CHIA Competitive Intelligence & Benchmarking 2

Question 1

A hotel's STAR report shows an RGI of 95. What does this indicate?

Accepted Answer

The hotel is capturing 5% less RevPAR than its competitive set

Answer

An RGI below 100 means the hotel is not capturing its fair share of revenue; an RGI of 95 indicates it is performing 5% below the competitive set average.

Question 2

Which criterion is most important when selecting hotels for a competitive set?

Accepted Answer

Hotels that guests and meeting planners consider as alternatives

Answer

A competitive set should reflect hotels that potential guests actually consider when choosing where to stay, making customer perception the primary selection criterion.

Question 3

What is the purpose of analyzing 'running 12-month' data in a STAR report?

Accepted Answer

To smooth out seasonal variability and show annual trend performance

Answer

Running 12-month (or year-to-date rolling) data eliminates seasonal distortions, providing a clearer picture of year-over-year performance trends.

Question 4

In competitive benchmarking, 'supply penetration' refers to a hotel's:

Accepted Answer

Number of rooms as a percentage of total comp set rooms

Answer

Supply penetration is the hotel's room count divided by the total room supply of its competitive set, establishing its baseline fair share expectation.

Question 5

A hotel with an ARI greater than 100 and an MPI less than 100 is most likely pursuing which strategy?

Accepted Answer

Premium pricing that sacrifices some occupancy for higher rates

Answer

Higher ARI with lower MPI means the hotel charges above-average rates but attracts fewer guests, indicating a rate-premium strategy that trades occupancy for ADR.

CHIA - Certified in Hotel Industry Analytics Practice Test

CHIA - Certified in Hotel Industry Analytics Practice Test

CHIA Competitive Intelligence & Benchmarking 2