REVENUE MANAGEMENT FINAL EXAM QUESTION & ANSWERS 2024. (2025)

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REVENUE MANAGEMENTFINAL EXAM QUESTION & ANSWERS 2024."What is the industry term for a customer group which can be readily identified by one or more common characteristics? - CORRECT ANSWER Market Segment""What is rack rate? - CORRECT ANSWER The price of rooms when no discounts of any type...

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REVENUE MANAGEMENT FINAL EXAM QUESTION & ANSWERS 2024. (1)

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  • January 21, 2025
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  • 2024/2025
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REVENUE MANAGEMENT FINAL EXAM QUESTION & ANSWERS 2024. (2)

Andreas4114

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REVENUE MANAGEMENT
FINAL EXAM QUESTION & ANSWERS 2024.
"What is the industry term for a customer group which can be readily identified by one or more
common characteristics? - CORRECT ANSWER Market Segment"

"What is rack rate? - CORRECT ANSWER The price of rooms when no discounts of any type are
offered"
"Charging guests for watching a "Pay-Per-View" movie in their hotel guestroom is an example of what
type of pricing? - CORRECT ANSWER Two-tiered pricing"

"What is an algebraic equivalent of the formula: Sales = Costs + Profit? - CORRECT ANSWER Profit =
Sales - Costs"

"What is the name for the net value achieved by both parties in a business transaction? - CORRECT
ANSWER Profit"

"What element is not present in a barter economy? - CORRECT ANSWER Money"

"What is the economic term used to describe the difference between what a consumer is charged for a
product or service and the price that consumer would willingly pay for it? - CORRECT ANSWER
Consumer surplus"

"What is the relationship between differential pricing and consumer surplus? - CORRECT ANSWER
Differential pricing is a strategy used by sellers to minimize consumer surplus"

"What is the formula used to calculate an owner's ROI? - CORRECT ANSWER Owner's Investment
Return / Owner's Original Investment = Owner's Return on Investment"

"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? - CORRECT ANSWER Constrained
Supply"

"Which industry was the first to use Yield Management principles? - CORRECT ANSWER Airline"

"What is the industry term used to describe the selling of rooms which are not actually available for
sale? - CORRECT ANSWER Overbooking"

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,"What is the formula used to calculate Average Daily Rate? - CORRECT ANSWER Total Room's Revenue
/ Total Rooms Sold = Average Daily Rate"

"Tashia's hotel sold 175 rooms last night at an ADR of $200.00. Her hotel has 250 rooms. What was
Tashia's occupancy % last night? - CORRECT ANSWER 70%"

"Tashia's hotel sold 175 rooms last night at an ADR of $200.00. Her hotel has 250 rooms. What was
Tashia's RevPAR last night? - CORRECT ANSWER $140.00"

"What is the industry term for the average revenue generated by each occupied guestroom during a
defined period of time? - CORRECT ANSWER RevPOR"

"What is the formula used to calculate GOPPAR? - CORRECT ANSWER (Total Revenue - Management
Controllable Expenses) / Rooms Available to Sell = GOPPAR"

"What is:
Total period revenue
(Number of available seats) x (hours of seat availability) - CORRECT ANSWER The formula for
RevPASH"

"What is the term used to identify a management philosophy that places customer gain ahead of short-
term revenue maximization in revenue management decision making? - CORRECT ANSWER Customer-
centric revenue management"

"What is the term used to describe the potential customers to whom a business's marketing activities
and messages are directed? - CORRECT ANSWER The target market"

"What is the term used to describe efforts undertaken to encourage travel and tourism to a specific
geographic area or attraction? - CORRECT ANSWER Destination Marketing"

"What is the name for the value given up by a buyer and a seller in a business transaction? - CORRECT
ANSWER Price"

"What is the fundamental assumption upon which the concept of consumer rationality is based? -
CORRECT ANSWER Buyers act in ways that are of personal benefit to them"

"What is the revenue management term used to describe the perceived benefit gained, minus the price
paid, in a business transaction? - CORRECT ANSWER Value"

"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? - CORRECT ANSWER A value proposition"

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, "Which one of the following terms is not one of the 4 Ps of the Marketing Mix? - CORRECT ANSWER
Proposition"

"Which of the following terms would be included in the Place portion of a hotel's marketing mix? -
CORRECT ANSWER Distribution Channels"

"What is the fundamental assumption upon which the Law of Supply is based? - CORRECT ANSWER
The higher the demand for a product the more of it will be produced by sellers"

"According to Alfred Marshall's work, if the price of a product is lower than the natural, or equilibrium
price, what will happen? - CORRECT ANSWER The demand fort he product would exceed its supply"

"Assume an equilibrium price (P1) is in place for a product. What would the law of supply and demand
predict as an outcome if demand for that product increased? - CORRECT ANSWER The new price (P2)
would be lower than the previous price (P1) because supply would decrease"

"What concept is displayed by the intersecting point on a supply and demand curve? - CORRECT
ANSWER An estimate of the amount of a product that would be purchased at a known price and point
in time"

"What must be true if a product producer is to continue creating and selling products? - CORRECT
ANSWER Revenues must exceed costs"

"What is the specialized branch of accounting that focuses on recording and analyzing the expenses
incurred by an organization? - CORRECT ANSWER Cost Accounting"

"What is the industry term for the point at which an organization's revenues exactly equal its costs? -
CORRECT ANSWER Break-even point"

"Which of the following foodservice costs is a variable cost? - CORRECT ANSWER Food"

"Which of the following lodging costs is a fixed cost? - CORRECT ANSWER Mortgage payments"

"In a hospitality industry break-even analysis graph the Total Revenues line starts at 0. Why does the
Total Costs line always start farther up the y axis? - CORRECT ANSWER Because fixed costs are
incurred even if no guests are served or rooms are sold"

"Which of the following statements about unit costs in the hospitality industry is true? - CORRECT
ANSWER Unit costs will vary based upon how high or low an item is priced"

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REVENUE MANAGEMENT FINAL EXAM QUESTION & ANSWERS 2024. (2025)
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