Download Hospitality Revenue Management: Rates, Demand, and Pricing Strategies and more Exams Business Economics in PDF only on Docsity! HM 441 Chapter 4 & 5|30 Questions with Answers 2023 In terms of rates and economics, an airfare to remote locations (e.g. a resort in the middle of the Amazonian forest) is a good example of what? - CORRECT ANSWER complementary product In a property forecasted high period of demand period, if the RM displacement analysis shows that by accepting a certain group the overall net revenue gain is positive (more revenues than the costs of displacement transient demand in the future), increasing profitability, than its Sales or Reservations departments should be inclined to: - CORRECT ANSWER accept the group reservation Pace of build refers to: - CORRECT ANSWER the rate at which reservations are being made for a future date Nonphysical Price Fences, strategic controls or also commonly called Rates with "Fenced" Discounts e.g. Minimum Length of Stay (MLS) are: - CORRECT ANSWER "rules" or "criteria" or "conditions" that are put in place to govern the conditions and availability of a rate Wash Factor is...? - CORRECT ANSWER group members who check out early rather than stay the entire length of the event After customers have met their basic financial requirements, any remaining money is considered what? - CORRECT ANSWER discretionary income Denial reports from reservations show us how much more business we could have captured if we had additional capacity or inventory. Since there was more demand than supply, we need to assess whether our rates were too low for that time period. A denial occurs when: - CORRECT ANSWER a facility is not able to accommodate a guest due to unavailability of product or service at that price When demand levels rise above the hotel's capacity to meet it fully, demand becomes what? - CORRECT ANSWER constrained What is the booking pace (also called booking pattern)? - CORRECT ANSWER an indicator that compares the booking pace of the current year with those of previous years Which of the following contains a breakdown of all revenue and expenses reasonably planned and expected for a particular period and is not likely to change unless unforeseen events force a revision? - CORRECT ANSWER budget Melissa called the High Demand Hotel on Wednesday to make a weekend reservation. The reservation agent checked the computer and then politely told Melissa that the hotel was sold out and they wouldn't be able to provide her with a room. What type of guest would Melissa be classified as? - CORRECT ANSWER denial Which of the following is not a type of constraint? - CORRECT ANSWER business group Room rates are only one element of revenue; in constrained demand market situations, hotels want to capture what? - CORRECT ANSWER the highest yield guests based on total spend Personal income minus income taxes equals which of the following? - CORRECT ANSWER Disposable income HM 441 Chapter 5 Denial reports from reservations show us how much more business we could have captured if we had additional capacity or inventory. Since there was more demand than supply, we need to assess whether our rates were too low for that time period. A denial occurs when: - CORRECT ANSWER A facility is not able to accommodate a guest due to unavailability of product or service at that price Which are the rates which always apply to membership organizations? - CORRECT ANSWER promotional rates Which approach to pricing takes a long-term view? - CORRECT ANSWER strategic approach
