HSPM154 Final Sample Questions

One day, a downtown hotel in San Jose had to walk a guest to another hotel. The room rate for another hotel in downtown was $150. It cost $15 for the guest to take an uber to another hotel. The overbooked hotel also gave the guest a gift card of $25. How much is the cost of walking this guest? 

• $150

• $160

• $180

• $190

What is the primary reason for forecasting future room demand?

• To calculate RevPAR

• To make capacity-expansion decisions

• To up-date Pace reports

• To make pricing-related decisions

What types of information do we need for forecasting?

• historical data

• current data

• future data

• business insights

• All of them

Which of the following is an example of an action taken to maintain profitability after a decline in the forecast during the month:

• Increase staffing hours

• Purchase new computers to replace outdated equipment

• Host an employee rally

• Restrict all non-essential purchases

• Purchase fresh flowers for the lobby

To best forecast future demand, what should the revenue manager know?

• Know about special citywide or area-wide events in the area that affect demand

• Understand demand for competitive hotel properties in the area

• Consider the opening or closing of competitive hotels

• Adjust demand forecasts quickly when faced with significant demand-altering events (i.e., inclement weather, power outages)

• All of them

Which of the following is an example of rate fence by transaction characteristics? 

• rate for premium room

• employee family and friend rate

• advance booking rate

• frequent flyer rate

Cost-based pricing is the practice of setting prices based on the cost of the goods or services being sold. 

• True

• False

Which of the following is an example of physical rate fence for hotel?

•   repeat customers or not

•   online booking

•   room amenities

•   arrival date

•   advance booking

What is the purpose of a price fence?

• To determine the optimum price at which to sell a product or service

• To minimize the sale of low priced products or services

• To establish the actual amount of available product inventory

• To identify who is and who is not eligible for a special pricing offer

Which of the following is not an internal element of pricing considerations? 

• Room cost

• Booking policies

• Employee training for reservations

• customer segmentation