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Hospitality Management

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FBLA Hospitality Management study guide
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1. Which of the following is a hospitality business that focuses its efforts on providing shelter for travelers: a. Tour wholesaler c. Motel b. Airline d. Restaurant ANSWER: C Motel. Hospitality involves activities such as welcoming special guests and providing sleeping accommodations for people who are away from home. A motel is a hospitality business that provides this service. An airline provides a service that transports travelers to their desired destinations. A tour wholesaler plans and prepares packages for travelers; the packages include a combination of accommodations, transportation. entertainment. and meals. A restaurant sells food and beverages to travelers. 2. A primary advantage for a hotel that uses a functional organizational structure is that it usually results in a. lower employee turnover rates c. fewer revenue centers b. higher guest stay-over rates d. greater overall efficiency ANSWER: D Greater overall efficiency. To best serve its guests. a hotel is usually organized into different divisions that carry out similar or related tasks. For example. in many hotels, the rooms division is responsible for the tasks related to room occupancy, such as housekeeping, reservations, and front-desk activities. The food and beverage division is responsible for food service functions such as the on-site restaurant. banquets, and food delivery to the guests' rooms. By organizing the hotel into function-related divisions, employees can focus on specific activities, which result in greater overall efficiency and higher guest satisfaction. Guest stay-over is a hospitality industry term that refers to guests who do not check out of the hotel when expected and extend their stay at the facility. A hotel that has several divisions often has more revenue centers, which are the various ways that the facility generates sales. A hotel's organizational structure does not always affect employee turnover rates because employees leave their positions for a variety of reasons. 3. The primary reason that hotels balance daily posting transactions is to a. make sure that guests are mailed the correct invoice amount c. determine which guests will be departing on a specific day b. resolve discrepancies that relate to the guests' folios d. calculate the daily revenues generated by the food and beverage division ANSWER: B Resolve discrepancies that relate to the guests' folios. Posting is a term that describes adding charges to a guest's folio (bill) for goods and services s/he purchases from the hotel during his/her stay at the facility. Hotels review postings on a daily basis to make sure that all transactions are placed on the correct account. If there are discrepancies, the employees must solve the problems and correct the errors to balance the posting transactions. In most cases. the guests pay their bills when they check out of the hotel rather than have an invoice mailed to their home or business. Hotels determine which guests will be departing on a specific day by reviewing a daily departure report. Hotels do not balance daily posting transactions so they can calculate the daily revenues generated by the hotels' food and beverage divisions.
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1.Which of the following is a hospitality business that focuses its efforts on providing shelter for travelers:a.Tour wholesalerc.Motel

b.Airline d.Restaurant

ANSWER:CMotel. Hospitality involves activities such as welcoming special guests and providing sleeping accommodations for people who are away from home. A motel is a hospitality business that provides this service. An airline provides a service that transports travelers to their desired destinations. A tour wholesaler plans and prepares packages for travelers; the packages include a combination of accommodations, transportation. entertainment. and meals. A restaurant sells food and beverages to travelers.

2.A primary advantage for a hotel that uses a functional organizational structure is that it usually results ina.lower employee turnover ratesc.fewer revenue centers

b.higher guest stay-over ratesd.greater overall efficiency

ANSWER:DGreater overall efficiency. To best serve its guests. a hotel is usually organized into different divisions that carry out similar or related tasks. For example. in many hotels, the rooms division is responsible for the tasks related to room occupancy, such as housekeeping, reservations, and front-desk activities. The food and beverage division is responsible for food service functions such as the on-site restaurant. banquets, and food delivery to the guests' rooms. By organizing the hotel into function-related divisions, employees can focus on specific activities, which result in greater overall efficiency and higher guest satisfaction. Guest stay-over is a hospitality industry term that refers to guests who do not check out of the hotel when expected and extend their stay at the facility. A hotel that has several divisions often has more revenue centers, which are the various ways that the facility generates sales. A hotel's organizational structure does not always affect employee turnover rates because employees leave their positions for a variety of reasons.

3.The primary reason that hotels balance daily posting transactions is toa.make sure that guests are mailed the correct invoice amountc.determine which guests will be departing on a specific day

b.resolve discrepancies that relate to the guests' foliosd.calculate the daily revenues generated by the food and beverage division

ANSWER:BResolve discrepancies that relate to the guests' folios. Posting is a term that describes adding charges to a guest's folio (bill) for goods and services s/he purchases from the hotel during his/her stay at the facility. Hotels review postings on a daily basis to make sure that all transactions are placed on the correct account. If there are discrepancies, the employees must solve the problems and correct the errors to balance the posting transactions. In most cases. the guests pay their bills when they check out of the hotel rather than have an invoice mailed to their home or business. Hotels determine which guests will be departing on a specific day by reviewing a daily departure report. Hotels do not balance daily posting transactions so they can calculate the daily revenues generated by the hotels' food and beverage divisions.

4.A primary purpose for preparing a night audit is to verify the hotel'sa.property valuec.supply levels

b.accounts receivablesd.assets and revenue

ANSWER:BAccounts receivables. Accounts receivables are the hotel's incoming revenue. The night audit is the process of analyzing and settling a hotel's daily activities. Several types of information can be audited; however, the hotel must verify its accounts receivables on a daily basis because the hotel posts these monies to its guests' accounts. Because guests arrive and depart the hotel daily, it is vital that the hotel has accurate records of its accounts receivables. A night audit is not a tool that a hotel uses to verify its property value or its assets. Although the night auditor can generate reports about supply levels, small lodging facilities may not need the information on a daily basis.

5.A daily revenue report is balanced when the amounts charged to the guests' folios are equal to each hotel department's a.inventory valuec.daily income

b.accounts payabled.operating funds

ANSWER:CDaily income. A balanced revenue report means that the amount that a hotel posts (charges) to the guests' folios for a specific service is the same as the income for the department that provides the service. For example, if the report indicates that 12 guests ordered $450 worth of food from room service on Thursday, the hotel's room service department should have a record indicating the 12 transactions totaling $450 in revenue. Errors such as posting the wrong amount to a guest's folio will result in an unbalanced revenue report. If errors occur, hotel auditors must fix the error to balance the report. Accounts payable refers to the amount of money that the hotel spends. Inventory value is the costs of the hotel's supplies (e.g., linens, food, non-recyclables). Operating funds refer to the monies the hotel needs to run efficiently.

6.Front desk employees often maintain hotel logbooks so the next work shift can a.review activities and situations that require follow-upc.schedule room service and housekeeping personnel

b.track unauthorized data obtained from the night auditor's reportd.forecast quarterly occupancy ratios and walk-in arrivals

ANSWER:AReview activities and situations that require follow-up. The hotel logbook is used to record guests' requests and complaints, and activities that require follow-up. Before beginning their work shift, front desk employees should look at the logbook to become familiar with activities encountered by the previous work shift. By reviewing the logbook, the employees can follow up, and respond to the guests' needs in a more efficient manner. Logbooks are generally not used to track unauthorized data obtained from the night auditor's report, schedule room service and housekeeping personnel, or forecast quarterly occupancy ratios and walk-in arrivals.

7.Maintaining a daily walk-in reservation sheet helps a hotel to forecast a.short-term restaurant and bar salesc.long-term banquet and meeting room sales

b.room sales for guests who arrive without reservationsd.occupancy rates for guests who make last-minute reservations

ANSWER:BRoom sales for guests who arrive without reservations. A walk-in is a person who arrives at the hotel, but does not have a reservation that holds a room for him/her. Many hotels allocate some rooms to accommodate walk-in guests. To allocate the right amount of rooms for walk-in guests, hotels develop both short-and long-term forecasts. The hotels track walk-in guests by maintaining a daily walk-in record on a computer or on a han~written sheet. Hotels do not maintain daily walk-in reservation sheets to track restaurant, bar, banquet, or meeting room sales. Last minute reservations are often made via the telephone or the Internet, so these guests are not considered walk-in guests.

8.It is important for management to monitor all quality factors that affect hotel activities so it can ensure that the hotel isa.meeting the customers' expectationsc.creating a positive work environment

b.developing short-term goalsd.establishing credibility among its competitors

ANSWER:AMeeting the customers' expectations. Quality is the degree of excellence of a good or service. It is important for a hotel's management team to monitor all aspects of the hotel so it can maintain or exceed the quality level that its customers expect. If quality decreases, the hotel may lose customers to its competitors. Financial status, production processes, supplies, and personnel affect the quality of a hotel's product. A goal is a desired outcome. A hotel's quality is not monitored for the purpose of developing goals or establishing credibility with its competitors. A positive work environment can help the hotel meet its desired quality levels, but it is not the only reason that the hotel monitors all aspects of its activities.

