HOSPITALITY REVENUE MANAGEMENT FINAL EXAM
QUESTIONS WITH ANSWERS
Most of the entities below are classified as "Chains". Which one is a "Parent Company" c
nm nm nm nm nm nm nm nm nm nm nm nm nm nm nm
onsisting of multiple chains? - ansAccor Hotels nm nm nm nm nm nm
Which is a true statement about Parent Companies? -
nm nm nm nm nm nm nm nm
ansParent Companies and the related chains have changed over time
nm nm nm nm nm nm nm nm nm nm
What are the three different operation types? -
nm nm nm nm nm nm nm
ansChain Management, Franchise, Independent
nm nm nm nm
Which is a true statement about Management Companies? -
nm nm nm nm nm nm nm nm
ansManagement companies have contracts where they receive payment for their servic
nm nm nm nm nm nm nm nm nm nm nm
es and/or some portion of profits
nm nm nm nm nm
Which is a true statement regarding geographic categorization? -
nm nm nm nm nm nm nm nm
ansSTR uses the UNWTO definitions when it comes to recognizing countries
nm nm nm nm nm nm nm nm nm nm nm
Which two geographic categories are the most important for a hotel GM? -
nm nm nm nm nm nm nm nm nm nm nm nm
ansMarket and Submarket
nm nm nm
Markets and Submarkets are created based on what two determining factors? -
nm nm nm nm nm nm nm nm nm nm nm
ansNumber of hotels and participation
nm nm nm nm nm
Which is a true statement regarding Submarkets -
nm nm nm nm nm nm nm
ansA submarket may represent a small city in a rural market
nm nm nm nm nm nm nm nm nm nm nm
How many Scale categories are there compared to Class categories? -
nm nm nm nm nm nm nm nm nm nm
ans7 Scale categories and 6 Class categories
nm nm nm nm nm nm nm
Which one of the following is an accurate statement regarding Scale and Class groups an
nm nm nm nm nm nm nm nm nm nm nm nm nm nm
d a single chain? -
nm nm nm nm
ansA Ritz Carlton hotel will always be in the same Scale and Class groups in every count
nm nm nm nm nm nm nm nm nm nm nm nm nm nm nm nm nm
ry throughout the world
nm nm nm
The four key considerations when creating a Competitive Set are? -
nm nm nm nm nm nm nm nm nm nm
ansParticipation, Proximity, Pricing and Product
nm nm nm nm nm
,The definitions for Supply, Demand and Revenue used by STR and others in the lodging i
nm nm nm nm nm nm nm nm nm nm nm nm nm nm nm
ndustry are taken from what source? -nm nm nm nm nm nm
ansUniform System of Accounts for the Lodging Industry
nm nm nm nm nm nm nm nm
Which is true regarding the type of performance data (Supply, Demand, Revenue) that S
nm nm nm nm nm nm nm nm nm nm nm nm nm
TR receives? - ansDaily and monthly only
nm nm nm nm nm nm
You receive your monthly STAR and find that it includes weekday and weekend performa
nm nm nm nm nm nm nm nm nm nm nm nm nm
nce, what days are included in "weekday" in most parts of the world? -
nm nm nm nm nm nm nm nm nm nm nm nm nm
ansSunday thru Thursday
nm nm nm
In which of the following situations will occupancy increase? -
nm nm nm nm nm nm nm nm nm
ansSupply decreases 10% and demand decreases 5%
nm nm nm nm nm nm nm
Which statement is true regarding RevPAR? -
nm nm nm nm nm nm
ansIt can be thought of as a combination of Occupancy and ADR
nm nm nm nm nm nm nm nm nm nm nm nm
Use the spreadsheet below to answer Question 17. The March YTD Occupancy (E5) is _
nm nm nm nm nm nm nm nm nm nm nm nm nm nm
______. - ans63.2% nm nm
Use the spreadsheet below to answer Question 18. The Average Daily Rate percent cha
nm nm nm nm nm nm nm nm nm nm nm nm nm
nge for April (G5) is ______. - ans1.5%
nm nm nm nm nm nm nm
Which one of the following statements is accurate regarding "Sufficiency" as it related to
nm nm nm nm nm nm nm nm nm nm nm nm nm nm
competitive set data? - nm nm nm
ansThe sufficiency rules are in place to protect the confidentiality of the data
nm nm nm nm nm nm nm nm nm nm nm nm nm
Key Performance Indicators (KPI) for the Competitive Set (for example the average Occu
nm nm nm nm nm nm nm nm nm nm nm nm
pancy) are: - nm nm
ansAlways based upon the aggregated raw data of each member of the competitive set
nm nm nm nm nm nm nm nm nm nm nm nm nm nm
