Exam (elaborations)
Revenue Management Final Exam Review – Questions And Solutions (100% Correct)
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- REVENUE MANAGEMENT
- Institution
- REVENUE MANAGEMENT
Revenue Management Final Exam Review – Questions And Solutions (100% Correct)
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Revenue Management Final Exam Review – QuestionsAnd Solutions (100% Correct)
What is the industry term used to describe the sum of prices paid by a
business's customers? Right Ans - total revenues
Historically, what concept have hospitality managers chiefly used to calculate
their selling prices? Right Ans - costs
What is an algebraic equivalent of the formula: Sales = Costs + Profit? Right
Ans - profit=sales-costs
What is the name for the net value achieved by both parties in a business
transaction? Right Ans - profit
What element is not present in a barter economy? Right Ans - money
What is the formula used to calculate an owner's ROI? Right 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? Right Ans - constrained supply
Which industry was the first to use Yield Management principles? Right
Ans - airline
What is the industry term used to describe the selling of rooms which are not
actually available for sale? Right Ans - overbooking
What is the formula used to calculate Average Daily Rate? Right 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? Right 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? Right Ans - $140
What is the industry term for the average revenue generated by each occupied
guestroom during a defined period of time? Right Ans - RevPOR
What is the formula used to calculate GOPPAR? Right 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? Right Ans - market
segment
What is a rack rate? Right 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) Right Ans -
RevPASH formula
What is the term used to identify a management philosophy that places
customer gain ahead of short-term revenue maximization in revenue
management decision making? Right Ans - Customer-centric revenue
management
What is the term used to describe the potential customers to whom a
business's marketing activities and messages are directed? Right Ans -
target market
What is the term used to describe efforts undertaken to encourage travel and
tourism to a specific geographic area or attraction? Right Ans - destination
marketing
What is the name for the value given up by a buyer and a seller in a business
transaction? Right Ans - price
Charging guests for watching a "Pay-Per-View" movie in their hotel guestroom
is an example of what type of pricing? Right Ans - two-tiered pricing
, What is the fundamental assumption upon which the concept of consumer
rationality is based? Right Ans - Buyers act in ways that are of personal
benefit to them
What is the revenue management term used to describe the perceived benefit
gained, minus the price paid, in a business transaction? Right Ans - value
What is created when a seller communicates to a buyer a description of a
product to be sold and the price at which that product will be sold? Right
Ans - value proposition
Which of the following terms would be included in the Place portion of a
hotel's marketing mix? Right Ans - distribution channels
What is the fundamental assumption upon which the Law of Supply is based?
Right Ans - The higher the demand for a product the more of it will be
produced by sellers
According to Alfred Marshall's work, if the price of a product is lower than the
natural, or equilibrium price, what will happen? Right Ans - The demand
for the product would exceed its supply
Assume an equilibrium price (P1) is in place for a product. What would the
law of supply and demand predict as an outcome if demand for that product
increased? Right Ans - The new price (P2) would be higher than the
previous price (P1) and supply would increase
What concept is displayed by the intersecting point on a supply and demand
curve? Right Ans - An estimate of the amount of a product that would be
purchased at a known price and point in time
What must be true if a product producer is to continue creating and selling
products? Right Ans - Revenues must exceed costs
What is the specialized branch of accounting that focuses on recording and
analyzing the expenses incurred by an organization? Right Ans - cost
accounting
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