Check-in Check-Out Managing Hotel Operations, 9E Gary K. Vallen Test Bank.pdf

Type:

Test Bank

Check-in Check-Out Managing Resource: Hotel Operations Edition:

9th Edition

Author(s):

Gary K. Vallen Jerome J. Vallen

For exam and test prep, contact excellentessaywriters@gmail.com

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False 1

Hotels control labor costs by using call­in staff: Employees work only when the business is there.

Housekeeping is one such department.

True False

2

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

True False

3

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.

True False

4

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

True False

5

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

True False

6

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

True False

.

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

True False

8

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

True False

9

So few countries of the world use governmental rating systems (the United States is an exception) that travelers are advised to use ADR as the best measure of class.

True False

10

The plan of the conference center, CMP, is similar to the Caribbean's all­inclusive plan, and both borrow from the old­fashion American Plan.

True False

11

Classifying a hotel by its class is far more accurate than classifying it by, say, its location.

True False

.

12

The hotel industry is countercyclical; that is, it improves when the general economy falls and declines when the general economy booms.

True False

13

"Mom­and­Pops" and the highway motels that they once operated are a historical note, replaced by franchised/chain names; but the individual properties 2/5

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might still be owned individually.

True False 14

A budget hotel might have a 1:1 employee­to­guest ratio, while a casino hotel would be even better, say 0.05 employee to each room.

True False

15

Innkeeping is a cyclical industry that goes from highly profitable peaks to very difficult troughs.

True False

16

RevPar is the product of ADR (say, $80.00) multiplied by occupancy (say, 80%).

True False

.

17

RevPar measures revenue relative to the total room inventory; ADR measures revenue relative to the number of rooms sold.

True False

18

RevPar is closely watched because it reflects management's overall ability: bringing in business and holding down expenses.

True False

19

Once a hotel achieves its break­even point, profits accumulate rapidly because fixed expenses and many semi­fixed expenses have been met.

True False 3/5

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Occupancy measures quantity and ADR measures quality.

True False

21

The number of rooms available is known to the individual hotel executive but only estimated by those measuring larger units, such as the regional or national occupancy.

True False

22

There are approximately 250,000 hotels and about 25,000,000 hotel rooms in the United States, so the average hotel is about 250 rooms in size. That's just about the right size.

True False

23

Unlike most other industries, hotelkeeping is not subject to the ups and downs of economic cycles.

True False

24

The word hôtel, meaning "large house," comes from the French and is a relatively modern term considering the long history of innkeeping.

True False

25

A hotel must be evaluated as a piece of real estate as well as by its operations as an ongoing business.

True False

26 .

The percentage of occupancy is a gauge of the industry's (and the individual hotel's) economic health.

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True False

.

27

RevPar (Revenue Per Available Room), an old industry standby, is quite different from REVPAR, which was introduced at about the turn of the century.

True False

28

Geography is important to the resort hotel, population to the residential hotel, and businesses to the commercial hotel.

True False

29

Because hotels have large fixed costs (interest on debt payments, licenses, taxes, etc.), they are able to break­ even at very low rates of occupancy.

True False

30

Most cities in the United States, New York City especially, have limited their hotels to either commercial or residential class; that is, commercial hotels may not accept long­term guests.

True False

31

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

True False

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False 1

A brand is successful when customers (guests) have come to recognize the name and logo and associate a particular level of service, cost, and accommodations with that brand.

True False

2

Improving RevPar industrywide has brought rising amenities with it.

True False

3

Branding is about consistency more than about identifying with the parent corporation; and about quality more than about advertising.

True False

4

Web sites that sell hotel reservations focus on price, not brand; that's possible because more and more hotel rooms are viewed as a commodity rather than a service.

True False

5

Hard budget hotel rooms are about 225­275 square feet; especially those found in several airports worldwide.

True False

6

Most states that allow casino gambling have passed legislation that forbids casinos from being part of mixed­ use projects.

True False

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7

"Amenity creep" is the industry's special terminology for a suspect employee whom the hotel doesn't dare to employ.

True False

8

Double occupancy is more important to casino hotels than to commercial or resort hotels.

True False

9

Mezzanine financing is the money borrowed to help finance construction of the lobby mezzanine, the area between the ground floor and the first floor.

True False

10

There are five "parties to the deal": the owner, the lender, the operator, the franchisor, and the developer; but one party can combine several roles.

True False

11

Hotel chains can be "parties to the deal" by operating the hotel and providing its brand; they are not permitted by law to be the developer, the equity source, or the hotel's owner.

True False

12

A membership organization, such as Best Western, is a hotel chain with a fancier name; there is really no difference in being a member of Best Western or a member of, say, Hilton or Marriott.

True False

13

Owning companies are able to get many concessions (smaller fees, shorter contracts, etc.) from management companies if the contract is negotiated during good

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economic times.

True False 14

Condominiums and timeshares are exactly the same thing but marketed under different names.

True False

15

Female guests are more likely than male guests to be downstairs buyers.

True False

16

Under the franchise contract, franchisees (hotel owners) can manage their own properties or hire a management company to do the job.

True False

17

The conversion to condos of the world­famous Plaza Hotel in New York City is part of a nationwide movement toward condo hotels and the resurgence of residents to city­centers.

True False

18

Unlike timeshares, where upkeep is the owner's responsibility, condominium upkeep and repair are the developer's costs.

True False

19

In an effort to clean up the initial bad reputation of timeshares, states outlawed the placement of operating hotels next to or near timeshare units.

True False

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20

Joint ventures are partnerships of entities (such as governments, private corporations, preexisting partnerships, equity firms, etc.) rather than partnerships of individual persons.

True False

21

In an effort to further segment the industry, budget hotels are subclassified as hard budgets (low­end budgets) and upscale budgets.

True False

22

Hotels must be open 24 hours each day if they are to qualify legally as hotels.

True False

23

Timeshares have outgrown their very bad reputation because reputable companies such as Hilton, Marriott, and Disney have entered the field.

True False

24

The growth of the World Wide Web and the simultaneous disaster of the World Trade Center, which caused a rapid fall in occupancy, helped establish new nonguest buyers such as Priceline.com.

True False

25

Churning is the professional term given to butter offered by hotel companies that stress "green" accommodations.

True False

26

Hotel chains such as Hilton grow by acquiring other hotel chains; among Hilton's recent acquisitions are Starwood

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and Choice.

True False 27

The Hilton Corporation is primarily a landlord company (it owns the real estate) and avoids, whenever possible, the operation and management of the operating hotel.

True False

28

The CMP (Corporate Meeting Package) is similar to the all­inclusive plan.

True False

29

It is said that with nonguest buyers, hotels are buying guests through new marketing channels rather than selling rooms to potential guests.

True False

30

Examples of nonguest buyers are those who (1) negotiate rates for large blocks of potential travelers (AAA) or (2) buy a reservation for an individual traveler (travel desk).

True False

31

Buying a block of rooms means committing to a certain number of rooms for a given number of nights.

True False

32

Sources of equity funds shift from Main Street to Wall Street as projects grow in size and cost.

True False

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33

A REIT, a real estate investment trust, is a private equity source that a family creates to buy and sell real estate, including hotels.

True False

34

C­Corporations pay income taxes on earnings; REITs do not so long as they return 90% of their profits in dividends.

True False

35

Although hotel REITs cannot operate the hotels that they own, they can own as subsidiaries the companies that do operate the hotels.

True False

36

Wholesalers and tour operators can sell rooms and transportation at less than the sum of the two individual prices because they buy these in large lots from the hotels and the airlines.

True False

37

Hilton has launched a new brand, Waldorf­Astoria, named after the famed New York City hotel landmark, which Hilton owns.

True False

38

Foreign hotel companies enter the U.S. market when the dollar is weak and U.S. companies expand overseas when the dollar is strong.

True False

39

Political stability is especially important to non­U.S.

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investors in hotels because foreign investors have a long business horizon and a great appreciation of the value of real estate.

True False 40

The budget hotel concept, long used in the United States, is gaining ground overseas in Europe and even in the PRC (China).

True False

41

The 36/12 rule­of­thumb applies chiefly to the all­suite, extended­stay type of hotel.

True False

42

Spas feature stress reduction and fit nicely with the appearance of new, "lifestyle" hotels, such as Aloft?

Hotels by Starwood's boutique division.

True False

43

By law, hotels must accept all who come in good condition and are able and willing to pay.

True False

44

Business guests are a relatively elastic market; that is, they will come to the hotel when business calls with less concern about the room rate.

True False

45

Business guests are chiefly men; leisure guests are chiefly couples.

True False

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It's quite possible that the party that buys (reserves) a guest room is not an individual or a human being.

True False

47

The awards given to PGPs (preferred guest programs) can be seen as part of amenity creep.

True False

48

"Breakage" is slang for the sales manager's under­the­ table (illicit) cut ("break" on the deal) from the tour operator because of the special rate quoted.

True False

49

Unfortunately for small hotels, tour group business from tour operators is not possible; only large hotels can handle that type of business.

True False

50

Although it would be great to do, hotels are limited to one IT package per property: a spa package, a valentine package, a golf package, and so on.

True False

51

IT packages must be offered with care because the hotel is competing against itself: selling the IT room at less than rack rate.

True False

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52

Conventions may be so large that a number of hotels as well as the publicly owned convention center may need to combine to service the group.

True False

53

Convention delegates pay their own bills and book their own rooms within a block of rooms that has been reserved by a trade show executive or other nonguest buyer.

True False

54

If many attendees from the same company come to the show/convention, a single entity group may be created within the convention.

True False

55

Incentive tours are highly prized single entities, with the "winners" expecting and receiving only the best of accommodations.

True False

56

Incentive companies are nonguest buyers who place themselves between the destination resort and the company that uses the incentive to increase sales (or productivity).

True False

57

Incentive companies and tour operators exert the same type of price pressure on the hotel/seller because each represents the possibility of additional and continuing business..

True False

58

The ups and downs of hotel cycles can be caused by factors external to the industry, changes in income tax laws, or events like 9/11, for example.

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True False

59

The typical profile worked up by hotels on their guests is a psychographic one; demographic profiles (age, income, gender, etc.) are more difficult to create.

True False

60

Trade shows and conventions are not usually held together; in fact, some states outlaw the combination.

True False

61

Hotels and conference centers alike face competition from in­house (company­owned) training centers that book other activities when not being used by the company.

True False

62

Tour groups are not single entity groups because they do not exist before or after the trip.

True False

63

The hotel industry is static­"same old, same old," with no or few new products of brands introduced in the past decade or two.

True False

64

Renaissance Hotels is actually one of Marriott's brands.

True False

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Branding is more about consistency than about identification with the parent.

True False

66

An "amenity" is a special amendment (paragraph) added to either the hotel lease or the management contract after the terms have been agreed upon.

True False

67

Hard budget hotel rooms might measure 75 square feet or less, in contrast to a typical hotel room of, say, 250 square feet.

True False

68

Hostels are favored by the young, the single, and the not­too­discriminating traveler because the lack of privacy (dorm rooms; shared bath) is offset by very low rates.

True False

69

High payroll taxes in countries such as France encourage the growth of all­suite hotels that operate at greatly reduced labor savings.

True False

70

Vacationing guests stay longer in their booking than do commercial guests.

True False

71

A pure management contract is almost unknown today because management companies must put up some

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equity if they hope to win the management contract.

True False 72

To assure quality standards, franchise contracts require the franchise buyer (the franchisee) to hire the franchise seller (the franchisor) to manage the franchise.

True False

73

Brand equity is the inherent value that the shopper's recognition gives to the brand. There is equity (value) in the brand if that recognition carries a positive image.

True False

74

Spas are widely available, but not profitable; hotels offer them merely as an amenity­part of the amenity creep that competition has forced on many hotels.

True False

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Chapter 1 Multiple Choice 1

Which spelling is correct?

Acomodations Accadations Accommodations Accomadations None of the above

2

"Location, location, location": Is a term invented by Conrad Hilton Refers to a critical component of real estate Is part of the boutique mystic Is emphasized by trophy hotels None of the above

3

Break­even points are usually measured: By a percentage of occupancy As a seasonal factor With RevPar By a percentage of double occupancy All of the above

4

What other term or terms mean the same thing as "the number or rooms sold"?

Percentage of occupancy Number or rooms available Number of rooms occupied Occupancy percent Number of rooms occupied and occupancy percent

5

Which statement is the most accurate? Above all else, hotelkeeping: Relies on word­of­mouth marketing Depends on its room sales Focuses on food sales Tries to build double occupancy None of the above

6

Which sources track hotel statistics?

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Governments Private consulting/accounting firms International agencies Tourism offices All of the above 7

If the hotel has a "large nut," its: Buffet is spectacular Fixed and operating costs are high Lawns and landscaping are spectacular but expensive to maintain RevPar is terrific!

None of the above

8

Which of the following is a semifixed expense?

Debt payment Power/energy/water Toilet tissue Real estate taxes All of the above

9

Which is NOT a characteristic of the commercial lodging industry?

Perishability Fixed supply High weekend occupancy Location Seasonality

10

Industry professionals value hotel rooms: On a per­key basis On a cost per room basis On a resale price per room All of the above On the value of the bank loan

11

The number of rooms occupied is the same as the number of: Rooms available Rooms sold

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Employees per room Guests in the hotel None of the above 12

The dollar value of a hotel is often expressed in dollars per: Room key Construction cost per room Sales price per room All of the above Square acreage

13

Room Revenue can be overstated (exaggerated) by:

14

Including the value of breakfasts quoted in the rate Excluding the value of the airport shuttle service Including the value of room taxes collected Excluding the value of room taxes collected Including the value of breakfasts quoted in the rate and the value of room taxes collected Which of the several traditional classifications has NOT been used to delineate the hotel industry?

Size Number of employees per guest room Class Plan None of the above; all delineate the industry.

15

16

What is or was the name of the national association that represents the hotel industry?

The American Hotel & Lodging Association The Association of Hotels & Motor Inns The Organization of American Lodging Companies The Hotel, Motel and Innkeeper's Association All of the above, since the name has changed over time In an effort at better marketing, limited service hotels have adopted newer terminology, including: Select Service Minimal Service Focused Service Select Service and Minimal Service Select Service and Focused Service

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17

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. $180.00 $120.00 $18.00 $12.00 None of the above

18

Which of the following is NOT usually considered to be a characteristic of the hotel industry?

Perishability Fixed location Seasonality Innovation None of the above; they are all regular characteristics of innkeeping.

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Chapter 1 Short Answer 1

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: What stage of the cycle is the industry currently in? How do you know that?

Answer: Part A: Describe the business cycle that dictates the economic ups and downs of the hotel industry.

Numerous factors impact travel. Following the significant terrorism incident of 9/11/01, all travel stopped. And then, as travel returned, transient travel represented a higher ratio than it had previously. Experts identified this as regional driving by travelers who sought accommodations at nearby attractions because of their fear to fly: They wanted a vacation, so they took one in their "backyard." Corporate travel stayed lower than pre­ 9/11 numbers for well over a year.

As the economy heats up, corporate travel increases.

There is usually a bubble of travel before the rise in the overall economy. In other words, even when the country finds itself in a depression, corporate travel may begin increasing as business levels begin rising; sales persons, regional meetings, and the like all perk up even when the overall economy is still in slumber. Similarly, travel doesn't slow until a recession is in full bloom. This is because regional meetings, corporate retreats, and conventions, all of which are booked far in advance, tend to continue into the early months of a recession.

Part B: What stage of the cycle is the industry currently in? How do you know that?

Although many experts have been calling for an end to the current recession, others suggest we are in for a long haul. Still, statistics don't lie. The lodging industry is having a solid year where occupancy levels, and ADR are approaching their highs of 2007. Certainly there are weak markets across the United States. But many metropolitan centers are having a solid year. No doubt, when the economy does turn around, the lodging industry will be poised for some very profitable years.

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Chapter 2 Multiple Choice 1

The kitchenette is to the ________________ as the swimming pool is to the motor hotel; everyone wants it, but few use it. all­suite hotel hard budget hotel time share facility mixed use project spa

2

Brand equity requires several components to be in place.

Which of the following is least critical to brand equity?

Consistent quality Location, location, location Instant identification Broad distribution Assured level of service

3

Choice Hotels has many subbrands, among which is/are: Travelodge Howard Johnson Fairfield Inns Sleep Inn Howard Johnson and Fairfield Inns

4

"The Residences" at the Atlantis Hotel in the Bahamas sounds like a: Member of a joint venture PGP, preferred guest program Modified American Plan Condominium hotel None of the above

5

Budget hotels compete by: Using an employee­to­room ratio of 1 to 1 Reinforcing the brand name through additional amenities Focusing on the quality and special characteristics of their swimming pools Locating on less­expensive, somewhat out­of­the­way real estate

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All of the above 6

Which of the following is out of place in the group?

7

MICE SMURF SMERF CURFF None of the above; that is, they all suggest the same idea.

Which of the following components would NOT be in a mixed­use project?

Hotels Retail Entertainment Businesses Government

8

Which characteristic(s) differentiate a conference center from a hotel that offers meeting facilities? Conference centers have, but hotels do not have: Dedicated space Higher double occupancy Bundled rates Food service only for house guests All of the above

9

Spas come in various formats just as hotels do. Which of the following is not recognized as a spa type?

Stay spas Medical spas Mud baths and wrap spas Mineral spring spas Day spas

10

Which of the following might be part of a guest's profile?

Reason for the visit Income level Membership in a group Frequent­guest card holder All of the above

11

Which of the following would NOT be a nonguest buyer?

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Travel company, such as American Automobile Association A travel desk within a business complex A traveling couple Web site A travel agent 12

Which of the following is NOT an aspect of a hotel's sale to tour groups?

Reduce credit card costs One sale books numerous rooms Final step in a yield management system Free advertising for the hotel Reduction in bad debts

13

The separation of ownership from management gained momentum from: The inability of the individual or the immediate family to finance the equity New construction techniques that allowed for larger buildings The creation of the corporation as a legal entity The creation of the corporation as a legal entity All of the above

14

Equity money comes from several sources. Which of the following is NOT a source for such funding?

The trust fund of Social Security Local and regional banks Condominium owners themselves Insurance companies or union pension funds REITs

15

Which of the following is NOT a single entity group?

Traveling ball team National orchestra on tour Broadway show coming to an intermediate­size city Convention group Company sales meeting

16

Which of the following is NOT now a hotel brand?

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Holiday Hyatt Statler DoubleTree Choice 17

Which term is used to describe a budget hotel?

Capsule Limited­service Upscale Hard All of the above

18

Which criterion is needed for a hotel name to carry brand equity?

Instant identification Broad distribution Consistent quality Assured level of service All of the above

19

Historically, which of the following was the most influential factor driving innovation in the hotel industry?

Downturns in the economic cycle Focus of the populace on travel in general Amenity creep Importance of innovation as seen by individual property managers Whether or not brand equity is seen as important at any given time

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Chapter 2 Short Answer 1

Since the end of World War II, the French government has leaned "left," toward a labor/socialistic environment.

Providing numerous social services for its citizens has driven up social security payroll taxes. Minimum wages are high, and there are many paid holidays.

Answer: The very environment that creates better living standards (higher wages and more vacations for all citizens) impacts hotel business profitability. To offset those costs, French hoteliers invest in properties with lower labor costs (economy properties). Of course, this is not exclusive. Upscale and mid­priced hotels continue to operate. Since 2007, France like other countries has had to adapt to new global economic realities. At the start of 2011, the economy, growing at an estimated 1.5%, was just picking up, but deficits were continuing to rise. The budget deficit for 2010 was estimated at 7.7%. This may affect the percentages of budget hotels relative to upscale and mid­range offerings.

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Chapter 3 Multiple Choice 1

"Inspector" or "inspectress" is the name given to:

Security officers in plain clothes Staffers in charge of fire watch Housekeeping employees who sign off on ready rooms Franchise shoppers who approve renewal of contracts Staffers in charge of fire watch and franchise shoppers who approve renewal of contracts, but under different circumstances 2

The approximate formula for converting square feet/square meters is: Square meters are about 1/10 the number of square feet Square meters are smaller than square feet Square feet and square meters are about equal Square feet are larger than square meters Square meters are smaller than square feet, and square feet are larger than square meters

3

Hotels may be owned by which of the following?

