Download Revenue Management in the Hospitality Industry and more Exams Business Accounting in PDF only on Docsity! chapter 2 rev management 18 Questions with Answers 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 Rooms Revenue/Number of Rooms Sold = $6,486 / 94 = $69.00 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? - CORRECT ANSWER 92.5% 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 What are the margin for a room night at a property with the following costs: Occupancy $25.75, administrative $19.25 and fixed cost of $32.00 and a room rate of $89.00? - CORRECT ANSWER Total room revenue- total costs =$12.00 occupancy percentage x100 = - CORRECT ANSWER room nights sold in a period / room nights available in that period Gross operating profit per available room equals the Gross operating profit for a period divided by the ___________________? - CORRECT ANSWER Available rooms during that period 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 RevPAR stands for Occ. x ADR. So it's: $67.84 x 75%. What is NOT part of the Revenue Management Key Performance Indicators (KPI) you can research to determine past performance? - CORRECT ANSWER Net Revenue Consider a small 42 rooms & suites boutique hotel with the following rooms sales: 14 Regular Rooms at Corporate Rate @ $120/night. 12 Regular Rooms at Rack Rate @ $165/night. 1 Suite @ Rack Rate $200, 1 Presidential Suite @ $250. Calculate its Rooms Revenue (RRev), ADR, Occ and RevPAR and choose the correct answer from below. - CORRECT ANSWER RRev $4,110 / ADR $146 / Occ. 66.67% / RevPAR $97.85 Which 100-Room Hotel would you rather manage? - CORRECT ANSWER Hotel A: Average Rate=$ 240 ; Occupancy= 80%; a higher ADR and a higher OCC% usually generates the highests RevPAR and the most profit To interpret measures of a hotel's performance, managers often compare those measures with - CORRECT ANSWER Industry or sector averages The budget for the period Historical figures from comparable earlier periods at the hotel All the above On Wednesday, 86 of the Palm Court Hotel's 95 rooms were occupied. It's Average Daily Rate (ADR) was $99. Calculate the occupancy percentage. - CORRECT ANSWER 90.53% (= 86 / 95) A benefit of Revenue Management (RM) variable pricing is the smoothing of demand. - CORRECT ANSWER true 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 (= $7,505 / 95) Which of the following is a measure of cost efficiency? - CORRECT ANSWER GOPAR (gross operating profit per available room)
