CRME- Certified Revenue Management Executive Exam Bundle Graded A+

ADR - ANSWER-Actual room revenue / total rooms sold ADR index - ANSWER-A measure of one hotel's performance based on a comp set. Amortization - ANSWER-An accounting term that refers to the process of allocating the cost of an asset Ancillary revenue - ANSWER-A client's commitment to pay f...

Chapter 6 - ANSWER- Donna is a hotel revenue manager preparing next year's rooms forecast. Donna knows that in November of next year a new hotel is opening near her own. As a result, she is considering reducing her rooms forecast for that month. If she does so, what data type will she be primari...

4 P's that ensure you have an accurate competitive set - ANSWER-1) Product (number of rooms, open date, hotel type, meeting space, amenities) 2) Proximity (distance, market and tract, location) 3) Pricing (scale, class) 4) Participation (monthly, daily, segmentation, additional revenue) ...

Pace of build refers to: a) How quickly new hotel rooms and new hotels are being added to a comp set's total supply b)The rate at which reservations are being made for a future date c)How quickly the demand for substitute products is reducing demand for hotel rooms d)The speed with which curr...

Room night - ANSWER-The single night's use of a guest room. For example, one room sold for three consecutive nights yields three room nights. RMs are forced to implement one of three income-management alternatives when demand for their products is high - ANSWER-1.Establish one fixed price, then...

Revenue - ANSWER-The total amount of sales achieved in a specified time period Revenue is calculate as: - ANSWER-Number of Units Sold x Unit Price Effective managers of an organization's revenues MUST do three things - ANSWER-1. Understand the importance of revenue management 2. Understand ...

What is bigger in the tourism industry, fixed costs or variable costs? - ANSWER-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 ...

revenue - ANSWER-the total amount of sales achieved a specified time period Revenue formula - ANSWER-number of sales x price per unit Revenue Managers must do 3 things - ANSWER-1. understand the importance of revenue mgt 2. understand the many complex factors 3. become better at making rev...

Top 10 Revenue Management Mistakes - ANSWER-#1)Believing that discounting is an effective way to increase revenue. #2)Believing the right price to charge for a room night is established solely on the hotel's costs and ROI expectation. #3)Thinking that artificial intelligence - revenue management ...

Demand (consumer) - ANSWER-The number of potential buyers with the interest and ability to purchase the products sold by a business at the specific price offered. Capital Improvement - ANSWER-An addition to a property that will enhance its value or increase its useful life. Examples; roof replace...

Rooms Inventory - ANSWER-All of the unique forms of guest room products offered for sale by a lodging facility. DD Room - ANSWER-The common CRS and PMS code for a guest room containing two full-sized (double or queen) beds Close Out - ANSWER-to remove from sale or to stop selling Room Code ...

Revenue management is a set of revenue maximization strategies and tactics that - ANSWER-can be used to improve the profitability of certain businesses. When the American Airlines CEO developed yield management, what type of information was crucial to its success? - ANSWER-forecasting Which of...

Goods-producing industries - ANSWER-agriculture ,mining, manufacturing, and construction; each of them creates some kind of tangible object Service industries - ANSWER-Those businesses that primarily sell their customers intangible goods. Revenue optimization strategies and tactics can be used...

Occupancy - ANSWER-The percentage of rooms occupied during a given period of time. Average Daily Rate (ADR) - ANSWER-The average rate sold during a given period of time. Revenue Per Available Room (RevPAR) - ANSWER-A metric calculated by multiplying the occupancy percentage by the ADR RevPA...