CHIA Certification Exam Questions with 100% Correct Answers

CHIA Certification Exam Questions with 100% Correct Answers 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 ...

CHIA Certification Exam Questions with 100% Correct Answers 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 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 -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 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? 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 -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 categoriesd. The hotel industry uses seven continents to categorize hotels -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. -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 -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 -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 -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 -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 -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 -Answer- AHow 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 -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 which Scale and which Class they are in -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 -AnswerC 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 othersc. 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? 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 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 6d. 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 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 -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 -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. -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 -Answer- B Which statement is true regarding raw data that is