REVENUE MANAGEMENT HOSPITALITY
FINAL EXAM REVIEW QUESTIONS
WITH ANSWERS LATEST UPDATE
ALREADY GRADED A+
A business hotel's promotion targeting local area
residence and designed to offer them significantly
reduced room rates on Sunday nights is an example of
which type of differential pricing strategy? - correct
answer- pricing based on location
A manager compares the revenue results for a 28-day P&L
period to the results of the 28-day P&L report from the
previous 28-day period. What source of information is the
manager using to analyze the revenue portion of the
current P&L statement? - correct answer-
historical performance
A manager's operation had an income before income
taxes of $2,000 in a month. Total expenses were $18,000
in that month. What was the operation's total sales
amount in that month? - correct answer-
$20,000
,A manager's total revenue for an accounting period is
$150,000. Revenue from one of the operation's three
revenue sources is $30,000. What was the sales
percentage of that revenue source? - correct
answer- 20%
According to Alfred Marshall's work, if the price of a
product is lower than the natural, or equilibrium price,
what will happen? - correct answer- The
demand for the product would exceed its supply
According to the most recent Hospitality Sales &
Marketing Association International (HSMAI) survey, to
whom do the largest percentage of hotel revenue
managers report? - correct answer- their
hotel's general manager
Ahmed is the sole waitperson on duty at the Athenian
restaurant during the very slow 2:00 p.m. to 4:00 p.m.
time period. Which of the Four I's of service refers to the
fact that employees such as Ahmed must be scheduled to
,work anytime a service business is open and regardless of
low volume levels? - correct answer- inventory
Alice is the revenue manager at the Granger hotel. A large
volume customer wants a price quote from Alice on 50
rooms per week for the next 52 weeks. Each room would
be rented for two days at a time. How many room nights
will Alice be quoting on? - correct answer-
5200
All except one of the following pricing systems are
marketing-based. Which one is not an example of
marketing-based pricing? - correct answer-
Return on Investment (ROI) pricing
Amanda is the revenue manager of a hotel. When she
opened her e-mail last Friday she found a message from
the Executive Director of the state dental association
asking Amanda for a formal price quote on rooms and
meeting space needed by the association for their annual
conference. What would Amanda call this inquiry? -
correct answer- RFP
, An income statement is also commonly referred to as a(n)
- correct answer- P&L
An operation's income statement shows total expenses of
$45,500 for a specific month. Before tax - correct
answer- $48,750
An operation's year-end income statement shows before
tax profits of $210,000. Revenues for the year were
$1,850,000. What were this operation's expenses for the
year? - correct answer- $1,640,000
Assume an equilibrium price (P1) is in place for a product.
What would the law of supply and demand predict as an
outcome if demand for that product increased? -
correct answer- The new price (P2) would be
higher than the previous price (P1) and supply would
increase
At Rachel's hotel the CPOR is $40.00. Her Net ADR Yield
averages 85% and her franchise fees average 5%. What is
FINAL EXAM REVIEW QUESTIONS
WITH ANSWERS LATEST UPDATE
ALREADY GRADED A+
A business hotel's promotion targeting local area
residence and designed to offer them significantly
reduced room rates on Sunday nights is an example of
which type of differential pricing strategy? - correct
answer- pricing based on location
A manager compares the revenue results for a 28-day P&L
period to the results of the 28-day P&L report from the
previous 28-day period. What source of information is the
manager using to analyze the revenue portion of the
current P&L statement? - correct answer-
historical performance
A manager's operation had an income before income
taxes of $2,000 in a month. Total expenses were $18,000
in that month. What was the operation's total sales
amount in that month? - correct answer-
$20,000
,A manager's total revenue for an accounting period is
$150,000. Revenue from one of the operation's three
revenue sources is $30,000. What was the sales
percentage of that revenue source? - correct
answer- 20%
According to Alfred Marshall's work, if the price of a
product is lower than the natural, or equilibrium price,
what will happen? - correct answer- The
demand for the product would exceed its supply
According to the most recent Hospitality Sales &
Marketing Association International (HSMAI) survey, to
whom do the largest percentage of hotel revenue
managers report? - correct answer- their
hotel's general manager
Ahmed is the sole waitperson on duty at the Athenian
restaurant during the very slow 2:00 p.m. to 4:00 p.m.
time period. Which of the Four I's of service refers to the
fact that employees such as Ahmed must be scheduled to
,work anytime a service business is open and regardless of
low volume levels? - correct answer- inventory
Alice is the revenue manager at the Granger hotel. A large
volume customer wants a price quote from Alice on 50
rooms per week for the next 52 weeks. Each room would
be rented for two days at a time. How many room nights
will Alice be quoting on? - correct answer-
5200
All except one of the following pricing systems are
marketing-based. Which one is not an example of
marketing-based pricing? - correct answer-
Return on Investment (ROI) pricing
Amanda is the revenue manager of a hotel. When she
opened her e-mail last Friday she found a message from
the Executive Director of the state dental association
asking Amanda for a formal price quote on rooms and
meeting space needed by the association for their annual
conference. What would Amanda call this inquiry? -
correct answer- RFP
, An income statement is also commonly referred to as a(n)
- correct answer- P&L
An operation's income statement shows total expenses of
$45,500 for a specific month. Before tax - correct
answer- $48,750
An operation's year-end income statement shows before
tax profits of $210,000. Revenues for the year were
$1,850,000. What were this operation's expenses for the
year? - correct answer- $1,640,000
Assume an equilibrium price (P1) is in place for a product.
What would the law of supply and demand predict as an
outcome if demand for that product increased? -
correct answer- The new price (P2) would be
higher than the previous price (P1) and supply would
increase
At Rachel's hotel the CPOR is $40.00. Her Net ADR Yield
averages 85% and her franchise fees average 5%. What is
