CHAPTER 2

A hospitality company that wishes to expand rapidly by using other​ people's money instead of acquiring its own financing is known as a REIT.

FALSE

Building an environmentally conscious lodging facility is not a​ cost-effective solution, due to the cost of building materials.

FALSE

​Luxury, Upper​ Upscale, Upper​ Midscale, Midscale, and Economy hotels have been classified as such using the Forbes Travel​ Guide's Five Star rating process.

FALSE

A luxury property is one that offers the ultimate in​ décor, 24-hour room​ service, business amenities including the latest in​ in-room technology, and recreational offerings such as a spa.

TRUE

Another term for the timeshare or vacation ownership model is fractional ownership.

TRUE

The use of expert systems refers to using a basic form of artificial intelligence to make standard operating procedures available online at all times.

TRUE

The World Tourism Organization has called ________ one of the fastest-growing sectors of the travel and tourism industry. -timeshares -luxury hotels -management contracts -franchising

-timeshares

Which of the following statements is true about franchising in the hospitality industry? -A franchisor grants certain rights to a franchisee for a fee. -A franchisor lacks specific expertise and recognition. -A franchisee lacks financial backing. -A franchisee sets the guidelines for the franchisor to follow.

-A franchisor grants certain rights to a franchisee for a fee.

Which of the following statements is true about airport hotels? -Almost all airport hotels provide courtesy van transportation to and from the airport. -Many airport hotels have low occupancy because of the large number of travelers arriving and departing from major airports. -Transportation to the hotel and back from the airport is usually very expensive. -Inconvenient locations, high prices, and costly transportation make airport hotels unpopular.

-Almost all airport hotels provide courtesy van transportation to and from the airport.

Which of the following is true of the trends influencing the hotel business? -As the industry matures, corporations are either acquiring or merging with each other. -Currently, those who own and manage global reservation systems or negotiate for large buying groups are in control of a hotel's sale and distribution; but increasingly control is falling into the hands of the owners of the properties. -There is a fall in the development of appearance, ambiance, and food quality at restaurants within hotels. -As baby boomers enter their fifties and sixties, the popularity of vacation ownership is decreasing.

-As the industry matures, corporations are either acquiring or merging with each other.

________ refers to who will control the sale of inventories of hotel rooms, airline seats, auto rentals, and tickets to attractions. -Capacity control -Culinary selectiveness -Consolidation -New management

-Capacity control

__________ in the hospitality industry is a concept that allows a company to expand more rapidly by using other people's money rather than obtaining its own financing. -Franchising -Merging -Acquiring -Diversifying

-Franchising

Which of the following is a reason why today's developers are more environmentally conscious? -It is more costly to run a lodging facility if it is not sustainable. -It is more costly to build a lodging facility if it is sustainable. -It is less costly to import materials. -It is less costly to use higher-wattage lighting.

-It is more costly to run a lodging facility if it is not sustainable.

Which of the following is an advantage of buying a franchise? -It provides the buyer the franchisor's experience in running the business. -It provides the buyer the experience of starting the business from scratch. -It gives the buyer the freedom to operate the business independent of the franchisor. -It gives the buyer the authority to set the guidelines for the franchisor.

-It provides the buyer the franchisor's experience in running the business.

________ collects data on hotel properties, competitive set, and the industry within and outside the United States and issues STAR reports, which summarize hotel and market performance on a weekly, monthly, and annual basis. -Smith Travel Research -American Automobile Association -Forbes Travel Guide -Mobil Travel Guide

-Smith Travel Research

Which of the following statements is true about vacation ownership? -These types of properties are often urban condominiums. -It is the slowest-growing segment of the lodging industry. -These types of properties are often city center hotels. -It gives ownership rights to a single party.

-These types of properties are often urban condominiums.

Which of the following statements is true of two-diamond properties? -They have average roadside appeal, with some landscaping and a noticeable enhancement in interior décor. -They have simple roadside appeal and the basic lodging needs. -They have excellent roadside appeal and service levels that give guests what they need before they even ask for it. -They have the highest service levels, sophistication, and offerings.

-They have average roadside appeal, with some landscaping and a noticeable enhancement in interior décor.

Which of the following statements is true of city center and suburban hotels? -They meet the needs of the traveling public for business or leisure reasons. -They are often a destination unto themselves and are developed to be all-encompassing. -They attract guests who want a hotel for leisure and recreation. -They offer an environment where the guest may not ever need to go off-property for entertainment, recreation, meeting, or relaxing.

-They meet the needs of the traveling public for business or leisure reasons.

Which of the following is a method that the hospitality industry uses to conserve water? -Using low-flow water devices -Decreasing the number of decorative plants -Reusing swimming pool water to water the lawns -Using disposable cutlery

-Using low-flow water devices

A(n) ________ is defined as a chain hotel owned or managed by the chain or parent company. -corporate hotel -franchise hotel -independent hotel -luxury hotel

-corporate hotel

A Summary Operating Statement _______ -is a document that details revenues and expenses for a period -Is used to form partnerships of convenience between hotel management companies and developers and owners, who generally do not have the desire or ability to operate the hotel -is done to assess the viability of a project -"guesstimates" the sales figure for the month or year and allows for up to a specific dollar amount to be spent on any cost of goods sold or controllable-costs item

-is a document that details revenues and expenses for a period

The primary difference between franchise ownership and management contracts​ is: A. A franchisee receives several benefits including a centralized reservation​ system, national​ advertising, and specific plans to follow when​ building, while a hotel management contract is a partnership between developers and owners who do not want to be involved in​ day-to-day operations. B. A franchise requires virtually no​ up-front financing, while a hotel management contract requires a large down payment. C. A franchisee is not required to meet specific standards for exterior maintenance and service​ levels, while a hotel management contract requires specific standards to be met. D. The only difference between a franchise and a hotel management contract is the amount of annual fees to be paid.

A. A franchisee receives several benefits including a centralized reservation​ system, national​ advertising, and specific plans to follow when​ building, while a hotel management contract is a partnership between developers and owners who do not want to be involved in​ day-to-day operations.

The cost of lighting a facility can be as much as 30 to 40 percent of the total electricity consumption of a facility. One way to reduce this cost would be​ to: A. Employ motion detectors to use lighting only when necessary B. Use fluorescent lights whenever possible C. Use the most powerful lights possible to light the roadway D. Change lightbulbs every 30 days

A. Employ motion detectors to use lighting only when necessary

Restaurants within hotels have become more​ interactive, with chefs focusing on using​ sustainable, organic, or local ingredients. Additional culinary trends include all of the following​ except: A. Low carb B. Farm to table C. Small plate D. Snackification

A. Low carb

Airport hotels generally may include all of the following types of properties​ except: A. Luxury B. Timeshare C. Economy D. ​Full-service

B. Timeshare

A four diamond hotel would exhibit the following​ properties: A. Higher service and comfort​ levels, more sophisticated B. Average roadside​ appeal, some​ landscaping, and a noticeable enhanced interior C. Excellent roadside appeal and service levels that anticipate the guests needs before they ask D. Highest possible service​ levels, sophistication, and offerings

C. Excellent roadside appeal and service levels that anticipate the guests needs before they ask

A vacation club system of ownership allows owners to do all of the following​ except: A. Not be surprised by hidden costs associated with a vacation because the fees are determined in advance B. Share the use and upkeep costs of their property and common space C. Use the property at any time during the year with no advanced notice D. Purchase fully furnished vacation accommodations for specific intervals

C. Use the property at any time during the year with no advanced notice