CHSP Corporate Account Management 2 — Questions and Answers
Question 1: When a corporate account's travel volume falls significantly below the committed room night block, what should the hotel sales manager do?
- Contact the account manager proactively to understand the cause and renegotiate terms if necessary (Correct answer)
- Immediately cancel the corporate agreement without discussion
- Impose full attrition penalties without communication
- Transfer the account to a junior sales associate
Correct answer: Contact the account manager proactively to understand the cause and renegotiate terms if necessary
Proactive communication preserves the relationship and may uncover solvable problems, such as a change in travel policy or internal reorganization.
Question 2: What is the role of a 'travel management company' (TMC) in corporate hotel sales?
- TMCs manage corporate travel programs and influence hotel selection, making them key intermediaries for the hotel sales team (Correct answer)
- TMCs are responsible for managing hotel loyalty programs
- TMCs only handle airline bookings, not hotel accommodations
- TMCs replace the need for a corporate rate agreement
Correct answer: TMCs manage corporate travel programs and influence hotel selection, making them key intermediaries for the hotel sales team
Building relationships with TMCs is essential because they guide corporate clients' hotel selection and booking behavior.
Question 3: Which information is most critical to gather during an initial corporate account sales call?
- Annual travel budget, primary destinations, number of travelers, and decision-making timeline (Correct answer)
- Names of all individual business travelers
- The client's personal loyalty program membership numbers
- Competitor hotel rates in the same market
Correct answer: Annual travel budget, primary destinations, number of travelers, and decision-making timeline
Understanding budget, destinations, volume, and timeline helps the sales manager craft a relevant proposal and prioritize the opportunity.
Question 4: What does 'dynamic pricing' mean in the context of corporate hotel rate agreements?
- Rates that fluctuate based on demand, typically offered as a fixed percentage below the hotel's best available rate (BAR) (Correct answer)
- Rates that are fixed for the entire year regardless of demand
- Rates that change based on the traveler's loyalty tier
- Rates determined solely by the TMC
Correct answer: Rates that fluctuate based on demand, typically offered as a fixed percentage below the hotel's best available rate (BAR)
Dynamic pricing agreements tie the corporate rate to BAR with a discount, meaning both parties benefit when rates are low and the hotel recovers revenue when demand is high.
Question 5: How should a hotel sales manager prioritize their portfolio of corporate accounts?
- By segmenting accounts into tiers based on current revenue and growth potential, focusing most attention on top-tier accounts (Correct answer)
- By giving equal time to every account regardless of size
- By prioritizing only new accounts and ignoring existing ones
- By prioritizing accounts that have the most complaints
Correct answer: By segmenting accounts into tiers based on current revenue and growth potential, focusing most attention on top-tier accounts
Account tiering ensures the sales manager allocates time and resources where they will generate the greatest return.
Question 6: What is a 'last room availability' (LRA) clause in a corporate hotel contract?
- A provision guaranteeing the corporate rate applies even when the hotel is near full capacity, as long as any room is available (Correct answer)
- A clause that gives the hotel the right to close rates on sold-out dates
- An agreement allowing the corporation to hold rooms without payment
- A policy that limits bookings to the last week of each month
Correct answer: A provision guaranteeing the corporate rate applies even when the hotel is near full capacity, as long as any room is available
LRA clauses are highly valued by corporate clients because they ensure rate access even during peak periods, though they command a premium.
CHSP Corporate Account Management 2
When a corporate account's travel volume falls significantly below the committed room night block, what should the hotel sales manager do?