CHIA certification exam questions with correct answers

CHIA certification exam questions with correct answers .11) Which is a true statement regarding Tracts Tracts are referred to as Sub-Markets outside of North America Tracts are never used to represent a small city in a rural market Tracts are geographic sub-divisions of a Region A country will never have more than 100 Tracts -/ ANSWER-Tracts are referred to as Sub-Markets outside of North America .12) Changes to how Markets and Tracts are geographically defined are made how often? Monthly Annually Every five years No regular schedule -/ ANSWER-No regular schedule .13) Which two non-geographic categories are the most important for a hotel GM? Scale and Class Scale and Location Location and Type Class and Type -/ ANSWER-Scale and Class .14) How many Scale categories are there compared to Class categories? 6 Scale categories and 6 Class categories 6 Scale categories and 7 Class categories 7 Scale categories and 6 Class categories 7 Scale categories and 7 Class categories -/ ANSWER-7 Scale categories and 6 Class categories .15) Which one of the following is an accurate statement regarding Scale and Class groups and a single chain? 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 A Ritz Carlton hotel in the US can be in one Class group and a Ritz Carlton hotel in Japan can be in a different Class group A Ritz Carlton hotel will always be in the same Scale and Class groups in every country throughout the world Ritz Carlton may choose which Scale and which Class they are in -/ ANSWER-A Ritz Carlton hotel will always be in the same Scale and Class groups in every country throughout the world .15) Which one of the following is an accurate statement regarding Scale and Class groups and a single chain? 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 A Ritz Carlton hotel in the US can be in one Class group and a Ritz Carlton hotel in Japan can be in a different Class group A Ritz Carlton hotel will always be in the same Scale and Class groups in every country throughout the world Ritz Carlton may choose which Scale and which Class they are in -/ ANSWER-A Ritz Carlton hotel will always be in the same Scale and Class groups in every country throughout the world .16) Which one of the following is an accurate statement regarding Class groups? The names of the Class group are very different than the names of the Scale groups Class groups are more popular and relevant in North America rather than outside North America Independent hotels are slotted into Class groups based upon the ADR of the independent hotel compared to the chain hotels in the same market Once an independent hotel is slotted into a Class group, it will never change -/ ANSWER-Independent hotels are slotted into Class groups based upon the ADR of the independent hotel compared to the chain hotels in the same market .17) Which one of the following is NOT a Location Category used by the hotel industry? Airport Suburban Oceanfront Urban -/ ANSWER-Oceanfront .18) Which is NOT a valid non-geographic category? Extended Stay Boutique Guest Satisfaction Rating Destination Resort -/ ANSWER-Guest Satisfaction Rating .20) Comp sets are used for many purposes in hotel operations, which of the following is one of these purposes? Comp sets can be used to aid the sales and marketing departments in determining the effectiveness of various pricing decisions Comp sets can be used in management contracts for performance requirements Comp sets can have an effect on a general managers compensation All of the above are examples of how comp sets are used -/ ANSWER-All of the above are examples of how comp sets are used .22) All of the following are good reason for a hotel to have an additional competitive set, except which one? Have a local competitive set based upon geography and another based upon a special feature or niche, for example: waterpark, boutique, or conference Have different sets for weekday/weekend or group/transient business Have one set that you can easily beat and another which is a realistic target Different entities may not agree, for example, chain versus management company -/ ANSWER-Have one set that you can easily beat and another which is a realistic target .23) When can a competitive set be created? A competitive set may be created once the hotel has opened A competitive set may be created while the hotel is under construction A competitive set may be created on the one year anniversary of a hotel's opening A competitive set may be created three months before a hotel opens -/ ANSWER-A competitive set may be created while the hotel is under construction .24) Who creates a competitive set for a chain hotel? Only the General Manager Only the Revenue Manager Only the Sales and Marketing Managers It is a joint effort involving many stakeholders -/ ANSWER-It is a joint effort involving many stakeholders .25) What is the average number of hotels in a competitive set? Between 3 and 4 Between 4 and 5 Between 5 and 6 Between 6 and 7 -/ ANSWER-Between 5 and 6 .26) Which is a valid rule related to creating a competitive set? Comp sets must include five or more hotels No single property or chain can account for more than 25% of the total participating room supply of a comp set No single company can account for more than 75% of the total participating room supply of a comp set When percentages are calculated, the rooms of the subject hotel, as well as the same chain and parent company, are excluded -/ ANSWER-When percentages are calculated, the rooms of the subject hotel, as well as the same chain and parent company, are excluded .27) What is a Reverse Comp Set? Properties that have seen a significant decline in occupancy Properties that have recently changed affiliations Properties that you previously have included in your comp set Properties that name your hotel in their competitive set -/ ANSWER-Properties that name your hotel in their competitive set .28) When can a competitive set be changed? Only if your hotel has changed affiliations At any time, although many wait until the beginning of the year Only at the beginning of the year Only when a hotel has a new general manager -/ ANSWER-At any time, although many wait until the beginning of the year .29) Which is NOT a valid rule related to changing a competitive set? If adding two hotels to a competitive set, both must be in different chains A single hotel may be added to a competitive set if it has been open less than six months A single hotel may be added to a competitive set at any time Any change must involve two or more hotels, e.g. add one/drop one, add two, drop two, etc. -/ ANSWER-A single hotel may be added to a competitive set at any time .30) The definitions for Supply, Demand and Revenue used by STR and others in the lodging industry are taken from what source? Lodging Industry Accounting Fundamentals Guide Uniform System of Accounts for the Lodging Industry Hotel Book Keeping for Dummies Modern Hotel Industry Accounting -/ ANSWER-Uniform System of Accounts for the Lodging Industry