Hospitality Revenue Management Final Exam Review/ 196 Quizzes & Ans.
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Module
Hospitality Revenue Management
Institution
Hospitality Revenue Management
Hospitality Revenue Management Final Exam Review/ 196 Quizzes & Ans.
What is the industry term used to describe the sum of prices paid by a business's customers? - Answer: total revenues
Historically, what concept have hospitality managers chiefly used to calculate their selling prices? - An...
Hospitality Revenue Management Final Exam
Review/ 196 Quizzes & Ans.
What is the industry term used to describe the sum of prices paid by a business's customers? -
Answer: total revenues
Historically, what concept have hospitality managers chiefly used to calculate their selling
prices? - Answer: costs
What is an algebraic equivalent of the formula: Sales = Costs + Profit? - Answer: profit=sales-
costs
What is the name for the net value achieved by both parties in a business transaction? -
Answer: profit
What element is not present in a barter economy? - Answer: money
Page 1 of 25
,What is the formula used to calculate an owner's ROI? - Answer: Owner's Investment Return /
Owner's Original Investment = Owner's Return on Investment
Sandy has 100 hotel rooms to sell. This Saturday night has enough customers to sell 125 rooms
so she will be refusing 25 requests for rooms. What is this an example of? - Answer: constrained
supply
Which industry was the first to use Yield Management principles? - Answer: airline
What is the industry term used to describe the selling of rooms which are not actually available
for sale? - Answer: overbooking
What is the formula used to calculate Average Daily Rate? - Answer: Total Room's Revenue /
Total Rooms Sold = Average Daily Rate
Tashia's hotel sold 175 rooms last night at an ADR of $200.00. Her hotel has 250 rooms. What
was Tashia's occupancy % last night? - Answer: 70%
Tashia's hotel sold 175 rooms last night at an ADR of $200.00. Her hotel has 250 rooms. What
was Tashia's RevPAR last night? - Answer: $140
What is the industry term for the average revenue generated by each occupied guestroom
during a defined period of time? - Answer: RevPOR
What is the formula used to calculate GOPPAR? - Answer: (Total Revenue - Management
Controllable Expenses) / Rooms Available to Sell = GOPPAR
What is the industry term for a customer group which can be readily identified by one or more
common characteristics? - Answer: market segment
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, What is a rack rate? - Answer: The price of rooms when no discounts of any type are offered
What is:
Total period revenue
(Number of available seats) x (hours of seat availability) - Answer: RevPASH formula
What is the term used to identify a management philosophy that places customer gain ahead of
short-term revenue maximization in revenue management decision making? - Answer:
Customer-centric revenue management
What is the term used to describe the potential customers to whom a business's marketing
activities and messages are directed? - Answer: target market
What is the term used to describe efforts undertaken to encourage travel and tourism to a
specific geographic area or attraction? - Answer: destination marketing
What is the name for the value given up by a buyer and a seller in a business transaction? -
Answer: price
Charging guests for watching a "Pay-Per-View" movie in their hotel guestroom is an example of
what type of pricing? - Answer: two-tiered pricing
What is the fundamental assumption upon which the concept of consumer rationality is based?
- Answer: Buyers act in ways that are of personal benefit to them
What is the revenue management term used to describe the perceived benefit gained, minus
the price paid, in a business transaction? - Answer: value
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