REITs Partnerships Corporations Joint ventures All of the above

4

Which of the following sections of the hotel are generally NOT cleaned by the housekeeping department?

Guest rooms Public corridors Banquet floors Employee locker rooms None of the above; housekeeping is responsible for

5

all.

Other than general cleanliness, housekeeping also may be responsible for which of the following?

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Reporting maintenance issues Lost and found Sick guests Counting and weighing linens All of the above 6

The legal definition of a hotel requires it to:

7

Remain open during legal holidays (unless it is a seasonal resort) Accept all who come in good condition Honor at least one national credit card State on signs or other advertising that it holds itself out to be a hotel Accept all who come in good condition and honor at least one national credit card Which of the following tend(s) to make a guest room look larger?

Raising the bed to at least 20 inches from the floor Mirrors on the wall Multiple shower heads Armoires to house television sets All of the above

8

Which class of employee has the smallest take­home earnings?

Housekeeping Bells Telephone Reservations Security

9

Operational changes caused in part by technological changes have restructured the hotel organizational chart causing staff: Increases in the bell department Decreases in the security department Increases in the telephone department Decreases in the reservations department All of the above

10

Room sales: Account for most of the industry's revenue

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Produce more dollars than food, beverage, and telephone combined Account for almost 100% of revenue at budget hotels All of the above Are the industry's second­most profitable department

11

Elevators: Were adopted by hotels only after proving successful elsewhere Helped speed the development of high­rise hotels Now account for the largest portion of the uniformed­ service department Delayed the development of rejuvenated lobbies None of the above

12

The square footage of a full­service hotel can be estimated as the size of: All the guest rooms added together Twice all the guest rooms added together Three motor hotels, provided that they have food­ service capacity x2wherexis 10 times the hotel's acreage Cannot be estimated

13

Single and double refer to all the following answers except the: Rate charged for a room Number of guests in the room Single housekeeper or the housekeeping team that services the room Number of guests that the room could accommodate Size and type of bed

14

In addition to cash salaries, GMs may get which of the following?

Membership fees On­property housing Stock options All of the above State income taxes waived

15

Management bonuses are usually computed:

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On "location, location, location" Using the number of rooms in the hotel Based on ADR By including professional courtesy from other hoteliers All of the above 16

Which ownership pattern is never used in the hotel industry?

Partnership REIT Individual Joint Venture None of the above; they are all used.

17

18

Group and convention bookings for a fixed number of room nights are forgiven if the event is unexpectedly interrupted by acts of God, which are referenced in the contract as: Quid pro quo Ex post facto Force majeure Concierge services Either quid pro quoor force majeure; both are often used.

Concierge floors are:

Floors covered by the hotel's concierge Used to room first­time guests for extra attention Accessible only by a special elevator key Throwbacks to the original intent of the concierge: keeper of the keys All of the above except "used to room first­time guests for extra attention" 19

Today's beds are longer than their predecessors; that length is called ________ length.

California Japanese Hollywood Murphy None of the above

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Chapter 3 Short Answer 1

Describe the organizational chart of a 68­room, economy­ class hotel, franchised under a major chain's logo, that has no food and beverage service, not even breakfast.

OR Sketch the floor plan of the same hotel described above.

Answer: The smallest organization would include: General Manager I I Desk Engineering Housekeeping Accounting Including & & Telephone Grounds Laundry For the second answer, see Exhibit 3­19 of the text.

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False 1

The company that owns the hotel building is not likely to be the company that manages the hotel.

True False

2

146. Antitrust laws forbid a hotel company (say, Marriott) from owning another hotel company (say, Ritz­Carlton).

True False

3

Public corporations may have thousands of shareholders (stockholders).

True False

4

Corporations are "legal persons" that can sue and be sued, buy and sell real estate, and operate and manage hotels.

True False

5

Traditional corporations are sometimes called C­ Corporations to distinguish them from REITs. True False

6

To assure that shareholders' interests are independently maintained, the general manager of a hotel is never an officer of the company that manages the property.

True False

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7

Despite the title, an assistant manager is not a direct assistant to the general manager, but rather is a manager in the rooms division.

True False

8

Large hotels such as the Las Vegas properties employ several thousand workers, perhaps as many as two employees per room.

True False

9

An ideal hotel organization does not allow staff members (accounting, legal, technology, etc.) to interact with guests, leaving guest contact to line members (desk personnel, food and beverage supervisors, etc.) exclusively.

True False

10

The food and beverage department has become less important­not unimportant­to the lodging industry during the past three decades.

True False

11

Most hotels have all of the positions listed in the organization chart shown in the textbook.

True False

12

It is a measure of the importance­actually the unimportance­given to the hotel's housekeeping department that rating agencies such as AAA do not consider cleanliness during their inspections.

True False

13

The bell department (uniformed services) and the telephone department have been shrinking during the

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past decade as technology and lifestyle changes impact the lodging industry.

True False 14

A guest­room attendant can clean between 12 and 18 rooms per day depending on the number of check­out rooms versus the number of stay­over rooms.

True False

15

The GM's role of "greeter," which was emphasized from the 1930s to the 1950s by an organization called Hotel Greeters, has not changed much in over half a century.

True False

16

Light courts are the newest theme in lobbies, bringing in outside, natural light to replace higher­cost electrical connections.

True False

17

Hotel suites are often named, so all­suite hotels always have bridal suites, presidential suites, suites named for historical persons, and so on.

True False

18

Corner rooms are less desirable and, therefore, sell for less because of the long walk from the elevators to the corners of the building.

True False

19

Floor numbering is simple and identical worldwide: The ground floor is numbered 1, the first sleeping floor is floor number 2, and so on.

True False

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20

In a effort to save lives, most local fire departments have forced the lodging industry to adopt standardized room numbering systems.

True False

21

Obviously, every connecting room adjoins, and every adjoining room connects.

True False

22

Theft of guests' belongings is a function of opportunity as much as of temptation.

True False

23

Hotel security must be first a deterrent to crime before it acts to restrain, as a police force.

True False

24

A "last" (shorten from "at last") is a tip­earning call for the bell department.

True False

25

The concierge "floor" is actually a raised section of the lobby in which the concierge's desk is located.

True False

26

Bellpersons prefer the late­night shift because fronts are

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more frequent and tips larger than at other times of the day.

True False 27

Rotating shifts should follow the clock: day, swing, graveyard, and then back to days and should occur only after the employees' days off.

True False

28

Because there is no need to relieve staff for meals, hotel managers are scheduling split shifts at the desk more than ever before.

True False

29

Assigning guest complaints to the guest's "telephone mailbox" is a recent innovation in the telephone department.

True False

30

Hotels that have "large footprints" are those that impact heavily on the economic and social life of the surrounding community.

True False

31

Sit­down registration pods are more common today than the traditional front­desk design that placed a counter between the staff and the guest.

True False

32

The guest­service agent is part accountant, part manager, part psychologist, and part salesperson because front­office duties include all of these.

True

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False

33

Housekeeping should rotate mattresses top to bottom and head to foot according to a fixed schedule attached to the side of the mattress.

True False

34

"California" is the term given to any bed that has been shortened to 72­75 inches from the more traditional length of 79­84 inches.

True False

35

The increasing cost of land and construction has forced hotel companies to build smaller and more­compact rooms.

True False

36

It's a pretty sure bet that no modern hotel has single rooms anymore.

True False

37

Franchisors cannot cancel "the flag" once the franchise contract is signed even if the property deteriorates; they must simply wait until the contract period ends.

True False

38

Better to keep all security personnel in mufti (street clothes) rather than make their presence known by putting them in uniforms.

True False

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39

Bed furnishings have evolved over time: Kings and queens have been replaced because guests prefer double beds or twin beds.

True False

40

"Family room" is the term given to double doubles or queen doubles.

True False

41

The appearance of the all­suite hotel can be explained in part by the disappearance of the studio room, which once served the same purpose.

True False

42

Placing the bath on the inside corridor wall of the guest room creates a sound buffer to the hall and leaves the external wall for windows and balconies.

True False

43

Larger beds mean higher laundry bills because laundry costs are calculated by the weight of the linen.

True False

44

Tour houses, hotels that specialize in tour groups, may build separate tour lobbies to keep the heavy arrival/bus traffic away from the main registration desk.

True False

45

The segmentation of the lodging industry is the result of the different structures (physical and organizational) that the industry adopts.

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True False

46

"Mine Host" was once a nickname for the head waiter in the gourmet dining room, but has fallen from favor as women have moved into the job.

True False

47

Larger beds­queens and kings rather than doubles and twins­account, in part, for the increased size of guest rooms between the mid­twentieth century (1950) and today.

True False

48

Because public lobbies are costly real estate that requires extra security measures, new hotel construction, especially of full­service hotels, has smaller lobbies and reduced services.

True False

49

To protect guest security and to assure the clarity of telephone messages left for guests, good hotel managers insist that all incoming messages be taken by the hotel operator.

True False

50

Selling rooms and reservations to achieve maximum occupancy without overbooking is a combined effort of reservations, sales and marketing, and the front desk.

True False

51

Tradition has kept hotel general managers from receiving bonuses as part of their salary package.

True False

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52

Because of the legal environment in the United States, it is unlikely that a modern hotel would be organized as a corporation although older ones hold on to that business form.

True False

53

Since most property is lost from guest rooms, floor housekeepers must be security conscious, even denying access to guests who have forgotten their room keys.

True False

54

Twisted professional language makes it possible for a single occupant to pay a double rate.

True False

55

It is possible for one hotel corporation to own another hotel corporation.

True False

56

By rotating "an executive on duty," the hotel organization (1) develops an in­depth management cadre and (2) allows free time for the very demanding schedule that hoteliers work.

True False

57

It takes more time for a floor housekeeper to make up a stay­over room that to make up a checked­out room.

True False

58

Self services such as self­check­in account for the decline of the position of Mine Host.

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True False

59

Public corporations such as Marriott issue stock, which represents ownership, numbering in the hundreds of millions of shares.

True False

60

The linen room is the name of the department's office, not a particular room in the hotel.

True False

61

With all the advances in security­monitoring equipment, the hotel industry has been able to minimize personnel in this department, thus bringing down fixed costs.

True False

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Chapter 4 Multiple Choice 1

A 500­room hotel had 80% occupancy last night. Today's expected departures are 250, arrivals are 350, and there are 10 rooms out of inventory. How many rooms are available for sale? +100 +10 +0 ­10 ­100

2

Assume that a 350­room hotel sold 70% of its rooms last night. Today, we anticipate that 150 rooms will depart.

We hold 120 rooms that are 6 P.M. reservations and 150 that are guaranteed reservations. Ten rooms are reported to be out of inventory after last night's damaging monsoon. We know historically that understays are 5% and overstays are 7% of occupied rooms; and that early arrivals are 2% and cancellations are 6% of expected arrivals. No­shows for 6 P.M. reservations are 10%; and no­shows for guaranteed reservations are 3%.

How many rooms are available to walk­ins? ­7 ­2 +0 +3 None of the above

3

Regarding overbooking: Most states allow punitive damages Most states allow ejection of guests who overstay their reservations Most states allow the wronged party to recover between two and four times the room rate All of the above None of the above

4

Overbooking is caused in part by: RNA (registered not assigned) NS (no­show) DNS (did not stay) IRR (internal rate of return)

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All of the above 5

The no­show factor for reservations fluctuates with the: Nature of the guest or group Purpose of the guest's trip Type of hotel Distance the guest is coming All of the above

6

A guest who remains a day beyond the originally scheduled departure date is a(n): Late departure Overstay Latent check­out Understay Late departure and latent check­out

7

Using the following data, how many rooms are available using a simple, unadjusted room count? The hotel has 260 rooms. Last night's occupancy was 80%. Today there are 5 rooms out­of­inventory. 6 P.M. reservations are 80.

Guaranteed reservations are 100. There are 150 rooms due to check out today. +22 +17 +0 ­5 ­7

8

Using the following data, how many rooms are available using an adjusted room count? The hotel has 330 rooms.

Last night's occupancy was 90%. 6 P.M. reservations are 100. Guaranteed reservations are 100. There are 200 rooms due to check out today. Understays are projected at 2%. Overstays are projected at 4%. Early arrivals are projected at 3%. 6 P.M. cancellations are projected at 10%. Guaranteed cancellations are projected at 5%. No shows are projected at 2%. +22 +17 +0 ­5 ­7

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9

U nti tl ed D oc um ent

Room availability forecasts often allow for adjustments based upon historical data. With regard to these adjustments, which of the following is true?

No­shows are guests with reservations (either guaranteed or nonguaranteed) who never arrive.

Understays are guests who check out at least one day earlier than their scheduled departure date.

Cancellations increase the number of available rooms.

Early arrivals are guests who arrive at least one day before their scheduled arrival.

All of the above

10

With regard to the concept of overbooking, which of the following is true?

Overbooking is a relatively common and widely used technique used by hotels to diminish the impact from no­ shows.

Deliberate overbooking that results in walked guests is a breach of legal contract.

The federal government has threatened, in the past, to enact legislation penalizing hotels for overbooking.

Some states have passed legislation that forces hotels to award damages to walked guests.

All of the above

11

With regard to a property's cancellation policy, which of the following is true?

Generally, the cancellation policy of a resort property may require more lead time for full refund than the cancellation policy of, say, an airport hotel.

A property is more likely to be lenient in their cancellation policy if a guest makes the effort to call and cancel his reservation in advance rather than waiting until the next day to call and explain why he was a "no­ show."

A property is more likely to charge a "no­show" if the customer is a vacationing tourist than if he is a regular corporate customer.

All of the above Generally, "no­shows" are more likely with an advance deposit reservation than they are with a 6 P.M. reservation.

12

Regarding the "quality" of the reservation, rank the following from highest (best) quality to lowest (worst)

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quality.

4 P.M. or 6 P.M. reservation Corporate or credit card guarantee Advance deposit reservation Highest ­1, Middle ­2, Lowest ­3 Highest ­2, Middle ­1, Lowest ­3 Highest ­3, Middle ­2, Lowest ­1 Highest ­3, Middle ­1, Lowest ­2 None of the above 13

If a 320­room hotel sold 160 rooms and had 20 rooms out of inventory (OOI), what would its occupancy percentage be?

50% 60% 53.33% 20% Impossible to say. This question does not provide sufficient information.

14

A guest remaining in the hotel at least one day past his originally scheduled departure date is known as a(n): Overstay Understay Latent check­out Late departure None of the above

15

Assume that a given property has 300 rooms. After accounting for the day's departures and arrivals, 100 rooms remain unsold. Of the 100 rooms available, 50 rooms cannot be sold because they are out­of­inventory.

In this case, the forecasted occupancy percentage would be: 20% 40% 60% 80% None of the above

16

Early departure fees: Have been enthusiastically accepted by guests who were walked previously, because their reserved room is

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now assured Are an understay penalty that has not achieved wide usage Were started by the credit card companies after they experienced high chargebacks Generally do not apply to AAA or AARP reservations All of the above 17

Assume that a 200­room hotel sold 50% of its rooms last night. Today, we anticipate that 75 rooms will depart. We hold 60 6 P.M. reservations and 90 guaranteed reservations. There are no advance deposits. What is the forecasted number of rooms available for sale?

85 55 25 0 75

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Chapter 4 Short Answer 1

On October 6, a 300­room property had an occupancy of 70%. What is forecasted occupancy for October 7 if: 10 rooms are put out­of­order at 9 A.M. on October 6 150 rooms are on reservation Registration information indicates 101 rooms will depart today The hotel as a historical 6% cancellation rate The hotel as a historical 10% no­show rate Answer: The answer is that we have forecasted occupancy of 78.33%. Here's why: Rooms available in hotel Occupied last night Total forecasted departures today Anticipated stayovers Reservations No­show factor (10 percent) Cancellations factor (6 percent) Todays adjusted reservations Adjusted total of rooms committed Adjusted number of rooms available for sale

300 210 101 109 150 ­15 ­9 126

109

126 235 65

Occupancy is 235 / 300, which equals 78.33%.

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False 1

A room placed out­of­order is generally repairable within a relatively short time. A room placed out­of­inventory usually takes longer to repair.

True False

2

Reservations without deposit or guarantee (nonguaranteed reservations) are sometimes referred to as 4 P.M. or 6 P.M. hold reservations. That is because by 4 P.M. or 6 P.M. (or whatever other time might be hotel policy­like possibly noon for a resort property), the hotel has the right to cancel the reservation if the guest has not yet arrived.

True False

3

By their very nature, guaranteed reservations (including advance deposit reservations) have no time limit on them. Guaranteed reservation guests arriving as late as 2 A.M. (or even later) should still expect to find their room.

After all, that is one of the key reasons for guaranteeing the reservation.

True False

4

It is possible for a guest who sent in an advance deposit to be walked to another hotel, despite the fact that the room had been paid for.

True False

5

The daily accuracy of reservation forecasts can be improved by making hourly adjustments, just as the monthly forecast can be improved by making weekly adjustments.

True False

6

It is probable that on most days, the percentage rate of no­shows with guaranteed reservations would be lower

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than the percentage rate of no­shows with nonguaranteed reservations.

True False 7

Because each day's reservation forecast begins with the previous day's occupancy, long­range forecasting is considered accurate only to about thirty days.

True False

8

Hotels will dishonor the reservations of new arrivals rather than evict guests who overstay their original reservations. This is one of the root causes of overbooking.

True False

9

Advance deposit reservations have a greater likelihood of no­show than do nonguaranteed reservations.

True False

10

A hotel reservation is essentially a legal contract.

Therefore, in the case of an overbooking situation, hotels or guests could probably sue for breach of contract.

However, few ever do­it's too much work for too little return.

True False

11

All advance deposit reservations are considered guaranteed for the most part, but not all guaranteed reservations are advance deposit.

True False

12

A hotel might sell a room to a "walk­in" guest who arrived without a reservation. This is the same as "walking" a guest into one of the hotel's unreserved and vacant guest rooms. In other words, "walking" a guest

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and a "walk­in" guest are basically the same thing.

True False 13

A computerized reservation system tracks reservation counts by room type rather than by by an actual room number (like "room number 2137").

True False

14

Historically, before the introduction of "last room availability" systems, when only a few rooms remained available for a given date at a hotel the hotel's reservation manager had to "close" availability with the central reservation office. This meant that remaining sales had to be done by the hotel, but this method prevented the CRO from overbooking the date.

True False

15

Guaranteed reservations made against a national credit card are less secure than many people realize. In many instances, guests who are charged for a no­show but refuse to pay are supported (upheld) by their credit card company. This leaves the hotel without payment for the unoccupied room night.

True False

16

Out­of­inventory rooms do not affect the room availability count, while out­of­order rooms do affect the room availability count.

True False

17

The perfect fill is defined as a hotel that reaches or exceeds 100% occupancy on a given night, AND every room in the hotel is physically occupied by guests.

True False

18

A simple, unadjusted room count does not consider historical trends (like higher no­shows on Wednesdays) in

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the calculation.

True False

19

Adjusted room counts are recalculated several times thorough the day. This increases their overall accuracy.

True False

20

The number of anticipated stayover rooms in an adjusted room count calculation generally becomes a moot point for calculations made after the check­out hour.

True False

21

The number of nonguaranteed reservations in an adjusted room count calculation generally becomes a moot point for calculations made after 6 P.M. True False

22

Understays and overstays, though opposite in definition, actually affect the number of rooms available for sale in the same manner; they each increase rooms available by the number of rooms understaying or overstaying.

True False

23

Overbooking is a strategic decision made by the reservations manager in concert with the front­office manager and the housekeeping manager.

True False

24

Out­of­order rooms are included with marketable rooms in the room count and occupancy statistics.

