Intro to Lodging Management

A hotel's utilization rate is also referred to as the occupancy percentage

true

Hotels must focus on exceeding the expectations of guests, ultimately to ensure that the hotel is able to meet goals of the hotel's investors

true

Most hotels in the United States are brand-affiliated

true

REITs receive specific tax benefits intended by the United States government to encourage commercial real estate investment

true

The core service offered by all hotels is overnight accommodations.

true

hotels are designed based on the needs of

guests/customers

a market with a strong demand enjoys higher occupancy levels and a _________ ADR

higher

The three distinct business foci within the hotel industry include

hotel investment and ownership, hotel management, and branding

A firm that provides a wide variety of support services to hotels, including multiple hotel brands, is referred to as a

hotel parent company

when considering investing in a hotel, buying or selling, one of the most important considerations is

how to value your property

another term for vacation ownership is:

timeshare

Sunrise Hotel is a 500 room hotel, the hotel sells 127,750 room nights in a year producing $28,563,327 in yearly room revenue. Using this information calculate occupancy %, ADR and RevPAR. Hint: Read the examples used in the Box 5.1 to help you with calculations. Using the information provided calculate the average daily rate (ADR).

$28,563,327 yearly room revenue / 127,750 room nights sold in a year = $223.59 ADR

Sunrise Hotel is a 500 room hotel sells 127,750 room nights in a year producing $28,563,327 in yearly room revenue. using this information calculate occupancy %, ADR and RevPAR. Hint: Read the examples used in the box 5.1 to help you with calculations. using the information provided calculate the Occupancy Percentage (%):

127,750 room nights sold * 182,500 service capacity = 70%

the Age Discrimination in Employment Act of 1967 protects people against discrimination who are ______ or older

40

Sunrise Hotel is a 500 room hotel, the hotel sells 127,750 room nights in a year producing $28,563,327 in yearly room revenue. using this information calculate occupancy %, ADR and RevPAR. Hint: read the examples used in the box 5.1 to help you with calculations. using the information provided calculate the RevPAR (Revenue per available room):

500rooms*365days in the year = 182,500 28,563,327/182,500= 156.51(RevPAR

Which KPI provides the best indicator of a hotel's overall performance

RevPAR

which law makes it illegal to discriminate someone based on their national origin

Title VII of the Civil Rights Act of 1964

a hotel guest room designed for guests with mobility and other challenges that complies with he Americans with Disabilities Act (ADA) is referred to as:

accessible

hotels offer potential to investors of increased cash flows due to

all of the options provided: - proper management can increase occupancy - guests pay rooms in advance - hotels offer other services that generate revenue like f&b outlets

according to many hotel managers, what is the most important question in the guest service quality survey?

assess guest intentions to return to the hotel in the future

vision, mission, and value statements:

clarify organizational goals, and define how associates are expected to behave

the exempt manager that oversees the accounting function at a hotel is typically referred to as the

controller

the two largest expenses in the F&B division are:

cost of goods sold (COGS) and labor

why are hotel F&B departments making changes to their offerings?

customer feedback

ultimately, a successful hotel manager must

deliver a satisfactory return on the investment made by the hotel's owners or investors

a chain of intermediaries though which a product or service passes from the provider to the end user is referred to as a(n):

distribution channel

labor cost per occupied room (COPR) is calculated by

dividing wages incurred by the number of occupied rooms services

once department managers are provided to GSI scores for their department, they re challenged with:

ensuring that scores are maintained or improved

A hotel that offers overnight accommodations and no, or only a limited degree of peripheral services is referred to as a full-service hotel.

false

No-show and cancellation policies, including charging guests no-show charges on the credit card they use to guarantee their reservations, as well as the forfeiture of advanced deposits, must laws be strictly enforced

false

The major hotel chains, including Marriott, Holiday Inn, Hampton Inn, and Hilton, own most of the hotels in the United States

false

a conference services manager really is not a salesperson - his/her role is merely to take the customer's order for food and beverage (F&B) services, whatever they may be

false

a high ADR is the first priority for successful hotel management

false

a hotel may designate some positions, regardless the specific responsibilities of the position, as "exempt" positions, in order to avoid paying employees overtime

false

a large banquet and catering operation has a negative impact on a F&B division's contribution margin

false

according to The Equal Employment Opportunity Act (EEOA) you can ask questions related to the candidates sexual orientation

false

all states prohibit asking salary related questions during the interview process

false

engineering recordkeeping systems rarely provide any insight into whether malfunctioning equipment should be repaired or replaced

false

experiential dining has a significant impact on the food budget of an event

false

hotel investment is like any other real estate investment

false

investment decisions should be made based on the hotel experience the investor finds attractive

false

maximizing the return of investors must always be the priority of management even at the expense of guest satisfaction

false

one of the advantages of marketing hotel accommodations through the GDS is the low cost to the hotel of electronic distribution