9.Hospitality businesses are developing strategies to accommodate niche markets. Skydivers are an example of a group in a growing segment called the________marketa.adventure c.agritourism

b.environmental d.geotourism

ANSWER:AAdventure. The hospitality industry is developing ways to accommodate niche markets. Trends indicate that many niche markets are growing. Some of these markets include the baby boomers, health conscious people, and adventure travelers. Adventure travelers include people who enjoy nature and often enjoy taking risks. Adventure travelers enjoy activities such as skydiving, mountain biking, and race car driving. Geotourism (or environmental tourism) refers to a market that is interested in unique or threatened outdoor environments, such as the rainforest. Agriculture enthusiasts are members of a niche market called the agritourists and often visit working farms.

10.When a hotel employee encounters a local pizza delivery person who has an order for a guest, the best course of action for the employee to take is to a.ask the delivery person for picture identification to verify employmentc.advise the concierge that the delivery person is bringing the pizza to the guest's room

b.provide the delivery person with the guest's room numberd.contact the guest to advise him/her that the pizza has arrived

ANSWER:DContact the guest to advise him/her that the pizza has arrived. To protect a guest's right to privacy and security, hotel employees should never give anyone a guest's room number. Therefore, the best course of action for the employee to take is to call the guest's room and advise him/her that the delivery has arrived, and that the delivery person is waiting for payment. The guest should come to the lobby or front desk to complete the transaction with the delivery person. A concierge is a person who provides information and coordinates outside activities for guests (e.g., dinner reservations). Concierge service is not available at all hotels. Although it is possible to ask the pizza delivery person for picture identification to verify employment with the local pizza establishment, not every restaurant provides employee identification cards.

1.Upon placing a guest's valuables in a safe deposit box, a hotel employee shoulda.log the transaction on an occupancy report formc.provide the guest with a receipt and key

b.advise the guest about the check out time and policiesd.inform the guest about other hotel service options

ANSWER:CProvide the guest with a receipt and key. Guests place valuable items in a hotel safe deposit box as an additional security precaution. When a hotel employee places the items in the safe deposit box, the employee should provide the guest with a receipt that documents the transaction. If it is the hotel's policy, the employee should also provide the guest a key to the safe deposit box. The employee may log the transaction in the computer or on a manual form, but s/he does not record the information on an occupancy report form. The guest is usually informed about hotel seNce options, check out times, and policies when the guest is checking into the hotel.

2.To lower their risk of inhaling the harmful fumes of cleaning chemicals, hotel housekeeping employees might wear protectivea.glovesc.nets

b.masksd.mouth guards

ANSWER:BMasks. A ventilation mask, which is placed over the mouth and nose, hinders the risk of lung irritation or damage that might be caused by harmful cleaning chemicals. Gloves protect the hands. Nets and mouth guards do not protect a hotel's housekeeping employees from inhaling vapors

3.A hotel follows governmental regulations that are developed to protect the general population's a.taxation earningsc.health and safety

b.trade and licensing agreementsd.advertising practices

ANSWER:CHealth and safety. Hotels that do not maintain a safe and clean environment increase the risk of injuries and illness to guests and employees. Governments develop regulations for hospitality businesses (e.g., hotels) to follow in order to protect the general public from injury, disease, and unethical business activities. The general population does not engage in advertising practices or trade and licensing agreements, businesses and governments do. Businesses and individuals do not beam profits through taxation

4.Many of the regulations that control how the ownership of goods is transferred from one hospitality business to another are intended to prevent a.trade restraintsc.property liability

b.economic competitiond.shipping damages

ANSWER:ATrade restraints. Various regulations that control how the ownership of goods is transferred are intended to prevent trade restraints. One type of restraint of trade is horizontal and involves hospitality businesses on the same level trying to form monopolies or drive competitors out of business. Another type of restraint of trade is vertical and involves the various hospitality businesses in a chain of distribution forming agreements that also discourage competition. For example, regulations prevent one business from developing exclusive arrangements with another business or setting prices solely for the purpose of restraining trade and making it difficult, or impossible, for others to compete fairly. Regulations that control how the ownership of goods is transferred are not intended to prevent economic competition, property liability, or shipping damages

5.Which of the following types of messages presents evaluative information:a.Explanatory c.Simple

b.Analytic d.Complex

ANSWER:BAnalytic. Informational messages communicate knowledge, facts, or data to the message receiver. Analytic messages specifically communicate information that the message sender or someone else has evaluated, compiled, or interpreted which give the message meaning. For example, if a manager writes a memo stating that a project is over budget and backs up the statement with numerical data and examples, the manager is providing evaluative information. Explanatory messages simply state information in a neutral and objective way. The simplicity or complexity of an evaluative message depends on the message topic.

6.When preparing a hotel reservation to send to a guest, it should always include the guest's a.arrival and departure datesc.birth date and mailing address

b.e-mail address and federal identification numberd.name and credit rating

ANSWER:AArrival and departure dates. A confirmation is documentation that verifies the important points about a guest's reservation. A confirmation should always include the guest's arrival and departure dates. The guest's name, mailing address, and often an e-mail address are included on the confirmation. The guest's credit rating, birth date, and federal identification number are not necessary to include in the confirmation.

7.To transfer a telephone call to the specific guest, a hotel operator must determine the guest's name and _______ number.a.roomc.security

b.faxd.PIN

ANSWER:ARoom. To transfer a telephone call to a specific guest, the hotel operator must know the guest's room number. If the caller does not have the guest's room number, the operator must find out the guest's name, so s/he can retrieve the room number from the hotel computer or tracking system. A fax is a machine that transmits written documents via telephone lines. Although it is necessary to know the correct number when faxing information, it is not necessarily needed when transferring telephone calls. A security number is a general term used to describe a code that allows specific users to access certain data or items. A PIN number is another term to describe a security code. Security and PIN numbers are not usually necessary to transfer telephone calls

8.Which of the following types of business proposals is designed for the purpose of obtaining limited hotel resources:a.Submissivec.Reactive

b.Reflectived.Competitive

ANSWER:DCompetitive. A proposal is an informational document that presents the reader with a call to action. When two or more hospitality businesses present the same reader with a proposal suggesting ways to solve a problem, to obtain information, or to take a specific course of action, it is a competitive proposal. A bid for a hotel project is an example of a competitive proposal. Reflective, reactive, and submissive are not types of business proposals.

9.What is the best action for a hotel employee to take if a fax arrives for a guest who does not answer his/her telephone? a.Place the fax document in the guest's folioc.Contact the housekeeping floor manager to deliver the fax

b.Activate the message light in the guest's roomd.Leave a written message underneath the guest's room door

ANSWER:BActivate the message light in the guest's room. To advise a guest that a fax has arrived, hotel employees should activate the message light in the guest's room. The flashing light is often located on the room telephone and alerts the guest to contact the front desk or to retrieve a telephone message from voice mail. The guest's folio is usually stored on computer, so the fax cannot be placed with the folio. The front desk staff or the bell staff would most likely deliver documents to the guest's room rather than the housekeeping staff. The guest may not see the message if it is left on the floor underneath the room door.

10.Which of the following is an example of the concept of place in the lodging industry:a.Weekend packages c.Room features and benefits

b.Central reservation system d.Charges, fees, and taxes

ANSWER:BCentral reservation system. Place is the marketing element that focuses on considerations in getting a selected product in the right place at the right time. In the lodging industry, the place concept includes the physical location of the lodging facility and the site where the guest makes the hotel reservation. Reservations are made through travel agents, on the Internet, and by calling the hotel's central reservation system. A weekend package is an example of a sales promotion. Room features and benefits are elements of the product. Charges, fees, and taxes are pricing considerations.

