Exam (elaborations)
Revenue management final (3).
Revenue management final (3).
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Revenue Management FinalIf a 300-room hotel achieves 70 percent occupancy for April at an ADR of $153 per
room, what will room revenue equal? - ANS- $963,900
in January, the 200-room snowbound inn ran a skiers special that resulted in them
selling 5,735 rooms during the month. What was the occupancy percentage for the
month? - ANS- 92.5% (room nights sold/ room nights avail x 100)
Which is not a positive of using revenue management strategies and tactics? - ANS-
motivate employees
what is the main reason that travelers today have more clout than ever before - ANS-
they have information on virtually everything at their fingertips
revenue management can be defined as - ANS- A set of strategies and techniques used
to sell the right product, to the right customer, at the right time and at the right prices.
revenue management includes a multidisciplinary management techniques applied over
several sub-sectors of hospitality. What is not one discipline within RM? - ANS- logistics
management
t/f A benefit of variable pricing within revenue management is the smoothing of demand.
- ANS- true
which statement about hotel revenue management is false - ANS- revenue
management is new, as are all of the strategies that are employed to maximize profit
To interpret measures of a hotel's performance, managers often compare those
measures with: - ANS- historical figures, budget for period, industry averages
revenue management is not necessarily about - ANS- achieving 100% occupancy and a
perfect science
When might a revenue manager choose without questions to accept a less profitable
group booking over more profitable transient business? - ANS- the group is a regular
customer of the hotel or a key account group from your comp set
, what information is needed to calculate a net room rate? - ANS- room rate, variable
costs, and all costs and fees that apply to the booking
displacement analysis can determine the quantifiable benefits of different options.
However it needs to have the right circumstances. When is it appropriate? - ANS- when
a reliable forecast indicates that there's more demand than our capacity, it will be a
period of high demand
displacement analysis is an RM decision making tool with a 4 step process: 1. ___ 2.
establish the net food and bev revenue differential 3. determine other revenue 4.
summarize- what is step 1? - ANS- establish net room revenue differential
a displacement analysis should be conducted - ANS- when accepting a group booking
will mean turning other business away.
in displacement analysis, if a possible group reservation will bring $3,850 in rooms
revenue but according to your forecast you expect to impact your future avail. by
displacing 33 transient demand rooms at $100/night, would you be inclined to accept or
deny this reservation? - ANS- based only on these numbers i would accept this
reservation
which is a step in the displacement analysis process? - ANS- establish net room
revenue differential
an individual traveling, dining, attending performance, or staying alone is referred to as -
ANS- transient
In a property forecasted high period of demand period, if the RM displacement analysis
shows that by accepting a certain group the overall net revenue gain is positive (more
revenues than the costs of displacement transient demand in the future), increasing
profitability, than its Sales or Reservations departments should be inclined to: - ANS-
accept the group reservation
why does Forgacs mention in regards to displacement, that the numeric results of the
analysis should not be the only criteria for the decision? - ANS- because rather than a
quick tactical interpretation of the numbers, one should consider other critical
information like existing competitor key account
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