HTM 222 midterm
Which of the following revenue-management axioms is true?
.b) As demand increases, lower-rate categories are closed and higher-rate categories (aka tiers) are quoted.
The High-Top Hotel, located in suburban Pittsburgh, accepted more reservations than it had actual rooms available knowing there would be at least a few cancellations and no-shows. This hotel implemented which special restriction tactic?
capacity management
Which of the following terms refers to an organization or event that drives customers into a marketplace or an activity or entity that produces great consumer interest to purchase?
demand generator
The popular Le Meridien Hotel in Seattle has a philosophy of selling as many high-priced rooms as possible to satisfy the projected demand for rooms and then renting the remaining unsold rooms for as little as half the regular price if necessary, because it would rather get half price rather than nothing. This tactic is known as _______________.
discount allocation
the practice of offering discounted rates for specific room types during specific periods is called _________
discount allocation
During busy seasons, a hotel can reject a reservation request for a one-night stay, even if rooms are available, in favor of a multi-night reservation. This restriction is referred to as _______________.
duration control
The revenue manager typically reports to the ____________
general manager
True or False: The amount and type of capital expenditures approved on the capital expenditure budget can serve as major indicators regarding a company's long-term goals.
true
Revenue managers use potential revenue -- the maximum revenue that can be attained under perfect conditions -- as the standard against which actual revenues are compared. The term that is synonymous with potential revenue is ___________.
yield
Most business travelers rent rooms during which nights of the week?
Monday to Friday
Which of the following terms refers to the average revenue generated by each guest room available during a specific time period?
Rev par
According to the reading, capital expenditures are defined as items with a minimum cost of ______ and a life-span greater than _______.
a) $1,000 and 1 year* b) $2,000 and 2 years c) $2,000 and 5 years d) $5,000 and 5 years
Hippo Hollow Resort, which has 200 rooms available to sell each night, was very busy New Year's Eve, as it sold 180 rooms and generated a $50.00 RevPAR. What was the room revenue on New Year's Eve?
a) $3,600 b) $4,000 c) $9,000 d) $10,000* SOLUTION: 200 Available Rooms x $50 Average Daily Rate = $10,000 Room Revenue
The 300-room Redwood Resort had a slow night last night, as its occupancy rate was 40 percent and room revenues were only $9,600. What was its ADR last night?
a) $31.25 b) $32.00 c) $80.00* d) $125.00 SOLUTION: 300 Total Rooms x 40% = 120 Rooms Booked$9,600 Total Revenue / 120 Rooms = $80 Average Daily Rate
The exclusive Madonna Hotel, which boasts 450 guest rooms, sold 280 rooms and recorded $36,500 in room revenue last Friday. What was its RevPAR?
a) $76.70 b) $81.11 * c) $123.30 d) $130.36 SOLUTION: $36,500 Total Revenue / 450 Total Rooms = $81.11 Revenue per Available Room (revPAR) OR 280 Rooms Sold / 450 Total Rooms x 100 = 62.2% Occupancy Rate $36,500 Total Revenue / 280 Rooms Sold = $130.36 ADRADR x Occupancy Rate = $130.36 X 62.2% = $81.11 RevPAR
Results of guest inquiries and studies state that a lack of cleanliness is the number ___ reason that a guest will not return to a hotel.
a) 1 * b) 2 c) 3 d) 4
The 162-room BeeGee Hotel, located just outside Philadelphia, Pennsylvania, requires room attendants to clean 18 rooms per day. If the hotel is forecasting a full house next Monday, how many guest room attendants will be needed to cover the day's cleaning tasks?
a) 11 b) 10 c) 9 * d) 8 SOLUTION: 162 rooms / 18 rooms per guest room attendant = 9 guest room attendants
As a general rule, items left behind by the guest are bagged and tagged (secured and logged in with date and time and name, if known), kept safe for __________ days, and then discarded.
a) 30 b) 60 c) 90 *
Energy costs account for as much as ___ percent of all hotel expenses.
a) 5 b) 10 * c) 15 d) 20
The Incredible Inn (with 120 rooms) is located in Hoboken, New Jersey. On September 1, 2017, the hotel sold 60 rooms, collecting revenue of $5,400. What was the Incredible Inn's occupancy rate?