1.Items that hotel buffet servers should monitor and refill at a banquet beverage table area.cups, cream, and spoonsc.tea, knives, and lemons

b.sugar, plates, and coffeed.coffee, tea, and forks

ANSWER:ACups. cream, and spoons. To provide good service and to make sure items are available for guests. banquet servers must constantly monitor and refill buffet food and beverage units. Beverage tables are often in a different location of the banquet facility than the food tables. Buffet servers must monitor and replenish items such as cups, cup saucers, cream, spoons, sugar, coffee, tea, and lemon slices for the tea. Food buffet tables have knives, plates. and forks

2.The most important reason for a hotel restaurant to store clean scoops, peelers, knives, and ladles in appropriate storage units is to reduce thea.risk of contaminationc.need to sanitize the items after use

b.need for employees to wash their handsd.risk of improper use by employees

ANSWER:ARisk of contamination. Contamination occurs when items (e.g., kitchen utensils) come in contact with other items that are unsanitary or contain bacteria. Contamination can occur in many ways including poor washing habits and improper handling, which are sanitation or cleanliness issues. Because hotel restaurants provide food items to many people, it is possible for large groups of people to become ill when unsanitary kitchen utensils come in contact with food. Many of these illnesses are contagious. By storing clean kitchen utensils in appropriate storage units, the restaurant reduces the risk of contamination. Keeping kitchen utensils in appropriate storage units does not reduce the need for employees to wash their hands. the need to sanitize the utensils after employees use them, or the risk of improper use by employees. Employees can misuse utensils regardless of the way the hotel stores them.

3.What types of information might an employee need to refill in the hotel lobby's brochure rack? a.Tourist attractions and local restaurant menusc.Area maps and direct mail publications

b.Annual reports and area mapsd.News releases and tourist attractions

ANSWER:ATourist attractions and local restaurant menus. Hotels often keep brochure racks in high-traffic areas (e.g., lobby) of the facilities. The brochure racks hold promotional material that informs guests about local businesses and attractions. Hotel employees are often responsible for refilling the brochure rack with the promotional materials. Some types of publications that hotel employees place in the racks include restaurant menus. brochures about entertainment and tourist attractions. and maps of the area. Annual reports, direct mail, and news releases are not typical publications that hotel employees place in brochure racks.

4.Which of the following hotel employees usually arranges the delivery of an ironing board to a guest's room:a.Front-desk associate c.Maintenance employee

b.Group sales assistant d.Reservation clerk

ANSWER:AFront-desk associate. A hotel's front desk is the primary communication link between the hotel's guests and the hotel's various departments. Guests contact the front-desk associates to solve problems, ask questions, and to obtain special items such as baby cribs, roll-away beds, and ironing boards. A group sales assistant works with convention, banquet, and tour groups. Maintenance employees perform tasks to maintain the hotel facility. Maintenance activities might include repairing leaky faucets or replacing damaged floor tiles. The reservation clerk is the person who takes the guests' reservations.

5.Which of the following locking systems has reduced the need for hotels to track guest key inventories:a.Electronic c.Cordless

b.Mechanical d.Fail-safe

ANSWER:AElectronic. Many lodging facilities use an electronic locking system. Electronic locks involve the use of a computer system that generates special codes to ensure security. To enter his/her room, the guest places a plastic key card in the locking mechanism, which scans the computer-generated code. Since the cards are disposable, there is no need to maintain key inventories. The next guest who is assigned to a room receives a disposable key card with a different code. Mechanical locks are traditional locking systems, which require standard keys for entry. Guests need to return the keys to the front desk upon departure because they are reused. Cordless and fail-safe are not common terms that the hospitality industry uses to describe locking systems.

6.Which of the following is an example of a food requisition procedure that a resort's food and beverage division might use:a.Employees must log cleaning product withdrawals on a central housekeeping department form.c.Poultry and eggs must meet specific quality, weight, and edible yield criteria.

b.All perishable food items must be checked for freshness upon delivery from the vendor.d.The head chef must sign the appropriate form when employees take food items from inventory.

ANSWER:DThe head chef must sign the appropriate form when employees take food items from inventory. To minimize costs and maximize profits, a large resort needs to control its food and beverage distribution efforts. To control distribution, requisition procedures provide step-by-step guidelines for issuing food and beverage products from the hotel restaurant's inventory. A requisition form is a document that a hotel restaurant employee uses to request items from inventory. Often, a supervisor (e.g. head chef) must sign the form to approve the request. Checking goods upon delivery is a receiving procedure. Product specification data contain information about poultry and egg criteria or standards. Cleaning products are not food.

7.A vending company buying products from several businesses and putting the products in hotel vending machines for customers to buy is an example of a(n)a.product wholesaler.c.independent agent.

b.distribution channel.d.service business.

ANSWER:BDistribution channel. Distribution channels are the paths, or routes, that goods or services take from the producer to the ultimate consumer or industrial user. A vending company buying products from several businesses and selling them through vending machines to hotel guests is an example of a direct channel of distribution. The vending company is buying the products from manufacturers and selling them directly to customers. The vending company is actually a retailer, but it is not a service business because it sells a tangible product. Wholesalers are intermediaries who help to move goods between producers and retailers by buying goods from producers and selling them to retailers. Independent agents are intermediaries who assist in the sale and/or promotion of goods and services but do not take title to them.

8.One reason hospitality businesses evaluate their channel members on a regular basis is to determine if it is necessary toa.reschedule shipments.c.make adjustments.

b.increase maintenance.d.eliminate customers.

ANSWER:CMake adjustments. One reason hospitality businesses evaluate their channel members on a regular basis is to review performance to determine if the members are meeting established standards. In some situations, businesses may find that channel members are not performing as expected. If this happens, businesses usually make adjustments which might include providing training, or terminating members if they continue to perform in an unacceptable manner. It is important to evaluate channel members because members who are not performing well might cost the business money in terms of lost sales or dissatisfied customers. Businesses do not evaluate channel members to determine if it is necessary to increase maintenance. reschedule shipments, or eliminate customers.

9.Which of the following is a primary factor that a lodging facility considers when establishing order points for items such as guest bath soap and shampoo:a.Production and labor costsc.Front-desk recommendations

b.Guests' brand preferencesd.Guests' consumption rates

ANSWER:DGuests' consumption rates. Hotels inventory non-recyclable products for guests'. roans and often include items such as tissues, trashcan liners. shampoo, and bath soap. It is important to keep enough of these items on hand so the hotel can provide good service to its guests. Hotels often use previous usage information or consumption rates to determine the amounts of non-recyclable products that they need to best service the guests. For example. the bath soap consumption rate is usually higher in the winter months than in the summer months at a ski lodge. Therefore, the hotel should have more soap in stock to cover high occupancy times. During slow occupancy periods, the hotel may keep less soap on hand to save costs related to inventory and storage. Brand preferences, front-desk recommendations, and production and labor costs are not primary considerations for establishing order points for non--recyclable items.

10.When a hotel supply business hires more laborers, outputs often increase in smaller increments and then eventually decrease, because _______ factors exist.a.ethical c.fixed

b.ecological d.transportation

ANSWER:CFixed. The law of diminishing returns is an economic principle that states that after a certain point. hiring additional employees will result in a decrease in the overall level of production. Most often, available resources are finite, which means that there are fixed amounts of resources available to produce goods and services (e.g .. equipment). Overall productivity reaches its peak when there are a certain number of employees using all of the available resources to do the work. When there are too many laborers and not enough fixed resources. outputs decrease. Ecological, ethical, and transportation are not primary factors that affect a company in terms of outputs and productivity, or the law of diminishing returns.

1.Which of the following is a factor that the housekeeping department considers when developing a work schedule for the next week:a.Room rates c.Yield statistics

b.Occupancy forecasts d.Operating ratios

ANSWER:BOccupancy forecasts. An occupancy forecast is a prediction of room sales within a specific time period. The housekeeping department looks at future room sales estimates to make sure that it doesn't schedule too few or too many staff members during that period. For example, a hotel that is expecting a large convention group needs more housekeeping staff to work than if the hotel is not expecting any large groups. A room rate is the price that a lodging facility charges its guests for accommodations. Yield statistics provide managers with information about the front-office employees' selling efforts. An operating ratio is a formula that hotels use to measure various components of their overall operations.

2.The Imperial Hotel is developing a profile for a convention group that is holding a three-day conference on the property. To best serve the group, the hotel needs to determine the group'sa.financial needsc.primary competitors

b.reason for meetingd.alternative plan

ANSWER:BReason for meeting. To best serve a group, a hotel needs to know what the group needs, so that it can conduct a successful conference or meeting. For example, one group might need a large room to set up for an industry trade show, while another group might need several small function rooms for training and educational purposes. Therefore, it is important for the hotel to know the reason for the meeting in order to provide the group with the goods and services it needs. A hotel does not need to know the group's financial needs: however, the hotel needs to know the group's financial status to make sure it can pay for the services that the hotel provides the group. Unless the group has security concerns, the hotel does not usually need to know the group's primary competitors. The alternative plan is too broad or vague to determine if the hotel needs the information.

3.Which of the following is a demographic characteristic that hotel chains often use to identify market segments:a.Type of household c.Location of population

b.Style of living d.Level of personality

ANSWER:AType of household. Many businesses identify market segments based on demographics, which are the physical and social characteristics of the population. One demographic characteristic is the type of household. Today, the traditional household of two parents and their children is in decline. The average household size is decreasing and there are many households of only one or two people. Also, households might include unrelated people, one parent and children, blended families, grandparents and grandchildren, etc. By identifying these various market segments, hotel chains will be able to understand their different wants and needs. Style of living and personality are psychographic characteristics. Location of population is a geographic characteristic.

4.A primary factor that hoteliers should consider when evaluating a potential lodging market is the a.turnover reachc.competition

b.interest ratesd.intermediaries

ANSWER:CCompetition. Competition refers to the rivalry between two or more businesses to attract scarce customer dollars. When evaluating the feasibility or anticipated success of a particular lodging market, hoteliers should analyze their competitors' strengths, weaknesses, and market share. An interest rate is the percentage figure used in calculating inta-est charges for loans. Although the interest rate is an important consideration when considering financial needs, it is not necessarily a primary factor when evaluating a potential lodging market. Turnover is a term that is used to describe the number of times a business (hotel) sells inventory in a particular period of time. Reach is a quantitative measure of the number of different people in the target audience who are exposed at least once to an advertising message. Turnover reach is not a term that is widely used in the hospitality industry when evaluating a potential lodging market. Intermediaries are channel members operating between the producer and the consumer, or industrial user, to help in the movement of goods and services. When evaluating a potential lodging market, the intermediaries are not usually a primary factor that hoteliers consider.

5.Which of the following is a marketing activity that hospitality businesses consider when conducting a competitive analysis:a.Risk management c.Purchasing

b.Promotion d.Management research

ANSWER:BPromotion. Promotion is a marketing activity that refers to the various types of communications that marketers use to inform, persuade, or remind customers of their products. When hospitality businesses conduct a competitive analysis, they consider their competitors' promotional activities because promotional activities have an impact on a business's success in attracting customers and selling products. As a result of analyzing competitors' promotional activities, a business might decide to use similar activities because they have proven to be effective. Risk management and purchasing are business activities rather than marketing activities. Management research is not a marketing activity.

6.Why is it important for hotel chains to assess global trends and opportunities?a.Foreign trade creates monopoliesc.Governments in other countries hold elections

b.Hotel chains hire employees from other countriesd.Worldwide economic conditions affect marketers

ANSWER:DWorldwide economic conditions affect marketers. A global economy exists today. That means that hotel chains in one part of the world are affected by economic conditions in other parts of the world. To be prepared for changes in worldwide economic conditions, chains need to assess global trends and opportunities. For example. a recession in Europe will have an impact on hotel chains in other countries that operate hotels in Europe. It is not important for chains to assess global trends and opportunities because they hire employees from other countries, or because governments in other countries hold elections. Foreign trade usually does not create monopolies.

7.Which of the following is an internal factor that a hotel supply business should consider when conducting a SWOT analysis:a.Amount of competition c.Location of target market

b.Type of industry d.Rate of productivity

ANSWER:DRate of productivity. A hotel supply business conducts a SWOT analysis to identify its internal strengths and weaknesses as well as the external threats and opportunities. An important factor to consider is the business's rate of productivity. Depending on how the rate of productivity compares to other businesses in the same industry, productivity may be a strength or a weakness. A high rate of productivity is a strength, while a mediocre or low rate of productivity is a weakness. It is important for a business to consider its rate of productivity because high productivity may help the business to take advantage of external opportunities. If the business finds that its productivity is low, it can take steps to correct the problem. The type of industry, the location of the target market, and the amount of competition are external factors that a business might consider when conducting a SWOT analysis.

8.Which of the following is an infrequent factor that can affect a hotel's reservation forecast:a.Percentage of no-show guestsc.Blocked rooms for groups

b.Facility renovation or remodeling d.Percentage of walk-in guests

ANSWER:BFacility renovation or remodeling. Hotels forecast reservations so they can figure out how many rooms will be available for sale during a certain time period. This information helps hotel managers to plan employees' work schedules and to order the supplies that they will need to run the hotel efficiently. Hotel managers use a variety of historical data to come up with their forecasts. Typically, they review previous data about the number of guests who did not show up for their stays (no-shows) and the number of guests who walked in without reservations (walk-ins). Hotel managers also consider reservations that have already been made, such as blocked rooms for groups and individual reservations. On a less frequent level, the hotel will renovate or remodel portions of the facility, which often affects room availability.

9.What does a bed and breakfast need to consider when developing a marketing budget?a.Expense associated with offering credit c.Value of spending money on advertising

b.Forecasts of future sales figures d.Cost of performing marketing activities

ANSWER:DCost of performing marketing activities. Bed and breakfasts need to develop budgets to set aside the funds that will be needed to perform marketing activities. Before they can develop budgets, they need to determine the cost of performing those marketing activities. For example, bed and breakfasts need to consider wages paid to employees and the cost of buying supplies. Once a bed and breakfast calculates all the costs involved, it can develop a budget to fund the marketing activity. It is not effective to develop marketing activities without setting a budget to pay for the activities. Bed and breakfasts do not consider forecasts of future sales fig ures, value of spending money on advertising, or the expense associated with offering credit when developing a marketing budget.

10.When setting marketing objectives, what should hotels include to make the objectives more effective? a.Reason for developing the objectivec.Methods of carrying out the objective

b.Time period to accomplish the objective d.Anticipated customer response to the objective

ANSWER:BTime period to accomplish the objective. An effective marketing objective should include a specific time period. For example, achieving a 5% increase in sales this year over last year is an effective objective. The hotel knows that it wants to accomplish this within one year. Now, it can develop strategies and tactics to achieve the objective. If the objective is vague and doesn't set a time limit, the hotel does not have a clear goal. Then, it may take years to achieve the objective because the hotel is not focused on accomplishing it within a specific time period. When setting marketing objectives, hotels do not include the reason for developing the objective, the methods of carrying out the objective, or the anticipated customer response to the objective.

1.What type of marketing information do many hospitality businesses collect in order to measure the level of customer satisfaction?a.Number and type of complaintsc.Quantity and value of sales

b.Variety of advertisements d.Performance of salespeople

ANSWER:ANumber and type of complaints. Hospitality businesses try to measure the level of customer satisfaction in order to identify problem areas and make adjustments in their marketing efforts. One type of information that businesses collect involves the number and type of complaints that they receive from customers. This type of information helps businesses decide if customers are satisfied or if they have important complaints. If many customers complain'about the same issue, a business knows that there is a significant problem and that adjustments need to be made. If businesses ignore complaints, they run the risk of losing customers. Businesses do not collect information about advertising, sales figures, and the performance of salespeople to measure the level of customer satisfaction.

2.Motel owners can evaluate the effectiveness of their marketing activities by comparing the original allocation of resources with thea.fixed costsc.return on investment

b.rate of depreciationd.operating expenses

ANSWER:CReturn on investment. The return on investment (ROI) is the profit a motel gains (e.g., sales revenue) from the implementation of a specific activity (e.g., advertisement) in relation to the initial investment of time, money, and personnel to carry out the activity. Depreciation refers to the reduction in value of goods occurring over time. Fixed costs are business costs that are not affected by changes in sales volume. Operating expenses are all of the expenses involved in running a motel.

3.When conducting a marketing audit, it is important to assess a hotel's marketing objectives, strategies, activities, and a.credit standingc.personal incentives

b.human resourcesd.fixed assets

ANSWER:BHuman resources. A marketing audit is an evaluation of a hotel's marketing activities. In addition to analyzing the hotel's marketing objectives, strategies, and activities, the audit should assess the capacity in which marketing personnel perform necessary tasks. Credit is the arrangement by which businesses or individuals can purchase a product now and pay later. A hotel's credit standing reveals a hotel's ability to pay its financial debts. A personal incentive is a reward that motivates an individual to engage in a specific behavior. Fixed assets are items of value that a hotel owns (e.g., building) that are not expected to change. Credit standing, personal incentives (e.g., financial bonus), and fixed assets are important factors that affect the financial well-being of a hotel, but are not necessarily the primary considerations in a marketing audit.

4.When a guest asks a hotel employee about a lost item, the employee should first request that the guest provide a(n) a.return shipping addressc.telephone number

b.item descriptiond.confirmation code

ANSWER:BItem description. Since hotels can have several items in the lost and found department, the employee should first request a detailed description of the item from the guest. It is also helpful for the employee to find out approximately when and where the item was lost. Once the employee has an item description and the approximate time and place of the loss, the employee can try to locate the item. The employee can try to find the item by either checking a lost item list (log), or the lost item storage area. Since employees cannot determine if an item is in the hotel's lost and found department until an item description has been provided, the guest's shipping address, telephone number, or confirmation code are not types of information that the employee requests first.

