Room sales are a major source of revenue for hotels, often surpassing the combined revenue from food, beverage, and telephone services. For budget hotels, room sales can indeed account for nearly all of their revenue. However, room sales are typically the most profitable department, not the second-most, which makes statement B incorrect and leads to E being the correct choice.

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Room Sales

Question 7

Multiple Choice

Room sales:

A) Account for almost 100% of revenue for budget hotel properties
B) Are the industry's second-most profitable department
C) Produce more revenue than food, beverage, and telephone departments combined
D) Account for most of the industry's revenue
E) All of the above are true except B

Correct Answer: