INTERNATIONAL HOTELS AHLA EXAM

Since Germany's reunification, what had German unions had to do?

Since Germany's reunification, German unions have had to make concessions to management.

What are some good reasons for foreign hotel chains to invest in U.S. hotels?

Some reasons to invest in U.S. hotels are: Most gateway cities are in the U.S, stable government, and inexpensive.

What can sound career planning minimize?

Sound career planning can minimize the problems associated with the repatriation of employees.

What are the primary motives for international expansion?

Strategic growth and profit are the primary motives for international expansion.

What do tax reimbursement programs do?

Tax reimbursement programs is a major cost that makes using expatriates labor more expensive than using local labor.

What is Thailand's first and still largest lodging chain?

Thailand's first lodging chain and still its largest is Dusit Thani.

What was established in 1974 and now has over 100 members nations? And what was its mission?

The International Accounting Standards Board (IASB). It's mission is to enhance the comparability of financial standards and move toward a common accounting language.

What is the most common method for publicly listed and private hotel companies to raise capital is through?

The common method is through borrowing.

The expenses of what are often amortized over a period of up to 5 years?

The expenses of pre-opening are often amortized over a period of up to 5 years.

What were the barriers to international hotel expansion in Europe?

The high cost of construction, well-established domestic chains, and planning restrictions.

In general, the highest payroll-related costs are found in countries with?

The highest payroll-related costs are found in countries with strong labor.

When a franchise agreement is terminated and the hotel may no longer use the brand name, the hotel may what?

The hotel may move some of its customers and shares to other brands.

What must hotels do if they are to obtain financing from the International Finance Corporation?

The hotels must expand the Tourism market for the destination for new hotel projects.

What have development countries indicate that the greatest benefit of involvement with international hotel companies is?

The increase of tourism development.

The majority of hotel stock remains in the hands of small, family businesses in what country?

The majority of hotel stock in EUROPE remains in the hands of small, family businesses.

After political stability, what is the most important investment consideration in an international hotel project is?

The most important investment consideration is an international hotel project is market potential.

While several forces working together have dissolved national borders for industry and finance, what is the most influential of these forces?

The most influential force in the dissolution on national borders is the increasing flow of communication.

What is the oldest hotel chain in India?

The oldest hotel chain in India in Taj Group.

The orientation of new employees at an international hotel needs to explicitly address what?

The orientation need to explicitly address the cultural attitude towards service.

When a hotel owner is considering which management company or franchise company to choose to operate his or her hotel, what is the first thing the owner should find out about the company?

The owner needs to know if the company is already represented in the market.

What happens under a management contract?

The owner receives the residual net income after all expense.

How do the payback of investment for hotel projects differ from paybacks for other types of investments?

The payback of investment for hotel projects is generally SLOWER than paybacks for other types of investments.

What is the priority function of the World Tourism Organization?

The priority function of the WTO is to educate and train.

The purpose of what is to provide sales agents with firsthand knowledge of hotel products.

The purpose of FAMILIARIZATION TOUR is to provide sales agents with firsthand knowledge of hotel products.

Under a management contract, the hotel operator usually reserves the right to what?

The right to hire and fire key personnel.

What is the most significant factor in an Asian travel distributor's decision to work with a hotel salesperson?

The salesperson's integrity.

A hotel's international marketing strategy requires the selection of?

The selection of specific target markets, communication and promotion methods, and distribution channels.

What is a favorable result that the support of local businesses and products by the international hotel?

The support of the local farm economy enables the host country to each foreign exchange.

How has the use of foreign tax credits changed?

The use of foreign tax credits has become increasingly complex.

What activity are the national tourism organizations frequently involved in?

They are involved in official tourism representation at the national and international levels.

United Kingdom hotels are mostly concentrated in what country?

They are mostly concentrated in Europe.

Before the 1960s, what was international hotel development activity focused on?

They focused on gateway cities and world capitals.

What strategies are used to attract and retain workers in the hospitality industry?