5.While checking in, Mr. Jones tells the hotel's front desk clerk that he is a retired airline pilot. Which of the following local sites or events might the clerk recommend for Mr. Jones to visit:a.Aviation museum c.Music festival

b.Art exhibit d.Historical battlefield

ANSWER:AAviation museum. Hotel employees can provide information to their guests about attractions and sites near the property. As a hotel employee talks with a guest, the employee can find out what interests the guest and recommend that the guest visit certain attractions in the area. Although it is possible to tell the guest about an art exhibit, music festival, or historical battlefield, a retired pilot might be most interested in touring an aviation museum.

6.Which of the following hotel departments would coordinate travel arrangements for a guest:a.Concierge c.Security

b.Reservations d.Sales

ANSWER:AConcierge. Large hotels often provide concierge services for guests. The concierge department is responsible for arranging off-site services for guests. The concierge department makes restaurant reservations for guests, arranges sightseeing tours for guests, and arranges transportation for guests. Reservation staff members make room reservations for guests. The security department is responsible for hotel safety issues. The sales department is usually responsible for selling hotel, meeting, and banquet space to groups.

7.Two hotel guests ask the concierge to sign them up for a tour of a local landmark. What information should the concierge request from the guests? a.Tour confirmation numberc.Home telephone number

b.Name and e-mail addressd.Tour date and time preferences

ANSWER:DTour date and time preferences. Large hotels often provide concierge services for guests. As part of his/her duties, the concierge arranges transportation for guests, makes restaurant reservations for guests, and arranges sightseeing tours for guests. To arrange a tour, the concierge needs to get some basic information from the guests such as their names, contact information, and when (e.g., time, date) they want to take the tour. The concierge does not necessarily need the guests' e-mail address or home telephone number. A better way to contact a guest about tour details might be a cell phone number or a guest room telephone number. The concierge might provide tour confirmation numbers to the guests.

8.Which of the following situations would most likely require a front-desk employee to process a room change for a hotel guest: a.The guest needs a television remote.c.The guest requests room service

b.The ceiling is leaking in the guest's roomd.The room is clean and smoke-free

ANSWER:BThe ceiling is leaking in the guest's room. Because they pay hard-earned money for their hotel rooms, guests expect to obtain adequate lodging accommodations. When a room does not meet a guest's minimal standards, slhe may request a room change. A room that has a leaky ceiling can be messy and may cause damage to the guest's belongings. In response, the hotel staff should try to accommodate the guest's request for a room change. Some guest complaints can be resolved without processing a room change. Many hotels keep extra items, such as universal television remote controls, on hand when existing items are missing or broken. Room service is food delivery to a guest's room. Guests do not request room changes because the room is clean. A guest who smokes, however, might request a room change if slhe is assigned to stay in a non-smoking room.

9.A positive and supportive attitude is helpful to a manager when s/he is coaching a hotel employee for the purpose ofa.obtaining a pay increasec.seeking additional benefits

b.improving the employee's job performanced.evaluating the employee's job application

ANSWER:BImproving the employee's job performance. A coach is a person (e.g., hotel manager) who enables other people to reach their true potential by helping them to overcome the barriers that are keeping them from doing something they want to achieve. A manager who coaches a hotel employee who is having a problem performing a task or activity at work will usually have greater success improving the employee's job performance if s/he is positive and supportive, and shows a sincere desire to help the employee. The primary purpose of coaching in the workplace is not to obtain a pay increase or to seek additional benefits. Employers evaluate job applications before hiring employees.

1.The Sand Dunes Beach Resort restaurant generated $2,266.25 in sales and served 175 guests during its Wednesday morning breakfast period. What was the average check amount per guest during the breakfast period?a.$12.95 c.$11.65

b.$10.50 d.$13.55

ANSWER:A$12.95. To determine the average check amount during a specific time period, the Sand Dunes Beach Resort's restaurant divides the total sales amount by the number of guests served ($2,266.25 175 = $12.95).

2.Which part of the business plan describes a hotel chain's pricing policies:a.Segment analysisc.Situational analysis

b.Financial plan d.Marketing plan

ANSWER:DMarketing plan. A business plan is a set of procedures or strategies that outlines how a hotel chain plans to take an idea and turn it into an organized effort to produce and/or distribute goods and services. The business plan consists of three basic components-a business description and situational analysis, a marketing plan, and a financial plan. Pricing policies are discussed in the marketing plan. Segment analysis is part of the business description and situational analysis.

3.To help their guests solve problems with their personal computers efficiently, some hotels are providing the guests with a.virtual assistantsc.corporate training

b.technical manualsd.cyber simulations

ANSWER:AVirtual assistants. Hotels often accommodate business guests by offering technological tools such as Internet access. Technology can be complicated and guests often have problems accessing the technology that they need when they need it. To help guests troubleshoot their computer problems, some hotels have virtual assistants. The virtual assistants may be available on site or may be reached by telephone. To help solve a computer problem quickly and efficiently, a hotel would not provide the customer with technical manuals, corporate training, or cyber simulations.

4.Which of the following is a characteristic of a hotel's call accounting system:a.Direct telephone connection using a calling cardc.Automated telephone call placement and posting

b.Operator-assisted person-to-person telephone callsd.Operator-assisted collect telephone calls

ANSWER:CAutomated telephone call placement and posting. The call accounting system is a computerized, automated way for large lodging facilities to manage guest telephone calls. The software has the ability to place, price, and post the telephone call to the guest's folio. Operator-assisted calls are not fully. automated because a third party is needed to connect the two parties via telephone. A calling card is a prepaid card that the guest uses to acquire telephone service. Because the guest has already purchased the calling card, pricing and posting the telephone call to the guest's folio is not necessary.

5.When a hospitality company considers how a new trade agreement among several countries may impact its business activities, it is evaluating a(n)a.political c.cultural

b.social d.universal

ANSWER:APolitical. An environmental scan is an analysis of external forces that influence a hospitality business's success. By examining political, economic, socio-cultural, and technological factors that affect the business, it can take steps to ward off the threats and to take advantage of the opportunities based on the information that the scan provides. Political factors that a business might examine include changes in regulation and the laws that govern how the business operates. Information about demographics or lifestyles falls into the socio-cultural category. A universal factor affects all people and countries.

6.After mopping the bathroom floor, place one bar of soap and one bottle of shampoo on the right side of the bathroom sink. This is an example of a hotel ________standard.a.conservation c.performance

b.productivity d.delivery

ANSWER:CPerformance. A standard is a specification or statement that is used as a basis for comparing or judging goods and services. Hotel housekeeping performance standards provide employees with guidelines about cleaning the facility's rooms to maintain consistent and appropriate quality levels. A standard that indicates that one bar of soap and one bottle of shampoo should be placed on the right side of the bathroom sink is a performance standard because it indicates what should be done, when it should be done, and where it should be placed each time a room is cleaned. Productivity standards measure the quantity of work rather than the quality of work. Conservation and delivery are not common terms that describe housekeeping standards in the hotel industry.

7.Based on the room status report, the first rooms that a hotel housekeeping manager would assign for the staff to clean are coded asa.out-of-orderc.checkout

b.vacant and readyd.stay-over

ANSWER:CCheckout. Housekeeping employees usually clean the rooms in which guests have already checked out of the hotel. Rooms having the vacant and ready code are currently available for sale and do not need cleaning. Rooms with an out-of-order code are the rooms that are not for sale because they need maintenance. Stay-over rooms are occupied rooms in which the guests are not leaving or checking out. Rooms with a stay-over code are usually cleaned after the rooms with a checkout code.

8.To help create a safe environment in the workplace, each hotel employee shoulda.report all problems to the hotel's president or CEOc.be aware of things or situations that create hazardous conditions

b.make sure that s/he develops a list of safety procedures to followd.read the hotel's training manual thoroughly

ANSWER:CBe aware of things or situations that create hazardous conditions. One way to prevent hazardous conditions is to be aware of the things that create these types of situations. For example, if someone leaves an item in a hallway, it can cause another person to trip, fall, and become injured. By being aware, and perhaps moving a small object or notifying someone to move a heavy object, a single hotel employee can prevent injuries from occurring. It is not usually necessary for each employee to develop his/her own safety procedures. Hotels often develop and document these types of procedures, including the contact person to which safety concerns are directed. This person is not always the president or CEO of the hotel. A training manual is a tool that provides guidelines to complete a task or activity. A departmental training manual does not always address general safety issues that apply to the entire hotel.

