CHP Revenue Management & Pricing Strategy

Question 1

What does RevPAR stand for in hotel revenue management?

Accepted Answer

Revenue Per Available Room

Answer

Revenue Per Active Rate

Answer

Rooms Per Available Rate

Answer

Revenue Per Arriving Reservation

Question 2

What is the primary goal of yield management in a hotel?

Accepted Answer

To maximize revenue by selling the right room to the right guest at the right time and price

Answer

To minimize the number of rooms sold

Answer

To standardize room rates regardless of demand

Answer

To reduce the cost of housekeeping labor

Question 3

A hotel has 200 rooms, sells 150 rooms in a night, and achieves an ADR of $120. What is the RevPAR?

Accepted Answer

$90

Answer

$120

Answer

$75

Answer

$180

Question 4

Which pricing strategy involves offering lower rates for reservations made far in advance?

Accepted Answer

Advance purchase / early bird pricing

Answer

Last-minute pricing

Answer

Rack rate pricing

Answer

Walk-in pricing

Question 5

What is the 'competitive set' (comp set) used for in hotel revenue management?

Accepted Answer

Benchmarking the hotel's performance against similar competing properties

Answer

Identifying which staff to promote

Answer

Setting the minimum wage for hospitality workers

Answer

Determining the cost of goods sold in F&B

Question 6

What does a hotel's 'rack rate' represent?

Accepted Answer

The published, undiscounted standard room rate before any promotions

Answer

The discounted rate offered to loyalty members

Answer

The rate charged to travel agents

Answer

The rate offered during off-peak season