CHS Revenue Management & Financial Operations 2

Question 1

What is upselling and cross-selling in hospitality?

Accepted Answer

Upselling offers a premium version of what the guest is buying; cross-selling suggests complementary products or services

Answer

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.

Question 2

How should a supervisor manage inventory to control costs?

Accepted Answer

Regular physical counts, par level maintenance, FIFO rotation, waste tracking, and vendor comparison

Answer

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.

Question 3

What is a daily revenue report and what should it include?

Accepted Answer

A report summarizing the day's revenue by department, occupancy statistics, and comparison to budget and prior year

Answer

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.

Question 4

What is breakeven analysis in hospitality?

Accepted Answer

Calculating the revenue level at which total costs equal total revenue, meaning the operation neither profits nor loses money

Answer

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.

Question 5

How should a supervisor handle cash management and POS systems?

Accepted Answer

Ensure proper cash handling procedures, regular till counts, POS training for staff, void/discount authorization protocols, and end-of-shift reconciliation

Answer

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.

CHS - Certified Hospitality Supervisor Practice Test

CHS - Certified Hospitality Supervisor Practice Test

CHS Revenue Management & Financial Operations 2