JMU HM 441- Exam 1 |32 Questions with Answers 2023,100% CORRECT

Document Content and Description Below

JMU HM 441- Exam 1 |32 Questions with Answers 2023 If a 210-seat restaurant is open 360 days a year for 8 hours a day and has total annual revenue of $6,000,000. Its RevPASH is: - CORRECT ANSWER ... $9.92 The bottleneck activity of a service delivery system has the: - CORRECT ANSWER lowest throughput rate If a restaurant had an overall average RevPASH of $14 and an overall seat occupancy of 66%, its average check would be: - CORRECT ANSWER $21.21 Room rates are only one element of revenue; in constrained demand market situations, hotels want to capture what? - CORRECT ANSWER Highest-Yield guests based on total spend After customers have met their basic financial requirements, any remaining money is considered what? - CORRECT ANSWER Discretionary Income How do an internal ADR and an external ADR differ? - CORRECT ANSWER External ADR uses gross room revenue, while internal ADR generally does not The hurdle rate is... - CORRECT ANSWER The Lowest Rate for a Given Day If the total rooms occupied are 622 and the total rooms available are 850, then the room occupancy percentage is: - CORRECT ANSWER 73.2% Tashia's hotel sold 175 rooms last night at an ADR of $200.00. Her hotel has 250 rooms. What was Tashia's RevPAR last night? - CORRECT ANSWER $140.00 Which forecasts are less detailed and accurate? - CORRECT ANSWER Strategic Forecast (Long Term) 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? - CORRECT ANSWER Demand-Based Dynamic Pricing Which are the rates which always apply to membership organizations? - CORRECT ANSWER Promotional Rates To interpret measures of a hotel's performance, managers often compare those measures with: - CORRECT ANSWER Budget for the period, industry or sector averages, and historical figures from comparable earlier periods at the hotel Revenue Management is a set of revenue maximization strategies and tactics that: - CORRECT ANSWER Can be used to improve the profitability of certain businesses Pace of build refers to: - CORRECT ANSWER The rate at which reservations are being made for a future date A benefit of variable pricing within revenue management is the smoothing of demand. - CORRECT ANSWER True What is not part of the revenue management key performance indicators (KPI) you can research to determine past performance? - CORRECT ANSWER Net Revenue Revenue Management includes multidisciplinary management techniques applied to several set-sectors of hospitality. What is not one discipline within revenue management? - CORRECT ANSWER Logistics Management Inflation affects how we measure growth. If a hotel raises its room rates by 5% during a period with a 2% inflation, its nominal growth is 5%, but its real growth is: - CORRECT ANSWER 3% Gross operating profit per available room equals the gross operating profit for a period divided by the: - CORRECT ANSWER Available rooms during that period If a 300-room hotel achieves 70 percent occupancy for April at an ADR of $153 per room, what will room revenue equal? - CORRECT ANSWER $963,900 Measuring the effectiveness of a revenue management system is: - CORRECT ANSWER Difficult because the causes of measurable changes may not be clear Revenue Management is a computer system and is price discounting. - CORRECT ANSWER False A long-term forecast of demand is based on: - CORRECT ANSWER Hotel's past performance, disposable income of feeder markets, gross domestic product Room Occupancy Percentage (ROP) is: - CORRECT ANSWER Total rooms occupied/ total available rooms In January, the 200-room Snowbound Inn ran a skiers special that resulted in them selling 5,735 rooms during the month. What was the occupancy percentage for the month? - CORRECT ANSWER 92.5% When the American Airlines CEO developed yield management, what type of information was crucial to its success? - CORRECT ANSWER Forecasting What information do you need in order to calculate a Rate Achievement Factor (RAF)? - CORRECT ANSWER ADR and rack rate 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? - CORRECT ANSWER $12.00 What is the booking pace? - CORRECT ANSWER An indicator that compares the booking pace of the current year with those of previous years Hotel number rooms: 70, Total number of rooms a year: 25,550, occupancy percentage: 75, number of occupied rooms: 19,163. Rooms revenue: $1,300,018 Average Daily Rate: $67.84 What is the hotel's RevPAR? - CORRECT ANSWER $50.88 What is the main reason that travelers today have more clout than ever before? - CORRECT ANSWER They have information on virtually everything at their fingertips [Show More]

Last updated: 2 years ago

Preview 1 out of 4 pages