HM 441 Final Exam 53 Questions with Answers 2023,100% CORRECT

HM 441 Final Exam 53 Questions with Answers 2023 Identify which of these is not a positive of using revenue management strategies and tactics: A.Increase revenues and profitability B. Increase market share C. Mot ...

HM 441 Final Exam 53 Questions with Answers 2023 Identify which of these is not a positive of using revenue management strategies and tactics: A.Increase revenues and profitability B. Increase market share C. Motivate employees D. Serve more guests - CORRECT ANSWER C When the American Airlines CEO developed yield management, what type of information was crucial to its success? A. forecasting B. employee wages C. destination times D. fuel prices - CORRECT ANSWER A Revenue Management is NOT necessarily about... A. A sales tool B. Achieving 100 % occupancy and a perfect science C. A way of doing business identifying relevant sources and always measuring results D. A set of strategies and tactics E. A financial management tool - CORRECT ANSWER B Revenue Management is a computer system and is price discounting. True False - CORRECT ANSWER False Revenue management is a set of revenue maximization strategies and tactics that: A. can be used to improve the profitability of certain businesses. B. can be used to improve the profitability of all businesses. C. focus exclusively on rate adjustments as a means to improve profitability. D. increase profitability by carefully controlling expenses. - CORRECT ANSWER A Which of the following statements about hotel revenue management is FALSE? A. Most tactical-level revenue management actions can be controlled with a simple spreadsheet designed by those who use it every day. B. The hotel industry recognizes revenue management as one of the core competencies vital to profitability. C. Revenue management is new, as are all of the strategies that are employed to maximize profit. D. Most hotels have multi-tiered rate structures that they adjust based on key revenue management variables. - CORRECT ANSWER C The Hurdle Rate is...? A. The Maximum Rate for a Given Day B. The Highest Rate for a Given Day C. The Average Rate for a Given Day D. The Lowest Rate for a Given Day - CORRECT ANSWER D The goal of revenue management is to MAXIMIZE REVENUE per Available Time-Based Inventory Unit (or RevPATI). RevPATI formula applied to all industries translates into...? A. Seats Utilized x Average Revenue per Seat Transaction B. Capacity Utilization x Average Revenue per Service Transaction C. Rooms Unutilized x Average Revenue per Room Transaction D. Cars Utilized x Average Revenue per Mile Transaction - CORRECT ANSWER B A benefit of variable pricing within revenue management is the smoothing of demand. True False - CORRECT ANSWER True Revenue Management includes a multidisciplinary management techniques applied to several sub-sectors of the hospitality. Which of the following is NOT one discipline within Revenue Management? A. Sales & Marketing Management B. Operations Management C. Logistics Management D. Financial Management - CORRECT ANSWER C An individual traveling, dining, attending a game or performance, or staying alone is usually referred to as a ______________. This type of guest may be also be defined as an individual hospitality customer. Think of a single person purchasing an airline seat, a meal, a ticket, or a hotel room; in RM we call this type of customer a: A. Business client B. Transient C. Group D. Leisure or business guest - CORRECT ANSWER B When might a revenue manager choose without questions to accept a less profitable group booking over more profitable transient business? A. The group is a regular customer of the hotel or a key account group from your comp set. B. The group has never stayed at the hotel before. C. The transients being displaced include few high-lifetime-value guests. D. The transients being displaced are regular guests of the hotel. - CORRECT ANSWER A Why does Gabor Forgacs mention in regards to displacement analysis that "the numeric results of the (displacement) analysis should not be the only criteria for the decision"? A. Because we should consider the impact of transient displacement B. Because rather than a quick tactical interpretation of the numbers, one should consider other critical (and eventually strategic) information e.g. Existing competitor key account C. Because forecast numbers can go wrong e.g. Forecast error D. Because we should be minimizing incidents of over commitment - CORRECT ANSWER B Displacement Analysis can determine the quantifiable benefits of different options. However it needs to have the right circumstances. When is it appropriated? A. In a soft market and the hotel has unsold capacity B. if the hotel is facing a overbooking situation C. When a reliable forecast indicates that there's more demand than our capacity, it will be a period of high demand D. Whenever the hotel has a group business booking - CORRECT ANSWER C Which of the following is a step in the displacement analysis process? A. Establish potential alternate booking windows B. Establish the desired group/transient market mix for the hotel C. Establish net room revenue differential D. Establish group and transient room rates - CORRECT ANSWER C A displacement analysis should be conducted: A. when accepting a group booking will mean turning other business away. B. at least weekly during busy times and monthly during off seasons. C. when a group booking request is received. D. if the hotel