REVENUE MANAGEMENT FINAL EXAM Questions And Correct Answers Verified Latest 2024-2025 Gu, Exams of Marketing Management

Download REVENUE MANAGEMENT FINAL EXAM Questions And Correct Answers Verified Latest 2024-2025 Gu and more Exams Marketing Management in PDF only on Docsity! P ag e1 REVENUE MANAGEMENT FINAL EXAM Questions And Correct Answers Verified Latest 2024-2025 Guaranteed Pass Grade A + UPDATED!! Revenue management is selling the right _______ to the right _________ at the right ________ for the right ________ - ---CORRECT ANSWER-->Product, Customer, Time, Price Maximize revenue by optimizing capacity, rates and prices and distribution under current and future demand/supply MARKET condition - ---CORRECT ANSWER-->Revenue/Yield Management The most important revenue management feature is - ---CORRECT ANSWER-->Demand Forecasting What is the main reason that travelers today have more clout than ever before? - ---CORRECT ANSWER-->They have information on virtually everything at their fingertips 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? A. Sales & amp B. Financial Management C. Logistics Management D. Operations Management - ---CORRECT ANSWER-->Logistics Management P ag e2 Which of the following is NOT a criterion needed for an industry to unlock the full potential of revenue management? A. low fixed costs and high variable costs B. a perishable primary product C. fixed-capacity environment D. varied but predictable demand - ---CORRECT ANSWER-->Low fixed costs and high variable costs If a 300-room hotel achieves 70 percent occupancy for April at an ADR of $153 per room, what will room revenue equal? A. $32,130 B. $963,900 C. $1,377,000 D. $3,213 - ---CORRECT ANSWER-->$963,900 ((300x153x.7)(30 # of days in April)) The Hurdle Rate is...? - ---CORRECT ANSWER-->The Lowest Rate for a Given Day 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...? - ---CORRECT ANSWER-- >Capacity Utilization x Average Revenue per Service Transaction Revenue management is a set of revenue maximization strategies and tactics that: - ---CORRECT ANSWER-->can be used to improve the profitability of certain businesses Revenue Management is a computer system and is price discounting. A. True B. False - ---CORRECT ANSWER-->False (RM is much more than a computer system and about discounting. In fact RM is responsible for increasing rates/fares/prices.) P ag e5 Which of the following is a measure of cost efficiency? A. Occupancy Percentage B. GOPPAR C. ADR D. RevPAC - ---CORRECT ANSWER-->GOPPAR What do KPI's stand for? - ---CORRECT ANSWER-->Key Performance Indicators What does GOPPAR stand for? - ---CORRECT ANSWER-->Gross operating profit for a period If a 300-room hotel achieves 70 percent occupancy for April at an ADR of $153 per room, what will room revenue equal? - ---CORRECT ANSWER-->$963,900 On a sold out Friday night at the 95 room Palm Court Hotel, room revenue was $7,505. Calculate revenue per available rooms. - --- CORRECT ANSWER-->$79 The rooms revenue for Monday night at the Palm Court Hotel was $6,486 with 94 rooms sold. This hotel Occupancy percentage was 92%. Calculate the average daily rate for Monday evening and choose the correct answer. - ---CORRECT ANSWER-->$69 If room revenue is $75,884 and the total number of rooms sold is 662 then Average Daily Rate (ADR) is - ---CORRECT ANSWER-->$114.63 A given hotel's comp set should contain all other hotels: - ---CORRECT ANSWER-->That compete for the same guests or market segments Which of the following statements is FALSE? P ag e6 A) Competitive sets can change with new ownership or changes in the environment. B) It is usually easier and cheaper to down-market a property than to conduct a major overhaul. C) Most Internet searches are organic with results based solely on relevant search criteria. D) Brand affiliation can help a hotel property connect with its customers. - ---CORRECT ANSWER-->C If a Hotel has a capacity share of 12.7% and a rooms night share of 11.8% that means that the hotel - ---CORRECT ANSWER-->Did not get their fair share of rooms for the night In a 1050-room competitive set, Hotel A has 300 rooms. Hotel B has 350 rooms, and Hotel C has 400 rooms. During a recent 30-day period in which the entire competitive set sold 25,400 rooms, Hotel A sold 8,000 rooms. Which of the following statements is indisputably TRUE? - ---CORRECT ANSWER-->Hotel A exceeded its fair share Which of the following statements about market intelligence is FALSE? A. Each market intelligence provider generally has a competitive strength. B. An effective revenue manager usually purchases all available relevant market