True False

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25

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"Whos" are occupied rooms for which the front office has no record.

True False

26

Large permanent (extended­stay) guest populations are not included in computations involving stayovers and anticipated departures.

True False

27

Interestingly, out­of­inventory rooms do not affect rooms available for sale (the denominator in an occupancy equation) while out­of­order rooms do affect inventory.

True False

28

Early arrivals, like cancellations and no­shows, reduce the number of expected arrivals.

True False

29

A hotel reservation is essentially a legal contract. But lawsuits against guests for no­shows and lawsuits by guests against hotels for being walked are very rare.

True False

30

Interestingly, advance­deposit reservations have the greatest likelihood of no­show. Nonguaranteed reservations (6 P.M.) generally have the highest rates of arrival.

True False

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Chapter 5 Multiple Choice 1

Which of the following items seems out of place?

Amadeus Apollo Gemini Hampton Sabre

2

Which of the following would not be considered a method for making a hotel reservation?

E­mail Telephone Internet Travel agent All of the above are methods for making reservations.

3

Which of the following services do Application Service Providers (ASPs) offer member hotels?

Listing on a CRS Connection to the GDS Internet­based reservations Access to alternate distribution systems All of the above

4

Chain­owned Central Reservation Systems: Charge hotels a per­reservation fee Monitor the length of time that reservation agents invest per call Receive upwards of 1­2 million calls per month Accept, hold, and relay incoming calls by means of automatic call distributor equipment All of the above

5

Yield management systems for the lodging industry: Were adopted from the airline industry Improve overall room cleaning time (yield) Increase room rates as occupancy falls Apply to individual reservations and not to group

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business All of the above 6

As occupancy improves and the hotel fills, the reservation manager will likely: Book more IT packages Lower room rates Give the central reservation system increased authority to sell and report Restrict sales to government per diem and AARP guests All of the above

7

When the hotel approaches capacity, reservations may be regretted if they come: From travel agents As a result of an advertised hotel package For AAA or AARP From a government employee All of the above may be regretted.

8

Which of the following is true regarding Central Reservations Offices?

Most are located in the East, and many of those are in either Boston or New York City.

Some handle as many as 2 million or more calls per month.

Few chains use them; it is primarily a franchise service.

All have the authority to override the local property.

None of the above

9

The universal switch (switch technology) allows a travel agent to: Use one reservation terminal even though s/he is sending numerous reservations to various central reservations systems; in other words, the travel agent can use one terminal that can speak the language of many systems Bypass the hotel's yield management system Override closed dates by switching off certain guest parameters (like AAA or AARP) Make hotel reservations through voice recognition None of the above

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10

Regarding central reservation offices, which of the following is true?

Res centers generally charge a fee to the hotel for each room booked.

Time is of the essence. Most CROs monitor the length of time that each agent spends on the phone.

Automatic Call Distributor Equipment holds and relays calls in a rotating sequence.

All of the above The average call to a CRO lasts approximately 6 minutes and 30 seconds.

11

Travel agents: Charge guests approximately 10% more for the room than the hotel does Get a commission of approximately 10% from the hotel Get a larger commission from the central reservations office, so they usually bypass hotel reservations offices All of the above None of the above

12

Yield management's major contribution toward setting room rates is its recognition of the: Quality of the room's furnishings and amenities Importance of local competition Amount of room inventory available (in­house supply and demand) Height of the floor of the room assigned All of the above

13

Which of the following is NOT one of the four global distribution systems (GDS)?

Sabre THISCO Galileo Worldspan Amadeus

14

PHASER, TravelCLICK, and Smith Travel Research's STAR are examples of: Voice recognition systems Mapping capabilities now available on GDS Computer interfaces between the desk and the

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marketing department Reservation outsourcing acronyms Tools for measuring yield management results 15

SMERF is an acronym for: Social, Military, Educational, Religious, and Fraternal group business One of the GDSs (global distribution systems) AT&T's voice recognition system An Internet travel site that Travelocity has opened None of the above

16

As part of the reorganization taking place in the lodging industry (per Chapter 3), the reservations department of the individual hotel: Has become more computerized No longer reports to the rooms manager Is now headed by a vice­president Has essentially disappeared, having been replaced by Web sites All of the above

17

Central reservation offices (CROs): Can be accessed by dialing toll­free 800 numbers Are sometimes located outside the United States Charge member hotels a fee for each reservation taken May employ as many as several hundred agents during peak periods All of the above

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Chapter 5 Short Answer 1

This

question

requires

two

brief

statements:

Sketch or describe the flow of communication that takes place when a potential guest requests a hotel reservation through any agency that uses a Global Distribution System.

Answer: See Exhibit 5­3 for an illustration.

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False 1

A common complaint by hotels about travel agents is that travel agents send business chiefly during the hotel's busiest periods, and send relatively few guests when hotel occupancy is low.

True False

2

Due in part to the assistance of yield management procedures, it is generally accurate to say that the most expensive rates are charged to the last rooms sold.

Similarly, the lowest rates are available far in advance, when few rooms have yet been sold for the date in question.

True False

3

Although costly and impressive, large hotel chain reservation centers receive relatively few reservations directly from guests. It seems that most leisure and corporate guests generally prefer dealing with travel agents rather than dealing directly with CRSs. True False

4

Yield management has achieved its objectives if the fraction (Rate Realized / Rate Potential) is 1 or higher.

True False

5

Although on­change and out­of­inventory rooms are caused by different circumstances, their impact on yield management decisions is the same.

True False

6

Like closing certain dates to arrival, requiring a minimum length of stay is also a commonly used yield management control technique.

True

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False 7

Last room availability technology allows the CRS to sell the hotel's last room without accidentally overselling the property.

True False

8

From a yield management perspective, corporate guests are usually more rate sensitive than are leisure guests because they are traveling on their company's budget.

True False

9

The yield management team should have members from the front desk, the reservations department, and the hotel sales office.

True False

10

From a yield management perspective, the occupancy pattern of a resort (busy on weekends and slower on weekdays) is opposite to that of the commercial hotel, which is slower on weekends and busier on weekdays.

True False

11

A general manager knows that his/her yield management program has achieved its objectives when the ratio of Rate Realized: Rate Potential is one or higher.

True False

12

A failure to pay commissions in a timely manner is one of the travel agency industry's major complaints against the hotel industry.

True False

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13

Among other things, yield management considers customer demand, lead time, buyers' sensitivity to price, and room type requested.

True False

14

Although we see fenced rate quotes (nonrefundable reservation, 21­day advance purchase, stay over on a Saturday night) regularly in the airline industry, it is still relatively uncommon to find them in the lodging industry.

True False

15

The United States is the global leader in online travel reservations.

True False

16

Application Service Providers (ASPs) provide global distribution and central reservation services to unaffiliated, independent hotel properties.

True False

17

Yield management decisions are partially based on the fact that leisure guests are sensitive to date (they must travel during their vacation dates), while corporate guests are most sensitive to rate (as businesses strive to save money, hotel room prices are carefully evaluated).

True False

18

Single­image inventory allows all Application Service Provider (ASP) members to feed data from the same database.

True False

19

Airlines generally pay travel agents a 10% commission on all air travel booked. Hotels generally pay travel agents no commission at all (beginning in 2001).

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True False

20

With growing corporate and leisure business, the travel industry is widely successful these days. As such, the number of travel agents in America has grown substantially since 2001.

True False

21

Surprisingly, the most expensive average room rates are booked on­line. Cheaper average rates come from direct telephone calls to the CRS. True False

22

Third­party travel sites act as inventory aggregators, contracting with hotels for a set number of rooms at a deeply discounted price, and then reselling the rooms through popular Web sites.

True False

23

Meta­search Web sites (e.g., SideStep, Kayak, TravelZoo), use sophisticated search technology to exploit hotels and chains that have not ensured internal rate integrity.

True False

24

The average corporate guest books his/her lodging accommodations and air flights at least 45 days in advance of travel.

True False

25

In terms of yield, a 200­room property selling 80% of its rooms for $65 per night ADR would demonstrate identical yield to a different 200­room property selling 65% of its rooms for $80 per night ADR. True False

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26

Hurdle pricing is the term given to the competitive environment in reservation offices. It requires each reservationist to better his/her record by either the number of reservations taken, or the number of days booked, or the average rate of the booking.

True False

27

Many small chains and independent properties outsource their reservation offices to travel agents as a method of reducing costs, increasing the quality of guest service, and upping the ADR. True False

28

The price­occupancy mix is a management decision because the same total rooms revenue (yield) can be achieved by either higher rates and lower occupancy or lower rates and higher occupancy.

True False

29

The airlines' decision to eliminate commissions to travel agents had a similar consequence for hotels.

Reservations originating with travel agencies almost disappeared for both airlines and hotels.

True False

30

Yield management was initially introduced by the hotel industry in the late 1960s. The rapid development of yield management technology, however, is attributed to the airlines because they had the financial resources to implement this capital­intensive investment.

True False

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Chapter 6 Multiple Choice 1

All else being equal, the reservationist should be trained to first offer the caller a: Package rate Convention rate Rack rate Weekend rate Flat rate

2

Regarding group business: Tour guests are sold individually, but handled as a group by the front desk IT packages are sold individually, but handled as a group by the front desk Convention guests are sold individually, but handled as a group by the front desk Trade shows are developed by the sales department and presented (shown) to prospective hotel clients (also called the "trades") as a means of increasing group room sales All of the above

3

The International Society of Horse Traders convention has been quoted a number of different rates; for this convention the $165 rack rate standard room is $125, the $189 queen parlor is $144, and the $215 king deluxe is $169. This group has been quoted: Flat rates Run­of­house rates Spread rates Rack rates None of the above

4

If tour­group guests are given coupons with which to buy meals in hotel restaurants and do not use the coupons, the: Guests must reimburse the hotel Tour operator must reimburse the hotel Guests get refunds from the tour operator Hotel will not receive the meal revenues from the tour operator because there is no proof that the meals were received since no coupons were redeemed None of the above

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Fam trips are complimentary or discounted rates furnished: To families For travel agent familiarization trips To famous meeting planners For famous celebrities None of the above

6

A guest who arrives without a reservation is a: Walk­in guest Walked guest Walking guest Walking­by guest None of the above

7

Which of the following falls into the nonessential (nice­to­ know) category of reservation data, as contrasted with essential (need­to­know) data?

Name and number in the party Type of sleeping accommodations requested Means of travel or transportation Date of arrival None of the above; they are all essential.

8

Guests with an arriving convention group are assigned whichever room appears first on the computer screen at the time of their check­in, but everyone is charged the same $100 rate. This group was quoted: Flat or run­of­the­house rates Over­under rates Spread rates ROC (room of choice) rates None of the above

9

Which of the following are accurate types of business represented by the acronym SMERF? Socratic Medical Educational Rorschach Flat rate

10

Association executives and meeting planners will often

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visit a community and look at several hotels before deciding where to book their group. These visits are usually referred to as: Family trips Lodging audits Room sizing­up Site inspections None of the above 11

It is standard procedure to offer rate discounts to: Senior citizens AAA members AARP members Uniformed personnel, military, and even firefighters and police All of the above

12

Executives of various trade and professional associations have their own affiliation, ASAE, which is the: American Society of Association Executives Associated Society of American Executives American Standard for Associated Enterprises Associated Society for American Standards None of the above

13

Tour groups are: Assigned rooms throughout the hotel to minimize noise and baggage handling on floors Not a component of yield­management considerations Part of a hotel's IT package Quoted rates as per­person double occupancy (shares­with) All of the above

14

If members of a convention group are offered a range of rates, the rate quote is said to be: Flat rate Rack rate Spread or sliding rate Run­of­house rate All of the above

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15

Reservations requiring cash deposits have: Generally replaced credit­card deposits as a means of saving commissions Wider use among commercial/business properties than among roadside motor inns Never been popular with hotels Been required from travel agencies since airlines have stopped paying them commissions None of the above

16

At any given property, which of the following is a valid argument in favor of marketing for group business?

There are economies of scale or savings generated by selling and delivering a bulk of rooms to group business.

Individual guests within the group may spend more (have a higher worth) than regular guests.

Group business represents a high percentage of the industry's occupancy.

All of the above None of the above

17

The Price Water house Coopers convention has been quoted a single rate. No matter which room they may receive at check­in (standard room, city­view parlor, or king deluxe), they are all charged $149 per night. This group has been quoted: Spread rates Run­of­house/flat rates Set day rates Rack rates None of the above

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Chapter 6 Short Answer 1

You have been asked to write a computer program for taking telephone reservations, but capacity is limited: You must hold to the six most important components of a reservation. List them.

Answer: Name; arrival date; departure date (or number of nights stayed); rate; number in the party; number of rooms required

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False 1

Because organizations that qualify for discounts at most hotels, like AARP (American Association of Retired Persons) and AAA (American Automobile Association), are interfaced directly to national central reservations systems, they do not require members to ask for discounts when making reservations. Through the interfaced technology, discounts are automatically granted to registered members.

True False

2

Within a given city, there is usually a convention and visitor's authority or bureau (CVA or CVB), which handles group room negotiations between hotels. In other words, a large convention coming to Fresno (assume that it is too large a convention to be housed in just one of Fresno's hotels) would initially be handled by the CVB acting on behalf of several hotels at once.

True False

3

Guaranteed reservations made by telephone are confirmed on the spot, with the reservationist furnishing the caller a confirmation number. This is true even for reservations systems that send written acknowledgment to the guest several days later.

True False

4

Reservations without deposit or guarantee (nonguaranteed reservations) are sometimes referred to as 6 P.M. hold reservations.

True False

5

Guaranteed reservation guests who arrive very late (say, 2 A.M. or later) will still be provided a room because their guarantee paid for it, and it belongs to them all night long, no matter what the arrival time.

True False

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6

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An IT (Inclusive Tour) package is put together by a tour operator and sold to guests through travel agents.

True False

7

Reservations should not be quoted an exact rate. Rather, they should be quoted a rate range (usually about a $6 to $10 spread) with the low end of the range being the rate requested by the guest. In this way, if the exact room requested is not available when the guest arrives, the hotel can upgrade the guest to a more expensive accommodation and charge the higher end of the rate range quoted.

True False

8

One complimentary room per 50 room nights sold is a widely quoted industry measure used when negotiating convention and group business.

True False

9

A hotel's IT package is generally identical in terms of services and amenities to a package offered by a wholesaler through a travel agent in a distant city.

True False

10

Public convention and visitor bureaus (CVBs) usually operate housing agencies (often without fee) to facilitate reservations for groups too large to be housed in one hotel.

True False

11

Trade associations reserve a block of rooms roughly equal in size to the number of delegates expected to attend the meeting, annual conference, and so on.

Thereby, the association becomes financially responsible for unsold rooms through attrition clauses in the group rooms contract.

True

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False 12

Because hotels block a certain number of rooms for a given convention group reservation, it is possible to accept reservation requests from conventioneers, but refuse requests for the very same night from individuals with no affiliation to the group.

True False

13

Although it creates labor savings for the chain, many potential guests become frustrated with automated telephone systems, which require callers to listen to options and press buttons to move through the process.

Many callers just want to talk with a live person.

True False

14

Many of today's central reservations call centers are located overseas.

True False

15

Hotels that utilize guest history database systems both save time and appear more efficient; a reservationist using such a system could literally remind the caller what he had for room service breakfast, confirm that it was delivered at 6 A.M., and ask whether he would like to arrange the same order for the current visit as well.

True False

16

Generally, one would expect to see higher average per­ delegate spending with a medical convention than with a military or religious convention.

True False

17

SMERF business is usually regional in nature and is characterized by shorter lead time than is full­blown convention business.

True False

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18

A trade show is a type of advertising (movie or Internet video) traded for lodging business. It is also known as a trade­out.

True False

19

For most conventioneers, the hotel room is the largest single expenditure category aside from air travel.

True False

20

All else being equal, the reservationist should always offer the caller a list of possible discounts before quoting a rack rate for the reservation.

True False

21

Group and convention business comp rooms are usually quoted in a ratio of 1 free (comp) room for every 86 rooms paid (sometimes shown as 1:86).

True False

22

Association executives often will visit a community and look at several hotels before deciding where to book their group. These visits are often called "site inspections."

True False

23

Because reservation agents are monitored for the amount of time they take on each call, optional reservation data (such as date of arrival and number of rooms required) is often omitted when taking a telephone reservation.

True False

24

Under pressure from antiterrorist groups, the federal

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government's Office of Homeland Security has required the hotel industry to standardize all reservation codes across the industry. This allows for easy identification of travelers.

True False 25

Travel­agency reservations need to be distinguished from other reservations because travel agents typically get a 25% commission for business booked.

True False

26

Many hotels choose to stay away from convention business because convention delegates generally spend less per day than do other guest types.

True False

27

Pressure to balance municipal budgets has forced Convention and Visitor Bureaus (CVBs) to limit their cooperation with lodging industry partners and reduce overall services to citywide convention groups.

True False

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Chapter 7 Multiple Choice 1

How would you resolve this complaint: Power on the room TV went off for 30 minutes after the guest had paid for a film on HBO? Give an allowance for the cost of the film Comp the guest's room for the night Give his party of four a round of drinks in the bar Upgrade two levels to a master suite Each of these would be appropriate.

2

Preparing for the complaint means: Developing a tolerance for drunks Understanding that some guests are show­offs Overlooking a bit of exaggeration Accepting the fact that some guests will never be satisfied All of the above

3

When referencing their customers, retailers speak of _____; economists cite _____ ; galleries talk of _____; and hotels refer to _____.

Shoplifting; gross domestic product; art; food and beverage, Seasons; downturns; Mona Lisa; conventions Customers; consumers; patrons; guests Styles; inflation; artists; yield management None of the above

4

Which of the following issues should NOT be part of hotel training?

Personal needs: cleanliness, promptness; retirement savings, etc.

Work skills: technical ability; computer savvy Interpersonal skills: meeting, greeting, courtesy Broadening beyond the immediate job such as security and emergency awareness None of the above; they are all hotel related.

5

Bedbugs: Are almost unknown in modern, sanitary hotels Must feast every night (on blood) or die

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Are appearing, in part, because of increased international travel Must have bed linens (to eat) to survive All of the above 6

Which of the following is essential for good sleep?

Being roomed on a floor midway in the building Quiet In­room amenities Centralized HVAC All of the above

7

AAA requirements include: Accessibility for the handicapped In­room refrigerators Duvets on guest room beds Proprietary reservation systems All of the above except duvets on guest room beds

8

"Peer­group" hiring: Has nothing to do with employment despite its name Involves the very associates with whom the new hire will work Brings guests into the hiring process Uses outside, disinterested agencies or individuals Brings guests into the hiring process and uses outside, disinterested agencies or individuals, OR involves the very associates with whom the new hire will work and brings guests into the hiring process

9

Among the "new" additions to the American guest room is/are: Top (third) sheets Duvets Variety of pillows Bottom fitted sheets All of the above

10

ADA: Is a legislated type of quality guarantee Applied initially to guests only; current proposals will

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broaden coverage to employees as well Is an abbreviation of a federal law, "Act for Disabled Americans" Recognized the Ritz Carlton Company for its good business practice All of the above

11

"Mystery Shopper" is a(n): Euphemism (a less offensive word) for an employee spy Federal employee checking on ADA compliance Unannounced health inspector, usually (but not always) for food Individual who reports on employee attitudes and company procedures None of the above

12

Retailers speak of _____; hoteliers of _____; and galleries of _____.

Clients; regulars; visitors Customers; guests; patrons Consumers; patrons; visitors Regulars; guests; patients None of the above

13

14

The ADA: Is a federal law dealing with Advanced Drug Addiction in employees Refers to any state law that deals with adverse drug addiction Requires employers to give 48 hours notice before drug testing Places drug addiction under most health­insurance programs None of the above; the ADA is not drug­related legislation.

When guest and employee meet "eyeball to eyeball," there is an opportunity for service to shine through. That opportunity has been called a: Quality circle Who­knows­why?

