NEW CHIA CERTIFICATION PRACTICE
EXAM QUESTIONS AND ANSWERS
LATEST UPDATE
Which one of the following is NOT a Location Category used by the hotel industry? a.
Airport
b. Suburban
a. Oceanfront
c. Urban -- ANSWER--C
Which is NOT a valid non-geographic category?
a. Extended Stay
b. Boutique
c. Guest Satisfaction Rating
d. Destination Resort -- ANSWER--C
Benchmarking in the hotel industry takes place at what level?
a. Property level for an individual hotel versus their Competitive Set
b. Corporate level for a hotel company, for example one brand versus others
c. Geographic level for tourism organizations, for example city versus comparable cities
d. All of the above levels -- ANSWER--D
Comp sets are used for many purposes in hotel operations, which of the following is one of
these purposes?
Page 1 of 81
,a. Comp sets can be used to aid the sales and marketing departments in determining the
effectiveness of various pricing decisions
b. Comp sets can be used in management contracts for performance requirements
c. Comp sets can have an effect on a general managers compensation
d. All of the above are examples of how comp sets are used -- ANSWER--D
The four key considerations when creating a Competitive Set are?
a. Participation, Proximity, Policy and Product
b. Participation, Proximity, Pricing and Product
c. Participation, Parking, Policy and Pricing
d. Participation, Perimeter, Pool and Pricing -- ANSWER--B
All of the following are good reason for a hotel to have an additional competitive set, except
which one?
a. Have a local competitive set based upon geography and another based upon a special
feature or niche, for example: waterpark, boutique, or conference
b. Have different sets for weekday/weekend or group/transient business
c. Have one set that you can easily beat and another which is a realistic target
d. Different entities may not agree, for example, chain versus management company --
ANSWER--C
When can a competitive set be created?
a. A competitive set may be created once the hotel has opened
b. A competitive set may be created while the hotel is under construction
c. A competitive set may be created on the one year anniversary of a hotel's opening
Page 2 of 81
,d. A competitive set may be created three months before a hotel opens -- ANSWER--B
Who creates a competitive set for a chain hotel?
a. Only the General Manager
b. Only the Revenue Manager
c. Only the Sales and Marketing Managers
d. It is a joint effort involving many stakeholders -- ANSWER--D
What is the average number of hotels in a competitive set?
a. Between 3 and 4
b. Between 4 and 5
c. Between 5 and 6
d. Between 6 and 7 -- ANSWER--C
Which is a valid rule related to creating a competitive set?
a. Comp sets must include five or more hotels
b. No single property or chain can account for more than 50% of the total participating
room supply of a comp set
c. No single company can account for more than 75% of the total participating room
supply of a comp set
d. When percentages are calculated, the rooms of the subject hotel, as well as the same
chain and parent company, are excluded -- ANSWER--D
Which is a true statement about Parent Companies?
a. Parent Companies and the related chains have changed over time
Page 3 of 81
, b. Parent Companies must consist of no more than five chains
c. Parent Companies can only consist of chains in a single Scale
d. Parent Companies can only have hotels in a single country -- ANSWER--A
What are the three different operation types?
a. Corporate, Managed, Independent
b. Managed, Franchise, Independent
c. Managed, Clustered, Independent
d. Corporate, Franchise, Independent -- ANSWER--D
Most of the entities below are classified as "Chains". Which one is a "Parent Company"
consisting of multiple chains?
a. Hampton Inn
b. Motel 6
c. Choice
d. Holiday Inn Express -- ANSWER--Choice
Which is a true statement about independent hotels?
a. Independent hotels are not affiliated with a specific chain
b. Chain hotels outnumber independent hotels in every country of the world
c. Independent hotels are mostly Luxury Class hotels in Urban Locations with more than
150 rooms
d. Independent hotels may never be managed by an outside entity -- ANSWER--A
Which is a true statement about Management Companies?
Page 4 of 81
EXAM QUESTIONS AND ANSWERS
LATEST UPDATE
Which one of the following is NOT a Location Category used by the hotel industry? a.
Airport
b. Suburban
a. Oceanfront
c. Urban -- ANSWER--C
Which is NOT a valid non-geographic category?
a. Extended Stay
b. Boutique
c. Guest Satisfaction Rating
d. Destination Resort -- ANSWER--C
Benchmarking in the hotel industry takes place at what level?
a. Property level for an individual hotel versus their Competitive Set
b. Corporate level for a hotel company, for example one brand versus others
c. Geographic level for tourism organizations, for example city versus comparable cities
d. All of the above levels -- ANSWER--D
Comp sets are used for many purposes in hotel operations, which of the following is one of
these purposes?
Page 1 of 81
,a. Comp sets can be used to aid the sales and marketing departments in determining the
effectiveness of various pricing decisions
b. Comp sets can be used in management contracts for performance requirements
c. Comp sets can have an effect on a general managers compensation
d. All of the above are examples of how comp sets are used -- ANSWER--D
The four key considerations when creating a Competitive Set are?
a. Participation, Proximity, Policy and Product
b. Participation, Proximity, Pricing and Product
c. Participation, Parking, Policy and Pricing
d. Participation, Perimeter, Pool and Pricing -- ANSWER--B
All of the following are good reason for a hotel to have an additional competitive set, except
which one?
a. Have a local competitive set based upon geography and another based upon a special
feature or niche, for example: waterpark, boutique, or conference
b. Have different sets for weekday/weekend or group/transient business
c. Have one set that you can easily beat and another which is a realistic target
d. Different entities may not agree, for example, chain versus management company --
ANSWER--C
When can a competitive set be created?
a. A competitive set may be created once the hotel has opened
b. A competitive set may be created while the hotel is under construction
c. A competitive set may be created on the one year anniversary of a hotel's opening
Page 2 of 81
,d. A competitive set may be created three months before a hotel opens -- ANSWER--B
Who creates a competitive set for a chain hotel?
a. Only the General Manager
b. Only the Revenue Manager
c. Only the Sales and Marketing Managers
d. It is a joint effort involving many stakeholders -- ANSWER--D
What is the average number of hotels in a competitive set?
a. Between 3 and 4
b. Between 4 and 5
c. Between 5 and 6
d. Between 6 and 7 -- ANSWER--C
Which is a valid rule related to creating a competitive set?
a. Comp sets must include five or more hotels
b. No single property or chain can account for more than 50% of the total participating
room supply of a comp set
c. No single company can account for more than 75% of the total participating room
supply of a comp set
d. When percentages are calculated, the rooms of the subject hotel, as well as the same
chain and parent company, are excluded -- ANSWER--D
Which is a true statement about Parent Companies?
a. Parent Companies and the related chains have changed over time
Page 3 of 81
, b. Parent Companies must consist of no more than five chains
c. Parent Companies can only consist of chains in a single Scale
d. Parent Companies can only have hotels in a single country -- ANSWER--A
What are the three different operation types?
a. Corporate, Managed, Independent
b. Managed, Franchise, Independent
c. Managed, Clustered, Independent
d. Corporate, Franchise, Independent -- ANSWER--D
Most of the entities below are classified as "Chains". Which one is a "Parent Company"
consisting of multiple chains?
a. Hampton Inn
b. Motel 6
c. Choice
d. Holiday Inn Express -- ANSWER--Choice
Which is a true statement about independent hotels?
a. Independent hotels are not affiliated with a specific chain
b. Chain hotels outnumber independent hotels in every country of the world
c. Independent hotels are mostly Luxury Class hotels in Urban Locations with more than
150 rooms
d. Independent hotels may never be managed by an outside entity -- ANSWER--A
Which is a true statement about Management Companies?
Page 4 of 81