They have traditionally used wages and benefits to attract and retain workers.

What should most international hotel managements follow?

They need to follow the standard practice throughout the world that such agreements are governed by the laws and regulations of the country where the hotel is located (the host country)

What do many analysts predict will happen to newer lodging companies?

They predict that newer lodging companies will be squeezed out by bigger chains or acquired by mega-chains.

What statement about European-owned hotel companies is FALSE?

They spend less than do U.S. companies on training.

How do international hotel doing business with tour wholesalers an advantage?

Tour packages can fill in business during the off-seasons is an advantage for an international hotel doing business with tour wholesalers.

What are voluntary associations?

Voluntary associations are organizations of independently owned and operated hotels that have joined together primarily for marketing reasons.

What is the largest group of users of hotel accommodations and services worldwide are who?

business travelers

What is an advantage of airline-hotel linkages?

An advantage of airline-hotel linkages is the potential for increasing market share.

In order to obtain a loan, an international hotel project typically have?

An international hotel project must have a nationally international recognized hotel affiliation.

What is an example of an ownership risk present in a foreign hotel investment?

An ownership risk present in a foreign hotel investment is creeping expropriation.

What is the focus of attitude-training in a pre-departure training program?

Attitude training focuses on attitudes and how they are shaped.

What is most likely to be considered a security issue?

Baggage Handling would most likely be considered a baggage issue.

Covered by the budget for capital expenditures for improvements and additions?

Budget plans

What are typical cost to a hotel owner if he or she chooses the wrong operator affiliation for the hotel?

Costs include: cost of termination the operating agreement and the cost of purchasing new hotel identity items such as signs and monogrammed.

What tends to be unfortunately neglected in the design of international hotels?

Cultural values of the host countries tend to be neglected.

What are desirable characteristics in an expatriate manager?

Curiosity, tolerance of ambiguity, and sense of humor.

Who were among the first organizations to inform potential guests of the quality of specific lodging accommodations?

Cycling clubs

In which countries would domestic travel be expected to exceed international travel?

Developed countries are expected to exceed international travel.

A hotel industry study in Toronto showed that although cultural diversity in the workplace has positive effects, what can be the negative force when departmental concentration of minority ethnic groups causes conflict between individuals due to what?

Due to language or cultural differences.

Pre-departure training and orientation can help reduce the incidence of culture shock among expatriate employees by?

Enabling individuals to approach the new environment positively and with realistic expectations.

What is the current de facto international language of business?

English is the current de facto international language of business.

What principles do many international banks that want to make sure the projects they finance are developed in a socially responsible, environmentally sound manner?

Equator principles.

Most marketing experts agree that the best marketing decisions come from?

Experience and judgement

What are the projects that foreign investors tend to prefer?

Foreign investors tend to prefer properties affiliated with luxury chains.

In most non-Western cultures, the preservation of dignity is?

It is an all important value.

What should be included in a market feasibility study?

It should include supply factor analysis.

What should a preliminary site and building analysis include?

It should include zoning restrictions.

Market segmentation based on motivations, lifestyles, interests, hobbies, or propensity to travel uses what data?

It uses psychographic data.

In the late 1950s, what was mass demands in Western Europe for tour packages to new resort destinations stimulated by?

It was stimulated by the growth of the air travel industry.

Trade advertising is a promotional tool for hotels would be aimed at who?

It would be aimed at travel and tourism industry professionals.

Ascertaining whether there are any restrictions on land use is an element of what?

It's an element of the conceptualization, planning, and initiation phase of hotel development.

What is the set of expectations or basic assumptions that, consciously or subconsciously, guide behavior in an organization called?

It's called corporate culture.

The risk that is taken whenever business transactions must be paid or received in a foreign currency is called what exposure?

It's called transaction exposure.

What are transnational organizations characterized by?

It's characterized by more teamwork; shared responsibility, mission, and strategy; and encouragement of innovation and local implementation.

A society in which everyone is expected to look out for his or her own self-interest is described as practicing what?

