CHSP Corporate Account Management 1 — Questions and Answers
Question 1: What is a 'preferred vendor agreement' in corporate hotel sales?
- A negotiated contract granting a company discounted rates and priority booking in exchange for a committed volume of room nights (Correct answer)
- A one-time booking discount for a single corporate event
- A government rate agreement for federal employees
- An agreement limiting the hotel to a single corporate client
Correct answer: A negotiated contract granting a company discounted rates and priority booking in exchange for a committed volume of room nights
Preferred vendor agreements create a mutually beneficial, long-term relationship by exchanging volume commitment for preferential rates and services.
Question 2: When managing a national corporate account, which action best supports account retention?
- Conducting regular business reviews to assess performance, address issues, and identify new opportunities (Correct answer)
- Waiting for the client to raise concerns before meeting
- Focusing only on new bookings rather than existing ones
- Delegating all corporate account communication to the front desk
Correct answer: Conducting regular business reviews to assess performance, address issues, and identify new opportunities
Proactive business reviews demonstrate value and allow the sales manager to resolve dissatisfaction before it leads to account loss.
Question 3: What does 'RFP' stand for in corporate hotel sales, and what is its function?
- Request for Proposal — a formal document companies use to solicit bids from hotels for their travel program (Correct answer)
- Revenue Forecasting Plan — an internal hotel budgeting tool
- Rate Fulfillment Protocol — a system for processing payments
- Room Frequency Pattern — a report on booking trends
Correct answer: Request for Proposal — a formal document companies use to solicit bids from hotels for their travel program
The RFP process is the standard mechanism through which corporate travel managers evaluate and select preferred hotels for their programs.
Question 4: Which metric is most important when evaluating the value of a corporate account to the hotel?
- Total annual room night production and average daily rate (ADR) achieved (Correct answer)
- Number of loyalty points redeemed by travelers
- Percentage of reservations made by phone vs. online
- Number of complaints filed per stay
Correct answer: Total annual room night production and average daily rate (ADR) achieved
Room night volume multiplied by ADR gives the clearest picture of a corporate account's revenue contribution.
Question 5: In corporate account management, what is 'wallet share'?
- The percentage of a company's total hotel spend captured by a specific hotel or brand (Correct answer)
- The portion of a corporate traveler's expense report allocated to meals
- The share of meeting revenue vs. transient revenue
- The ratio of direct bookings to OTA bookings
Correct answer: The percentage of a company's total hotel spend captured by a specific hotel or brand
Increasing wallet share means capturing more of a company's existing travel spend rather than finding entirely new clients.
Question 6: What is the purpose of a 'rate cap' in a corporate hotel agreement?
- To set a maximum negotiated rate that protects the corporation from price increases during the contract period (Correct answer)
- To limit the number of rooms available to corporate travelers
- To prevent the hotel from offering discounts to other clients
- To set the minimum spend on food and beverage
Correct answer: To set a maximum negotiated rate that protects the corporation from price increases during the contract period
A rate cap gives corporate travel managers budget predictability by guaranteeing the negotiated rate won't exceed a specified ceiling.
CHSP Corporate Account Management 1
What is a 'preferred vendor agreement' in corporate hotel sales?