CHIA certification exam

CHIA certification exam 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 - CORRECT ANSWER-Choice Which is a true statement about Parent Companies? a. Parent Companies and the related chains have changed over time 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 - CORRECT 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 - CORRECT ANSWER-D 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 - CORRECT ANSWER-A Which is a true statement about Management Companies? a. Management companies have contracts where they receive payment for their services and/or some portion of profits b. Management companies may manage only one chain c. Management companies will always own the hotels they manage d. Management companies serve the exact same role as asset management companies - CORRECT ANSWER-A ) Which is a true statement regarding geographic categorization? a. STR geographic categories are limited to North America b. STR uses the UNWTO definitions when it comes to recognizing countries c. General managers of hotels do not need to know geographic categories d. The hotel industry uses seven continents to categorize hotels - CORRECT ANSWER-B Which is a true statement regarding markets? a. Markets include hotels that are in big cities, not rural areas b. A country would never have more than 100 markets and never have less than 2 markets c. No market will ever cross country boundaries d. There is another name for Markets outside the U.S. - CORRECT ANSWER-C In descending order of geographic size, which option below is correct? a. Continent, Sub-Continent, Country, Tract/Sub-Market, Market b. Continent, Country, Sub-Continent, Tract/Sub-Market, Market c. Continent, Sub-Continent, Market, Country, Tract/Sub-Market d. Continent, Sub-Continent, Country, Market, Tract/Sub-Market - CORRECT ANSWER-D Which two geographic categories are the most important for a hotel GM? a. Region and Market b. Market and Tract/Sub-Market c. Region and Tract/Sub-Market d. Country and Tract/Sub-Market - CORRECT ANSWER-B Markets and tracts are created based on what two determining factors? a. Geographic size and population b. Geographic size and participation c. Number of hotels and participation d. Number of hotels and population - CORRECT ANSWER-C Which is a true statement regarding Tracts a. Tracts are referred to as Sub-Markets outside of North America b. Tracts are never used to represent a city in rural markets c. Tracts are geographic sub-divisions of a Region d. A country will never have more than 100 Tracts - CORRECT ANSWER-A Changes to how Markets and Tracts are geographically defined are made how often? a. Monthly b. Annually c. Every five years d. No regular schedule - CORRECT ANSWER-B Which two non-geographic categories are the most important for a hotel GM? a. Scale and Class b. Scale and Location c. Location and Type d. Class and Type - CORRECT ANSWER-A How many Scale categories are there compared to Class categories? a. 6 Scale categories and 6 Class categories b. 6 Scale categories and 7 Class categories c. 7 Scale categories and 6 Class categories d. 7 Scale categories and 7 Class categories - CORRECT ANSWER-C Which one of the following is an accurate statement regarding Scale and Class groups and a single chain? a. A Ritz Carlton hotel in the US can be in one Scale group and a Ritz Carlton hotel in Japan can be in a different Scale group b. A Ritz Carlson hotel in the US can be in one Class group and a Ritz Carlton hotel in Japan can be in a different Class group c. A Ritz Carlton hotel will always be in the same Scale and Class groups in every country throughout the world d. Ritz Carlton may choose - CORRECT ANSWER-C Which one of the following is an accurate statement regarding Class groups? a. The names of the Class group are very different than the names of the Scale groups b. Class groups are more popular and relevant in North America rather than outside North America a. Independent hotels are slotted into Class groups based upon the ADR of the independent hotel compared to the chain hotels in the same market c. Once an independent hotel is slotted into a Class group, it will never change - CORRECT ANSWER-C Which one of the following is NOT a Location Category used by the hotel industry? a. Airport b. Suburban a. Oceanfront c. Urban - CORRECT ANSWER-C Which is NOT a valid non-geographic category? a. Extended Stay b. Boutique c. Guest Satisfaction Rating d. Destination Resort - CORRECT 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 - CORRECT ANSWER-D Comp sets are used for many purposes in hotel operations, which of the following is one of these purposes? 