Deck 7: Revenue Management

Question 1

Who manages a hotel's central reservation system (CRS)?

A) Hotel GM
B) Hotel owner
C) Hotel FOM
D) Hotel franchisor

Answer 1

D

Question 2

A fade rate will most likely used by a hotel when

A) rate resistance is encountered.
B) rate resistance is not encountered.
C) room supply equals room demand.
D) room demand exceeds room supply.

Answer 2

A

Question 3

A hotel has 400 rooms and its owners have put it up for sale for $120.5 million dollars.At that price,and using the $1.00 per thousand formula,what is the approximate room rate (ADR)that should be achieved by the hotel?

A) $250
B) $300
C) $350
D) $400

Answer 3

B

Question 4

What is the formula revenue managers use to calculate their hotels' RevPAR?

A) Occupancy % + ADR = RevPAR
B) Occupancy % - ADR = RevPAR
C) Occupancy % × ADR = RevPAR
D) Occupancy % ÷ ADR = RevPAR

Question 5

Last night a hotel sold 185 rooms and achieved an ADR of $175.What was the amount of rooms revenue achieved by the hotel last night?

A) $27,550
B) $32,375
C) $47,550
D) $52,375

Question 6

Who are the customers of travel wholesalers?

A) Guests
B) Hotels
C) Travel agents
D) Third party web sites

Question 7

What is the term used to identify,in advance,days in which a company's negotiated room rate will NOT be accepted by a hotel?

A) Full date
B) Sold date
C) Refusal date
D) Blackout date

Question 8

When must a hotel walk a guest?

A) When the hotel is overbooked
B) When the hotel is under-booked
C) When forecasted demand is low
D) When forecasted demand is high

Question 9

The number of rooms of all types available for sale by a hotel is known as the hotel's

A) rooms level.
B) rooms inventory.
C) product placement.
D) product assortment.

Question 10

Revenue managers are primarily responsible for optimizing a hotel's

A) fade rate.
B) CTA rate.
C) occupancy rate.
D) negotiated room rates.

Question 11

Which guest rooms booking method is currently increasing at the fastest rate?

A) Email
B) Mobile
C) Walk-in
D) 800 number

Question 12

Which industry created the global distribution system (GDS)?

A) Hotel
B) Airline
C) Restaurant
D) Car rental

Question 13

What is the denominator in the formula revenue managers use to calculate GOPAR?

A) ADR
B) Total rooms sold
C) Total operating revenue
D) Total rooms available to be sold

Question 14

A hotel achieved an occupancy rate of 80% this month.This month the hotel's competitive set achieved an occupancy rate of 64%.What is the hotel's occupancy index for this month?

A) 95
B) 114
C) 125
D) 144

Question 15

Which factor will most affect the daily fluctuation of a hotel's room rates?

A) Room supply
B) Room demand
C) Room rate codes
D) Room rack rates

Question 16

A hotel revenue manager seeks to keep her room rates 10% above the rates charged by similar hotels in her market area.Which pricing strategy is this revenue manager utilizing?

A) Prestige pricing
B) Discount pricing
C) Competitive pricing
D) Follow-the-leader pricing

Question 17

What is another term commonly used in the hotel industry to describe revenue management?

A) Rate management
B) Yield management
C) Rooms management
D) Occupancy management

Question 18

Guests receive no complimentary meals when they book their room under the

A) European plan.
B) American plan.
C) all-inclusive plan.
D) modified American plan.

Question 19

A hotel achieved an ADR index of 140 this month.This month its competitive set achieved an ADR of $210.What was the hotel's ADR for the month?

A) $150.00
B) $194.00
C) $250.00
D) $294.00

Question 20

A hotel achieved a RevPAR index of 80 this month.This month its competitive set achieved a RevPAR of $200.What was the hotel's RevPAR for this month?

A) $110
B) $160
C) $210
D) $260

Question 21

In which type of Internet sales model do hotel guests make a bid that represents the amount they are willing to pay for a hotel room?

A) Agency
B) Opaque
C) Merchant
D) Leverage

Question 22

A hotel received a room reservation for $200 from one of its distribution channels. The reservation fees to be paid for the reservation are 20%.What will be the Net ADR yield on this reservation?

A) 60%
B) 70%
C) 80%
D) 90%

Question 23

Typically,a hotel's highest net contribution will be achieved when reservations are booked

A) on the GDS.
B) by a travel agent.
C) by a third party Web site.
D) on the hotel's own website.

Question 24

A hotel will achieve an 80% Net ADR yield on a reservation supplied by one of its distribution channels.The room was reserved at a room rate of $180 per night.What is the amount of per night reservation generation fees the hotel will pay for this reservation?

A) $16.00
B) $26.00
C) $36.00
D) $46.00

Question 25

Approximately what percent of hotel reservations are currently booked online?

A) 21-30%
B) 31-40%
C) 41-50%
D) Over 50%