HM 441 Practice 44 Questions with Answers 2023,100% CORRECT

HM 441 Practice 44 Questions with Answers 2023 Rate Fence - CORRECT ANSWER Logical, rational rules or restrictions that allow customers to segment themselves into appropriate rate categories based on their needs, ...

HM 441 Practice 44 Questions with Answers 2023 Rate Fence - CORRECT ANSWER Logical, rational rules or restrictions that allow customers to segment themselves into appropriate rate categories based on their needs, behaviors, or willingness to pay Logistical Management - CORRECT ANSWER Revenue management includes multidisciplinary management techniques applied to several subsectors of hospitality. What is NOT a discipline within revenue management? False - CORRECT ANSWER (T/F) It is not possible to defy the laws of mathematics by having occupancy higher than 100% 121,545,000 - CORRECT ANSWER Recently, several airlines started charging an additional $15 per seat for bulkhead seats, the first row of seats in the coach section. These seats offer more leg room for taller passengers. Assuming that on an average domestic flight (non wide body), there are six bulkhead seats, and using United Airlines as our example, lets calculate the additional annual revenue this extra charge would generate for UA in their 3700 flights Low fixed costs and high variable costs - CORRECT ANSWER What is NOT a criterion needed for an industry to unlock the full potential of revenue management? False - CORRECT ANSWER (T/F) Revenue management is a computer system and is price discounting Ellsworth Statler - CORRECT ANSWER Who was the famous hotelman who said "location, location, location" meaning that the real estate is a critical element of the hotel business? False - CORRECT ANSWER (T/F) Revenue management is new as are all of the strategies that are employed to maximize profit Revenue management - CORRECT ANSWER A set of strategies and techniques used to sell the right product, to the right customer, at the right time, and at the right prices Airlines - CORRECT ANSWER Which industry was the first to use Yield or Revenue Management principles? True - CORRECT ANSWER (T/F) Revenue management is NOT necessarily about achieving 100% occupancy and a perfect science Overbooking - CORRECT ANSWER What is the industry term used to describe the selling of rooms which are not actually available for sale? True - CORRECT ANSWER (T/F) Revenue management is a set of revenue maximization strategies and tactics that can be used to improve the profitability of certain businesses Capacity Utilization x Average Revenue per Service Transaction - CORRECT ANSWER The goal of revenue management is to MAXIMIZE REVENUE per Available Time-Based Inventory Unit (or RevPATI). RevPATI formula for all industries translates into...? forecasting - CORRECT ANSWER When the American Airlines CEO developed yield management, what type of information was crucial to its success? $50.88 - CORRECT ANSWER Hotel nr. Rooms: 70 rooms; Total nr. rooms a year: 25,550 (70 rooms times 365 days in a year); Occupancy %: 75-percent occupancy; Nr. Occupied rooms: 19,163Rooms revenue: $1,300,018; Average Daily Rate: $67.84.What's the hotel's RevPar? The external ADR uses gross room revenue, while internal ADR generally does not - CORRECT ANSWER How do internal ADR and external ADR differ? RRev $4,110 / ADR $146 / Occ. 66.67% / RevPAR $97.85 - CORRECT ANSWER Consider a small 42 rooms & suites boutique hotel with the following rooms sales:14 Regular Rooms at Corporate Rate @ $120/night12 Regular Rooms at Rack Rate @ $165/night1 Suite @ Rack Rate $200,1 Presidential Suite @ $250.Calculate its Rooms Revenue (RRev), ADR, Occ and RevPAR and choose the correct answer from below. $12.00 - CORRECT ANSWER What are the margin for a room night at a property with the following costs: Occupancy $25.75, administrative $19.25 and fixed cost of $32.00 and a room rate of $89.00? complementary product - CORRECT ANSWER In terms of rates and economics, an airfare to remote locations (e.g. a resort in the middle of the Amazonian rainforest) is a good example of what? accept the group reservation - CORRECT ANSWER In a property forecasted high period of demand period, if the RM displacement analysis shows that by accepting a certain group the overall net revenue gain is positive (more revenues than the costs of displacement transient demand in the future), increasing profitability, than its Sales or Reservations departments should be inclined to: pace of build - CORRECT ANSWER what is the rate at which reservations are being made for a future date? wash factor - CORRECT ANSWER group members who check out early rather than stay the entire length of the event discretionary income - CORRECT ANSWER after customers have met their basic financial requirements, any remaining money is considered what? denial - CORRECT ANSWER When a facility is not able to accommodate a guest due to unavailability of a product or service at that price constrained - CORRECT ANSWER When demand levels rise above the hotel's capacity to meet it fully, demand becomes what? booking pace (or booking pattern) - CORRECT ANSWER an indicator that compares the booking pace of the current year with those of previous years budget - CORRECT ANSWER What document contains a breakdown of all revenue and expenses reasonably planned and expected for a particular period and is not likely to change unless unforeseen events force a revision? highest yield guests based on total spend - CORRECT ANSWER Room rates are only one element of revenue; in constrained demand market situations, hotels want to capture what? disposable income - CORRECT ANSWER personal income minus income taxes equals which of the following? promotional rates - CORRECT ANSWER which are the rates that always apply to membership organizations? strategic approach - CORRECT ANSWER which approach to pricing takes a long-term view? government rates - CORRECT ANSWER Which of the following rate types are NOT set by negotiation? Demand-Based Dynamic Pricing - CORRECT ANSWER How do we call the concept of changing room rates daily or even several times within a day based on up-to date changing market information (e.g. hotels overcharging people who needed a place to stay after an Hurricane devastated their homes)? independent - CORRECT ANSWER The owner/manager of the Dew Drop Inn has a great deal of flexibility in responding to changes in local market conditions but cannot afford broad advertising exposure and pays relatively high prices for supplies. The Dew Drop Inn is probably a(n) ______________ property. denied (reservation) - CORRECT ANSWER What is the lodging industry term for the situation that occurs when a hotel is unable to accommodate a guest's reservation preference due to the unavailability of the room or service at the price, or on the date, originally requested by the guest? overstay - CORRECT ANSWER What is a guest called who decides to stay past his or her scheduled checkout date ADR and rack rate - CORRECT ANSWER What information do you need in order to calculate a rate achievement factor market segment - CORRECT ANSWER what is the industry term for a customer group which can be readily identified by one or more common characteristics? geographic - CORRECT ANSWER What type of traditional market segmentation is often identified by postal code? All of the above - CORRECT ANSWER What does up-selling ideally accomplish? A. increase revenues B. satisfy guests C. increase margins D. all of the above catering managers - CORRECT ANSWER From the following, which one is NOT part of Groups Business Partners? continental rate - CORRECT ANSWER Which of the following rate types is NOT a common rate type? demand-based dynamic pricing - CORRECT ANSWER A revenue manager notices that the hotel is filling up rapidly for a future date. In response, she decides to close a discount level for that day. This is an example of: