Quiz Flashcards
(25 cards)
Revpar requires a hotel to be evaluated and benchmarked on its ability to manage and maximize both Rate and Occupancy to its optimal levels as long as what is true? ( Hint from the Professor…if we only maximize sales, how do we know that the ADR is as high as it could be if we are just driving sales thru maximizing occupancy? Doesn’t not ADR have a direct connection to the Rooms Dept profit level too?)
A.
The hotel’s Revpar Ranking is number 1 in its comp set?
B.
Sales are driven to its highest levels possible as the hotel should be indifferent to how the higher sales levels come, whether thru higher ADR or thru just driving the highest occupancy possible.
C.
The hotel is driving incremental sales and incremental profits to their total maximum level compared to forecasts for the same time frame that have not been thru a rigorous Revenue Management analysis process.
D.
ADR is at a decent level and Occupancy is always as high as the hotel can get it?
The hotel is driving incremental sales and incremental profits to their total maximum level compared to forecasts for the same time frame that have not been thru a rigorous Revenue Management analysis process.
Based on readings, video’s and in class lectures and conversation, the STR Report shows which three data points regardless of the type of report?
A.
% change
B.
7 days of history
C.
Occ./rate/revpar
D.
Index
Occ./rate/revpar
The results for June for a 400 room hotel were as follows: Room Revenue $1,200,000, Rooms Profit $900,000, 10,580 Rooms Sold. Calculate the following, assuming 2020 has 364 days in it and June has 30 days, the hotel’s occupancy for June would be?
A.
88.2%
B.
88%
C.
85.2%
D.
88.1%
88.2%
Which of the following is a good example of a micro-market when thinking about identifying sub-market customer?
A
Group travel segment
B
Cultural social event
C.
A local business group
D.
Transient Travel Segment
Cultural social event
The results for June for a 400 room hotel were as follows: Room Revenue $1,200,000, Rooms Profit $900,000, 10,580 Rooms Sold. Calculate the following, assuming 2020 has 364 days in it and June has 30 days. Given this information, what is the Hotel’s Revpar for the month of June?
A.
$100.04
B.
$100
C.
$113.04
D.
$100.042
$100
How did Delta find “the missing $300M?
A.
Raised prices on all seats
B.
Spent $2M training employees IN RM strategies and with new skills stopped applying discounts to every open unsold seat.
C.
Started discounting heavily
D.
Stopped discounting altogether
Spent $2M training employees IN RM strategies and with new skills stopped applying discounts to every open unsold seat.
Yield Management as discussed in the book but as it applies to hotels is to preserve the rooms you can usually get full ADR for and for your best customers, and to avoid discounting as much as possible.
True
False
True
American Airlines development of SABRE is an example of what tactic(s)?
A.
Save your best seats for your most valuable customers
B.
Use knowledge instead of supposition
C.
Systems are a huge path to success, providing historical data and customer information.
D.
Use Systems based historical Data and customer information AND Knowledge instead of supposition.
Use Systems based historical Data and customer information AND Knowledge instead of supposition.
A hotel’s fare share in terms of Revpar is what?
A.
The Hotel’s actual Revpar. Fair share and Revpar are one and the same thing?
B.
Fair share, being a theoretical number is inconsequential and not considered at all by the Hotel’s Management Company and/or the Ownership Group (Usually a REIT, a Real Esate Investment Trust)
C.
100 which equals the same Revpar for each hotel in the hotel’s competitive set and represents the equal share of the market that each hotel in the comp set COULD have?
D.
The actual % of market share amongst all hotels in the hotel’s own competitive set?
100 which equals the same Revpar for each hotel in the hotel’s competitive set and represents the equal share of the market that each hotel in the comp set COULD have?
How many ways can a Hotel’s Revpar be calculated?
- 1
- 4
- 2
- 3
- 2
What is one of the following of Robert Cross’s 7 Hard Core Tactics for Market Domination?
A.
Discount to build market share
B.
Use market intelligence when needed
C.
Drive rate while promotions are in place
D.
Identify lost revenue opportunities
Identify lost revenue opportunities
Why is Revpar so important?
A.
Revenue/ occupied rooms gives us our competitive index
B.
Revpar, which is rate and occ., generates the largest revenues and largest profits and is the largest indicator of a hotel’s total financial results.
C.
Revpar Index because operators use it occasionally
D.
It balances supply and demand on its own
Revpar, which is rate and occ., generates the largest revenues and largest profits and is the largest indicator of a hotel’s total financial results.
