Revenue Management Strategies and Tactics in the Hospitality Industry, Exams of Business Economics

Download Revenue Management Strategies and Tactics in the Hospitality Industry and more Exams Business Economics in PDF only on Docsity! HM 441 Exam Questions with Verified Answers 2024 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 includes a multidisciplinary management techniques applied to several sub-sectors of the hospitality. Which of the following is NOT one discipline within revenue management? - CORRECT ANSWER Logistics Management What is the main reason travelers today have more clout than ever before? - CORRECT ANSWER They have information on virtually everything at their fingertips Revenue Management is a computer system and is price discounting. - CORRECT ANSWER False Identify which of these is not a positive of using revenue management strategies and tactics: - CORRECT ANSWER Motivate employees To interpret measures of a hotel's performance, managers often compare those measures with: - CORRECT ANSWER historical figures, industry or sector averages and budget for the next period A benefit of variable pricing within revenue management is the smoothing of demand. - CORRECT ANSWER True 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 Which of the following statements about hotel revenue management is false? - CORRECT ANSWER Revenue management is new, as are all of the strategies that are employed to maximize profit When the American Airlines CEO developed yield management, what type of information was crucial to its success? - CORRECT ANSWER Forecasting Throughput time measures: - CORRECT ANSWER the time a customer spends in the system from enter to exit The steps of an RRM program include: - CORRECT ANSWER Establishing the baseline Collecting Data Analyzing information and developing appropriate solutions Implementing & monitoring solutions If a restaurant had an overall average RevPASH of $14 and an overall seat occupancy of 66%, its average check would be: - CORRECT ANSWER $21.21 Which of these activities is the bottleneck and why? - CORRECT ANSWER Taking the order, because its throughput rate is lowest 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? - CORRECT ANSWER issuing a coupon for a late breakfast special Time-variable demand means: - CORRECT ANSWER Different market segments use a service at different times A process flow diagram: - CORRECT ANSWER helps identify potential gaps useful when movement is a large part os system operations helps to identify potential redundancy in a service system traces how object move through a system Which is NOT a condition necessary for the successful application of RM to a service business: - CORRECT ANSWER low fixed and high variable costs The bottleneck activity of a service delivery system has the: - CORRECT ANSWER lowest throughput rate