Quality guarantee Moment of truth

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None of the above 15

Which hotel chain has won two Malcolm Baldrige Awards for quality?

Ritz­Carlton Hyatt Four Seasons Hilton None of the above

16

Bedbugs are a very costly concern to the hotel industry.

Current methods of eradication that are NOT effective are: Destruction of furniture and bedding Bedbug­sniffing dogs Use of DDT on the bedding Training to housekeeping staff to learn detection Vacuum cleaning of the bedding once a week

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Chapter 7 Short Answer 1

Identify one complaint that guests will frequently register with the guest­service agent at the front desk, and offer a best­practice response that management has prepared in anticipation of the complaint.

Answer: There is no single answer to this open­ended question.

Weigh the grade more on the second half of the question because it takes more thought and understanding.

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False 1

Many hotels prefer "associate" as a softer name for "employee," because it references the individual's critical role in accomplishing the hotel's mission.

True False

2

Despite all the fancy amenities available, guests still rank a good alarm clock high on the "must­have" list.

True False

3

Because of the high annual cost of mattresses, most hotels delay replacing them as long as possible.

True False

4

The term "soft goods" refers to the furniture in the hotel rooms: bed, bureau, television, and the like.

True False

5

A 180 thread count, 100 threads in one direction and 80 in the other, is popular with most hotels.

True False

6

A "par" inventory of five bed linens is recommended: one set on the bed, one in the floor closet, one on the maid's cart, one in the linen room, and one in the laundry.

True False

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7

"Road warriors" protect travelers against mishaps and are more evident in the United States since the attack on the World Trade Center.

True False

8

The very best hotels usually dry clean traditional bedspreads for every other occupant.

True False

9

Comforters with duvet covers are replacing the more traditional bedspreads in many hotels.

True False

10

Shortening­almost reducing­the size of the vanity that holds all the bath amenities makes the bathroom look cleaner.

True False

11

Minor, in­room repairs often go unreported by the room housekeeper because the English form for doing so does not make sense to an attendant who speaks a foreign language.

True False

12

Quality circles are impressive building designs that hotels use in lobbies to make a startling architectural statement.

True False

13

Empowerment gives the workforce authority to act in some areas that previously had been management's responsibility.

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True False

14

Empowering employees reduces the need for supervisors, and reducing the need for supervisors requires employees to make more decisions.

True False

15

As one would expect, the racial and cultural diversity of the hotel industry's workforce is the same as the cultural and racial diversity of the national population.

True False

16

A counterrevolution is taking place because hotels that once were smoke­free are quietly switching back to allow smoking.

True False

17

The same guest holds different expectations about the service to be received because the type, plan, rate, and size of every hotel differs.

True False

18

Hotels are no different from manufacturing: The quality of both products can be monitored, measured, and quantified.

True False

19

Total quality management (TQM) originated in the service industries, spearheaded by the hotel industry, and has been adopted gradually by heavy industry.

True False

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20

Bedding has become as much a public relations/advertising issue as it is a factor of guest comfort.

True False

21

Amazingly, cleanliness ranks lower in guest survey results than does a good mirror and an in­room coffee maker.

True False

22

Although different hotel companies use different names and stress different issues, the focus of all QA programs is hiring, training, delegating, and rewarding employees.

True False

23

Third (top) sheets, which are gaining popularity especially in upscale hotels, have a cost over and above the actual sheet's initial price; they add weight and hence cost to the laundry.

True False

24

Top sheets (third sheets) are changed along with other bedding, often daily; duvets might be changed daily, but that is unusual.

True False

25

"How was everything?" is the right question for management to ask guests if it is trying to uncover problem areas within the hotel.

True False

26

Safety can be improved by directing children and the elderly to escalators rather than to elevators.

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True False

27

Because few guests actually return to the same hotel, modern management theory lets complaints slide by rather than spending time and money to resolve them.

True False

28

Complaints are like the icebergs that sank the Titanic: Most are below the surface, unseen until they appear with disastrous results.

True False

29

Preparing for complaints includes recognizing the best practices for solving them since complaints often follow the same pattern within a given department.

True False

30

If it is merely a question of dollar cost, it makes good sense (cents) to retain the worker rather than recruit a new one.

True False

31

One of the difficulties with introducing empowerment is that many employees don't want it.

True False

32

Probably the best place to fill a job opening for a bar back (support position for a bartender) is the World Wide Web. True False

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33

Hotel labor unions are strongest in the large hotel cities, best represented by southern cities such as Orlando, New Orleans, and Memphis.

True False

34

Total quality management (TQM) is difficult to define and identify because both the lodging industry (the seller) and the guest (the buyer) are segmented into many parts.

True False

35

Managing for quality adds "leadership" to the traditional management functions of planning, organizing, staffing, directing, and reviewing.

True False

36

TQM never permits criticism of a bad decision, but stresses, rather, a proactive approach that aims to avoid errors.

True False

37

Customer relations management (CRM) begins with employment, where "selecting" the employee is more important than "hiring" the applicant.

True False

38

The ADA is a federal law that followed and explained much of the original OSHA legislation.

True False

39

Among the early problems of the ADA was its failure to

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define terms (such as "readily achievable" or "undue burden"), which pushed many issues into the courts.

True False 40

Most visually handicapped persons read Braille.

True False

41

The dollar costs of unresolved complaints can be calculated quite accurately by using the dollar values that are part of the "moments of truth."

True False

42

Hotel managers complain more about the accuracy of guest­comment cards when those cards are used for salary and promotion decisions.

True False

43

The low response rate of guest­comment cards can be improved by reducing the size of the questionnaire.

True False

44

Managers should distract complaining guests by handling other business (telephone calls, computer messaging, etc.) while the complainant is talking.

True False

45

Quality control is maintained by several techniques, including fear of job loss; reduction in salary; and assignment of poor working hours (hotels are open 24 hours per day).

True

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False 46

Avoiding mistakes rather than correcting them is the essence of total quality management.

True False

47

Public areas, such as lobbies, are the best place to resolve guest complaints because guests are less likely to make a scene.

True False

48

Good hotel managers resolve complaints without excessive costs, especially if no harm was done.

Apologies are free; give away as many as needed.

True False

49

"Customers are always right" is so true, in fact, that every complaint requires the hotel to make some type of adjustment.

True False

50

Franchise inspectors and rating agencies frequently visit the housekeeper's office, knowing that an orderly office means an orderly hotel.

True False

51

Sheraton's "Service Promise" awards discounts, frequent­ guest points, and even cash for failing to meet given levels of service. That sounds like a Quality Guarantee.

True False

52

The most successful quality guarantee programs start out

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as advertising ideas.

True False

53

Meeting planners have started asking for guarantees from the hotel (coffee served 5 minutes after the meeting session breaks) to balance the guarantees they give (so many hundred covers for the final banquet).

True False

54

Employee empowerment has emerged because the hotel industry no longer has a traditional top­down line organization (manager­supervisor­supervised) structure.

True False

55

"Moment of truth" is the term used for the time during the employee interview when sensitive questions are posed by the interviewer and answered by the job applicant.

True False

56

Avoiding mistakes rather than correcting them is the essence of total quality management.

True False

57

Public areas, such as lobbies, are the best place to resolve guest complaints because guests are less likely to make a scene.

True False

58

Good hotel managers resolve complaints without excessive costs, especially if no harm was done.

Apologies are free; give away as many as needed.

True

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False 59

"Customers are always right" is so true, in fact, that every complaint requires the hotel to make some type of adjustment.

True False

60

TQM gets more attention from management when the economic cycle is up and the operating company has more money to use on the concept.

True False

61

Edward Deming's work in Total Quality Management considered, in part, the size of a worker's shovel; hotel managers likewise should look to the weight of the housekeeper's vacuum cleaner.

True False

62

Changing the terminology­"associates," for example, instead of "employees"­is thought to be one step toward improving staff members' attitudes.

True False

63

First­class hotels replace mattresses every three to five years, the typical life of a premium mattress.

True False

64

"Green tent cards" left on the bed mean that the guest wants housekeeping to use duvets instead of bedspreads.

True False

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65

Strangely, the professional terms "hard goods" and "soft goods" mean the same thing: The weight of baggage being carried by arriving guests.

True False

66

The professional term "down lights" refers to lighting from above, such as lights above bathroom mirrors/sinks.

True False

67

Their name notwithstanding, bedbugs can be found throughout the room, not only in beds.

True False

68

Total Quality Management is more about error avoidance and less about error review.

True False

69

Unionized hotel workers are concentrated in the Prairie States (e.g., Iowa and Nebraska) and the Southeast (e.g., Alabama and the Carolinas).

True False

70

A "road warrior" is a frequent business traveler who sleeps away from home a great deal and battles the challenges of regular travel.

True False

71

Quality Management gains greater attention only during economic upswings because improved occupancy provides the resources needed to spend on this expensive extra.

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True False 72

Angry guests can be mollified if the employee who caused the problem is disciplined or, in serious situations, even discharged in front of them.

True False

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Chapter 8 Multiple Choice 1

More than ever before, innkeepers are striving to meet the environmental measures of: LED­ED AH&LA HSMA OSHA None of the above

2

Which of the following information about guests might appear on a foreign reg card but would NOT appear on a U.S. registration card?

Family name Home address Next destination Length of stay None of the above; they all appear on U.S. registration cards.

3

Check­in kiosks: Require guests to have a card (credit or debit); they don't take cash Give guests an option to select a different room than first displayed.

Direct guests to another lobby area to secure a key Take longer to process a check­in than does the desk

4

Electronic check­in terminals: Are talked about a great deal but are not often available Must be located within 100 feet of the computer terminals behind the desk Are more popular with experienced travelers than with inexperienced travelers Still lack the personal security that transient hotels should deliver Are talked about a great deal but are not often available, and still lack the personal security that transient hotels should deliver

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5

Registration cards contain statements that: Require guests to take ultimate responsibility for their bills Alert guests to the availability of room service Determine which bellperson takes the front Allow arriving guests to remain beyond the check­out hour All of the above

6

7

8

A hotel had 100% occupancy last night. Yet the guest­ service agent prepares to actually room a new arrival even before the first check­out the following day because: It was a DNS One room was a sleep­out The ADR was miscalculated There were reservation no­shows last night It cannot be done; the guest­service agent is mistaken Which of the following abbreviations has no application to innkeeping?

RNA DNA SPATT DLX K N/S None of the above; they are all hotel­related terms.

Management should consider doing what if registration lines are long and irritating?

Adding directional signs Increasing the number and character of the staff Creating distractions (clowns, for example) in the lobby Redesigning the physical structure of the front desk All of the above

9

To be assured of having a limited liability for the loss of guest valuables, hotels must: Adhere exactly to the requirements of the state laws Train guest­service agents to explain the regulations to new arrivals Put safes in every guest room Have certain employees (housekeepers, for example) cleared by a police check

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All of the above except train guest­service agents to explain the regulations to new arrivals 10

Urban parking is a revenue center for the hotel when it: Owns the garage Leases the garage Outsources the garage All of the above It is rarely a revenue maker for hotels

11

12

To forestall after­the­fact issues, desk agents repeat several "points of agreement" as part of the registration's close, including: The in­room security devices No­smoking room Date and hour of arrival Hours of the dining room (especially at MAP hotels) The in­room security devices and no­smoking room, OR date and hour of arrival and hours of the dining room (especially at MAP hotels) What terminology is used to identify the location that greets new arrivals?

Reception Registration Check­in Arrivals All of the above

13

The desk should be prepared for commercial guests, who typically arrive about _____ and depart on a later date at about_____.

10:00 A.M. to noon; noon to 2:00 P.M. 2:00 P.M.; noon to 1:00 P.M. 4:00 P.M. to 7:00 P.M.; 7:00 A.M. to 9:00 A.M. Noon to 2:00 P.M.; whenever their business is done None of the above; it is not possible to generalize.

14

Which of the following information on guests might appear on a foreign reg card but would NOT appear on a U.S. registration card?

Family name Home address Next destination

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Length of stay None of the above; they all appear on U.S. registration cards.

15

Registration cards contain statements that: Require guests to take ultimate responsibility for their bills Alert guests to the availability of room service Determine which bellperson takes the front Allow arriving guests to remain beyond the check­out hour None of the above

16

"Front" refers to the: Desk­the front­of­the­house Property­usually the guest's first view of the building's front Registration line­the next guest waiting to be registered Bell staff­the next bellperson designated to room a guest All of the above, except property­usually the guest's first view of the building's front

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Chapter 8 Short Answer 1

List three or more steps that management might take to speed up waiting lines that sometimes form as guests attempt to check in.

Answer: See the text and prepare your answer sheet by itemizing the myriad possible answers.

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False 1

Registration lines can be sped up by simply removing nonregistration services, such as change making or stamp purchases, from the front desk.

True False

2

Q­ing (queuing) is the lodging industry's professional term for a guest who squiggles out of paying for the room by claiming either poor service or injury.

True False

3

Urban hotels have a greater need for a doorperson than do resort hotels.

True False

4

The arrival process is an important moment of truth for every hotel.

True False

5

The earnings that hotels make from the doorperson's position is usually enough to cover the cost of salaries and uniforms.

True False

6

Walk­in guests are roomed more quickly than are guests with reservations because reservation­holding guests require the computer to be up and running, and this equipment fails at times.

True False

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7

It is quite possible that a "road warrior" will arrive at his or her room without ever interacting with a member of the hotel's staff.

True False

8

Resort hotels rely more on walk­ins than do urban hotels; urban hotels rely more on walk­ins (drive­ins) than do motor hotels.

True False

9

Members of frequent­guest programs are permitted to arrive early (before the check­in hour) and depart late (after the check­out hour).

True False

10

Union contracts designate the 10­minute rest period that guest­service agents are allowed every 4 hours as "On­ change."

True False

11

Handicapped guests are sent immediately to a room, even if housekeeping has not yet cleaned the room.

True False

12

The liability of hotels for guests' valuables was established by an act of Congress.

True False

13

A large party, including unrelated persons, would require more than one registration card, unless the entire bill is paid by one individual, who would then be the only

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person to register.

True False 14

Hotels have moved from a few no­smoking rooms to entire no­smoking floors. Eventually there may be hotels that are entirely nonsmoking, but we are not yet there.

True False

15

Aware that some guests are allergic to animals, hotels that accept pets alert other arrivals with appropriate signs on the door, just as hotels do for no­smoking rooms.

True False

16

Seeing­eye animals (dogs, monkeys, etc.) are admitted to every hotel, including those with a no­animal policy.

True False

17

Bellpersons should not address guests by name; it makes a professional situation appear to be a social one.

True False

18

Baggage­in and baggage­out is an important money maker for the bell departments of hotels doing a large group business.

True False

19

Bells earn commissions from car­rental companies, event venues, and tour operators for business booked through the bell desk.

True False

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20

"Front" is the term given to the entire desk and the reception area of the hotel; some properties even include the lobby.

True False

21

"Rooming a guest" is the process by which a guest­ service agent assigns a room to an arriving guest who holds no reservation.

True False

22

Bellhops are among the staff's most mobile population, so they must serve as the eyes of security.

True False

23

Most guests learn too late that using a credit card at registration prevents them from settling the bill with cash at check­out time.

True False

24

Hotels have a legal right to ask for cash payment in advance whether the guest tenders a credit card or not and whether the guest has baggage or not.

True False

25

The lodging industry started late, but it now leads most other industries as an advocate of sustainable development and eco­tourism.

True False

26

There's both truth and discomfort in this popular saying: "Eco­tourism is successful so long as it doesn't succeed."

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True False

27

Once advanced payment is made, "Paid­in­advance" guests are able to charge purchases (bar, dining room, etc.) to their folios (front­office bills).

True False

28

Guests who room themselves get their rooming slip directly from guest­service agents.

True False

29

Registration cards for guests with reservations are preprinted the night before arrival as part of the night audit.

True False

30

The 2002 Anti­Terrorism Act requires hotels to record the purpose of the guest's visit using the categories of business, pleasure, tourism, or transient (en route to somewhere else).

True False

31

The number of children in an arriving party is more important for an all­inclusive hotel than it is for a motor inn.

True False

32

Guests are addressed directly by name, but behind the desk it is their room number that identifies them.

True False

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33

To avoid antidiscrimination law and other legal harassments, most U.S. hotels now charge the same rate to everyone who comes.

True False

34

Special rates are given to persons in uniform (military and police), to clergy, and to governmental employees traveling on government "per diem" business.

True False

35

It's an old but accurate saying: "The fewer the rooms available, the easier it is to make a room assignment."

True False

36

"Upgrades" are promotions given to guest­service agents who meet specific selling targets; for example, selling rooms at rates higher than the average.

True False

37

VIPs, convention executives, and travel writers receive special attention from the hotel; they are often comped.

True False

38

Hotels must mail guests any personal items that they leave behind within 30 days although some state jurisdictions allow up to 60 days.

True False

39

Completing the individual registration cards of a group

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arrival (say, arriving by bus) is the desk's most time­ consuming procedure.

True False 40

"Sustainable development" is another term for, and is used interchangeably with "Eco­tourism."

True False

41

Guest­service agents "play solitaire" with the room rack by shifting room blocks and changing preassigned reservations as the arrival/departure pattern of walks­ins and check­outs becomes apparent.

True False

42

Property management systems (PMSs) are able to display vacant rooms (those available for sale) in only one format: room number sequence.

True False

43

Upgrades give the guests more value; upsells give the hotel more value.

True False

44

Hotels mail reservation confirmations less and less, but one cost of doing so is the loss of valid guest addresses, and therefore a lesser ability to track unpaid bills.

True False

45

Hotels have a great deal of personal information (guests' names, addresses, company affiliations, telephone and Internet records, credit­card data, guest histories) that make them targets for governmental antiterrorism actions.

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True False 46

Pet owners are generally unwilling to pay extra fees to accommodate their animals.

True False

47

To estimate the number of rooms available for sale today, the desk ties today's projections to historical records.

True False

48

All rooms in the same category (king rooms, for example) have the same room rate.

True False

49

Large, upscale hotels that can afford the extra payroll costs have avoided the use of check­in terminals, sticking rather to the personal reception offered by human agents.

True False

50

Because hotels have met the posting requirements of state laws, they have avoided costly legal settlements after guests have been injured or killed.

True False

51

Despite differences in size, type, and class, the registration process is almost standardized across the U.S. hotel industry.

True False

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52

As one would expect, the larger the hotel, the more structured is the choreography of arrival.

True False

53

Porte­cochère is a French term referring to the open lobby design (which started in Paris) where registration takes place at a table/desk with easy chairs and informal seating.

True False

54

Some urban hotels own and operate their own garages, some rent garage space (sometimes from the city), and still others lease the concession to a third party.

True False

55

A "walk­in" is the noun reference to the verb reference "walk a guest."

True False

56

Urban hotels have a greater need for a doorperson than do resort hotels.

True False

57

Membership in a preferred guest program allows guests to arrive before the check­in hour and stay beyond the check­out hour.

True False

58

The earnings that hotels make from the doorperson's position is almost enough to cover the cost of salaries and uniforms for that position.

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True False

59

Registration lines can often be sped up by simply removing nonregistration services, such as change making or stamp purchases, from the front desk.

True False

60

It is quite possible that a "road warrior" will arrive at his or her room without seeing a single hotel employee.

True False

61

Union contracts (not all hotels are unionized) designate the 10­minute rest period that guest­service agents are allowed every 3 hours as "On­change."

True False

62

Handicapped guests are sent immediately to a room even if housekeeping has not yet cleaned that room.

True False

63

The liability of hotels for guests' valuables was established by an act of Congress during the colonial period, although the actual dollar values have been changed often since then.

True False

64

A large party of unrelated persons would require more than one registration card, unless the entire bill is paid by one individual, who would then be the only person to register.

True False

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65

Hotels moved from a few no­smoking rooms, to entire no­smoking floors, and eventually to hotels that are entirely nonsmoking.

True False

66

Aware that some guests are allergic to animals, hotels that accept pets alert later arrivals with appropriate signs on the door, just as hotels do for no­smoking rooms.

