CHA Revenue Management & Pricing

Question 1

What is Revenue Per Available Room (RevPAR) and how is it calculated?

Accepted Answer

Total room revenue divided by total available rooms, measuring revenue performance

Answer

Total revenue divided by number of guests

Answer

Average daily rate multiplied by number of employees

Answer

Net profit divided by total rooms sold

Question 2

What is dynamic pricing in hotel revenue management?

Accepted Answer

Adjusting room rates in real-time based on demand, competition, and market conditions

Answer

Setting one fixed price for all rooms year-round

Answer

Offering the same discount to all guests

Answer

Pricing based solely on room size

Question 3

What is the Average Daily Rate (ADR)?

Accepted Answer

Total room revenue divided by the number of rooms sold

Answer

The rate offered to travel agents only

Answer

The lowest rate available on any given day

Answer

The rate published in the hotel's brochure

Question 4

What is overbooking and why do hotels practice it?

Accepted Answer

Accepting more reservations than available rooms to compensate for expected cancellations and no-shows

Answer

Booking rooms for more nights than guests requested

Answer

Charging guests more than the listed room rate

Answer

Assigning multiple guests to the same room

Question 5

What is the purpose of a rate fence in revenue management?

Accepted Answer

To create logical barriers between different rate levels to prevent customers from trading down

Answer

To physically fence off premium rooms in the hotel

Answer

To limit the number of rooms available for sale

Answer

To restrict access to the hotel property

Question 6

What is yield management's primary objective in hospitality?

Accepted Answer

To sell the right room to the right customer at the right price and time

Answer

To fill every room regardless of rate

Answer

To charge the highest possible rate to all guests

Answer

To minimize the number of room types offered