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Final Exam Review
Final Exam Review
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Answers
1
An ATTRITION CLAUSE guarantees a minimum number of rooms to be paid for with groups.
False
True
2
What is an example of market segmentation?
A bank offering rewards points to loyal customers
Sports store dividing floor space in sections to assist flow
Cereal manufacturer advertising to target specific age group
Biscuit manufacturer repackaging to increase competitiveness
3
What is a WASH RATE?
How long ago they booked the reservation.
When guests come early.
When guests come late.
The chance that someone does not show up for a reservation.
4
Location is one of the five important characteristics of the hospitality industry.
False
True
5
What is a stayover?
A guest who is not checking out & will stay one more night
A guest who wants to leave baggage at desk until check in
A guest who check out but left baggage in room
A guest who slept in but checked out
6
3rd Party Bookers make reservations for who?
Group tours
All of the above
Corporate Employees
Air Crew
7
High Costs is a characteristic of our industry. What are we talking about?
High Cost of bills.
High Cost of vacations.
High Cost of starting a business.
High Cost of our product.
8
What is PROFIT?
All the $$ left-over after ALL costs are paid for.
Money used to pay for salaries.
Clothing that fits REALLY well.
All $$ taken in by a business.
9
An example of differential pricing are coupons or rebates.
True
False
10
Value-Based Pricing is...
How much customers are willing to pay.
All of the answers are correct.
Some people pay more for the same product.
The higher the demand, the higher the price.
11
What is the CHEAPEST rate?
Rack 1
Rack 4
Run of House Rate
B.A.R.
12
Sell Through means to allow longer-staying guests to book when no rooms are available.
True
False
13
Airlines and Hotels have challenges of LIMITED SUPPLY and PERISHABILITY. Overbooking helps these challenges.
True
False
14
Define Perishability
Customer service
a condition of being subject to change.
product becomes unusable within a limited amount of time.
a state of being abstracted.
15
What is Value-Based Pricing?
Price is based on how much the customer wants the product.
The more benefit, the higher the price can be!
When try to think like a customer.
All of the above
16
Differential Pricing is...
Same product to different customers at different prices.
Different ways to pay.
Versions of the same basic product.
How much the customer wants a product.
17
What is a Cycle of Demand?
Low demand time every year.
Repeated times of regular high and low demand.
High demand times every year.
Random busy and slow times.
18
Group Master Keeps track of individual bills for a group.
True
False
19
Differential Pricing is...
Different versions of the same product.
Different prices at different times to different people.
Only based on Demand.
Cost + Expenses = Price
20
If you want to find out how much money per room you have made, which would you use?
RevPASH
RevPAR
RevPALH
RevPASF
21
What is market segmentation?
The staff are divided into groups
A company is broken down into departments
A market has different competitors
A market is broken down into sub-groups
22
The WASH RATE is what?
How much laundry costs.
How clean a hotel room is.
How many people did not show up for their reservation or event.
Equal to the Spread Rate.
23
Walking a guest is different then Farming Out a guest because the hotel has phoned them in advance.
False
True
24
Versioning meets unique needs...
True
False
25
Pick-Up is how many new reservations have been booked since last check.
False
True
26
Fenced Rates are price packages that customers choose, which automatically segments them.
False
True
27
Putting a BOX in your reservations means...
Drawing a square in the reservations.
Giving someone a gift.
No reservations spill in or out of the box
Reservations can spill in or out of the box.
28
A great front-desk agent can upsell customers by finding out what they want.
True
False
29
Farm Out a guest happens when they arrive at the hotel.
True
False
30
What is the purpose of market segmentation?
Use information to develop products
Use information to marketing strategies
Use information to develop products and marketing strategies
Use information to steal ideas
31
Hotels overbook because...
The owners are greedy.
To help fight seasonality.
To help fight perishability and limited supply.
Hotels like to annoy customers.
32
What is a CONTRIBUTION MARGIN?
Total $$ - Expenses = CM
Total money taken in by a business.
Costs of making a product.
Total $$ - Direct Product Costs = CM
33
Choosing different segments with opposing demand cycles is a good way to fill "need periods".
True
False
34
What is a RACK RATE?
The the rate for the largest room in a hotel.
The rate for the smallest room in a hotel.
The LOWEST price a hotel will sell a room for that day.
The HIGHEST price a hotel will sell a room for that day.
35
An 'understay' guest....
stays an extra day
sleeps under the bed for some weird reason
leaves early
wants to be on the lower floors of the hotel
36
The Decoy Effect is...
When the prices are all the same.
Clapping for something you didn't like.
When you manipulate a customer to purchase a specific product in a range of
different prices for different customers.
37
Maximizing Revenue is a hotel's goal when very busy.
True
False
38
What is the MAIN GOAL of Revenue Management?
Lower PROFIT
Manage employees
Increase EXPENSES
Increase REVENUE
39
What is a Run-of-the-House Rate?
The most expensive room available.
A cheap option where you let the hotel pick your room type on arrival.
A type of Spread Rate.
An expensive option where you let the hotel pick your room type on arrival.
40
The Leisure Market is...
Sold, not told.
Told, not sold.
Not seasonal
not price sensitive.
41
Which is TRUE about the F.I.T. segment?
They have a short lead time.
They are all hippies.
They have a high wash rate.
They have a low wash rate.
42
Versioning is...
Different products at different prices.
Same basic product but options have different features.
When one company copies another.
Fixed pricing.
43
LIFO (last In First Out) is used when the overbooking problem is small.
False
True
44
Profit is equal to
Love 😉
Revenue minus Expenses
Tara shopping nalang!
Income minus salary
45
Occupancy rate is...
The ratio of rented space to the total available space
The number of rooms available
The number of rooms one person books per transaction
The number of rooms left to rent
46
The Decoy Effect is...
Adding a larger range of prices to compare.
A price plan that directs you to a specific product.
A wooden duck.
What politicians do.
47
What is REVENUE?
Money left over after expenses are included.
Costs of making something.
A type of customer.
All the money taken in by a business.
48
What is the name of a popular Gloabal Distribution System (GDS)?
Bart Simpson
Socrates
Excel
Sabre
49
Spread Rates are the difference in price between a double rate and a single rate.
True
False
50
The goal of a revenue manager is to reach 100% occupancy
False
True
51
Which of these is NOT a characteristic of the CORPORATE AND GOVERNMENT MEETINGS segment?
Low Wash Rate
Short Lead Time
Demand is Spring and Fall, weeknights
Segment is NOT loyal