When you receive your STAR report, your ADR for the month was $100 and the competiti
nm nm nm nm nm nm nm nm nm nm nm nm nm nm nm
ve set ADR was $90. What can you tell? -
nm nm nm nm nm nm nm nm nm
ansYour ADR was $10 higher than the average of all of the members of the competitive s
nm nm nm nm nm nm nm nm nm nm nm nm nm nm nm nm nm
et
Use the spreadsheet below to answer the following two Questions, 22 and 23, regarding t
nm nm nm nm nm nm nm nm nm nm nm nm nm nm
he methodology used to calculate KPIs for a competitive set. The competitive set Occupa
nm nm nm nm nm nm nm nm nm nm nm nm nm
ncy (E6) for July is _____. - ans72.6%
nm nm nm nm nm nm nm
The competitive set RevPAR (G6) for July is _____. - ans$119.89
nm nm nm nm nm nm nm nm nm nm
When you receive your STAR report your ADR index was 110 and your Occupancy index
nm nm nm nm nm nm nm nm nm nm nm nm nm nm n
was 90. What do you know? - ansThe RevPAR index will be in the neighborhood of 100
m nm nm nm nm nm nm nm nm nm nm nm nm nm nm nm nm
, When you receive your STAR report, you see that your RevPAR index was 90 this year c
nm nm nm nm nm nm nm nm nm nm nm nm nm nm nm nm
ompared to 80 last year. What do you know for sure? -
nm nm nm nm nm nm nm nm nm nm nm
ansYour hotel will have a positive RevPAR Index Percent Change
nm nm nm nm nm nm nm nm nm nm
Use the spreadsheet below to answer Questions 26 and 27 regarding the methodology u
nm nm nm nm nm nm nm nm nm nm nm nm nm
sed to calculate Index. The occupancy Index for November (H3) is _____. - ans119.2
nm nm nm nm nm nm nm nm nm nm nm nm nm
The RevPAR Index for November (J3) is ______. - ans117.4
nm nm nm nm nm nm nm nm nm
Use the spreadsheet below to answer Questions 28 and 29 regarding the methodology u
nm nm nm nm nm nm nm nm nm nm nm nm nm
sed to calculate Index percent change. The ADR Index percent change for November (I4)
nm nm nm nm nm nm nm nm nm nm nm nm nm
is _____. - ans1.7%
nm nm nm nm
The RevPAR Index percent change for November (J4) is ______. - ans16%
nm nm nm nm nm nm nm nm nm nm nm
What is the minimum number of reporting hotels for an industry segment to be considere
nm nm nm nm nm nm nm nm nm nm nm nm nm nm
d "sufficient"? - ansFour
nm nm nm
Modeled data is used in which country? - ansUnited States
nm nm nm nm nm nm nm nm nm
Which one of the following is a non-geographic category shown on the STAR report? -
nm nm nm nm nm nm nm nm nm nm nm nm nm nm
ansClass
nm
Which statement is true regarding the industry data that a hotel may see on a STAR repor
nm nm nm nm nm nm nm nm nm nm nm nm nm nm nm nm
t? - nm
ansNorth America hotels will see industry data for Market, Market Class, Submarket and
nm nm nm nm nm nm nm nm nm nm nm nm nm nm
Submarket Scale nm
Using the information from an excerpt of an "At a Glance" page from a Monthly STAR Re
nm nm nm nm nm nm nm nm nm nm nm nm nm nm nm nm
port answer the following Question 34. Which one of the following is an accurate stateme
nm nm nm nm nm nm nm nm nm nm nm nm nm nm
nt regarding the performance at your hotel? -
nm nm nm nm nm nm nm
ansYour Occupancy Index (MPI) has surpassed 100 in each of the four time periods sho
nm nm nm nm nm nm nm nm nm nm nm nm nm nm nm
wn
The Competitive Set Report in a Monthly STAR Report shows what information? -
nm nm nm nm nm nm nm nm nm nm nm nm
ans18 months of monthly data and 3 years of YTD, Running 3-month, and Running 12-
nm nm nm nm nm nm nm nm nm nm nm nm nm nm nm
month data nm
Using the information from an excerpt of a sample "Competitive Set Report" page from a
nm nm nm nm nm nm nm nm nm nm nm nm nm nm nm
Monthly STAR Report, answer the following Question 36. Which of the following stateme
nm nm nm nm nm nm nm nm nm nm nm nm
nts best describes performance of your hotel over the last six months? -
nm nm nm nm nm nm nm nm nm nm nm nm
ansYour hotel's Occupancy Rank has consistently been 2 of 5
nm nm nm nm nm nm nm nm nm nm
Which is an accurate statement regarding the Day of Week and Weekday/
nm nm nm nm nm nm nm nm nm nm nm
Weekend tab in the Monthly STAR report? - ansAll of the above
