HOSPITALITY REVENUE MANAGEMENT FINAL
EXAM LATEST 2024 ACTUAL EXAM 200 QUESTIONS
AND CORRECT ANSWERS) |ALREADY GRADED A+
Lara's rack rate is $299.99. She has been asked to bid on 200 rooms nights needed by a travel agent
seeking housing for a group of seniors touring the area by bus. The travel agency has requested Lara
provide her a net (non-commissionable) rate. Lara's hotel typically pays a 10% travel agency fee. What
would be Lara's per room night net non-commissionable bid for these rooms if she does not lower her
rack rate? - ANSWER-$269.99
Scott is a revenue manager who calculates the following for his hotel:
Total (rooms + non-rooms) revenue
Total occupied rooms
What is the result of Scott's calculation? - ANSWER-RevPOR
Which is considered a room-related occupancy cost? - ANSWER-Complimentary breakfast costs
At Rachel's hotel, the CPOR is $40.00. Her Net ADR Yield averages 85% and her franchise fees average
5%. What is Rachel's average minimum ADR sales point? - ANSWER-$50.00
Last month Carl's hotel ran a 55% occupancy. His comp. set had 50,000 room nights available for sale and
sold 25,000 rooms. What was Carl's occupancy index last month? - ANSWER-110%
Last year Carl's hotel had an occupancy index of 120%. From that information, what can be said about
Carl's hotel? - ANSWER-It achieved a higher average occupancy % than its comp. set
Last month Carl's hotel had 10,000 available room nights and sold 6,000 room nights. Last month his
comp set had an average occupancy of 80%. What was Carl's occupancy index last month? -
ANSWER75%
Last month Carl's hotel had an ADR index of 105%. What is true about his hotel's ADR last month? -
ANSWER-It was somewhat higher than the ADR of his competitive set
,This Year-To-Date, Carl's hotel is averaging an ADR of $125.00. The ADR of his comp. set for the same
period is $125.00. Assume Carl's comp. set is an appropriate one. What would you recommend Carl do if
his occupancy index for the same period is 140%? - ANSWER-Carefully increase rack rates to optimize
GOPPAR
Last month Carl's hotel had a RevPAR index of 100. His occupancy index was 132.5 and his ADR index was
75.5. What is true about his hotel's performance last month? - ANSWER-His GOPPAR is not optimized
because it is low relative to the RevPARindex
Last month Carl's hotel had an ADR index of 80.0% and an occupancy index of 120%. What was Carl's
RevPAR index for last month? - ANSWER-96.0%
Last month Carl's hotel had a RevPAR index of 133.0%. Based on that information alone; what does Carl
know for sure about his hotel's performance last month? - ANSWER-His ADR or occupancy index will
exceed 100%
Last month Carl's hotel supplied 10.8% of the rooms in his comp set. It attracted 11.6% of all the rooms
sold (demand) and generated 9.1% of the total revenue achieved by the comp set. What is true about
Carl's hotel? - ANSWER-Its rates are low relative to the comp. set's and the hotel has an occupancy
index above 100%
What metrics are best used to assess the relative merits of a specific lodging industry distribution
channel's contribution to a single hotel? - ANSWER-Rooms sold and Net ADR Yield
Shaniqua's restaurant utilizes a product cost percentage pricing system. She would like to apply pricing
factors to make pricing her menus easier. What would be the pricing factor she would use when her
desired product cost percentage for an item is 40%? - ANSWER-2.5
Which menu pricing system would utilize an operation's prime costs when calculating its selling prices? -
ANSWER-Product Cost: Plus
What is the common feature in the Product Cost: Plus Pricing, the Contribution Margin Pricing and the
, Product Cost Percentage Pricing systems? - ANSWER-The amount paid for products
For revenue managers seeking to optimize revenues in their foodservice operations, which statement
about menu prices is true? - ANSWER-An appropriate menu price should dictate an item's cost
Shaniqua's restaurant utilizes a product cost percentage pricing system. She would like to sell an item for
$19.95. Her targeted product cost is 40%. With a 40% product cost, what is the amount her kitchen staff
can spend on product cost when making this item? - ANSWER-$ 7.98
Why can foodservice operators sell a 20 year Scotch at a price higher than a one-year-old Scotch?
The quality of a 20-year-old Scotch is higher than a one-year-old Scotch The
cost to the operator of a 20-year-old Scotch is higher than a one year old
Scotch
Customers prefer to pay high prices
One-year-old Scotch is not popular - ANSWER-The quality of a 20 year old Scotch is higher than a one
year old Scotch
Arthur's restaurant is extremely busy on Friday and Saturday. The manager of the operation offers
reduced prices on quick-to-prepare and quick-to-serve menu items on those two nights. What revenue
related factor is this restaurant manager seeking to positively influence? - ANSWER-Capacity
Poco Miller's restaurant has 130 seats. Last night Poco served 295 guests. What was is the formula Poco
would use to calculate her table turns? - ANSWER-295/130 = Table turns
Why should revenue managers monitor their competitors' prices? - ANSWER-To keep their own prices
on the higher end of their competitors' price ranges.
