Please enter something
Home Page Flashcards Revenue Management Final - Flashcards

Revenue Management Final – Flashcards

Steven Colyer
8 July 2022
question
Hotel revenue managers face hard supply constraints. In which industry below are hard constraints also likely to be encountered?
answer
Hair Salons
question
Lisa is the revenue manager of a 500 room hotel property. Next week-end demand for her rooms will exceed the number of rooms she has available for sale. Which high demand pricing strategy will optimize revenue for her property?
answer
Implemented a differential pricing strategy and allocate the limited supply to those market segments who value the rooms most highly.
question
Which two factors establish a restaurant's weekly customer capacity?
answer
Number of seats and number of hours open per week.
question
What is the name for the laws and regulations aimed at preventing abusive business behavior or anti-competitive practices?
answer
Anti-trust legislation
question
What is the name used to describe a consortium of independent organizations formed to limit competition by controlling the production, distribution and pricing of product or service?
answer
Cartel
question
What is the name of the US legislation that outlawed all contracts and conspiracies that unreasonably restrain interstate trade?
answer
Sherman Antitrust Act
question
What is the name of the US legislation that prohibits competing hospitality managers from meeting to agree upon the room prices that will be charged for upcoming events or charged to specific group of customers?
answer
Sherman Antitrust Act
question
What is the name for the price perceived by consumers to be the normal or standard price for a product or service?
answer
Reference price
question
What is true about the way buyers generally view variance in a seller's prices?
answer
Discounts are viewed more favorably then surcharges
question
What is the name of the hospitality management position responsible for the accounting functions in a hotel?
answer
Controller
question
To whom would a revenue manager likely report if consistency across multiple properties was of most importance?
answer
A corporate level executive
question
According to the most recent Hospitality Sales & Marketing Association International (HAMAI) survey, to whom do the largest percentage of hotel revenue managers report?
answer
Their hotel's general
question
Which group of employees is most responsible for implementing the revenue optimization strategies and tactics developed by a revenue management team?
answer
Line-level employees
question
What vehicle do effective revenue managers use to best develop and evaluate their organizations' pricing and revenue management strategies and tactics?
answer
Regular strategy meetings
question
What is true about rooms that are sold at prices below a hotel's a variable operating cost?
answer
They will cause an increase in RevPAR
question
Scott is a revenue manager who calculates the following for his hotel: Total (rooms + non-rooms) revenue/ Total Occupied Rooms =?
answer
RevPOR
question
What is considered a room-related occupancy cost?
answer
Complimentary breakfast costs
question
At Rachel's hotel the CPOR is $40.00. Her Net ADR Yield averages 80% and her franchise fees average 5%. What is Rachel's average minimum ADR sales point?
answer
$50.00
question
What is the formula used to calculate flow-through for an accounting period?
answer
(GOP This Period -GOP Last Period)/(Total Revenue This Period-Total Revenues Last Period)
question
Last month Carl's hotel had a ADR of $150.00. The ADR of his comp. set was $200.00. What was Carl's ADR index last month?
answer
75%
question
Last month Carl's hotel had an ADR index of 125%. In the same month his RevPAR index was 100%. What can be said about Carl's hotel?
answer
His occupancy index is less then 100%
question
Last month Carl's hotel had 10,000 available room nights and sold 6,000 room nights. Last month his comp set had an average occupancy of 80%. What was Carl's occupancy index last month?
answer
75%
question
This Year-To-Date, Carl's hotel is averaging an ADR of $125.00. The ADR of his comp. set for the same period is $125.00. Assume Carl's comp. set is an appropriate one. What would you recommend Carl do if his occupancy index for the same period is 140%?
answer
Carefully increase rack rates to optimize GOPPAR
question
Last month Carl's 500-room hotel had a comp. set that included five additional hotels offering a total of 2000 rooms. What was Carl's supply share % last month?
answer
20%
question
It is near the end of the month and Tamrika is a revenue manager considering the impact of selling 200 room nights, for use this month, but at a room rate far below her hotel's average room rate. What would be the impact on her hotel's operating statistics if she makes this sale?
answer
Increased RevPAR and reduced flow-thru %
question
Which of the following statements about restaurant pricing methods is true?
answer
Restaurant industry pricing methods are very different from hotel industry pricing methods
question
Shaniqua's restaurant utilizes a product cost percentage pricing system. What should be the selling price for a steak dinner she sells if her total plate cost for the dinner is $7.00 and her desired product cost is 25%?
answer
$28.00
question
Which menu pricing system would utilize an operation's prime costs when calculating its selling prices?
answer
Product Cost: Plus
question
For revenue managers seeking to optimize revenues in their foodservice operations, which statement about menu prices is true?