True False

67

Seeing­eye animals (dogs, monkeys, etc.) are admitted to every hotel, including those with a no­animal policy.

True False

68

Most baggage mix­ups and delays come from assigning tour groups to one floor and one block of rooms, as so many hotels do.

True False

69

Under state laws, innkeepers (hotel owners and managers) are responsible for the full value of lost valuables once the arrival has met the legal criteria of "guest"; that is, once he or she has checked in and established credit.

True False

70

Algorithms are some of the newest in­room amenities being added by top­of­the­line hotel properties (Ritz­ Carlton, Four Seasons, etc.).

True False

71

Expecting more service, guests in the frequent­guest

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programs always go to the desk upon arrival rather than to the computer bank for self­registration.

True False

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Chapter 9 Multiple Choice 1

Which of the following are common practices with regard to employee rates?

Offering complimentary/discounted employee rooms is an inexpensive way for chains to supplement their employee benefits packages.

Special rates are always provided on a space­available basis.

Special rates are extended to employees of the chain when they travel to other properties.

All of the above Offering complimentary/discounted employee rooms is an inexpensive way for chains to supplement their employee benefits packages, and special rates are always provided on a space­available basis. But special rates are not extended to employees of the chain when they travel to other properties because other properties tend to be concerned only about their own employees.

2

Using the traditional or building cost rate, how much should a 200­room hotel charge per night if construction costs were $16,400,000 and land acquisition costs were $1,600,000? $82 per room night $90 per room night $98 per room night $110 per room night None of the above

3

Room rates: Are often adjusted higher or lower to reflect seasonal demand Should be high enough to cover variable costs and return a reasonable profit Must be reasonable enough to attract customers All of the above None of the above

4

When using the ideal room rate method, an actual ADR that is lower than the ideal room rate indicates: Guests do not see your higher priced rooms as a good value; in other words, they don't believe your premium

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rooms are worth the incremental rate spread above your standard rooms Your front desk is suffering from poor salesmanship Your front desk is doing an excellent job upselling rooms to guests Guests do not see your higher priced rooms as a good value; in other words, they don't believe your premium rooms are worth the incremental rate spread above your standard rooms, and your front desk is suffering from poor salesmanship.

Guests do not see your higher priced rooms as a good value; in other words, they don't believe your premium rooms are worth the incremental rate spread above your standard rooms, and your front desk is doing an excellent job upselling rooms to guests.

5

A given hotel has 150 rooms. Operating expenses run about $980,750 annually. Depreciation is scheduled at $645,500 per year. Additional costs (taxes, insurance, etc.) are expected to be about $226,750 for the year.

The owners require a reasonable return of $647,000 per year for their investment. Net income from other operated departments (like lounge and restaurant) is projected to be $500,000 annually. Calculate the Hubbart Room Rate required, assuming a 75% annual occupancy rate. $48.71 $73.06 $74.07 $26.67 None of the above

6

Using the traditional or building cost rate on brand new construction, how much should a 250 room hotel charge per night if construction costs were $21,400,000, land acquisition and improvement was $3,600,000, and FFE cost $5,000,000 (furniture/fixtures/equipment)?

They should charge $85.60 per room night.

They should charge $100.00 per room night.

They should charge $105.60 per room night.

They should charge $120.00 per room night.

None of the above

7

Based on the following information, calculate the ideal room rate: The hotel has 150 rooms (75 kings at $90 single and $100 double, 50 deluxe kings at $110 single and $125 double, and 25 mini­suites at $150 single and

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$170 double). The double occupancy rate is projected at 20%. $21.87 $106.67 $109.00 $164.33 None of the above 8

Room rates: May be seasonally adjusted for changing demand Must be high enough to cover costs and make profit Must be reasonable enough to attract customers All of the above are true None of the above are true

9

10

When using the ideal room rate method, if the ideal rate is higher than actual ADR, this indicates: You do not have a sharp enough contrast between your low­and high­priced rooms Your front desk is suffering from poor salesmanship Your front desk is doing a good job upselling You do not have a sharp enough contrast between your low­and high­priced rooms and your front desk is suffering from poor salesmanship You do not have a sharp enough contrast between your low­and high­priced rooms and your front desk is doing a good job upselling Use the following information to calculate a Hubbart Room Rate Formula: A given hotel has 225 rooms.

Operating expenses run about $1,110,000 annually.

Depreciation is scheduled at $445,000 per year.

Additional costs (taxes, insurance, etc.) are expected to be about $135,000 for the year. The owners require a reasonable return of $850,000 per year for their investment. Net loss from other operated departments is projected to be $400,000 annually. Assume a 65% annual occupancy rate. $55.08 $53.38 $40.09 $29.40 Either $53.38 or $29.40

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Use the following information to calculate an Ideal Average Room Rate Formula: The New York Metropolis Lodge has 350 rooms. There are three categories of rooms; 200 are standard rooms that sell for $80 (and $90 double occupancy); 100 are city deluxe rooms that sell for $110 (and $125 double occupancy); and 50 are executive parlors that sell for $145 (and $165 double occupancy). Assume a 30 percent double occupancy rate. $85.00 $97.86 $101.71 $105.56 None of the above

12

All else being equal, a reservationist should be trained to first offer the caller a: Package rate Convention rate Rack rate Weekend rate Flat rate

13

Suggesting that the guest might prefer to pay a little extra for better accommodations than he/she originally reserved is called: Upgrading Upselling Upclassing Upassigning All of the above

14

The Hubbart Room Rate Formula: Sets the ceiling on the maximum room rate Sets the floor on the minimum room rate Erects the walls (that is, the spread between rates for different room types) Is built around the yield management approach to rates None of the above

15

Use the following data to compute the building cost rule­ of­thumb formula: The hotel has 400 rooms. Income from all operating departments is $3,200,000 annually. Cost of land is

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$4,000,000. Cost of the building is $32,000,000. Cost of bank funds is 12% annually. Occupancy for next year is projected to be 72%. $29.59 $64.80 $90.00 $108.00 None of the above 16

Elasticity is a change in: Supply resulting from a change in rate Rate resulting from a change in supply Demand resulting from a change in rate Rate resulting from a change in demand None of the above

17

Which of the following is out of place with the rest of the set?

Day rate Shoulder rate Use rate Part­day rate None of the above; they are all synonyms.

18

Among the surprising surcharges that some hotels have added to their room rates are: Energy fees Resort fees Early departure (before the date specified by the reservation) fees Complimentary newspaper fees All of the above

19

The Building Cost (Room) Rate: Is simply a rule of thumb, a frequently quoted yardstick for room rates Works out to be $1 per $1,000 in construction costs Includes land improvements (landscaping, for example) as part of building costs All of the above Translates into rate distinctions for suites, standard rooms, and usually "view" rooms

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Regarding room rates: New York City has the world's highest ADR Upselling produces its most dramatic effects on sold­ out days Resort hotels have used incentive rates successfully to get leisure guests to check out early Conventions are often charged the same for single or double occupancy All of the above

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Chapter 9 Short Answer 1

Sketch or explain why one guest who stays in the hotel between 5 and 7 hours pays the same room rate as another guest who spends between 15 and 20 hours.

Answer: See Exhibit 9­13.

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False 1

Inelastic markets respond to small changes in price (room rates) with large changes in demand, either up or down. In other words, a hotel operating in an inelastic market would see a large increase in occupancy from a relatively small decrease in the average rate.

True False

2

Industry experience has proven that declines in both occupancy and average room rate can be recovered by aggressive rate­cutting.

True False

3

The rate spread (that is, the amount of difference in rate) between single and double occupancy is greater in European plan hotels than in American plan hotels.

True False

4

The hotel industry uses fewer rate categories today (perhaps three to five rate levels in the average hotel) than was customary a decade ago.

True False

5

If day­rate room counts are included in the occupancy computation, it is possible for a hotel to exceed 100 percent occupancy.

True False

6

Up­selling a guest checking in at the desk means giving him/her a nicer accommodation at no extra charge. This is also known as up­grading the guest.

True False

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7

In setting rates, the Hubbart Room Rate Formula focuses on the need to recover costs and return a reasonable profit.

True False

8

In setting rates, the Building Cost Formula rule­of­thumb focuses on cost of construction and land as opposed to the day­to­day costs of labor, food cost, supplies, and so on.

True False

9

The hotel's room rate is based partly on the prices charged by competing properties, and partly on the hotel's own internal cost structure.

True False

10

Lodging taxes paid by hotel guests often find their way into the community's coffers for use in a myriad of local municipal expenses.

True False

11

Hotel operators sometimes complain that lodging taxes they collect are used by the community for things that are not tourism­related. Such operators might argue that it is fine to use lodging taxes to help pay for a new convention center facility, but argue against using lodging taxes to help pay for a new prison.

True False

12

Mathematically, a 10 percent increase in occupancy will exactly offset a 10% rate discount. A 20 percent increase in occupancy will exactly offset a 20% rate discount.

True False

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13

The General Services Administration (GSA) of the U.S. government is responsible for setting annual per diem rates for cities to which government employees travel.

True False

14

Generally, the industry standard dictates that resorts charging anything over $211 per night will not charge guests a "resort fee."

True False

15

By law, any added surcharges or fees (e.g., energy surcharge, resort fee, or other nonroom surcharges) must be disclosed at the time of reservation, or the guest is not required to pay the fee.

True False

16

Front office guest service agents (GSA) should be trained to attempt to up­sell guests at the time of registration by offering a more expensive accommodation and only quoting the supplemental price difference. In other words, rather than saying, "You can stay in our luxury suite for only $345 per night" the well­trained GSA might say, "You can stay in one of our luxury suites for only $65 more than the standard rate you are already paying."

True False

17

The most expensive community in the United States with regard to lodging taxes is Albuquerque, New Mexico, with a 23.75% lodging tax rate.

True False

18

Just as operating costs dictate a minimum room rate that the hotel needs to charge, so competition sets a maximum that can be achieved.

True False

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19

Increases in lodging taxes impact on the elasticity of room demand just as if the rate itself had been increased.

True False

20

Per diem room rates are those established by the American Hotel & Lodging Association (AH&LA) for each major U.S. city, but all cities in the nation cannot be covered (generally those with populations under 50,000).

True False

21

Published rates (printed in advertising materials) and posted rates (legally required by state laws) must be the same.

True False

22

The double rate has always been twice the single rate; falling occupancies in the late 1990s and early 2000s were bolstered, in part, by this traditional approach to rate quoting.

True False

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Chapter 10 Multiple Choice 1

Which condition, if any, requires the guest­service agent (not the night auditor) to post room charges to a folio?

Day rate Paid­in­advance check­in Late check­out Penalty for understaying a reservation All of the above

2

3

By which of the following transfers can a register guest settle his/her folio?

From a guest folio to a credit card in the city ledger From a guest folio to a city ledger account To a guest folio from a credit card To a guest folio from a city ledger account From a guest folio to a credit card in the city ledger, and from a guest folio to a city ledger account A hotel's accounting day ends:

At midnight When local authorities decide the hour that bars must close At whatever hour management decides Usually an hour before the new day begins Never; hotels must remain open 24 hours a day.

4

If a folio shows cash paid out for a bellperson's tip, the folio also reflects: Either an increase or a decrease to the guest's folio balance A decrease to the guest's folio balance No change in the guest's folio balance An increase to the guest's folio balance All of the above

5

Which of the following items is NOT treated in Chapter 10, Billing the Guest Folio?

Recording sales Preparing the folio Sale of services Making credit decisions for weddings, retirement

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parties, and similar groups Accounting for each transaction 6

If comps are not registered: Hotels can legally avoid paying sales taxes There is no record of house count or room count Each guest is identified as a "who" All of the above An allowance journal must be used

7

In professional language, allowances are also called: Accounts payable Late charges Ledgers Master accounts None of the above

8

Nonregistered guests charge the bar drinks they receive: To room folios By means of the in­room TV set Using credit cards On corporate master accounts To room folios and by means of the in­room TV set

9

The "the power of the pen" is the authority to:

10

Sign hotel checks to settle account payable Issue comps Negotiate union contracts Enter into business contracts for the corporation Negotiate union contracts and enter into business contracts for the corporation Which, if any, of the following should be corrected with an allowance?

Duplicate posting to the folio Double occupancy charges for a single person Small late charge Comp rate All of the above

11

Which of the following terms DOES NOT belong to the

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set?

Allowances Rooms Ledger Guest Bill Folio Account Card 12

Another name for the cashier's well is: Cashier's bucket Cashier's drawer Cashier's envelope Split­billing Cashier's bucket or cashier's envelope

13

The city ledger would NOT contain which of the following categories?

Skippers Government taxes withheld Travel agents Association master accounts Advance deposits

14

15

Which of the following bits of information DO NOT appear on a folio heading?

Date of arrival Guest name Address Notice of safe availability None of the above; they all appear on the folio heading.

Companies or organizations that use master­account billing would interact with the: Sales office Credit manager General manager Housekeeping Sales office and the credit manager

16

Coupons are sometimes used with: Travel agencies Master accounts

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Per diem travelers Late charges None of the above 17

18

Which of the following departments would a full­service hotel NOT necessarily have?

Coffee shop Banquet facilities Swimming pool/spa Wedding chapel None of the above; a full­service hotel would have all of them.

Parties that owe the hotel, but are not registered, are called: Accounts payable Current guests DNAs City ledger guests None of the above

19

Which of the following terms mean the same thing?

Guest bill and folio Folio and ledger Ledger and night audit Night audit and allowance Allowance and guest bill

20

21

The guest ledger is also called the: Room­rate ledger Front­office ledger Registration ledger Visitor accounts (outside the United States) Front­office ledger and visitor accounts (outside the United States) Guests can access their bills by means of:

In­room televisions Terminals Under­the­door deliveries Guest­service agents All of the above http://l oc al hos t/v i ew ques ti ons _new 2.php?c at= 93&button= Subm i t

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Master accounts are always used for: Travel writers Convention groups Casino high­rollers (whales) Guests who occupy suites All of the above

23

The distribution of charges between a master account and a guest's personal account is called: Credit accounting Direct billing Split folios Comp allowances None of the above

24

Allowances are: Awarded to guest­service agents who achieve certain goals Reductions in the amount owed on a folio Admissions to private parties on the banquet floor The identifying numbers of the hotel's accounting system All of the above

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Chapter 10 Short Answer 1

Describe the two procedural differences in getting a bar charge to the front­office folio if: The hotel has a property management system with an interface to the bar's POS Or, the hotel does not have a property management system.

Answer: Text pages XXX and XXX contrast the two systems.

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False 1

Hotels use a special designation identified as "late charges" for guest postings that occur after midnight.

True False

2

City­ledger guests are billed immediately; registered guests are usually billed every 3 days unless they check out earlier.

True False

3

Registered guests have the same two choices as nonguests: Pay for services in restaurants and bars with either cash or credit card.

True False

4

An arrival date of 10/12/10 means October 12, 2010 everywhere across the globe.

True False

5

During the check­out procedure, hotels require guests to sign an agreement that they will accept responsibility for payment if a third party fails to pay.

True False

6

Hotels may require a guest to pay the bill at any time, even if the guest is not leaving.

True False

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7

The information that appears on the top of a computerized folio has its source in either the registration card or a previously made reservation.

True False

8

Hotels usually submit the bill for payment if the guest's account reaches a given amount of dollars (a sum determined by the class of hotel) whether the guest is leaving or not.

True False

9

Hotels decide how master accounts are to be handled (who signs for what, for example) at the time of negotiations­that is, before the group arrives.

True False

10

Large conventions can generate numerous master accounts from sponsoring companies, exhibiting companies, allied members, and, of course, from the group itself.

True False

11

Split billing for tour groups calls for "A" and "B" folios.

True False

12

It is most likely that some of the hotel's largest account receivables have never been registered as guests.

True False

13

Industry professionals no longer refer to a group of folios as a ledger because such terms were used in the pre­ electronic age.

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True False

14

Well­run hotels employ "best practices," one of which requires one folio for each person occupying a room.

True False

15

Every debit (charge) recorded on a guest folio must have an equal and offsetting credit, say, a departmental sale or a tax collection.

True False

16

Registered guests who sign for services in bars and restaurants may have those charges appear on their folios.

True False

17

Collecting for the night's room charge requires the night auditor, who is recording the charge, to track down each guest either by telephone or by Blackberry.

True False

18

Except for two unusual circumstances, every folio must have a zero balance at the time of departure.

True False

19

With high rollers and frequent­guest programs, the hotel itself is the A folio.

True False

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20

Preelectronic folios used + and ­to indicate charges and credits; modern folios use two columns (charge and credit) to do the same thing.

True False

21

Cash has become less and less important to the management of guest folios since both the hotels and their guests prefer credit cards.

True False

22

Because hotels are so open with people coming and going, registered guests must pay for their "purchase" (rooms, food, etc.) with cash or a credit card when the service is delivered.

True False

23

Master­account folios use formats (forms) different from those of regular front­office folios.

True False

24

Room sales is the industry's largest income­producing department.

True False

25

National accounting rules for lodging prohibit mixing pencil­and­paper systems with electronic posting systems.

True False

26

Most folio lines convey two messages: The amount the guest owes and the reason for that debt.

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True False

27

The chart of accounts that hotels use for their accounting records is confidential information, so employees are sworn to secrecy.

True False

28

Only the night auditor is authorized to post room charges.

True False

29

City­ledger folios are maintained much like front­office folios, one folio per available room.

True False

30

Point­of­Sale (POS) terminals enable departmental cashiers to post departmental charges directly to guest folios.

True False

31

Guest folios do NOT usually use dollar signs ($).

True False

32

At check­out, most guests transfer their city account to their front­office account using a credit card.

True False

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33

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As far as the guest's folio is concerned, taxes have the same impact as food sales, room sales, or bar sales.

True False

34

Guests are accounts receivable to hotels; hotels are accounts receivable to the government for taxes it collects on room sales.

True False

35

There are only three methods of paying (settling) a folio as the guest departs: cash, allowances, or transfers.

True False

36

Allowances are to hotels as returned merchandise is to retail outlets.

True False

37

Collection from a skipper account is rare; the amount is usually written off as a bad debt.

True False

38

Hotels ask for a credit­card number when taking a reservation, but they rarely­almost never­post the charge by opening a folio before the guest arrives.

True False

39

The widespread use of credit cards has accounted for the

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disappearance of hotel skippers.

True False

40

Hotel associations, such as the AH&LA, have lobbied state governments so successfully that in most jurisdictions only one class of sales tax can be levied against hotel room sales.

True False

41

Master accounts are like corporations: Both have legal identity separate from their individual members.

True False

42

Guests of some hotel chains can access their folios on line days after they check out from the property.

True False

43

Tour­group guests, those booking through a tour operator, have a lower room rate posted to their personal folios than do even leisure guests.

True False

44

After electronic folios (PMSs) replaced pencil­and­paper records, transfers between guest folios and city­ledger accounts almost disappeared.

True False

45

Paid­in­advance guests are uncertain credit risks, so they are not allowed to charge services from the operating departments to their folios.

True False

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46

U nti tl ed D oc um ent

Allowance for the hotel's mistake should be granted only if it is not possible to first remedy the situation.

True False

47

Property Management Systems (PMS) that use Point­of­ Sale (POS) terminals eliminate the vouchers, control sheets, runners, and late charges associated with pencil­ and­paper folios.

True False

48

Master accounts and their posting procedures should have been omitted from the text discussion because very few circumstances in the hotel business now involve master accounts.

True False

49

Active master accounts are in the guest ledger, but usually become city accounts after the group checks out.

True False

50

Only registered guests can have accounts in the city ledger; nonregistered guests have accounts in the rooms ledger.

True False

51

Transfers of folio values can be made guest folio to guest folio, or guest folio to city­ledger account, or city­ledger account to guest folio.

True False

52

Whereas other retailers­department stores, for example­

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send monthly statements, the hotel's statement is ready at a moment's notice.

True False 53

Unlike most other retailers, who collect as the sale is made, hotels wait for the guest to settle the bill.

