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Revenue Management Final Exam – Questions With Verified Answers
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Revenue Management Final Exam – Questions WithVerified Answers
Revenue management is a set of revenue maximization strategies and tactics
that: Right Ans - can be used to improve the profitability of certain
businesses.
When the American Airlines CEO developed yield management, what type of
information was crucial to its success? Right Ans - forecasting
Which of the following statements about hotel revenue management is
FALSE? Right Ans - Revenue management is new, as are all of the strategies
that are employed to maximize profit.
Which of the following is NOT a criterion needed for an industry to unlock the
full potential of revenue management? Right Ans - low fixed costs and high
variable costs
Total revenue management refers to: Right Ans - managing several
revenue streams at the same time.
To interpret measures of a hotel's performance, managers often compare
those measures with: Right Ans - historical figures from comparable earlier
periods at the hotel.
industry or sector averages.
the budget for the period.
All of the above
If a 300-room hotel achieves 70 percent occupancy for April at an ADR of $153
per room, what will room
revenue equal? Right Ans - $963,900
In January, the 200-room SnowBound Inn ran a skiers special that resulted in
them selling 5,735 rooms during the month. What was the occupancy
percentage for the month? Right Ans - 92.5 percent
, How do an internal ADR and an external ADR differ?
Correct answer: Right Ans - The external ADR uses gross room revenue,
while internal ADR generally does not.
Which of the following is a measure of cost efficiency? Right Ans - GOPPAR
Which of the following statements is FALSE? Right Ans - Most Internet
searches are organic with results based solely on relevant search criteria.
When considering the comp set for any hotel, it should contain which of the
following? (please make the choice that completes this sentence the best)
Hotels___________________________. Right Ans - that compete for the same
guests.
Hotel A features 300 rooms in a 1050-room compset. 350 rooms make up
Hotel B, and 400 rooms make up Hotel C. Hotel A sold 8,000 rooms during a
recent 30-day period during which the total competitive set sold 25,400
rooms. Which of the following is without a doubt TRUE? Right Ans - Hotel A
exceeded its fair share.
Market intelligence for a hotel within a comp set is an important factor. Which
of the following statements is FALSE? Right Ans - An effective revenue
manager usually purchases all available relevant market intelligence.
In order to measure the effectiveness of any revenue management system,
which statement below is most accurate: Right Ans - difficult because the
causes of measurable changes may not be clear.
What kind of revenue management systems implement rate and capacity
allocation control required to meet revenue management objectives? Right
Ans - decision systems
What advancement in technology has allowed all room sellers to have access
to every inventory item, even allocated room blocks? Right Ans - single-
image inventory
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