CHI Hospitality Sales & Marketing 2 — Questions and Answers
Question 1: Which pricing strategy sets an initial high price for a new property or service to maximize revenue from early adopters before lowering it?
- Penetration pricing
- Price skimming (Correct answer)
- Value-based pricing
- Competitive pricing
Correct answer: Price skimming
Price skimming involves setting a high initial price to capture maximum revenue from customers willing to pay a premium, then gradually lowering the price.
Question 2: In hospitality marketing, what does the term 'shoulder season' refer to?
- Peak demand periods between holidays
- Transition periods between high and low seasons (Correct answer)
- Months with the highest occupancy rates
- Periods requiring maximum staffing
Correct answer: Transition periods between high and low seasons
Shoulder season refers to the transitional periods between peak and off-peak seasons, often offering moderate demand and pricing opportunities.
Question 3: A hotel's RevPAR declined despite stable occupancy. What most likely caused this?
- Increased operating costs
- A decrease in average daily rate (Correct answer)
- Higher number of group bookings
- Improved guest satisfaction scores
Correct answer: A decrease in average daily rate
RevPAR equals occupancy multiplied by ADR, so if occupancy is stable but RevPAR falls, the average daily rate must have decreased.
Question 4: Which distribution channel allows hotels to list rooms and set their own rates while paying a commission only on completed bookings?
- Global Distribution System (GDS)
- Merchant model OTA
- Agency model OTA (Correct answer)
- Direct booking engine
Correct answer: Agency model OTA
The agency model OTA allows hotels to control their own rates and only pay a commission when a booking is made and the guest stays.
Question 5: What is the primary purpose of a hospitality property's unique selling proposition (USP)?
- To set the lowest possible room rate
- To differentiate the property from competitors in the minds of buyers (Correct answer)
- To maximize occupancy during off-peak periods
- To standardize service delivery across departments
Correct answer: To differentiate the property from competitors in the minds of buyers
A USP communicates a compelling reason why a guest should choose one property over competitors by highlighting a distinctive benefit.
Question 6: A food and beverage director wants to increase covers during slow Tuesday dinners. Which tactic is MOST directly a sales promotion?
- Publishing a new menu on the restaurant's website
- Offering a two-for-one entrée deal every Tuesday (Correct answer)
- Training servers on upselling techniques
- Updating the restaurant's TripAdvisor profile
Correct answer: Offering a two-for-one entrée deal every Tuesday
Sales promotions are short-term incentives designed to stimulate immediate purchase, and a two-for-one deal directly encourages guests to dine on an otherwise slow night.
Question 7: In the context of hospitality sales, what is a 'definite booking'?
- A tentative reservation pending contract approval
- A confirmed reservation backed by a signed contract or deposit (Correct answer)
- A booking made through a third-party OTA
- A group booking with a minimum room block guarantee
Correct answer: A confirmed reservation backed by a signed contract or deposit
A definite booking is a confirmed reservation where the client has signed a contract or provided a deposit, making the business highly likely to materialize.
CHI Hospitality Sales & Marketing 2
Which pricing strategy sets an initial high price for a new property or service to maximize revenue from early adopters before lowering it?