answer
An appropriate menu price should dictate an item's cos
question
Shaniqua's restaurant utilizes a product cost percentage pricing system. She would like to sell an item for $19.95. Her targeted product cost is 40%. With a 40% product cost, what is the amount her kitchen staff can spend on product cost when making this item?
answer
$7.98
question
Why can foodservice operators sell a 20 year Scotch at a price higher than a one year old Scotch?
answer
The quality of a 20 year old Scotch is higher than a one year old Scotch
question
Poco Miller's restaurant has 130 seats. Last night Poco served 295 guests. What was is the formula Poco would use to calculate her table turns?
answer
295/130 = Table turns
question
Offering the same menu item in a variety of portion sizes is an example of what type of differential pricing strategy?
answer
Product Versioning
question
Last night Lara's restaurant served 225 guests and achieved total revenue of $4,500. What was Lara's check average last night?
answer
$20.00
question
Which factor has historically provided the basis for a foodservice manager's assessment of revenue generation efficiency?
answer
Menu items sold
question
For analysis purposes Jenny considers her restaurant to have three day parts. These three are breakfast, lunch and dinner. Last month Jenny's breakfast sales were $44,000. Total sales were $176,000. What percent of sales were contributed by breakfast?
answer
25%
question
April's sales at Raja's restaurant this year were $80,000. That was a decrease of 20% compared to the revenue achieved in April of last year. What was the amount of revenue achieved in Raja's restaurant during April of last year?
answer
$100,000
question
Alice's restaurant is located in a shopping mall. Her store occupies 950 square feet. Last month Alice's revenues were $28,500. What was the revenue per square foot achieved by Alice's restaurant last month?
answer
$30.00
question
Last month revenue in Sofia's take out pizza shop was $50,000. Sofia used 1250 labor hours to generate the revenue and she pays her employees an average of $10.00 per hour. 5000 guests were served in the month. What was Sofia's Labor Cost % for the month?
answer
25%
question
The Busy Bee restaurant has 100 seats. Between 5:00 p.m. and 6 p.m. yesterday the Busy Bee served 75 guests. Revenues during that time period were $3,700. What was The RevPASH achieved by the Busy Bee yesterday between 5:00 p.m. and 6 p.m.?
answer
$37.00
question
What would be the typical impact on RevPASH of an increase in guest duration?
answer
RevPASH would decrease if check average did not change
question
What formula can revenue managers use to calculate RevPASH?
answer
Seat Utilization % (X) Check Average= RevPASH
question
What is the name for the accounting device used by foodservice operators to divide their operating year into 13 equal time periods?
answer
28-day accounting period
question
What business segment best describes a company that is engaged primarily in the sale of intangible goods?
answer
Service
question
Revenue optimization strategies can make the most impact on inventory management in industries with which kind of cost structures?
answer
Low variable costs and high fixed costs
question
Nearly every ski resort in the Upper Northeastern part of the US generates the majority of its annual income during the winter months. What is the cause of this?
answer
Variable Demand
question
Selling season tickets to sporting events such as professional baseball or basketball games at a price per game that is lower than the cost of individual tickets to all of the games is an example of what revenue optimization activity?
answer
Product Versioning
question
What is the business term used to describe the application of statistical formulas to past events for the purpose of predicting future events?
answer
Probabilistic Modeling
question
Which tasks would be of most importance to revenue managers with multi-unit revenue generating responsibilities?
answer
Revenue manager training and motivating
question
What is the hospitality industry term used to describe a shrinking number of alternative franchisors offering increasing numbers of franchise alternatives?
answer
Brand Consolidation
question
Larissa is the corporate revenue manager for Sandstone hotels. She oversees 10 of her company's franchised properties. Which of the following is an example of Larissa's internal customers?
answer
Sandstone's Company Controller
question
In the hospitality industry what is the financial basis used for calculating the franchise fees or royalties that are paid to franchisors?
answer
An operation's Total Revenue
question
What is the hospitality term used to describe the accumulated value of a brand's image or identity as perceived by consumers?
answer
Brand Equity
question
In the US what is the dominate vehicle used by governmental authorities to fund local area destination marketing efforts?
answer
A special tax on the sale of hotel rooms
question
Which of the following revenue management activities would not be included in the typical job description of a revenue manager employed by a CVB?
answer
Product Pricing
1 of

Unlock all answers in this set

Unlock answers
question
Hotel revenue managers face hard supply constraints. In which industry below are hard constraints also likely to be encountered?
answer
Hair Salons
question
Lisa is the revenue manager of a 500 room hotel property. Next week-end demand for her rooms will exceed the number of rooms she has available for sale. Which high demand pricing strategy will optimize revenue for her property?
