HSMAI CRMA Exam QUESTIONS &
SOLUTIONS(RATED A+)
Which of the following characteristics makes the hotel industry suitable for revenue
management? - ANSWERPerishable inventory and constrained supply
Who is considered a pioneer of revenue management and introduced the concept to the
airline industry? - ANSWERBob Crandall
What key metric combines both occupancy and average daily rate (ADR) to evaluate
hotel performance? - ANSWERRevPAR
Which of the following is NOT a key metric used to measure hotel performance? -
ANSWERIncremental Revenue
Why can differential pricing be applied to hotel guestrooms? - ANSWERDifferent market
segments place different values on a hotel's features
What type of expense changes in direct proportion to the number of rooms sold? -
ANSWERIncremental Expenses
A hotel had $145 RevPAR this year and $163 last year. What was the year-over-year
percent change? - ANSWER-11%
What term describes the point at which total revenue equals total costs, resulting in zero
profit? - ANSWERBreak-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 - ANSWERMore
than 192 rooms should be forecast
What is the main difference between constrained and unconstrained demand? -
ANSWERConstrained demand accounts for pricing strategies and inventory limitations
What is the primary goal of minimizing forecast errors in hotel revenue management? -
ANSWERTo ensure pricing strategy aligns with expected demand
What term describes the number of additional reservations expected to book for a
specific future date? - ANSWERPick-up
What inventory control method involves selling more rooms than the hotel's capacity to
account for cancellations and no-shows? - ANSWEROverbooking
SOLUTIONS(RATED A+)
Which of the following characteristics makes the hotel industry suitable for revenue
management? - ANSWERPerishable inventory and constrained supply
Who is considered a pioneer of revenue management and introduced the concept to the
airline industry? - ANSWERBob Crandall
What key metric combines both occupancy and average daily rate (ADR) to evaluate
hotel performance? - ANSWERRevPAR
Which of the following is NOT a key metric used to measure hotel performance? -
ANSWERIncremental Revenue
Why can differential pricing be applied to hotel guestrooms? - ANSWERDifferent market
segments place different values on a hotel's features
What type of expense changes in direct proportion to the number of rooms sold? -
ANSWERIncremental Expenses
A hotel had $145 RevPAR this year and $163 last year. What was the year-over-year
percent change? - ANSWER-11%
What term describes the point at which total revenue equals total costs, resulting in zero
profit? - ANSWERBreak-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 - ANSWERMore
than 192 rooms should be forecast
What is the main difference between constrained and unconstrained demand? -
ANSWERConstrained demand accounts for pricing strategies and inventory limitations
What is the primary goal of minimizing forecast errors in hotel revenue management? -
ANSWERTo ensure pricing strategy aligns with expected demand
What term describes the number of additional reservations expected to book for a
specific future date? - ANSWERPick-up
What inventory control method involves selling more rooms than the hotel's capacity to
account for cancellations and no-shows? - ANSWEROverbooking