9.Jack develops menu items and supervises the food preparation activities for the Paradise Resort's restaurant. Which of the following titles best describes Jack's position:a.Senior Housekeeping Supervisor c.Beverage Director

b.Executive Chef d.Controller

ANSWER:BExecutive Chef. Upscale restaurants are often an important revenue center for large vacation resorts. The resort restaurant often hires an executive chef to develop a menu and new recipes. The chef also manages all of the food preparation activities for the restaurant. The housekeeping supervisor manages housekeeping staff and directs the housekeeping activities (e.g., cleaning sleeping rooms). The beverage director usually oversees the resort's beverage needs and bar activities, while the controller manages the resort's accounting and financial activities.

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10.Lisa is opening a new bed and breakfast and might benefit from joining a hospitality trade association because she cana.network with others who have expertise in the industryc.obtain credit to purchase equipment for the business

b.earn a college degree and become a certified hotelierd.discuss personal business with her colleagues

ANSWER:ANetwork with others who have expertise in the industry. A trade association is a group of persons in the same industry or geographic area who form a society to solve their common problems. Because Lisa is a business owner, she might join a hospitality trade association to network with others who work in the hospitality industry. By networking with others who have expertise in the hospitality industry, Lisa has an opportunity to get ideas that will help her business grow. She may also get advice about how to solve problems and deal with difficult issues that occur in the hospitality industry. Although some trade associations provide certification, they are not a means to earn a college degree. A trade association might help Lisa locate financial sources, but it would not extend credit to her so she can purchase equipment. As a business owner, the primary reason Lisa should join a trade association is to discuss professional business with colleagues rather than personal issues.

1.Employees who work in the front end of a hotel's operation usually havea.food-service experiencec.the most contact with the guests

b.extensive maintenance trainingd.control of the facility's financial transactions

ANSWER:CThe most contact with the guests. Hotel operations fall into two primary groups-frant-end and back-end. Front-end employees have the most direct interaction with the hotel's guests. The front-desk staff, bell staff, restaurant wait staff, and banquet and sales staff are employees who interact with the guests on a regular basis in a variety of ways. Back-end employees (e.g., housekeeping, food preparers) are very important to the hotel's operation, but have less contact with the guests. Although some front-end employees have extensive maintenance training, food-service experience, and control of the facility's financial transactions, not all front-end employees conduct these tasks in relation to their positions.

2.Because of regular changes in the supply of and demand for hotel rooms, prices for rooms are oftena.imprecisec.unimportant

b.consistentd.negotiable

ANSWER:DNegotiable. The hospitality industry experiences fluctuations in demand for hotel accommodations. Supply and demand fluctuations occur for many reasons. For exemple, seasonal factors affect how resorts price their rooms. They often charge higher prices during typical vacation times because more people are traveling and need sleeping accommodations. Room prices are also affected by the economy. When the economy is good, more people take vacations and more organizations hold off-site business meetings. This creates a higher demand, which lowers the availability of hotel rooms. When people are traveling less, there is a decrease in demand and an increase in room availability. When this occurs, guests can often negotiate lower prices for the guest rooms. The hotels are willing to negotiate so that rooms do not go unoccupied, which is a financial loss for the hotels. Hotel room prices are not consistent, unimportant, or imprecise as a result of changes in supply and demand.

3.During the process of generating product ideas, hotel supply businesses often bring together groups of employees toa.organize productionc.review marketing techniques

b.screen the possibilitiesd.arrange distribution

ANSWER:BScreen the possibilities. Hotel supply businesses often generate many ideas, but not all of them are realistic or possible. To find the best idea. businesses often bring together groups of employees to screen the many product possibilities. The employees analyze the ideas and consider whether they are appropriate for the business and the business's current product mix. At this point, some ideas will be rejected as too risky or not profitable. Once ideas are accepted and finalized, groups of employees might organize production. review marketing techniques. and arrange distribution.

4.Interviewing guests and conducting surveys to find out what guests might want in the future are processes that hotels create in order toa.generate advertisingc.develop questionnaires

b.collect informationd.recognize opportunities

ANSWER:DRecognize opportunities. Hotels often use a variety of processes to understand guests' buying behavior and find out what they might want in the future. Interviewing guests and conducting surveys are processes that many hotels use. The intent is to obtain information that will help hotels recognize opportunities. Hotels need ongoing information to be able to respond to changes in the marketplace and take advantage of new opportunities. Hotels do not use these processes simply to collect information, but to use the information to recognize opportunities. l:Iotels may develop and send out questionnaires to find out what guests might want in the future. Hotels do not find out what guests might want in the future to generate advertising.

5.When sleeping rooms consistently do not meet hotel housekeeping standards, what often occurs?a.Guest complaints increasec.Conference bookings increase

b.Occupancy rates improved.Employee satisfaction rates improve

ANSWER:AGuest complaints increase. Standards are specifications or statements that are used as a basis for comparing or judging goods or services. Hotels set standards in order to provide consistency in facility cleanliness. If housekeeping employees do not execute the hotel's cleanliness standards, the hotel will most likely experience complaints from guests who feel that the rooms are not clean. When hotels consistently do not meet housekeeping standards, the hotel is most likely to experience a reduction in room occupancy rates, conference bookings. and employee satisfaction.

6.Why do hotel supply businesses often send questionnaires to customers or meet with customers to obtain feedback?a.To analyze the competitionc.To evaluate performance

b.To develop a databased.To organize information

ANSWER:CTo evaluate performance. Hotel supply businesses evaluate the customer experience to find out if customers are satisfied with the business and if the business is meeting the customers' expectations. To do that, businesses often send questionnaires to customers or meet with customers to obtain feedback. The information they obtain from customers helps businesses evaluate how they are doing as far as satisfying customers. If the feedback indicates problems, businesses can make changes to provide a more satisfactory customer experience. Businesses do not send questionnaires to customers or meet with customers to develop a database. analyze the competition, or organize information.

7.Which of the following is a distinct service that a resort, which is located near a large amusement park, might provide its guests:a.Shuttlec.Room

b.Courierd.Dining

ANSWER:AShuttle. A resort that is located near a large amusement park might provide shuttle service to transport its guests to the amusement park. Resort guests who arrive by airplane often do not have automobiles to drive to the resort. Therefore, a resort that provides shuttle service to a nearby attraction is meeting a segment of its guests' needs. Courier service usually offers same- or next-day delivery of documents and small parcels; courier service is often used by businesses. Room service is the delivery of food and beverage to a guest's sleeping room or meeting room. Dining service refers to the overall food and beverage operation, which includes the resort's restaurant and banquet facilities. While room service and dining service are not available at all lodging facilities, food and beverage service is usually a standard service rather than a distinct service that large resorts offer.

8.Which of the following elements are the most important placement considerations when hotel employees set up the function room for a motivational speaker's presentation to a large group:a.Cake table c.Handheld microphone

b.Dance floor d.Buffet table

ANSWER:CHandheld microphone. Guests or clients book hotel function rooms for a variety of reasons. The size of the group and the purpose of the meeting influence how the room is set up. So that a large group can hear the presentation, the most important consider.ation is placing the microphone where the audience can best hear the speaker. Dance floors and cake tables are often important considerations for weddings . and other parties. Groups often dine (e.g. buffets) and hold presentations in the same room, however this does not always occur.

9.Which of the following is an example of a hospitality company extending its product line:a.The United Hotel implements wireless technology in each of its 1,000 units. c.MNO Corporation owns a chain of upscale hotels and opens a chain of economy motels.

b.The Reliance Inn in Centerville is remodeling its swimming pool and adding a saunad.The Liberty Conference Center hires additional sales staff to accommodate sales increases.

ANSWER:CMNO Corporation owns a chain of upscale hotels and opens a chain of economy motels. A product line is a group of related product items. A product line extension occurs when the company adds a new product to the existing product line. A corporation that owns a chain of upscale hotels and then opens a chain of economy motels is extending its product line by providing similar products that have different features and benefits. An inn that remodels a swimming pool and adds a sauna is making improvements to the property rather than extending the product line. Implementing wireless technology is an example of an amenity rather than a product line extension. Hiring additional staff is a human resource function.

