REVENUE MANAGEMENT STUDY EXAMS GUIDE
QUESTIONS AND ANSWERS SET A+
✔✔Which of the following is not typically used by revenue managers to designate
specific room products sold in their hotels?
location
price
bed configuration
room size - ✔✔price
✔✔What is the lodging term used to describe two independent data management
systems that have been electronically connected?
interface
inverse connection
bond
one-way connect - ✔✔interface
✔✔what would be the effect of an upon-arrival inventory management training program
that resulted in a hotel significantly up selling a large percentage of its arriving guests?
ADR and Occupancy would increase and Revpar would be unchanged
RevPar and Occupancy would increase and ADR would be unchanged
ADR and RevPar would increase and occupancy % would be unchanged
,ADR and REvpar would increase and occupancy % would increase - ✔✔ADR and
REVPAR would increase and occupancy % would be unchanged
✔✔What are two synonymous lodging industry terms used to identify the difference
between purchases a group pledges to make and the purchases it actually makes?
Attrition and Dry
Attrition and Wash
Fade and Dry
Fade and wash - ✔✔attrition and wash
✔✔Tanika is the revenue manager at the Holiday House Hotel. Southeast airlines has
requested that Tanika quote them a rate for the use of 20 rooms per night for a period of
one year. If Southeast accepts Tanika's quote for both price and availability, what type
of room rate will the hotel and airline agreed upon?
Negotiated rate
group rate
volume rate
contract rate - ✔✔contract rate
✔✔Expedia.com wants Jesse, the revenue manager at the Hilton, to agree to contract
terms that would require Jessie's hotel to apply the agreed upon Expedia rate to any
room type (except suites) available at the time one of Expedia's customers wants to
make a reservation. What is the industry term for Expedia.com's contract request?
Run of the house
First Room Availability
Last Room Availability
Black out Availability - ✔✔last room availability
✔✔Francisco is the revenue manager at the 1500 room Bay Shore hotel. Tonight he
forecasts 750 stay-overs and 750 arrivals. Assume he is accurate in forecasting a 6%
no-show rate. How many additional reservations could Angelina accept before she
would be required to walk an arriving guest?
,88
90
89
91 - ✔✔90
✔✔What is true about a revenue manager's rooms demand forecast?
It is based on customer demand at an established price
It is based on customer demand at a yet to be determined price
It cannot be altered in the future via price management strategies
. It is based on the total number of hotels in an area - ✔✔it is based on customer
demand at an established price
✔✔In the airline industry, airline companies establish ticket prices. In the lodging
industry, who is responsible for establishing room selling prices for hotels that are part
of a lodging company?
Franchise companies or their designees
Brand managers or their designees
Area CVBs or their designees
Hotel owners or their designees - ✔✔hotel owners or their designees
✔✔In the lodging industry, what is a rack rate?
A room's highest legally allowable selling price
A room's selling price when no discounts of any type are offered
The selling price of a hotel's lowest cost rooms
A room's selling price after its distribution channel costs are subtracted - ✔✔a room's
selling price when no discounts of any type are offered
✔✔What is true about discounts offered on the selling price of hotel rooms?
, They should be offered only during high demand periods
They should be granted only to long term stay guests
They should be provided only to group rooms buyers
They should be easily explainable and defensible - ✔✔they should be easily
explainable and defensible
✔✔In which situation would a customer-centric revenue manager likely implement a
special event rate?
During a major weather-related event such as a hurricane or flood
During implantation of a new room coding system
During a local festival that would fill all of the area hotels
During periods of very low room demand - ✔✔during a local festival that would fill all of
the area hotels
✔✔Hanna is the revenue manger at the Waterford hotel. For a Saturday in the future
she has determined her hotel will accept reservation only for those guests seeking to
stay for three or more days. Which of the following revenue management control
(restriction) strategies is she using?
MLOS
Attrition
CVB
CTA - ✔✔MLOS
✔✔Bob is the revenue manger at the Waterfront hotel. For the third week in December
next year he has determined the hotel will accept reservations for guests seeking to
arrive on Dec 21st. Dec 22nd. or Dec 23rd; but not on Dec 24th or Dec 25th. Which of
the following revenue management control (restriction) strategies is she using?
