Hospitality Revenue Management Exam Guide with Correct Answers

Revenue management is the act of directing sources of income within the confines of - Answer-capacity, supply and demand GOPPAR takes into account which of the following variables that is not considered in RevPAR? - Answer-Controllable expenses Name revenue optimization strategies - Answer-Market segmentation, Duration control , BAR (Best Available Rate) Legoherel, Poutier, & Fyall point out that revenue optimization is not only about product versioning, distribution channel selection, and pricing, but also - Answer-careful selection of the most profitable customers The net value achieved by a seller and a buyer in a business transaction - Answer-Profit A Barter System is a - Answer-Trading system in which goods and services are exchanged without the use of money. The area of study concerned with the production, consumption, and transfer of wealth is called - Answer-Economics The purpose of successful hospitality businesses is to - Answer-Provide profits to its customers and increase their wealth. The individual or team responsible for ensuring that a company's prices match a customer's willingness to pay. - Answer-Revenue Manager(s) A revenue management philosophy that places customer gain ahead of short term revenue maximization in revenue management decision making is called - Answer-Customer-Centric Revenue Management A source of business customers or vehicle used to communicate with a source of customers is called a - Answer-Channel/Distribution Channel Constrained Supply is the condition that exists when - Answer-Sellers cannot readily increase the amount of products or services available for sale when consumer demand for them increases What is the difference between a Hard Constraint and a Soft Constraint? - Answer-Hard Constraint: a supply constraint that cannot be removed, regardless of product demand. Ex: hotel rooms, capacity of natural gas pipelines