HOSPITALITY REVENUE MANAGEMENT FINAL EXAM
LATEST 2024 ACTUAL EXAM 300+ QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A+
All except one of the following pricing systems are marketing-based. Which one is
not an example of marketing-based pricing? - ANSWER--Return on Investment
ROI pricing
What is the term used to describe a pricing system in which all customers are
charged the same price at all times? - ANSWER--fixed pricing
What is true for franchised hotel operations in the United States? - ANSWER--
their prices are established by the hotel owners
What is the economic term used to describe the difference between what a
consumer is charged for a product or service and the price that consumer would
willingly pay for it? - ANSWER--consumer surplus
What is the relationship between differential pricing and consumer surplus? -
ANSWER--Differential pricing is a strategy used by sellers to minimize consumer
surplus
Which course of action would be most beneficial to the profit generating ability of
a revenue manager's business? - ANSWER--the majority of any consumer surplus
is captured by the business
Hottickets.com is a web-based business that buys popular concert tickets in bulk. It
buys the tickets at a low price because it qualifies for group ticket discounts
offered by concert promoters. Hotticket.com then marks up and immediately
resells the tickets it has purchased to interested individuals who visit the Hotticket
, HOSPITALITY REVENUE MANAGEMENT FINAL EXAM
LATEST 2024 ACTUAL EXAM 300+ QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A+
website. What is the name of the activity Hottickets.com is engaging in? -
ANSWER--arbitrage
What is the purpose of a price fence or barrier? - ANSWER--to identify who is and
who is not eligible for a special pricing offer
Which differential pricing strategy would in most cases be illegal or unethical if
implemented? - ANSWER--pricing based on the ethnicity of the buyer
The use of a formal customer rewards program is an example of what type of
differential pricing strategy? - ANSWER--pricing based on customer characteristic
The requirement that a buyer present a coupon at the time of purchase is an
example of what type differential pricing strategy? - ANSWER--pricing based on
customer characteristic
The premium prices charged for dinner served at the restaurant Le Jules Vernes on
the second level of the Eifel Tower in Paris, France can be attributed, in part, to
which type of differential pricing strategy? - ANSWER--pricing based on location
A business hotel's promotion targeting local area residence and designed to offer
them significantly reduced room rates on Sunday nights is an example of which
type of differential pricing strategy? - ANSWER--pricing based on time
, HOSPITALITY REVENUE MANAGEMENT FINAL EXAM
LATEST 2024 ACTUAL EXAM 300+ QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A+
Which statement about high volume buyers in the hospitality industry is true? -
ANSWER--The per-unit cost of selling to them is less than the cost associated with
low
volume buyers
Offering reduced room rates only to those room buyers willing to book their
reservations via an internet website is an example of which type of differential
pricing strategy? - ANSWER--pricing based on distribution channel
What is the formula revenue managers use to calculate Net ADR Yield? -
ANSWER--Net Room Rate/
Standard ADR = Net ADR Yield
Offering guests the opportunity to purchase a sandwich, fries and a soft drink at a
price lower than that which would be charged for those same items purchased
separately is an example of which type of differential pricing strategy? -
ANSWER--pricing based on bundling
Which statement about revenue management and revenue optimization is true? -
ANSWER--Revenue management seeks to maximize income while revenue
optimization seeks to maximize long-term profits
Alice is the revenue manager at the Granger hotel. A large volume customer wants
a price quote from Alice on 50 rooms per week for the next 52 weeks. Each room
would be rented for two days at a time. How many room nights will Alice be
quoting on? - ANSWER--5200
, HOSPITALITY REVENUE MANAGEMENT FINAL EXAM
LATEST 2024 ACTUAL EXAM 300+ QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A+
Hotel revenue managers face hard supply constraints. In which industry below are
hard constraints also likely to be encountered? - ANSWER--hair salons
Lisa is the revenue manager of a 500 room hotel property. Next week-end demand
for her rooms will exceed the number of rooms she has available for sale. Which
high demand pricing strategy will optimize revenue for her property? - ANSWER--
Implement a differential pricing strategy and allocate the limited supply to those
market segments who value the rooms most highly
What two factors establish a restaurant's weekly customer capacity? - ANSWER--
Number of seats and number of hours open per week
What is the name for the laws and regulations aimed at preventing abusive
business behavior or anti-competitive practices? - ANSWER--anti-trust legislation
What is the name used to describe a consortium of independent organizations
formed to limit competition by controlling the production, distribution and pricing
of a product or service? - ANSWER--cartel
What is the name of the US legislation that outlawed all contracts and conspiracies
that unreasonably restrain interstate trade? - ANSWER--sherman antitrust act
What is the name of the US legislation that prohibits competing hospitality
managers from meeting to agree upon the room prices that will be charged for
upcoming events or charged to specific groups of customers? - ANSWER--
