Hospitality Revenue Management - Final Exam Review Sheet | HTM 4454, Quizzes of Tourism Economics and management

Download Hospitality Revenue Management - Final Exam Review Sheet | HTM 4454 and more Quizzes Tourism Economics and management in PDF only on Docsity! RM Final Review 1. Hotel revenue managers face hard supply constraints. In which industry below are hard constraints also likely to be encountered? a. Cereal manufacturing b. Banking c. Hair salon d. Insurance sales 2. Lisa is the revenue manager of a 500 room hotel property. Next week-end demand for her rooms will exceed the number of rooms she has available for sale. Which high demand pricing strategy will optimize revenue for her property? a. Establish one fixed price, then sell to customers on a first come-first served basis until all rooms have been sold b. Implement a differential pricing strategy and allocate the limited supply to those market segments who value the rooms most highly c. Allocate the rooms to selected customers who meet established criteria; (i.e. they are volume buyers, repeat buyers, or they hold other favored buyer Status) d. Raise prices until the available supply of rooms exceeds demand 3. What two factors establish a restaurant’s weekly customer capacity? a. Number of seats and number of hours open per week b. Number of servers and number of hours open per week c. Daily revenues and number of seats d. Check average and number of hours open per week 4. What is the name for the laws and regulations aimed at preventing abusive business behavior or anti- competitive practices? a. Anti-trust legislation b. Anti-competitive legislation c. Protective legislation d. Consumer rights legislation 5. What is the name used to describe a consortium of independent organizations formed to limit competition by controlling the production, distribution and pricing of a product or service? a. League b. Cartel c. Lobby d. Union 6. What is the name of the US legislation that outlawed all contracts and conspiracies that unreasonably restrain interstate trade? a. Clayton act b. Fedral trade commission act c. Sherman anti-trust act d. Robinson-patman act 7. What is the name of the US legislation that prohibits competing hospitality managers from meeting to agree upon the room prices that will be charged for upcoming events or charged to specific groups of customers? 1. a. Cilival rights act b. Clayton act c. Robinson-patman act d. Sherman antitrust act 8. What is the name for the price perceived by consumers to be the normal or standard price for a product or a service? a. Reoccurring price b. Required price c. Reference price d. Recommended price 9. What is true about the way buyers generally view variance in a seller’s prices? a. Price increases justified by supply shortages are likely to be viewed favorably b. Surcharges are viewed more favorably then discounts c. Discounts are viewed more favorably then surcharges d. Price increases justified by escalated consumer demand are likely to be viewed favorably 10. What is the name of the hospitality management position responsible for the accounting functions in a hotel? a. Controller b. DOSM c. FOM d. Rooms Manager 11. To whom would a Revenue Manager likely report if consistency across multiple properties was of most importance a. Corporate level executive b. Property level DOSM c. Hotel’s GM d. The revenue management team 12. According to the most recent Hospitality Sales & Marketing Association International(HSMAI) survey, to whom do the largest percentage of hotel revenue managers report? a. Corporate level executive b. Property level DOSM c. Property level controller d. Hotel’s GM 13. Which group of employees is most responsible for implementing the revenue optimization strategies and tactics developed by a revenue management team? a. Part time b. DOSM’s c. Line employees d. FOM’s 14. What vehicle do effective revenue managers use to best develop and evaluate their organizations’ pricing and revenue management strategies and tactics? a. Regular e-mail b. Regular strategy meeting c. $3.57 d. $10.00 28. Which menu pricing system would utilize an operation’s prime costs when calculating its selling prices? a. Product cost plus b. Product cost percentage c. Contribution margin d. Differential pricing 29. For revenue managers seeking to optimize revenues in their foodservice operations, which statement about menu prices is true? a. An appropriate menu price should dictate an item’s cost b. An item’s cost should dictate its menu price c. An item’s prime costs should dictate its menu price d. An increase in an item’s cost dictates an increase in its menu price 30. Shaniqua’s restaurant utilizes a product cost percentage pricing system. She would like to sell an item for $19.95. Her targeted product cost is 40%. With a 