CHI Revenue & Yield Management 2

Question 1

A hotel has 200 rooms and achieved an occupancy of 75% last night with an ADR of $120. What was the RevPAR?

Accepted Answer

$90

Answer

RevPAR = Occupancy% × ADR = 0.75 × $120 = $90.

Question 2

Which pricing strategy involves setting rates based on what competitors charge rather than on cost or demand?

Accepted Answer

Competitor-based pricing

Answer

Competitor-based pricing sets rates by benchmarking against rival properties rather than internal costs or perceived value.

Question 3

A length-of-stay restriction that requires guests to stay a minimum number of nights is called a:

Accepted Answer

Minimum length of stay (MLOS)

Answer

MLOS (Minimum Length of Stay) is a restriction requiring guests to book at least a set number of nights.

Question 4

The term 'unconstrained demand' in revenue management refers to:

Accepted Answer

The total demand that would exist if no capacity or rate restrictions were in place

Answer

Unconstrained demand represents the true market demand if the hotel had unlimited rooms and no pricing barriers.

Question 5

Which distribution channel typically yields the lowest net rate for a hotel after fees?

Accepted Answer

Online travel agencies (OTAs)

Answer

OTAs charge commissions of 15–25%, which significantly reduce the net rate the hotel receives compared to direct bookings.

(CHI) Certified Hospitality Instructor Practice Test