Deck 1: Overview

Question 1

An ownership entity hold the title to the land and the hotel after it has been built?

Answer 1

True

Question 2

According to the author, it only takes one year for a hotel to go from the original conception phase to welcoming its first guest?

Answer 2

False

Question 3

The classification, signage and identification, includes items that are required by the incoming brand's standards, but do not currently meet the new standards?

Answer 3

False

Question 4

From a planning standpoint, the ideal lead time for a conversion is 12 weeks?

Question 5

According to the author, a developer of a hotel is an entrepreneur and risk taker?

Question 6

A hotel General Contractor is most often selected to build the hotel based upon:

A) The fact that they offered the lowest bid
B) The hotel franchiser requires that specific General Contractors be used
C) Their experience building hotels of a similar design
D) All of the above
E) Only a and c

Question 7

Which of the following are not part of the top entities involved in a hotel's operation?

A) Owner
B) Management company
C) Employees
D) Brand affiliation agreement
E) All of the above were mentioned in the article as a top entity

Question 8

Lending Institutions are most comfortable offering construction loans when the:

A) Loan is 100% personally guaranteed to be repaid by one of the owners
B) The loan-to-value ratio is no greater than 40% equity and 60% loan
C) The developer and general contractor are experienced hotel builders
D) The hotel will be franchised by a national hotel chain
E) All of the above

Question 9

The following are all commonly used business structures except a:

A) C Corporation
B) S Corporation
C) Investment Club
D) Limited Liability Company LLC)
E) None of the above

Question 10

After the developer selects an appropriate location to build the hotel, a feasibility study is often conducted to obtain an analysis of the site by an objective third party?

Question 11

Costs to be considered in preparing a Construction budget include all but one of the following:

A) Incentives to the local building inspectors
B) Working Capital
C) Construction Loan Fee
D) Construction

Question 12

From a legal standpoint, a hotel company cannot use a former flag's registration card to check in guests at the new brand's hotel?

Question 13

The classification, _______________, includes items that have the existing brand's name or logo on existing items, which must be replaced on the day of the name change.

A) Signage and identification
B) Minimum brand standards
C) Human resources
D) Computer information systems
E) None of the above

Question 14

Preparing a hotel to carry a new brand is called a flag in the industry?

Question 15

The classification, computer information systems, includes all costs for hardware, software, cabling installation, and training associated with converting the new brand's information systems requirements?

Question 16

A hotel ownership entity often enters into an agreement to finance and build the hotel using a:

A) Franchise agreement
B) Development and Construction Management Agreement
C) Management Agreement
D) General Contractor for both financing and building
E) Only a and c

Question 17

The Ownership Entity, The Developer, and The Management Company must all be different companies with different people, each operating on an "arm's length" basis?

Question 18

The process by which hotel management and franchise companies protect their brand names is referred as brand integrity?

Question 19

Typically, all goods necessary for reflagging are delivered in the late afternoon on the day prior to the flag change?

Question 20

In general, the higher a hotel owner pays for the land where the hotel will be built, the lower the owner is able to charge for a room?

Question 21

According to Jupiter Media Metrix, on-line travel sales in the year 2007 will reach _________ billion dollars?

A) 50
B) 25
C) 85
D) 64
E) 18

Question 22

Consumer adoption of the Internet as a reliable and secure commerce medium has prompted a change in the way in which hotel rooms are being distributed?

Question 23

The incoming management team of a conversion usually wants to replace some, if not all, of the key executives. Which of the following is not one of the key executives mentioned in the article?

A) General manager
B) Director of housekeeping
C) Operations manager
D) Controller
E) Front office manager

Question 24

The findings indicated that hotels at the low end of the market are more likely to be consistent in their pricing structure across all channels used?

Question 25

A consumer reserving a room from a luxury-hotel company will find the cheapest rate on the hotel company's website less than 10% of the time?

Question 26

Which of the following benefits is the key in selling successfully on-line, according to the article?

A) Saving time
B) Price
C) Getting bonus loyalty-club points
D) Service
E) The availability of information

Question 27

According to the study conducted by Yesawich, Pepperdine, and Brown 2000), almost ____ out of ten leisure travelers now seek the "lowest possible price" for travel services.