answer
Implemented a differential pricing strategy and allocate the limited supply to those market segments who value the rooms most highly.
question
Which two factors establish a restaurant's weekly customer capacity?
answer
Number of seats and number of hours open per week.
question
What is the name for the laws and regulations aimed at preventing abusive business behavior or anti-competitive practices?
answer
Anti-trust legislation
question
What is the name used to describe a consortium of independent organizations formed to limit competition by controlling the production, distribution and pricing of product or service?
answer
Cartel
question
What is the name of the US legislation that outlawed all contracts and conspiracies that unreasonably restrain interstate trade?
answer
Sherman Antitrust Act
question
What is the name of the US legislation that prohibits competing hospitality managers from meeting to agree upon the room prices that will be charged for upcoming events or charged to specific group of customers?
answer
Sherman Antitrust Act
question
What is the name for the price perceived by consumers to be the normal or standard price for a product or service?
answer
Reference price
question
What is true about the way buyers generally view variance in a seller's prices?
answer
Discounts are viewed more favorably then surcharges
question
What is the name of the hospitality management position responsible for the accounting functions in a hotel?
answer
Controller
question
To whom would a revenue manager likely report if consistency across multiple properties was of most importance?
answer
A corporate level executive
question
According to the most recent Hospitality Sales & Marketing Association International (HAMAI) survey, to whom do the largest percentage of hotel revenue managers report?
answer
Their hotel's general
question
Which group of employees is most responsible for implementing the revenue optimization strategies and tactics developed by a revenue management team?
answer
Line-level employees
question
What vehicle do effective revenue managers use to best develop and evaluate their organizations' pricing and revenue management strategies and tactics?
answer
Regular strategy meetings
question
What is true about rooms that are sold at prices below a hotel's a variable operating cost?
answer
They will cause an increase in RevPAR
question
Scott is a revenue manager who calculates the following for his hotel: Total (rooms + non-rooms) revenue/ Total Occupied Rooms =?
answer
RevPOR
question
What is considered a room-related occupancy cost?
answer
Complimentary breakfast costs
question
At Rachel's hotel the CPOR is $40.00. Her Net ADR Yield averages 80% and her franchise fees average 5%. What is Rachel's average minimum ADR sales point?
answer
$50.00
question
What is the formula used to calculate flow-through for an accounting period?
answer
(GOP This Period -GOP Last Period)/(Total Revenue This Period-Total Revenues Last Period)
question
Last month Carl's hotel had a ADR of $150.00. The ADR of his comp. set was $200.00. What was Carl's ADR index last month?
answer
75%
question
Last month Carl's hotel had an ADR index of 125%. In the same month his RevPAR index was 100%. What can be said about Carl's hotel?
answer
His occupancy index is less then 100%
question
Last month Carl's hotel had 10,000 available room nights and sold 6,000 room nights. Last month his comp set had an average occupancy of 80%. What was Carl's occupancy index last month?
answer
75%
question
This Year-To-Date, Carl's hotel is averaging an ADR of $125.00. The ADR of his comp. set for the same period is $125.00. Assume Carl's comp. set is an appropriate one. What would you recommend Carl do if his occupancy index for the same period is 140%?
answer
Carefully increase rack rates to optimize GOPPAR
question
Last month Carl's 500-room hotel had a comp. set that included five additional hotels offering a total of 2000 rooms. What was Carl's supply share % last month?
answer
20%
question
It is near the end of the month and Tamrika is a revenue manager considering the impact of selling 200 room nights, for use this month, but at a room rate far below her hotel's average room rate. What would be the impact on her hotel's operating statistics if she makes this sale?
answer
Increased RevPAR and reduced flow-thru %
question
Which of the following statements about restaurant pricing methods is true?
answer
Restaurant industry pricing methods are very different from hotel industry pricing methods
question
Shaniqua's restaurant utilizes a product cost percentage pricing system. What should be the selling price for a steak dinner she sells if her total plate cost for the dinner is $7.00 and her desired product cost is 25%?
answer
$28.00
question
Which menu pricing system would utilize an operation's prime costs when calculating its selling prices?
answer
Product Cost: Plus
question
For revenue managers seeking to optimize revenues in their foodservice operations, which statement about menu prices is true?
answer
An appropriate menu price should dictate an item's cos
question
Shaniqua's restaurant utilizes a product cost percentage pricing system. She would like to sell an item for $19.95. Her targeted product cost is 40%. With a 40% product cost, what is the amount her kitchen staff can spend on product cost when making this item?
answer
$7.98
question
Why can foodservice operators sell a 20 year Scotch at a price higher than a one year old Scotch?
