Historically, what concept have hospitality managers chiefly used to calculate their selling prices? Ch. 1 - ANSWER Costs
What is an algebraic equivalent of the formula: Sales= Costs+ Profit? Ch. 1 - ANSWER Profit = S
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Historically, what concept have hospitality managers chiefly used to calculate their selling prices? Ch. 1 - ANSWER Costs
What is an algebraic equivalent of the formula: Sales= Costs+ Profit? Ch. 1 - ANSWER Profit = Sales - Costs
What element is not present in a barter economy? Ch. 1 - ANSWER Money
What is the formula used to calculate GOPPAR? Ch. 1 - ANSWER Total Revenue- Management Controllable Expenses/Rooms Available to Sell
What is the industry term for a customer group which can be readily identified by one or more common characteristics? Ch. 1 - ANSWER Market Segment
What is Value-based pricing? Ch. 4 - ANSWER A pricing system based upon a buyer's view of product or service value
What is the term used to describe the pricing system in which all customers are charged the same price at all times? Ch. 4 - ANSWER Fixed Pricing
What is the economic term used to describe the difference between what a consumer is charged for a product or service and the price that the consumer would willingly pay for it? Ch. 4 - ANSWER Consumer Surplus
What is the purpose of a price fence or barrier? Ch. 4 - ANSWER To identify who is and who is not eligible for a special pricing offer
The premium prices charged for dinner served at the restaurant Le Jules Vernes on the second level of the Eifel Tower in Paris, France can be attributed, in part, to which type of differential pricing strategy? Ch. 4 - ANSWER Pricing based on Location
What is the name for the value given up by a buyer and seller in a business transaction? Ch. 2 - ANSWER Price
Charging guests for watching a Pay-Per-View movie in their hotel guestroom is an example of what type of pricing? Ch. 2 - ANSWER Two-tiered Pricing
What is the revenue management term used to describe the perceived benefit gained, MINUS the price paid, in a business transaction? Ch. 2 - ANSWER Value
Which one of the following terms is NOT one of the 4 P's of the Marketing Mix? Ch. 2 - ANSWER Proposition
In a hospitality industry break-even analysis graph the Total Revenues line starts at 0. Why does the Total Costs line always start farther up the Y Axis? Ch. 2 - ANSWER Because Fixed Costs are INCURRED even if NO guests are served or rooms are sold
Hotel revenue managers face hard supply constraints. In which industry below are hard constraints also likely to be encountered? Ch. 5 - ANSWER Hair Salons
What two factors establish a restaurant's weekly customer capacity? Ch. 5 - ANSWER Number of Seats and Number of Hours OPEN per week
What is the name for the laws and regulations aimed at preventing abusive business behavior or anti-competitive practices? Ch. 5 - ANSWER Anti-TRUST Legislation
What is true about the way buyers generally view variance in a seller's prices? Ch.5 - ANSWER Discounts are viewed more favorably than surcharges
What is the name of the hospitality management position responsible for the accounting functions in a hotel? Ch. 5 - ANSWER Controller
What type of benefit is lacking in material qualities and is NOT able to be touched or seen, but nonetheless can still be perceived? Ch. 3 - ANSWER Intangible
Penny Larson is traveling to San Francisco to do business. Her company will reimburse 100% of her travel expenses. Which of economist Milton Friedman's buyer value formulas would apply to her purchase of the hotel rooms she will need during her trip? Ch. 3 - ANSWER Spending someone else's money on herself
Which of the Four I's of service refers to the fact that the quality of service often depends upon the skill level of the individual who supplies it? Ch. 3 - ANSWER Inconsistency
Which of the Four I's of service refers to the tendency of consumers to equate the quality of service provided with the attitude of the person who actually provides the service? Ch. 3 - ANSWER Inseparability
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? Ch. 3 - ANSWER As C decreases, D increases
The individual or team responsible for ensuring that a company's prices match a customer's willingness to pay. These techniques are always customer-needs driven, not company-needs driven. Ch. 1 - ANSWER Revenue Manager
A revenue management philosophy that places customer gain ahead of short-term revenue maximization in revenue management decision making. Ch. 1 - ANSWER Customer-Centric Revenue Management
The total amount of sales achieved in a specified time period. ____ is calculated as: Number of units sold X Unit price = ____ Ch. 1 - ANSWER Revenue
1. Understand the importance of revenue management
2. Understand the many complex factors that influence revenue management strategy and tactics
3. Become better at making revenue management decisions than their competitors Ch. 1 - ANSWER Effective Managers of an organization's revenues MUST do 3 things:
In any rational business transaction, both the buyer and the seller seek a: Ch. 1 - ANSWER PROFIT
The net value achieved by a seller and a buyer in a business transaction. Ch. 1 - ANSWER Profit
Total Period Revenue/# of Available Seats X Hours of Seat Availability - ANSWER RevPASH
User-Generated Content (UGC) - ANSWER STAR Reports
This is the average gross operating profit (GOP) generated by each available guest room during a specific period of time. - ANSWER GOPPAR
Total Rev.-Mgmt. Controllable Expense/Total Rooms Available for Sale - ANSWER GOPPAR
Average revenue generated by each occupied guest room during a specific period of time. Total Rev/Total Occupied Rooms= - ANSWER RevPOR
It is the average revenue generated by each available guest room during a specific period of time. - ANSWER RevPAR
The two formulas yield identical results and are: ADR X Occupancy %
OR
Total Rev/Total Rooms Available for Sale - ANSWER RevPAR
The average (mean) selling price of guest rooms during a specific time period, such as a day, week, month, or year. Total Revenue/Total Rooms Sold - ANSWER Average Daily Rate
# of Rooms Sold during a specific time period; expressed as a % of ALL Rooms Available to sell during that same period. - ANSWER Occupancy %
Total rooms sold/ total rooms available - ANSWER Occupancy %
The condition that exists when sellers cannot readily increase the amount of products or services available for sale when consumer demand for them increases. - ANSWER Constrained Supply
Selling Price - Costs= Organizational Profit (Tangible Benefit) Ch. 3 - ANSWER Seller's View of a Sale
Perceived Value (An Intangible Benefit) - Selling Price= Personal Profit - ANSWER Buyer's View of a Sale
the desire, ability, and willingness to buy a product is too low - ANSWER In an auction, bidders will stop bidding when:
Intangibility, Inconsistency, Inseparability, and Inventory - ANSWER Four I's of Service
Quality, Service, and Price - ANSWER All buyers making purchases evaluate these 3 factors:
Buyers spend their own money on themselves - ANSWER Formula A
Buyers spend their own money on someone else - ANSWER Formula B
Buyers spend someone else's money on themselves (Corporate Expense Accounts) - ANSWER Formula C
Buyers spend someone else's money on someone else (Meeting planners/travel agents) - ANSWER Formula D
Science and Insight - ANSWER Effective Revenue Management depends on:
Service cannot be touched or seen before it is purchased. - ANSWER Intangibility
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