is failing to meet its budgeted revenue figures. - CORRECT ANSWER A What information is needed to calculate a net room rate? A. room rate, variable costs, and fixed costs B. room rate, variable costs, and all costs and fees that apply to the booking C. room rate, variable costs, and cost of goods sold D. rack rate, actual room rate, and variable costs - CORRECT ANSWER B In displacement analysis, if a possible group reservation will bring $3,850 in rooms revenue but, according to your accurate forecast, you would expect to impact your future availability by displacing 33 transient demand rooms sold at $100 room/night, would you be inclined to accept or to deny this group reservation? A. Based only on these numbers and taking into consideration nothing more, I would deny this current group booking request. B. Not enough information regarding this current group booking request. C. Not enough information regarding this future transients booking request. D. Based only on these numbers and taking into consideration nothing more, I would accept this current group booking request. - CORRECT ANSWER D Which of the following hotels would be most likely to need and benefit from displacement analysis? A. any hotel facing demand it can meet B. an urban hotel during its off season C. an urban hotel during its busy season D. an island resort catering to leisure travelers - CORRECT ANSWER C 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: A. Accept the group reservation B. Decline the group reservation C. Regret the group reservation D. All of the above apply - CORRECT ANSWER A Which of the following statements is FALSE? A. Some owners drop their brands to become independents after repositioning. B. Repositioning can sometimes help underperforming hotels. C. Repositioning is a common alternative to rebranding. D. A hotel can be repositioned either up or down market. - CORRECT ANSWER C Hotels location as a competitive advantage can change over time. What is NOT an appropriated example? A. Hotels faraway from interstate highways B. Hotels in the heart of Paris (France) C. Hotels in coastal areas affected by floods and hurricanes D. Hotels near the railway - CORRECT ANSWER B What is the elasticity of a hotel that sees a 10 percent increase in occupancy when it lowers its room rate from $100 to $80? A. 2.0 B. 0.5 C. 2.5 D. 0.25 - CORRECT ANSWER B Market segments are: A. treated as practical substitutes for the entire market. B. Usually determined by census data. C. The advertising media used to reach target markets. D. groups that share commons needs and buying habits. - CORRECT ANSWER D What is a successful positioning strategy based on? A. a set of competitive advantages B. the property's five-year strategic plan C. the customer relationship management system D. the property's targeted ADR - CORRECT ANSWER A What is a goal of rate parity? A. To ensure a hotel's room rates match those of the hotels in its comp set. B. To charge the same price for the same room regardless of booking channel. C. To create an effective pricing strategy as part of positioning the hotel. D. To make differences in price between room types seem justified to guests. - CORRECT ANSWER B Which of the following is not one example of an internal packaging component? A. Dinner for two at the Hotel Restaurant. B. Welcome cocktail and lei e.g. in Hawaii C. Theater tickets D. Resort Kids Club - CORRECT ANSWER C What is a potential drawback of competing solely based on offering the lowest price? A. Price-driven guests are loyal to lowest prices, not the hotel offering them. B. Any competitor can beat a low price if it wants to. C. Other ways of generating demand are more profitable and sustainable D. All of the above. - CORRECT ANSWER D Which is not a key category of Rate Fence? A. Non-physical fence related to buyer racial profile e.g. Asian versus Caucasian B. Non-physical fence related to transaction characteristics e.g. flexibility of usage C. Physical Fence related to time of booking or reservation. D. Non-physical fence related to location of consumption e.g. at standing at the bar or seated at a table - CORRECT ANSWER A A positive aspect of matching competitors' prices is which of the following? A. guests follow the same or the lowest price. B. it gives up control over price. C. it drives the choice to other differentiators or competitive advantages. D. not understanding the factors that drove a competitor's price change - CORRECT ANSWER C Which of the following is considered a non-physical rate fence? A. bed configuration B. booking channel C. amenities D. location of a room - CORRECT ANSWER B The basic purpose of packaging is to: A. keep guests purchasing onsite for as much time as possible B. bundle products for which sales are behind budget C. increase sales through selective discounting D. does not reveal the individual price of the different components so it creates a perception of vaue - CORRECT ANSWER D What is not part of a hotel package development information? A. average dollar amount spent per guest B. average lead time and method or channel of booking C. average length of stay D. guests reason for staying at a hotel E. none of the above - CORRECT ANSWER E At what stage of the evolution of the revenue manager position were certification programs and specialized training introduced? A. evolutionary B. fully developed C. initial D. intermediate - CORRECT ANSWER D What's the below statements, what's the best (simple) definition of Ethics? A. It