A) 2
B) 4
C) 6
D) 8
E) None of the above

Question 28

The two major challenges of converting a hotel are:

A) The contract and negotiation process
B) The transition and the contract
C) The timing of the physical change-out and satisfying customers under the new name
D) The human resource issues and the timing of the physical change-out
E) The contract and the human resource issues

Question 29

According to the article, on-line intermediaries i.e., Expedia.com) offer the highest probability of finding the best rate available for high-end properties, with an average savings of _____ percent over the company's own website?

A) 5
B) 10
C) 20
D) 25
E) 50

Question 30

According to Jupiter Media Metrix, roughly 50% of all would-be-guests visit only one website i.e., Expedia.com, the hotels direct website, etc.) when making hotel reservations?

Question 31

According to the findings, a luxury-hotel companies' web site quoted the highest rate in over one-third of the time?

Question 32

The classification, _______________, includes all costs associated with hiring and relocation.

A) Signage and identification
B) Minimum brand standards
C) Human resources
D) Computer information systems
E) None of the above

Question 33

According to the article, which of the following was stated as a positive implication for presenting a variety of hotel room rates to consumers via internet channels?

A) Customers are able to make a more rational decision when determining which hotel they prefer to visit.
B) Consumers use the range in prices to analyze the effectiveness of the hotel company, resulting in higher quality customer perception.
C) It allows the guest more flexibility in his/her decision-making process.
D) The more rates listed equals more information the consumer is able to use in making his/her purchasing decision.
E) It allows the customer to match his or her needs with the products being sold.

Question 34

According to the author, using the Internet to make reservations is faster, easier, and more convenient than contacting a travel agent?

Question 35

A consumer reserving an economy room will find the cheapest rate on the hotel company's website nearly 25% of the time?

Question 36

The physical change-out refers to:

A) Hiring new employees
B) Hiring new managers
C) Changing the organizational culture
D) Developing new employee manuals
E) Removing the former name

Question 37

According to the findings, the most commonly used source to book hotel reservations is trough the hotels central reservation system?

Question 38

Which of the following explanations were given by O'Connor for the increased consumer perception that on-line reservations offer lower room rates compared to other distribution channels?

A) Many of the best-known internet retailers i.e., Amazon.com) initially competed with traditional outlets based on price.
B) Consumers are aware that web-based distribution costs are lower than those of other channels.
C) Many hotels use the web site to sell last-minute deals at relatively low prices but with short lead times.
D) All of the above
E) Only a and b

Question 39

Which of the following was not a result finding) of this study?

A) The majority of hotel brands now use simultaneous, multiple electronic channels of distribution.
B) The use of CRS-based reservations has increased over the past few years.
C) There has been a growth in the availability of hotel companies' own web sites.
D) Hotels at the upper end of the market are more likely to be consistent in their pricing structure across all types of distribution channels?
E) Both B and D

Question 40

According to the statistics quoted in the Horwath Worldwide Hotel Industry Studies, direct reservations increased in the period between 1995 to 1999, shifting sales away from electronic channels?

Question 41

The term "spa," was once reserved for European destination resorts where guests went to "take the waters" to restore a healthy and balanced life?

Question 42

The number of visits to alternative care physicians in 1997 was greater than the total number of visits to primary care physicians in the same year?

Question 43

There are three stages to remembering a name. The second stage is:

A) The face must be recognized as being familiar
B) Information about why the face is familiar must be recovered from memory
C) The name of the person matching the face must be retrieved
D) None of the above

Question 44

23% of spa visits and 29% of spa goers in 2003 were men?

Question 45

One memory technique, called first-letter mnemonics, is perhaps the most popular form of mnemonics, according to the authors?

Question 46

According to research, recognition of familiar faces is ____ percent accurate when they are presented upright.

A) 25
B) 50
C) 60
D) 75
E) 95

Question 47

It is imperative that all full-service hotels and resorts without a spa should incorporate one into their property?

Question 48

Which of the following was NOT mentioned as a technique that will allow an individual to commit names to memory?

A) First-letter mnemonics
B) Visualize the persons' name written on his or her forehead
C) Key-word match
D) Repeat the individuals' name throughout the conversation
E) All of the above were mentioned as successful techniques.

Question 49

The authors mention that one way to improve face recognition is by concentrating on a specific facial feature. As a result, it was recommended to focus on things such as hairstyle, facial hair, or eyeglasses?

Question 50

Face recognition is the _______ step in guest recognition.

A) First
B) Second
C) Third
D) Fourth
E) Fifth

Question 51

In 2005, the spa industry was considered the second fastest growing segment of the travel, hospitality, and leisure market?

