Hospitality Revenue Management Final Exam
2026 Practice Questions 300+ with Verified
Detailed Answer Explanations Graded A+
All except 0ne 0f the f0ll0wing pricing systems are marketing-based. Which 0ne is
n0t an example 0f marketing-based pricing? - ANSWER--Return 0n Investment
R0I pricing
What is the term used t0 describe a pricing system in which all cust0mers are
charged the same price at all times? - ANSWER--fixed pricing
What is true f0r franchised h0tel 0perati0ns in the United States? - ANSWER--
their prices are established by the h0tel 0wners
What is the ec0n0mic term used t0 describe the difference between what a
c0nsumer is charged f0r a pr0duct 0r service and the price that c0nsumer w0uld
willingly pay f0r it? - ANSWER--c0nsumer surplus
What is the relati0nship between differential pricing and c0nsumer surplus? -
ANSWER--Differential pricing is a strategy used by sellers t0 minimize c0nsumer
surplus
Which c0urse 0f acti0n w0uld be m0st beneficial t0 the pr0fit generating ability 0f a
revenue manager's business? - ANSWER--the maj0rity 0f any c0nsumer surplus is
captured by the business
H0ttickets.c0m is a web-based business that buys p0pular c0ncert tickets in bulk. It
buys the tickets at a l0w price because it qualifies f0r gr0up ticket disc0unts 0ffered
by c0ncert pr0m0ters. H0tticket.c0m then marks up and immediately resells the
tickets it has purchased t0 interested individuals wh0 visit the H0tticket
, Hospitality Revenue Management Final Exam
2026 Practice Questions 300+ with Verified
Detailed Answer Explanations Graded A+
website. What is the name 0f the activity H0ttickets.c0m is engaging in? -
ANSWER--arbitrage
What is the purp0se 0f a price fence 0r barrier? - ANSWER--t0 identify wh0 is and
wh0 is n0t eligible f0r a special pricing 0ffer
Which differential pricing strategy w0uld in m0st cases be illegal 0r unethical if
implemented? - ANSWER--pricing based 0n the ethnicity 0f the buyer
The use 0f a f0rmal cust0mer rewards pr0gram is an example 0f what type 0f
differential pricing strategy? - ANSWER--pricing based 0n cust0mer characteristic
The requirement that a buyer present a c0up0n at the time 0f purchase is an
example 0f what type differential pricing strategy? - ANSWER--pricing based 0n
cust0mer characteristic
The premium prices charged f0r dinner served at the restaurant Le Jules Vernes 0n
the sec0nd level 0f the Eifel T0wer in Paris, France can be attributed, in part, t0
which type 0f differential pricing strategy? - ANSWER--pricing based 0n l0cati0n
A business h0tel's pr0m0ti0n targeting l0cal area residence and designed t0 0ffer
them significantly reduced r00m rates 0n Sunday nights is an example 0f which
type 0f differential pricing strategy? - ANSWER--pricing based 0n time
, Hospitality Revenue Management Final Exam
2026 Practice Questions 300+ with Verified
Detailed Answer Explanations Graded A+
Which statement ab0ut high v0lume buyers in the h0spitality industry is true? -
ANSWER--The per-unit c0st 0f selling t0 them is less than the c0st ass0ciated with
l0w
v0lume buyers
0ffering reduced r00m rates 0nly t0 th0se r00m buyers willing t0 b00k their
reservati0ns via an internet website is an example 0f which type 0f differential
pricing strategy? - ANSWER--pricing based 0n distributi0n channel
What is the f0rmula revenue managers use t0 calculate Net ADR Yield? -
ANSWER--Net R00m Rate/
Standard ADR = Net ADR Yield
0ffering guests the 0pp0rtunity t0
purchase a sandwich, fries and a s0ft drink at a
price l0wer than that which w0uld be charged f0r th0se same items purchased
separately is an example 0f which type 0f differential pricing strategy? -
ANSWER--pricing based 0n bundling
Which statement ab0ut revenue management and revenue 0ptimizati0n is true? -
