What is the goal of yield management in the hotel industry? A.To maximize profit for guest room sales only. B.To maximize the number of guests staying in the hotel. C.To maximize profit for guest room sales and hotel services.
C.To maximize profit for guest room sales and hotel services.
Which industry was the first to implement yield management after deregulation in the late 1970s? A.Hotel industry B.Restaurant industry C.Airline industry
C.Airline industry
Total room sales divided by the number of rooms sold represents: A. Rack rate B. Average daily rate C. Room occupancy percentage D. Daily report
B. Average daily rate
Investors use occupancy percentage to determine the potential gross income of a lodging establishment. A.True B.False
A.True
A hotel has a total of 150 rooms, of which the average occupancy rate is 90%. The average cost for a room is $100 a night. Calculate RevPAR? A.$90 B.$80 C.$70 D.$60
A.$90
According to E.Orkin, when demand is high, maximize rates; when demand is low, maximize room sales. A.True B.False
A.True
What is meant by the term ''yield management''? A. Varying prices based on supply and demand. B. Building incentives into your base prices. C. Yielding to what consumers want to pay.
A. Varying prices based on supply and demand.
The occupancy percentage of a hotel is 88% for the three summer months and 44% for the rest of the year. What is the average occupancy percentage for the whole year ? A.50% B.55% C.66% D.70%
B.55%
Total rooms in the hotel are 410; total rooms available are 400; total rooms sold are 350; total revenue is $38,500. What is the ADR? A. $93.90 B. $96.25 C. $110 D. $112.50
C. $110
Why is accurate forecasting of room sales important in yield management? A.To determine the seasonal decision-making scheme. B.To maximize sales to the group business. C.To develop strategies to maximize sales to the transient group.
C.To develop strategies to maximize sales to the transient group.