HFT4468 REVENUE MANAGEMENT
QUESTIONS AND ANSWERS 100%!!!
What is the industry term used to describe the sum of prices paid by a business's
customers?-ANSWER Total revenues
Historically, what concept have hospitality managers chiefly used to calculate their
selling prices?-ANSWER Costs
What is an algebraic equivalent of the formula: Sales = Costs + Profit?-ANSWER Profit
= Sales - Costs
What is the name for the net value achieved by both parties in a business transaction?-
ANSWER Profit
What element is not present in a barter economy?-ANSWER Money
What is the formula used to calculate an owner's ROI?-ANSWER 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?-
ANSWER Constrained supply
Which industry was the first to use Yield Management principles?-ANSWER Airline
What is the industry term used to describe the selling of rooms which are not actually
available for sale?-ANSWER Overbooking
What is the formula used to calculate Average Daily Rate?-ANSWER 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?-ANSWER 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?-ANSWER 140.00
, What is the industry term for the average revenue generated by each occupied
guestroom during a defined period of time?-ANSWER RevPOR
What is the formula used to calculate GOPPAR?-ANSWER (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?-ANSWER Market segment
What is a rack rate?-ANSWER 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)-ANSWER The formula for
RevPASH
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?-
ANSWER 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?-ANSWER The target market
What is the term used to describe efforts undertaken to encourage travel and tourism to
a specific geographic area or attraction?-ANSWER Destination marketing
What is the name for the value given up by a buyer and a seller in a business
transaction?-ANSWER Price
Charging guests for watching a "Pay-Per-View" movie in their hotel guestroom is an
example of what type of pricing?-ANSWER Two-tiered pricing
What is the fundamental assumption upon which the concept of consumer rationality is
based?-ANSWER 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?-ANSWER 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?-ANSWER A value proposition
QUESTIONS AND ANSWERS 100%!!!
What is the industry term used to describe the sum of prices paid by a business's
customers?-ANSWER Total revenues
Historically, what concept have hospitality managers chiefly used to calculate their
selling prices?-ANSWER Costs
What is an algebraic equivalent of the formula: Sales = Costs + Profit?-ANSWER Profit
= Sales - Costs
What is the name for the net value achieved by both parties in a business transaction?-
ANSWER Profit
What element is not present in a barter economy?-ANSWER Money
What is the formula used to calculate an owner's ROI?-ANSWER 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?-
ANSWER Constrained supply
Which industry was the first to use Yield Management principles?-ANSWER Airline
What is the industry term used to describe the selling of rooms which are not actually
available for sale?-ANSWER Overbooking
What is the formula used to calculate Average Daily Rate?-ANSWER 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?-ANSWER 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?-ANSWER 140.00
, What is the industry term for the average revenue generated by each occupied
guestroom during a defined period of time?-ANSWER RevPOR
What is the formula used to calculate GOPPAR?-ANSWER (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?-ANSWER Market segment
What is a rack rate?-ANSWER 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)-ANSWER The formula for
RevPASH
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?-
ANSWER 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?-ANSWER The target market
What is the term used to describe efforts undertaken to encourage travel and tourism to
a specific geographic area or attraction?-ANSWER Destination marketing
What is the name for the value given up by a buyer and a seller in a business
transaction?-ANSWER Price
Charging guests for watching a "Pay-Per-View" movie in their hotel guestroom is an
example of what type of pricing?-ANSWER Two-tiered pricing
What is the fundamental assumption upon which the concept of consumer rationality is
based?-ANSWER 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?-ANSWER 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?-ANSWER A value proposition