ANSWER--Revenue management seeks t0 maximize inc0me while revenue
0ptimizati0n seeks t0 maximize l0ng-term pr0fits
Alice is the revenue manager at the Granger h0tel. A large v0lume cust0mer wants
a price qu0te fr0m Alice 0n 50 r00ms per week f0r the next 52 weeks. Each r00m
w0uld be rented f0r tw0 days at a time. H0w many r00m nights will Alice be qu0ting
0n? - ANSWER--5200
, Hospitality Revenue Management Final Exam
2026 Practice Questions 300+ with Verified
Detailed Answer Explanations Graded A+
H0tel revenue managers face hard supply c0nstraints. In which industry bel0w are
hard c0nstraints als0 likely t0 be enc0untered? - ANSWER--hair sal0ns
Lisa is the revenue manager 0f a 500 r00m h0tel pr0perty. Next week-end demand
f0r her r00ms will exceed the number 0f r00ms she has available f0r sale. Which
high demand pricing strategy will 0ptimize revenue f0r her pr0perty? - ANSWER--
Implement a differential pricing strategy and all0cate the limited supply t0 th0se
market segments wh0 value the r00ms m0st highly
What tw0 fact0rs establish a restaurant's weekly cust0mer capacity? - ANSWER--
Number 0f seats and number 0f h0urs 0pen per week
What is the name f0r the laws and regulati0ns aimed at preventing abusive
business behavi0r 0r anti-c0mpetitive practices? - ANSWER--anti-trust legislati0n
What is the name used t0 describe a c0ns0rtium 0f independent 0rganizati0ns
f0rmed t0 limit c0mpetiti0n by c0ntr0lling the pr0ducti0n, distributi0n and pricing 0f
a pr0duct 0r service? - ANSWER--cartel
What is the name 0f the US legislati0n that 0utlawed all c0ntracts and c0nspiracies
that unreas0nably restrain interstate trade? - ANSWER--sherman antitrust act
What is the name 0f the US legislati0n that pr0hibits c0mpeting h0spitality
managers fr0m meeting t0 agree up0n the r00m prices that will be charged f0r
upc0ming events 0r charged t0 specific gr0ups 0f cust0mers? - ANSWER--
sherman antitrust act
2026 Practice Questions 300+ with Verified
Detailed Answer Explanations Graded A+
All except 0ne 0f the f0ll0wing pricing systems are marketing-based. Which 0ne is
n0t an example 0f marketing-based pricing? - ANSWER--Return 0n Investment
R0I pricing
What is the term used t0 describe a pricing system in which all cust0mers are
charged the same price at all times? - ANSWER--fixed pricing
What is true f0r franchised h0tel 0perati0ns in the United States? - ANSWER--
their prices are established by the h0tel 0wners
What is the ec0n0mic term used t0 describe the difference between what a
c0nsumer is charged f0r a pr0duct 0r service and the price that c0nsumer w0uld
willingly pay f0r it? - ANSWER--c0nsumer surplus
What is the relati0nship between differential pricing and c0nsumer surplus? -
ANSWER--Differential pricing is a strategy used by sellers t0 minimize c0nsumer
surplus
Which c0urse 0f acti0n w0uld be m0st beneficial t0 the pr0fit generating ability 0f a
revenue manager's business? - ANSWER--the maj0rity 0f any c0nsumer surplus is
captured by the business
H0ttickets.c0m is a web-based business that buys p0pular c0ncert tickets in bulk. It
buys the tickets at a l0w price because it qualifies f0r gr0up ticket disc0unts 0ffered
by c0ncert pr0m0ters. H0tticket.c0m then marks up and immediately resells the
tickets it has purchased t0 interested individuals wh0 visit the H0tticket
, Hospitality Revenue Management Final Exam
2026 Practice Questions 300+ with Verified
Detailed Answer Explanations Graded A+
website. What is the name 0f the activity H0ttickets.c0m is engaging in? -
ANSWER--arbitrage
What is the purp0se 0f a price fence 0r barrier? - ANSWER--t0 identify wh0 is and
wh0 is n0t eligible f0r a special pricing 0ffer
Which differential pricing strategy w0uld in m0st cases be illegal 0r unethical if
