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Revenue Management Final Exam Practice Questions with Correct verified Answers
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Revenue Management Final Exam Practice Questions with Correct verified Answers
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Revenue Management Final exampractice questions
What is bigger in the tourism industry, fixed costs or variable costs? - Question and
answersfixed 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 reduce prices (even below total cost per room), as long as the
reduced price covers, fixed cost per room or variable cost per room? - Question and
answersWe can reduce prices as long as the reduced price covers the variable cost per
room
-because we are going to have the fixed costs not matter if we have the person in the
room or not
High Value Customers tend to book early or last? - Question and answerslast
Do we sell "time blocks" or "physical products"? - Question and answerstime blocks
What implication do time blocks have? - Question and answerswe cannot store it for
tomorrow, it is gone once it is not sold for that day
"I want my hotel to be the first to sell out in the market": Correct or incorrect? - Question
and answersincorrect
RM can be organized with different levels regarding the people involved. How many?
Which ones? - Question and answersProperty Level - Corporate Level - 3rd Party
Services
What does a booking curve represent? - Question and answersthe expected number of
bookings for each day until the arrival date
-forecasted bookings
What does a pace report track? - Question and answersThe OTB reservations against
the forescasted reservations
Who attends the weekly RM meetings? - Question and answers-Revenue manager
-General manager
Sales manager
-Rooms manager
***and sometimes
-Food and Beverage management
-Marketing
, -HR management
How many internal performance indicators do we have? - Question and answers6: OR,
ADR, RevPar, and the percent changes of each of them
How many external performance indicators do we have? - Question and answers6: OR
index, ADR index, RevPar index, and the percent
changes of each of them
What is the minimum number of hotels in a comp set? - Question and answers4
What is the threshold in the OR, ADR and RevPar indexes that determines the point we
are outperforming the comp set? - Question and answers100
Price from a marketing standpoint includes both monetary and
________________costs - Question and answersnon‐monetary
price - Question and answersThe amount of money charged for a good or service.
BAR and BRG - Question and answersThe hotel makes a promise that the room prices
found on their website are the best rates compared to any other sites.
Example of BAR guarantee? - Question and answersIf you found a better rate then you
will get that rate plus some additional discount (within 24 hours of making the
reservation) in PA
Who requires whom to sign a rate parity agreement? - Question and answersOTA
In what type of rates are the "Last Room Available Agreements" signed? - Question and
answersCorporate
Consumer reference prices: what is bigger, the increase in demand derived from
reducing a rate by $100 or the decrease in demand resulting from augmenting a rate by
$100? - Question and answersthe decrease in demand resulting from augmenting a
rate by $100
-because it is more impactful
What is more appealing to hotel guests: a discount of $10 in three supplementary
products (total savings are $30), or a discount of $30 in just one supplementary product
so that it becomes free? - Question and answersa discount of $30 in just one
supplementary product so that it becomes free
-Discount in just one supplementary product so that it becomes free is more appealing
to a guest
Rate portfolio - Question and answersThe matrix of available rates by forecasted
occupancy
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