CHA Revenue Management & Pricing 5

Question 1

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

Accepted Answer

Offset expected no-shows and cancellations to achieve full occupancy

Answer

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

Question 2

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

Accepted Answer

The average RevPAR of its competitive set

Answer

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

Question 3

In revenue management, 'shoulder nights' refer to:

Accepted Answer

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

Answer

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

Question 4

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

Accepted Answer

Value-based pricing

Answer

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

Question 5

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

Accepted Answer

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

Answer

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

(CHA) Certified Hospitality Administrator Practice Test

(CHA) Certified Hospitality Administrator Practice Test

CHA Revenue Management & Pricing 5