AHLEI Certified Hospitality Revenue Manager (CHRM)

What is the primary goal of hotel revenue management?

• AMaximizing occupancy regardless of rate
• BMinimizing the number of distribution channels used
• CSelling the right room to the right guest at the right time for the right price through t…
• DCharging every guest the same standardized rate

Why is lodging especially well suited to revenue management?

• ARooms can be stored and sold later if unsold tonight
• BDemand for hotel rooms never fluctuates
• CHotels have unlimited capacity to add rooms on demand
• DHotel inventory is perishable and supply is fixed in the short term

How is occupancy percentage calculated?

• ARooms available divided by rooms sold
• BRooms sold divided by rooms available, multiplied by 100
• CTotal room revenue divided by rooms available
• DRooms sold multiplied by average daily rate

A 200-room hotel sells 160 rooms on a given night. What is its occupancy percentage?

• A60%
• B75%
• C80%
• D85%

How is average daily rate (ADR) calculated?

• ATotal room revenue divided by rooms sold
• BTotal room revenue divided by rooms available
• CRooms sold divided by rooms available
• DTotal revenue including F&B divided by rooms sold

What does RevPAR measure?

• ARevenue per occupied room only
• BRevenue per available room, combining rate and occupancy performance
• CRevenue per guest including incidentals
• DRevenue per available square foot of function space

RevPAR can be calculated two ways. Which pair is correct?

• ARoom revenue / rooms sold, OR ADR x rooms sold
• BRoom revenue / rooms available, OR ADR x occupancy %
• CRoom revenue / guests, OR ADR x occupancy %
• DTotal revenue / rooms available, OR ADR x occupancy %

A hotel has ADR of $150 and 80% occupancy. What is its RevPAR?

• A$100
• B$187.50
• C$150
• D$120

What does RevPAG (revenue per available guest) help a revenue manager capture that RevPAR does not?

• AOnly the room rate paid
• BThe cost of acquiring each guest
• CTotal guest spend across departments relative to capacity, including F&B and other outlets
• DThe square footage occupied by each guest

What does GOPPAR measure?

• AGross operating profit per available room
• BGross occupancy percentage per available room
• CGroup output performance per allocated rate
• DGross optional profit per arriving reservation

In competitive benchmarking, what does a RevPAR index (RGI) of 105 indicate?

• AThe hotel captured 5% less RevPAR than its fair share of the competitive set
• BThe hotel captured 5% more RevPAR than its fair share of the competitive set
• CThe hotel's occupancy was exactly 105%
• DThe hotel's ADR was $105

A STR competitive set is best described as which of the following?

• AAll hotels within a single brand worldwide
• BA group of comparable hotels selected to benchmark a property's performance
• COnly hotels owned by the same management company
• DThe list of OTAs a hotel distributes through

Market segmentation in revenue management primarily groups guests by which characteristic?

• AShared booking behavior, willingness to pay, and need patterns
• BTheir room number on property
• CThe floor they prefer to stay on
• DTheir loyalty-tier color

Which of the following are the three broad market segments hotels most commonly use?

• AWalk-in, telephone, and email
• BTransient, group, and contract
• CRefundable, non-refundable, and prepaid
• DDomestic, international, and regional

Within transient demand, how do business and leisure travelers typically differ in price sensitivity?

• ABusiness travelers are usually more price sensitive than leisure travelers
• BBoth are equally price sensitive at all times
• CLeisure travelers are usually more price sensitive than business travelers
• DNeither responds to price changes

What is the main purpose of demand forecasting in revenue management?

• ATo set the housekeeping schedule only
• BTo determine the hotel's property tax
• CTo calculate last year's actual occupancy
• DTo predict future demand by date so pricing and inventory decisions can be optimized

What is 'unconstrained demand' in forecasting?

• AThe number of rooms actually sold
• BTotal demand that would exist if there were no capacity limits or rate restrictions
• CDemand only from walk-in guests
• DDemand after subtracting cancellations

A 'booking pace' or pickup report primarily helps a revenue manager understand what?

• AHow quickly reservations are accumulating for a future date versus prior periods
• BThe current housekeeping room-cleaning speed
• CHow fast guests check out in the morning
• DThe speed of the property's Wi-Fi

What is the best available rate (BAR)?

• AThe lowest rate ever offered to any guest
• BThe lowest publicly available unrestricted rate offered for a given date
• CThe corporate negotiated rate
• DThe group block rate

In BAR-by-day-of-week or BAR-by-LOS pricing, what does the rate primarily respond to?

• AThe guest's nationality
• BForecasted demand for each specific date or length of stay
• CThe color of the room decor
• DThe general manager's mood

What is a 'rate fence' in hotel pricing?

• AA physical barrier around the property
• BA set of conditions or restrictions that justify charging different prices to different g…
• CThe maximum rate allowed by law
• DA fixed rate that never changes

Which of the following is an example of a rate fence based on a physical product difference?

• AA 21-day advance purchase requirement
• BA non-refundable booking condition
• CA higher rate for a room with a premium ocean view
• DA Saturday-night-stay requirement

What is a primary risk of using deep discounting to drive occupancy on high-demand dates?

• AIt increases ADR too quickly
• BIt always violates franchise agreements
• CIt can displace higher-rated demand and erode RevPAR
• DIt eliminates the need for forecasting

Length-of-stay (LOS) pricing and restrictions are most useful for what purpose?

• AEncouraging single-night bookings on peak dates
• BProtecting high-demand peak nights while filling shoulder nights around them
• CEliminating all multi-night stays
• DSetting the breakfast price

What does a 'closed to arrival' (CTA) restriction do?