Despite being a core concept (Focus on Price Rather than Costs When Balancing Supply and Demand), Cross states it is almost impossible to strike the right balance of the amount of your product and the markets demand for your product when it’s available
True
False
True
Cost management should occur over what time period?
A.
Cost cutting is necessary all the time
B.
Cost cutting should NEVER be done
C.
Cost Management is necessary all the time
D.
Cost management is only done when needed
C.
Cost Management is necessary all the time
In the readings for this class, we have learned that different generations have different levels of loyalties and purchasing habits. Among all of the generations, the Millennial generation has been shown to have what types of loyalty to a hotel and prefer what types of stay?
A
Millennials show very rarely show any loyalty to a given hotel product or brand as price/cost of the room product is the only relevant factor driving any hotel loyalty for a customer in the Millennial Generation.
B.
Once Millennials have a great experience, one that meets or exceeds their expectations on multiple levels, are more loyal to 1 or 2 Hotel Brands than any of the other generations.
C.
Only prefer AirBnB’s because price is the most important factor for their generation.
D.
Only interested in a hotel product that provides them with a social experience
Once Millennials have a great experience, one that meets or exceeds their expectations on multiple levels, are more loyal to 1 or 2 Hotel Brands than any of the other generations.
Booking pace is a very important concept in Revenue Management and is defined as what? Choose the best answer possible
A.
How many reservations are on the books for a given DOA compared to that of a comparable hotel in our competitive set.
B.
The number of reservations the hotel has on the books for a given DOA.
C.
The number of Reservations for a given DOA (Day of Arrival) and the difference in reservations in the hotel’s inventory Control System for a comparable historical DOA?
D.
How fast a Group is making reservations in their Block of rooms.
The number of Reservations for a given DOA (Day of Arrival) and the difference in reservations in the hotel’s inventory Control System for a comparable historical DOA?
Who is responsible for driving Revenue Management?
A.
Finance
B.
Front Desk
C.
All departments
D.
Sales and Marketing/Revenue management (Hint: this area is responsible for revenue management decisions)
All departments
It is always the best policy to drive occupancy as high as possible?
True
False
False
Who can help drive Revenues in a hotel?
A.
The Sales Department
B.
Revenue Management and GM
C.
Everyone (Hint from the Professor….aren’t we all looking for ways to increase revenues? A server up selling, and Event Manager convincing a group to Add an Extra Dinner during the Convention, and a spotless room which adds to loyalty can all create additional revenues!!!)
D.
Sales and Marketing/ Revenue Management
Everyone (Hint from the Professor….aren’t we all looking for ways to increase revenues? A server up selling, and Event Manager convincing a group to Add an Extra Dinner during the Convention, and a spotless room which adds to loyalty can all create additional revenues!!!)
The results for June for a 400 room hotel were as follows: Room Revenue $1,200,000, Rooms Profit $900,000, 10,580 Rooms Sold. Calculate the following, assuming 2020 has 364 days in it and June has 30 days. Given the data the ADR for June would be what dollar amount?
A.
$113.42
B.
$113.4
C.
$113
D.
$85.11
$113.42
How does the pillar Activist Investor relate to revenue management?
A.
They demand increases in stock price which comes from driving the optimal occ and optimizing rates to their highest points possible to drive profitability which ends up driving stock price.
B.
They are not interested in social awareness which drives customers into hotels
C.
They are interested in companies that drive customer sales
D.
They are focused on dividends instead of increased profitability which comes from driving rate
They demand increases in stock price which comes from driving the optimal occ and optimizing rates to their highest points possible to drive profitability which ends up driving stock price.
Why does Robert Cross talk about balancing price with other product attribute trade-offs?
A.
Being priced right is always related to quality of the hotel
B.
Customers view value differently depending on the product amenities compared to other products and their price
C.
Lowering prices will always make up for a product attribute trade off
D.
Raising prices will always induce demand in a high end hotel
Customers view value differently depending on the product amenities compared to other products and their price
Exploit Each Products Value Cycle is part of the Hard Core Tactics for Market Domination in the introduction?
True
False
False
The results for June for a 400 room hotel were as follows: Room Revenue $1,200,000, Rooms Profit $900,000, 10,580 Rooms Sold. Calculate the following, assuming 2020 has 364 days in it and June has 30 days: The # of Available Rooms for the full month of June would be?
A.
12,000
B.
12,400
C.
none of the above
D.
1,200
12,000
