Test #1 (Ch 1., Ch 2, Ch 6) | HTM 4454 - Hospitality Revenue Management, Quizzes of Tourism Economics and management

Download Test #1 (Ch 1., Ch 2, Ch 6) | HTM 4454 - Hospitality Revenue Management and more Quizzes Tourism Economics and management in PDF only on Docsity! TERM 1 ADR (Average Daily Rate) DEFINITION 1 =Total Room Revenue / Total Room Sold TERM 2 ROI (Return on Investment) DEFINITION 2 =Owners Investment Return / Owners Original Investment TERM 3 RevPAR (Revenue Per Available Room) DEFINITION 3 =ADR X Occupancy %OR=Total Revenue / Total Rooms Available for Sale TERM 4 RevPASH (Revenue per Available Seat Hour) DEFINITION 4 =Total Period Revenue / (Number ofAvailableseats X hours Seat Available) TERM 5 GOPPAR (Gross Operating Profit per Available Room) DEFINITION 5 =(Total Revenue - Management Controllable Expenses) / TotalRoomsAvailablefor Sale TERM 6 % Change in Sales DEFINITION 6 = (Total Sales thisPeriod - Total Sales Last Period) / Total Sales Last Period TERM 7 Compset (competitive set) DEFINITION 7 a group of similar and directly competing lodging properties towhichan individualhotelsoperating performance iscompared TERM 8 Value Proposition DEFINITION 8 a statement describing the good or service to bereceivedand the price to be paid for it TERM 9 Consumer Rationality DEFINITION 9 the tendency to makebuyingdecisions based on the belief that the act is ofpersonalbenefit TERM 10 Overbooking DEFINITION 10 to accept reservations for more rooms than a hotel has available or in inventory TERM 21 Pace Report DEFINITION 21 a summary report describing the amount of future demand for a lodging properties room andotherservices and the rate at which that business is being captured TERM 22 Total Revenue DEFINITION 22 the industry term used to describe the sum of prices paid by a businesss customers TERM 23 Costs DEFINITION 23 Historically, the concept hospitality managers chiefly use to calculate their selling prices TERM 24 Sandy has 100 hotel 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 DEFINITION 24 constrained supply TERM 25 Which industry was the first to use Yield Management principles? DEFINITION 25 Airlines TERM 26 What is the industry term used to describe the selling of rooms which are not actually available for sale? DEFINITION 26 Overbooking TERM 27 Tashias hotel sold 175 rooms last night at an ADR of $200.00. Her hotel has 250 rooms. What was Tashias RevPAR last night? DEFINITION 27 $140.00 TERM 28 What is the industry term for the average revenue generated by each occupied guestroom during a defined period of time? DEFINITION 28 RevPOR TERM 29 What is the industry term for a customer group which can be readily identified by one or more common characteristics? DEFINITION 29 Market Segment TERM 30 What is a rack rate? DEFINITION 30 The price of rooms when no discounts of any type are offered TERM 31 What is: Total period revenue/ [(Number of available seats) x (hours of seat availability)] DEFINITION 31 RevPASH TERM 32 What is the term used to describe the potential customers to whom a businesss marketing activities and messages are directed? DEFINITION 32 Target Market TERM 33 What is the fundamental assumption upon which the concept of consumer rationality is based? DEFINITION 33 Buyers act in ways that are of personal benefit to them TERM 34 What is the revenue management term used to describe the perceived benefit gained, minus the price paid, in a business transaction? DEFINITION 34 Value TERM 35 What is created 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? DEFINITION 35 Value Proposition TERM 46 What is the lodging industry term for the situation that occurs when a hotel is unable to accommodate a guests reservation preference due to the unavailability of the room or service at the price, or on the date, originally requested by the guest? DEFINITION 46 Denied (reservation) TERM 47 Ray sold 100 rooms on Monday at an ADR of $150.00. He sold 150 rooms on Tuesday at an ADR of $200.00. What was his ADR for the combined days of Monday and Tuesday? DEFINITION 47 $180.00 TERM 48 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? DEFINITION 48 MLOS TERM 49 Amanda is the revenue manager of a hotel. When she opened her e-mail last Friday she found a message from the Executive Director of the state dental association asking Amanda for a formal price quote on rooms and meeting space needed by the association for their annual conference. What would Amanda call this inquiry? DEFINITION 49 RFP TERM 50 What is the 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 group rooms are currently being sold? DEFINITION 50 Pace Report TERM 51 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? DEFINITION 51 (Total Sales This Period - Total Sales Last Period) /Total Sales Last Period = % Change in Sales TERM 52 What is the primary reason for forecasting future room demand? DEFINITION 52 To make pricing-related decisions TERM 53 In the lodging industry, when is a guest considered to be an over-stay? DEFINITION 53 When the guest checks out of the hotel after his or her originally scheduled check-out date TERM 54 When might a revenue manager at a lodging facility be pressured to establish a long-term forecast that is unrealistically low? DEFINITION 54 When a significant financial incentive exists for exceeding the forecast TERM 55 In the lodging industry what factors would be overinflated to produce an unrealistically high RevPAR forecast? DEFINITION 55 ADR and/or Occupancy % TERM 56 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? DEFINITION 56 Eliminate discounts TERM 57 What is one consistent characteristic of desirable rooms revenue? DEFINITION 57 It leads to higher GOPPAR levels TERM 58 What are the three steps to Revenue Management DEFINITION 58 Forecast, Set Controls, Monitor TERM 59 What is included in the forecast stage? DEFINITION 59 predicting demand,revenueandpriceto some % of confidence TERM 60 What is included in setting controls? DEFINITION 60 set price, allocateunitstodistributionchannels at certainprices TERM 71 Parsimony DEFINITION 71 evaluation criteria used to evaluate forecasts, the leastcomplicated, thesimpleris better TERM 72 Robustness DEFINITION 72 evaluation criteria used to evaluate forecasts, not very sensitive to outliers TERM 73 Cost Criteria DEFINITION 73 evaluation criteria used to evaluate forecasts,development,dataand maintenance TERM 74 Acceptability DEFINITION 74 evaluation criteria used to evaluate forecasts, learning,confidenceetc.theaccuracyof forecast TERM 75 Tools to evaluate accuracy DEFINITION 75 error measures, out of sample measurement, Theil's U, Wikcokson test TERM 76 ME DEFINITION 76 Mean Error=(1/n)(sum. Errors)not good to use TERM 77 Error Units DEFINITION 77 =theforecasterror in period T is thedifferencesbetween the forecast F andactualA at T time period TERM 78 MAE DEFINITION 78 Mean Absolute Error (AbsoluteDeviation)- if not comparing information tootherhotels, this form issimplerand easier to understand=(1/n)(AbsoluteValue of sum. Errors) TERM 79 MSE DEFINITION 79 Mean Squared Error- the higher the error means thehigherthe punishment or answer is=(1/n)(sum. Errors)^2 TERM 80 RMSE DEFINITION 80 Root Means Squared Error=Sqr Root ((1/n)((sum. Errors)^2)) TERM 81 MAPE DEFINITION 81 Mean Absolute Percentage Error- very popular method- makes it possible tocomparedifferent properties that have different configuration and number of room=(1/n) ((AbsoluteValue of sum. Errors)/Actual at time T) TERM 82 what is the hold out sample DEFINITION 82 leaving out a set ofdatapoints to be used later to test the accuracy of our forecasting model (if you useall ofthe data points you could "over fit" the model and in turn get inaccurateinformation)