Exam (elaborations)
Revenue Management Final Exam – Questions & Detailed Solutions (100%)
- Course
- REVENUE MANAGEMENT
- Institution
- REVENUE MANAGEMENT
Revenue Management Final Exam – Questions & Detailed Solutions (100%)
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Revenue Management Final Exam – Questions &Detailed Solutions (100%)
Hotel sales data has two major patterns. Please choose the answers from the
options below. Right Ans - Seasonal and Cyclical
Effective demand forecasts rely on historical, current, and future data. What is
the fourth component needed for effective demand forecasting? Please type
your answer in the entry box. Right Ans - Managerial Insight
The term "pick up" refers to Right Ans - The percentage of reserved rooms
that are occupied.
Accurate room demand forecasts have no bearing on rate management.
Right Ans - False
A guest room not scheduled to be vacated on the forecasted day is referred to
as a Right Ans - Stayover
It is the Revenue Manager's responsibility to determine the positioning for the
hotel, restaurant, or property. Right Ans - False
When determining whether to take one customer (or group) over another,
what is the most important consideration for a revenue manager? Right
Ans - The worth of the customer versus the worth of the displaced business.
*In displacement, the revenue manager must consider total worth of the
customers.
Which of the following are illegal practices that a RM may encounter Right
Ans - Price gouging - unreasonable price increases Collusion - secret
agreements on pricing or offers
Predatory pricing - selling below cost
ADR multiplied by occupancy rate is the formula for which Revenue
Management measure Right Ans - RevPAR
It is nearly impossible for your ADR to be higher than your highest single rate
sold on any given night. Right Ans - True
, What is the ADR & RevPAR for a 200 room hotel with no rooms out of service
given the following information? Occupancy = 75% Rooms Revenue = $19,500
Right Ans - ADR = $130; RevPAR = $97.50
Using the occupancy tab on the Hotel Math Fundamentals Excel.xlsx Preview
the documentspreadsheet which month has the highest occupancy rate?
Right Ans - May
Market segments generally have their own rate code. Right Ans - True
Where a hotel has DD and King room products available and discounted rates
are available for both, how many distinct rooms exist in the PMS?
Note: Both the discount and the rack rate may be available at any given time
throughout the year. Right Ans - Four
If your property has 12 unique room codes based on configuration and view,
will the number of room codes change if you offer a military discount or a
weekend package including breakfast? Right Ans - Yes
If a hotel writes a contract with LRA (last room availability), the property is
required to Right Ans - apply the contractually agreed upon rate to ROH
when the guest makes their reservation
Which of the following terms best describes a theme park's pricing strategy
wherein a single, all-inclusive admission price that the guest purchases
includes admission ticket to the theme park as well as for rides, shows and
other attractions? Right Ans - Pay one pricing
Walt Disney's single entrance concept was unique, but intentional. Which of
the following is NOT supported by a single entrance concept? Right Ans -
guest flexibility to immediately access a particular area of the park
Which of the following pricing strategies reduce operational expenses for
theme park operators by eliminating the need to dedicate staff to sell and
collect tickets throughout the theme park? Right Ans - pay one pricing
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