nm nm nm nm nm nm nm nm nm nm nm
QUESTIONS WITH ANSWERS
Most of the entities below are classified as "Chains". Which one is a "Parent Company" c
nm nm nm nm nm nm nm nm nm nm nm nm nm nm nm
onsisting of multiple chains? - ansAccor Hotels nm nm nm nm nm nm
Which is a true statement about Parent Companies? -
nm nm nm nm nm nm nm nm
ansParent Companies and the related chains have changed over time
nm nm nm nm nm nm nm nm nm nm
What are the three different operation types? -
nm nm nm nm nm nm nm
ansChain Management, Franchise, Independent
nm nm nm nm
Which is a true statement about Management Companies? -
nm nm nm nm nm nm nm nm
ansManagement companies have contracts where they receive payment for their servic
nm nm nm nm nm nm nm nm nm nm nm
es and/or some portion of profits
nm nm nm nm nm
Which is a true statement regarding geographic categorization? -
nm nm nm nm nm nm nm nm
ansSTR uses the UNWTO definitions when it comes to recognizing countries
nm nm nm nm nm nm nm nm nm nm nm
Which two geographic categories are the most important for a hotel GM? -
nm nm nm nm nm nm nm nm nm nm nm nm
ansMarket and Submarket
nm nm nm
Markets and Submarkets are created based on what two determining factors? -
nm nm nm nm nm nm nm nm nm nm nm
ansNumber of hotels and participation
nm nm nm nm nm
Which is a true statement regarding Submarkets -
nm nm nm nm nm nm nm
ansA submarket may represent a small city in a rural market
nm nm nm nm nm nm nm nm nm nm nm
How many Scale categories are there compared to Class categories? -
nm nm nm nm nm nm nm nm nm nm
ans7 Scale categories and 6 Class categories
nm nm nm nm nm nm nm
Which one of the following is an accurate statement regarding Scale and Class groups an
nm nm nm nm nm nm nm nm nm nm nm nm nm nm
d a single chain? -
nm nm nm nm
ansA Ritz Carlton hotel will always be in the same Scale and Class groups in every count
nm nm nm nm nm nm nm nm nm nm nm nm nm nm nm nm nm
ry throughout the world
nm nm nm
The four key considerations when creating a Competitive Set are? -
nm nm nm nm nm nm nm nm nm nm
ansParticipation, Proximity, Pricing and Product
nm nm nm nm nm
,The definitions for Supply, Demand and Revenue used by STR and others in the lodging i
nm nm nm nm nm nm nm nm nm nm nm nm nm nm nm
ndustry are taken from what source? -nm nm nm nm nm nm
ansUniform System of Accounts for the Lodging Industry
nm nm nm nm nm nm nm nm
Which is true regarding the type of performance data (Supply, Demand, Revenue) that S
nm nm nm nm nm nm nm nm nm nm nm nm nm
TR receives? - ansDaily and monthly only
nm nm nm nm nm nm
You receive your monthly STAR and find that it includes weekday and weekend performa
nm nm nm nm nm nm nm nm nm nm nm nm nm
nce, what days are included in "weekday" in most parts of the world? -
nm nm nm nm nm nm nm nm nm nm nm nm nm
ansSunday thru Thursday
nm nm nm
In which of the following situations will occupancy increase? -
nm nm nm nm nm nm nm nm nm
ansSupply decreases 10% and demand decreases 5%
nm nm nm nm nm nm nm
Which statement is true regarding RevPAR? -
nm nm nm nm nm nm
ansIt can be thought of as a combination of Occupancy and ADR
nm nm nm nm nm nm nm nm nm nm nm nm
Use the spreadsheet below to answer Question 17. The March YTD Occupancy (E5) is _
nm nm nm nm nm nm nm nm nm nm nm nm nm nm
______. - ans63.2% nm nm
Use the spreadsheet below to answer Question 18. The Average Daily Rate percent cha
nm nm nm nm nm nm nm nm nm nm nm nm nm
nge for April (G5) is ______. - ans1.5%
nm nm nm nm nm nm nm
Which one of the following statements is accurate regarding "Sufficiency" as it related to
nm nm nm nm nm nm nm nm nm nm nm nm nm nm
competitive set data? - nm nm nm
ansThe sufficiency rules are in place to protect the confidentiality of the data
nm nm nm nm nm nm nm nm nm nm nm nm nm
Key Performance Indicators (KPI) for the Competitive Set (for example the average Occu
nm nm nm nm nm nm nm nm nm nm nm nm
pancy) are: - nm nm
ansAlways based upon the aggregated raw data of each member of the competitive set
nm nm nm nm nm nm nm nm nm nm nm nm nm nm
