Exam (elaborations)
Revenue Management Final Exam – Questions & Answers (100% Correct)
- Course
- REVENUE MANAGEMENT
- Institution
- REVENUE MANAGEMENT
Revenue Management Final Exam – Questions & Answers (100% Correct)
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Revenue Management Final Exam – Questions &Answers (100% Correct)
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% (room nights sold/ room
nights avail x 100)
Which is not a positive of using revenue management strategies and tactics?
Right Ans - motivate employees
what is the main reason that travelers today have more clout than ever before
Right Ans - they have information on virtually everything at their fingertips
revenue management can be defined as Right Ans - A set of strategies and
techniques used to sell the right product, to the right customer, at the right
time and at the right prices.
revenue management includes a multidisciplinary management techniques
applied over several sub-sectors of hospitality. What is not one discipline
within RM? Right Ans - logistics management
t/f A benefit of variable pricing within revenue management is the smoothing
of demand. Right Ans - true
which statement about hotel revenue management is false Right Ans -
revenue management is new, as are all of the strategies that are employed to
maximize profit
To interpret measures of a hotel's performance, managers often compare
those measures with: Right Ans - historical figures, budget for period,
industry averages
revenue management is not necessarily about Right Ans - achieving 100%
occupancy and a perfect science
, When might a revenue manager choose without questions to accept a less
profitable group booking over more profitable transient business? Right
Ans - the 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? Right Ans - room
rate, variable costs, and all costs and fees that apply to the booking
displacement analysis can determine the quantifiable benefits of different
options. However it needs to have the right circumstances. When is it
appropriate? Right Ans - when a reliable forecast indicates that there's
more demand than our capacity, it will be a period of high demand
displacement analysis is an RM decision making tool with a 4 step process: 1.
___ 2. establish the net food and bev revenue differential 3. determine other
revenue 4. summarize- what is step 1? Right Ans - establish net room
revenue differential
a displacement analysis should be conducted Right Ans - when accepting a
group booking will mean turning other business away.
in displacement analysis, if a possible group reservation will bring $3,850 in
rooms revenue but according to your forecast you expect to impact your
future avail. by displacing 33 transient demand rooms at $100/night, would
you be inclined to accept or deny this reservation? Right Ans - based only
on these numbers i would accept this reservation
which is a step in the displacement analysis process? Right Ans - establish
net room revenue differential
an individual traveling, dining, attending performance, or staying alone is
referred to as Right Ans - transient
In a property forecasted high period of demand period, if the RM
displacement analysis shows that by accepting a certain group the overall net
revenue gain is positive (more revenues than the costs of displacement
transient demand in the future), increasing profitability, than its Sales or
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