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Revenue Management Glossary

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

During a revenue management class, a question arises about hotel performance reports. What does 'Actual(s)' mean in the context of these reports?

a)

The projected rooms or ADR for the future.

b)

The rooms or ADR that materialized in the past.

c)

The estimated revenue from ancillary services.

d)

The average length of stay for guests.

2.

To manage a hotel effectively, it is important to understand how long guests usually stay. What does "Average Length of Stay (ALOS)" measure in a hotel?

a)

The average number of guests per room.

b)

The average number of days that guests stay.

c)

The average number of rooms booked per guest.

d)

The average number of cancellations per booking.

3.

A guest calls the hotel and says they will not use their reservation. In revenue management, what does this mean?

a)

A guest who informs the hotel in advance that they will not be using their reservation.

b)

A guest who extends their stay.

c)

A guest who changes their reservation date.

d)

A guest who upgrades their room.

4.

A hotel manager wants to prevent new reservations on certain dates due to a special event. Which inventory control tool should be used?

a)

Closed to Arrival (CTA)

b)

Competitive Set

c)

Contracted Block

d)

Cut-Off Date

5.

A hotel employee needs to process payments made to a travel agency for each reservation. What are these payments called?

a)

Commissions

b)

Comp

c)

Competitive Set

d)

Contract

6.

Two people are organizing a school trip and have arranged a group block and special rate at a hotel. What special perks might the hotel offer to their group besides the group block and special rate?

a)

Concessions

b)

Comp

c)

Contracted Block

d)

Cut-Off Date

7.

When demand for pastries suddenly increases at a bakery, and it is not possible to quickly bake more to meet the higher demand, what is this condition called?

a)

Constrained Supply

b)

Competitive Set

c)

Compression

d)

Definite

8.

Two people are organizing a school trip and need to reserve hotel rooms for their group. What is the date called by which the hotel rooms must be reserved?

a)

Cut-Off Date

b)

Days Out/Days Left

c)

Day(s) Before Arrival (DBA)

d)

Definite

9.

At a concert, ticket prices are different depending on when and where you buy them. What does this pricing strategy, known as "Dynamic Pricing," mean?

a)

Selling the same products at different prices to different customers

b)

Offering discounts to loyal customers

c)

Setting a fixed price for all customers

d)

Providing free upgrades to customers

10.

Some guests would have paid more than what was charged. What does "Leaving Money on the Table" mean?

a)

Charging less than a guest would have been willing to pay

b)

The rooms that are available for sale at a hotel

c)

Metrics used to assess a hotel's performance

d)

A stipulation often included in negotiated rate contracts

11.

In the context of hotel metrics, what does "Last Year (LY)" mean?

a)

The number of rooms reserved within a group block

b)

The number of nights that the reservation represents

c)

Metrics used to assess a hotel's performance

d)

Metrics for the previous year

12.

A bakery needs to sell its fresh bread within a day before it goes stale. What is a product like this, which can only be sold for a limited time before it expires, called?

a)

Perceived Value

b)

Perishable Inventory

c)

Predictive Analytics

d)

Price Elasticity of Demand

13.

During a hurricane, a local store is charging extremely high prices for bottled water and basic supplies. What is it called when a store charges very high prices for goods during an emergency?

a)

Open Pricing

b)

Overbooking

c)

Price Elasticity of Demand

d)

Price Gouging

14.

A person is training to work at a hotel front desk. They are learning about the Property Management System (PMS) used there. What does a Property Management System (PMS) do?

a)

To measure a hotel's fair market share.

b)

To allow for guest check-in and check-out.

c)

To predict real-time customer demand.

d)

To maintain consistent rates for the same product.

15.

When booking a hotel, the hotel offers a "Run-of-House (ROH)" rate. What does this mean?

a)

The number of rooms occupied by paying guests.

b)

The generic descriptor for a standard room.

c)

The maintaining of consistent rates for the same product.

d)

The combination of arrival date and length of stay.