Question 1

Which of the following is a possible form of hotel ownership?
A) Corporation
B) Joint Venture
C) Partnership
D) Family-owned
E) All of the above

Accepted Answer

Hotels can be owned in various forms including corporations, joint ventures, partnerships, and family-owned businesses. Each of these ownership structures has its own set of advantages and challenges, and the choice of structure depends on factors such as the size of the hotel, investment requirements, and management preferences.

Question 2

Guests (at a full-service hotel) who seek to buy tickets to the opera might inquire of the:
A) Resident manager
B) Rooms manager
C) Steward, not stewart
D) Concierge
E) All of the above except D

Accepted Answer

The concierge at a full-service hotel is typically responsible for assisting guests with various personal services, such as booking tickets to events like the opera.

Question 3

Compute the:Percentage of occupancyPercentage of rooms out of orderThe average daily rateThe room size in square meters (approximate estimate)
GIVEN: Square footage of average room 325
Number of rooms in the hotel 1,200
Number of guests in the hotel 980
Number of occupied rooms today 810
Number of Rooms OOO 10
Room Income $121,500
Percentage of Double Occupancy 33.3

Accepted Answer

The answer of Compute the:Percentage of occupancyPercentage of rooms out...

Question 4

Explain the differences between:Deluxe Hotels and Economy HotelsType of Hotels and Class of Hotels

Accepted Answer

The answer of Explain the differences between:Deluxe Hotels and Economy...

Question 5

Unlike the economy as a whole, the hotel industry does not go through cycles, which is what keeps it economically vibrant and profitable.

Accepted Answer

The hotel industry, like the broader economy, goes through cycles of boom and bust, influenced by factors such as economic conditions, travel trends, and consumer spending habits. These cycles affect occupancy rates, pricing, and profitability.

Question 6

Boutique hotels differ from one another because they are quirky and funky; that's why a chain (with a chain one assumes standardization) of boutique hotels is difficult for some to comprehend.

Accepted Answer

Boutique hotels are known for their unique, individual character and emphasis on design, service, and atmosphere, which makes standardization across a chain challenging to achieve while maintaining their distinctive qualities.

Question 7

U.S. hotel chains appeared in foreign countries when the currencies of those countries were weak; but the reverse happens when the U.S. dollar sinks.

Accepted Answer

U.S. hotel chains often expand internationally to take advantage of weaker foreign currencies, which makes investment more cost-effective. Conversely, when the U.S. dollar is weak, foreign investors find it cheaper to invest in the U.S., including in the hospitality sector, leading to increased foreign investment in U.S. properties.

Question 8

"Location, location, location"can be re-interpreted as: "Geography is to the resort, as population is to the residential hotel, and location is to the commercial hotel."

Accepted Answer

The phrase "Location, location, location" emphasizes the importance of geographical placement for various types of properties, suggesting that for each type (resort, residential hotel, commercial hotel), the key factor (geography, population, location) is crucial for its success.

Question 9

Hotels primarily sell services of rooms, food and beverage; that's why other departmental sales such as laundry or in-room films are referred to as the minor departments.

Accepted Answer

Hotels primarily generate revenue through the sale of rooms, food, and beverage services, which are considered their major departments. Other services like laundry or in-room films are additional offerings that contribute to revenue but are not the primary focus, hence referred to as minor departments.

Question 10

Unlike other retail businesses, hotels have the identity of their customers, and that allows them to defer payment until after the services have been rendered, even if that is several days later.

Accepted Answer

Hotels typically require identification at check-in and have guests' credit card information on file, allowing them to securely defer payment until checkout after services have been rendered.

Question 11

Hotel managers encourage late charges, which gives them an excuse to send marketing letters as follow ups to the guest's visits.

Accepted Answer

Hotel managers typically focus on providing a positive guest experience to encourage repeat business and positive reviews, rather than using late charges as an excuse for follow-up marketing.

Question 12

Reservations are desirable because they provide the hotel with the exact day and time the guest will arrive and depart.

Accepted Answer

The answer of Reservations are desirable because they provide the...

Question 13

Guests can be confidant that overseas hotels that are rated "First-class"are, in fact, the industry's very best.

Accepted Answer

The term "First-class" is a subjective rating that can vary significantly between different countries, regions, and rating systems. It does not universally guarantee that a hotel is the industry's very best.

Question 14

Hotel identification is not absolute: A commercial hotel, for example, may service permanent (residential) guests as well as tourists.

Accepted Answer

Many hotels, especially larger ones, offer both short-term accommodations for tourists and longer-term accommodations for residents, making their identification not strictly limited to serving tourists alone.

Question 15

The "complete meeting package"offered by conference centers is a close relative to the "all-inclusive rate"gaining popularity in Caribbean resorts.

Accepted Answer

The "complete meeting package" typically includes not only the meeting space but also food and beverage, basic audio-visual equipment, and often accommodations, similar to how "all-inclusive rates" at Caribbean resorts bundle accommodations, meals, beverages, and sometimes activities into one price.

Question 16

Tour operators pay the hotel only for service actually used by tour customers, evidenced usually by colored coupons that these guests use to "pay"for services included in the package.

Accepted Answer

Tour operators often use a voucher or coupon system where guests present these to the hotel as proof of their entitlement to the services included in their package. The hotel then charges the tour operator based on the services actually used, as evidenced by these coupons.

Question 17

The Web has brought unexpected profitability to travel agencies which are flourishing now as never before.

Accepted Answer

The Web has actually led to a decline in traditional travel agencies due to the rise of online booking platforms and services, which allow travelers to book flights, accommodations, and other travel services directly.

Question 18

Airline crews are much sought after by hotels because they represent both a basic occupancy and a high average daily rate (ADR).

Accepted Answer

Airline crews typically represent a basic occupancy for hotels but are often associated with lower average daily rates (ADR) due to negotiated contracts between airlines and hotels for bulk bookings.

Question 19

Since it makes little difference in collections and since it saves substantial payroll costs, hotel managers should eliminate the traditional 3-day billing period in favor of the more customary 30-day period.

Accepted Answer

The statement contains a flawed assumption that a 30-day billing period is more customary than a 3-day period for hotels, which is not typically the case. Hotels usually prefer shorter billing cycles to improve cash flow and reduce credit risk.

Question 20

Throwing away the keys to the hotels' front doors is a symbolic gesture to indicate that hotels never close, which is part of the common law definition of a hotel.

Accepted Answer

The act of throwing away the keys to a hotel's front doors symbolizes that hotels are always open, reflecting the traditional expectation that hotels provide lodging to travelers at any time, which is part of their operational essence and has been recognized in various legal and industry definitions.

Quiz 15: Understanding Billing and Financial Operations in the Hospitality Industry

Which of the following is a possible form of hotel ownership?

Guests (at a full-service hotel) who seek to buy tickets to the opera might inquire of the: