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. A hotel uses 'overbooking' as a revenue management tactic primarily to:

    Answer: Offset expected no-shows and cancellations to achieve full occupancy

    Strategic overbooking accounts for historical no-show and cancellation rates so the hotel achieves near-100% occupancy rather than suffering empty rooms.

  2. The 'RevPAR Index' (also called MPI or Market Penetration Index) compares a hotel's RevPAR to:

    Answer: The average RevPAR of its competitive set

    The RevPAR Index = (Hotel RevPAR / Competitive Set RevPAR) × 100, showing whether the property is outperforming or underperforming its comp set.

  3. In revenue management, 'shoulder nights' refer to:

    Answer: Nights adjacent to peak demand periods that may benefit from strategic pricing

    Shoulder nights flank high-demand dates and can be leveraged with minimum stay requirements or attractive packages to extend peak-period revenue.

  4. Which pricing approach bases room rates primarily on the perceived value to the customer rather than cost or competition?

    Answer: Value-based pricing

    Value-based pricing sets rates according to what guests believe the experience is worth, often allowing premium pricing for differentiated properties.

  5. What is the purpose of a 'best available rate' (BAR) pricing strategy?

    Answer: To offer the lowest non-restricted rate available for a given night across all channels

    BAR is the best publicly available rate for a date without restrictions, serving as the baseline from which other rates (loyalty, corporate) are derived.

  6. When demand is low, which revenue management action is most appropriate?

    Answer: Open lower rate tiers, eliminate minimum stay restrictions, and activate promotions

    In low-demand periods, loosening restrictions and activating promotions stimulates bookings while still generating some revenue.

  7. GOPPAR (Gross Operating Profit Per Available Room) is considered superior to RevPAR for performance evaluation because it:

    Answer: Accounts for operating expenses, providing a profitability view rather than just revenue

    GOPPAR subtracts operating costs from total revenue before dividing by available rooms, revealing true profitability rather than just top-line revenue.