Revenue Management Exam 1/ 70 Terms with
Certified Solutions.
Room Night - Answer: The single night's use of a guest room
EX: 1 room sold for 3 consecutive nights yields three room nights
reference price - Answer: the price perceived by consumers to be the normal price for a product
of service
Hard constraint - Answer: a supply constraint that cannot be removed regardless of product
demand
EX: natural gas pipelines, number of hotel rooms
soft constraint - Answer: a supply constraint that can, with sufficient lead time, and/ or a
reasonable expense, be removed or lessened
EX: food, hotel decorations
Page 1 of 12
, price fence - Answer: the specific requirements that describes who is and is not eligible for a
special pricing offer
consumer surplus - Answer: the difference between the amount a buyer would be willing to pay
for a product or service and the amount they are charged
fixed pricing - Answer: the practice of a seller charging the same price to all buyers
differential pricing - Answer: the practice of a seller charging different prices to different buyers
for the same product or slightly different versions of the same product
Different pricing strategies - Answer: -time
-quantity
-location
-payment terms
-customer characteristics
-bundling
inventory management - Answer: the process of allocating and modifying the number of
products available for sale at various prices and through various distribution channels
revenue - Answer: total amount of sales acieved in a specified time period
= number of units sold x unit price
supply - Answer: the higher the demand for product, the more of it will be produced by sellers
demand - Answer: the higher the price of a product, the less of it will be wanted by buyers
ADR= - Answer: total room revenue/total rooms sold
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Certified Solutions.
Room Night - Answer: The single night's use of a guest room
EX: 1 room sold for 3 consecutive nights yields three room nights
reference price - Answer: the price perceived by consumers to be the normal price for a product
of service
Hard constraint - Answer: a supply constraint that cannot be removed regardless of product
demand
EX: natural gas pipelines, number of hotel rooms
soft constraint - Answer: a supply constraint that can, with sufficient lead time, and/ or a
reasonable expense, be removed or lessened
EX: food, hotel decorations
Page 1 of 12
, price fence - Answer: the specific requirements that describes who is and is not eligible for a
special pricing offer
consumer surplus - Answer: the difference between the amount a buyer would be willing to pay
for a product or service and the amount they are charged
fixed pricing - Answer: the practice of a seller charging the same price to all buyers
differential pricing - Answer: the practice of a seller charging different prices to different buyers
for the same product or slightly different versions of the same product
Different pricing strategies - Answer: -time
-quantity
-location
-payment terms
-customer characteristics
-bundling
inventory management - Answer: the process of allocating and modifying the number of
products available for sale at various prices and through various distribution channels
revenue - Answer: total amount of sales acieved in a specified time period
= number of units sold x unit price
supply - Answer: the higher the demand for product, the more of it will be produced by sellers
demand - Answer: the higher the price of a product, the less of it will be wanted by buyers
ADR= - Answer: total room revenue/total rooms sold
Page 2 of 12
