Exam (elaborations)
Revenue Management Final Exam – Questions And Answers (100% Accurate)
- Course
- REVENUE MANAGEMENT
- Institution
- REVENUE MANAGEMENT
Revenue Management Final Exam – Questions And Answers (100% Accurate)
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Revenue Management Final Exam – Questions AndAnswers (100% Accurate)
What is bigger in the tourism industry, fixed costs or variable costs? Right
Ans - fixed costs are bigger
-Think of an airplane: staffing, airport fees (fixed) - huge amount of the costs
for airplanes come from fixed costs; food, fuel (variable) - not as easy to
determine the variable costs
We can reduce prices (even below total cost per room), as long as the
reduced price covers, fixed cost per room or variable cost per room? Right
Ans - We can reduce prices as long as the reduced price covers the variable
cost per room
-because we are going to have the fixed costs not matter if we have the person
in the room or not
High Value Customers tend to book early or last? Right Ans - last
Do we sell "time blocks" or "physical products"? Right Ans - time blocks
What implication do time blocks have? Right Ans - we cannot store it for
tomorrow, it is gone once it is not sold for that day
"I want my hotel to be the first to sell out in the market": Correct or incorrect?
Right Ans - incorrect
RM can be organized with different levels regarding the people involved. How
many? Which ones? Right Ans - Property Level - Corporate Level - 3rd
Party Services
What does a booking curve represent? Right Ans - the expected number of
bookings for each day until the arrival date
-forecasted bookings
What does a pace report track? Right Ans - The OTB reservations against
the forescasted reservations
Who attends the weekly RM meetings? Right Ans - -Revenue manager
, -General manager
Sales manager
-Rooms manager
***and sometimes
-Food and Beverage management
-Marketing
-HR management
How many internal performance indicators do we have? Right Ans - 6: OR,
ADR, RevPar, and the percent changes of each of them
How many external performance indicators do we have? Right Ans - 6: OR
index, ADR index, RevPar index, and the percent
changes of each of them
What is the minimum number of hotels in a comp set? Right Ans - 4
What is the threshold in the OR, ADR and RevPar indexes that determines the
point we are outperforming the comp set? Right Ans - 100
Price from a marketing standpoint includes both monetary and
________________costs Right Ans - non‐monetary
price Right Ans - The amount of money charged for a good or service.
BAR and BRG Right Ans - The hotel makes a promise that the room prices
found on their website are the best rates compared to any other sites.
Example of BAR guarantee? Right Ans - If you found a better rate then you
will get that rate plus some additional discount (within 24 hours of making
the reservation) in PA
Who requires whom to sign a rate parity agreement? Right Ans - OTA
In what type of rates are the "Last Room Available Agreements" signed?
Right Ans - Corporate
Consumer reference prices: what is bigger, the increase in demand derived
from reducing a rate by $100 or the decrease in demand resulting from
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