CHIA Revenue Management & Performance Metrics — Questions and Answers

Question 1: A 200-room hotel sells 150 rooms for total room revenue of $22,500. What is its RevPAR?

$150.00
$112.50 (Correct answer)
$75.00
$135.00

Correct answer: $112.50

RevPAR = room revenue / available rooms = $22,500 / 200 = $112.50.

Question 2: What does GOPPAR measure?

Gross room revenue per occupied room
Group occupancy per available room
Gross operating profit per available room (Correct answer)
Guest-paid ancillary revenue per room

Correct answer: Gross operating profit per available room

GOPPAR divides gross operating profit by available rooms, capturing profitability rather than revenue alone.

Question 3: Which metric divides revenue from all departments (rooms, F&B, spa, etc.) by available rooms?

TRevPAR (Correct answer)
RevPAR
ADR
RevPOR

Correct answer: TRevPAR

Total RevPAR (TRevPAR) includes all operated-department revenue, not just rooms.

Question 4: If ADR rises 10% while occupancy falls 10%, what happens to RevPAR?

It stays exactly the same
It rises about 1%
It falls about 10%
It falls about 1% (Correct answer)

Correct answer: It falls about 1%

RevPAR = ADR × occupancy, so 1.10 × 0.90 = 0.99, a 1% decline.

Question 5: A hotel's RevPAR is $90 and its competitive set's RevPAR is $100. What is its RevPAR Index (RGI)?

111
90 (Correct answer)
110
10

Correct answer: 90

RGI = (hotel RevPAR / comp set RevPAR) × 100 = 90.

Question 6: A hotel runs 80% occupancy while its comp set runs 75%. What is its Occupancy Index (MPI)?

106.7 (Correct answer)
93.8
105.0
125.0

Correct answer: 106.7

MPI = (80 / 75) × 100 ≈ 106.7.

Question 7: A hotel's ADR is $150 and its comp set's ADR is $160. What is its ARI?

106.7
96.0
93.75 (Correct answer)
110.0

Correct answer: 93.75

ARI = (150 / 160) × 100 = 93.75.

Question 8: Why would a revenue manager place a minimum length-of-stay (MinLOS) restriction around a peak night?

To raise the rate on low-demand shoulder nights automatically
To keep one-night peak bookings from blocking longer, higher-value stays (Correct answer)
To lower overbooking risk on the shoulder nights
To meet OTA rate parity rules

Correct answer: To keep one-night peak bookings from blocking longer, higher-value stays

MinLOS stops one-night bookings on the peak night from displacing multi-night stays that also fill the shoulder nights.

Question 9: What does a Closed to Arrival (CTA) restriction do?

Closes the date to all bookings
Stops departures on that date
Allows only group arrivals
Blocks new arrivals on that date but allows stays that arrived earlier to continue through it (Correct answer)

Correct answer: Blocks new arrivals on that date but allows stays that arrived earlier to continue through it

CTA blocks check-ins on a date while still accepting stays that arrived on earlier dates.

Question 10: Which forecasting approach projects final occupancy by adding historical average bookings still to come to the rooms already on the books?

Additive pickup method (Correct answer)
Exponential smoothing of past occupancy
Regression on room rate
Moving average of ADR

Correct answer: Additive pickup method

The additive pickup method adds the historical average pickup for the remaining days to current on-the-books rooms.

Question 11: In a displacement analysis for a group request, what is compared?

The group's ADR versus the comp set ADR
The group's room count versus hotel capacity
The group's total value (rooms plus ancillary, minus costs) versus the transient revenue it would displace (Correct answer)
The group's booking window versus the transient booking window

Correct answer: The group's total value (rooms plus ancillary, minus costs) versus the transient revenue it would displace

Displacement analysis checks whether the group's net contribution beats the transient business it would push out.

Question 12: What is unconstrained demand?

Demand for rooms after restrictions are applied
Total demand that would exist if there were no capacity or rate restrictions (Correct answer)
Demand only from walk-in guests
Demand net of cancellations and no-shows

Correct answer: Total demand that would exist if there were no capacity or rate restrictions

Unconstrained demand estimates true market demand, including bookings turned away because of capacity or controls.

Question 13: An optimal overbooking level is set by balancing which two costs?

Labor cost and housekeeping cost
Commission cost and marketing cost
Room cost and F&B cost
Cost of walking a guest and cost of an unsold (spoiled) room (Correct answer)

Correct answer: Cost of walking a guest and cost of an unsold (spoiled) room

Overbooking weighs the cost of relocating guests against the lost revenue of empty rooms caused by no-shows and cancellations.

Question 14: In hotel pricing, what does BAR stand for?

Best Available Rate (Correct answer)
Base Average Rate
Booked Adjusted Revenue
Benchmark Allocation Ratio

Correct answer: Best Available Rate

BAR is the lowest unrestricted rate available to the public for a given night.

Question 15: What does Net RevPAR account for that standard RevPAR does not?

Food and beverage revenue
Distribution costs such as commissions and transaction fees (Correct answer)
Out-of-order rooms
Taxes collected from guests

Correct answer: Distribution costs such as commissions and transaction fees

Net RevPAR subtracts acquisition and distribution costs from room revenue before dividing by available rooms.

Question 16: An OTA charges an 18% commission on a $200 booking. What net rate does the hotel keep?

$182
$218
$164 (Correct answer)
$36

Correct answer: $164

$200 × (1 − 0.18) = $164.

Question 17: What does Cost Per Occupied Room (CPOR) measure?

Average rate paid per occupied room
Marketing cost per available room
Commission paid per booking
Operating cost to service each occupied room (Correct answer)

Correct answer: Operating cost to service each occupied room

CPOR divides the rooms department's operating costs by occupied rooms to show how efficiently each stay is serviced.

Question 18: Revenue rises $100,000 year over year and GOP rises $60,000. What is the flow-through?

60% (Correct answer)
40%
167%
100%

Correct answer: 60%

Flow-through = change in GOP / change in revenue = $60,000 / $100,000 = 60%.

Question 19: In group sales, what is the 'wash'?

Rooms upgraded at no charge
The share of a contracted room block that goes unused (Correct answer)
Extra rooms added after the contract is signed
The discount given off BAR

Correct answer: The share of a contracted room block that goes unused

Wash is the difference between rooms blocked and rooms actually picked up by the group.

Question 20: What does 'booking window' (lead time) measure?

Length of the guest's stay
Time between check-in and check-out
Number of days between when a reservation is made and arrival (Correct answer)
Hours the front desk is open for check-in

Correct answer: Number of days between when a reservation is made and arrival

Lead time is the number of days between booking and arrival, a key input for pace and pricing decisions.

Question 21: A negotiated multi-month airline crew agreement is usually classified in which market segment?

Transient retail
Group leisure
Wholesale
Contract (Correct answer)

Correct answer: Contract

Long-term fixed agreements such as airline crew rooms are tracked as contract business.

CHIA Revenue Management & Performance Metrics

A 200-room hotel sells 150 rooms for total room revenue of $22,500.
What is its RevPAR?

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