40% product cost, what is the amount her kitchen staff can spend on product cost when making this item? a. $0.80 b. $4.99 c. $4.00 d. $7.98 31. Why can foodservice operators sell a 20 year Scotch at a price higher than a one year old Scotch? a. The quality of a 20 year old Scotch is higher than a one year old Scotch b. The cost to the operator of a 20 year old Scotch is higher than a one year old Scotch c. Costumers prefer to pay higher prices d. One year old scotch is not popular 32. Poco Miller’s restaurant has 130 seats. Last night Poco served 295 guests. What was is the formula Poco would use to calculate her table turns? a. 130/295 = Table turns b. 130 (x) 295 = Table turns c. 295/130 = Table turns d. 295 (x) 130 = Table turns 33. Offering the same menu item in a variety of portion sizes is an example of what type of differential pricing strategy? a. Product versioning b. Time c. Customer charasteric d. Bundling 34. Last night Lara’s restaurant served 225 guests and achieved total revenue of $4,500. What was Lara’s check average last night? a. $50.00 b. $20.00 c. $101.25 d. $10.13 35. Which factor has historically provided the basis for a foodservice manager’s assessment of revenue generation efficiency? a. Number of guests served b. RevPASH c. Check average d. Menu items sold 36. For analysis purposes Jenny considers her restaurant to have three day parts. These three are breakfast, lunch and dinner. Last month Jenny’s breakfast sales were $44,000. Total sales were $176,000. What percent of sales were contributed by breakfast? a. 32% b. 40% c. 25% d. 77.4% 37. April’s sales at Raja’s restaurant this year were $80,000. That was a decrease of 20% compared to the revenue achieved in April of last year. What was the amount of revenue achieved in Raja’s restaurant during April of last year? a. $86,000 b. $90,000 c. $96,000 d. $100,000 38. Alice’s restaurant is located in a shopping mall. Her store occupies 950 square feet. Last month Alice’s revenues were $28,500. What was the revenue per square foot achieved by Alice’s restaurant last month? a. $333.33 b. $33.33 c. $300.00 d. $30.00 39. Last month revenue in Sofia’s take out pizza shop was $50,000. Sofia used 1250 labor hours to generate the revenue and she pays her employees an average of $10.00 per hour. 5000 guests were served in the month. What was Sofia’s Labor Cost % for the month? a. 25% b. 10% c. 40% d. 12.5% 40. The Busy Bee restaurant has 100 seats. Between 5:00 p.m. and 6 p.m. yesterday the Busy Bee served 75 guests. Revenues during that time period were $3,700. What was The RevPASH achieved by the Busy Bee yesterday between 5:00 p.m. and 6 p.m.? a. $49.33 b. $37.00 c. $133.33 d. $20.27 41. What would be the typical impact on RevPASH of an increase in guest duration? a. RevPASH would not change if check average did not change b. RevPASH would increase if check average did not change c. RevPASH would decrease if check average did not change d. RevPASH would increase if check average decreased 42. What formula can revenue managers use to calculate RevPASH? a. Seat Utilization % (X) Check Average= RevPASH b. Number of Guests Served (X) Check Average = RevPASH c. Number of Seats Available (X) Check Average = RevPASH d. Seat Utilization % (X) Total Revenue = RevPASH 43. What is the name for the accounting device used by foodservice operators to divide their operating year into 13 equal time periods? a. 31 day accounting period b. 30 day accounting period c. 29 day accounting period d. 28 day accounting period 44. What business segment best describes a company that is engaged primarily in the sale of intangible goods? a. Agriculture b. Manufacturing c. Construction d. Service 45. Revenue optimization strategies can make the most impact on inventory management in industries with which kind of cost structures? a. Low variable costs and high fixed costs b. High variable costs and low fixed costs c. High variable costs and high fixed costs d. Low variable costs and low fixed costs 46. Nearly every ski resort in the Upper Northeastern part of the US generates the majority of its annual income during the winter months. What is the cause of this? a. Constrained supply b. Variable demand c. Product versioning d. High fixed costs 47. Selling season tickets to sporting events such as professional baseball or basketball games at a price per game that is lower than the cost of individual tickets to all of the games is an example of what revenue optimization activity? a. Constrained demand management b. Communication selection c. Product versioning d. Variable demand management 48. What is the business term used to describe the application of statistical formulas to past events for the purpose of predicting future events? a. Probabilistic modeling b. Correlation assessment c. Calculus applex