Hospitality Revenue Management final exam review 2023/2024

What is the industry term used to describe the sum of prices paid by a business's customers? - Correct Answer total revenues Historically, what concept have hospitality managers chiefly used to calculate their selling prices? - Correct Answer costs What is an algebraic equivalent of the formula: Sales = Costs + Profit? - Correct Answer profit=sales-costs What is the name for the net value achieved by both parties in a business transaction? - Correct Answer profit What element is not present in a barter economy? - Correct Answer money What is the formula used to calculate an owner's ROI? - Correct 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? - Correct Answer constrained supply Which industry was the first to use Yield Management principles? - Correct Answer airline What is the industry term used to describe the selling of rooms which are not actually available for sale? - Correct Answer overbooking What is the formula used to calculate Average Daily Rate? - Correct 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? - Correct 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? - Correct Answer $140 What is the industry term for the average revenue generated by each occupied guestroom during a defined period of time? - Correct Answer RevPOR What is the formula used to calculate GOPPAR? - Correct Answer (Total Revenue - Management Controllable Expenses) / Rooms Available to Sell = GOPPAR