1
HOSPITALITY REVENUE MANAGEMENT FINAL EXAM
LATEST ACTUAL EXAM 200 QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A+
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
, 2
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
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
, 3
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)RevPASH
formula
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)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
, 4
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)value
proposition
Which of the following terms would be included in the Place portion of a hotel's
marketing mix? - (ANSWER)distribution channels
What is the fundamental assumption upon which the Law of Supply is based? -
(ANSWER)The higher the demand for a product the more of it will be produced by
sellers
According to Alfred Marshall's work, if the price of a product is lower than the
natural, or equilibrium price, what will happen? - (ANSWER)The demand for the
product would exceed its supply
Assume an equilibrium price (P1) is in place for a product. What would the law of
supply and demand predict as an outcome if demand for that product increased?
HOSPITALITY REVENUE MANAGEMENT FINAL EXAM
LATEST ACTUAL EXAM 200 QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A+
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
, 2
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
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
, 3
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)RevPASH
formula
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)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
, 4
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)value
proposition
Which of the following terms would be included in the Place portion of a hotel's
marketing mix? - (ANSWER)distribution channels
What is the fundamental assumption upon which the Law of Supply is based? -
(ANSWER)The higher the demand for a product the more of it will be produced by
sellers
According to Alfred Marshall's work, if the price of a product is lower than the
natural, or equilibrium price, what will happen? - (ANSWER)The demand for the
product would exceed its supply
Assume an equilibrium price (P1) is in place for a product. What would the law of
supply and demand predict as an outcome if demand for that product increased?