Question 52

Facial recognition is enhanced considerably by remembering internal facial features as opposed to external features?

Question 53

The task of remembering faces is more difficult for females than it is for males?

Question 54

Name recall is more critical and challenging than face recognition?

Question 55

In order to build and maintain customer loyalty and commitment, it is not crucial in remembering and addressing guests by name?

Question 56

One study described in the article examined a guests' affective state in relation to his or her satisfaction judgments. Which of the following was found as a result of the study?

A) Luxury hotel guests desire to feel "sophisticated"
B) Midscale lodging guests like to feel "welcome"
C) Economy hotel guests want a feeling of "comfort"
D) All of the above
E) Only a and b

Question 57

Addressing someone by name involves the successful completion of two tasks. Which of the following is not one of the two tasks?

A) Meeting the individual multiple times
B) Face recognition
C) Name recall
D) Finding something in common
E) Both a and d

Question 58

Men are more likely to visit a spa for weekly visits after business hours, while women will often visit spas during regular business hours?

Question 59

Research confirms that customer emotions play an integral role in driving customer satisfaction and loyalty?

Question 60

It is easier for one individual to remember a distinctive facial feature of a person of another race than it is for them to remember a distinctive facial feature of a person of their race?

Question 61

__________ spas are designed to provide a healing, beautifying or pampering experience in a short period of time.

A) Destination
B) Resort
C) Medical
D) Club
E) Day

Question 62

According to ISPA research, between 2002 and 2003, ______ percent of the national population over the age of 16 made one or more spa visits.

A) 5
B) 11
C) 16
D) 25
E) 35

Question 63

Between 1997 and 1999, the average spa revenue increased 40 percent annually?

Question 64

According to the authors, resort spas operate more profitably than do stand-alone day spas?

Question 65

Which of the following was not listed as one of the fastest growing therapies in 1997?

A) Sauna
B) Herbal medicines
C) Messages
D) Folk remedies.
E) Megavitamins

Question 66

Due to the rapid turnover of managers in the luxury hotel business, Holleigh does not believe that it is necessary to spend time and energy developing a supervisor into a leader?

Question 67

Spas were not added in resorts until the mid 1980's?

Question 68

According to the ISPA 2004 survey, _________ spas are the fastest growing spa segment with respect to number of locations.

A) Destination
B) Resort
C) Medical
D) Club
E) Day

Question 69

The results of the study indicated that operating a full-service spa facility creates a __________ difference in revenues for "the spa resort".

A) $2.5 million
B) $3.5 million
C) $10 million
D) $2.5 billion
E) $3.5 billion

Question 70

Which of the following is not a sub-segment of the spa industry?

A) Destination spas
B) Overnight spas
C) Day spas
D) Mineral springs
E) Club spas

Question 71

Traditionally, spas were perceived as amenities needed to attract guests to a given resort. In other words, as long as the spa center achieved a break-even point and did not lose money, the ability of spas to increase the room occupancy was sufficient to justify their existence?

Question 72

Which of the following is one of the various components one might find in a modern spa relating to services?

A) Complementary and alternative medicine into the main stream life styles.
B) Traditional western medical and eastern lifestyle/wellness practices.
C) A proactive approach to overall health and quality of one's life.
D) All of the above
E) Only a and b

Question 73

There is a weak correlation between high employee turnover and customer service training?

Question 74

Today, the spa experience is nothing but just a luxury commodity?

Question 75

Resort spas account for an impressive ___ percent of the total spa industry revenue of $11.2 billion.

A) 10
B) 20
C) 30
D) 41
E) 62

Question 76

Which of the following was NOT listed as one of the main reasons that spurred the development of the spa industry?

A) Individuals are getting older
B) There is more disposable income in families
C) Individuals are living more luxurious and healthier lifestyles
D) People are concerned with their personal appearance to remain youthful
E) Resorts started to add spas to their property in order to not be at a competitive disadvantage

Question 77

Within the leisure industries in 2003, revenues related to spas ranked number ______.

A) 1
B) 2
C) 3
D) 4
E) 5

Question 78

Once a spa goer has visited a spa, _____ out of ten respondents reported that they would return for a similar experience.

A) 3
B) 5
C) 7
D) 8
E) 9

Question 79

A key to Holleigh's success is organization and prioritizing?

Question 80

__________ spas are located on the grounds of vacation resorts where treatments for mind, body, and spirit are offered to complement other resort activities.

A) Destination
B) Resort
C) Medical
D) Club
E) Day