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Hotel Operations Management 3Rd Edition Hayes Test Bank Full Chapter PDF
Hotel Operations Management 3Rd Edition Hayes Test Bank Full Chapter PDF
1) The number of rooms of all types available for sale by a hotel is known as the hotel's
A) rooms level.
B) rooms inventory.
C) product placement.
D) product assortment.
Answer: B
Learning Obj.: 7.1. Explain the procedures revenue managers use to establish the selling prices
of hotel guest rooms.
Difficulty: Easy
2) What is the term used to identify, in advance, days in which a company's negotiated room rate
will NOT be accepted by a hotel?
A) Full date
B) Sold date
C) Refusal date
D) Blackout date
Answer: D
Learning Obj.: 7.1. Explain the procedures revenue managers use to establish the selling prices
of hotel guest rooms.
Difficulty: Easy
3) Last night a hotel sold 185 rooms and achieved an ADR of $175. What was the amount of
rooms revenue achieved by the hotel last night?
A) $27,550
B) $32,375
C) $47,550
D) $52,375
Answer: B
Learning Obj.: 7.1. Explain the procedures revenue managers use to establish the selling prices
of hotel guest rooms.
Difficulty: Easy
1
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5) Guests receive no complimentary meals when they book their room under the
A) European plan.
B) American plan.
C) all-inclusive plan.
D) modified American plan.
Answer: A
Learning Obj.: 7.1. Explain the procedures revenue managers use to establish the selling prices
of hotel guest rooms.
Difficulty: Medium
7) A hotel has 400 rooms and its owners have put it up for sale for $120.5 million dollars. At that
price, and using the $1.00 per thousand formula, what is the approximate room rate (ADR) that
should be achieved by the hotel?
A) $250
B) $300
C) $350
D) $400
Answer: B
Learning Obj.: 7.1. Explain the procedures revenue managers use to establish the selling prices
of hotel guest rooms.
Difficulty: Hard
8) A hotel revenue manager seeks to keep her room rates 10% above the rates charged by similar
hotels in her market area. Which pricing strategy is this revenue manager utilizing?
A) Prestige pricing
B) Discount pricing
C) Competitive pricing
D) Follow-the-leader pricing
Answer: A
Learning Obj.: 7.1. Explain the procedures revenue managers use to establish the selling prices
of hotel guest rooms.
Difficulty: Hard
2
Copyright © 2017 Pearson Education, Inc.
9) Which factor will most affect the daily fluctuation of a hotel's room rates?
A) Room supply
B) Room demand
C) Room rate codes
D) Room rack rates
Answer: B
Learning Obj.: 7.2. Summarize the manner in which revenue managers seek to optimize a hotel's
ADR and its occupancy percentage.
Difficulty: Easy
12) What is the formula revenue managers use to calculate their hotels' RevPAR?
A) Occupancy % + ADR = RevPAR
B) Occupancy % - ADR = RevPAR
C) Occupancy % × ADR = RevPAR
D) Occupancy % ÷ ADR = RevPAR
Answer: C
Learning Obj.: 7.2. Summarize the manner in which revenue managers seek to optimize a hotel's
ADR and its occupancy percentage.
Difficulty: Medium
3
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13) What is another term commonly used in the hotel industry to describe revenue management?
A) Rate management
B) Yield management
C) Rooms management
D) Occupancy management
Answer: B
Learning Obj.: 7.2. Summarize the manner in which revenue managers seek to optimize a hotel's
ADR and its occupancy percentage.
Difficulty: Medium
14) What is the denominator in the formula revenue managers use to calculate GOPAR?
A) ADR
B) Total rooms sold
C) Total operating revenue
D) Total rooms available to be sold
Answer: D
Learning Obj.: 7.2. Summarize the manner in which revenue managers seek to optimize a hotel's
ADR and its occupancy percentage.
Difficulty: Medium
15) A hotel achieved an occupancy rate of 80% this month. This month the hotel's competitive
set achieved an occupancy rate of 64%. What is the hotel's occupancy index for this month?
A) 95
B) 114
C) 125
D) 144
Answer: C
Learning Obj.: 7.2. Summarize the manner in which revenue managers seek to optimize a hotel's
ADR and its occupancy percentage.
Difficulty: Hard
16) A hotel achieved an ADR index of 140 this month. This month its competitive set achieved
an ADR of $210. What was the hotel's ADR for the month?
A) $150.00
B) $194.00
C) $250.00
D) $294.00
Answer: D
Learning Obj.: 7.2. Summarize the manner in which revenue managers seek to optimize a hotel's
ADR and its occupancy percentage.
Difficulty: Hard
4
Copyright © 2017 Pearson Education, Inc.
17) A hotel achieved a RevPAR index of 80 this month. This month its competitive set achieved
a RevPAR of $200. What was the hotel's RevPAR for this month?
A) $110
B) $160
C) $210
D) $260
Answer: B
Learning Obj.: 7.2. Summarize the manner in which revenue managers seek to optimize a hotel's
ADR and its occupancy percentage.
Difficulty: Hard
20) Which guest rooms booking method is currently increasing at the fastest rate?
A) Email
B) Mobile
C) Walk-in
D) 800 number
Answer: B
Learning Obj.: 7.3. Describe the major distribution channels used by revenue managers in the
hospitality industry.
Difficulty: Easy
5
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21) Approximately what percent of hotel reservations are currently booked online?
A) 21-30%
B) 31-40%
C) 41-50%
D) Over 50%
Answer: A
Learning Obj.: 7.3. Describe the major distribution channels used by revenue managers in the
hospitality industry.
Difficulty: Easy
22) Typically, a hotel's highest net contribution will be achieved when reservations are booked
A) on the GDS.
B) by a travel agent.
C) by a third party Web site.
D) on the hotel's own website.
Answer: A
Learning Obj.: 7.3. Describe the major distribution channels used by revenue managers in the
hospitality industry.
Difficulty: Medium
23) In which type of Internet sales model do hotel guests make a bid that represents the amount
they are willing to pay for a hotel room?
A) Agency
B) Opaque
C) Merchant
D) Leverage
Answer: B
Learning Obj.: 7.3. Describe the major distribution channels used by revenue managers in the
hospitality industry.
Difficulty: Medium
24) A hotel will achieve an 80% Net ADR yield on a reservation supplied by one of its
distribution channels. The room was reserved at a room rate of $180 per night. What is the
amount of per night reservation generation fees the hotel will pay for this reservation?
A) $16.00
B) $26.00
C) $36.00
D) $46.00
Answer: C
Learning Obj.: 7.3. Describe the major distribution channels used by revenue managers in the
hospitality industry.
Difficulty: Hard
6
Copyright © 2017 Pearson Education, Inc.
25) A hotel received a room reservation for $200 from one of its distribution channels. The
reservation fees to be paid for the reservation are 20%. What will be the Net ADR yield on this
reservation?
A) 60%
B) 70%
C) 80%
D) 90%
Answer: C
Learning Obj.: 7.3. Describe the major distribution channels used by revenue managers in the
hospitality industry.
Difficulty: Hard
7
Copyright © 2017 Pearson Education, Inc.
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