Revenue Management & Financial Operations Flashcards
6 cards from real CHS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Revenue Management & Financial Operations flashcards as text
What is upselling and cross-selling in hospitality?
Answer: Upselling offers a premium version of what the guest is buying; cross-selling suggests complementary products or services
Upselling (room upgrade, premium wine) offers a better version. Cross-selling (spa booking with room, dessert with dinner) offers complementary products. Both increase revenue while enhancing the guest experience when done authentically.
How should a supervisor manage inventory to control costs?
Answer: Regular physical counts, par level maintenance, FIFO rotation, waste tracking, and vendor comparison
Effective inventory management includes setting par levels based on usage patterns, conducting regular counts, implementing FIFO rotation, tracking waste and theft, comparing vendor pricing, and using inventory management software.
What is a daily revenue report and what should it include?
Answer: A report summarizing the day's revenue by department, occupancy statistics, and comparison to budget and prior year
Daily revenue reports include rooms sold, occupancy percentage, ADR, RevPAR, food and beverage revenue, other revenue sources, and comparisons to budget, forecast, and same day prior year.
What is breakeven analysis in hospitality?
Answer: Calculating the revenue level at which total costs equal total revenue, meaning the operation neither profits nor loses money
Breakeven analysis determines how much revenue (or how many rooms/covers) is needed to cover all fixed and variable costs, helping supervisors understand minimum performance requirements.
How should a supervisor handle cash management and POS systems?
Answer: Ensure proper cash handling procedures, regular till counts, POS training for staff, void/discount authorization protocols, and end-of-shift reconciliation
Supervisors must enforce cash handling policies: individual drawer assignments, beginning/end-of-shift counts, authorized void and discount procedures, secure cash drops, and POS system monitoring to prevent errors and theft.
What is competitive analysis in hospitality management?
Answer: Monitoring competitor pricing, services, guest reviews, and market positioning to inform strategic decisions
Competitive analysis involves tracking comp set pricing (through STR reports), monitoring competitor guest reviews, evaluating their service offerings, and understanding market trends to position the property effectively.