Hospitality Revenue Management Questions and Answers Graded A+
0 view 0 purchase
Course
Hospitality Revenue Management
Institution
Hospitality Revenue Management
Hospitality Revenue Management
Revenue management is the act of directing sources of income within the confines of - Answer- capacity, supply and demand
GOPPAR takes into account which of the following variables that is not considered in RevPAR? - Answer- Controllable expenses
Name rev...
careful selection of the most profitable customers
e
Written for
Hospitality Revenue Management
Hospitality Revenue Management
Hospitality Revenue Management
All documents for this subject (135)
Seller
Follow
Luckybug
Content preview
Hospitality Revenue Management
Revenue management is the act of directing sources of income within the confines of - Answer-
capacity, supply and demand
GOPPAR takes into account which of the following variables that is not considered in RevPAR?
- Answer- Controllable expenses
Name revenue optimization strategies - Answer- Market segmentation, Duration control , BAR
(Best Available Rate)
Legoherel, Poutier, & Fyall point out that revenue optimization is not only about product
versioning, distribution channel selection, and pricing, but also - Answer- careful selection of
the most profitable customers
The net value achieved by a seller and a buyer in a business transaction - Answer- Profit
A Barter System is a - Answer- Trading system in which goods and services are exchanged
without the use of money.
The area of study concerned with the production, consumption, and transfer of wealth is called -
Answer- Economics
The purpose of successful hospitality businesses is to - Answer- Provide profits to its
customers and increase their wealth.
The individual or team responsible for ensuring that a company's prices match a customer's
willingness to pay. - Answer- Revenue Manager(s)
A revenue management philosophy that places customer gain ahead of short term revenue
maximization in revenue management decision making is called - Answer- Customer-Centric
Revenue Management
A source of business customers or vehicle used to communicate with a source of customers is
called a - Answer- Channel/Distribution Channel
Constrained Supply is the condition that exists when - Answer- Sellers cannot readily increase
the amount of products or services available for sale when consumer demand for them
increases
What is the difference between a Hard Constraint and a Soft Constraint? - Answer- Hard
Constraint: a supply constraint that cannot be removed, regardless of product demand. Ex: hotel
rooms, capacity of natural gas pipelines
Soft Constraint: a supply constraint that can, with sufficient lead time, and/or reasonable
expense, be removed or lessened. Ex:
A demand based revenue management strategy, first initiated by commercial airline companies.
It seeks to maximize income via manipulation of selling prices. - Answer- Yield Management
,Accepting reservations for more rooms than a hotel has available or in inventory is known as -
Answer- Overbooking/Overselling
A group of similar and directly competing lodging properties to which an individual hotel's
operating performance is compared is called - Answer- Competitive Set
A Market Segment is - Answer- A subset of a customer group that can be readily identified by
one or more common, but individual customer characteristics. Ex: Income, gender, or purpose
of travel.
A summary report describing the amount of future demand for a lodging property's rooms or
services and the rate at which that business is bung captured is called a - Answer- Pace
Report
Rack Room Rates are - Answer- The price of rooms when no discounts of any type are offered
to guests purchasing the rooms
The advertising and promotion of travel and tourism activities in a specifically designated
geographic area is called - Answer- Destination Marketing
A Target Market consists of - Answer- Potential customers to whom a business' marketing
activities and message are directed.
Price is a measure of - Answer- The value given up (exchanged) by a buyer and a seller in a
business transaction.
In the consumer's mind, value for the product is equivalent to - Answer- perceived benefit
minus the price
The minimal sales point is equivalent to - Answer- the dollar sales volume at the break even
point (revenue - cost = 0)
If the quality of the product increases and price decreases, value for the customer - Answer-
increases
If the service increases and price decreases, value for the customer - Answer- increases
Match the product sold with the pricing terminology
Guest rooms
Meeting rooms
Special guest services
Games of chance
Transportation
, Admission - Answer- Room rate
Room rental
Service charge
Minimum bet
Fare
Ticket price
The shoulder period refers to - Answer- the period of lowest demand
The term for the price that consumers perceive to be the "normal" price is: - Answer-
Reference price
If the service increases and price decreases, value for the customer - Answer- increases
Which of the following has a higher Net ADR Yield?
Standard ADR = 200; Distribution Cost = 20
Standard ADR = 210; Distribution Cost = 30 - Answer- Standard ADR of 200 and cost of 20
H&M Ch 4 p 114 Net ADR Yield = Net room rate / standard ADR where Net Room Rate =
Standard ADR - distribution costs
What is the net ADR yield (not the net room rate) given the following information:
Net room rate/standard ADR = Net ADR Yield where Net Room Rate = ADR less distribution
channel costs
In a 400 room hotel, which is the better pricing pricing strategy (using RevPAR only) given the
following information
180 unsold rooms Standard rate $179 (current ADR) $35 room cost (prep, sell and clean) -
Answer- Sell all remaining rooms to a group contract @ $109
In a 400 room hotel, which is the better pricing pricing strategy (using GOPPAR only) given the
following information
180 unsold rooms Standard rate $179 (current ADR) $35 room cost (prep, sell and clean) -
Answer- Sell all remaining rooms to a group contract @ $109
The term used for a product offering that consists of multiple products and/or services that are
grouped together and offered at a price that is lower than if the items were to be purchased
separately. - Answer- bundling
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Luckybug. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.89. You're not tied to anything after your purchase.