sherman antitrust act
LATEST 2024 ACTUAL EXAM 300+ QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A+
All except one of the following pricing systems are marketing-based. Which one is
not an example of marketing-based pricing? - ANSWER--Return on Investment
ROI pricing
What is the term used to describe a pricing system in which all customers are
charged the same price at all times? - ANSWER--fixed pricing
What is true for franchised hotel operations in the United States? - ANSWER--
their prices are established by the hotel owners
What is the economic term used to describe the difference between what a
consumer is charged for a product or service and the price that consumer would
willingly pay for it? - ANSWER--consumer surplus
What is the relationship between differential pricing and consumer surplus? -
ANSWER--Differential pricing is a strategy used by sellers to minimize consumer
surplus
Which course of action would be most beneficial to the profit generating ability of
a revenue manager's business? - ANSWER--the majority of any consumer surplus
is captured by the business
Hottickets.com is a web-based business that buys popular concert tickets in bulk. It
buys the tickets at a low price because it qualifies for group ticket discounts
offered by concert promoters. Hotticket.com then marks up and immediately
resells the tickets it has purchased to interested individuals who visit the Hotticket
, HOSPITALITY REVENUE MANAGEMENT FINAL EXAM
LATEST 2024 ACTUAL EXAM 300+ QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A+
website. What is the name of the activity Hottickets.com is engaging in? -
ANSWER--arbitrage
What is the purpose of a price fence or barrier? - ANSWER--to identify who is and
who is not eligible for a special pricing offer
Which differential pricing strategy would in most cases be illegal or unethical if
implemented? - ANSWER--pricing based on the ethnicity of the buyer
The use of a formal customer rewards program is an example of what type of
differential pricing strategy? - ANSWER--pricing based on customer characteristic
The requirement that a buyer present a coupon at the time of purchase is an
example of what type differential pricing strategy? - ANSWER--pricing based on
customer characteristic
The premium prices charged for dinner served at the restaurant Le Jules Vernes on
the second level of the Eifel Tower in Paris, France can be attributed, in part, to
which type of differential pricing strategy? - ANSWER--pricing based on location
A business hotel's promotion targeting local area residence and designed to offer
them significantly reduced room rates on Sunday nights is an example of which
type of differential pricing strategy? - ANSWER--pricing based on time
, HOSPITALITY REVENUE MANAGEMENT FINAL EXAM
LATEST 2024 ACTUAL EXAM 300+ QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A+
Which statement about high volume buyers in the hospitality industry is true? -
ANSWER--The per-unit cost of selling to them is less than the cost associated with
low
volume buyers
Offering reduced room rates only to those room buyers willing to book their
reservations via an internet website is an example of which type of differential
pricing strategy? - ANSWER--pricing based on distribution channel
What is the formula revenue managers use to calculate Net ADR Yield? -
ANSWER--Net Room Rate/
Standard ADR = Net ADR Yield
Offering guests the opportunity to purchase a sandwich, fries and a soft drink at a
price lower than that which would be charged for those same items purchased
separately is an example of which type of differential pricing strategy? -
ANSWER--pricing based on bundling
Which statement about revenue management and revenue optimization is true? -
ANSWER--Revenue management seeks to maximize income while revenue
optimization seeks to maximize long-term profits
Alice is the revenue manager at the Granger hotel. A large volume customer wants
a price quote from Alice on 50 rooms per week for the next 52 weeks. Each room
would be rented for two days at a time. How many room nights will Alice be
quoting on? - ANSWER--5200
, HOSPITALITY REVENUE MANAGEMENT FINAL EXAM
LATEST 2024 ACTUAL EXAM 300+ QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A+
Hotel revenue managers face hard supply constraints. In which industry below are
hard constraints also likely to be encountered? - ANSWER--hair salons
Lisa is the revenue manager of a 500 room hotel property. Next week-end demand
for her rooms will exceed the number of rooms she has available for sale. Which
high demand pricing strategy will optimize revenue for her property? - ANSWER--
Implement a differential pricing strategy and allocate the limited supply to those
market segments who value the rooms most highly
What two factors establish a restaurant's weekly customer capacity? - ANSWER--
Number of seats and number of hours open per week
What is the name for the laws and regulations aimed at preventing abusive
business behavior or anti-competitive practices? - ANSWER--anti-trust legislation
What is the name used to describe a consortium of independent organizations
formed to limit competition by controlling the production, distribution and pricing
of a product or service? - ANSWER--cartel
What is the name of the US legislation that outlawed all contracts and conspiracies
that unreasonably restrain interstate trade? - ANSWER--sherman antitrust act
What is the name of the US legislation that prohibits competing hospitality
managers from meeting to agree upon the room prices that will be charged for
upcoming events or charged to specific groups of customers? - ANSWER--
sherman antitrust act
