CHI Revenue & Yield Management 3

Question 1

In the context of revenue management, 'overbooking' is a strategy primarily designed to:

Accepted Answer

Offset expected cancellations and no-shows to maximize occupancy

Answer

Overbooking compensates for predicted cancellations and no-shows so that the hotel can achieve close to 100% occupancy.

Question 2

A 'rate fence' in revenue management is best described as:

Accepted Answer

A condition or restriction that justifies a price difference between customer segments

Answer

Rate fences are qualifying rules (e.g., advance purchase, non-refundable, loyalty status) that separate rate tiers and prevent customers from always choosing the cheapest option.

Question 3

The practice of matching the lowest publicly available rate across all channels is known as:

Accepted Answer

Rate parity

Answer

Rate parity requires a hotel to offer the same rate across all distribution channels so no channel undercuts the others.

Question 4

What does GOPPAR measure that RevPAR does not?

Accepted Answer

Total profitability including operating expenses, not just room revenue

Answer

GOPPAR (Gross Operating Profit per Available Room) accounts for all revenue streams and operating costs, providing a profitability view beyond room revenue alone.

Question 5

A hotel uses a 'close to arrival' (CTA) restriction on a specific date. This means:

Accepted Answer

No new reservations with an arrival on that date will be accepted

Answer

A CTA restriction prevents any new reservations from being made with an arrival on the restricted date, often used to protect stays that flow through from adjacent dates.

(CHI) Certified Hospitality Instructor Practice Test

(CHI) Certified Hospitality Instructor Practice Test

CHI Revenue & Yield Management 3