Revenue Management Final Exam Practice Questions With Correct Solution Expert Verified 2024

Revenue Management Final Exam Practice Questions With Correct Solution Expert Verified 2024 What is bigger in the tourism industry, fixed costs or variable costs? Correct Answer 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? Correct Answer 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? Correct Answer last Do we sell "time blocks" or "physical products"? Correct Answer time blocks What implication do time blocks have? Correct Answer 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? Correct Answer incorrect RM can be organized with different levels regarding the people involved. How many? Which ones? Correct Answer Property Level - Corporate Level - 3rd Party Services What does a booking curve represent? Correct Answer the expected number of bookings for each day until the arrival date -forecasted bookings What does a pace report track? Correct Answer The OTB reservations against the forescasted reservations