HM 441 Chapter1,3,4,5 & 9 Questions with Answers 2023,100% CORRECT

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HM 441 Chapter1,3,4,5 & 9 Questions with Answers 2023 Ch.1 Group Assignment Q's HM 441 The 3 major decisions of financial management involve - CORRECT ANSWER investing, financing, and payment ... of dividends Value is created if a projects - CORRECT ANSWER incremental benefits exceed incremental costs Disadvantage of the corporate form of organization - CORRECT ANSWER the tax treatment of dividends Difficulty in forming a Subchapter S Corporation - CORRECT ANSWER there can be no more than 75 owners Difference in preferred stock and common stock - CORRECT ANSWER common stockholders can vote for the board of directors If you wanted to maximize value for the owners which of the following actions would be the most effective? - CORRECT ANSWER Raising Prices Maximizing Revenue Cutting Cost None**** Three Factors that determine the value of future dividends are - CORRECT ANSWER size, timing, and risk Goal of wealth maximization for the owners makes sense for the firm because - CORRECT ANSWER if we have satisfied the owners, we have satisfied all other parties as well Best Ex. of an agency problem - CORRECT ANSWER lenders disagreeing with hotel owners about dividend payments Agency problems arise because - CORRECT ANSWER people usually act in their own best interest The best way to address agency problems is - CORRECT ANSWER design the initial contract proper with appropriate incentives You are the owner of a Comfort Inn and would like to hire a new general manager. In terms of preventing possible agency problems, what should you include in your offer? - CORRECT ANSWER Profit Sharing Best description of how McDonalds created value for their owners in the breakfast market - CORRECT ANSWER They generated additional revenues without increasing fixed costs A value-creating innovation of Holiday Inns was - CORRECT ANSWER a national reservation system A value creating innovation of Mariott was - CORRECT ANSWER guest rewards program HM 441 Chapter 3 The Hotel California has 642 rooms and 413...the occupancy percentage is: - CORRECT ANSWER 64% Measuring the effectiveness of rev mgt. system is: - CORRECT ANSWER difficult because of the causes of measurable change The Hotel California has 642 rooms and the room revenue is $84,593. The RevPAR is: - CORRECT ANSWER $131.76 To interpret measures of a hotel's performance, managers often compare those measures with: a. historical figures from comparable earlier period... b. the budget for the period c. industry or sector averages d. all of the above - CORRECT ANSWER all of the above In a 1050-room competitive set, Hotel A has 300 rooms, Hotel B has 350 rooms, and Hotel C has 400 rooms. During a stay...in which the entire competitive set sold 25,400 rooms...8,000 rooms. Which of the following statements is correct? - CORRECT ANSWER Hotel A exceeded its fair share Tashia's hotel sold 175 rooms last night at an ADR of $200.00. Her hotel has 250 rooms. What was Tashia's RevPAR last night? - CORRECT ANSWER $140 If room revenue is $75,884 and the total number of rooms sold is 662 then average daily rate is - CORRECT ANSWER $136.53 If the total rooms occupied are 622 and the total rooms available are 850, then the room occupancy percentage is: - CORRECT ANSWER 73.2% Which of the following statements is FALSE? A) Competitive sets can change with new ownership or changes in the environment. B) It is usually easier and cheaper to down-market a property than to conduct a major overhaul. C) Most Internet searches are organic with results based solely on relevant search criteria. D) Brand affiliation can help a hotel property connect with its customers. - CORRECT ANSWER C Gross operating profit per available room equals the Gross operating profit for a period divided by the ___________________? - CORRECT ANSWER Available rooms during that period What measurement is NOT part of the Revenue Management Key Performance Indicators (KPI) you can research to determine past performance? - CORRECT ANSWER Net revenue Which of the following statements about competitive sets is FALSE? - CORRECT ANSWER Most Internet searches are organic with results based solely on relevant search criteria (not commercial driven) Which 100-Room Hotel would you rather manage? - CORRECT ANSWER Hotel A: Average Rate=$ 240 ; Occupancy= 80% A given hotel's comp set should contain all other hotels: - CORRECT ANSWER that compete for the same guests or market segments Hotel nr. Rooms: 70 rooms; Total nr. rooms a year: 25,550 (70 rooms times 365 days in a year); Occupancy %: 75% Nr. Occupied rooms: 19,163 Rooms revenue: $1,300,018 ADR: $67.84 Chapter 4 What is the hotel's RevPAR? - CORRECT ANSWER $50.88 Which of the following statements about market intelligence is FALSE? - CORRECT ANSWER an effective rev manager usually purchases all available relevant market intelligence In terms of rates and economics, an airfare to remote locations (e.g. a resort in the middle of the Amazonian forest) is a good example of what? - CORRECT ANSWER complementary product In a property forecasted high period of demand period, if the RM displacement analysis shows that by accepting a certain group the overall net revenue gain is positive (more revenues than the costs of displacement transient demand in the future), increasing profitability, than its Sales or Reservations departments should be inclined to: - CORRECT ANSWER accept the group reservation Pace of build refers to: - CORRECT ANSWER the rate at which reservations are being made for a future date Nonphysical Price Fences, strategic controls or also commonly called Rates with "Fenced" Discounts e.g. Minimum Length of Stay (MLS) are: - CORRECT ANSWER "rules" or "criteria" or "conditions" that are put in place to govern the conditions and availability of a rate Wash Factor is...? - CORRECT ANSWER group members who check out early rather than stay the entire length of the event After customers have met their basic financial requirements, any remaining money is considered what? - CORRECT ANSWER discretionary income Denial reports from reservations show us how much more business we could have captured if we had additional capacity or inventory. Since there was more demand than supply, we need to assess whether our rates were too low for that time period. A denial occurs when: - CORRECT ANSWER a facility is not able to accommodate a guest due to unavailability of product or service at that price When demand levels rise above the hotel's capacity to meet it fully, demand becomes what? - CORRECT ANSWER constrained What is the booking pace (also called booking pattern)? - CORRECT ANSWER an indicator that compares the booking pace of the current year with those of previous years Which of the following