10.When selecting specific product mix strategies, a resort gift shop must consider its resources and a.objectivesc.staff

b.applicationsd.credit

ANSWER:AObjectives. Objectives are goals or desired outcomes. Product mix is the particular assortment of goods and services that a hotel gift shop offers in order to meet its market's needs and its company's goals. The strategies are the plans of action for achieving its product mix goals. To initiate appropriate strategies, the gift shop must know its goals and also consider its resources (e.g., time, money, personnel). Application is defined as how something functions. Staff refers to a company's personnel. Staff is considered a company resource. Credit is the arrangement by which businesses or individuals can purchase nON and pay later.

1.What is a primary factor that a hotel chain considers when deciding the types of services it plans to offer its customers?a.Interest ratesc.Fixed expenses

b.Revenue benefitsd.Inventory costs

ANSWER:BRevenue benefits. Hotel chains consider many factors when determining the services they will offer their customers. In addition to considering their customers' needs and wants, chains consider the amount of money the chain will make by offering the service. Interest rates are the percentage figures used in calculating interest charges. Fixed expe nses are the business costs that are not affected by changes in sales volume. Inventory costs are the monies spent for goods intended for resale. Interest rates. fixed expenses, and inventory costs are not generally considered primary factors that hotel chains evaluate when determining services options for their customers.

2.The Fit and Lively Health Spa, a resort that is located in a remote mountain region, is most likely to plan which of the following activities for its guests: a.Scuba divingc.Broadway play

b.Nature hikesd.Pastry and food festival

ANSWER:BNature hikes. Hospitality businesses often plan activities to enhance their guests' or clients' experience during their stay at the facility. A health spa is a lodging facility that caters to people who make their health a priority. A health spa located in a mountainous region would most likely ofter nature hikes as one of the activities that they provide their guests. A lodging facility that is located near a beach destination might plan a scuba diving outing for its guests. A Broadway play is a theatrical production that is usually performed in urban areas rather than remote areas. A spa that focuses on healthy lifestyles would not usually plan activities that involve the guests attending a pastry and food festival.

3.To best accommodate business guests, a large hotel might provide which of the following special amenities:a.Easy Internet access c.Courtesy toiletries

b.DVD rental d.In-room refrigerators

ANSWER:AEasy Internet access. Business guests stay at hotels because they have a very specific reason for their stay-to conduct business activities on the behalf of their employer. To help its guests do their jobs, a hotel might provide technological tools such as fax machines, voice mail for room telephones, and easy Internet access. Although DVD rental, courtesy toiletries, and in-room refrigerators are nice amenities. they are not designed specifically to help business guests conduct job activities.

4.Hotel supply businesses develop specific positioning strategies for their products because they want toa.increase employee productivity.c.create a particular image.

b.determine advertising needs.d.appeal to unknown markets.

ANSWER:CCreate a particular image. Product positioning strategies refer to the activities a hotel supply business uses to create an image or impression of a product in the minds of consumers. Positioning strategies are not developed to determine advertising needs, increase employee productivity, or appeal to unknown markets.

5.The Regal Hotel sends a 20% discount coupon to its previous guests to use if they book a room during a specific time period. This is an example of a(n)a.opt-in e-mailc.sales promotion

b.institutional advertisementd.trade-in allowance

ANSWER:CSales promotion. Sales promotion refers to the activities other than advertising, personal selling, and publicity that stimulate customer purchases. Coupons and samples are examples of sales promotion. Institutional advertising refers to any paid nonpersonal message that aims to create a certain image in the eyes of cons umers. Opt-in e-mail refers to electronic promotional messages that are sent with a recipient's permission and allow the recipient to request removal from the subscriber list at any time. A trade-in allowance is a price reduction offered for selling back an old model of the product that the customer is purchasing.

6.Which of the following technological elements has the most potential to promote brand awareness for a hotel:a.Personal network c.Navigation toolbar

b.Domain name d.Spam filter

ANSWER:BDomain name. A domain name is a hotel's Internet web address. When establishing an Internet web site, it is necessary for a hotel to create a web address so that Internet users can access the web site. If the hotel incorporates its registered "doing business as" name within the domain name, it has the potential to promote brand awareness and reinforce consumer recognition. For example, to make it easy for Internet surfers to learn about Marriott properties, the company uses the domain name, www.marriott.com. Network is a general term, which can mean connecting with individuals who might help accomplish personal career and professional goals. A personal network refers to an individual's own contacts or networking system. A toolbar is a computer software tool that allows users to command the computer to carry out certain actions. A spam filter is a computer software program that is designed to recognize spam messages and keep them from entering an e-mail inbox.

7.To accommodate a client's tropical island party theme, a hotel banquet facility might display a.colorful beach umbrellas and palm trees.c.baseball bats and posters of modern athletes

b.photos and mementos of famous movie stars.d.lilac flowers, pastel-colored flags, and birdhouses

ANSWER:AColorful beach umbrellas and palm trees. Some clients hold theme parties in hotel banquet facilities and ask for specific items to create a specific atmosphere to reflect the theme. Beach umbrellas and palm trees are items that a hotel banquet facility might display for a tropical island theme party. Photos and mementos of famous movie stars reflect a theatrical theme. Baseball bats and posters of modern athletes are appropriate display items for a sport theme. Lilac flowers, pastel~olored flags, and birdhouses are display items for a spring or Mother's Day theme.

8.When a large conference and resort facility prepares a sales packet for a potential group, it is important to include items that provide written information anda.technology requirementsc.confirmation forms

b.pie charts.d.graphic elements

ANSWER:DGraphic elements. When developing a sales packet, a large conference and resort facility should include several components such as tour and activity brochures, menus, price lists, meeting room and floor plans, available audiovisual accommodations, and photographs of the facility. These items contain written information and graphic (visual) elements. A pie chart is a form of a graphic element that also includes text. A confirmation form is a document that summarizes a group's logistics and needs for a meeting or activity and is not part of a sales packet. A sales packet might include information about the technology that is available, but it usually wouldn't list technology requirements.

9.What component of a hotel's promotional plan provides detailed information about economic trends? a.Executive summary c.Overview of objectives

b.Situation analysis d.Budget justification

ANSWER:BSituation analysis. A situation analysis is a determination of a hotel's current business situation and the direction in which the business is headed. The analysis includes information regarding the internal and external factors currently affecting the hotel. Information regarding economic, demographic, and industry trends are often included in the situation analysis. The executive summary is the introductory element of the promotional plan that highlights key points of the document's content. The objectives are the goals of the promotional plan. The budget justification provides the rationale for funding promotional activities.

10.When is the best time for a front-desk hotel employee to recommend hospitality services, such as dining and exercise facilities, to a hotel guest:a.After posting chargesc.During check-in

b.After posting creditsd.During check-out

ANSWER:CDuring check-in. Hotel employees should inform guests of the hotel's services and amenities during the check-in process. Guests who are not aware that the hotel offers certain services will not use them, which can affect the guests' experience during their stay and can affect the hotel's sales. For example, a guest who does not realize that the hotel has an on-site restaurant will not dine there. As a result, the hotel's food and beverage division loses potential revenue. Advising guests about services during checkout is not beneficial to the guest or to the hotel. Posting is a term that describes adding or subtracting charges to a guest's bill.

1.A hotel salesperson is preparing to give a meeting planner a tour of the facility. Before the tour begins, the salesperson shoulda.have the restaurant manager prepare samples of each banquet menu item.c.ask the housekeeping staff to clean occupied rooms.

b.make sure that the lobby and meeting rooms are neat and clean.d.ask groups that are currently using the meeting space to vacate the rooms.

ANSWER:BMake sure that the lobby and meeting rooms are neat and clean. A hotel salesperson should walk through the hotel before giving a tour to a potential client. If the main areas are cluttered, need vacuumed, or need dusted, the salesperson can arrange to have the areas cleaned so that the facility makes a favorable impression on the prospect. Conducting a walk-through does not require the salesperson to have the restaurant manager prepijre samples of each banquet menu item. The salesperson does not request that the housekeeping staff clean occupied rooms. The salesperson should show a prospect an unoccupied room. The salesperson should try to schedule the tour when other groups are not using the meeting rooms.

2.When processing the arrival of tour group members, hotel employees must consider that the tour group members a.must pay for their room stay with a credit card during the checkout process.c.have prepaid their hotel stay through the tour company.

b.must pay all tour package charges that appear on the master account during checkout.d.need to charge their personal expenses to the group's master account.

