Revenue Management Final Exam | Latest with complete solution
Question 1: What is the industry term used to describe the
sum of prices paid by a business's customers?
CORRECT ANSWER : Total Revenues
Question 2: Historically, what concept have hospitality
managers chiefly used to calculate their selling prices?
CORRECT ANSWER : Costs
Question 3: What is an algebraic equivalent of the formula: Sales = Costs + Profit?
CORRECT ANSWER : Profit = Sales - Costs
Question 4: What is the name for the net value achieved by
both parties in a business transaction?
CORRECT ANSWER : Profit
Question 5: What element is not present in a barter economy?
CORRECT ANSWER : Money
Question 6: 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
Question 7: 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
Question 8: Which industry was the first to use Yield
Management principles?
CORRECT ANSWER : Airline
Question 9: What is the industry term used to describe the
selling of rooms which are not actually available for sale?
CORRECT ANSWER : Overbooking
Question 10: What is the formula used to calculate Average
Daily Rate?
CORRECT ANSWER : Total Room's Revenue / Total
Rooms Sold = Average Daily Rate
Question 11: 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%
Question 12: 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
Question 13: What is the industry term for the average
revenue generated by each occupied guestroom during a defined period of time?
CORRECT ANSWER : RevPOR
Question 14: What is the formula used to calculate GOPPAR?
CORRECT ANSWER : (Total Revenue - Management
Controllable Expenses) / Rooms Available to Sell = GOPPAR
Question 15: What is the industry term for a customer group
which can be readily identified by one or more common characteristics?
CORRECT ANSWER : Market Segment
Question 16: What is rack rate?
CORRECT ANSWER : The price of rooms when no
discounts of any type are offered
Question 17: What is: Total period revenue (Number of available seats) x (hours of seat availability)
CORRECT ANSWER: The formula for RevPASH
Question 18: What is the term used to identify a management
philosophy that places customer gain ahead of short-term