Sometimes that wait may be several days.

True False

54

The folio is a current, accurate record of what the guest owes.

True False

55

A guest who owes (must pay) the hotel is known as an account payable.

True False

56

It is possible for someone to owe a bill to a hotel, even if he/she has never stayed even one night at the hotel.

True False

57

Once identified, individuals do not change categories: A transient guest cannot become a city guest, and a city guest cannot become a registered guest.

True False

58

Ledgers are the hotel industry's professional terminology for "dirty old men," a humorous take­off on lechers.

True False

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59

U nti tl ed D oc um ent

Hotel procedures change quickly, which makes many of the old accounting terms­"folio," for example­outdated.

True False

60

There is no major difference in the format (design/layout) of the modern folio, which takes its model from hand­ prepared folios that were once widely used.

True False

61

A patron who pays for drinks in the bar with a credit card must first have registered as a guest.

True False

62

If a customer pays for drinks in the bar with a credit card, the customer owes the credit­card company, and the credit­card company owes the hotel.

True False

63

The rule is firm: One folio per guest room is all that may ever be used.

True False

64

So long as a group is still in the hotel, its master account is a front­office record, which is pretty much a standard­ looking folio.

True False

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65

"Direct billing" means that the credit­card company is billed manually (by mail) rather than electronically.

True False

66

A traveling band, church, or boy­scout group traveling together is a good example of a "single­entity group."

True False

67

Room charges for individual convention delegates would be posted to the convention's master account.

True False

68

Room charges for individual convention delegates who all belong to one company might be posted to that company's master account.

True False

69

Depending on the nature of the convention, several master accounts could be generated during one convention.

True False

70

"Split billing" takes place when several unrelated individuals share a room and divide the folio's charges at the time of settlement.

True False

71

Very high rollers, sometimes called "whales," are comped at hotel/casinos.

True

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False

72

"Charges" on the folio decrease the account­receivable balance; "credits" increase it.

True False

73

Every accounting event (sale, allowance, tax collection, etc.) impacts at least two records in the hotel's accounting system.

True False

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Chapter 11 Multiple Choice 1

Cash is: Considered a liability in accounting terms Subject to both guest and employee dishonesty The only means of payment accepted by mom­and­ pop motels All of the above The most common method of payment used by accounts receivable

2

Employees who handle money must be on the alert for: Counterfeiters Bad check passers Photocopiers Short­change manipulators All of the above

3

The advantage/s of membership in PGPs (Preferred­ Guest Programs) is/are: Waiver of fees for bad checks Reduced charges for room service Check­cashing privileges First call on handicapped­room reservations All of the above

4

"Should have" and "does have" are meaningful for: Room reservation projections Cash over and short computations Room availability projections All of the above Comp counts for convention groups

5

Which of the following credit­card fees would a hotel NOT pay?

Set­up fees Per­transaction fees Programming fees Lease fees None of the above; hotels pay all these fees.

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Which of these costs result from credit­card "chargebacks"?

A chargeback fee paid to the credit­card company Loss of the value of the sale being charged back Tips added to the original check None of the above All of the above

7

Master accounts: Are usually used by heads of families May not exceed two per convention group Can be structured to exceed two per convention group Use basic front­office folios May not exceed two per convention group or can be structured to exceed two per convention group

8

9

Hotels render a bill (folio) whenever the: Week has passed Deposit has been used The total folio approaches a preset figure Daily charges exceed a preset figure All of the above except when the deposit has been used Which of the following has (have) a credit "floor"?

The guest The hotel The credit­card company All of the above None of the above 10

Due bank is also called: Difference returnable Due bill You­owe­me Exchange All of the above except due bill

11

Trade advertising contacts are also called:

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Trade­outs Reciprocal trade agreements Out­trades Due bills All of the above except out­trades

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Chapter 11 Short Answer 1

Explain to a foreign guest (and show your work) how the $220 folio balance will be settled at check­out if she tenders a 1,000 noddles (N) currency, which the hotel accepts at par value (1 N = $0.20).

Answer: 1 N = $0.20. Therefore, 1000 N = $200. An additional $20 must be paid.

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False 1

Because they are savvy individuals, most hotel guests settle their accounts with cash, avoiding thereby the cost of doing business with credit cards.

True False

2

Just as many predicted, the United States unofficially became a cashless society within the past 3 years or thereabouts.

True False

3

Cashiers at every department of the hotel (dining room, bar, etc.) take in and pay out cash throughout the business day.

True False

4

Before the POS was available, employees frequently came to the front desk to collect tips that were added to guest checks in bars and restaurants.

True False

5

Foreign exchange rates at ATMs are usually lower than those at foreign banks.

True False

6

Contractors install, maintain, and pay commissions for newspaper racks and cigarette and soda dispensers that they place in hotel lobbies.

True False

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A lobby concessionaire is appointed by the rooms manager to handle and resolve guest complaints.

True False

8

Outside businesses that service hotel guests (florists or guest laundry, for example) need the hotel to act as a middleman in collecting for services rendered.

True False

9

$100 dollars is the legal separation of regular transactions from petty­cash transactions (petty means "small") throughout most states and, consequently, most hotels.

True False

10

It takes longer for guests to check out if they elect to pay with cash.

True False

11

The night audit and the day audit are the same procedure, repeated by two different persons as a means of verification.

True False

12

Front­office­cashier reports are used in both the night audit and the income audit.

True False

13

Maintaining the same size bank for every cashier is the most accepted method of cash control in large hotels.

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True False

14

Most hotels allow cashiers to keep overages provided that they reimburse shortages.

True False

15

Front­office cashiers handle both cash receipts and cash payments; so do most F&B cashiers.

True False

16

"Due backs" may not be requested simply because the cashier has a drawer full of large bills.

True False

17

"Breakage" refers to the loss of room income when fewer guests arrive than were originally booked as a group.

True False

18

U.S. hotels that include foreign exchange at the desk will sell dollars, but not buy dollars. (That is, they will not sell their foreign currency.)

True False

19

Despite an ever­increasing flow of foreign tourists to the United States, few U.S. hotels operate a foreign­ exchange service.

True False

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20

In order to keep exchange costs low, hotel cashiers are instructed to make change in the foreign currency they have­perhaps the guest will even accept currency other than their own.

True False

21

Hotels have two types of accounts receivable: registered guests and city guests.

True False

22

Credit cards still keep their original distinctions: Bank cards were, and still are for individuals; T&E cards were, and still are for business use only.

True False

23

Despite their names, "debit cards" are really no different from "credit cards."

True False

24

Hoteliers and other retailers like debit cards because there is no float.

True False

25

Chip cards (digital cash) have electronic chips instead of magnetic strips.

True False

26

One could visualize future cell­phones morphing into smart cards.

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True False

27

Co­branded card­users get many of the special hotel privileges associated with frequent­guest programs (FGP).

True False

28

Under most convention contracts, hotels are required to charge the personal (room) folio of the individual who signed the voucher for a particular group event.

True False

29

A master folio is the control record that hotels use to balance the city­ledger.

True False

30

Split folios are used when one portion of the bill is posted in the guest ledger and the other portion is posted to the city ledger, but the split need not be 50/50.

True False

31

In order to be a "city" account, the guest must live within the city as delineated by the last national census; that opens the procedure to several difficulties.

True False

32

Three­day billing is standard procedure for banquet charges, master accounts, and speedy check­outs.

True False

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POSs, point­of­sale terminals, have almost eliminated late charges.

True False

34

Hotels can collect late charges with less difficulty if the guest has used speedy check­out instead of checking out at the desk.

True False

35

E­folios offer advantages to the business guest; to the company paying for that guest's travel expenses and for the hotel housing that guest.

True False

36

Passing bad checks is a criminal offense even if restitution is made.

True False

37

Some "due bills" are negotiable and traded on the open market, and some are not.

True False

38

Hotels use due bills most frequently during the economy's up cycle.

True False

39

Due­bill users are assigned the least expensive rooms

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because the media (TV, newspapers, etc.) run the hotel's ads in the poorest locations or times.

True False 40

The "dollar" denomination is unique to U.S. currency; no other country uses dollars.

True False

41

Good occupancy enables a hotel to adopt a conservative credit policy.

True False

42

All else being equal, a hotel manager would be more likely to extend credit for group room sales than for group food­and­beverage sales.

True False

43

The longer a bill remains unpaid, the more likely the bill will never be paid.

True False

44

Collection agencies use the same techniques (letters and telephone calls) that hotels can use for collecting bad debts.

True False

45

Chargebacks (or debit memos) take place when city­ ledger accounts are transferred (returned to) the guest ledger; an advanced deposit, for example.

True

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False 46

Assume that a sales manager had to choose between extending credit to a risky client for a cocktail reception and banquet or a corresponding dollar amount in hotel room sales. All things being equal, it would be better to choose the hotel room sales, because food and beverage sales have a lower profit margin and cost the hotel more per dollar of revenue than do room sales.

True False

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Chapter 12 Multiple Choice 1

Which of the following symbols is (are) used in the Housekeeper's Report?

NB: Baggage in the room appears to be worthless B: Baggage in the room, no occupant S: No baggage in the room; appears to be a Skipper PA: No baggage in the room; Paid in advance All of the above

2

Too early a closeout hour: Throws many charges onto the following day's folio and audit Probably increases the number of skippers Puts serious time pressure on the night auditor to finish Will likely reduce sales in cocktail lounges and room service All of the above, except probably increases the number of skippers

3

PMS are changing dramatically as hotels: Adopted and implemented HITIS Access the World Wide Web Install more and more dedicated software Use a Window environment All of the above except access the World Wide Web

4

Organizationally, the night auditor is most likely to be a member of the: Accounting department Front­office staff Legal division Manager's personal advisory group None of the above

5

Night auditors prepare: Bank deposits Cash overages and shortages Reports

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Long­distance telephone records All of the above 6

Which of the following does NOT belong in the set?

7

Speedy check out Zip­out check out No­wait check out VIP check out None of the above; they are the same process with different names.

Which of the following is NOT done electronically by a Property Management System?

Addition and subtraction Posting room charges Preparing reports Reconciling discrepancies between the Housekeeper's Report and the desk None of the above; the PMS does all of these.

8

An "Allowance Report" is an example of a(n): Reservation Report Room Status Report Registration Report Exception Report None of the above

9

10

Which of the following reports would be of the most help for management involved in planning new room additions to the hotel?

An Exception Report; a Skipper Report, for example A Credit Report; a Cumulative Charge Report, for example A Reservation Report; a Daily Analysis Report, for example A Rooms Management Report; Rooms out of Order, for example A Credit Report (a Cumulative Charge Report, for example), and a Rooms Management Report (Rooms out of Order, for example) Night auditors prepare both dollar­denominated and non­ dollar reports. An example of the second type includes:

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Tomorrow's arrival list Tomorrow's departure list Reverse housekeeper's report Front­office log All of the above 11

There are sales that may not appear within the night audit, such as: Nonregistered guests buying F&B services with credit cards Registered guests buying F&B services with credit cards Banquet sales posted directly to the city ledger Registered guests buying F&B services for cash All of the above

12

Accounts Receivable reports include: Permanent Guest Reports ADA Reports Pickup Reports Alpha Reports None of the above

13

Occupancy and Rooms Revenue reports include: Room count Room income House count Alpha list All of the above except alpha list

14

Zip­out check­outs, due to the nature of the process, have not included the use of: In­room TV sets Lobby consoles e­folios In­room telephones Envelopes

15

Which of these alphanumeric codes, widely used by the hotel industry, is NOT correct? √ = Occupied NS = No Show VD = Vacant and dirty

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OOO = Out Of Order DND = Do Not Disturb

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Chapter 12 Short Answer 1

List three reports within any one class of reports. For example, one item under Exception Reports might be "Comp Report." (Note: Your response may not use "Comp Report," because it was shown in the question itself.)

Answer: See text pages 513­528

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False 1

Charges and debits are interchangeable accounting terms.

True False

2

The night audit closes the hotel's day, which the American Hotel & Lodging Association (AH&LA) has set at 1 A.M., although exceptions are allowed upon petition.

True False

3

Pencil­and­paper night audits spend a great deal of time and energy uncovering errors caused by the very pencil­ and­paper system.

True False

4

Night auditor jobs are hard to fill because most of the U.S. states require that person to be a certified public accountant (CPA).

True False

5

Many nonaccounting duties face the night auditor when he or she is the sole employee on duty during the late­ night and early­morning hours.

True False

6

The night audit has grown less important in modern hotels because most guests now pay with credit cards rather than cash.

True False

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"Account Receivable" is an accounting way of saying, "That guy owes us money."

True False

8

The night audit audits all types of sales­cash sales; sales on account; sales throughout the hotel for rooms, food, bars, spas, and so on.

True False

9

The Daily Report to the Manager, which is prepared by the income or day auditor, is a more inclusive report than the Night Auditor's Report to the Manager.

True False

10

The night audit reconciles the hotel's accounts receivable nightly, whereas most other business types do that monthly or even less frequently.

True False

11

City­ledger receivables must be audited more frequently and more promptly than an audit for transient receivables.

True False

12

Writing $53.21 as $35.21 is called a transposition; writing $53.21 as $532.10 is called a slide.

True False

13

The closing balance of each day is the same as the opening balance of the following day whether the count is cans of peas, bottles of scotch, or accounts receivable.

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True False

14

If the night audit is to relied on, only the night auditor should be permitted to post room charges and taxes.

True False

15

Simply put: The night audit proves that all cash sales by registered guests have been recorded and the guest folios have been properly charged.

True False

16

Management should contact the room­and enter it, if necessary­if the "Do­Not­Disturb" sign remains there throughout the day.

True False

17

A "Reverse Housekeeper's Report" goes from the linen room to the floor housekeepers rather than by the traditional route, from the floor housekeepers to the linen room.

True False

18

Uncovering errors is not the real purpose of the night audit; correcting records is.

True False

19

"The total equals the sum of the parts" means that the total income charged to individual account­receivable folios should equal the total of charged sales recorded for that particular department.

True False

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20

Both wage­and­hour regulations and union contracts prevent night auditors from remaining beyond their work hours, even if they have failed to balance within the shift.

True False

21

Night auditors can do their jobs even if they do not understand the accounting difference between a debit and a credit.

True False

22

If a PMS crashes at, say, 8:00 A.M., it is not possible to accurately check out a guest at, say, 8:15 A.M. True False

23

POS terminals electronically connect the various departments to the PMS, except for telephone calls, which must still be manually posted to the folio.

True False

24

One would expect an Arrivals Report to help the bell­ service department.

True False

25

Many computer­prepared reports are "dumped" 24 hours after they were printed.

True False

26

Both pencil­and­paper audits and electronic audits use similar, sometimes identical, departmental control

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sheets.

True False 27

As their title suggests, "Exception Reports" are not usually prepared during the night audit; they are exceptions prepared only when management seeks special information.

True False

28

By using "turnkey" installations, the hotel industry has slowed innovation and stalled the development of new uses for Property Management Systems.

True False

29

"Today's opening balance must equal yesterday's closing balance" is an issue for pencil­and­paper audits but is not a factor for electronic audits.

True False

30

To speed check­outs, folios of departing guests may be placed under the guest­room door, even if the hotel offers in­room television access.

True False

31

Property Management Systems capture a great deal of information that can then be arranged and reordered in a variety of reports.

True False

32

An "on­change" report indicates which guest rooms are undergoing renovation and when they will be ready for sale again.

True False

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The night auditor reconciles only account­receivable sales.

True False

34

Property Management Systems require unit managers to wait for nightly reports rather than having the data for operational decisions throughout the day.

True False

35

Restaurant POS terminals reduce bad debts by rejecting invalid meal checks from guests who have already checked out and/or paid in advance.

True False

36

We're not there yet, but a computerized system might eventually display information such as the number and identity of vacant king rooms.

True False

37

"Downtime Reports" are used whenever the night audit crew takes a break for rest or meals.

True False

38

The Night Auditor's Report to the Manager contains a running (cumulative) balance of accounts receivable at the desk, cans of peas in the storeroom, and bottles of scotch at the bar.

True False

39

Information on the Night Auditor's Report may be

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changed as a result of the income auditor's work.

True False

40

Having a credit manager on duty is more important to the operation of a highway motor inn than for an upscale, four­star hotel.

True False

41

Two ratios, the Percentage of Occupancy (%) and the Average Daily Rate (ADR), are among the statistics included on the Night Auditor's Report to the Manager.

True False

42

A Room Status Report shows rooms occupied, vacant, out­of­order and on­change for a particular day although it is prepared as part of the night audit.

True False

43

A well designed credit­limit report would list the outstanding balance of every folio so the credit manager could see how close any particular balance (folio) was to the limit.

True False

44

Yield Management depends on current and accurate information about reservations, the very information provided by the Reservation Reports of a PMS. True False

45

PMS systems are reliable enough that backups are needed only once a week.

True False

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The most valuable communication tool for the front desk and housekeeping is the Room Productivity report.

True False

47

Room count and house count are both terms for the number of rooms occupied.

True False

48

While it is true that the closing balance on one day's rooms, guests, and dollars should equal the opening balance of the following day of these tallies, the Change Report highlights the exceptions that occur between the two.

True False

49

Sleep­outs are rooms with guests who have not received their baggage due to transportation mishaps.

True False

50

The Housekeeper's Report is generated by the front desk for housekeeping.

True False

51

The Reverse Housekeeper's Report is also called the Room Occupancy Status Report.

True False

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Pencil­and­paper folios are used to create emergency backups in the event of a PMS crash.

True False

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Chapter 13 Multiple Choice 1

Which of the following statements about electronic locking systems is NOT accurate?

The keycard console is a large piece of equipment kept at the front desk.

The system can include one­way or two­way communication.

Each guest gets a new or recycled keycard.

Lost keycards are inexpensive to replace.

None of the above; they are all accurate.

2

Ergonomics deals with: A new interface for PMSs The obsolescence of computer equipment The economic meaning of hotel statistics The interaction of persons and equipment All of the above

3

HOBIC means: Hotels Of [the] Best International Chains, an affiliated rating service Hotel Billing Information Center, a telephone system Hospitality Overseas Building Into [a] Chain, an Asian form of joint venture Hotel Oversight By Independent Council, a hotel group that evaluates technology None of the above

4

"Voice mail" deals with: Automatic morning wake­up calls Tentative attempts at machine­answering reservation systems Electronic Methods oftranslation activating services the PMS for international guests None of the above

5

The term "resort services" refers to:

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An all­inclusive offering at some resorts The mix of in­house and out­of­house capabilities, primarily at Caribbean resorts Additional fees levied by some properties over, and in addition to the room rate Advertising jargon used by four­and five­star resorts An all­inclusive offering at some resorts, and the mix of in­house and out­of­house capabilities, primarily at Caribbean resorts 6

TV sets can be used for: Welcome messages for new arrivals Menus for room service Zip­out check­outs Pay­per­view films All of the above

7

"Ma Bell" refers to: The first woman innkeeper in the U.S. colonies Industry slang for the silver bells once used to call bellhops AT&T, the telephone company A warm reference to Martha Bell, founder of the Bell Hotel Chain None of the above

8

HVAC is the responsibility of the ___________ department.

Bells (Uniformed Services) Housekeeping Front Desk Engineering All of the above

9

In­room hotel safes can be activated by: Magnetic stripe cards Codes (digital) entry Keys Biometrics All of the above

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10

Regulatory control of the hospitality industry's telephone system rests with the: AH&LA FCC INNCOM International Inc. AT&T None of the above; telephones are not regulated.

11

Telephones, like locks and safes and minibars, have gone through stages of development. These stages are: High speed; dial­up; wire; wireless Dial­up; VoIP; operator­assisted; wireless Operator­assisted; Internet; dial­up; high­speed wire Dial­up; high­speed wire; wireless; VoIP All of the above because it is difficult to say which came first

12

Self­service kiosks: Make change for foreign currency Imply, forextra manyincome guests,by that management is uncaring Generate accepting advertising Have replaced telephone booths in lobbies Make change for foreign currency and generate extra income by accepting advertising

13

14

Voice­over­Internet Protocol is identified as VOIP VoIP IP telephony Broadband telephone All of the above; the terminology is somewhat in flux (changing).

