REVENUE MANAGEMENT FINAL EXAM
QUESTIONS AND VERIFIED ANSWER;
100% CORRECT; 2026- 2027 UPDATE
3-step process for measuring revenue change -
correct answer- Step 1. Determine sales for this
accounting period
Step 2. Calculate THIS accounting period's sales minus
LAST accounting period's sales
Step 3. Divide the difference in Step 2 by last accounting
period's sales to determine the percentage variance
A "booking report" or "pace report" tells the revenue
manager - correct answer- the rate at which
future demand is being captured
A company that focuses solely on generation of its profits
is likely to go out of business in today's marketplace. This
is because successful organizations know that both the
company and the ___________ must profit in order to
maintain a successful and profitable business -
correct answer- customer
,Accounting - correct answer- also known as the
controller's office in a hotel, owns the REVENUE-RELATED
DATA
Accurate forecasts are important for: - correct
answer- - Scheduling workers
- Purchasing supplies
- Managing cash flows
Add a service to a product - correct answer- in
some cases, the service may be permitting the customer
to save time by avoiding a wait
Add features - correct answer- this may include
increasing quality, quantity, or the service levels provided
to customers
As a foodservice RM, there are a variety of ways you can
assess the sources of your revenues: Revenue Centers,
,Service Styles, AND which of the following: - correct
answer- Day parts
As an RM your vision must be - correct answer-
- identifiable
- communicable
- inspiring
- rewarding
Attrition - correct answer- the difference
between the purchases a group pledges to make and the
purchases it actually makes. Also referred to as wash,
wash down, or slippage.
Average Occupancy/Strong ADR Index - correct
answer- Indicates that guests perceive strong value
at current rate structure. Increase discounted offerings
during slack demand periods to fill more rooms.
Average Occupancy/Weak ADR index - correct
answer- Indicates that guests perceive value but
, only at reduced rates; carefully evaluate physical facility
and service levels prior to seeking increased rates.
Average room rate index - correct answer- A
measure of a property's pricing performance in relation to
its competitive set
Bottom-up (selling) - correct answer- A selling
approach that seeks to sell an entity's lowest priced items
prior to the sale of its higher priced items.
Brand partner - correct answer- a business
entity utilized by a franchisor to achieve the goals of one
or more of that franchisor's brands
Break-Even Point - correct answer- The point
at which a firm's revenues exactly equal to its expenses
Bundling - correct answer- Combining
individual products and/or services into groupings that
are sold for a single price, usually lower than the sum of
QUESTIONS AND VERIFIED ANSWER;
100% CORRECT; 2026- 2027 UPDATE
3-step process for measuring revenue change -
correct answer- Step 1. Determine sales for this
accounting period
Step 2. Calculate THIS accounting period's sales minus
LAST accounting period's sales
Step 3. Divide the difference in Step 2 by last accounting
period's sales to determine the percentage variance
A "booking report" or "pace report" tells the revenue
manager - correct answer- the rate at which
future demand is being captured
A company that focuses solely on generation of its profits
is likely to go out of business in today's marketplace. This
is because successful organizations know that both the
company and the ___________ must profit in order to
maintain a successful and profitable business -
correct answer- customer
,Accounting - correct answer- also known as the
controller's office in a hotel, owns the REVENUE-RELATED
DATA
Accurate forecasts are important for: - correct
answer- - Scheduling workers
- Purchasing supplies
- Managing cash flows
Add a service to a product - correct answer- in
some cases, the service may be permitting the customer
to save time by avoiding a wait
Add features - correct answer- this may include
increasing quality, quantity, or the service levels provided
to customers
As a foodservice RM, there are a variety of ways you can
assess the sources of your revenues: Revenue Centers,
,Service Styles, AND which of the following: - correct
answer- Day parts
As an RM your vision must be - correct answer-
- identifiable
- communicable
- inspiring
- rewarding
Attrition - correct answer- the difference
between the purchases a group pledges to make and the
purchases it actually makes. Also referred to as wash,
wash down, or slippage.
Average Occupancy/Strong ADR Index - correct
answer- Indicates that guests perceive strong value
at current rate structure. Increase discounted offerings
during slack demand periods to fill more rooms.
Average Occupancy/Weak ADR index - correct
answer- Indicates that guests perceive value but
, only at reduced rates; carefully evaluate physical facility
and service levels prior to seeking increased rates.
Average room rate index - correct answer- A
measure of a property's pricing performance in relation to
its competitive set
Bottom-up (selling) - correct answer- A selling
approach that seeks to sell an entity's lowest priced items
prior to the sale of its higher priced items.
Brand partner - correct answer- a business
entity utilized by a franchisor to achieve the goals of one
or more of that franchisor's brands
Break-Even Point - correct answer- The point
at which a firm's revenues exactly equal to its expenses
Bundling - correct answer- Combining
individual products and/or services into groupings that
are sold for a single price, usually lower than the sum of
