Revenue Management Final exam
practice questions
What is bigger in the tourism industry, fixed costs or variable costs?
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?
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?
last
Do we sell "time blocks" or "physical products"?
time blocks
,What implication do time blocks have?
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?
incorrect
RM can be organized with different levels regarding the people involved. How many? Which
ones?
Property Level - Corporate Level - 3rd Party Services
What does a booking curve represent?
the expected number of bookings for each day until the arrival date
-forecasted bookings
What does a pace report track?
The OTB reservations against the forescasted reservations
, Who attends the weekly RM meetings?
-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?
6: OR, ADR, RevPar, and the percent changes of each of them
How many external performance indicators do we have?
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?
practice questions
What is bigger in the tourism industry, fixed costs or variable costs?
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?
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?
last
Do we sell "time blocks" or "physical products"?
time blocks
,What implication do time blocks have?
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?
incorrect
RM can be organized with different levels regarding the people involved. How many? Which
ones?
Property Level - Corporate Level - 3rd Party Services
What does a booking curve represent?
the expected number of bookings for each day until the arrival date
-forecasted bookings
What does a pace report track?
The OTB reservations against the forescasted reservations
, Who attends the weekly RM meetings?
-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?
6: OR, ADR, RevPar, and the percent changes of each of them
How many external performance indicators do we have?
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?
