Revenue Management Final Exam – Elasticity, Displacement & STAR Reports Q&A

REVENUE MANAGEMENT - FINAL EXAM
QUESTIONS AND ANSWERS WITH
VERIFIED SOLUTIONS 100% CORRECT


A budget is a more realistic reflection of demand in the
market than a forecast - correct answer- False


Again, referring to the hotel in Question 1:
Should I drop my price back to $225? - correct
answer- Yes


Based on my data for my hotel for August 2023, is the
following statement true?


My hotel's RevPAR decreased more than my comp set in
2023. (slide 7 for data) - correct answer- False


Based on my data for my hotel for August 2023, is the
following statement true?

, Neither my hotel nor the comp. set dropped occupancy %
in 2023. (slide 7 for data) - correct answer-
False


Based on my data for my hotel for August 2023, is this
statement true?


My hotel won RevPAR Index only because of ADR. (slide 7
for data) - correct answer- False


Based on the information provided in Question 1 (i.e.,
hotel capacity, transient forecast, and number of group
rooms requested) and Question 2 (the F&B spend that the
group will bring in), what is the minimum rate you should
charge the group per room?
FYI: the average transient rate is $270 and the variable
cost per room is $32. - correct answer- 280.83
(with margin: 1)


Continuing with my data for August 2023 for my hotel: