Revenue Management Final Exam Latest Update Questions and Verified Correct Answers Guaranteed A+ At First Attempt
- Which of the following statements about restaurant pricing methods is true? -
CORRECT ANSWER: Restaurant industry pricing methods are very different from hotel industry pricing methods
A business hotel's promotion targeting local area residence and designed to offer them significantly reduced room rates on Sunday nights is an example of which type of
differential pricing strategy? - CORRECT ANSWER: Pricing based on time
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
Ahmed is the sole waitperson on duty at the Athenian restaurant during the very slow 2:00 p.m. to 4:00 p.m. time period. Which of the Four I's of service refers to the fact that employees such as Ahmed must be scheduled to work anytime a service business is
open and regardless of low volume levels? - CORRECT ANSWER: Inventory
All except one of the following pricing systems are marketing-based. Which one is not
an example of marketing-based pricing? - CORRECT ANSWER: Return on Investment
(ROI) pricing
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? -
CORRECT ANSWER: RFP
Arthur's restaurant is extremely busy on Friday and Saturday. The manager of the operation offers reduced prices on quick-to-prepare and quick-to-serve menu items on those two nights. What revenue related factor is this restaurant manager seeking to
positively influence? - CORRECT ANSWER: Capacity
Assume a food and beverage operator offers guests a 20-year old Scotch at a price five times the amount charged for one-year old Scotch. Assume also that the operator's customers very rarely purchase the more expensive Scotch. Which statement would
explain why the 20 year old Scotch does not sell well? - CORRECT ANSWER:
Customers do not accept this seller's price-value proposition
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? - 1 / 3
CORRECT ANSWER: The new price (P2) would be lower than the previous price (P1)
because supply would decrease
At Lauren's restaurant the check average is always higher on Saturday night than on any other night. What is the most likely cause of the check average variance she
experiences? - CORRECT ANSWER: The sales mix
At Rachel's hotel the CPOR is $40.00. Her Net ADR Yield averages 85% and her franchise fees average 5%. What is Rachel's average minimum ADR sales point? -
CORRECT ANSWER: $50.00
Bob is the revenue manger at the Waterfront hotel. For the third week in December next year he has determined the hotel will accept reservations for guests seeking to arrive on Dec 21st. Dec 22nd. or Dec 23rd; but not on Dec 24th or Dec 25th. Which of the following revenue management control (restriction) strategies is she using? -
CORRECT ANSWER: CTA
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
Consider the formula: (A + B) - C = D
Where: A = Perceived tangible product benefit
B = Perceived intangible service benefit C = Price D = Value If all other variables are held constant, which statement is also true? - CORRECT
ANSWER: As C decreases, D increases
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? - CORRECT 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? -
CORRECT ANSWER: Current Data
Expedia.com wants Jesse, the revenue manager at the Hilton, to agree to contract terms that would require Jessie's hotel to apply the agreed upon Expedia rate to any room type (except suites) available at the time one of Expedia's customers wants to make a reservation. What is the industry term for Expedia.com's contract request? -
CORRECT ANSWER: Last room availability
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For revenue managers seeking to optimize revenues in their foodservice operations,
which statement about menu prices is true? - CORRECT ANSWER: An appropriate
menu price should dictate an item's cost
For revenue managers working in the lodging system the term "place" in the 4ps of the Marketing Mix refers to two items. One is the physical location of the hotel. What is the
second? - CORRECT ANSWER: The property distribution channels
For which distribution channel type do hotels typically employ a shopper's service? -
CORRECT ANSWER: Sales made via the telephone
Francisco is the revenue manager at the 1500 room BayShore hotel. Tonight he forecasts 750 stay-overs and 750 arrivals. Assume he is accurate in forecasting a 6% no-show rate. How many additional reservations could Angelina accept before she
would be required to walk an arriving guest? - CORRECT ANSWER: 90
Hanna is the revenue manger at the Waterford hotel. For a Saturday in the future she has determined her hotel will accept reservation only for those guests seeking to stay for three or more days. Which of the following revenue management control (restriction)
strategies is she using? - CORRECT ANSWER: MLOS
Harold tracks his hotel guest check outs and the number of new reservations made at check out. Last week a total of 640 guests checked out of his hotel. In that same period, his front desk staff booked reservations for 32 future rooms nights from this group of
check out guests. What is true at Harold's hotel? - CORRECT ANSWER: The
reservation nights booked per check out for last week was .05
Historically, what concept have hospitality managers chiefly used to calculate their
selling prices? - CORRECT ANSWER: Costs
Hottickets.com is a web-based business that buys popular concert tickets in bulk. It buys the tickets at a low price because it qualifies for group ticket discounts offered by concert promoters. Hotticket.com then marks up and immediately resells the tickets it has purchased to interested individuals who visit the Hotticket website. What is the
name of the activity Hottickets.com is engaging in? - CORRECT ANSWER: Arbitrage
How are most CVBs in the United States funded? - CORRECT ANSWER: By a
combination of hotel occupancy taxes and membership dues
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? - CORRECT ANSWER: An understanding of an organization's
customers
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