Revenue Management Final Exam| Practice Questions With Verified Solutions 2024

Revenue Management Final Exam| Practice Questions With Verified Solutions 2024 Revenue Correct Answer The total number of sales achieved in a specific time period. Calculated as: # of units x unit price= Revenue Accountants Profit Formula Correct Answer Sales= Cost + Profit (Profit= Revenue- Expenses) Profit Correct Answer The net value achieved by a seller and a buyer in a business transaction ROI (Return on Investment) Correct Answer ROI= Owners Investment Return / Owners Original Investment Revenue Manager Correct Answer The individual or team responsible for ensuring that a company prices match a customers willingness to pay Customer-Centric Revenue Management Correct Answer A revenue management philosophy that places customer gain ahead of short-term revenue maximization in revenue management decision making ADR- Average Daily Rate Correct Answer ADR= Total room revenue / Total Rooms sold Occupancy Percentage Correct Answer Total Rooms sold / total rooms available for sale RevPAR Correct Answer ADR x Occupancy % OR Total Revenue/ Total rooms available for sale Single best measure of revenue management RevPOR Correct Answer Total Revenue/ Total occupied room does not consider the number of rooms sold. In most cases, a hotel that operates with a