Certification Practice Exam
Revenue management is a set of revenue maximization strategies and tactics that - Answer: can
be used to improve the profitability of certain businesses.
When the American Airlines CEO developed yield management, what type of information was
crucial to its success? - Answer: forecasting
Which of the following statements about hotel revenue management is FALSE? - Answer:
Revenue management is new, as are all of the strategies that are employed to maximize profit.
Which of the following is NOT a criterion needed for an industry to unlock the full potential of
revenue management? - Answer: low fixed costs and high variable costs
Total revenue management refers to: - Answer: managing several revenue streams at the same
time.
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, To interpret measures of a hotel's performance, managers often compare those measures with -
Answer: - the budget for the period
- industry or sector averages
- historical figures from comparable earlier periods at the hotel
If a 300-room hotel achieves 70 percent occupancy for April at an ADR of $153 per room, what
will room revenue equal? - Answer: $963,900
In January, the 200-room SnowBound Inn ran a skiers special that resulted in them selling 5,735
rooms during the month. What was the occupancy percentage for the month? - Answer: 92.5 %
How do an internal ADR and an external ADR differ? - Answer: the external ADR uses gross
room revenue, while internal ADR generally does not.
What is the measure of cost efficiency? - Answer: GOPPAR
Which of the following statements is false?
- Most internet searches are organic with results based solely on relevant search criteria
- It is usually easier and cheaper to down-market a property than to conduct a major overhaul
- brand affiliation can help a hotel property connect with its customers
- competitive sets can change with new ownership or changes in the environment - Answer:
most internet searches are orange with results based solely on relevant search criteria
A given hotel's comp set should contain all other hotels - Answer: that compete for the same
guests
In a 1050-room competitive set, Hotel A has 300 rooms. Hotel B has 350 rooms, and Hotel C has
400 rooms. During a recent 30-day period in which the entire competitive set sold 25,400
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