Revenue Management Final Study Guide, Exams of Nursing

Download Revenue Management Final Study Guide and more Exams Nursing in PDF only on Docsity! Revenue management final study guide passed exam ADR formula - >>>Total Rooms Revenue / Total Rooms Sold Value proposition - >>>when a seller communicates to a buyer a description of a product to be sold and the price at which that product will be sold Owners ROI formula - >>>Owners Investment Return/ Owner's Original Investment Profit - >>>net value achieved by both parties in a business transaction GOPAR formula - >>>Total revenue - Management Controllable Expenses / Rooms Available to sell Destination marketing - >>>used to describe efforts undertaken to encourage travel and tourism to a specific geographic area or attraction What is the fundamental assumption upon which the law of supply is based? - >>>The higher the demand for a product, the more of it will be produced by sellers What must be true if a product is to continue creating and selling products? - >>>Revenue must exceed costs T/F: Unit costs will vary based upon how high or low an item is priced? - >>>True Sandy has 100 hotels rooms to sell. This Saturday night has enough customers to sell 125 rooms so she will be refusing 25 requests for rooms. What is this an example of? - >>>Constrained supply What is an algebraic equivalent of the formula: Sales = Costs + Profit? - >>>Profit = Sales - Costs Price - >>>Value given up by a buyer and seller in a business transaction Cost Accounting - >>>the specialized branch of accounting that focuses on recording and analyzing the expenses incurred by an organization Rack rate - >>>the price of rooms when no discounts of any type are offered RevPOR definition - >>>average revenue generated by each occupied guests room during a period of time Costs - >>>What hospitality managers used to calculate their selling price What concept is displayed by the intersecting point on a supply and demand curve? - >>>An estimate of the amount of a product that will be purchased at a known price and point in time What element is not present in a barter economy? - >>>Money Total revenues - >>>used to describe the sum of prices paid by a business's customers Value - >>>perceived benefit - price Market segment - >>>term used to describe a customer group which can be readily identified by one or more common characteristics Consumer surplus - >>>the price - the price the consumer is willing to pay Rooms manager - >>>responsible for the housekeeping and front office areas Clayton Antitrust Act - >>>US legislation that prohibits legal discrimination in pricing Sherman Anti-trust Act - >>>US legislation that outlawed all contracts and conspiracies that unreasonably restrain interstate trade What vehicle do effective revenue managers use to best develop and evaluate their organizations pricing and revenue management strategies and tactics? - >>>Regular strategy meetings What is the formula revenue managers use to calculate the percentage change in sales which has occurred from the last accounting period to the present period? - >>>Total Sales This Period - Total Sales Last Period / Total Sales Last Period = % Change in Sales What is the most customer-centric strategy for revenue managers to employ if they seek to optimize ADR and RevPAR in periods of temporarily heightened demand? - >>>eliminate discounts cartel - >>>used to describe a consortium of independent organizations formed to limit competition by controlling the production, distribution and pricing of a product or service What two factors establish a restaurants weekly customer capacity? - >>># of seats and # of hours open per week What is the lodging industry term for a revenue management strategy that instructs reservationists to decline any room reservation request that does not equal or exceed the pre-determined minimum number of nights allowed? - >>>MLOS What is the primary reasoning for forecasting future room demand? - >>>to make prices Reference price - >>>The price perceived by consumers to be the normal price for a product or a service Controller - >>>Hospitality management position responsible for the accounting functions in a hotel Pace report - >>>Name for the rooms related report that would identify the number of group rooms currently on the books as well as the rate or speed at which groups are currently being sold What is one consistent characteristic of desirable rooms revenue? - >>>It leads to higher GOPAR "According to the most recent Hospitality Sales & Marketing Association International (HSMAI) survey, to whom do the largest percentage of hotel revenue managers report?" - >>>hotel GM What is true about proprietary websites administered by a hotel s franchisor? - >>>Content changes must be implemented by the brands managers Where on a hotel s statement of income and expense (income statement) does the 10th Edition of the Uniform System of Accounts for Lodging Industry (USALI) recommend travel agency commissions be recorded? - >>>rooms expense portion What are two synonymous lodging industry terms used to identify the difference between the purchases a group pledges to make and the purchases it actually makes? - >>>Attrition and Wash What two things does Place refer to in hotels - >>>location and distribution channel " To optimize revenues while enhancing