Exam 12: Cost Information and Pricing

In its foyer shop, the Pacific Plaza hotel has a policy of keeping the cost of merchandise sold at 30% of selling prices. What selling price would be put on an item that cost $9?

A pricing philosophy that is designed to maximise revenue per available room and involves sales and marketing management developing pricing plans that recognise factors such as whether a reservation pertains to a quiet or busy season, weekday or weekend and also the nature of a customer's market segment (e.g., tour group booking vs a single transient guest) is known as.

A hotel increased its room rates from $100 to $110 and found that rooms sold per night decreased by 8%. The hotel's price elasticity index is:

The Bellisimo Hotel has 20 rooms that are 125 square meters and 40 rooms that are 100 square meters. Both types of room run at a 70% occupancy level. The rooms manager is seeking a revenue of $1,474,200 for the 360 days that the hotel will be open next year. Based on room size, at what rate should the larger rooms be priced?

The General Manager of the recently opened 30 room Taj Mahal Hotel has developed the following projected operating costs for the forthcoming year: Fixed costs: Salaries and wages \ 250,000 Maintenance 60,000 Other costs otal fixed costs The General Manager believes that if rooms are priced in the range of $100-$90, 10,000 room nights will be sold next year. All rooms are to be priced at the same rate. Capital invested in the hotel is $2,000,000 and the General Manager's target return on investment is 25%. In order to achieve this target rate of return, what price should be charged per room night sold?

Which of the following statements is untrue?

Which of the following statements is untrue?

Which of the following statements is untrue?

The SandCastle Hotel has thirty 42 square metre rooms that achieve an occupancy rate of 70% and forty 64 square metre rooms that achieve an occupancy rate of 60%. The hotel has a total room revenue target of $3,627 per day. What rate should be charged for a room night in one of the 42 square metre rooms?

Imagine your recently constructed 100 room hotel has determined that it will use the rule of a thousand to set room rates. The total cost of building the hotel was $15,000,000 and 20% of the infrastructure investment relates to non-accommodation hotel activities such as Food and Beverage. What price should be charged per room night?

A hotel dropped its room rates from $100 to $80 and found that rooms sold per night increased by 25%. The hotel's price elasticity index is:

Imagine your recently constructed 120 room hotel has determined that it will use the rule of a thousand to set room rates. The total cost of building the hotel was $15,200,000 and 25% of the infrastructure investment relates to non-accommodation hotel activities such as Food and Beverage. What price should be charged per room night?

To apply the required rate of return approach to setting room rates, you need to be provided with all of the following items except one. Identify the item not needed.

The Evasogrande Hotel has 30 rooms that are 110 square meters and 50 rooms that are 120 square meters. Both types of room run at a 75% occupancy level. The rooms manager is seeking a revenue of $2,008,800 for the 360 days that the hotel will be open next year. Using a relative room size pricing approach, determine the nightly rate that should be charged for the larger rooms.

Which of the following statements is untrue?