CHP Revenue Management & Pricing Strategy 1

Question 1

What does RevPAR stand for in hotel revenue management?

Accepted Answer

Revenue Per Available Room

Answer

RevPAR (Revenue Per Available Room) measures a hotel's ability to fill rooms at an average rate and is calculated as ADR × Occupancy %.

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

Yield management optimizes revenue by dynamically adjusting pricing based on demand, booking window, and market conditions.

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

RevPAR = ADR × Occupancy % = $120 × (150/200) = $120 × 0.75 = $90.

Question 4

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

Accepted Answer

Advance purchase / early bird pricing

Answer

Advance purchase rates reward early bookers with discounts while helping hotels secure revenue and improve forecasting accuracy.

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

The comp set is a group of comparable hotels used to benchmark metrics like RevPAR, ADR, and occupancy to understand market position.

(CHP) Certified Hospitality Professional Practice Test