Question 1

A hotel has sold 100 rooms from its 200 room inventory on Tuesday. Determine its occupancy percentage or Tuesday.&#10;A) 100%&#10;B) 50%&#10;C) 30%&#10;D) 200%

Accepted Answer

The occupancy percentage is calculated by dividing the number of sold rooms by the total room inventory and then multiplying by 100. So, for Tuesday, it's (100 sold rooms / 200 total rooms) * 100 = 50%.

Question 2

A hotel has sold 100 rooms for a total of $10,000. What is the ADR for that night?&#10;A) $10,000&#10;B) $1,000&#10;C) $500&#10;D) $100

Accepted Answer

The Average Daily Rate (ADR) is calculated by dividing the total revenue by the number of rooms sold. So, $10,000 / 100 rooms = $100.

Question 3

One of the goals of revenue management is to maximize room rates.

Accepted Answer

one of the goals of revenue management in the hospitality industry is indeed to maximize room rates. This is done by implementing strategies that aim to sell the right room to the right client at the right moment for the right price. By accurately forecasting demand and supply, adjusting pricing accordingly, and strategically managing distribution channels, revenue managers can optimize room rates and ultimately increase overall revenue. This practice is crucial in the hotel industry where the product is perishable, meaning if a room goes unsold for a night, that potential revenue is lost forever.

Question 4

A hotel has 85% occupancy and an ADR of $75 on Saturday. What is the RevPAR for Saturday?&#10;A) $63.75&#10;B) $88.23&#10;C) $62.25&#10;D) $75.00

Accepted Answer

RevPAR (Revenue Per Available Room) is calculated by multiplying the occupancy rate by the Average Daily Rate (ADR). So, for a hotel with 85% occupancy and an ADR of $75, the calculation is 0.85 * $75 = $63.75.

Question 5

Optimal occupancy and optimal room rate are similar to occupancy percentage and ADR.

Accepted Answer

Optimal occupancy and optimal room rate are strategic goals aiming for the most profitable balance of room bookings and pricing, whereas occupancy percentage and Average Daily Rate (ADR) are metrics used to measure current performance levels.

Question 6

If the League of Mayors convention is coming to your community and they are expected to take every hotel room available in the town, the hotel management should do which of the following?&#10;A) maximize room rates&#10;B) maximize room sales&#10;C) do not use block out periods&#10;D) promote a special package deal for mayors and their families&#10;E) both a. and b.

Accepted Answer

The answer of If the League of Mayors convention is...

Question 7

Determine the yield of a hotel for Monday with the following statistics: 400 rooms in inventory; 325 rooms sold @ $75; and a rack rate of $90.&#10;A) 43%&#10;B) 76%&#10;C) 68%&#10;D) 89%

Accepted Answer

Yield is calculated as (Rooms Sold * Average Rate) / (Total Rooms * Rack Rate). Here, it is (325 * $75) / (400 * $90) = 68%.

Question 8

A turnaway business report is useful to which member of the hotel management team?&#10;A) marketing and sales director&#10;B) front office manager&#10;C) both A and B&#10;D) executive housekeeper&#10;E) maintenance director

Accepted Answer

A turnaway business report, which details instances when potential guests were turned away (often due to lack of availability), is useful for both the marketing and sales director and the front office manager. The marketing and sales director can use this information to understand demand and potentially adjust marketing strategies or rates. The front office manager can use the information to improve booking strategies, customer service, and possibly adjust room availability or overbooking strategies.

Question 9

Food and beverage sales should not be used to determine the profitability of a group requesting a block of rooms?

Accepted Answer

Food and beverage sales can significantly contribute to the overall profitability of a group booking, including those requesting a block of rooms, as they represent additional revenue beyond room sales.

Question 10

Guest alienation is reason enough not to use yield management.

Accepted Answer

Yield management, also known as revenue management, is a strategy used to maximize revenue through the management of inventory and pricing based on demand predictions. While it can potentially lead to guest alienation if not implemented thoughtfully (e.g., customers may feel unfairly treated if they discover significant price differences for similar products or services), it is not inherently a reason to avoid using yield management. Properly applied, yield management can benefit both businesses and customers by offering prices that match demand and customer willingness to pay, thus it's not a definitive reason to avoid its use.

Question 11

The Star Report would be used by a revenue manager to determine which of the following?&#10;A) guest concerns for airlines&#10;B) weather conditions&#10;C) hotel competitors' room occupancy&#10;D) hotel design trends

Accepted Answer

The answer of The Star Report would be used by...

Deck 6: Revenue Management