• ACloses the entire hotel for the night
• BPrevents new reservations from arriving on a specified date while allowing existing stays…
• CCloses all distribution channels permanently
• DBlocks all departures on a date

What is the main difference between an 'overlay' and a 'continuous' rate restriction strategy?

• AThere is no difference
• BOverlays apply restrictions only on specific high-demand dates, while continuous controls…
• COverlays are used only for group business
• DContinuous controls apply only to weekends

In yield management, what does 'opening' and 'closing' rate categories refer to?

• AMaking lower rate categories available or unavailable based on forecasted demand
• BUnlocking and locking guest room doors
• COpening and closing the front desk
• DStarting and ending the fiscal year

What is the purpose of 'nesting' rate availability across booking limits?

• ATo ensure a higher-priced rate is always available whenever any lower-priced rate is avai…
• BTo keep all rates closed simultaneously
• CTo hide all rates from OTAs
• DTo guarantee the lowest rate is always open

What is 'overbooking' in hotel revenue management?

• AAccepting more reservations than there are available rooms to offset expected cancellatio…
• BBooking a guest into two rooms
• CCharging a guest twice
• DSelling meeting space as guest rooms

When setting an overbooking level, what cost must be weighed against the cost of unsold rooms?

• AThe cost of marketing campaigns
• BThe cost of new furniture
• CThe cost of 'walking' guests when the hotel is oversold (relocation, transport, goodwill,…
• DThe cost of property taxes

What is a no-show in hotel operations?

• AA guest who checks out early
• BA guest with a reservation who never arrives and does not cancel
• CA walk-in guest
• DA guest who upgrades their room

What is displacement analysis used to evaluate?

• AWhether to accept group business by comparing the group's value to the transient revenue…
• BHow far guests travel to reach the hotel
• CWhich furniture to replace
• DHow to displace water during pool maintenance

When evaluating a group, why should a revenue manager consider total revenue, not just room revenue?

• ABecause room revenue is irrelevant
• BBecause owners only care about F&B
• CBecause total revenue is easier to calculate
• DBecause groups often generate meeting space, food and beverage, and ancillary spend that…

What is a group 'wash' factor?

• AThe cleaning cost for group rooms
• BThe laundry contract rate
• CThe expected percentage of a group's blocked rooms that will not actually be picked up
• DThe water used by a group event

A group attrition clause in a contract primarily protects the hotel against what?

• AGuests damaging the rooms
• BRevenue loss when a group picks up fewer rooms than contracted
• CThe group arriving early
• DCurrency fluctuations

What is the difference between a distribution channel and a market segment?

• AA channel is HOW a booking reaches the hotel; a segment is WHO the guest is and their boo…
• BThey are identical concepts
• CA channel is the guest, a segment is the website
• DBoth refer only to OTAs

What does GDS stand for in hotel distribution?

• AGuest Data Service
• BGeographic Demand Survey
• CGroup Discount Schedule
• DGlobal Distribution System

Why is the hotel's own website (brand.com) generally the most desirable booking channel?

• AIt guarantees the highest room rate
• BIt typically has the lowest distribution cost and builds a direct guest relationship
• CIt is the only channel guests trust
• DIt does not require rate parity

What is 'cost of distribution' (or cost per acquisition) for a channel?

• AThe room's housekeeping cost
• BThe total cost (commissions, fees, transaction costs) to acquire a booking through a give…
• CThe cost of the property mortgage
• DThe price the guest pays for breakfast

What is rate parity?

• ACharging every guest the same rate regardless of segment
• BMatching the competitor's rate exactly
• CMaintaining consistent publicly displayed rates for the same room and dates across distri…
• DKeeping rates the same all year

What is the 'billboard effect' associated with OTAs?

• AA physical billboard the OTA buys for the hotel
• BIncreased direct bookings a hotel may receive because guests discovered it on an OTA
• CA penalty for closing OTA channels
• DAn OTA's internal advertising fee

In the two main OTA business models, how does the 'merchant' (prepaid) model differ from the 'agency' (commission) model?

• AThey are the same
• BIn the merchant model the hotel pays no cost
• CIn the merchant model the OTA collects payment from the guest and remits net rate to the…
• DIn the agency model the guest is never charged

What is a channel manager (in the technology sense)?

• AA front-desk employee who greets guests
• BThe director of the call center
• CThe OTA account representative
• DSoftware that distributes rates and availability to multiple channels and updates invento…

What role does a central reservation system (CRS) play in distribution?

• AIt cleans guest rooms
• BIt serves as the hub that stores rates and inventory and connects the hotel to multiple b…
• CIt calculates payroll
• DIt manages the loyalty points only

Why is mobile and metasearch (e.g., Google, Trivago) increasingly important to hotel e-commerce?

• ABecause guests never use mobile devices
• BBecause a large and growing share of travel shopping and booking happens on mobile and th…
• CBecause metasearch sites set the hotel's rates
• DBecause mobile bookings are free of charge

What is the central idea behind a revenue management 'strategy' versus a 'tactic'?

• AThey are interchangeable terms
• BTactics come before strategy
• CStrategy is the longer-term plan and positioning; tactics are the specific day-to-day act…
• DStrategy applies only to F&B

During a period of forecasted low demand, which tactic is generally most appropriate?

• AApply minimum-length-of-stay restrictions and close discount rates
• BOpen lower rate categories and run targeted promotions to stimulate demand
• CIncrease rates sharply to signal exclusivity
• DClose the hotel to all arrivals