Hospitality Revenue
Management final exam
review with verified
solutions
What is the industry term used to describe the sum
of prices paid by a business's customers? - answer
total revenues
Historically, what concept have hospitality
managers chiefly used to calculate their selling
prices? - answer costs
What is an algebraic equivalent of the formula:
Sales = Costs + Profit? - answer profit=sales-costs
What is the name for the net value achieved by
both parties in a business transaction? - answer
profit
What element is not present in a barter economy? -
answer money
What is the formula used to calculate an owner's
ROI? - answer Owner's Investment Return / Owner's
,Original Investment = Owner's Return on
Investment
Sandy has 100 hotel rooms to sell. This Saturday
night has enough customers to sell 125 rooms so
she will be refusing 25 requests for rooms. What is
this an example of? - answer constrained supply
Which industry was the first to use Yield
Management principles? - answer airline
What is the industry term used to describe the
selling of rooms which are not actually available
for sale? - answer overbooking
What is the formula used to calculate Average
Daily Rate? - answer Total Room's Revenue / Total
Rooms Sold = Average Daily Rate
Tashia's hotel sold 175 rooms last night at an ADR
of $200.00. Her hotel has 250 rooms. What was
Tashia's occupancy % last night? - answer 70%
Tashia's hotel sold 175 rooms last night at an ADR
of $200.00. Her hotel has 250 rooms. What was
Tashia's RevPAR last night? - answer $140
,What is the industry term for the average revenue
generated by each occupied guestroom during a
defined period of time? - answer RevPOR
What is the formula used to calculate GOPPAR? -
answer (Total Revenue - Management Controllable
Expenses) / Rooms Available to Sell = GOPPAR
What is the industry term for a customer group
which can be readily identified by one or more
common characteristics? - answer market segment
What is a rack rate? - answer The price of rooms
when no discounts of any type are offered
What is:
Total period revenue
(Number of available seats) x (hours of seat
availability) - answer RevPASH formula
What is the term used to identify a management
philosophy that places customer gain ahead of
short-term revenue maximization in revenue
management decision making? - answer Customer-
centric revenue management
, What is the term used to describe the potential
customers to whom a business's marketing
activities and messages are directed? - answer
target market
What is the term used to describe efforts
undertaken to encourage travel and tourism to a
specific geographic area or attraction? - answer
destination marketing
What is the name for the value given up by a buyer
and a seller in a business transaction? - answer
price
Charging guests for watching a "Pay-Per-View"
movie in their hotel guestroom is an example of
what type of pricing? - answer two-tiered pricing
What is the fundamental assumption upon which
the concept of consumer rationality is based? -
answer Buyers act in ways that are of personal
benefit to them
What is the revenue management term used to
describe the perceived benefit gained, minus the
price paid, in a business transaction? - answer
value
Management final exam
review with verified
solutions
What is the industry term used to describe the sum
of prices paid by a business's customers? - answer
total revenues
Historically, what concept have hospitality
managers chiefly used to calculate their selling
prices? - answer costs
What is an algebraic equivalent of the formula:
Sales = Costs + Profit? - answer profit=sales-costs
What is the name for the net value achieved by
both parties in a business transaction? - answer
profit
What element is not present in a barter economy? -
answer money
What is the formula used to calculate an owner's
ROI? - answer Owner's Investment Return / Owner's
,Original Investment = Owner's Return on
Investment
Sandy has 100 hotel rooms to sell. This Saturday
night has enough customers to sell 125 rooms so
she will be refusing 25 requests for rooms. What is
this an example of? - answer constrained supply
Which industry was the first to use Yield
Management principles? - answer airline
What is the industry term used to describe the
selling of rooms which are not actually available
for sale? - answer overbooking
What is the formula used to calculate Average
Daily Rate? - answer Total Room's Revenue / Total
Rooms Sold = Average Daily Rate
Tashia's hotel sold 175 rooms last night at an ADR
of $200.00. Her hotel has 250 rooms. What was
Tashia's occupancy % last night? - answer 70%
Tashia's hotel sold 175 rooms last night at an ADR
of $200.00. Her hotel has 250 rooms. What was
Tashia's RevPAR last night? - answer $140
,What is the industry term for the average revenue
generated by each occupied guestroom during a
defined period of time? - answer RevPOR
What is the formula used to calculate GOPPAR? -
answer (Total Revenue - Management Controllable
Expenses) / Rooms Available to Sell = GOPPAR
What is the industry term for a customer group
which can be readily identified by one or more
common characteristics? - answer market segment
What is a rack rate? - answer The price of rooms
when no discounts of any type are offered
What is:
Total period revenue
(Number of available seats) x (hours of seat
availability) - answer RevPASH formula
What is the term used to identify a management
philosophy that places customer gain ahead of
short-term revenue maximization in revenue
management decision making? - answer Customer-
centric revenue management
, What is the term used to describe the potential
customers to whom a business's marketing
activities and messages are directed? - answer
target market
What is the term used to describe efforts
undertaken to encourage travel and tourism to a
specific geographic area or attraction? - answer
destination marketing
What is the name for the value given up by a buyer
and a seller in a business transaction? - answer
price
Charging guests for watching a "Pay-Per-View"
movie in their hotel guestroom is an example of
what type of pricing? - answer two-tiered pricing
What is the fundamental assumption upon which
the concept of consumer rationality is based? -
answer Buyers act in ways that are of personal
benefit to them
What is the revenue management term used to
describe the perceived benefit gained, minus the
price paid, in a business transaction? - answer
value