answer
The quality of a 20 year old Scotch is higher than a one year old Scotch
question
Poco Miller's restaurant has 130 seats. Last night Poco served 295 guests. What was is the formula Poco would use to calculate her table turns?
answer
295/130 = Table turns
question
Offering the same menu item in a variety of portion sizes is an example of what type of differential pricing strategy?
answer
Product Versioning
question
Last night Lara's restaurant served 225 guests and achieved total revenue of $4,500. What was Lara's check average last night?
answer
$20.00
question
Which factor has historically provided the basis for a foodservice manager's assessment of revenue generation efficiency?
answer
Menu items sold
question
For analysis purposes Jenny considers her restaurant to have three day parts. These three are breakfast, lunch and dinner. Last month Jenny's breakfast sales were $44,000. Total sales were $176,000. What percent of sales were contributed by breakfast?
answer
25%
question
April's sales at Raja's restaurant this year were $80,000. That was a decrease of 20% compared to the revenue achieved in April of last year. What was the amount of revenue achieved in Raja's restaurant during April of last year?
answer
$100,000
question
Alice's restaurant is located in a shopping mall. Her store occupies 950 square feet. Last month Alice's revenues were $28,500. What was the revenue per square foot achieved by Alice's restaurant last month?
answer
$30.00
question
Last month revenue in Sofia's take out pizza shop was $50,000. Sofia used 1250 labor hours to generate the revenue and she pays her employees an average of $10.00 per hour. 5000 guests were served in the month. What was Sofia's Labor Cost % for the month?
answer
25%
question
The Busy Bee restaurant has 100 seats. Between 5:00 p.m. and 6 p.m. yesterday the Busy Bee served 75 guests. Revenues during that time period were $3,700. What was The RevPASH achieved by the Busy Bee yesterday between 5:00 p.m. and 6 p.m.?
answer
$37.00
question
What would be the typical impact on RevPASH of an increase in guest duration?
answer
RevPASH would decrease if check average did not change
question
What formula can revenue managers use to calculate RevPASH?
answer
Seat Utilization % (X) Check Average= RevPASH
question
What is the name for the accounting device used by foodservice operators to divide their operating year into 13 equal time periods?
answer
28-day accounting period
question
What business segment best describes a company that is engaged primarily in the sale of intangible goods?
answer
Service
question
Revenue optimization strategies can make the most impact on inventory management in industries with which kind of cost structures?
answer
Low variable costs and high fixed costs
question
Nearly every ski resort in the Upper Northeastern part of the US generates the majority of its annual income during the winter months. What is the cause of this?
answer
Variable Demand
question
Selling season tickets to sporting events such as professional baseball or basketball games at a price per game that is lower than the cost of individual tickets to all of the games is an example of what revenue optimization activity?
answer
Product Versioning
question
What is the business term used to describe the application of statistical formulas to past events for the purpose of predicting future events?
answer
Probabilistic Modeling
question
Which tasks would be of most importance to revenue managers with multi-unit revenue generating responsibilities?
answer
Revenue manager training and motivating
question
What is the hospitality industry term used to describe a shrinking number of alternative franchisors offering increasing numbers of franchise alternatives?
answer
Brand Consolidation
question
Larissa is the corporate revenue manager for Sandstone hotels. She oversees 10 of her company's franchised properties. Which of the following is an example of Larissa's internal customers?
answer
Sandstone's Company Controller
question
In the hospitality industry what is the financial basis used for calculating the franchise fees or royalties that are paid to franchisors?
answer
An operation's Total Revenue
question
What is the hospitality term used to describe the accumulated value of a brand's image or identity as perceived by consumers?
answer
Brand Equity
question
In the US what is the dominate vehicle used by governmental authorities to fund local area destination marketing efforts?
answer
A special tax on the sale of hotel rooms
question
Which of the following revenue management activities would not be included in the typical job description of a revenue manager employed by a CVB?
answer
Product Pricing
Get an explanation on any task
Get unstuck with the help of our AI assistant in seconds
New
Get unstuck with AI assistant right now
  • Enter your topic/question
  • Receive an explanation
Pro tips to get quality response
  • Ask one question at a time
  • Enter a specific assignment topic
  • Aim at least 500 characters
Question
What is the right structure for an essay
Answer
A paragraph is a related group of sentences that develops one main idea. Each paragraph in the body of the essay should contain:
  • a topic sentence that states the main or controlling idea
  • supporting sentences to explain and develop the point you’re making
  • evidence from your reading or an example from the subject area that supports your point
  • analysis of the implication/significance/impact of the evidence finished off with a critical conclusion you have drawn from the evidence.