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 demand forecasting method uses historical booking data patterns to predict future occupancy?
Answer: Time-series analysis
Time-series analysis uses historical reservation data over time to identify patterns and project future demand.
An 'attrition clause' in a group contract protects the hotel by:
Answer: Requiring the group to pay for a minimum percentage of the contracted room block even if not fully used
An attrition clause requires the group to meet a contracted room pickup minimum or pay a penalty for unused rooms.
The concept of 'price elasticity of demand' in hospitality means that:
Answer: A highly elastic market sees significant demand changes in response to small price changes
High price elasticity means demand is sensitive to price changes; a small rate increase leads to a notable drop in bookings.
A revenue manager implements a 'last room value' strategy. This means:
Answer: The hotel will sell its final available room only at or above a premium rate that reflects high-demand value
Last room value pricing recognizes that when only one room remains, demand is at its peak and the rate should reflect maximum willingness to pay.
A property's 'competitive set' (comp set) is primarily used to:
Answer: Benchmark the hotel's performance on key metrics against similar competing properties
The comp set is a group of directly competing hotels used to benchmark performance metrics like RevPAR, ADR, and occupancy through tools like STR reports.
Which of the following is a key advantage of direct bookings over OTA bookings for a hotel?
Answer: Lower distribution costs and direct access to guest data for relationship management
Direct bookings eliminate OTA commissions (15–25%) and allow the hotel to capture guest data for CRM and loyalty purposes.
In revenue management, 'segmentation' is most important because it allows a hotel to:
Answer: Offer different rates and restrictions to different customer groups based on their price sensitivity and booking behavior
Market segmentation enables hotels to price discriminate legally by matching rates and conditions to each segment's willingness to pay and booking patterns.