Revenue Management Final Exam /
180 Questions with 100% Answers.
What is the industry term used to describe the sum of prices paid
by a business's customers? - -Total Revenues
-Historically, what concept have hospitality managers chiefly
used to calculate their selling prices? - -Costs
-What is an algebraic equivalent of the formula: Sales = Costs +
Profit? - -Profit = Sales - Costs
-What is the name for the net value achieved by both parties in a
business transaction? - -Profit
-What element is not present in a barter economy? - -Money
-What is the formula used to calculate an owner's ROI? - -
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? - -Constrained
Supply
-Which industry was the first to use Yield Management principles?
- -Airline
-What is the industry term used to describe the selling of rooms
which are not actually available for sale? - -Overbooking
-What is the formula used to calculate Average Daily Rate? - -
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? - -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? -
-$140.00
-What is the industry term for the average revenue generated by
each occupied guestroom during a defined period of time? - -
RevPOR
-What is the formula used to calculate GOPPAR? - -(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? - -
Market Segment
-What is rack rate? - -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) - -The
formula for RevPASH
-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? - -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? - -The target market
-What is the term used to describe efforts undertaken to
encourage travel and tourism to a specific geographic area or
attraction? - -Destination Marketing
, -What is the name for the value given up by a buyer and a seller
in a business transaction? - -Price
-Charging guests for watching a "Pay-Per-View" movie in their
hotel guestroom is an example of what type of pricing? - -Two-
tiered pricing
-What is the fundamental assumption upon which the concept of
consumer rationality is based? - -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? - -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? - -A value proposition
-Which one of the following terms is not one of the 4 Ps of the
Marketing Mix? - -Proposition
-Which of the following terms would be included in the Place
portion of a hotel's marketing mix? - -Distribution Channels
-What is the fundamental assumption upon which the Law of
Supply is based? - -The higher the demand for a product the
more of it will be produced by sellers
-According to Alfred Marshall's work, if the price of a product is
lower than the natural, or equilibrium price, what will happen? - -
The demand fort he product would exceed its supply
-Assume an equilibrium price (P1) is in place for a product. What
would the law of supply and demand predict as an outcome if
demand for that product increased? - -The new price (P2) would
be lower than the previous price (P1) because supply would
decrease
180 Questions with 100% Answers.
What is the industry term used to describe the sum of prices paid
by a business's customers? - -Total Revenues
-Historically, what concept have hospitality managers chiefly
used to calculate their selling prices? - -Costs
-What is an algebraic equivalent of the formula: Sales = Costs +
Profit? - -Profit = Sales - Costs
-What is the name for the net value achieved by both parties in a
business transaction? - -Profit
-What element is not present in a barter economy? - -Money
-What is the formula used to calculate an owner's ROI? - -
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? - -Constrained
Supply
-Which industry was the first to use Yield Management principles?
- -Airline
-What is the industry term used to describe the selling of rooms
which are not actually available for sale? - -Overbooking
-What is the formula used to calculate Average Daily Rate? - -
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? - -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? -
-$140.00
-What is the industry term for the average revenue generated by
each occupied guestroom during a defined period of time? - -
RevPOR
-What is the formula used to calculate GOPPAR? - -(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? - -
Market Segment
-What is rack rate? - -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) - -The
formula for RevPASH
-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? - -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? - -The target market
-What is the term used to describe efforts undertaken to
encourage travel and tourism to a specific geographic area or
attraction? - -Destination Marketing
, -What is the name for the value given up by a buyer and a seller
in a business transaction? - -Price
-Charging guests for watching a "Pay-Per-View" movie in their
hotel guestroom is an example of what type of pricing? - -Two-
tiered pricing
-What is the fundamental assumption upon which the concept of
consumer rationality is based? - -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? - -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? - -A value proposition
-Which one of the following terms is not one of the 4 Ps of the
Marketing Mix? - -Proposition
-Which of the following terms would be included in the Place
portion of a hotel's marketing mix? - -Distribution Channels
-What is the fundamental assumption upon which the Law of
Supply is based? - -The higher the demand for a product the
more of it will be produced by sellers
-According to Alfred Marshall's work, if the price of a product is
lower than the natural, or equilibrium price, what will happen? - -
The demand fort he product would exceed its supply
-Assume an equilibrium price (P1) is in place for a product. What
would the law of supply and demand predict as an outcome if
demand for that product increased? - -The new price (P2) would
be lower than the previous price (P1) because supply would
decrease
