REVENUE MANAGEMENT FINAL EXAM 2024 STUDY QUESTIONS WITH ANSWERS GUARANTEED PASS | RATED A+, Exams of Managerial Economics

Download REVENUE MANAGEMENT FINAL EXAM 2024 STUDY QUESTIONS WITH ANSWERS GUARANTEED PASS | RATED A+ and more Exams Managerial Economics in PDF only on Docsity! REVENUE MANAGEMENT FINAL EXAM 2024 STUDY QUESTIONS WITH ANSWERS GUARANTEED PASS | RATED A+ What is the main reason that travelers today have more clout than ever before? - Answer>>> They have information on virtually everything at their fingertips. Revenue Management is NOT necessarily about... - Answer>>> Achieving 100 % occupancy and a perfect science The Hurdle Rate is...? - Answer>>> The Lowest Rate for a Given Day A benefit of variable pricing within revenue management is the smoothing of demand. T/F - Answer>>> True Revenue management is a set of revenue maximization strategies and tactics that... - Answer>>> can be used to improve the profitability of certain businesses. In January, the 200-room SnowBound Inn ran a skiers special that resulted in them selling 5,735 rooms during the month. What was the occupancy percentage for the month? - Answer>>> Occupancy % = Room nights sold in a period / Room nights available in that period Answer: 5,735 / (200x31) = 5,735 / 6,200 = 92.5% When the American Airlines CEO developed yield management, what type of information was crucial to its success? - Answer>>> forecasting The goal of revenue management is to MAXIMIZE REVENUE per Available Time-Based Inventory Unit (or RevPATI). RevPATI formula applied to all industries translates into...? - Answer>>> Capacity Utilization x Average Revenue per Service Transaction Which of the following is NOT a criterion needed for an industry to unlock the full potential of revenue management? - Answer>>> low fixed costs and high variable costs To interpret measures of a hotel's performance, managers often compare those measures with: - Answer>>> industry or sector averages, the budget for the period, and historical figures from comparable earlier periods at the hotel. Which of the following statements about hotel revenue management is FALSE? - Answer>>> Revenue management is new, as are all of the strategies that are employed to maximize profit. Revenue Management includes a multidisciplinary management techniques applied to several sub-sectors of the hospitality. Which of the following is NOT one discipline within Revenue Management? - Answer>>> Logistics Management Identify which of these is not a positive of using revenue management strategies and tactics: - Answer>>> Motivate employees If a 300-room hotel achieves 70 percent occupancy for April at an ADR of $153 per room, what will room revenue equal? - Answer>>> $963,900 What is the main reason that travelers today have more clout than ever before? - Answer>>> They have information on virtually everything at their fingertips. Revenue management can be defined as - Answer>>> A set of strategies and techniques used to sell the right product, to the right customer, at the right time and at the right prices. When might a revenue manager choose without questions to accept a less profitable group booking over more profitable transient business? - Answer>>> The group is a regular customer of the hotel or a key account group from your comp set. What information is needed to calculate a net room rate? - Answer>>> room rate, variable costs, and all costs and fees that apply to the booking An individual traveling, dining, attending a game or performance, or staying alone is usually referred to as a ______________. This type of guest may be also be defined as an individual hospitality customer. Think of a single person purchasing an airline seat, a meal, a ticket, or a hotel room; in RM we call this type of customer a: - Answer>>> Transient Displacement Analysis can determine the quantifiable benefits of different options. However it needs to have the right circumstances. When is it appropriated? - Answer>>> When a reliable forecast indicates that there's more demand than our capacity, it will be a period of high demand Which of the following is NOT a question that any Customer Relationship Management (CRM) system helps to answer of interest to a revenue manager? - Answer>>> How do I forecast the best customers? What is a successful positioning strategy based on? - Answer>>> a set of competitive advantages In Strategic Revenue Management as in Strategic Marketing, not everyone is a potential customer. Why? Due to... - Answer>>> Hotels target markets Market segments are: - Answer>>> groups that share commons needs and buying habits The major traditional market segmentation variables are geographic, demographic, psychographic, and behavioral traits and price-sensitivity. Which of these considers criteria such as social class, personality and lifestyle? - Answer>>> Psychographic What is a successful positioning strategy based on? - Answer>>> a set of competitive advantages Which of the following traits are considered to be part of psychographic segmentation? - Answer>>> Lifestyle and personality Which of the following is considered a non-physical rate fence? - Answer>>> booking channel What is the goal of rate parity? - Answer>>> To charge the same price for the same room regardless of booking channel. What revenue stream in a hotel - excluding casino hotels - typically has the highest contribution margin? - Answer>>> Rooms Which of the following is not one example of an internal packaging component? - Answer>>> Theatre Tickets What's not part of a Hotel Package Development Information? - Answer>>> None of the above What is the goal of rate parity? - Answer>>> To charge the same price for the same room regardless of booking channel. Which is not a key category of Rate Fence? - Answer>>> Non-physical fence related to buyer racial profile e.g. Asian versus Caucasian The basic purpose of packaging is to: - Answer>>> does not reveals the individual price of the different components so it create a perception of value. A positive aspect of matching competitors' prices is which of the following? - Answer>>> it drives the choice to other differentiators or competitive advantages. What is a potential drawback of competing solely based on offering the lowest price? - Answer>>> Price-driven guests are loyal to lowest prices, not the hotel offering them; Any competitor can beat a low price if it wants to; Other ways of generating demand are more profitable and sustainable..... All of the Above Restaurant Revenue Management primarily focuses on front-of-house operations. However, other aspects of running a restaurant are also tied to RRM. These are: - Answer>>> All of the above If a 210-seat restaurant is open 360 days a year for 8 hours a day and has total annual revenue of $6,000,000. Its RevPASH is: - Answer>>> $6,000,000 ÷ 210 * 360 * 8 = $9.9206 $9.92 A process flow diagram: - Answer>>> all of the above A diner has an average dining duration of 36 minutes at breakfast time. The standard deviation of dining duration is 5 minutes. Which of these RRM solutions would NOT help decrease the variation in duration? - Answer>>> issuing a coupon for an late breakfast special For the this question, consider this table: Table Size (tops or NR of seats) 2 48Total Tables Available 614 2 Seats Available Seats Used 62515 46 Tables Used 382 13 Seat Occupancy Table Occupancy The overall seat occupancy and overall table occupancy for the restaurant are: - Answer>>> seat occupancy percentage = (Total Nr. of Seats Used ÷ Total Nr. of Seats Available) x 100 =46 ÷ [(6 tables x 2 seats)+(14 tables x 4 seats) + (8 tables x 2 seats)] = (46 ÷ 84) x 100 = 54.8% table occupancy percentage = (Total Nr. of Tables Used ÷ Total Nr. of Tables Available) x 100 = (13 ÷ 22) x 100 = 59.1% 54.8% and 59.1% Throughput time measures: - Answer>>> the time a customer spends in the system from enter to exit If a restaurant had an overall average RevPASH of $14 and an overall seat occupancy of 66%, its average check would be: - Answer>>> $21.21 RevPASH = Av.Check x Occ. So $14 ÷ 66% = $21.21 The throughput rates for the three major processes that make up a service delivery system are provided below. ActivityTake OrderAssemble OrderDeliver OrderThroughput rate (customers/min)1.21.92.1 Which of the activities is the bottleneck and why? - Answer>>> Taking the order, because its throughput rate is lowest. Time-variable demand means: - Answer>>> different market segments use a service at different times