Hospitality Revenue Management final exam review Questions and Answers
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Course
Hospitality
Institution
Hospitality
What is the industry term used to describe the sum of prices paid by a
business's customers?
Ans- total revenues
Historically, what concept have hospitality managers chiefly used to calculate
their selling prices?
Ans- costs
What is an algebraic equivalent of the formula: Sales = Costs + Pr...
Hospitality Revenue
Management final exam
review Questions and
Answers
What is the industry term used to describe the sum of prices paid by a
business's customers?
Ans- total revenues
Historically, what concept have hospitality managers chiefly used to calculate
their selling prices?
Ans- costs
What is an algebraic equivalent of the formula: Sales = Costs + Profit?
Ans- profit=sales-costs
,What is the name for the net value achieved by both parties in a business
transaction?
Ans- profit
What element is not present in a barter economy?
Ans- money
What is the formula used to calculate an owner's ROI?
Ans- 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?
Ans- constrained supply
Which industry was the first to use Yield Management principles?
,Ans- airline
What is the industry term used to describe the selling of rooms which are not
actually available for sale?
Ans- overbooking
What is the formula used to calculate Average Daily Rate?
Ans- 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?
Ans- 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?
Ans- $140
, What is the industry term for the average revenue generated by each occupied
guestroom during a defined period of time?
Ans- RevPOR
What is the formula used to calculate GOPPAR?
Ans- (Total Revenue - Management Controllable Expenses) / Rooms Available to
Sell = GOPPAR
What is the industry term for a customer group which can be readily identified
by one or more common characteristics?
Ans- market segment
What is a rack rate?
Ans- The price of rooms when no discounts of any type are offered
What is:
Total period revenue
(Number of available seats) x (hours of seat availability)
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