contains a breakdown of all revenue and expenses reasonably planned and expected for a particular period and is not likely to change unless unforeseen events force a revision? - CORRECT ANSWER budget Melissa called the High Demand Hotel on Wednesday to make a weekend reservation. The reservation agent checked the computer and then politely told Melissa that the hotel was sold out and they wouldn't be able to provide her with a room. What type of guest would Melissa be classified as? - CORRECT ANSWER denial Which of the following is not a type of constraint? - CORRECT ANSWER business group Room rates are only one element of revenue; in constrained demand market situations, hotels want to capture what? - CORRECT ANSWER the highest yield guests based on total spend Personal income minus income taxes equals which of the following? - CORRECT ANSWER Disposable income HM 441 Chapter 5 Denial reports from reservations show us how much more business we could have captured if we had additional capacity or inventory. Since there was more demand than supply, we need to assess whether our rates were too low for that time period. A denial occurs when: - CORRECT ANSWER A facility is not able to accommodate a guest due to unavailability of product or service at that price Which are the rates which always apply to membership organizations? - CORRECT ANSWER promotional rates Which approach to pricing takes a long-term view? - CORRECT ANSWER strategic approach Which of the following rate types are NOT set by negotiation? - CORRECT ANSWER government rates How do we call the concept of changing room rates daily or even several times within a day based on up-to date changing market information (e.g. hotels overcharging people who needed a place to stay after an Hurricane devastated their homes)? - CORRECT ANSWER Demand-Based Dynamic Pricing The owner/manager of the Dew Drop Inn has a great deal of flexibility in responding to changes in local market conditions but cannot afford broad advertising exposure and pays relatively high prices for supplies. The Dew Drop Inn is probably a(n) ______________ property. - CORRECT ANSWER independent What is the lodging industry term for the situation that occurs when a hotel is unable to accommodate a guest's reservation preference due to the unavailability of the room or service at the price, or on the date, originally requested by the guest? - CORRECT ANSWER denied (reservation) What is a guest called who decides to stay past than his or her scheduled checkout date? - CORRECT ANSWER overstay What information do you need in order to calculate a Rate Achievement Factor (RAF)? - CORRECT ANSWER ADR and rack rate What is the industry term for a customer group which can be readily identified by one or more common characteristics? - CORRECT ANSWER market segment What is NOT part of the results or goals of Tactical Discounting? - CORRECT ANSWER Increases your property revenues, RevPAR and profitability What type of traditional market segmentation is often identified by postal code? - CORRECT ANSWER geographic What does up-selling ideally accomplish? a. increase revenues b. satisfy guests c. increase margins d. all of the above - CORRECT ANSWER all of the above From the following, which one is NOT part of Groups Business Partners? - CORRECT ANSWER catering managers Which of the following rate types is NOT a common rate type? - CORRECT ANSWER Continental rate A revenue manager notices that the hotel is filling up rapidly for a future date. In response, she decides to close a discount level for that day. This is an example of: - CORRECT ANSWER demand-based dynamic pricing Chapter Seven - HM 441 Final Displacement analysis can determine the quantifiable benefits of different options. However it needs to have the right circumstances. When is it appropriated? - CORRECT ANSWER When a reliable forecast indicates that there's more demand than our capacity, it will be a period of high demand Which of the following hotels would be most likely to need and benefit from displacement analysis? - CORRECT ANSWER An urban hotel during its busy season Which of the following is a step in the displacement analysis process? - CORRECT ANSWER Establish net room revenue differential A displacement analysis should be conducted: - CORRECT ANSWER When accepting a group booking will mean turning other business away Displacement analysis is a RM decisions making and comparative scenarios tool with a four step process: 1. _________________________ 2. Establish the net food and beverage revenue differential 3. Determine the other revenue 4. Summarize - CORRECT ANSWER Establish net room revenue differential Why does Gabor Forgacs mention in regards to displacement analysis that the numeric results of the analysis should not be the only criteria for the decision? - CORRECT ANSWER Because rather than a quick tactical interpretation of the numbers, one should consider other critical and eventually strategic information (ex. existing competitor key account) What information is needed to calculate a net room rate? - CORRECT ANSWER Room rate, variable costs, and costs of goods sold When might a revenue manager choose without questions to accept a less profitable group booking over a more profitable transient business? - CORRECT ANSWER The group is a regular customer of the hotel or a key account group from your comp set An individual traveling, dining, attending a game, or staying alone is usually referred to as a ____________. This type of guest may also be defined as an individual hospitality customer. - CORRECT ANSWER Transient In displacement analysis, if a possible group reservation will bring $3,850 in room revenue but according to your accurate forecast, you would expect to impact your future availability by displacing 33 transient demand rooms sold at $100 room/night, would you be inclined to accept or deny this group? - CORRECT ANSWER Based only on these numbers and taking into consideration nothing more, I would accept tithe current group booking request. Chapter Nine - HM 441 Final Which of the following traits are considered to be part of psychographic segmentation? - CORRECT ANSWER Lifestyle and personality The ratio that expresses how a change in the price of a product or service affects unit demand for that product or service is called? - CORRECT ANSWER Elasticity Which of the following is not a question that any customer relationship management system helps to answer of interest to a revenue manager? - CORRECT ANSWER How do I forecast the best customers? Which of the following statements is false? - CORRECT ANSWER Repositioning is a common alternative to rebranding What is a successful positioning strategy based on? - CORRECT ANSWER A set of competitive advantages [Show More]

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