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Revenue Management Final Exam Questions with verified Answers
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Revenue Management Final ExamWhat is the main reason that travelers today have more clout than ever before? -
Question and answersThey have information on virtually everything at their fingertips.
Revenue Management is NOT necessarily about... - Question and answersAchieving
100 % occupancy and a perfect science
The Hurdle Rate is...? - Question and answersThe Lowest Rate for a Given Day
A benefit of variable pricing within revenue management is the smoothing of demand.
T/F - Question and answersTrue
Revenue management is a set of revenue maximization strategies and tactics that... -
Question and answerscan be used to improve the profitability of certain businesses.
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? - Question and answersOccupancy % = Room nights sold in a period / Room
nights available in that period
Answer: 5,735 / (200x31) = 5,,200 = 92.5%
When the American Airlines CEO developed yield management, what type of
information was crucial to its success? - Question and answersforecasting
The goal of revenue management is to MAXIMIZE REVENUE per Available Time-
Based Inventory Unit (or RevPATI). RevPATI formula applied to all industries translates
into...? - Question and answersCapacity Utilization x Average Revenue per Service
Transaction
Which of the following is NOT a criterion needed for an industry to unlock the full
potential of revenue management? - Question and answerslow fixed costs and high
variable costs
To interpret measures of a hotel's performance, managers often compare those
measures with: - Question and answersindustry or sector averages, the budget for the
period, and historical figures from comparable earlier periods at the hotel.
Which of the following statements about hotel revenue management is FALSE? -
Question and answersRevenue management is new, as are all of the strategies that are
employed to maximize profit.
Revenue Management includes a multidisciplinary management techniques applied to
several sub-sectors of the hospitality. Which of the following is NOT one discipline
within Revenue Management? - Question and answersLogistics Management
, Identify which of these is not a positive of using revenue management strategies and
tactics: - Question and answersMotivate employees
If a 300-room hotel achieves 70 percent occupancy for April at an ADR of $153 per
room, what will room revenue equal? - Question and answers$963,900
What is the main reason that travelers today have more clout than ever before? -
Question and answersThey have information on virtually everything at their fingertips.
Revenue management can be defined as - Question and answersA set of strategies
and techniques used to sell the right product, to the right customer, at the right time and
at the right prices.
When might a revenue manager choose without questions to accept a less profitable
group booking over more profitable transient business? - Question and answersThe
group is a regular customer of the hotel or a key account group from your comp set.
What information is needed to calculate a net room rate? - Question and answersroom
rate, variable costs, and all costs and fees that apply to the booking
An individual traveling, dining, attending a game or performance, or staying alone is
usually referred to as a ______________. This type of guest may be also be defined as
an individual hospitality customer. Think of a single person purchasing an airline seat, a
meal, a ticket, or a hotel room; in RM we call this type of customer a: - Question and
answersTransient
Displacement Analysis can determine the quantifiable benefits of different options.
However it needs to have the right circumstances. When is it appropriated? - Question
and answersWhen a reliable forecast indicates that there's more demand than our
capacity, it will be a period of high demand
Displacement analysis is a RM decision making and comparative scenarios tool with
four step process: (1.) ________________________________; (2.) Establish the net
Food and Beverage revenue differential; (3.) Determine other revenue; (4.) Summarize.
Following the computation of the Transients displaced costs and the group reservation
revenues, what do we do in step 1.? - Question and answersEstablish net room
revenue differential
Why does Gabor Forgacs (your RM book's author) mentions in regards to displacement
analysis that "the numeric results of the (displacement) analysis should not be the only
criteria for the decision" p.57? - Question and answersBecause rather than a quick
tactical interpretation of the numbers, one should consider other critical (and eventully
strategic) information e.g. Existing competitor key account
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