Revenue & Yield Management Flashcards
7 cards from real CHI practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Revenue & Yield Management flashcards as text
In the context of revenue management, 'overbooking' is a strategy primarily designed to:
Answer: Offset expected cancellations and no-shows to maximize occupancy
Overbooking compensates for predicted cancellations and no-shows so that the hotel can achieve close to 100% occupancy.
A 'rate fence' in revenue management is best described as:
Answer: A condition or restriction that justifies a price difference between customer segments
Rate fences are qualifying rules (e.g., advance purchase, non-refundable, loyalty status) that separate rate tiers and prevent customers from always choosing the cheapest option.
The practice of matching the lowest publicly available rate across all channels is known as:
Answer: Rate parity
Rate parity requires a hotel to offer the same rate across all distribution channels so no channel undercuts the others.
What does GOPPAR measure that RevPAR does not?
Answer: Total profitability including operating expenses, not just room revenue
GOPPAR (Gross Operating Profit per Available Room) accounts for all revenue streams and operating costs, providing a profitability view beyond room revenue alone.
A hotel uses a 'close to arrival' (CTA) restriction on a specific date. This means:
Answer: No new reservations with an arrival on that date will be accepted
A CTA restriction prevents any new reservations from being made with an arrival on the restricted date, often used to protect stays that flow through from adjacent dates.
Which of the following best describes 'transient demand' in hotel revenue management?
Answer: Individual leisure and business travelers booking outside of group blocks
Transient demand refers to individual bookings (FIT and BT) as opposed to group or contract business.
In revenue management, 'displacement analysis' is used to determine:
Answer: Whether accepting group business is more profitable than holding rooms for transient guests
Displacement analysis calculates the total revenue given up by blocking rooms for a group versus selling those rooms to higher-rated transient guests.