a) 50 percent * b) 60 percent c) 20 percent d) 200 percent SOLUTION: 60 rooms sold / 120 total rooms x 100 = 50% Occupancy
Most hotels require attendants to clean between _________ rooms each day.
a) 8 and 12 b) 8 and 26 c) 18 and 26 d) 12 and 20 *
_______________ are referred to as the front line and considered critical to every hotel's success. Their actions, reactions, or lack of actions can determine the likelihood that a guest will return or refer the hotel to colleagues, family, and friends.
a) All front office staff members * )b) Valet parkers c) Bell staff d) All hotel employees who work at the front desk, housekeeping, and maintenance
According to the ________________________ for creating a legendary customer experience, "the more expediently a problem is resolved, the more quickly it is forgotten. Whether or not a business is responsible for mistakes, the guest is most likely to remember who took the initiative to fix them!"
a) American Hotel and Lodging Association's credo b) American Automobile Association's fundamental code c) Zappo's service strategy d) Ritz Carlton principles *
A _________ is a consumer who is unhappy with a product or service and takes every opportunity to share their disgruntlement with as many people as possible, often on social media.
a) Brand detractor* b) Brand dissident c) Brand spoiler d) Brand evangelist
The front office staff at the Bakersville Hotel performs all of the following functions except
a) Checking in and checking out guests b) Making reservations c) Managing guest services d) Physically checking the status of each guest room*
A selection of competing hotels against which a property or chain measures its own performance, based on location, service level, amenities, and the hotels' physical condition, is referred to as the ___________________________.
a) Competitive set * b) Neighborhood hotels c) Head-on competitors d) "Hotels in the hood"
Front office employees at the Melville Lodge use a computer-based system to manage, among other things, the central reservation system (CRS), room revenue, room rates, room assignments, guest history, and accounting information. This system is referred to as a
a) Consolidated lodging system b) Property management system* c) Total management system d) Combined lodging system
The practice of reducing costs by transferring portions of work to outside suppliers rather than completing it internally is called _____________.
a) Cost shifting b) Cost conversion c) Cost transfer d) Outsourcing *
Engineering has three main responsibilities. Which of the following is not one of them?
a) Day-to-day system operation, maintenance, and repair of the physical building and all of its features b) Cleanliness of public space interior and exterior furniture, fixtures, and wall and floor surfaces * c) Control and reduction of energy use including electricity, water, gas, steam, etc. d) Assistance in the preparation of capital expenditures budgets
Which of the following terms refers to the number of guests interested in staying at a hotel and how much the guests are willing to pay for a room?
a) Demand * b) Supply c) RevPAR d) Rate tiers
Which of the following terms refers to information (such as age, education, and income) gathered about large groups of guests in an effort to identify common trends and improve selling to those groups?
a) Demographics * b) Demand-based inputs c) Geographics d) Social feedback
As a representative of the hotel's owner, it is important for a front office staff person to handle guest complaints by solving the problem, not arguing. The ultimate goal is to resolve the situation in a manner in which the guest feels understood and accommodated. This is best characterized as ___________________.
a) Diversion b) Putting yourself in their shoes * )c) Escalation d) Revenue management
Maintenance on critical equipment that breaks down unexpectedly is called __________ maintenance.
a) Emergency * b) Routine c) Critical
In preparing a front office schedule for any particular week, a front office manager must do all of the following except ___________________.
a) Estimate/forecast the needs of the department b) Review the history of previous check-ins and checkouts c) Ensure there is enough cash on hand to pay out rebates, discounts, and refunds * d) Keep within the budgeted dollar amount
In today's world of TripAdvisor, Facebook, Twitter, Snapchat, Instagram, and YouTube, ensuring guest satisfaction is ever more important because of positive guest comments by _______________________.
a) Fanatics b) Brand evangelists* c) Social fans d) Brand fans
Housekeeping management is said to be part technical, part administrative, and part ____________.
