CHP Revenue Management & Pricing Strategy 2

Question 1

Which distribution channel typically charges hotels the HIGHEST commission fees?

Accepted Answer

Online Travel Agencies (OTAs) like Expedia or Booking.com

Answer

OTAs typically charge commissions of 15–30%, making them the most expensive distribution channel compared to direct bookings.

Question 2

What is 'rate parity' in the context of hotel distribution?

Accepted Answer

Maintaining consistent room rates across all distribution channels

Answer

Rate parity requires hotels to offer the same price across all channels (OTAs, direct, GDS) to avoid undercutting any single platform.

Question 3

A hotel's occupancy is low mid-week. Which revenue management tactic is MOST appropriate?

Accepted Answer

Offer promotional rates or packages to stimulate demand

Answer

When occupancy is below target, promotional rates, packages, or targeted campaigns can stimulate incremental bookings and fill unsold inventory.

Question 4

What does GOPPAR measure in hotel performance analysis?

Accepted Answer

Gross Operating Profit Per Available Room

Answer

GOPPAR (Gross Operating Profit Per Available Room) measures total profitability by accounting for all revenue and operating expenses, not just room revenue.

Question 5

Which factor would MOST likely cause a revenue manager to implement a 'minimum length of stay' (MinLOS) restriction?

Accepted Answer

High demand around a local event, with risk of stranded low-value nights adjacent to it

Answer

MinLOS restrictions during high-demand periods (e.g., around a concert or convention) prevent short stays that would block higher-value multi-night reservations.

(CHP) Certified Hospitality Professional Practice Test

(CHP) Certified Hospitality Professional Practice Test

CHP Revenue Management & Pricing Strategy 2