70%
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? - correct answers$140
What is the industry term for the average revenue generated by each occupied guestroom
during a defined period of time? - correct answersRevPOR
What is the formula used to calculate GOPPAR? - correct answers(Total Revenue - Management
Controllable Expenses) / Rooms Available to Sell = GOPPAR
What is the industry term for a customer group which can be readily identified by one or more
common characteristics? - correct answersmarket segment
What is a rack rate? - correct answersThe 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) - correct answersRevPASH 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? - correct
answersCustomer-centric revenue management
What is the term used to describe the potential customers to whom a business's marketing
activities and messages are directed? - correct answerstarget market
What is the term used to describe efforts undertaken to encourage travel and tourism to a
specific geographic area or attraction? - correct answersdestination marketing
What is the name for the value given up by a buyer and a seller in a business transaction? -
correct answersprice
Charging guests for watching a "Pay-Per-View" movie in their hotel guestroom is an example of
what type of pricing? - correct answerstwo-tiered pricing
What is the fundamental assumption upon which the concept of consumer rationality is based?
- correct answersBuyers 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? - correct answersvalue
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? - correct answersvalue proposition
