Hospitality Revenue Management Final Exam Review Questions with Correct Answers

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