REVENUE MANAGEMENT FINAL EXAM
PRACTICE 2026/2027 QUESTIONS AND
ANSWERS SOLVED WITH VERIFIED ANSWERS
◉ What is the name for the net value achieved by both parties in a
business transaction?. Answer: Profit
◉ RevPash. Answer: Total period revenue/ number of available seats
* Hours of seat availability
◉ According to the most recent Hospitality Sales & Marketing
Association International(HSMAI) survey, to whom do the largest
percentage of hotel revenue managers report?. Answer: Hotel's
General Manager
◉ Formula to calculate an owner's ROI. Answer: Owner's Investment
return / Owner's original investment
◉ Average revenue generate by each occupied guest room during a
define period of time. Answer: Rev Por
◉ Rev Par. Answer: Total revenue/ Total rooms available for sale
,◉ Potential customers that utilize business marketing activities and
messages are direct. Answer: Target Market
◉ Fundamental assumption upon which concept of consumer
rationality is based. Answer: Buyers will act in ways that are personal
benefit to them
◉ This is created when a seller communicates to a buyer the
description of a product to be sold and the price at which the product
will be sold.. Answer: A value proposition
◉ Included with the Place portion of the hotel marketing mix.
Answer: Promotions
◉ Fundamental assumption which Law of Supply is based?. Answer:
The higher the demand for product, the more of it will be produced by
sellers. Demand for a product the will be produced by
◉ Equilibrium price is in place for product. What is the law of
supply?. Answer: new price will be higher and supply will increase
◉ Break even point. Answer: The point at which a firm's revenues
exactly equal .
◉ what food service costs is a variable cost?. Answer: Food
, ◉ Total cost line always starts further up the Y axis. Answer: Fixed
costs are incurred even if no guests are sold
◉ Buyers view of a sales transaction. Answer: Perceived value.
Perceived value - selling price = personal profit
◉ Quantity and quality held constant . How will reduction as a price
affect buyers perception of value. Answer: Perceived value will
increase
◉ Which of the 4 I's of service often depends upon the skill level of
the individual who supplies it. Answer: Inconsistency
◉ 4 I's of service addressing the fact that a hotel goes unsold on a
certain night. Answer: Inventory
◉ Which two factors do successful revenue manages employ when
the devise and implement strategic pricing plans. Answer: Data
management and insight
◉ All except are marketing based example of marketing pricing.
Answer: Return on Investment
◉ True for franchised hotel operations in the US. Answer: Prices are
established by Hotel Owners
PRACTICE 2026/2027 QUESTIONS AND
ANSWERS SOLVED WITH VERIFIED ANSWERS
◉ What is the name for the net value achieved by both parties in a
business transaction?. Answer: Profit
◉ RevPash. Answer: Total period revenue/ number of available seats
* Hours of seat availability
◉ According to the most recent Hospitality Sales & Marketing
Association International(HSMAI) survey, to whom do the largest
percentage of hotel revenue managers report?. Answer: Hotel's
General Manager
◉ Formula to calculate an owner's ROI. Answer: Owner's Investment
return / Owner's original investment
◉ Average revenue generate by each occupied guest room during a
define period of time. Answer: Rev Por
◉ Rev Par. Answer: Total revenue/ Total rooms available for sale
,◉ Potential customers that utilize business marketing activities and
messages are direct. Answer: Target Market
◉ Fundamental assumption upon which concept of consumer
rationality is based. Answer: Buyers will act in ways that are personal
benefit to them
◉ This is created when a seller communicates to a buyer the
description of a product to be sold and the price at which the product
will be sold.. Answer: A value proposition
◉ Included with the Place portion of the hotel marketing mix.
Answer: Promotions
◉ Fundamental assumption which Law of Supply is based?. Answer:
The higher the demand for product, the more of it will be produced by
sellers. Demand for a product the will be produced by
◉ Equilibrium price is in place for product. What is the law of
supply?. Answer: new price will be higher and supply will increase
◉ Break even point. Answer: The point at which a firm's revenues
exactly equal .
◉ what food service costs is a variable cost?. Answer: Food
, ◉ Total cost line always starts further up the Y axis. Answer: Fixed
costs are incurred even if no guests are sold
◉ Buyers view of a sales transaction. Answer: Perceived value.
Perceived value - selling price = personal profit
◉ Quantity and quality held constant . How will reduction as a price
affect buyers perception of value. Answer: Perceived value will
increase
◉ Which of the 4 I's of service often depends upon the skill level of
the individual who supplies it. Answer: Inconsistency
◉ 4 I's of service addressing the fact that a hotel goes unsold on a
certain night. Answer: Inventory
◉ Which two factors do successful revenue manages employ when
the devise and implement strategic pricing plans. Answer: Data
management and insight
◉ All except are marketing based example of marketing pricing.
Answer: Return on Investment
◉ True for franchised hotel operations in the US. Answer: Prices are
established by Hotel Owners
