Practice Test GeeksCHIA - Certified in Hotel Industry Analytics Practice Test
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Competitive Intelligence & Benchmarking Flashcards

7 cards from real CHIA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Competitive Intelligence & Benchmarking flashcards as text

  1. A hotel's competitive set ADR is $150 and the hotel's own ADR is $165. What is the hotel's ARI?

    Answer: 110

    ARI = (Hotel ADR ÷ Competitive Set ADR) × 100 = ($165 ÷ $150) × 100 = 110, indicating the hotel charges 10% more than its comp set average.

  2. Why might a hotel manager dispute the composition of their STR competitive set?

    Answer: To ensure the set accurately reflects properties competing for the same guests

    The comp set should represent actual market competitors; managers may challenge the set to remove non-competing properties or add true rivals that distort benchmark accuracy.

  3. In STR benchmarking, what does a 'pipeline' report track?

    Answer: Future room supply entering the market through new construction and conversions

    STR's pipeline report tracks hotels under construction, final planning, or in planning stages, helping analysts anticipate future supply changes in a market.

  4. A market's RevPAR Index (comparing market RevPAR to a national baseline) is 115. What does this tell a hotel investor?

    Answer: The market outperforms national averages by 15% on RevPAR

    A market index of 115 versus a national baseline means that market generates 15% more RevPAR than the national average, indicating stronger revenue performance.

  5. Which factor would most likely cause a hotel's MPI to increase without any change in its own occupancy?

    Answer: A competitor in the comp set closes for renovation, reducing comp set supply

    If a competitor removes rooms from the comp set (e.g., for renovation), the comp set's total available rooms decrease, raising the average occupancy metric, but the subject hotel's MPI changes because its fair share and relative index recalculate.

  6. What is the primary limitation of using only RevPAR as a benchmarking metric?

    Answer: RevPAR ignores ancillary revenues such as F&B, spa, and parking

    RevPAR captures only room revenue performance and omits non-room revenue streams like food & beverage, spa, and parking, providing an incomplete picture of total hotel profitability.

  7. When interpreting year-over-year index changes, a hotel's RGI improves from 98 to 103. The most accurate conclusion is:

    Answer: The hotel moved from underperforming to outperforming its competitive set

    An RGI shift from 98 to 103 means the hotel moved from below fair share to above fair share in RevPAR generation relative to its competitive set, regardless of absolute dollar changes.