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
... [Show More] $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 Less]