REVENUE MANAGEMENT FINAL EXAM
PRACTICE QUESTIONS WITH 100%
CORRECT ANSWERS { GRADED A+}
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
PRACTICE QUESTIONS WITH 100%
CORRECT ANSWERS { GRADED A+}
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