Which value-related factor does a revenue manager seek to impact if prices for carry-out menu items in
a restaurant are 10% less than the price of the same items when they are consumed in that restaurant's
dining room? - ANSWER-Service level
EXAM LATEST 2024 ACTUAL EXAM 200 QUESTIONS
AND CORRECT ANSWERS) |ALREADY GRADED A+
Lara's rack rate is $299.99. She has been asked to bid on 200 rooms nights needed by a travel agent
seeking housing for a group of seniors touring the area by bus. The travel agency has requested Lara
provide her a net (non-commissionable) rate. Lara's hotel typically pays a 10% travel agency fee. What
would be Lara's per room night net non-commissionable bid for these rooms if she does not lower her
rack rate? - ANSWER-$269.99
Scott is a revenue manager who calculates the following for his hotel:
Total (rooms + non-rooms) revenue
Total occupied rooms
What is the result of Scott's calculation? - ANSWER-RevPOR
Which is considered a room-related occupancy cost? - ANSWER-Complimentary breakfast costs
At Rachel's hotel, the CPOR is $40.00. Her Net ADR Yield averages 85% and her franchise fees average
5%. What is Rachel's average minimum ADR sales point? - ANSWER-$50.00
Last month Carl's hotel ran a 55% occupancy. His comp. set had 50,000 room nights available for sale and
sold 25,000 rooms. What was Carl's occupancy index last month? - ANSWER-110%
Last year Carl's hotel had an occupancy index of 120%. From that information, what can be said about
Carl's hotel? - ANSWER-It achieved a higher average occupancy % than its comp. set
Last month Carl's hotel had 10,000 available room nights and sold 6,000 room nights. Last month his
comp set had an average occupancy of 80%. What was Carl's occupancy index last month? -
ANSWER75%
Last month Carl's hotel had an ADR index of 105%. What is true about his hotel's ADR last month? -
ANSWER-It was somewhat higher than the ADR of his competitive set
,This Year-To-Date, Carl's hotel is averaging an ADR of $125.00. The ADR of his comp. set for the same
period is $125.00. Assume Carl's comp. set is an appropriate one. What would you recommend Carl do if
his occupancy index for the same period is 140%? - ANSWER-Carefully increase rack rates to optimize
GOPPAR
Last month Carl's hotel had a RevPAR index of 100. His occupancy index was 132.5 and his ADR index was
75.5. What is true about his hotel's performance last month? - ANSWER-His GOPPAR is not optimized
because it is low relative to the RevPARindex
Last month Carl's hotel had an ADR index of 80.0% and an occupancy index of 120%. What was Carl's
RevPAR index for last month? - ANSWER-96.0%
Last month Carl's hotel had a RevPAR index of 133.0%. Based on that information alone; what does Carl
know for sure about his hotel's performance last month? - ANSWER-His ADR or occupancy index will
exceed 100%
Last month Carl's hotel supplied 10.8% of the rooms in his comp set. It attracted 11.6% of all the rooms
sold (demand) and generated 9.1% of the total revenue achieved by the comp set. What is true about
Carl's hotel? - ANSWER-Its rates are low relative to the comp. set's and the hotel has an occupancy
index above 100%
What metrics are best used to assess the relative merits of a specific lodging industry distribution
channel's contribution to a single hotel? - ANSWER-Rooms sold and Net ADR Yield
Shaniqua's restaurant utilizes a product cost percentage pricing system. She would like to apply pricing
factors to make pricing her menus easier. What would be the pricing factor she would use when her
desired product cost percentage for an item is 40%? - ANSWER-2.5
Which menu pricing system would utilize an operation's prime costs when calculating its selling prices? -
ANSWER-Product Cost: Plus
What is the common feature in the Product Cost: Plus Pricing, the Contribution Margin Pricing and the
, Product Cost Percentage Pricing systems? - ANSWER-The amount paid for products
For revenue managers seeking to optimize revenues in their foodservice operations, which statement
about menu prices is true? - ANSWER-An appropriate menu price should dictate an item's cost
Shaniqua's restaurant utilizes a product cost percentage pricing system. She would like to sell an item for
$19.95. Her targeted product cost is 40%. With a 40% product cost, what is the amount her kitchen staff
can spend on product cost when making this item? - ANSWER-$ 7.98
Why can foodservice operators sell a 20 year Scotch at a price higher than a one-year-old Scotch?
The quality of a 20-year-old Scotch is higher than a one-year-old Scotch The
cost to the operator of a 20-year-old Scotch is higher than a one year old
Scotch
Customers prefer to pay high prices
One-year-old Scotch is not popular - ANSWER-The quality of a 20 year old Scotch is higher than a one
year old Scotch
Arthur's restaurant is extremely busy on Friday and Saturday. The manager of the operation offers
reduced prices on quick-to-prepare and quick-to-serve menu items on those two nights. What revenue
related factor is this restaurant manager seeking to positively influence? - ANSWER-Capacity
Poco Miller's restaurant has 130 seats. Last night Poco served 295 guests. What was is the formula Poco
would use to calculate her table turns? - ANSWER-295/130 = Table turns
Why should revenue managers monitor their competitors' prices? - ANSWER-To keep their own prices
on the higher end of their competitors' price ranges.
Which value-related factor does a revenue manager seek to impact if prices for carry-out menu items in
a restaurant are 10% less than the price of the same items when they are consumed in that restaurant's
dining room? - ANSWER-Service level
