Revenue Management Final Exam 55 Questions with Complete Solutions
2023/2024
This formula represents a buyers view of a sales transaction? - Correct Answer 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. - Correct Answer Regular Strategy meetings A pricing system based upon a buyers view of product or service value - Correct Answer Value-based pricing Included in the Place portion of a hotel's markieting mix - Correct Answer 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? - Correct Answer 140.00 The term used to describe efforts undertaken to encourage travel and tourism to a specific geographic area or attraction - Correct Answer Destination marketing.An appropriate selling price for a product or service must dictate its allowable costs. - Correct Answer TRUE (A + B) - C = D - Correct Answer As C decreases, D increases What differential pricing strategy would in most cases be illegal or unethical if implemented? - Correct Answer 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 - Correct Answer 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? - Correct Answer 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. - Correct Answer TRUE Intangibility - Correct Answer Refers to the fact that service most often cannot be held, touched, or even seen before they are purchased. 1 / 2
Break Even point - Correct Answer Term for the point at which an organization's revenue is exactly equal its costs.GOPPAR FORMULA - Correct Answer Total Revenue-Management Controllable Expense/Rooms available to sell Charging guests for watching a PAYPERVIEW movie in their hotel is an example of - Correct Answer Two-tiered pricing What two factors do successful revenue managers employ when they devise and implement strategic pricing plans - Correct Answer Data management and insight What is the relationship between differential pricing and consumer surplus: - Correct Answer differential pricing is a strategy used by sellers to minimize consumer surplus.The name for the price percieved by consumers to be the normal or standard price for a product or a service - Correct Answer Reference Price The name for the net value achieved by both parties in a business transaction - Correct Answer Profit STR - Correct Answer A company that specializes in helping hospitality managers evaluate their effectiveness.The requirement that a buyer present a coupon at the time of purhcase is an example of what differential pricing - Correct Answer pricing based on customer chracteristics.What special challeges do buyers of hospitality products such as hotel guestrooms or restuarant meals face - Correct Answer Difficulty in quality evaluation prior to purchase What is the fundemental 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 100 hotel rooms to sell. Saturday night has enough customers to sell 125 rooms so she will be refusing 25 requests for rooms` - Correct Answer Constrained supply GOPpar - Correct Answer =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? - Correct Answer Future Data
- / 2