property operations, which strategy pair should revenue managers seek to implement?" - >>>Maximization of room codes and minimization of rate codes Fade rate - >>>lower rate that is offered when a potential rooms buyer exhibits intial price resistance What is true about discounts offered on the selling price of hotel rooms? - >>>They should be easily explainable and defensible How are most CVBs in the United States funded? - >>>By a combination of hotel occupancy taxes and membership dues What strategy should be put into action when revenue managers implement special event rates? - >>>Enhance guest value by providing products/services enhancement Which of the following rooms marketing strategies would contribute to the commoditization of hotel rooms? - >>>Participation on a web site that lists only a hotels name and a single rack room rate room code - >>>A property-specific, shortened description used to identify a specific room product Which is most often true about room sales made by a hotel s group sales department? - >>>ADRs are higher than average, and Net ADR yield is lower than average For which distribution channel type do hotels typically employ a shopper s service? - >>>Sales made via the telephone What was the original purpose of THISCO? - >>>To develop a single GDS connection for major hotel companies What would be the effect of an upon-arrival inventory management training program that resulted in a hotel significantly up selling a large percentage of its arriving guest? - >>>ADR and RevPAR would increase, and occupancy would be unchanged In the hospitality industry what is the financial basis used for calculating the franchise fees or royalties that are paid to franchisors? - >>>An operations total revenue 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? - >>>Product versioning RevPASH formula - >>>seat utilizationns % X Check average Larissa is the corporate revenue manager for Sandstone hotels. She oversees 10 of her company s franchised properties. Which of the following is an example of Larissa s internal customers? - >>>Sandstone company controller What is the CVB structure - >>>A quasi governmental agency Probabilistic modeling - >>>The application of statistical formulas to past events for the purpose of predicting the likelihood of future events. "What is the role of a revenue manager within a franchise organization if that manager is assigned the task of assisting others within the same company in the their implementation of revenue management- related strategies, tactics and tasks?" - >>>Internal brand support It is Saturday night at 7:30 p.m. and Alexander s restaurant is slower than expected. Only 50% of its seats are filled. Gene, the manager, wants to increase revenue by offering a two-for-one special between 8:00 p.m. and 9:00 p.m. this same night. What will be Gene s greatest challenge in implementing this revenue optimization strategy? - >>>Ability to communicate efforts Brand consolidation - >>>shrinking number of alternative franchisors offering increasing numbers of franchise alternatives In the US what is the dominate vehicle used by governmental authorities to fund local area destination marketing efforts? - >>>A special tax on the sale of hotel rooms Which of the following revenue management activities would not be included in the typical job description of a revenue manager employed by a CVB? - >>>Product pricing Arbitrage - >>>the nearly simultaneous purchase of a product at a low price and reselling of it at a higher price with the intention of keeping the difference in price 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? - >>>Implement a differential pricing strategy and allocate the limited supply to those who value the rooms most highly Which components of the hotel industry s current reservation system currently offers its users the ability to simultaneously see comparative hotel rate information? - >>>The GDS and IDS What is true about a revenue manager s rooms demand forecast? - >>>It is based on customer demand at an established price In which situation would a customer-centric revenue manager likely implement a special event rate - >>>During a local festival that would fill all of the are hotels Net ADR yield Formula - >>>Net Room Rate / Standard ADR Net room rate formula - >>>Standard ADR - Distribution Channel Costs Last available - >>>A contract stipulation that requires a hotel to apply its contractually agreed on rate to any room type available at the time a contracted guest makes their reservation Which is most often true about room sales made by a hotels group sales department? - >>>ADRs are higher than average, and net ADR yield is lower than average CTA - >>>"Closed to arrival" hotel declines reservations for guests attempting to arrive on this specific date prime cost - >>>product and labor costs Which menu pricing system would utilize an operation s prime costs when calculating its selling prices? - >>>Product cost: plus 28-day accounting period - >>>name for the accounting device used by foodservice operators to divide their operating year into 13 equal time periods Occupancy % Formula - >>>Total rooms sold/ total rooms available for sale RevPAR formulas - >>>1. ADR X Occupanxy % or 2. Total revenue/total rooms available for sale Net ADR Yield - >>>Net Room Rate / Standard ADR