CHI Hospitality Sales & Marketing 2

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?

Accepted Answer

Price skimming

Answer

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?

Accepted Answer

Transition periods between high and low seasons

Answer

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?

Accepted Answer

A decrease in average daily rate

Answer

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?

Accepted Answer

Agency model OTA

Answer

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)?

Accepted Answer

To differentiate the property from competitors in the minds of buyers

Answer

A USP communicates a compelling reason why a guest should choose one property over competitors by highlighting a distinctive benefit.

(CHI) Certified Hospitality Instructor Practice Test

(CHI) Certified Hospitality Instructor Practice Test

CHI Hospitality Sales & Marketing 2