Exam (elaborations)
Revenue Management Final Exam – Questions And Answers (100% Accurate)
- Course
- Institution
Revenue Management Final Exam – Questions And Answers (100% Accurate)
[Show more]
Seller
Follow
LeCrae
Reviews received
Content preview
Revenue Management Final Exam – Questions AndAnswers (100% Accurate)
What is bigger in the tourism industry, fixed costs or variable costs? Right
Ans - 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 reduce prices (even below total cost per room), as long as the
reduced price covers, fixed cost per room or variable cost per room? Right
Ans - We 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? Right Ans - last
Do we sell "time blocks" or "physical products"? Right Ans - time blocks
What implication do time blocks have? Right Ans - we 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?
Right Ans - incorrect
RM can be organized with different levels regarding the people involved. How
many? Which ones? Right Ans - Property Level - Corporate Level - 3rd
Party Services
What does a booking curve represent? Right Ans - the expected number of
bookings for each day until the arrival date
-forecasted bookings
What does a pace report track? Right Ans - The OTB reservations against
the forescasted reservations
Who attends the weekly RM meetings? Right Ans - -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? Right Ans - 6: OR,
ADR, RevPar, and the percent changes of each of them
How many external performance indicators do we have? Right Ans - 6: 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? Right Ans - 4
What is the threshold in the OR, ADR and RevPar indexes that determines the
point we are outperforming the comp set? Right Ans - 100
Price from a marketing standpoint includes both monetary and
________________costs Right Ans - non‐monetary
price Right Ans - The amount of money charged for a good or service.
BAR and BRG Right Ans - The 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? Right Ans - If 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? Right Ans - OTA
In what type of rates are the "Last Room Available Agreements" signed?
Right Ans - Corporate
Consumer reference prices: what is bigger, the increase in demand derived
from reducing a rate by $100 or the decrease in demand resulting from
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller LeCrae. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
72964 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now