Question 1

A strong national currency enables businesses (think hotels) of one nation to gain a foothold in the businesses of nations whose currencies are weak.

Accepted Answer

A strong national currency makes the goods and services of a nation more expensive for foreigners to buy, which can make it difficult for businesses to gain a foothold in foreign markets.

Question 2

The famous hotelman, Ellsworth Statler, said "Location, location, location,"meaning that real estate is a critical element of the hotel business.

Accepted Answer

The quote "Location, location, location" is attributed to Ellsworth Statler, a famous hotelman, and it emphasizes the importance of location in the hotel business.

Question 3

The most popular hotel rating guides in the United States are the Mobil Guide, the Michelin Guide and the AH&LA Guide to Hotels.

Accepted Answer

The Michelin Guide does not rate hotels in the United States; it is primarily known for rating restaurants. The Mobil Guide, now known as the Forbes Travel Guide, and the American Automobile Association (AAA) are more commonly referenced for hotel ratings in the U.S. The AH&LA (American Hotel & Lodging Association) does not publish a guide for rating hotels.

Question 4

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

Accepted Answer

The average daily rate (ADR) is calculated by dividing the total rooms revenue by the number of rooms sold, which in this case is $24,000 / 240 = $100.

Question 5

Legal definition and regulations by the U.S. Bureau of the Census require properties of 500 rooms or more to be called Hotels, those of 50 rooms or less to be called Motels, and those in between to be called Motor Inns or Motor Hotels.

Accepted Answer

The U.S. Bureau of the Census does not define properties based on the number of rooms they have. The distinction between hotels, motels, motor inns, or motor hotels is not strictly based on room count but rather on the services offered, location, and other factors.

Question 6

Which of the following terms is out-of-place?

Accepted Answer

The terms American plan, Modified American plan, European plan, and Continental plan all refer to types of hotel meal plans or packages. The "Bed and Breakfast (B&B)" term, however, refers to a specific type of lodging that offers overnight accommodation and breakfast, but it is not a meal plan like the others.

Question 7

The smallest degree of double occupancy would most likely be in:

Accepted Answer

Business hotels typically cater to individual travelers on business, leading to a higher likelihood of single occupancy compared to other types of accommodations that might attract couples, families, or groups.

Question 8

Calculate RevPar for the following hotel. The hotel had 300 rooms available for sale last night. The hotel sold 200 rooms and had gross rooms revenue of $36,000. Calculate RevPar:

Accepted Answer

RevPar (Revenue per Available Room) is calculated by dividing the total room revenue by the total number of available rooms. In this case, $36,000 / 300 = $120.00.

Question 9

The important Occupancy Ratio is computed:

Accepted Answer

The Occupancy Ratio is calculated by dividing the Number of Rooms Occupied by the Number of Rooms Available. This ratio indicates the percentage of available rooms that are occupied at a given time.

Question 10

Which type hotel is NOT recognized as a current classification?

Accepted Answer

The answer of Which type hotel is NOT recognized as...

Question 11

This question requires two brief statements:Part A: Describe the business cycle that dictates the economic ups and downs of the hotel industry.Part B: At what stage of the cycle is the industry currently in? How do you know that?

Accepted Answer

The answer of This question requires two brief statements:Part A:...

Question 12

Hotels control labor costs by using call-in staff: Employees work only when the business is there; housekeeping is one such department.

Accepted Answer

Hotels often use call-in staff or on-call scheduling to adjust labor based on demand, particularly in departments like housekeeping, to control labor costs effectively.

Question 13

Hoteliers value their properties on a per room basis; speaking, for example, of $150,000 per room.

Accepted Answer

Hoteliers often value their properties on a per room basis to assess the economic value or investment potential of a hotel, making it easier to compare with other properties by standardizing the value metric.

Question 14

AAA, American Automobile Association, has a contract from the U.S. Department of Commerce to rate and rank hotels in the 50 states as a means of assuring quality standards to international guests visiting the country.

Accepted Answer

The AAA (American Automobile Association) does not have a contract from the U.S. Department of Commerce for rating hotels. Instead, AAA independently rates hotels and restaurants based on their own inspection and approval standards to assist travelers.

Question 15

European hotels that have a "first-class"rating by the World Tourism Organization are the best the country has to offer.

Accepted Answer

The "first-class" rating by the World Tourism Organization is not a universal standard for the best hotels in a country; hotel ratings can vary by country and are often determined by different organizations or systems.

Question 16

If a resort includes all meals, tips, food and beverage in one room-rate quote, it is said to be a megaresort.

Accepted Answer

A resort that includes all meals, tips, food, and beverage in one room-rate quote is said to be an all-inclusive resort, not a megaresort. Megaresorts are large-scale resort complexes offering a wide array of amenities and facilities.

Question 17

Breakfast is the meal most often taken in the hotel by registered guests.

Accepted Answer

Breakfast is typically included in many hotel accommodations and is the most convenient meal for guests to take on-site before starting their day, making it the most common meal consumed by registered guests in hotels.

Question 18

Geography is to the resort, as commerce is to the transient hotel and population is to the residential hotel.

Accepted Answer

Geography influences the location and appeal of a resort, commerce drives the need for transient hotels for business travelers, and population density or demographics can determine the demand for residential hotels.

Question 19

Because occupancy reflects both supply and demand it measures the economic health of the individual hotel and, indeed, of the entire industry.

Accepted Answer

Occupancy rates are a key indicator of demand for hotel rooms relative to the supply. High occupancy rates can indicate strong demand, potentially signaling good economic health for both the individual hotel and the broader hospitality industry. Conversely, low occupancy rates might suggest weaker demand, possibly indicating economic challenges for the sector.

Question 20

So few countries of the world use governmental rating systems (the U.S.A.'s use is an exception) that travelers are best advised to use ADR as the best measure of class.

Accepted Answer

Many countries around the world use governmental or industry-standard rating systems for hotels, not just the USA. ADR (Average Daily Rate) is a financial metric used to calculate the average revenue earned from rented rooms, not a measure of class or quality.

Quiz 1: The Traditional Hotel Industry