Revenue Management Exam 1 Study Guide, Exams of Business Economics

Download Revenue Management Exam 1 Study Guide and more Exams Business Economics in PDF only on Docsity! 1 Revenue Management Exam 1 Study Guide Questions with Answers 1.Historically, what concept have hospitality managers chiefly used to calcu- late their selling prices? Ch. 1: Costs 2.What is an algebraic equivalent of the formula: Sales= Costs+ Profit? Ch. 1: Profit = Sales - Costs 3.What element is not present in a barter economy? Ch. 1: Money 4.What is the formula used to calculate GOPPAR? Ch. 1: Total Revenue- Man- agement Controllable Expenses/Rooms Available to Sell 5.What is the industry term for a customer group which can be readily identi- fied by one or more common characteristics? Ch. 1: Market Segment 6.What is Value-based pricing? Ch. 4: A pricing system based upon a buyer's view of product or service value 7.What is the term used to describe the pricing system in which all customers are charged the same price at all times? Ch. 4: Fixed Pricing 8.What is the economic term used to describe the difference between what a consumer is charged for a product or service and the price that the 2 consumer would willingly pay for it? Ch. 4: Consumer Surplus 9.What is the purpose of a price fence or barrier? Ch. 4: To identify who is and who is not eligible for a special pricing offer 10.The premium prices charged for dinner served at the restaurant Le Jules Vernes on the second level of the Eifel Tower in Paris, France can be attributed, in part, to which type of differential pricing strategy? Ch. 4: Pricing based on Location 11.What is the name for the value given up by a buyer and seller in a business transaction? Ch. 2: Price 12.Charging guests for watching a Pay-Per-View movie in their hotel gue- stroom is an example of what type of pricing? Ch. 2: Two-tiered Pricing 13.What is the revenue management term used to describe the perceived benefit gained, MINUS the price paid, in a business transaction? Ch. 2: Value 14.Which one of the following terms is NOT one of the 4 P's of the Marketing Mix? Ch. 2: Proposition 15.In a hospitality industry break-even analysis graph the Total Revenues line starts at 0. Why does the Total Costs line always start farther up the Y 5 As C decreases, D increases 26.The individual or team responsible for ensuring that a company's prices match a customer's willingness to pay. These techniques are always cus- tomer-needs driven, not company-needs driven. Ch. 1: Revenue Manager 27.A revenue management philosophy that places customer gain ahead of short-term revenue maximization in revenue management decision making. Ch. 1: Customer-Centric Revenue Management 28.The total amount of sales achieved in a specified time period. is calculated as: Number of units sold X Unit price = Ch. 1: Revenue 6 29.1. Understand the importance of revenue management 2. Understand the many complex factors that influence revenue management strategy and tactics 3. Become better at making revenue management decisions than their com- petitors Ch. 1: Effective Managers of an organization's revenues MUST do 3 things: 30.In any rational business transaction, both the buyer and the seller seek a: Ch. 1: PROFIT 31.The net value achieved by a seller and a buyer in a business transaction. Ch. 1: Profit 32.Total Period Revenue/# of Available Seats X Hours of Seat Availability: - RevPASH 33.User-Generated Content (UGC): STAR Reports 34.This is the average gross operating profit (GOP) generated by each avail- able guest room during a specific period of time.: GOPPAR 35.Total Rev.-Mgmt. Controllable Expense/Total Rooms Available for Sale: - GOPPAR 36.Average revenue generated by each occupied guest room during a specific period of time. Total Rev/Total Occupied Rooms=: RevPOR 7 37.It is the average revenue generated by each available guest room during a specific period of time.: RevPAR 38.The two formulas yield identical results and are: ADR X Occupancy % OR Total Rev/Total Rooms Available for Sale: RevPAR 39.The average (mean) selling price of guest rooms during a specific time period, such as a day, week, month, or year. Total Revenue/Total Rooms Sold- : Average Daily Rate 40.# of Rooms Sold during a specific time period; expressed as a % of ALL Rooms Available to sell during that same period.: Occupancy % 41.Total rooms sold/ total rooms available: Occupancy % 42.The condition that exists when sellers cannot readily increase the amount of products or services available for sale when consumer demand for them increases.: Constrained Supply 43.Selling Price - Costs= Organizational Profit (Tangible Benefit) Ch. 3: Seller's View of a Sale 44.Perceived Value (An Intangible Benefit) - Selling Price= Personal Profit: -