HOSPITALITY REVENUE MANAGEMENT FINAL EXAM
QUESTIONS COMPLETE WITH CORRECT ANSWERS
\.What is the industry term used to describe the sum of prices paid by a business's customers? -
ANSWERS✔-total revenues
\.Historically, what concept have hospitality managers chiefly used to calculate their selling
prices? - ANSWERS✔-costs
\.What is an algebraic equivalent of the formula: Sales = Costs + Profit? - ANSWERS✔-
profit=sales-costs
\.What is the name for the net value achieved by both parties in a business transaction? -
ANSWERS✔-profit
\.What element is not present in a barter economy? - ANSWERS✔-money
\.What is the formula used to calculate an owner's ROI? - ANSWERS✔-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? - ANSWERS✔-
constrained supply
\.Which industry was the first to use Yield Management principles? - ANSWERS✔-airline
,\.What is the industry term used to describe the selling of rooms which are not actually
available for sale? - ANSWERS✔-overbooking
\.What is the formula used to calculate Average Daily Rate? - ANSWERS✔-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? - ANSWERS✔-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? - ANSWERS✔-$140
\.What is the industry term for the average revenue generated by each occupied guestroom
during a defined period of time? - ANSWERS✔-RevPOR
\.What is the formula used to calculate GOPPAR? - ANSWERS✔-(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? - ANSWERS✔-market segment
\.What is a rack rate? - ANSWERS✔-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) - ANSWERS✔-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? - ANSWERS✔-
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? - ANSWERS✔-target market
\.What is the term used to describe efforts undertaken to encourage travel and tourism to a
specific geographic area or attraction? - ANSWERS✔-destination marketing
\.What is the name for the value given up by a buyer and a seller in a business transaction? -
ANSWERS✔-price
\.Charging guests for watching a "Pay-Per-View" movie in their hotel guestroom is an example of
what type of pricing? - ANSWERS✔-two-tiered pricing
\.What is the fundamental assumption upon which the concept of consumer rationality is
based? - ANSWERS✔-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? - ANSWERS✔-value
\.What is created when a seller communicates to a buyer a description of a product to be sold
and the price at which that product will be sold? - ANSWERS✔-value proposition
\.Which of the following terms would be included in the Place portion of a hotel's marketing
mix? - ANSWERS✔-distribution channels
QUESTIONS COMPLETE WITH CORRECT ANSWERS
\.What is the industry term used to describe the sum of prices paid by a business's customers? -
ANSWERS✔-total revenues
\.Historically, what concept have hospitality managers chiefly used to calculate their selling
prices? - ANSWERS✔-costs
\.What is an algebraic equivalent of the formula: Sales = Costs + Profit? - ANSWERS✔-
profit=sales-costs
\.What is the name for the net value achieved by both parties in a business transaction? -
ANSWERS✔-profit
\.What element is not present in a barter economy? - ANSWERS✔-money
\.What is the formula used to calculate an owner's ROI? - ANSWERS✔-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? - ANSWERS✔-
constrained supply
\.Which industry was the first to use Yield Management principles? - ANSWERS✔-airline
,\.What is the industry term used to describe the selling of rooms which are not actually
available for sale? - ANSWERS✔-overbooking
\.What is the formula used to calculate Average Daily Rate? - ANSWERS✔-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? - ANSWERS✔-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? - ANSWERS✔-$140
\.What is the industry term for the average revenue generated by each occupied guestroom
during a defined period of time? - ANSWERS✔-RevPOR
\.What is the formula used to calculate GOPPAR? - ANSWERS✔-(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? - ANSWERS✔-market segment
\.What is a rack rate? - ANSWERS✔-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) - ANSWERS✔-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? - ANSWERS✔-
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? - ANSWERS✔-target market
\.What is the term used to describe efforts undertaken to encourage travel and tourism to a
specific geographic area or attraction? - ANSWERS✔-destination marketing
\.What is the name for the value given up by a buyer and a seller in a business transaction? -
ANSWERS✔-price
\.Charging guests for watching a "Pay-Per-View" movie in their hotel guestroom is an example of
what type of pricing? - ANSWERS✔-two-tiered pricing
\.What is the fundamental assumption upon which the concept of consumer rationality is
based? - ANSWERS✔-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? - ANSWERS✔-value
\.What is created when a seller communicates to a buyer a description of a product to be sold
and the price at which that product will be sold? - ANSWERS✔-value proposition
\.Which of the following terms would be included in the Place portion of a hotel's marketing
mix? - ANSWERS✔-distribution channels
