Revenue management final
ADR formula - ANS- Total Rooms Revenue / Total Rooms Sold
Value proposition - ANS- 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
Owners ROI formula - ANS- Owners Investment Return/ Owner's Original Investment
Profit - ANS- net value achieved by both parties in a business transaction
GOPAR formula - ANS- Total revenue - Management Controllable Expenses / Rooms
Available to sell
Destination marketing - ANS- used to describe efforts undertaken to encourage travel
and tourism to a specific geographic area or attraction
What is the fundamental assumption upon which the law of supply is based? - ANS-
The higher the demand for a product, the more of it will be produced by sellers
What must be true if a product is to continue creating and selling products? - ANS-
Revenue must exceed costs
T/F: Unit costs will vary based upon how high or low an item is priced? - ANS- True
Sandy has 100 hotels 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? -
ANS- Constrained supply
What is an algebraic equivalent of the formula: Sales = Costs + Profit? - ANS- Profit =
Sales - Costs
Price - ANS- Value given up by a buyer and seller in a business transaction
Cost Accounting - ANS- the specialized branch of accounting that focuses on recording
and analyzing the expenses incurred by an organization
Rack rate - ANS- the price of rooms when no discounts of any type are offered
, RevPOR definition - ANS- average revenue generated by each occupied guests room
during a period of time
Costs - ANS- What hospitality managers used to calculate their selling price
What concept is displayed by the intersecting point on a supply and demand curve? -
ANS- An estimate of the amount of a product that will be purchased at a known price
and point in time
What element is not present in a barter economy? - ANS- Money
Total revenues - ANS- used to describe the sum of prices paid by a business's
customers
Value - ANS- perceived benefit - price
Market segment - ANS- term used to describe a customer group which can be readily
identified by one or more common characteristics
Consumer surplus - ANS- the price - the price the consumer is willing to pay
What special challenge do buyers of hospitality products such as hotel guestrooms or
restaurant meals face? - ANS- difficulty in price determination prior to purchase
If quantity and price are held constant how will reductions in product or service quality
affect buyers' perceptions of value? - ANS- perceived value will decrease
T/F: Revenue management seeks to maximize income while revenue optimization
seeks to maximize long-term profits - ANS- true
Which of the Four I's of service refers to the fact that employees such as Ahmed must
be scheduled to work anytime a service business is open and regardless of low volume
levels? - ANS- Inventory
Which one is not an example of marketing-based pricing? - ANS- ROI pricing
Net ADR yield - ANS- Net Room Rate / Standard ADR
ADR formula - ANS- Total Rooms Revenue / Total Rooms Sold
Value proposition - ANS- 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
Owners ROI formula - ANS- Owners Investment Return/ Owner's Original Investment
Profit - ANS- net value achieved by both parties in a business transaction
GOPAR formula - ANS- Total revenue - Management Controllable Expenses / Rooms
Available to sell
Destination marketing - ANS- used to describe efforts undertaken to encourage travel
and tourism to a specific geographic area or attraction
What is the fundamental assumption upon which the law of supply is based? - ANS-
The higher the demand for a product, the more of it will be produced by sellers
What must be true if a product is to continue creating and selling products? - ANS-
Revenue must exceed costs
T/F: Unit costs will vary based upon how high or low an item is priced? - ANS- True
Sandy has 100 hotels 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? -
ANS- Constrained supply
What is an algebraic equivalent of the formula: Sales = Costs + Profit? - ANS- Profit =
Sales - Costs
Price - ANS- Value given up by a buyer and seller in a business transaction
Cost Accounting - ANS- the specialized branch of accounting that focuses on recording
and analyzing the expenses incurred by an organization
Rack rate - ANS- the price of rooms when no discounts of any type are offered
, RevPOR definition - ANS- average revenue generated by each occupied guests room
during a period of time
Costs - ANS- What hospitality managers used to calculate their selling price
What concept is displayed by the intersecting point on a supply and demand curve? -
ANS- An estimate of the amount of a product that will be purchased at a known price
and point in time
What element is not present in a barter economy? - ANS- Money
Total revenues - ANS- used to describe the sum of prices paid by a business's
customers
Value - ANS- perceived benefit - price
Market segment - ANS- term used to describe a customer group which can be readily
identified by one or more common characteristics
Consumer surplus - ANS- the price - the price the consumer is willing to pay
What special challenge do buyers of hospitality products such as hotel guestrooms or
restaurant meals face? - ANS- difficulty in price determination prior to purchase
If quantity and price are held constant how will reductions in product or service quality
affect buyers' perceptions of value? - ANS- perceived value will decrease
T/F: Revenue management seeks to maximize income while revenue optimization
seeks to maximize long-term profits - ANS- true
Which of the Four I's of service refers to the fact that employees such as Ahmed must
be scheduled to work anytime a service business is open and regardless of low volume
levels? - ANS- Inventory
Which one is not an example of marketing-based pricing? - ANS- ROI pricing
Net ADR yield - ANS- Net Room Rate / Standard ADR