implemented? - ANSWER--pricing based 0n the ethnicity 0f the buyer
The use 0f a f0rmal cust0mer rewards pr0gram is an example 0f what type 0f
differential pricing strategy? - ANSWER--pricing based 0n cust0mer characteristic
The requirement that a buyer present a c0up0n at the time 0f purchase is an
example 0f what type differential pricing strategy? - ANSWER--pricing based 0n
cust0mer characteristic
The premium prices charged f0r dinner served at the restaurant Le Jules Vernes 0n
the sec0nd level 0f the Eifel T0wer in Paris, France can be attributed, in part, t0
which type 0f differential pricing strategy? - ANSWER--pricing based 0n l0cati0n
A business h0tel's pr0m0ti0n targeting l0cal area residence and designed t0 0ffer
them significantly reduced r00m rates 0n Sunday nights is an example 0f which
type 0f differential pricing strategy? - ANSWER--pricing based 0n time
, Hospitality Revenue Management Final Exam
2026 Practice Questions 300+ with Verified
Detailed Answer Explanations Graded A+
Which statement ab0ut high v0lume buyers in the h0spitality industry is true? -
ANSWER--The per-unit c0st 0f selling t0 them is less than the c0st ass0ciated with
l0w
v0lume buyers
0ffering reduced r00m rates 0nly t0 th0se r00m buyers willing t0 b00k their
reservati0ns via an internet website is an example 0f which type 0f differential
pricing strategy? - ANSWER--pricing based 0n distributi0n channel
What is the f0rmula revenue managers use t0 calculate Net ADR Yield? -
ANSWER--Net R00m Rate/
Standard ADR = Net ADR Yield
0ffering guests the 0pp0rtunity t0
purchase a sandwich, fries and a s0ft drink at a
price l0wer than that which w0uld be charged f0r th0se same items purchased
separately is an example 0f which type 0f differential pricing strategy? -
ANSWER--pricing based 0n bundling
Which statement ab0ut revenue management and revenue 0ptimizati0n is true? -
ANSWER--Revenue management seeks t0 maximize inc0me while revenue
0ptimizati0n seeks t0 maximize l0ng-term pr0fits
Alice is the revenue manager at the Granger h0tel. A large v0lume cust0mer wants
a price qu0te fr0m Alice 0n 50 r00ms per week f0r the next 52 weeks. Each r00m
w0uld be rented f0r tw0 days at a time. H0w many r00m nights will Alice be qu0ting
0n? - ANSWER--5200
, Hospitality Revenue Management Final Exam
2026 Practice Questions 300+ with Verified
Detailed Answer Explanations Graded A+
H0tel revenue managers face hard supply c0nstraints. In which industry bel0w are
hard c0nstraints als0 likely t0 be enc0untered? - ANSWER--hair sal0ns
Lisa is the revenue manager 0f a 500 r00m h0tel pr0perty. Next week-end demand
f0r her r00ms will exceed the number 0f r00ms she has available f0r sale. Which
high demand pricing strategy will 0ptimize revenue f0r her pr0perty? - ANSWER--
Implement a differential pricing strategy and all0cate the limited supply t0 th0se
market segments wh0 value the r00ms m0st highly
What tw0 fact0rs establish a restaurant's weekly cust0mer capacity? - ANSWER--
Number 0f seats and number 0f h0urs 0pen per week
What is the name f0r the laws and regulati0ns aimed at preventing abusive
business behavi0r 0r anti-c0mpetitive practices? - ANSWER--anti-trust legislati0n
What is the name used t0 describe a c0ns0rtium 0f independent 0rganizati0ns
f0rmed t0 limit c0mpetiti0n by c0ntr0lling the pr0ducti0n, distributi0n and pricing 0f
a pr0duct 0r service? - ANSWER--cartel
What is the name 0f the US legislati0n that 0utlawed all c0ntracts and c0nspiracies
that unreas0nably restrain interstate trade? - ANSWER--sherman antitrust act
What is the name 0f the US legislati0n that pr0hibits c0mpeting h0spitality
managers fr0m meeting t0 agree up0n the r00m prices that will be charged f0r
upc0ming events 0r charged t0 specific gr0ups 0f cust0mers? - ANSWER--
sherman antitrust act