a) Financial b) Motivational * c) Legal d) Physical
Expenses that are purchased and consumed within the same tax year (i.e., paper goods, chemicals, guest toiletries) are called ____________.
a) Fixed expenses b) Undistributed expenses c) Operational expenses* d. Distributed expenses
The engineer works closely with all departments to review needs for furniture, fixtures, and equipment and then conducts a return on investment analysis. The engineer typically then presents the recommended capital expenditures budget to the __________________ for approval.
a) General manager and owner* b) Hotel executive committee c) Operations manager d) Hotel construction company
The hotel's primary, and most important, point of contact is the _______________.
a) General manager's office b) Human resources department c) Front office * d) Operations office
The employees who shift furniture and polish brassware in public areas, clean doors, windows, and elevator cars, and collect and distribute linens and terrycloth for room attendants are called ________________.
a) Guest room attendants b) Housepersons * c) Night supervisors d) Assistant housekeeping managers
In a hotel of 250 rooms or more, who is typically responsible for inspecting furniture and fixtures for wear and tear, replacing soiled linen from the poolside and other service areas, maintaining the public restrooms, and supervising others?
a) Guest room attendants b) Public area supervisor/assistant housekeeping manager * c) Maintenance manager d) Houseperson
What is the broad industry term that covers the entire guest experience, including a front desk staff that gives guests a lasting good impression of the business by maintaining a friendly and helpful attitude?
a) Guest services* b) VIP service c) Front-line service d) Total services
What is the term that describes a front desk staffer who can fulfill any request a guest may have during the course of their stay?
a) Guest-service agent b) Night watchman c) Switchboard operator d) Concierge *
A front office manager's effectiveness can be measured in a number of ways. According to the reading, which of the following is NOT one of them?
a) Has front office employee turnover been minimized? b) Are rooms and public spaces adequately cleaned and maintained? * c) Is guest satisfaction on target?
What is the name of the report produced by the housekeeping department early in the morning and late in the afternoon that shows each room's status (occupied, vacant, or out of order)?
a) Housekeeping flash report b) Housekeeping early bird report c) Housekeeping early/late update d) Housekeeping status report *
Who decides what physical hotel areas the housekeeping department is responsible for?
a) Housekeeping manager b) Front office manager c) Maintenance manager d) General manager*
Which hotel department is responsible for training and scheduling housekeeping staff and supervisors?
a) Housekeeping* b) Human resources c) Front desk d) Personnel
A room suddenly becomes out-of-order. When a chief engineer estimates the costs incurred to make a room repair immediately and compares them to revenues lost if the repair is delayed until later, this is called a(n):
a) Impact assessment b) Gut check c) Cost/benefit analysis * d) Go/no go decision
What are the most important areas for preventive maintenance?
a) Kitchen b) Guest rooms * c) Restaurants and meeting rooms
The housekeeping department has the ________________.
a) Largest number of employees b) Biggest payroll c) Largest dollar amount of inventory (bedding, bathroom, and chemicals) d) All of the above *
The housekeeping department has the _____________ in a hotel.
a) Largest number of employees * b) Highest-paid employees c) Second-largest number of employees d) Smallest payroll
Instead of becoming defensive in the face of a guest complaint, a front office person should instead ______________.
a) Listen carefully to what the guest has to say, and let them finish * b) Point out possible flaws in the complaint's logic c) Ask the guest to speak quietly if other guests are present
Revenue management approaches use a popular principle called demand-based pricing; as demand increases, ____________-rate categories are opened up.
a) Lower b) Higher * c) Previous period d) Budgeted
The Department of Labor agency that sets and enforces occupational health and safety rules is _________
a) MSDS b) The consumer protection agency c) OSHA * d) ACLU
Which of the following is considered contract maintenance?
a) Maintenance performed on a regular, scheduled basis to keep equipment running smoothly .b) Reoccurring maintenance, often mandated by law, for things that must be inspected and maintained on a strictly regular basis, including elevators, kitchen exhaust hoods, and fire systems. * c) The customary, basic care of a facility, including cutting and edging grass, roof repairs, changing light bulbs, and cleaning windows. d) Maintenance tasks that require extended periods of time to complete, such as construction projects, painting or repainting, and overhauling plumbing or electrical systems.
