Practice Test Geeks(CHA) Certified Hospitality Administrator Practice Test
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Revenue Management & Pricing Flashcards

7 cards from real CHA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

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  1. What does 'total revenue management' expand beyond traditional room revenue to include?

    Answer: All revenue-generating outlets across the hotel including F&B, spa, and parking

    Total revenue management optimizes revenue across all hotel profit centers—rooms, F&B, spa, meeting space, parking—not just guestrooms.

  2. A 'hurdle rate' in hotel revenue management is best defined as:

    Answer: The minimum acceptable rate at which a room should be sold on a given night

    A hurdle rate is the floor price below which a room should not be sold, protecting revenue integrity on high-demand nights.

  3. Which forecasting method uses weighted averages of historical data, giving more importance to recent periods?

    Answer: Exponential smoothing

    Exponential smoothing assigns decreasing weights to older data points, making recent booking patterns more influential in the forecast.

  4. When a hotel offers a 'stay-sensitive' rate restriction, it is requiring:

    Answer: A minimum length of stay or maximum length of stay

    Stay-sensitive restrictions include minimum length of stay (MinLOS) and maximum length of stay (MaxLOS) controls to optimize room night yield.

  5. The 'cost of intermediation' in hotel distribution refers to:

    Answer: Commission fees and transaction costs paid to third-party booking channels

    Cost of intermediation includes OTA commissions, GDS fees, and other charges paid to intermediaries for delivering a booking.

  6. Which concept describes the practice of selling perishable inventory (hotel rooms) at a discount close to the date to avoid zero revenue?

    Answer: Last-minute distressed inventory pricing

    Since an unsold room night generates zero revenue, hotels may discount last-minute availability rather than let rooms go empty.

  7. In the context of group business, 'displacement analysis' evaluates:

    Answer: Whether accepting group business will displace higher-rated transient demand

    Displacement analysis compares the total group revenue against the transient revenue that would be lost by blocking rooms for the group.