Well, this can be looked at in a few ways - if say, a company buys a block of hotel rooms and the hotel provides a better room in the batch, suite or whatever, which happens often, the person responsible for distributing the rooms would give the best room to the top man/woman, although the rooms might have technically been allocated by the hotel to a different member of staff. Nothing really wrong with that. It is a batch purchase and the company pays for everything so it has the discretion to distribute. If staff at eg a school were to go to a conference, I can imagine that the Principal or Head gets distributed the best seat/room.
This is very different from, eg, where the staff all fork out themselves in which case it will be totally wrong for staff to be told, or even expected, to give his better room/seat to superior.
In any case, it is good manners to offer a better room or whatever to someone up the chain, to show respect. Likewise and especially so, as it is a lady boss, it is nice to give her a better room/seat.
On the other hand, if I were the boss, I will make it clear that it is not expected or necessary but might accept, depending on circumstances, but always graciously.
I won't see it as bullying or short-changing the junior member, but rather, it is a "your time will come" situation. You work your way up.