Hotels utilize a highly complex and ever-changing strategy referred to as revenue management, which blends which of the following elements to maximize revenues?
a) Marketing informationb) Operations resultsc) Competitors' ratesd) All of the above (CORRECT)
The general attractiveness of a hotel from the sidewalk or street location is called ____________.
a) Moment of truth b) Aesthetics c) Curb appeal* d) Drive-by view
Movable furniture, fixtures, or other equipment that has no permanent connection to the structure of a building is called ____________.
a) Movable temps b) Tangible items c) FF&E * d) Relocatables
The maintenance chief met with the front office manager yesterday afternoon, and they agreed that two rooms require maintenance before they can be made available to guests. These rooms are referred to as ___________ rooms.
a) No-sell b) Priority c) Out of order (OOO) * d) Emergency
What is the name of the information sheet that describes the physical and chemical properties of a product and contains useful information such as flash point, toxicity, and procedures for spills and leaks?
a) OSHA b) Room-status reports c) MSDS * d) MOD report
A front office manager/supervisor shoulders a variety of responsibilities. The scope of their tasks depends on the general manager or hotel owner, but these tasks will likely include all of the following except ________________.
a) Performing accounting duties (i.e., night audit) b) Allocating work assignments c) Ensuring guest room safety and security* d) Approving purchases of office supplies
The front office is often compared to the ____________________, since not only does it help direct the operations of each department but it also is often in a position to win guest loyalty by supplying accurate, timely information.
a) Pitcher of a baseball team b) Quarterback of a football team * c) Goalie of a hockey team d) Playmaker of a basketball team
Which of the following is not listed in the reading material as "motivational" for the housekeeping department?
a) Posting the work schedule well in advance b) Providing extra uniforms as needed * c) Continually testing cleaning chemicals to ensure that they are effective d) Helping to stock the housekeeping carts prior to the beginning of each workday
Which of the following items is a capital expenditure?
a) Printer paper b) Servers' wages c) An oven * d) A dozen cloth napkins
An effective preventive maintenance system can do all of the following except:
a) Reduce costs of emergency repairs by minimizing their occurrences b) Enable planned purchases of replacement parts, which saves money c) Eliminate the need for repair staff* d) Reduce revenue losses from refunds and charge-backs due to guest dissatisfaction
Improving an outdated, broken, or damaged structure is called __________.
a) Repair b) Reuse c) Recycling d) Renovation*
Which metric is determined by dividing total room revenue by the number of rooms available to sell?
a) Revenue per available room (RevPAR) * b) Return on investment c) Internal rate of return d) Cost-benefit analysis
A property management system (PMS) includes all but:
a) Room rates b) Employee Salaries* )c) Guest history d) Room assignments
What term is used to describe the up-to-date, actual condition of each of the hotel's guest rooms?
a) Room rating b) Room descriptor c) Condition status d) Room status *
Which of the following statements about revenue management is true?
a) Room revenue management concepts can also apply to nonroom revenue sources such as restaurants, spas, recreation, and entertainment. * b) Supply refers to how many guests are interested in staying and how much the guests are willing to pay for a room. c) Overbooking cannot prevent canceled rooms from going unoccupied. d) Revenue managers are prohibited from implementing promotions to increase deman
Which of the following statements about revenue management is true?
a) Rooms sold multiplied by ADR divided by available rooms equals RevPAR. * b) The number of rooms available divided by rooms sold equals RevPAR c) Total room revenue divided by the number of rooms sold equals RevPAR .d) Rooms sold divided by the available rooms equals RevPAR.
