REVENUE MANAGEMENT FINAL, Exams of Business Economics

Download REVENUE MANAGEMENT FINAL and more Exams Business Economics in PDF only on Docsity! REVENUE MANAGEMENT FINAL This formula represents a buyers view of a sales transaction? - Answers -Perceived Value-Selling Price=Personal Profit Effective revenue managers use this to best develop and evaluate their organizations pricing and revenue management strategies and tactics. - Answers -Regular Strategy meetings A pricing system based upon a buyers view of product or service value - Answers - Value-based pricing Included in the Place portion of a hotel's markieting mix - Answers -Distribution channels Tasha's hotel sold 175 rooms last night at an ADR of 200.00. Her hotel has 250 rooms. What was the RevPAR? - Answers -140.00 The term used to describe efforts undertaken to encourage travel and tourism to a specific geographic area or attraction - Answers -Destination marketing. An appropriate selling price for a product or service must dictate its allowable costs. - Answers -TRUE (A + B) - C = D - Answers -As C decreases, D increases What differential pricing strategy would in most cases be illegal or unethical if implemented? - Answers -Pricing based on the ethnicity of the buyer. 50 rooms per week for the next 52 weeks, each room rented two days at a time. How many room nights - Answers -5,200 Next week-end demand for her rooms(500)will exceed the number of rooms available for sales. Which high demand pricing strategy will optimize revenue for her property? - Answers -Implement a differential pricing strategy and allocate the limited supply to those market segments who value the room most highly Revenue management seeks to maximize income while revenue optimization seeks to maximize long-term profits. - Answers -TRUE Intangibility - Answers -Refers to the fact that service most often cannot be held, touched, or even seen before they are purchased. What is the fundemental assumption upon which the Law of Supply is based? - Answers -The higher the demand for a product the more of it will be produced by sellers 100 hotel rooms to sell. Saturday night has enough customers to sell 125 rooms so she will be refusing 25 requests for rooms` - Answers -Constrained supply GOPpar - Answers -=Total(rooms + non Rooms)revenue/Total occupied rooms Donna is a hotel revenue manager preparing next year's rooms forecast. donna knows that in Nov. of next year a new hotel is opening near her own. As a result, she is considering reducing her rooms forecast for that month. If she does so, what data type will she primarily be using to make her decision? - Answers -Future Data For revenue managers working in the lodging industry the term "Place" in the 4ps of marketing mix refers to items. One is the physical location of the hotel. What is the second? - Answers -The property's distribution channel A Front Desk Agent is NOT a hotel intermediary. - Answers -TRUE One consistant characteristic of desirable room revenue is - Answers -It leads to Higher GOPPAR levels What strategy should be put into action when revenue managers implement special events rates/ - Answers -Enhance guest value by providing product and/or service enhancements. What would be the result of a revenue manager's successful implementation of aggressive strategies designed to shift guests future bookings from more expensive distribution channels to lesser expensive channels? - Answers -Increased Net ADR yield, increased GOPPAR It is near the end of the month and Tamika is a revenue manager considering the impact of selling 200 room nights, for use this month, but at a room rate far below her hotels average room rate. what would be the impact on her hotel's operating statistics if she make this sale" - Answers -Increased RevPAR and reduced flow-thru % Price - Answers -is not typically used by revenue managers to designate specific room products sold in their hotels. Last month Carls hotel ran a 55% occupancy. His comp. set had 50,000 room nights available for sale and sold 25,000 rooms. What was Carl's occupancy index last month? - Answers -110% Peggy is the revenue manager at a 1500 room hotel. For next Friday Peggy's PMS shows 300 check-outs, 900 stayovers, 250 transient arrivals and 200-room group block that begins a three-day stay on that day. What is Peggy's current rooms available for sale for next Friday? - Answers -150