CHA Revenue Management & Pricing 3

Question 1

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

Accepted Answer

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

Answer

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

Question 2

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

Accepted Answer

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

Answer

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

Question 3

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

Accepted Answer

Exponential smoothing

Answer

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

Question 4

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

Accepted Answer

A minimum length of stay or maximum length of stay

Answer

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

Question 5

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

Accepted Answer

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

Answer

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

(CHA) Certified Hospitality Administrator Practice Test