false

one problem with user-generated content is that potential guests often view it as less reliable or accurate

false

rather than create detailed processes and systems, management should allow employees to develop their own way of doing most required tasks

false

the revenue manager report directly to the director of guest services or front office manager, rarely having any direct contact with the rooms division manager, director of sales, or general manager (GM)

false

the routine inspection and maintenance of a hotel's escalators and elevators is typically handled in-house by the hotel's property operations and maintenance (POM) department

false

the specific demand generators located in proximity to a hotel property has little impact on the guest segments that may be pursued by the hotel sales and marketing team

false

when interviewing several candidates for the same position you should change the question set for each candidate

false

doors with a specified burn-through rating that close automatically when fire is detected to minimize the spread of a fire and the smoke produced are referred to as:

fire doors

a listing of the required education, knowledge, skills, abilities, and behavioral characteristics an associate needs to be successful in a position is referred to as the

job specifications

the requirement to comply with laws and regulations refers to a hotel's

legal responsibility

resort destinations rely on a higher proportion of ________

leisure travel

a network of visual and audible alarms, as well as fire suppression devices, connected at a central control panel designed to protect human life and physical assets, is referred to as the:

life safety system

an ownership entity in which the investors' risk is typically limited to the amount of their investment in the hotel is often referred to as a(n)

limited liability partnership

one strategy to handle demand during off-seasons (shoulder season) is to entice groups to book during off season by providing them with a ________

lower price

during an economic downturn which hotel type is likely to experience a larger demand drop

luxury

if you were going to summarize the information below in one word. what drives success for a hotel?

managing demand

when the hotel receives payment for the estimated room and tax charges for a guest's entire stay at the time of booking, it is referred to as a:

pre-paid reservation

the cost of labor, couples with the cost of food, is typically referred to as:

prime costs

a labor productivity measure expressed as a ratio of labor hours relative to occupied guest rooms is referred to as

pure measure of productivity

A single hotel accommodation occupied by a guest or guests for one single night is referred to as a:

room night

the process of identifying potential clients, assessing their needs, and evaluating the fit between these needs and the services, products, and experiences offered by the firm is referred to as:

sales prospecting

two or more service products that are offered for purchase in combination with one another for a single price are referred to as a:

service bundle

Ultimately, hotel management must prioritize the needs of the guests, since providing exceptional guest experiences is critical to optimizing the long-term financial success of a hotel

true

a common method to establish realistic expectations for a potential employee is to provide a realistic job preview, which may prevent establishing an unrealistic psychological contract

true

a hotel that sold 240 rooms last night with a total rooms revenue of $24,000 has an average daily rate (ADR) of $100.00

true

a hotel's work order system is designed, in part, to monitor the productivity of each individual engineering associate

true

a strategy that many hotel marketers use to increase a hotel's ADR without altering room rates is to attempt to shift the market or guest mix

true

an important role of the revenue manager is to inform members of the hotel sales team of upcoming group cut-off dates and when it appears a group is not on-pace to pick-up their entire group room block, which may help groups avoid attrition charges

true

higher occupancy leads to additional expenses. Therefore, a successful hotel seeks to maintain an annual occupancy of over 70% to 75%

true

in-room dining or room service operations are inherently inefficient and challenging to staff and manage

true

it is illegal to ask health related questions including pregnancy, illness, operations and recovering alcoholism or other types of addictions

true

it is the responsibility of every member of the hotel's management team to create a positive work environment, ensuring that the hotel is perceived by current and potential employees as an employer of choice

true

many luxury hotels provide twice daily housekeeping service with the evening service, during which the room is refreshed and the bed is turned down, referred to as turndown service

true

many resorts may suffer from seasonality and struggle to sell off-season

true

one of the challenges of vacation rentals within a resort setting is the inconsistency of the accommodations

true

the food and beverage (F&B) division may be thought of as the "personality" of a hotel since the quality and creativity of the hotel's F&B operation can distinguish a hotel significantly from its competitors

true

the greatest benefit of this three-tier inspections process is that it communicates to the room attendants, housemen, and housekeeping supervisors that what they do - each and every day - is important to the hotel's success

true

the guest service index (GSI) is a metric that is used to evaluate guests' perceptions of the service quality delivered by a hotel, often measured as the percentage of positive responses on guest surveys

true

the way that the debt on a hotel is structured typically has a significant impact on the return that investors earn on their environment

true

to optimize a hotel's ADR, occupancy, and RevPAR, the sale of overnight accommodations through the various distribution channels must be thoughtfully managed

true

volume accounts refer to organizations that negotiate a discounted room rate while committing to generate a minimum number of room nights annually

true

when a guest initially selects a hotel, the hotel's location is critical; however, cleanliness is the most important factor regarding whether a guest returns to a specific hotel

true

the proportion of service capacity that is consumed during a specified time period is referred to as:

utilization rate