Hospitality Revenue Management final exam review
1. What is the industry term used to describe the sum
of prices paid by a business's customers?
2. Historically, what concept have hospitality managers
chiefly used to calculate their selling prices?
3. What is an algebraic equivalent of the for...
1. What is the industry term used to describe the sum total revenues
of prices paid by a business's customers?
2. Historically, what concept have hospitality managers costs
chiefly used to calculate their selling prices?
3. What is an algebraic equivalent of the formula: Sales profit=sales-costs
= Costs + Profit?
4. What is the name for the net value achieved by both profit
parties in a business transaction?
5. What element is not present in a barter economy? money
6. What is the formula used to calculate an owner's ROI? Owner's Invest-
ment Return /
Owner's Origi-
nal Investment =
Owner's Return
on Investment
7. Sandy has 100 hotel rooms to sell. This Saturday constrained sup-
night has enough customers to sell 125 rooms so she ply
will be refusing 25 requests for rooms. What is this an
example of?
8. Which industry was the first to use Yield Management airline
principles?
9. What is the industry term used to describe the selling overbooking
of rooms which are not actually available for sale?
10. What is the formula used to calculate Average Daily Total Room's Rev-
Rate? enue / Total
Rooms Sold = Av-
erage Daily Rate
11. Tashia's hotel sold 175 rooms last night at an ADR of 70%
$200.00. Her hotel has 250 rooms. What was Tashia's
occupancy % last night?
, Hospitality Revenue Management final exam review
12. Tashia's hotel sold 175 rooms last night at an ADR of $140
$200.00. Her hotel has 250 rooms. What was Tashia's
RevPAR last night?
13. What is the industry term for the average revenue RevPOR
generated by each occupied guestroom during a de-
fined period of time?
14. What is the formula used to calculate GOPPAR? (Total Revenue
- Management
Controllable Ex-
penses) / Rooms
Available to Sell =
GOPPAR
15. What is the industry term for a customer group which market segment
can be readily identified by one or more common
characteristics?
16. What is a rack rate? The price of rooms
when no discounts
of any type are of-
fered
17. What is: RevPASH formula
Total period revenue
(Number of available seats) x (hours of seat availabil-
ity)
18. What is the term used to identify a management Customer-centric
philosophy that places customer gain ahead of revenue
short-term revenue maximization in revenue manage- management
ment decision making?
19. What is the term used to describe the potential cus- target market
tomers to whom a business's marketing activities
and messages are directed?
20.
, What is the term used to describe efforts undertaken destination mar-
to encourage travel and tourism to a specific geo- keting
graphic area or attraction?
21. What is the name for the value given up by a buyer price
and a seller in a business transaction?
22. Charging guests for watching a "Pay-Per-View" two-tiered pricing
movie in their hotel guestroom is an example of what
type of pricing?
23. What is the fundamental assumption upon which the Buyers act in ways
concept of consumer rationality is based? that are of person-
al benefit to them
24. What is the revenue management term used to de- value
scribe the perceived benefit gained, minus the price
paid, in a business transaction?
25. What is created when a seller communicates to a value proposition
buyer a description of a product to be sold and the
price at which that product will be sold?
26. Which of the following terms would be included in the distribution chan-
Place portion of a hotel's marketing mix? nels
27. What is the fundamental assumption upon which the The higher the de-
Law of Supply is based? mand for a prod-
uct the more of it
will be produced
by sellers
28. According to Alfred Marshall's work, if the price of a The demand for
product is lower than the natural, or equilibrium price, the product would
what will happen? exceed its supply
29. Assume an equilibrium price (P1) is in place for a The new price
product. What would the law of supply and demand (P2) would be
predict as an outcome if demand for that product higher than the
increased? previous price
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