intelligence. C. Market intelligence is available for both macro- and micro-market information. D. Revenue managers must analyze and interpret market intelligence. - ---CORRECT ANSWER-->B In a 1050-room competitive set, Hotel A has 300 rooms. Hotel B has 350 rooms, and Hotel C has 400 rooms. During a recent 30-day period in which the entire competitive set sold 25,400 rooms, Hotel A sold 8000 rooms. Which of the following statements is indisputably TRUE? P ag e7 A. Both Hotel B and Hotel C achieved their fair shares. B. Neither Hotel B nor Hotel C achieved its fair share. C. Hotel A failed to achieve its fair share. D. Hotel A exceeded its fair share. - ---CORRECT ANSWER-->D (remember that if a property's Capacity Market Share is LOWER than the property's Room Nights Share then the hotel DID GET their Fair Share.) Hotel nr. Rooms: 70 rooms; Total nr. rooms a year: 25,550 (70 rooms times 365 days in a year); Occupancy %: 75-percent occupancy; Nr. Occupied rooms: 19,163. Rooms revenue: $1,300,018; Average Daily Rate: $67.84. What's the hotel's RevPar? - ---CORRECT ANSWER-->$50.88 Average daily room rate is - ---CORRECT ANSWER-->Room revenue divided by number of rooms sold Gross operating profit per available room equals the Gross operating profit for a period divided by the ___________________? - ---CORRECT ANSWER-->Available rooms during that period Refers to the portion of the total market capacity that each hotel contributes - ---CORRECT ANSWER-->Capacity Market Share A long-term forecast of demand is based on: A. Gross domestic product B. The disposable income of feeder markets C. A given hotel's past performance D. All of the above - ---CORRECT ANSWER-->D P ag e1 0 D. Tour operators or Travel agents - ---CORRECT ANSWER-->Catering Managers 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 of the following is NOT another term for the rack rate? A. the posted rate B. the walk-in rate C. the premium rate D. the hurdle rate - ---CORRECT ANSWER-->D A revenue manager notices that the hotel is filling up rapidly for a future date. In response, she decides to close a discount level for that day. This is an example of: - ---CORRECT ANSWER-->Demand-based dynamic pricing What is the lodging industry term for the situation that occurs when a hotel is unable to accommodate a guest's reservation preference due to the unavailability of the room or service at the price, or on the date, originally requested by the guest? - ---CORRECT ANSWER-->Denied (reservation) What is NOT part of the results or goals of Tactical Discounting? - --- CORRECT ANSWER-->Increases your property revenues, RevPAR and profitability The steps of an RRM program include: A. implementing and monitoring solutions P ag e1 1 B. all of the above C. analyzing information and developing appropriate solutions D. collecting data E. establishing the baseline - ---CORRECT ANSWER-->B A process flow diagram: A. helps to identify potential redundancies in a service system B. helps to identify potential gaps in a service system C. traces how object move through a system D. all of the above E. is useful when movement is a large part of system operations - --- CORRECT ANSWER-->D Much of the data required to perform an RRM analysis can be obtained through: A. POS B. none of the above C. Manual collection D. all of the above E. Observation - ---CORRECT ANSWER-->D The bottleneck activity of a service delivery system has the: - --- CORRECT ANSWER-->Lowest throughput rate Which is NOT a condition necessary for the successful application of RM to a service business: A. low fixed and high variable costs B. time-variable demand C. relatively fixed capacity D. segmentable markets E. perishable inventory - ---CORRECT ANSWER-->A P ag e1 2 When RevPASH is low, RRM strategies to use include all of the following except: A. Suggestive selling B. Couponing C. Overbooking D. Promotions E. Bundling - ---CORRECT ANSWER-->C Restaurant Revenue Management primarily focuses on front-of-house operations. However, other aspects of running a restaurant are also tied to RRM. These are: A. All of the above B. Customer service C. Marketing D. Back-Off-House Operations E. Staffing - ---CORRECT ANSWER-->A 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? A. analyzing and retooling check delivery and payment procedures B. investing in condiment holders for tables C. issuing a coupon for an late breakfast special D. offering a limited menu E. streamlining and standardizing bussing and seating procedures - --- CORRECT ANSWER-->C 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: - ---CORRECT ANSWER-->$9.92 ($6,000,000 ÷ 210 * 360 * 8 = $9.9206)