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
Which of the following is an example of a physical rate fence?
Answer: A room with a parking space included in the rate
Physical rate fences are tied to a tangible product feature (e.g., parking, view, room size) that justifies the price difference.
A hotel's 'pickup report' in group revenue management tracks:
Answer: The number of group block rooms that have actually been reserved versus the total contracted block
A pickup report monitors how many rooms in a group block have been booked by attendees, helping the hotel manage attrition risk.
The 'booking pace' metric in revenue management refers to:
Answer: The rate at which reservations are being made for a future date compared to the same period last year
Booking pace compares current reservation accumulation for a future date to historical pace, signaling whether demand is ahead of or behind forecast.
In hospitality, 'total revenue management' expands the traditional room-centric approach to include:
Answer: All hotel revenue streams such as F&B, spa, parking, and event space
Total revenue management optimizes profit across every revenue-generating department, not just rooms.
A revenue manager notices that the hotel's Occupancy Index is above 100 but the ADR Index is below 100. This indicates:
Answer: The hotel is capturing more than its fair share of occupied rooms but at lower rates than the competitive set
An Occupancy Index above 100 means the hotel wins on volume, but an ADR Index below 100 means it prices lower than competitors, often indicating rate dilution.
Which of the following best describes 'channel management' in hotel distribution?
Answer: Controlling rate and inventory availability across multiple booking channels simultaneously
Channel management involves using a channel manager or PMS to update rates and availability across all connected distribution channels in real time.
A 'hurdle rate' in revenue management refers to:
Answer: The minimum acceptable rate below which a room should not be sold for a specific date
A hurdle rate sets the floor price for a given date; any reservation priced below it is rejected to protect potential higher-rated business.