CHA Revenue Management & Pricing 2

Question 1

Which metric measures the revenue generated per available seat hour in a restaurant?

Accepted Answer

RevPASH

Answer

RevPASH (Revenue Per Available Seat Hour) is the food-and-beverage equivalent of RevPAR, measuring dining revenue efficiency.

Question 2

A hotel's ADR is $150 and its occupancy is 70%. What is the RevPAR?

Accepted Answer

$105

Answer

RevPAR = ADR × Occupancy Rate = $150 × 0.70 = $105.

Question 3

What is the primary purpose of a hotel's rate fence?

Accepted Answer

To segment customers and prevent rate arbitrage between segments

Answer

Rate fences are conditions (advance purchase, non-refundable, Saturday-night stay) that prevent customers from qualifying for rates intended for other segments.

Question 4

Which distribution channel typically yields the highest net revenue for a hotel?

Accepted Answer

Direct hotel website

Answer

Direct bookings through the hotel's own website carry no commission costs, yielding the highest net revenue per reservation.

Question 5

A hotel experiences a 'compression night' when:

Accepted Answer

Demand significantly exceeds supply in the market, allowing aggressive rate increases

Answer

Compression nights occur when market-wide demand greatly exceeds available supply, giving hotels pricing power to push rates higher.

(CHA) Certified Hospitality Administrator Practice Test

(CHA) Certified Hospitality Administrator Practice Test

CHA Revenue Management & Pricing 2