When you receive your STAR report, your ADR for the month was $100 and the competiti
nm nm nm nm nm nm nm nm nm nm nm nm nm nm nm
ve set ADR was $90. What can you tell? -
nm nm nm nm nm nm nm nm nm
ansYour ADR was $10 higher than the average of all of the members of the competitive s
nm nm nm nm nm nm nm nm nm nm nm nm nm nm nm nm nm
et
Use the spreadsheet below to answer the following two Questions, 22 and 23, regarding t
nm nm nm nm nm nm nm nm nm nm nm nm nm nm
he methodology used to calculate KPIs for a competitive set. The competitive set Occupa
nm nm nm nm nm nm nm nm nm nm nm nm nm
ncy (E6) for July is _____. - ans72.6%
nm nm nm nm nm nm nm
The competitive set RevPAR (G6) for July is _____. - ans$119.89
nm nm nm nm nm nm nm nm nm nm
When you receive your STAR report your ADR index was 110 and your Occupancy index
nm nm nm nm nm nm nm nm nm nm nm nm nm nm n
was 90. What do you know? - ansThe RevPAR index will be in the neighborhood of 100
m nm nm nm nm nm nm nm nm nm nm nm nm nm nm nm nm
, When you receive your STAR report, you see that your RevPAR index was 90 this year c
nm nm nm nm nm nm nm nm nm nm nm nm nm nm nm nm
ompared to 80 last year. What do you know for sure? -
nm nm nm nm nm nm nm nm nm nm nm
ansYour hotel will have a positive RevPAR Index Percent Change
nm nm nm nm nm nm nm nm nm nm
Use the spreadsheet below to answer Questions 26 and 27 regarding the methodology u
nm nm nm nm nm nm nm nm nm nm nm nm nm
sed to calculate Index. The occupancy Index for November (H3) is _____. - ans119.2
nm nm nm nm nm nm nm nm nm nm nm nm nm
The RevPAR Index for November (J3) is ______. - ans117.4
nm nm nm nm nm nm nm nm nm
Use the spreadsheet below to answer Questions 28 and 29 regarding the methodology u
nm nm nm nm nm nm nm nm nm nm nm nm nm
sed to calculate Index percent change. The ADR Index percent change for November (I4)
nm nm nm nm nm nm nm nm nm nm nm nm nm
is _____. - ans1.7%
nm nm nm nm
The RevPAR Index percent change for November (J4) is ______. - ans16%
nm nm nm nm nm nm nm nm nm nm nm
What is the minimum number of reporting hotels for an industry segment to be considere
nm nm nm nm nm nm nm nm nm nm nm nm nm nm
d "sufficient"? - ansFour
nm nm nm
Modeled data is used in which country? - ansUnited States
nm nm nm nm nm nm nm nm nm
Which one of the following is a non-geographic category shown on the STAR report? -
nm nm nm nm nm nm nm nm nm nm nm nm nm nm
ansClass
nm
Which statement is true regarding the industry data that a hotel may see on a STAR repor
nm nm nm nm nm nm nm nm nm nm nm nm nm nm nm nm
t? - nm
ansNorth America hotels will see industry data for Market, Market Class, Submarket and
nm nm nm nm nm nm nm nm nm nm nm nm nm nm
Submarket Scale nm
Using the information from an excerpt of an "At a Glance" page from a Monthly STAR Re
nm nm nm nm nm nm nm nm nm nm nm nm nm nm nm nm
port answer the following Question 34. Which one of the following is an accurate stateme
nm nm nm nm nm nm nm nm nm nm nm nm nm nm
nt regarding the performance at your hotel? -
nm nm nm nm nm nm nm
ansYour Occupancy Index (MPI) has surpassed 100 in each of the four time periods sho
nm nm nm nm nm nm nm nm nm nm nm nm nm nm nm
wn
The Competitive Set Report in a Monthly STAR Report shows what information? -
nm nm nm nm nm nm nm nm nm nm nm nm
ans18 months of monthly data and 3 years of YTD, Running 3-month, and Running 12-
nm nm nm nm nm nm nm nm nm nm nm nm nm nm nm
month data nm
Using the information from an excerpt of a sample "Competitive Set Report" page from a
nm nm nm nm nm nm nm nm nm nm nm nm nm nm nm
Monthly STAR Report, answer the following Question 36. Which of the following stateme
nm nm nm nm nm nm nm nm nm nm nm nm
nts best describes performance of your hotel over the last six months? -
nm nm nm nm nm nm nm nm nm nm nm nm
ansYour hotel's Occupancy Rank has consistently been 2 of 5
nm nm nm nm nm nm nm nm nm nm
Which is an accurate statement regarding the Day of Week and Weekday/
nm nm nm nm nm nm nm nm nm nm nm
Weekend tab in the Monthly STAR report? - ansAll of the above
nm nm nm nm nm nm nm nm nm nm nm