Internet­based systems:

Allow guests to register before arrival Enable departed guests to review folios over the Internet Rely on debit cards, not credit cards Use guest­room control panels to upgrade service Allow guests to register before arrival and enable http://l oc al hos t/v i ew ques ti ons _new 2.php?c at= 105&button= Subm i t

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departed guests to review folios over the Internet 15

Proximity­based apps do not include: Coupons offered while outside a retail establishment Announcements of programs starting within walking distance Casino games and events Guestroom access None of the above

16

17

Guest room keys with two­way communication enabled still cannot access: Parking garages Concierge floors Fitness rooms The pool None of the above, since they can gain access to all of them.

Hotel­related smartphone apps are gaining momentum; they are already being used for: Suggestive selling Check­in Upselling Payment All of the above

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Chapter 13 Short Answer 1

List and describe two factors that management should weigh before buying and installing a new interface to its Property Management System.

Answer: Answers might include: Amount of synergistic gain (or loss) A cost­benefit analysis The degree of degradation Availability of fail­safe devices More...

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False 1

The recent spurt of hotel technology comes as no surprise. Hoteliers have always been technology leaders, investors, and innovators.

True False

2

Hotelkeeping is highly segmented; even the "big guys" are small as business enterprises are measured.

True False

3

The hotel industry under the leadership of the AH&MA (now the AH&LA) was at the forefront of new technology: researching and investing large sums during the 1990s.

True False

4

Early technology, such as ice machines in the room or on the floor, was designed and seen primarily as labor­ savings devices.

True False

5

Call accounting systems (CAS) post telephone charges directly to guest folios through an interface with the PMS. True False

6

Amenity creep (i.e., competition) pushes hotels to adapt new technology rather quickly.

True False

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7

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Telephone departments became profitable after federal deregulation and have remained so ever since.

True False

8

If guests are unable to distinguish one hotel property from another, the product that innkeepers sell becomes a commodity and price becomes the major determinant of the purchase.

True False

9

Wireless Internet carries a cost: Security breaches of private conversations are a real possibility.

True False

10

Monitors no longer use CRTs, cathode ray tubes, because they emit dangerous radiation.

True False

11

Key chronology (sequence) runs something like this: First, there were no keys; then ELS with card keys; iron keys came next; mechanical keys followed; RFID (radio frequency identification) keys are on the horizon.

True False

12

Mechanical keys carried the hotel's name and room number on the tags, putting security in doubt.

True False

13

Biometric systems are not popular because they require guests to have a fixed (national) PIN (number) that can be used at any site within the country.

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True False

14

Most U.S. hotels now use some form of electronic locking systems (ELSs).

True False

15

"Hard­wired key systems" are a misnomer (incorrectly named) because there are no wires in a hard­wired system.

True False

16

One disadvantage of ELSs is the long delay between the guests' arrival at their rooms (after registration) and the system's inability to give them immediate room access.

True False

17

Keycards for ELS are inexpensive plastic that quickly disintegrates after use, especially at resorts where sun, water, and sand interact with the material.

True False

18

Keycards can be recycled; they can be used for another guest and another room.

True False

19

Two­way communication systems for electronic locks enable guests to access locked areas other than the guest room­swimming pools, parking structures, and exercise facilities.

True False

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20

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Elevator access to the concierge floor can be controlled through an electronic locking system.

True False

21

Energy management has grown in importance because energy is the industry's second largest operating (variable) cost after labor.

True False

22

A body­motion detection system is the first line of defense in fire safety.

True False

23

Someone using the terms "sold," "sold and occupied," "sold but unoccupied," and "unsold (or vacant)" could be talking about an energy management system.

True False

24

The Hotel and Motel Fire Safety Act is a federal law that itemizes the fire safety equipment and procedures that hotels must have if they accept interstate guests, essentially anyone.

True False

25

Even early versions of in­room minibars were profitable despite the labor costs associated with counting and restocking inventory.

True False

26

Automated in­room minibars are interfaced with the PMS, so late charges from missed counts and early departures

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have been reduced.

True False 27

Many hotels bought in­room safes on credit by sharing safe income with the safe's seller/manufacturer.

True False

28

Electronic locks battle external theft; in­room safes reduce internal losses caused chiefly from temptation.

True False

29

Strange as it may seem to sophisticated electronic users, in­room alarm clocks are a must for most travelers.

True False

30

Guests have rushed to adopt biometric security in hotels and motels just as they have done as travelers at airports and at industry sites.

True False

31

"Interstate" and "intrastate" mean the same thing; local customs have produced different eastern and western spellings.

True False

32

Guests prefer centralized HVAC systems over individual in­room installations, which are so noisy.

True False

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33

Most hotel chains have broadband, high­speed Internet connections, which could be used as low­cost telephone servers (VoIP).

True False

34

Even in a period of rising costs, technology costs continue to fall relatively.

True False

35

For hotels, technology's greatest impact has been at the desk, with the PMS. True False

36

It may be an anomaly (a contradiction), but self­service kiosks are seen to be an improvement in service.

True False

37

Hotels adopted electronic locking systems despite the ease and speed of changing locks and keys with manual key systems.

True False

38

HTNG (Hotel Technology, the Next Generation) is just that: the next generation after HITIS (Hospitality Industry Integration Standards).

True False

39

With all the advances in technology, it is very easy today

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to impress guests with a hotel room that is more advanced than a guest's own home.

True False 40

State­of­the­art hotels have eliminated the physical front desk, opting instead for hand­held devices.

True False

41

Even though most of the check­in function can now be performed with a mobile device, doorlocks and swiping of credit cards use hard­wired machines so a front desk space is still required to complete the check­in.

True False

42

Because of the constant need to respond to amenity creep, innkeepers have always been technology leaders.

True False

43

Hoteliers' use of technology had to mature with its rapid introduction, learning to use it for the right reasons in order to reap the benefits.

True False

44

Because of the competitive environment in the hotel industry, cost/benefit analysis is rarely done when looking to upgrade technology.

True False

45

Strangers often slept in the same bed in inns during colonial times and keys were not used.

True False

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46

During the times when less­bulky brass keys were used by hotels, they were so costly to replace that hotels did not change locks just because a key was not returned, so found keys could be used by thieves.

True False

47

With plastic tags, keys follow the room, not the lock.

True False

48

Plastic keys are a form of mechanical locking system.

True False

49

With plastic keys, the design of the lock establishes a hierarchy of keys to open the door; previous keys are rejected by the lock.

True False

50

While plastic keys allow access through a hierarchy, deadbolts cannot use the same system due to their physical constraints.

True False

51

Since hard­wired systems can use the existing wiring in any hotel, they are relatively inexpensive to retrofit.

True False

52

Hard­wired ELS transmit a new code for room access

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before the guest arrives at their door, invalidating the previous code simultaneously.

True False

53

Microprocessor­based ELS are ideal for retrofit hotels.

True False

54

ELS microprocessors, since they are so small, can provide little information beyond holding the room access code and unlocking the door with card use.

True False

55

With two­way ELS communication systems, the key communicates with a central database, giving guests freedom to use the card for access to more than just their rooms (the pool area, for example).

True False

56

Since magnetic stripe cards hold more than one track in their magnetic strip, they can carry more than lock access (a guest's credit card number being a common use of a secondary track).

True False

57

The use of an RFID locking system allows guests to keep their tags for each visit, a major step in service for frequent guests.

True False

58

Even a guest who arrives with an RFID tag still needs to go through a brief front desk check­in process to receive the new code for room access.

True

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False 59

RFID locks are close­proximity systems requiring a physical contact with the door's locking device.

True False

60

Since RFIDs track a guest's overall movements, scrutiny of places visited and time spent there is useful for marketing promotions or tracking conference attendance, to name just two uses.

True False

61

Biometric locking systems provide security because they are one­way communication systems.

True False

62

In spite of potential privacy risks with biometric systems (your iris ID ending up in the wrong hands), adoption of these systems is increasing because of the ease they provide in the guest experience overall.

True False

63

With all the improvements offered by RFID systems, smartphones stand to replace them via apps that allow for close­proximity room access.

True False

64

With increased use of smartphones in the hotel setting, the opportunities abound for upselling and suggestive selling.

True False

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65

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Hotel rooms are designed to provide the best of the product they supply­a good night's sleep on a comfortable bed in a clean environment. As such, they do not focus on providing state­of­the­art technology in the room.

True False

66

Tap to Pay refers to a smartphone application that simply requires a tap of the device to the payment terminal to record and accept a guest charge.

True False

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Final Exam Matching 1

Match the following:

Part of the master account "A" folio Employees can act Empowerment Profit before fixed expenses EBITDA New York City has one CVB A corporation, but not a REIT C­Corporation Device for heart­attack victims Defibrillator Denied reservation request Regret Web site with nonbranded sales Opaque site Pit or bucket Well http://l oc al hos t/v i ew ques ti ons _new 2.php?c at= 125&button= Subm i t

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Key E­type Computer display Menu In­room amenity Minibar Tip and tax inclusive Plus, plus Bed type Hollywood Author Vallen Not listed Secret shopper

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Final Exam Multiple Choice 1

2

The lodging industry has several characteristics including: A highly perishable product Low turnover of employees An almost zero level of fixed costs ("the nut") Minimal competition from other industries Low turnover of employees and minimal competition from other industries If the lodging industry has about 4,000,000 rooms and something like 2,100,000 employees working in approximately 50,000 hotels, the average hotel is less than _____ rooms in size with an employee/room ratio of approximately _____.

50, 0.5 50, 2.2 100, 0.5 100, 2.2 None of the above

3

Early departure fees: Have been enthusiastically accepted by guests who were walked previously because their reserved rooms are now assured Are an understay penalty that has not achieved wide usage Were started by credit­card companies after they experienced high chargebacks Generally do not apply to AAA or AARP reservations All of the above

4

5

REVPAR can be increased by: Increasing food prices in the dining room Increasing the break­even point Petitioning for a decrease in real estate taxes Encouraging the sale of double occupancy Increasing food prices in the dining room and increasing the break­even point Which of the following statements is most true?

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Leisure guests are more inelastic.

Commercial guests are more inelastic.

Government employees are more inelastic.

Retirees are more inelastic.

Commercial guests are more inelastic and retirees are more inelastic 6

The break­even point (as measured in percentage of occupancy) of the hotel industry: Is more than 85% occupancy for most hotels Is a measure of room sales only Goes down as RevPar goes up Goes up step by step with double occupancy All of the above

7

8

Back­to­back refers to: Tour groups coming one after another Plumbing installations in guest rooms Sequential visits from representatives of OSHA and ADA Union movements to organize a hotel after the first effort fails Tour groups coming one after another, and plumbing installations in guest rooms Among the components of Quality Control is/are:

Carrying out inspections Having bell service Providing automatic elevators Rotating employees between departments All of the above 9

The lodging industry experienced a serious decline in occupancy during which of the following periods?

World War II, 1940s The great oil embargo, 1970s The collapse of the banking system, 1980s Following the Twin Towers attack, 2000s All of the above except World War II, 1940s

10

"Yes I can" is a(n):

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Quality guarantee Aphorism (short saying of a basic principle) of quality management Easy method for handling complaints Moment of truth Upselling 11

Check­in kiosks: Require guests to have a card (credit or debit); they don't take cash Give guests an option to select a different room than the one first displayed.

Direct guests to another lobby area to secure a key Take to process a check­in than does the desk All of longer the above

12

To maintain quality management, managers rely on feedback from: Logs of guest complaints Lists of allowances Secret­shopper reports Guest questionnaires All of the above

13

Even if occupancy is very low, guest­service agents would block rooms early in the day for reservations from: Handicapped guests Commercial guests Families that request connecting rooms Conventioneers within the convention block Early arrivals

14

Overbooking is monitored by the: IRS FCC FTC DNS OSHA

15

Which of the following group members pays the hotel directly for his or her room accommodations? (The others

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are paid for by the entity.)

Incentive tour members Tour group members Members of a high school basketball team Convention attendees Incentive tour members and members of a high school basketball team 16

Hotel desks use abbreviations, colors, and symbols to convey information, with some communicating the same fact in different ways. For example, "VIP" can also be represented by: OOI WI SPATT QM None of the above

17

18

Individuals in a tour group would pay the hotel directly for: Their room rate Items included in the package Items not included in the package Items posted to their B folio Items not included in the package and items posted to their B folio "Single" and "double" refer to the:

Room rate Type of bed S and D Number of guests who could be housed in the room All of the above 19

A rule of thumb: Is a simple computation that produces a generalized answer Reduces the room rate by income generated in other departments Deals with the water temperature in the spa Is an estimated ADR All of the above

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20

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Lodging's budget segment is divided into several parts.

Which of the following is NOT one of those parts?

Hard budget Upscale budget A room 15 feet × 17 feet Capsule room A room 15 feet × 17 feet and capsule room Errors in addition may be identified by looking for: A slide, where 5,321.00 is recorded as 53.21 A where 5,321.00 is written as 10, 5312.00 Antransposition, error that is reflected by differences of 1, 100,

22

1,000 A figure that is evenly divided by 9 A slide, where 5,321.00 is recorded as 53.21, and a figure that is evenly divided by 9 Charges for room and tax are posted by the night auditor except in cases of: Late check­out Day­rate use Use­rate use Failure to stay through the reservation commitment All of the above

23

A "No Luggage" report would be an example of a(n): Accounts receivable report Zip­out check­out report Exception report Closeout hour report None of the above

24

Reports can be grouped into classes. Which of the following classes would be the most helpful to the yield manager for forecasting and setting rates?

Exception reports Reservation reports Credit reports Downtime reports Exception reports and downtime reports

25

Which of the following is/are costs of extending credit?

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Float Increased bed taxes Frees earned Decrease in bad debts All of the above 26

Which of the following measures would NOT be applied to developing brand equity?

Broad distribution Standard level of service Availability of conference accommodations Consistent quality Instant identification

27

An "on­change" room is a room: Due to have weekly linens changed Ready to change from OOI to OOO Being readied by housekeeping between guest occupancies Being remodeled from guest accommodations to offices None of the above

28

29

30

Microtel, a budget chain, had the slogan "Don't sleep with amenity creep," meaning: Guests shouldn't pay for unnecessary amenities Hotels should add coffee makers to save guests time Leisure guests and business guests usually want the same amenities Data ports is one amenity that everyone wants Hotels should add coffee makers to save guests time, and leisure guests and business guests usually want the same amenities Which of the following parties negotiates hotel rates or space, but never occupies a room?

Company travel desks Travel agents Wholesalers American Automobile Association All of the above; they all negotiate, but never take occupancy.

Which of the following applies to conference centers?

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Double occupancy is low.

Weekend occupancy is high.

Meeting space is dedicated.

Growth in this segment of the market has stopped.

All of the above 31

Timeshares are also called: Interval ownership Vacation ownership Vacation clubs Fractionals All of the above

32

When sales departments negotiate: Room cost is a critical element when dealing with incentive groups Comp rooms are given almost automatically to large groups at a 10:1 ratio Quality is a critical element when dealing with incentive groups Accuracy in billing is a critical element when dealing with conventions Quality is a critical element when dealing with incentive groups, and accuracy in billing is a critical element when dealing with conventions

33

The time selected for the closeout hour of a hotel does NOT depend on the operating hours of: Lounges Room service Housekeeping Restaurants None of the above; it depends on all of these.

34

RFID locks, having no keycard slot and no keyhole, offer all of the following advantages except: Ease of access for the handicapped Less maintenance One­time use due to code expiring Codes being erased when in close proximity to cell phones

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Failing to work at the guestroom door 35

The Meetings industry utilizes mobile apps in a variety of ways, including all of the following except: Access to the conference's folio to make adjustments Interactive maps of the exhibit hall Accessing the event's social media feed "Bump" exchanges Synopsis of each day's seminars

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False 1

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

True False

2

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

True False

3

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

True False

4

"Location, location, location" can be reinterpreted as "Geography is to the resort, as population is to the residential hotel, and location is to the commercial hotel."

True False

5

The typical lodging facility in the United States is between 250 and 300 rooms.

True False

6

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

True False

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7

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

True False

8

Viewed as commodities, where the buyers' attention focuses on price (as, say, with Priceline.com), hotel rooms lack brand equity.

True False

9

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

True False

10

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

True False

11

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

True False

12

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

True False

13

One demographic measure of hotel guests focuses on "upstairs" buyers as a different segment from downstairs buyers.

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True False

14

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

True False

15

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

True False

16

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

True False

17

The executive housekeeper operates from an office that is often called the "linen room."

True False

18

Hotels that award frequent­flier points as part of their frequent­guest programs need to buy those points from the airlines at a cost of a several cents per mile.

True False

19

Hotel A has a ratio of available rooms to total rooms of 80%. Hotel B's ratio is 95%. In all likelihood, hotel A is a newer hotel than hotel B. True False

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20

U nti tl ed D oc um ent

For housekeeping, the sequence is room ready, room occupied, room on­change, room ready.

True False

21

A budget motel of 100 rooms might have as few as 30 employees, whereas an upscale property of 400 rooms might have as many as 500 employees.

True False

22

By definition, properties with outside access to guest rooms are called "motels"; properties with inside corridors are called either "motels" or "hotels."

True False

23

"Building Cost Per Room" or "Resale Value Per Room" is a recognized method of estimating the value of a hotel.

True False

24

The room count process tracks stayovers and today's reservations.

True False

25

Because hotels are pieces of real estate as much as they are operating companies, the cost of borrowing (interest) and the rate of local taxes impact the decision to build or buy in a certain locality and at a certain time period.

True False

26

Overbooking the hotel requires an educated guess. Too conservative a projection, and the hotel is forced to walk

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overbooked guests; too aggressive a projection, and the hotel is left with unsold rooms.

True False 27

The term "double occupancy" includes the possibility of three or even four guests in one room.

True False

28

More postings to the folio are debits than credits.

True False

29

Strategic Account Managers are assigned to the master account of a large group event.

True False

30

It makes no difference in the computation for the daily percentage of room occupancy if the unavailable rooms are "out­of­order" or "out­of­inventory."

True False

31

Early arrivals, cancellations, and no­shows reduce the number of rooms available for walk­ins on any given day.

True False

32

Room count is the number of rooms occupied, and house count is the number of guests in the house; together, they compute the percentage of occupancy.

True False

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33

Opaque web sites disassociate the name of the hotel from the deeply discounted rate until the transaction has been completed.

True False

34

The supposedly absolute rule that folios are always reduced to zero at check­out has exceptions.

True False

35

Periodically, perhaps quarterly, hotels settle their debt (created by collecting sales and room taxes from guests) with local or state governments.

True False

36

Hotels should never allow guests to settle their folios at any time other than at check­out, when they are actually departing.

True False

37

Upselling a guest at check­in takes listening skills on the part of the front desk clerk to quickly assess a need that may be addressed with a better (and more expensive) accommodation.

True False

38

If management grants a folio allowance because a guest vehemently complains about an absolutely poor experience in the gourmet dining room, it will be charged against room income.

True False

39

Breakage on IT packages offered by the hotel accrues to

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the benefit of the guest who bought the package.

True False 40

Hotel guests who reserve through travel agencies often present a travel­agency voucher, which they expect the hotel will honor for the value of the deposit made to the agency.

True False

41

The major difference between similar sounding plans (the Continental plan, the Bermuda plan, and the English breakfast plan) is the method of charging, or not charging for breakfast within the room rate quote.

True False

42

Hotels may refuse accommodations to any persons who are unwilling or unable to pay in advance for their accommodations, including minority persons.

True False

43

The hotel's chart of accounts is a secretly coded list of accounts that differs from hotel to hotel, the idea for which originated in casino hotels' need for privacy.

True False

44

SMERF is the abbreviation used to indicate pet­friendly hotels.

