HSMAI CRMA Exam

Which of the following characteristics makes the hotel industry suitable for revenue management?

Perishable inventory and constrained supply

Who is considered a pioneer of revenue management and introduced the concept to the airline industry?

Bob Crandall

What key metric combines both occupancy and average daily rate (ADR) to evaluate hotel performance?

RevPAR

Which of the following is NOT a key metric used to measure hotel performance?

Incremental Revenue

Why can differential pricing be applied to hotel guestrooms?

Different market segments place different values on a hotel's features

What type of expense changes in direct proportion to the number of rooms sold?

Incremental Expenses

A hotel had $145 RevPAR this year and $163 last year. What was the year-over-year percent change?

-11%

What term describes the point at which total revenue equals total costs, resulting in zero profit?

Break-even point

I am forecasting occupancy for my 250-room hotel for next week. Based only on the information below, which statement reflects the number of rooms that the revenue manager should forecast? 170 OTB, 165 STLY OTB, 192 LY Actuals

More than 192 rooms should be forecast

What is the primary purpose of price points in hotel pricing strategies?

To match customer willingness to pay based on demand

A hotel has contracted the following group block. It has decided to apply a 15% wash factor, how many total room nights will be forecasted? Monday 123, Tuesday 145, Wednesday 145, Total 413

351

Which of the following describes a situation where a small change in price results in a large change in demand?

Elastic demand

Which pricing method ensures that rooms are sold at different rates based on

customer segmentation?

Differential pricing

What is the period of time during which rooms are expected to book for a future date?

Booking Window

Transient rate efficiency is

The amount of discounting compared to BAR

What is the term for a discount offered to customers who book well in advance?

Advance purchase rate

What is the primary goal of a displacement analysis when considering group bookings?

To calculate potential revenue loss from transient business

Which clause in a group contract outlines the group's responsibility to pay for a minimum percentage of the contracted room block?

Attrition clause

Which of the following is a key factor used in forecasting hotel demand?

Historical performance data

What is the main difference between constrained and unconstrained demand?

Constrained demand accounts for pricing strategies and inventory limitations

What is the primary goal of minimizing forecast errors in hotel revenue management?

To ensure pricing strategy aligns with expected demand

What term describes the number of additional reservations expected to book for a specific future date?

Pick-up

What inventory control method involves selling more rooms than the hotel's capacity to account for cancellations and no-shows?

Overbooking

What control is used to prevent guests from booking certain low rates during periods of high demand?

Hurdle Rate

What is the role of a Channel Management System (CMS) in hotel revenue management?

Connecting hotel inventory to external distribution platforms

Which of the following is an example of an indirect distribution channel for hotels?

Global Distribution System (GDS)

Which report is generated nightly to provide key statistics like occupancy, ADR, and no-shows?

Flash Report

What key metric represents the percentage of available rooms sold during a given time period?

Occupancy Percentage

What is a core responsibility of a revenue manager in a hotel?

Maximizing revenue through pricing and inventory control

Which of the following skills is most critical for a successful revenue manager?

Strong analytical and data interpretation skills

Step Costs

Increase on a based on a fixed increase of usage or activity

Concessions

Extra benefits for group blocks (free rooms, parking)