MLOS
Attrition
CVB
QUESTIONS AND ANSWERS SET A+
✔✔Which of the following is not typically used by revenue managers to designate
specific room products sold in their hotels?
location
price
bed configuration
room size - ✔✔price
✔✔What is the lodging term used to describe two independent data management
systems that have been electronically connected?
interface
inverse connection
bond
one-way connect - ✔✔interface
✔✔what would be the effect of an upon-arrival inventory management training program
that resulted in a hotel significantly up selling a large percentage of its arriving guests?
ADR and Occupancy would increase and Revpar would be unchanged
RevPar and Occupancy would increase and ADR would be unchanged
ADR and RevPar would increase and occupancy % would be unchanged
,ADR and REvpar would increase and occupancy % would increase - ✔✔ADR and
REVPAR would increase and occupancy % would be unchanged
✔✔What are two synonymous lodging industry terms used to identify the difference
between purchases a group pledges to make and the purchases it actually makes?
Attrition and Dry
Attrition and Wash
Fade and Dry
Fade and wash - ✔✔attrition and wash
✔✔Tanika is the revenue manager at the Holiday House Hotel. Southeast airlines has
requested that Tanika quote them a rate for the use of 20 rooms per night for a period of
one year. If Southeast accepts Tanika's quote for both price and availability, what type
of room rate will the hotel and airline agreed upon?
Negotiated rate
group rate
volume rate
contract rate - ✔✔contract rate
✔✔Expedia.com wants Jesse, the revenue manager at the Hilton, to agree to contract
terms that would require Jessie's hotel to apply the agreed upon Expedia rate to any
room type (except suites) available at the time one of Expedia's customers wants to
make a reservation. What is the industry term for Expedia.com's contract request?
Run of the house
First Room Availability
Last Room Availability
Black out Availability - ✔✔last room availability
✔✔Francisco is the revenue manager at the 1500 room Bay Shore hotel. Tonight he
forecasts 750 stay-overs and 750 arrivals. Assume he is accurate in forecasting a 6%
no-show rate. How many additional reservations could Angelina accept before she
would be required to walk an arriving guest?
,88
90
89
91 - ✔✔90
✔✔What is true about a revenue manager's rooms demand forecast?
It is based on customer demand at an established price
It is based on customer demand at a yet to be determined price
It cannot be altered in the future via price management strategies
. It is based on the total number of hotels in an area - ✔✔it is based on customer
demand at an established price
✔✔In the airline industry, airline companies establish ticket prices. In the lodging
industry, who is responsible for establishing room selling prices for hotels that are part
of a lodging company?
Franchise companies or their designees
Brand managers or their designees
Area CVBs or their designees
Hotel owners or their designees - ✔✔hotel owners or their designees
✔✔In the lodging industry, what is a rack rate?
A room's highest legally allowable selling price
A room's selling price when no discounts of any type are offered
The selling price of a hotel's lowest cost rooms
A room's selling price after its distribution channel costs are subtracted - ✔✔a room's
selling price when no discounts of any type are offered
✔✔What is true about discounts offered on the selling price of hotel rooms?
, They should be offered only during high demand periods
They should be granted only to long term stay guests
They should be provided only to group rooms buyers
They should be easily explainable and defensible - ✔✔they should be easily
explainable and defensible
✔✔In which situation would a customer-centric revenue manager likely implement a
special event rate?
During a major weather-related event such as a hurricane or flood
During implantation of a new room coding system
During a local festival that would fill all of the area hotels
During periods of very low room demand - ✔✔during a local festival that would fill all of
the area hotels
✔✔Hanna is the revenue manger at the Waterford hotel. For a Saturday in the future
she has determined her hotel will accept reservation only for those guests seeking to
stay for three or more days. Which of the following revenue management control
(restriction) strategies is she using?
MLOS
Attrition
CVB
CTA - ✔✔MLOS
✔✔Bob is the revenue manger at the Waterfront hotel. For the third week in December
next year he has determined the hotel will accept reservations for guests seeking to
arrive on Dec 21st. Dec 22nd. or Dec 23rd; but not on Dec 24th or Dec 25th. Which of
the following revenue management control (restriction) strategies is she using?
MLOS
Attrition
CVB
