Revenue Management in the Hospitality Industry, Exams of Nursing

Download Revenue Management in the Hospitality Industry and more Exams Nursing in PDF only on Docsity! HM 441 Exam #1|65 Questions with Answer 2023 Product, Customer, Time, Price - CORRECT ANSWER Revenue management is selling the right _______ to the right _________ at the right ________ for the right ________ Revenue/Yield Management - CORRECT ANSWER Maximize revenue by optimizing capacity, rates and prices and distribution under current and future demand/supply MARKET condition Demand Forecasting - CORRECT ANSWER The most important revenue management feature is They have information on virtually everything at their fingertips - CORRECT ANSWER What is the main reason that travelers today have more clout than ever before? Logistics Management - CORRECT ANSWER 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 Low fixed costs and high variable costs - CORRECT ANSWER 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 $963,900 ((300x153x.7)(30 # of days in April)) - CORRECT ANSWER 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 The Lowest Rate for a Given Day - CORRECT ANSWER The Hurdle Rate is...? Capacity Utilization x Average Revenue per Service Transaction - CORRECT ANSWER 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...? can be used to improve the profitability of certain businesses - CORRECT ANSWER Revenue management is a set of revenue maximization strategies and tactics that: False (RM is much more than a computer system and about discounting. In fact RM is responsible for increasing rates/fares/prices.) - CORRECT ANSWER Revenue Management is a computer system and is price discounting. A. True B. False 92.5% occupancy rate (200 rooms x 31 days in January= 6,200 rooms) (5,735 rooms sold/ 6,200 rooms available that month= 92.5%) - CORRECT ANSWER 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? Motivate employees - CORRECT ANSWER Identify which of these is not a positive of using revenue management strategies and tactics: Calculate the average daily rate for Monday evening and choose the correct answer. $114.63 - CORRECT ANSWER If room revenue is $75,884 and the total number of rooms sold is 662 then Average Daily Rate (ADR) is That compete for the same guests or market segments - CORRECT ANSWER A given hotel's comp set should contain all other hotels: C - CORRECT ANSWER Which of the following statements is FALSE? 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. Did not get their fair share of rooms for the night - CORRECT ANSWER If a Hotel has a capacity share of 12.7% and a rooms night share of 11.8% that means that the hotel Hotel A exceeded its fair share - CORRECT ANSWER 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? B - CORRECT ANSWER 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. 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.) - CORRECT ANSWER 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? 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. $50.88 - CORRECT ANSWER 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? Room revenue divided by number of rooms sold - CORRECT ANSWER Average daily room rate is Available rooms during that period - CORRECT ANSWER Gross operating profit per available room equals the Gross operating profit for a period divided by the ___________________? Capacity Market Share - CORRECT ANSWER Refers to the portion of the total market capacity that each hotel contributes D - CORRECT ANSWER 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 Accept the group reservation - CORRECT ANSWER 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: Disposable Income - CORRECT ANSWER Personal income minus income taxes equals D - CORRECT ANSWER Which of these statements is fully correct? A. Businesses that serve international customers must monitor similar products. B. Businesses that serve international customers must monitor employment rates. C. Businesses that serve international customers must monitor hotels failure rate.. D. Businesses that serve international customers must monitor currency exchange rates. 3% - CORRECT ANSWER Inflation affects how we measure growth. If a hotel raises its room rates by 5 percent during a period with a 2 percent inflation, its nominal growth is 5 percent, but its real growth is Discretionary Income - CORRECT ANSWER After customers have met their basic financial requirements, any remaining money is considered what? group members who check out early rather than stay the entire length of the event - CORRECT ANSWER Wash Factor is...? A facility is not able to accommodate a guest due to unavailability of product or service at that price. - CORRECT ANSWER 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: B - CORRECT ANSWER 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? A. Market B. Budget C. Revenue Management Tactic D. Forecast A - CORRECT ANSWER 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 C - CORRECT ANSWER 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 A - CORRECT ANSWER 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 C - CORRECT ANSWER 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 $9.92 ($6,000,000 ÷ 210 * 360 * 8 = $9.9206) - CORRECT ANSWER 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: