Revenue
Management
Final Study
Guide with
verified
solutions
Historically, what concept have hospitality
managers chiefly used to calculate their selling
prices? - answer Cost
The algebraic equivalent of the formula "Sales =
Costs + Profit" is: - answer Profit= Sales-Costs
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
,If a Revenue Manager implements an
organization's strategic pricing plan what personal
characteristic of that Revenue Manager will be
most important for ensuring the plan's success? -
answer Understanding customers
What is the specialized branch of accounting that
focuses on recording and analyzing the expenses
incurred by an organization? - answer Cost
accounting
What is created when a seller communicates to a
buyer a description of a product to be sold and the
price at which that product will be sold? - answer
Value Proposition
What is the revenue management term used to
describe the perceived benefit gained, minus the
price paid, in a business transaction? - answer
Value
What's not present in a barter economy? - answer
Money
Formula for calculating GOPPAR - answer Total
revenue- Management Controllable Expenses)/
,Total Available room
What is the industry term for a customer group
which can be readily identified by one or more
common characteristics? - answer Market Segment
Which of the following terms would be included in
the Place portion of a hotel's marketing mix? -
answer Distribution channels
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 industry term for the point at which an
organization's revenues exactly equal its costs? -
answer Break-even point
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 name for the net value achieved by
both parties in a business transaction? - answer
Profit
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
Assume an equilibrium price (P1) is in place for a
product. What would the law of supply and demand
predict as an outcome if demand for that product
increased? - answer the new price (P2) would be
higher than the previous price (P1) and supply
would increase.
According to Alfred Marshall's work, if the price of
a product is lower than the natural, or equilibrium
price, what will happen? - answer the demand for
the product would exceed its supply.
Which of the following lodging costs is a fixed
cost? - answer Mortgage payments
Which of the following foodservice costs is a
variable cost? - answer Food
Management
Final Study
Guide with
verified
solutions
Historically, what concept have hospitality
managers chiefly used to calculate their selling
prices? - answer Cost
The algebraic equivalent of the formula "Sales =
Costs + Profit" is: - answer Profit= Sales-Costs
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
,If a Revenue Manager implements an
organization's strategic pricing plan what personal
characteristic of that Revenue Manager will be
most important for ensuring the plan's success? -
answer Understanding customers
What is the specialized branch of accounting that
focuses on recording and analyzing the expenses
incurred by an organization? - answer Cost
accounting
What is created when a seller communicates to a
buyer a description of a product to be sold and the
price at which that product will be sold? - answer
Value Proposition
What is the revenue management term used to
describe the perceived benefit gained, minus the
price paid, in a business transaction? - answer
Value
What's not present in a barter economy? - answer
Money
Formula for calculating GOPPAR - answer Total
revenue- Management Controllable Expenses)/
,Total Available room
What is the industry term for a customer group
which can be readily identified by one or more
common characteristics? - answer Market Segment
Which of the following terms would be included in
the Place portion of a hotel's marketing mix? -
answer Distribution channels
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 industry term for the point at which an
organization's revenues exactly equal its costs? -
answer Break-even point
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 name for the net value achieved by
both parties in a business transaction? - answer
Profit
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
Assume an equilibrium price (P1) is in place for a
product. What would the law of supply and demand
predict as an outcome if demand for that product
increased? - answer the new price (P2) would be
higher than the previous price (P1) and supply
would increase.
According to Alfred Marshall's work, if the price of
a product is lower than the natural, or equilibrium
price, what will happen? - answer the demand for
the product would exceed its supply.
Which of the following lodging costs is a fixed
cost? - answer Mortgage payments
Which of the following foodservice costs is a
variable cost? - answer Food