The front office staff includes several different positions. Which position is not part of the front office staff?
a) Sales coordinator * b) Concierge c) Bell staff d) Switchboard operator
Tasks that require extended periods of time to complete, such as construction projects, painting or repainting, and overhauling plumbing or electrical systems, are called ____________ maintenance.
a) Scheduled * b) Emergency c) Routine d) Contract
Which of the following positions is not part of the housekeeping staff at larger, full-service hotels?
a) Seamstress b) Night supervisor c) Housekeeping payroll attendant * d) Turn-down-service attendant
The use of computer algorithms to set room prices over time for various market segments (business, leisure, individual, group, etc.) is called ______________ pricing.
a) Static b) Periodic c) Pulse d) Dynamic *
Which of the following refers to a situation in which a hotel sells more guest reservations than it has rooms available, assuming that some guests will cancel or fail to show up?
a) Stayover b) Overdemand c) Overbooking * d) Inventory shortfall
The technology of indoor environmental control, which provides thermal comfort and acceptable indoor air quality, is called ___________.
a) Sustainable development b) IEC c) Mitering d) HVAC *
Housekeeping is often referred to as _________________ because it is responsible for the hotel's cleanliness-the most visible indicator of quality to employees and guests.
a) The "mops and gloves" b) The "heart of the house" * c) The "pristine transparency" d) The "clean machine"
The Algonquin Hotel reported that last night's occupancy rate was 78 percent and the ADR was $50. The main competitor, Beacon Street Hotel, reported a 65 percent occupancy rate with an ADR of $60. What can we conclude from this information?
a) The Algonquin had a higher RevPAR than the Beacon Street Hotel. b) The Algonquin had a lower RevPAR than the Beacon Street Hotel .c) The Algonquin Hotel had the same RevPAR as the Beacon Street Hotel * d) There is not enough information provided to compare RevPARs of the two hotels. SOLUTION: Algonquin RevPAR = 78% x $50 = $39 Beacon Street revPAR = 65% x $60 = $39 The hotels have equal RevPARs
Preventive maintenance is performed on a regular, scheduled basis and aims to keep equipment running smoothly and to minimize depreciation. What is depreciation?
a) The breakdown of critical mechanics and controls b) Inconsistency in the operation of HVAC equipment c) Lack of PM for a minimum of 90 days d) A loss in monetary value to a piece of property due to age and wear and tear *
Which of the following statements is false?
a) The true character of a hotel is demonstrated by how well the staff responds to comments and demands .b) Guests can have different reasons for voicing their concerns; some seek monetary compensation and others simply want the problem resolved .c) How an issue is perceived to be handled may well determine whether the guest returns and whether they decide to share the experience via social media .d) All of the above statements are true*
The ratio of guest rooms sold to the number of guest rooms available for sale in a given period, expressed as a percentage, is called ________________________.
a) Total room revenue b) Occupancy rate* c) Average daily rate d) Revenue per available room
Many hotels use incentives to keep guests returning to the hotel, whereby each time a guest stays, he or she earns points. These programs are referred to as __________ programs.
a) VIP b) Upgrade c) Loyalty * d) Advocate
Bobby Beegee, trainer at the Albatross Resort, explains that "one secret of successful hotels is training personnel-especially front-line personnel- to treat guests like ______________ instead of someone they'll never see again."
a) VIPs b) Family c) Residents * d) Friends
Guests are likely to approach the front office staff about issues concerning a variety of hotel functions, including housekeeping, food and beverage, maintenance, and security. According to the reading, this makes other departments view the front office as a ________________
a) Voice of the hotel b) Communication liaison * c) Hotel hub d) Command center
Hotels may change their room rates how often?
a) Weekly b) Daily c) Hourly d) All of the above *
Performing preventive maintenance is one of engineering's most important functions and is often cited as the most critical type of maintenance over the long term. The PM schedule should be developed for everything in a hotel that requires it for what periods of time
a) Weekly b) Monthly c) Quarterly d) Weekly, monthly, quarterly, and annually *
Which of the following comments is not true about the housekeeping department in a hotel?
a) When the housekeeping staff is effective, guest satisfaction is high, employee morale is good, and profits result b) Housekeeping's responsibilities and service levels are exactly the same in every hotel, no matter the size. * c) Guests turned off by a dirty hotel do not return and may share their feelings on social media d) Every guest or visitor to a hotel is readily able to see the results of housekeeping's work.
The average selling price of all guest rooms in a hotel or city during a specified period of time is called the _______________
average daily rate
Which of the following statements related to revenue management is FALSE?
c) RevPAR = rooms available × ADR ÷ sold rooms.
