Revenue Management
REVENUE MANAGEMENT FINAL EXAM
QUESTIONS AND ANSWERS
What is the main reason that travelers today have more clout than ever before? - They
have information on virtually everything at their fingertips.
Revenue Management is NOT necessarily about... - Achieving 100 % occupancy and a
perfect science
The Hurdle Rate is...? - The Lowest Rate for a Given Day
A benefit of variable pricing within revenue management is the smoothing of demand.
T/F - True
Revenue management is a set of revenue maximization strategies and tactics that... - can
be used to improve the profitability of certain businesses.
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? - Occupancy % = Room nights sold in a period / Room nights available in that
period
Answer: 5,735 / (200x31) = 5,,200 = 92.5%
When the American Airlines CEO developed yield management, what type of
information was crucial to its success? - forecasting
Revenue Management
, Revenue Management
The goal of revenue management is to MAXIMIZE REVENUE per Available Time-
Based Inventory Unit (or RevPATI). RevPATI formula applied to all industries translates
into...? - Capacity Utilization x Average Revenue per Service Transaction
Which of the following is NOT a criterion needed for an industry to unlock the full
potential of revenue management? - low fixed costs and high variable costs
To interpret measures of a hotel's performance, managers often compare those measures
with: - industry or sector averages, the budget for the period, and historical figures from
comparable earlier periods at the hotel.
Which of the following statements about hotel revenue management is FALSE? -
Revenue management is new, as are all of the strategies that are employed to maximize
profit.
Revenue Management includes a multidisciplinary management techniques applied to
several sub-sectors of the hospitality. Which of the following is NOT one discipline
within Revenue Management? - Logistics Management
Identify which of these is not a positive of using revenue management strategies and
tactics: - Motivate employees
If a 300-room hotel achieves 70 percent occupancy for April at an ADR of $153 per
room, what will room revenue equal? - $963,900
What is the main reason that travelers today have more clout than ever before? - They
have information on virtually everything at their fingertips.
Revenue management can be defined as - A set of strategies and techniques used to sell
the right product, to the right customer, at the right time and at the right prices.
Revenue Management
REVENUE MANAGEMENT FINAL EXAM
QUESTIONS AND ANSWERS
What is the main reason that travelers today have more clout than ever before? - They
have information on virtually everything at their fingertips.
Revenue Management is NOT necessarily about... - Achieving 100 % occupancy and a
perfect science
The Hurdle Rate is...? - The Lowest Rate for a Given Day
A benefit of variable pricing within revenue management is the smoothing of demand.
T/F - True
Revenue management is a set of revenue maximization strategies and tactics that... - can
be used to improve the profitability of certain businesses.
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? - Occupancy % = Room nights sold in a period / Room nights available in that
period
Answer: 5,735 / (200x31) = 5,,200 = 92.5%
When the American Airlines CEO developed yield management, what type of
information was crucial to its success? - forecasting
Revenue Management
, Revenue Management
The goal of revenue management is to MAXIMIZE REVENUE per Available Time-
Based Inventory Unit (or RevPATI). RevPATI formula applied to all industries translates
into...? - Capacity Utilization x Average Revenue per Service Transaction
Which of the following is NOT a criterion needed for an industry to unlock the full
potential of revenue management? - low fixed costs and high variable costs
To interpret measures of a hotel's performance, managers often compare those measures
with: - industry or sector averages, the budget for the period, and historical figures from
comparable earlier periods at the hotel.
Which of the following statements about hotel revenue management is FALSE? -
Revenue management is new, as are all of the strategies that are employed to maximize
profit.
Revenue Management includes a multidisciplinary management techniques applied to
several sub-sectors of the hospitality. Which of the following is NOT one discipline
within Revenue Management? - Logistics Management
Identify which of these is not a positive of using revenue management strategies and
tactics: - Motivate employees
If a 300-room hotel achieves 70 percent occupancy for April at an ADR of $153 per
room, what will room revenue equal? - $963,900
What is the main reason that travelers today have more clout than ever before? - They
have information on virtually everything at their fingertips.
Revenue management can be defined as - A set of strategies and techniques used to sell
the right product, to the right customer, at the right time and at the right prices.
Revenue Management