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 - CORRECT 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 - CORRECT 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 - CORRECT 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 d. A competitive set may be created three months before a hotel opens - CORRECT 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 - CORRECT 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 - CORRECT 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 - CORRECT ANSWER-D What is a Reverse Comp Set? a. Properties that have seen a significant decline in occupancy b. Properties that have recently changed affiliations c. Properties that you previously have included in your comp set d. Properties that name your hotel in their competitive set - CORRECT ANSWER-D When can a competitive set be changed? a. Only if your hotel has changed affiliations b. At any time, although many wait until the beginning of the year c. Only at the beginning of the year d. Only when a hotel has a new general manager - CORRECT ANSWER-B ) Which is NOT a valid rule related to changing a competitive set? a. If adding two hotels to a competitive set, both must be in different chains b. A single hotel may be added to a competitive set if it has been open less than six months c. A single hotel may be added to a competitive set at any time d. Any change must involve two or more hotels, e.g. add one/drop one, add two, drop two, etc. - CORRECT ANSWER-C The definitions for Supply, Demand and Revenue used by STR and others in the lodging industry are taken from what source? a. Lodging Industry Accounting Fundamentals Guide b. Uniform System of Accounts for the Lodging Industry c. Hotel Book Keeping for Dummies d. Modern Hotel Industry Accounting - CORRECT ANSWER-B Which statement is true regarding raw data that is submitted to STR? a. A small amount comes in the form of raw data files b. Most data is entered online c. There are limited error check programs d. The majority of data is exported from the hotel company systems - CORRECT ANSWER-D Which is true regarding the type of performance data (Supply, Demand, Revenue) that STR receives? a. Daily only b. Daily and monthly only c. Daily, weekly, and monthly d. Daily, weekly, monthly and quarterly - CORRECT ANSWER-B You receive your monthly STAR and find that it includes weekday and weekend performance, what days are included in "weekday"? a. Sunday thru Thursday b. Friday and Saturday c. Sunday thru Saturday d. Monday through Friday - CORRECT ANSWER-A ) In which of the following situations will occupancy increase? a. Supply increases 10% and demand increases 5% b. Supply decreases 5% and demand increases 10% c. Supply increases 5% and demand decreases 5% d. None of these situations will result in an occupancy increase - CORRECT ANSWERB Which statement is true regarding RevPAR? a. It is almost always higher than ADR b. It can be thought of as a combination of Supply and Demand c. When a hotel or GM is evaluated, the RevPAR metric is rarely considered d. It can be thought of as a combination of Occupancy and ADR - CORRECT ANSWER-D Which one of the following statements is accurate regarding "Sufficiency" as it related to competitive set data? a. If a competitive set is not sufficient for three consecutive months, you will no longer receive a STAR Report b. If a competitive set number for just a single month is not sufficient, it will still be displayed on the STAR Report c. Percent Change number for a single month will appear on the STAR report if either the "This Year" or "Last Year" data is sufficient d. The sufficiency - CORRECT ANSWER-D Key Performance Indicators (KPI) for the Competitive Set (for example the average Occupancy) are: a. Always based upon the aggregated raw data of each member of the competitive set b. Always based upon a straight average of the metrics, for example the Occupancies, of each member of the competitive set c. The comp set methodology differs inside and outside of North America d. The comp set methodology differs by hotel company - CORRECT ANSWER-A When you receive your STAR report, your ADR for the month was $100 and the competitive set ADR was $90. What can you tell? a. You had the highest ADR of all of the members of the competitive set b. Your ADR was $10 higher than the average of all of the members of the competitive set c. There was one hotel that had a higher ADR than you d. Your RevPAR will be higher than the RevPAR of the competitive set - CORRECT ANSWER-B What happens when there is a non-reporting hotel in a competitive set? a. Modeled data is used for the non-reporting hotel b. Market data is used for the non-reporting hotel c. Prior year data for the non-reporting hotel is used d. The comp set average is calculated based upon the reporting hotels - CORRECT ANSWER-D The competitive set RevPAR (G6) for July is _____. a. $119.89 b. $143.42 c. $165.12 d. $155.16 - CORRECT ANSWER-A When you receive your STAR report your ADR index was 110 and your Occupancy index was 90. What do you know? a. The RevPAR index will be in the neighborhood of 115 b. The RevPAR index will be in the neighborhood of 100 c. The RevPAR index will be in the neighborhood of 105 d. The RevPAR index will be in the neighborhood of 85 - CORRECT ANSWER-B