CHIA Competitive Intelligence & Benchmarking 1

Question 1

In hotel benchmarking, what does the acronym STR stand for?

Accepted Answer

Smith Travel Research

Answer

STR (Smith Travel Research) is the primary benchmarking data provider for the hotel industry, supplying competitive performance data used in STAR reports.

Question 2

A hotel's Revenue Generation Index (RGI) is calculated by dividing the hotel's RevPAR by the RevPAR of its:

Accepted Answer

Competitive set

Answer

RGI compares a hotel's RevPAR directly to its competitive set's RevPAR to measure relative revenue performance.

Question 3

What does the Market Penetration Index (MPI) specifically measure?

Accepted Answer

A hotel's occupancy relative to its competitive set

Answer

MPI measures how well a hotel captures occupancy share relative to its competitive set; an MPI of 100 means the hotel holds its fair share of occupancy.

Question 4

A hotel that achieves an MPI of 110 is best described as:

Accepted Answer

Capturing 10% more than its fair share of occupancy

Answer

An index above 100 means the hotel is outperforming its competitive set; an MPI of 110 indicates it captures 10% more than its proportionate share of occupancy demand.

Question 5

What is 'fair share' in the context of hotel competitive benchmarking?

Accepted Answer

The proportion of total competitive set supply a hotel represents

Answer

Fair share is the percentage of total room supply a hotel represents in its competitive set; if a hotel has 200 rooms and the comp set has 1,000, its fair share is 20%.

CHIA - Certified in Hotel Industry Analytics Practice Test

CHIA - Certified in Hotel Industry Analytics Practice Test

CHIA Competitive Intelligence & Benchmarking 1