It's described as practicing individualism.

The presumption that one's cultural values and habits are superior to and more sophisticated than those of another culture is known as?

It's known as ethnocentrism.

The position of executive assistant manager is most likely to be filled by a what?

It's most likely to be filled by an expatriate.

What are non-recourse finance not been very common is Asia?

It's not common because they prefer equity financing.

Lenders usually want franchise terms to extend over what?

Lenders usually want franchise terms to extend over the life of the mortgage on the property.

What worldwide demographic factors is likely to reduce the family vacation market?

Longer school years are likely to reduce the family vacation market.

Maintaining safety and security systems to protect people and hotel assets is an example of the what function?

Maintaining safety and security systems to protect people and hotel assets is an example of the CONTROLLING function.

What is a hotel classification system that is considered one of the world's most critical?

Mobil Travel Guide

Most owners prefer what because they make it easier to remove deficient operators?

Most owners prefer short term contract because they make it easier to remove deficient operators.

Official hotel classification systems are usually drafted by?

National Hotel Administration

What had a significant impact on the international hotel industry in the Middle East?

Oil prices had a significant impact on the international hotel industry in the Middle East.

Overly restrictive immigration and work policies are likely to cause what?

Overly restrictive immigration and work policies are likely to cause a weakening of the local hotel industry's competitive position.

What kind of competitiveness is frowned upon in many Asian cultures?

Overt individual competitiveness is frowned upon.

Who represent the most price-sensitive segment of the travel market?

Pleasure travelers represent the most price-sensitive segment of the travel market.

An example of a human resource acquisition activity is?

Recruiting, selecting, training, and placing the right people in the right position. Keeping them stimulated, satisfied, and productive.

With respect to hotel classification systems, "registration" refers to?

Registration is a form of licensing that may or may not require a minimum standard.

Regarding fire safety standards for hotels, how do regulations vary?

Regulations vary considerably from country to country and even from city to city.

What is not a typical element of a tourism master plan?

Religious demographics of the local workforce is NOT a typical element of a tourism master plan.

When someone from a different culture is speaking, what's the best way to insure that the message was correctly heard?

Repeating the message back to the speaker is a good way to ensure that the message was correctly heard

What is raising capital by offering current shareholders additional shares at a discount from the market price called?

Rights issue

What is a typical element of a successful hotel classification system?

A means to appeal to a higher authority in the event of a dispute is a typical element of a successful hotel classification system.

A recent development in the industry is the inclusion of what as a priority feature that business travelers look for in a hotel?

A recent development in the industry is the inclusion of BUSINESS FACILITIES as a priority feature that business travelers look for in a hotel.

What does a skills transfer involve?

A skills transfer involves an explicit understanding that expatriates will train their local counterparts to take over the expatriate's positions.

What does a sound crisis plan will always focus on first?

A sound crisis plan will always focus on human safety first.

What are beyond the standard quality service expected by guests?

Free coffee, tea, or soda pop in the room is expected.

What is high context culture? Give an example of a high context culture.

High context culture is when nonverbal elements of communication play a more prominent role than the verbal. Example: Chinese, Korean, Vietnamese, Japanese, and Middle Eastern

What is NOT of primary concern to the governments of developing countries?

Hotel profitability is not of primary concern to the governments of developing countries.

What is not recommended in negotiating across the given culture?

In Italy, be conservative, efficient, impersonal, and go straight to the point.

Some international chain operators insist that disputes involving certain financial matters should be subject to binding determination by?

Independent auditors

For business leaders in Germany, what power ranks highest in importance?

Intellectual power ranks highest in importance.

What region did InterContinental first expand?

InterContinental first expanded in Latin America & Carribean.

What is an example of a government incentive designed to reduce the capital outlay for a hotel project?

Interest relief subsidies is an example of a government incentive.

Codifying "the generally accepted international trade practices governing the contract of hotel accommodation" is the objective of?

International Hotel and Restaurant Association