Download Revenue Management Exam Questions and Answers and more Exams Marketing Business-to-business (B2B) in PDF only on Docsity!
Correct Answers | Verified | Latest Update
Revenue Management Exam with 100%
What is the name for the net value achieved by both parties in a business transaction? - ✔✔Profit RevPash - ✔✔Total period revenue/ number of available seats * Hours of seat availability According to the most recent Hospitality Sales & Marketing Association International(HSMAI) survey, to whom do the largest percentage of hotel revenue managers report? - ✔✔Hotel's General Manager Formula to calculate an owner's ROI - ✔✔Owner's Investment return / Owner's original investment
Average revenue generate by each occupied guest room during a define period of time - ✔✔Rev Por Rev Par - ✔✔Total revenue/ Total rooms available for sale Potential customers that utilize business marketing activities and messages are direct - ✔✔Target Market Fundamental assumption upon which concept of consumer rationality is based - ✔✔Buyers will act in ways that are personal benefit to them This is created when a seller communicates to a buyer the description of a product to be sold and the price at which the product will be sold. - ✔✔A value proposition Included with the Place portion of the hotel marketing mix - ✔✔Promotions
Buyers view of a sales transaction - ✔✔Perceived value. Perceived value - selling price = personal profit Quantity and quality held constant. How will reduction as a price affect buyers perception of value - ✔✔Perceived value will increase Which of the 4 I's of service often depends upon the skill level of the individual who supplies it - ✔✔Inconsistency 4 I's of service addressing the fact that a hotel goes unsold on a certain night - ✔✔Inventory Which two factors do successful revenue manages employ when the devise and implement strategic pricing plans - ✔✔Data management and insight
All except are marketing based example of marketing pricing - ✔✔Return on Investment True for franchised hotel operations in the US - ✔✔Prices are established by Hotel Owners Consumer pricing difference from consumer surplus? - ✔✔Differential pricing is a strategy used by sellers to minimize consumer surplus.
- Consumer Surplus is the difference between the amount of a buyer would be willing to pay for a product or service and the amount they are charged.
- Consumer pricing is more focused on promoting the items they know customers like best Customer rewards program - ✔✔Customer characteristic
- formalized system of granting special pricing or other benefits for a company's best customer
Corporate level executive - ✔✔To whom would a revenue manager likely report if consistency across multiple properties was of most importance? Vehicle used to best develop revenue management - ✔✔Regular strategy meetings Meetings - ✔✔Run once a week involving the GM, DOSM, Senior sales manager, and front office New hotel manager is eliminating room discounts - ✔✔Current Data Overstay - ✔✔Staying after the duration of the visit Rev par unrealistically high - ✔✔ADR and Occupancy %
Customer centric strategy for revenue managers to seek and to optimize ADR and Revpar - ✔✔Eliminate Discounts Most likely the result of revenue managers decision to raise the rate room during periods of high demand - ✔✔Rev Par will increase Consistent characteristic of desirable room revenue? - ✔✔Increase higher Goppar Revenue management decision on high rates low demand - ✔✔The number of potential guests will decline NOT typically used by revenue managers to designate specific room products sold in a hotel - ✔✔Price Attrition and Wash - ✔✔The difference between the purchases a group pledges to make and purchases it actually makes
yield management - ✔✔A demand-based revenue management strategy, first initiated by commercial airline companies. It seeks to maximize income via manipulation of selling prices revenue management - ✔✔The individual or team responsible for ensuring that a company's prices match a customer's willingness to pay Rev POR - ✔✔"Revenue per occupied room" the average generated by each occupied guest room during a specific period of time RevPOR Formula - ✔✔Total revenue/ Total occupied room ADR - ✔✔Total Room revenue / rooms sold How many rooms sold - ✔✔Occupancy percentage - Total rooms sold / Total rooms available for sale
How many rooms to calculate Rev par - ✔✔ADR * Occupancy percentage Fixed costs - ✔✔An expense that remains constant despite increases or decreases in volume as revenue managers what personal characteristics do you need to ensure the plan is successful? - ✔✔ Quantity, price, and quality. If changed around what is the perception of value? - ✔✔Value would be equal or less than 0 Direct impact on Buyers' perceptions of value Four I's - ✔✔Intangibility, inconsistency, inseparability, and Inventory Intangibility - ✔✔A service cannot be touched or seen before it is purchased
FOM - ✔✔Front office manager DOSM - ✔✔Director of Sales and Marketing Executive Housekeeper - ✔✔The management professional responsible for providing guests and employees a clean, safe, and healthy environment in all areas for which they are assigned accountability Executive Comittee - ✔✔Members of a hotels' administrative team charged with the responsibility of achieving world wide goals CPOR - ✔✔"Cost per occupied room"
- The total incremental expense associated with the sale of one guest room
Global distribution system (GDS) - ✔✔Group of companies that electronically connect travel-related businesses such as airlines and hotels with those individuals and companies seeking to buy from them CTA - ✔✔Closed to Arrival
- A date on which guests are not permitted to begin their hotel stays MLOS - ✔✔Minimum length of stay Upselling- does rev par increase or decrease - ✔✔Selling the buyer a higher cost item than that which was originally intended to be purchased or increasing the number of items purchased by the buyer
- Increases RevPAR Controller - ✔✔Responsible for a hotel's on property accounting procedures
- 79% and below- rates significantly below the comp set
- 80%- 94% = Rates moderately below the comp set
- 95%- 104%= Rates in keeping the comp set
- 105%- 119%= Rates Moderately above the comp set
- 120% and above= Rates significantly above comp set Marketing Mix - ✔✔The relative proportion of revenue contributed by each of a hotel's most important guest types Predatory pricing - ✔✔The practice of a firm harming consumers by selling its products below costs or at a price developed with the intent of driving competitors out of the market, thus creating a monopoly and the ability to raise its own prices significantly in the future Contribution Margin Pricing - ✔✔Selling price - Product Cost
Turn (table) - ✔✔# of times a table is used during the same dining period
of guests served / # of available seats
Trailing period - ✔✔A data collection method characterized by the act of discarding the oldest piece of data in a data set when the newest data are added.
- Calculates rolling average Current Data - ✔✔- Occupancy and Availability Reports
- Group rooms Pace report
- Non Revenue Pace reporting ADR 4 days out - ✔✔ 4 P's of Marketing - ✔✔Product, Promotion, Place, Price
Gopar - ✔✔"Gross operating profit per available room" Average gross operating profit (GOP) generated by each available guest room during a specific period of time. Also known as GoPAR Formula for GoPPAR - ✔✔Total Revenue- Management controllable expense / Total rooms available for sale Net ADR yield calculations - ✔✔Higher is always better Net Room rate/ Standard ADR Net room rate - ✔✔Standard ADR - Distribution channel costs Reference Price - ✔✔Name for the price perceived by consumers to be the normal or standard price for a product or a service Registered Price - ✔✔
Fade rate - ✔✔A lower room rate offered when a potential rooms buyer exhibits initial price resistance Supply and demand - when will occupancy increase? - ✔✔When the demand and supply is high Fixed pricing - ✔✔The practice of a seller charging the same price to all buyers Total Revenue formula - ✔✔Selling Price * Number Sold Two tiered pricing - ✔✔A strategy in which the buyer must pay a price for the ability to make additional purchases.