ANSWER:CHave prepaid their hotel stay through the tour company. Tour group members prepay for their lodging and meals and submit their payment to the company that organizes the tour. The tour company negotiates and pays the hotel and other vendors for the tour group's activities. The guests do not pay the hotel. Hotel employees must know that a guest is with a tour group, so that the hotel charges are applied appropriately. Employees should notify group members what types of charges will be posted to their personal accounts. Personal expenses might include telephone calls, movie rentals, and meals that not covered in the tour package. These charges do not appear on the master account.

3.When preparing for a hotel's daily guest arrivals, it is important for front-desk employees toa.provide housekeeping with a room revenue report.c.determine if any guests have requested early check-in.

b.notify the hotel restaurant about anticipated group arrivals.d.allocate meeting space for tour groups.

ANSWER:CDetermine if any guests have requested early check-in. Most hotels have policies regarding guest checkin times. To give the hotel enough time to clean rooms, check-in times often begin late in the afternoon. Sometimes, guests want to check in early. Hotels that can accommodate early check-in requests might decide to make an exception regarding its check-in policy as a gesture of goodwill to the guest. So hotel employees can efficiently process daily arrivals during peak check-in hours, they often pre-assign rooms to guests. By knowing which guests have requested early check-in, hotel employees can assign rooms to early arrivals first. The hotel restaurant is usually made aware of hotel groups before their arrival day, so it can plan and have enough food available for the guests. Housekeeping does not need a room revenue report. A tour group that requests a meeting room does not affect hotel employees who are blocking sleeping rooms for daily arrivals.

4.Before blocking certain rooms for daily guest arrivals, a hotel employee musta.check the guests' credit ratings.c.identify the available rooms.

b.request the monthly occupancy report.d.verify the guests' exact check-in times.

ANSWER:CIdentify the available rooms. So hotel employees can efficiently process daily arrivals during peak checkin hours, they often pre-assign rooms to guests. This process is often called blocking the rooms. To assign rooms, the hotel employees must identify which rooms are available for sale. Requesting monthly occupancy reports and checking the guests' credit ratings do not aid a hotel employee when slhe is blocking rooms for daily arrivals. Although knowing guest arrival times might help an employee when s/he pre-assigns rooms, it is not always possible to verify all of the guests' exact check-in times.

5.To verify that a hotel's rooms division and its food and beverage division can accommodate a group's needs, the hotel salesperson should first a.hold a departmental sales meeting.c.ask the rooms division about housekeeping schedules.

b.check the hotel's function book.d.consult with the hotel's concierge.

ANSWER:BCheck the hotel's function book. It is important for a hotel's rooms division and its food and beverage division to communicate selling activities so the hotel does not experience overbooking problems. The salesperson should always check the function log to determine what other activities are occurring on the property. The function book is a central location that records hotel banquet (food and beverage service) activities and meeting room bookings. To make sure that the hotel can meet the group's needs, salespeople and other hotel employees need to check the function book to see if the hotel has other groups arriving at the same time, and to determine how many sleeping rooms, if needed, are available for sale. Holding a departmental sales meeting and consulting with the hotel's concierge are not activities that the salesperson should first conduct. The rooms division usually schedules housekeeping staff by considering the anticipated occupancies.

6.A manager can quickly determine a hotel coffee shop's total daily sales by reviewing information that is recorded on thea.purchasing systems monitorc.guests' credit card receipts

b.weekly inventory reportd.transaction journal printer

ANSWER:DTransaction journal printer. Journal printers store and print all daily sales transactions. A hotel coffee shop manager can obtain sales data quickly from a journal printer. A weekly inventory report does not necessarily provide information about daily sales transactions. Hotel coffee shop guests often pay for their purchases with cash or by adding it to their hotel folio. Therefore, credit card receipts will not provide all of the information that the manager needs to determine daily sales totals. A purchasing systems monitor is not a term that the hospitality industry commonly uses to describe a tool for tracking food and beverage sales.

7.The success of a hotel supply business often depends on how effectively sales managers are able to a.review sales expensesc.establish sales quotas

b.lead the sales team. d.oversee a bonus plan

ANSWER:BLead the sales team. The success of a hotel supply business often depends on how effectively sales managers are able to lead the sales team, because the goal of businesses is to generate sufficient income to continue operating and earn a profit. Effective sales management is essential for businesses to achieve this goal. If sales managers are able to lead effectively by communicating goals to the sales team and motivating the team to achieve those goals, the business will succeed. If not, then the business might fail because sales goals are not met. Sales managers help a business to succeed by controlling sales expenses rather than reviewing them. Sales managers often establish sales quotas, but must lead the sales team in reaching quotas in order to help the business succeed. The success of a business does not depend on how effectively sales managers oversee a bonus plan.

8.Before guest check-in time, hotels often pre-assign rooms to guests with reservations in order to a.up-sell the expensive rooms to the walk-in guestsc.accommodate the guests' special requests

b.avoid confusion during peak departure hoursd.eliminate the risk of guest complaints

ANSWER:CAccommodate the guests' special requests. Front-desk employees review reports that indicate rooms that will be available for guests who are arriving later in the day. Based on the preferences the guests provide when they place their reservations, the employees try to match guests with the rooms that will accommodate their special requests. For example, if a guest wants a beachfront room with a balcony, the employees will try to locate an available room that meets the criteria, and pre-assign the room to the guest. Pre-assigning rooms often makes the check-in process more efficient during peak guest arrival times, rather than peak departure times. Although pre-assigning rooms may reduce the risk of guest complaints, the process cannot eliminate the risk of complaints. The purpose in pre-assigning rooms for guests with reservations is to accommodate them, not to up-sell rooms to the walk-in guests.

9.Determine if the following statement is true or false: Hotel employees should verify an arriving guest's identification when s/he is paying with cash.a.False. a person's right to privacy is always compromised when asking for identity verification.c.False, verification is only necessary when the guest is paying with a paper check.

b.True, international security laws require verification of identityd.True, verifying the guest's identity can reduce the risk of theft of the hotel's property.

ANSWER:DTrue, verifying the guest's identity can reduce the risk of theft of the hotel's property. Hotel employees should always verify a guest's identity when s/he checks into the facility. Forms of acceptable identification are driver's licenses and passports b~ause these items include photographs of the guests. A hotel employee should verify a guest's identification when paying with a check, credit card, or cash. By accepting a cash payment without any record of the guest's name, the hotel has little recourse in pursuing compensation for room damages caused by a negligent guest, or if a room theft occurs. International security laws do not require that guests must provide hotel employees with valid forms of identification. While some people may argue that a person's right to privacy is compromised when s/he is asked to verify his/her identity, the hotel is really protecting the guest from identity theft.

10.Which of the following charges does a hotel usually post to a convention guest's personal folio:a.Banquet room set up c.Continental breakfast

b.Meeting space rental d.Room service

ANSWER:DRoom service. During the check-in process, hotel employees should advise a convention guest about his/her payment obligations and options. A hotel restaurant that delivers food to a guest's room is providing room service. This is a service for which the guest pays in addition to the room charges. Room service and movie rentals are examples of items that the hotel posts to the guest's account for payment upon the guesfs departure. Hotels post meeting space rental and banquet room set up charges to the convention organization's master account. A hotel does not post charges for a continental breakfast to the guest's personal account because it is included in the room charge.

Motel or hotel rooms located at ground level and adjacent to the parking lot are known asA)adjacent rooms

B)adjoining rooms

C)connecting rooms

D)drive-up rooms

The two major classifications of resorts areA)all-inclusive and standard

B)all-inclusive and limited-service

C)recreational and standard

D)recreational and all-inclusive

Each housekeeper at the hotel carries with her a key that opens all the rooms in his or her assigned section. The key is known asA)a skeleton key

B)a section master key

C)a housekeepers key

D)the managers key

A hotel pricing plan that includes two meals with the cost of the room is calledA)the American plan

B)the modified American plan

C)the European plan

D)the modified European plan

When an item needs to be repaired in a guest room the housekeeper fills out aA)preventive maintenance order

B)section housekeepers report

C)maintenance work order

D)folio

An example of an amenity isA)clean linens

B)the front desk

C)a robe provided in every room

D)a lighted parking lot

An la carte menuA)features several items offered for a single price

B)has items listed separately

C)is based on the concept of special of the day

D)always features desserts served la mode

Students traveling in Europe often stay in low-cost lodging facilities known asA)hotels

B)motels

C)country inns

D)hostels

A preset number of rooms held in reserve by a hotel to prevent overbooking is known as theA)room block

B)room rack

C)group rate

D)reserve block

When government workers travel, they often stay at budget hotels in order to avoid spending more than they are allowed each day, a sum known as theA)government rate

B)rack rate

C)per diem

D)allowance

D A B B C C B D A C


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