Deck 6: Revenue Management

Question 1

A hotel has sold 100 rooms from its 200 room inventory on Tuesday. Determine its occupancy percentage or Tuesday.

A) 100%
B) 50%
C) 30%
D) 200%

Answer 1

50%

Question 2

A hotel has sold 100 rooms for a total of $10,000. What is the ADR for that night?

A) $10,000
B) $1,000
C) $500
D) $100

Answer 2

$100

Question 3

One of the goals of revenue management is to maximize room rates.

Answer 3

True

Question 4

A hotel has 85% occupancy and an ADR of $75 on Saturday. What is the RevPAR for Saturday?

A) $63.75
B) $88.23
C) $62.25
D) $75.00

Question 5

Optimal occupancy and optimal room rate are similar to occupancy percentage and ADR.

Question 6

If the League of Mayors convention is coming to your community and they are expected to take every hotel room available in the town, the hotel management should do which of the following?

A) maximize room rates
B) maximize room sales
C) do not use block out periods
D) promote a special package deal for mayors and their families
E) both a. and b.

Question 7

Determine the yield of a hotel for Monday with the following statistics: 400 rooms in inventory; 325 rooms sold @ $75; and a rack rate of $90.

A) 43%
B) 76%
C) 68%
D) 89%

Question 8

A turnaway business report is useful to which member of the hotel management team?

A) marketing and sales director
B) front office manager
C) both A and B
D) executive housekeeper
E) maintenance director

Question 9

Food and beverage sales should not be used to determine the profitability of a group requesting a block of rooms?

Question 10

Guest alienation is reason enough not to use yield management.

Question 11

The Star Report would be used by a revenue manager to determine which of the following?

A) guest concerns for airlines
B) weather conditions
C) hotel competitors' room occupancy
D) hotel design trends