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2025 LATEST REVENUE MANAGEMENT
FINAL EXAM PRACTICE WITH 250 EXAM
QUESTIONS AND CORRECT VERIFIED
ANSWERS/ HOSPITALITY REVENUE
MANAGEMENT FINAL EXAM PREP (NEW!)
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? - ANSWER-constrained supply
What must be true if a product producer is to continue creating and selling products? - ANSWER-Revenues must exceed costs
What is the specialized branch of accounting that focuses on recording and analyzing the expenses incurred by an organization? - ANSWER-cost accounting
What is the industry term for the point at which an organization's revenues exactly equal its costs? - ANSWER-break-even point
In a hospitality industry break-even analysis graph the Total Revenues line starts at
- Why does the Total Costs line always start farther up the y axis? - 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? - ANSWER-Unit costs will vary based upon how high or low an item is priced
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pg. 2 Which of the following statements about the relationship between costs and pricing is true? - ANSWER-An appropriate selling price for a product or service must dictate its allowable costs
If a Revenue Manager implements an organization's strategic pricing plan what personal characteristic of that Revenue Manager will be most important for ensuring the plan's success? - ANSWER-an understanding of an organization's customers
According to Alfred Marshall's work, if the price of a product is lower than the natural, or equilibrium price, what will happen? - ANSWER-The demand for the product would exceed its supply
According to the most recent Hospitality Sales & Marketing Association International (HSMAI) survey, to whom do the largest percentage of hotel revenue managers report? - ANSWER-their hotel's general manager
Donna is a hotel revenue manager preparing next year's rooms forecast. Donna knows that in November 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 be primarily using to make her decision? - ANSWER- future data
Donna is a hotel revenue manager. Donna knows that for tonight she has sold 175 of her 200 available rooms. As a result, is eliminating room discounts on her remaining 25 rooms. In doing so, what data type is she primarily using to make her decision? - ANSWER-current data
In a limited service hotel, what is the incremental expense incurred in selling one guest room? - ANSWER-CPOR
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pg. 3 What is the lodging industry term for the situation that occurs when a hotel is unable to accommodate a guest's reservation preference due to the unavailability of the room or service at the price, or on the date, originally requested by the guest? - ANSWER-denied
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? - ANSWER- $180
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 a 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? - ANSWER-150
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? - ANSWER- MLOS
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?
- ANSWER-RFP
Which formula represents a buyer's view of a sales transaction? - ANSWER- Perceived Value - Selling Price = Personal Profit
Penny Larson is travelling to San Francisco for a personal vacation. Which of economist Milton Friedman's buyer value formulas would apply to her purchase of 3 / 4
pg. 4 the hotel rooms she will need during her trip? - ANSWER-spending her own money on herself
Penny Larson is travelling to San Francisco on business. Her company will reimburse 100% of her travel expense. Which of economist Milton Friedman's buyer value formulas would apply to her purchase of the hotel rooms she will need during her trip? - ANSWER-spending someone else's money on herself
Penny Larson is buying a $100.00 restaurant gift card as a present for her niece who is graduating from hospitality management school. Which of economist Milton Friedman's buyer value formulas would apply to her purchase? - ANSWER-spending her own money on someone else
Penny Larson is a travel agent arranging a one-week San Francisco vacation for Mr. and Mrs. Rafael Ochoa. Which of economist Milton Friedman's buyer value formulas would apply to her purchase of the hotel rooms the Ochoa's will need during their trip? - ANSWER-spending someone else's money on someone else
What special challenge do buyers of hospitality products such as hotel guestrooms or restaurant meals face? - ANSWER-difficulty in quality evaluation prior to purchase
If quantity and quality are held constant how will a reduction in price affect buyers' perceptions of value? - ANSWER-perceived value will increase
What is the industry term used to describe the sum of prices paid by a business's customers? - ANSWER-total revenues
Historically, what concept have hospitality managers chiefly used to calculate their selling prices? - ANSWER-costs
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