CHA Revenue Management & Pricing 4

Question 1

What is 'channel contribution margin' used to evaluate?

Accepted Answer

The net profit generated by each distribution channel after subtracting acquisition costs

Answer

Channel contribution margin subtracts distribution costs from channel revenue to reveal which channels actually deliver the most profitable bookings.

Question 2

A hotel's 'rack rate' is best described as:

Accepted Answer

The published, undiscounted standard room rate before any promotions or negotiations

Answer

The rack rate is the hotel's official list price for a room type, from which all discounts, packages, and negotiated rates are derived.

Question 3

Which revenue management KPI specifically measures meeting and event space efficiency?

Accepted Answer

Revenue per available square foot (RevPAS)

Answer

RevPAS (Revenue Per Available Square Foot) measures how efficiently a hotel monetizes its meeting and function space inventory.

Question 4

A hotel implementing 'dynamic pricing' adjusts rates based on:

Accepted Answer

Real-time changes in demand, competitive rates, and booking pace

Answer

Dynamic pricing continuously adjusts rates in response to current market conditions, demand signals, and competitive positioning.

Question 5

The 'booking window' in hotel revenue management refers to:

Accepted Answer

The time between when a reservation is made and the actual arrival date

Answer

The booking window (or lead time) is the number of days in advance that a reservation is made prior to the stay date, used to analyze booking pace.

(CHA) Certified Hospitality Administrator Practice Test