is about individual and group customers' perception. B. It is about moral standards of right and wrong conduct toward others. C. It is about convincing customers the prices they charge guests are fair. D. It is about having regulatory agencies convinced prices charged are absolutely fair - CORRECT ANSWER B What type of revenue management systems execute all of the rate and capacity allocation controls necessary to achieve revenue management goals? A. integrated systems B. decision support systems C. recommendation systems D. analyst systems - CORRECT ANSWER B Which of the following statements about revenue managers is FALSE? A. Revenue managers need to communicate revenue management initiatives to all of the hotel's staff. B. Revenue managers need to be good with numbers. C. Revenue managers must be willing to take on a leadership role in helping build strong teams committed to achieving revenue goals. D. A revenue manager's job is usually restricted to crunching numbers and producing reports. - CORRECT ANSWER D The Revenue Team (or committee) should NOT include which member? A. The Catering / Food & Beverage Directors B. The Front Desk & Reservation Managers C. The Engineering Director D. The General Manager E. The Director of Sales / Director of Sales & Marketing - CORRECT ANSWER C The price perceived by consumers to be the normal price for a product or a service is called the A. Pricing normality B. Reference price C. Rack Rate or Fare D. Dual entitlement - CORRECT ANSWER B Some hotels are known to make check calls to ascertain the availability of backup rooms at nearby properties and they adjust the aggressiveness of their overbooking accordingly. In essence, these hotels are only thinking _______________________________ (please choose the best to complete) and not consider the overall implications. A. of the cost of an oversale B. short term C. of the long term Return On the Investment (ROI) D. of the ill will - CORRECT ANSWER B What technological advance has made it possible for all room sellers to access each inventory unit, including designated room blocks? A. integrated reflections B. single-image inventory C. group visual technology D. comp set alerts - CORRECT ANSWER B Which of the following statements about revenue managers is absolutely TRUE? A. Since two customers booking the same type of room may be paying different rates based on the time of their booking, the customer may feel they are getting a "fair price". B. Hotels must enjoy high levels of demand and occupancy to achieve benefits from Revenue or Yield Management. C. A revenue manager's job is usually restricted to crunching numbers and producing reports. D. Good demand forecasting techniques are not key aspects of revenue management. E. Revenue managers need to be only good with numbers - CORRECT ANSWER A From an ethics perspective, a well designed service recovery program is the correct strategy to reduce conflicts in case of ____________________ . A. Change in the nature of service B. Financial risk C. Overbooking D. Reduction in service quality - CORRECT ANSWER C When the Director of Revenue Management (DORM) reports directly to the Hotel's general manager it's not only the most common case but it's what Forgacs call? A. Evolutionary stage B. Final stage C. Initial stage D. Intermediate stage - CORRECT ANSWER A Throughput time measures: A. the time it takes for a customer to walk through a restaurant B. the number of customers a restaurant can serve C. the time a customer spends in the system from enter to exit D. how a system deals with a potential interruption E. none of the above - CORRECT ANSWER C Restaurant Revenue Management primarily focuses on front-of-house operations. However, other aspects of running a restaurant are also tied to RRM. These are: A. Customer service B. Back-of-house operations C. Marketing D. Staffing E. All of the above - CORRECT ANSWER E If a restaurant had an overall average RevPASH of $14 and an overall seat occupancy of 66%, its average check would be: A. $19.99 B. $22.22 C. $26.38 D. $21.21 - CORRECT ANSWER D RevPASH = Av.Check x Occ. So $14 ÷ 66% = $21.21 When RevPASH is low, RRM strategies to use include all of the following except: A. Overbooking B. Bundling C. Promotions D. Suggestive selling E. Couponing - CORRECT ANSWER A Time-variable demand means: A. demand always comes all at once B. demand varies by style C. time varies based on the service requested D. demand can be forecast E. different market segments use a service at different times - CORRECT ANSWER E Which is NOT a condition necessary for the successful application of RM to a service business: A. relatively fixed capacity B. segmentable markets C. low fixed and high variable costs D. perishable inventory E. time-variable demand - CORRECT ANSWER C The bottleneck activity of a service delivery system has the: A. longest line after it B. lowest throughput rate C. shortest line before it D. shortest processing time E. lowest utilization of all activities - CORRECT ANSWER B Much of the data required to perform an RRM analysis can be obtained through: A. POS B. Manual collection C. Observation D. none of the above E. all of the above - CORRECT ANSWER E A process flow diagram: A. helps to identify potential redundancies in a service system B. traces how object move through a system C. helps to identify potential gaps in a service system D. is useful when movement is a large part of system operations E. All of the above - CORRECT ANSWER E