CPP Dynamic Pricing & Revenue Management 2

Question 1

A hotel chain uses historical booking data and local event calendars to adjust room rates daily. This is best described as which type of pricing system?

Accepted Answer

Demand-based dynamic pricing

Answer

Demand-based dynamic pricing uses historical and predictive demand signals to adjust prices in real time.

Question 2

Revenue per Available Room (RevPAR) is calculated as:

Accepted Answer

Average daily rate multiplied by occupancy rate

Answer

RevPAR = ADR × Occupancy Rate, combining both price and utilization into a single performance metric.

Question 3

An airline sells 20% of seats at a deep discount early, then raises prices as the departure date nears. This strategy is called:

Accepted Answer

Yield management

Answer

Yield management allocates inventory across price tiers and time horizons to maximize total revenue.

Question 4

Which metric measures the percentage of available capacity that is actually sold over a period?

Accepted Answer

Load factor

Answer

Load factor (or utilization/occupancy rate) is sold units divided by available capacity.

Question 5

A company detects that a competitor just lowered prices and automatically responds with a matching reduction within minutes. This is an example of:

Accepted Answer

Algorithmic repricing

Answer

Algorithmic repricing uses automated rules or ML models to react to competitive price changes in near real time.

(CPP) Certified Pricing Professional Practice Test

(CPP) Certified Pricing Professional Practice Test

CPP Dynamic Pricing & Revenue Management 2