Hospitality Revenue Management Final
Exam Review 2024 Questions & Answers
| 100% Correct | Verified
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
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 a 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) - ✔✔RevPASH formula
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? - ✔✔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? - ✔✔value 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 for the 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 higher
than the previous price (P1) and supply would increase
What concept is displayed by the intersecting point on a supply and demand curve? - ✔✔An estimate of
the amount of a product that would be purchased at a known price and point in time
What must be true if a product producer is to continue creating and selling products? - ✔✔Revenues
must exceed costs
Exam Review 2024 Questions & Answers
| 100% Correct | Verified
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
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 a 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) - ✔✔RevPASH formula
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? - ✔✔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? - ✔✔value 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 for the 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 higher
than the previous price (P1) and supply would increase
What concept is displayed by the intersecting point on a supply and demand curve? - ✔✔An estimate of
the amount of a product that would be purchased at a known price and point in time
What must be true if a product producer is to continue creating and selling products? - ✔✔Revenues
must exceed costs