True False

45

A single entity group (a troupe of traveling performers, for example) may have all of their rooms charged to one master folio, also referred to as the A folio.

True

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False 46

It is helpful to visualize the guest ledger as being at the front desk and the city ledger as being in the accounting office, but in computerized hotels these have no real physical location.

True False

47

A large convention may have numerous master accounts, which the hotel must track separately, True False

48

The "AIG" Effect" refers to the American Inclusive Tour.

This has become the standard for group bookings in the United States.

True False

49

Condominiums were developed in the ski resorts.

Timeshares, which came later to the United States, were developed in the sunshine states.

True False

50

Quality service in innkeeping is a personal, in­your­face experience that distinguishes it from other service industries and especially from manufacturing.

True False

51

Management companies grew rapidly when banks needed on­site management after the banks had foreclosed on hotels that were unable to pay their mortgage debts.

True False

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52

In a sale­and­leaseback, a hotel company sells its building to an investor, who then leases (rents) the operation to the hotel company that just sold the building.

True False

53

U.S. spas were originally established around the supposedly curative value of special waters.

True False

54

Kemmons Wilson's Holiday Inn chain proved the importance of flagging properties with recognizable logos and helped speed the development of hotel franchising.

True False

55

The REIT Modernization Act made one change that is very positive for the lodging industry: It now allows REITs to manage the properties they own.

True False

56

Hotel leases are popular when times are good (during the industry's up cycle); management contracts are popular during the down cycle.

True False

57

It's obvious: Flatter organizations that eliminate middle managers force decision making to stay in the hands of upper management even though it makes for a leaner organization.

True False

58

An independent observer would consider the registration encounter a "moment of truth."

True

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False

59

Quality guarantees are part of the yield management system; they are put into place when occupancy is medium to low, and discarded when occupancy nears full capacity.

True False

60

Franchise buyers pay several fees for the right to franchise, including a fee for the sign that identifies the franchise.

True False

61

Professional lingo (language) uses three different terms to refer to nonpaying guests: skippers, sleepers, and whos.

True False

62

The company that sells a franchise is known as the franchisor; the one that buys the franchise is the franchisee.

True False

63

Franchise fees are charged on either a per­room basis or as a percentage of room sales.

True False

64

Resort hotels rely more on walk­ins than do urban hotels; urban hotels rely more on walk­ins than do motor hotels.

True False

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65

Bank credit­card companies pay the hotel/merchant in full at face value, but T&E card companies reduce the hotel's payments by merchant fees.

True False

66

Rate cutting functions in an elastic market; lower rates generate new business in total for the hotel.

True False

67

RS (Refused Service) is the floor attendant's method of recording a room that was not serviced at the guest's request.

True False

68

Demographics refers to measurable qualities of guest profiles such as age, residence, gender, and income.

True False

69

In a brief period, lobby business centers, which were once essential for commercial hotels, have been largely replaced by in­room electronic equipment and telecommunication hookups.

True False

70

Groups that buy food and beverage events, pay for meeting space, and come at off­peak periods are able to negotiate lower room rates with the hotel's sales department.

True False

71

Central Reservation Offices (CROs) do not book group business; instead, they refer calls to the sales office of the particular hotel or to the chain's national sales office.

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True False

72

Dynamic pricing is a discount off the hotel's best­ available rate, unlike negotiated rates, which are a firm, known value.

True False

73

The bell desk gets commissions from services (rent­a­car, tours, etc.) purchased by a guest through the bell desk.

True False

74

With a management contract, the owning company pays the management company a fee; with a lease, the managing company pays rent to the owning company.

True False

75

Yield management is intended to counter the tendency of the average daily rate to fall whenever occupancy falls.

True False

76

Yield management systems work best with small hotels that are heavily dependent on one market segment.

True False

77

Guest­service agents/cashiers safeguard their cash by using a "cashier's well."

True False

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78

"Exception Reporting" highlights issues that veer from the norm, saving management precious time that otherwise would be spent reviewing normal data.

True False

79

Folios are settled (paid) in one of three ways: with cash, credit, or an allowance.

True False

80

The folio's opening balance each day is the same as its closing balance on the previous day, and the same can be said about the cumulative balance of accounts receivable.

True False

81

The Hospitality Information Technology Integration System (HITIS) is the hotel industry's united push toward installing telephony, including VoIP. True False

82

Guest folios may reflect services provided by outside businesses (florists or guest laundry, for example) as if those services had been provided in­house.

True False

83

Outside agencies working on bad debts usually collect close to 95% for the hotel, minus the fee, of course.

True False

84

Part of the night audit reconciles the total income earned by any department with the total recorded on all guest

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folios (accounts receivable) for that department.

True False 85

There is no difference between Double Doubles and Queen Doubles.

True False

86

Just as they do with individual cardholders, credit­card companies place ceilings (limits) on the amounts of credit­card losses from which hotels are protected.

True False

87

The housekeeping staff keeps watch on, and alerts management to "do­not­disturb" rooms that have been unattended for most of the day.

True False

88

The basic ratios and statistics that the industry uses are calculated daily during the night audit and reconfirmed by the day (or income) audit.

True False

89

PMSs record every departmental sale made to a registered guest twice: once as an increase to accounts receivable, and once as an increase to sales.

True False

90

A transcript sheet is used to separate and accumulate departmental sales as they appear on the folios of hotel guests.

True False

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91

Management reporting is the emphasis of night audits done by property management systems; correcting errors was the thrust of the pencil­and­paper night audit.

True False

92

Some city­ledger accounts are permanent, on­going records (credit­card accounts, for example), and some are one­time records (Jones­Smith wedding party, for example).

True False

93

Every line on every folio represents an event that always impacts accounts receivable because folios are accounts receivable.

True False

94

If the hotel bar has a POS, both cash sales and credit­ card sales made in the cocktail lounge appear immediately on the folios of the drinking guests.

True False

95

Due bills were in favor during the high occupancy period that closed the twentieth century and, as expected, were in disfavor during the huge decline in occupancy that followed the World Trade Center tragedy.

True False

96

Debit­card accounts are one of the fastest growing segments of the city ledger.

True False

97

The night audit is nothing more than a cumulative

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inventory of accounts receivable.

True False

98

When management wants to review the number of room requests denied, they look at the Regrets report.

True False

99

Tap to Pay use of a smartphone just requires a brief contact of the phone to the payment device to record a seamless transaction.

True False

100

The water in dry pipe systems is held back by a mechanical block, which is removed by the heat of a fire when it reaches a sufficient temperature.

True False

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Unit I Multiple Choice 1

Groups and conventions book a fixed number of room nights, but that number is forgiven if the event is unexpectedly interrupted by acts of God, which are referenced in the contract as: Quid pro quo Expost facto Force majeure (ma zhoer) Concierge (kon syerzh) Either quid pro quo or force majeure; both are used

2

International brands have been entering the United States. Which of the following is NOT a U.S.­based hotel chain?

Sheraton Starwood Marriott Accor None of the above; they are all U.S. firms.

3

Hotel properties can be: Owned outright Leased Joint ventures Franchised All of the above

4

The title Hotel Manager: Refers to the F&B manager Is another title given to the GM Is also called the House Manager Would be considered a staff position None of the above

5

The individual responsible for the full scope of the operation at the unit (hotel) level is generally titled the: CFO (chief financial officer) CEO (chief executive officer) GM (general manager) MD (managing director) COO (chief operating officer)

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Which of the following terms is out of place in this set?

American plan All­inclusive plan European plan Full pension Conference plan

7

The smallest degree of double occupancy would most likely be in: Resort hotels Ski chalets Boutiques Commercial hotels Family­oriented facilities

8

9

A small motor lodge might have a ratio of _________employees per guest room, whereas the ratio of a casino/hotel might be _______ employees per guest room.

20/100 100/20 2.0/0.5 0.5/2.0 None of these are within range of a reasonable answer.

The important Occupancy Ratio is computed as which of the following?

Number of Rooms Occupied ÷ Number of Rooms Available Number of Rooms Available ÷ Number of Rooms Occupied RevPar × Number of Rooms Double Occupied RevPar × ADR Both RevPar × Number of Rooms Double Occupied and RevPar × ADR since they produce the same mathematical values

10

Which type of hotel is NOT recognized as a current classification?

Extended­stay hotel Boutique hotel Megaresort

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Eco(logical) hotel Convention hotels 11

Which lodging company does not own, does not manage, does not lease, and does not franchise hotels?

Best Western Cendant Hilton Inter­Continental None of the above; each chain does some of each.

12

Many lodging companies own, manage, lease, and/or franchise hotels. Which company only franchises?

Best Western Cendant Hilton Inter­Continental Marriott

13

Which factor(s) enable(s) budget hotels to compete so successfully?

Staffing the foodservice with nonunion labor Selecting well­located, but high­priced locations Using a variety of architectural plans and construction Hiring fewer employees per guest room All of the above, although each development may not include all

14

Early efforts at "brand­stretching": Encouraged chains to acquire other companies and brands Created new trade organizations Resulted in a better business cycle All of the above Improved the RevPar of mid­scale hotels

15

REITs are: Real Estate Insured Treasuries ­federal loans to minority business persons if used to develop lodging facilities Real Estate Investment Trusts ­methods of financing real estate, often hotels, through shares sold to the

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public Real Estate Issues Taskforce ­watchdog group that monitors environmentally sensitive places (along beach fronts, for example) not supposed to be open to hotels or other businesses The RE[ed] International Treaty, which limits resort developers from using stron currencies in underdeveloped nations None of the above 16

The lodging industry: Has a highly perishable product Experiences low turnover of employees Pays exceptionally high salaries Is treated unfairly under income tax laws Experiences low turnover of employees and pays exceptionally high salaries

17

Number of Rooms Sold Number of Rooms Available for Sale Percentage of Occupancy REVPAR RevPar Fractional break­even point REVPAR and RevPar

18

=

Boutique hotels: By definition, are "small hotels" Have not yet attracted the attention of the chains Operate with a higher RevPar than commercial hotels Are almost always grande dames Operate with a higher RevPar than commercial hotels and are almost always grande dames

19

A hotel counts comp rooms as occupied rooms, which results in a(n): Higher percentage of OOI rooms Lower ratio of employees per room Improved percentage of occupancy Change in all of the above values Status quo: no effect on any of the above values

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The value of a hotel building is determined by: The assessment of the local (municipal) tax agency The IRS's (Internal Revenue Service's) published guidelines for that size of hotel A per­room value multiplied by the number of rooms in the hotel Daily RevPar multiplied by 365 days per year An approximate average of the assessment of the local (municipal) tax agency, the IRS's (Internal Revenue Service's) published guidelines for that size of hotel, and a per­room value multiplied by the number of rooms in the hotel

21

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

Corporation Partnership Joint venture Family­owned All of the above

22

Guests (at a full­service hotel) who seek to buy tickets to the opera might inquire of the: Rooms manager Steward Resident manager All of the above Concierge

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False 1

Hoteliers know that without upselling by desk personnel, "hotels fill from the bottom up."

True False

2

A frequently used term, "per­key cost," refers to the expense (cost) of installing guest­room locks in a new hotel building.

True False

3

Because the United States is a member of the United Nations, it uses the international rating system of stars (****) adopted by the World Tourism Organization.

True False

4

In spite of the current downturn in the economy, condos continue to thrive because of their favorable income­tax treatment.

True False

5

Commercial hotels cater chiefly to business travelers on the move, and that's one reason why the term "transient hotel" is also used for this designation.

True False

6

If, as some say, hotels are commodities much like wheat and oil, the buyer/guest will focus on price in preference to brand.

True False

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7

Amenity creep is the concern of safety inspectors, whose concern about creeping building structures has kept some new hotels from opening.

True False

8

Boutique hotels generally emphasize "soft" attributes (fashion, for example) whereas traditional hotels generally sell "hard" values (larger sleeping rooms, for example).

True False

9

Hotel planners must pay attention to the differences between "Upstairs Buyers," who want top accommodations, but pay top prices, and "Downstairs Buyers," who buy down to less­expensive hotels, such as hard budgets.

True False

10

Elasticity of the market place refers to the degree that the supply of rooms increases or decreases as room rates (prices) increase or decrease.

True False

11

IT (inclusive tour) packages are offered by the hotel at reduced rates to stimulate occupancy during slow periods (e.g., a commercial hotel on the weekend).

True False

12

Among all the departments in a full­service hotel, rooms produce both the largest volume of sales and the largest profit per dollar of sale (approximately $0.70 for each $1 sold).

True False

13

"Breakage" in tour groups refers to the loss of china and glassware caused by one or more members of the group.

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True False

14

The actual size of a projected hotel can be determined simply by multiplying the number of guest rooms by the square footage of each room.

True False

15

One of the chief advantages of chains is incorporating: One corporation serves the entire chain, saving the necessity and cost of incorporating each hotel property individually.

True False

16

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

True False

17

Success in the hotel industry reflects, in part, the status of the real estate market.

True False

18

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.

True False

19

Many management contracts require the management company that's bidding to put up some equity (investment) in order to win the management contract.

True False

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20

Mass marketing and one­time guests have made the manager's role of host even more critical today than a generation or two ago.

True False

21

Convention contracts should include provisions for force majeure (forz ma­zhoer), an unexpected, disrupted event, previously called an "Act of God." True False

22

The architectural "footprint" is a production standard that refers to the number of housekeeping employees needed per square foot to maintain lobby cleanliness.

True False

23

Hotels have eliminated many middle management positions, which flattens the organizational chart and throws more responsibility on the remaining managers and employees.

True False

24

The huge increase in cell­phone use has brought a corresponding revenue increase in the telephone departments, making telephone the fastest growing department percentagewise within the lodging industry.

True False

25

In today's markets, it takes about 50 properties to ensure brand identification.

True False

26

The most popular hotel rating guides in the United States

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are the Mobil Guide, the Michelin Guide, and the AH&LA Guide to Hotels.

True False 27

America's late­nineteenth­century hotels were large, splendid edifices, almost like castles, but because they were open to anyone who came, they were called "palaces of the people."

True False

28

Because England is close to continental Europe, the English breakfast is much like the Continental Breakfast.

True False

29

Casino hotels earn most of their revenue from casino wins, assigning a secondary role to room sales, which is the primary earner of traditional hotels.

True False

30

Spas are widely available in upscale hotels, but rarely profitable: They are offered merely as a guest service.

True False

31

The separation of powers is a good management principle, so the general manager of a hotel should be hired by and report to the company that owns the hotel, not to the company that manages the hotel.

True False

32

The AH&MA has been renamed to more closely reflect the variety of industry types. It is now the AH&LA, The American Hotel & Lodging Association.

True

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False

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Unit II Multiple Choice 1

Which of the following is NOT one of the four global distribution systems (GDS)?

Sabre THISCO Galileo Worldspan Amadeus

2

PHASER, TravelCLICK, and Smith Travel Research's STAR are examples of: Voice recognition systems Mapping capabilities now available on GDS Computer interfaces between the desk and the marketing department Reservation outsourcing acronyms Tools for measuring yield management results

3

SMERF is an acronym for: Social, Military, Educational, Religious, and Fraternal group business One of the GDSs (global distribution systems) AT&T's voice recognition system An Internet travel site that Travelocity has opened None of the above

4

The one department not affected by the room count projections is: Housekeeping Security Valet service In­room minibars None of the above since all departments are affected

5

Central reservation offices (CROs): Can be accessed by dialing toll­free 800 numbers Are sometimes located outside of the United States Charge member hotels a fee for each reservation taken May employ as many as several hundred agents

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during peak periods All of the above 6

It is standard procedure to offer rate discounts to: Senior citizens AAA members AARP members Uniformed personnel, military, and even firefighters and police All of the above

7

Yield managers (also called revenue managers) are responsible for: Increasing room rates as occupancy rises Determining the mix between a property's individual guest rooms and group blocks Departments increasing marketing budgets to provide more exposure when occupancy is down Setting the rules and triggers for computer programs involved with their predictions Increasing the staff­to­guest ratio when occupancy is high, and decreasing it when occupancy is low

8

Tour groups are: Assigned rooms throughout the hotel to minimize noise and baggage handling on floors Not a component of yield­management considerations Part of a hotel's IT package Quoted rates as per­person double occupancy (shares­with) All of the above

9

If members of a convention group are offered a range of rates, the rate quote is said to be: Flat rate Rack rate Spread or sliding rate All of the above Run­of­the­house rate

10

In order to retain some sense of a personalized service when confirming a reservation, hoteliers as a whole do

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not provide confirmation numbers: Over the phone Via e­mail By a letter sent by mail On postcards None of the above, since all are used to confirm reservations 11

Casino hotels:

Know that certain socioeconomic groups will be better for business than other groups Are not permitted by most state gaming authorities to comp rooms Exist in only five states of the United States, but are gaining momentum Prefer single occupancy (no one to look over the player's shoulders) to double occupancy All of the above 12

In the context of this chapter, special coding is NOT used for which of the following types of reservations?

Travel agent bookings VIPs Walk­ins Group affiliations Corporate guarantees

13

So far as reservation forecasts are concerned: 30­day projections are more accurate than 3­day forecasts Today's opening room count is the same as tomorrow's closing count Comp rooms must not be counted as occupied City­ wide All of the events above and local activities impact on counts

14

Early departure fees: Have been enthusiastically accepted by guests who were walked previously because their reserved room is now assured Are an understay penalty that has not achieved wide

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usage Were started by the credit­card companies after they experienced high chargebacks Generally do not apply to AAA or AARP reservations All of the above 15

Overbooking the hotel is: A technique to achieve a full house by offsetting no­ shows and errors in forecasting Illegal under the Interstate Commerce Clause of the U.S. Constitution Characteristic of all­suite properties more than of any other hotel type Used chiefly during economic down cycles to offset the loss of regular business Illegal under the Interstate Commerce Clause of the U.S. Constitution and characteristic of all­suite properties more than of any other hotel type

16

Examples of factors influencing the Adjusted Room Counts are: Bedbug infestations Weather Historical events such as 9/11 Group type All of the above

17

Since yield management is based on these unique characteristics, it can be a successful strategy: High fixed and low variable costs Seasonality of demand Flexibility of the room supply The potential guests' overall lack of concern for pricing High fixed and low variable costs and seasonality of demand

18

Convention guests: Spend more on average than do other guests Do not spend as much as tour and package guests Are frequently on expense accounts from their employers Must accept the room assigned by the convention

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planner Spend more on average than do other guests and are frequently on expense accounts from their employers 19

If the hotel is almost empty, well trained reservationists will try to sell callers a: Rack rate Weekend rate A package rate Flat rate None of the above

20

If the house is almost full, reservation requests for _____________ will be "regretted."

Government employees Double occupancy The convention block Rack rate None of the above

21

Predictions for the number of "no­shows" can be improved if consideration is given to the: Weather Nature of the group Heightened degree of national security Distance the guests are coming All of the above

22

Strategic Account Management refers to: The general manager's focus on upcoming reservations A corporation's headquarters assessment of its various lodging properties Front desk staff's attention to all in­house guest folios One sales manager representing all hotels within an entire chain The night auditor's oversight of guest folios

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False 1

The airline industry borrowed both the idea and the technology for CRS from the hotel industry; actually, it was from Holiday Inn. True False

2

Last room availability was launched in Washington, DC because the city's hotels received payment from Congress to hold rooms for VIPs until midnight.

True False

3

Although U.S. air carriers have stopped paying commissions to travel agencies, hotels have continued paying them the standard 10% commission.

True False

4

There seems to be no explanation for it, but Central Reservation Centers have seen a large increase in telephone bookings even though many guests now use the Internet to make room reservations.

True False

5

When making reservations, corporate guests are more rate sensitive and leisure guests more date sensitive.

True False

6

Hurdle pricing is the term given to the competitive environment in reservation offices: It requires each reservationist to better (jump the hurdle of) his/her record by increasing either the number of reservations taken, or the number of days booked, or the average rate of the booking.

True

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False 7

Many small chains and independent properties outsource their reservation offices to travel agents in order to reduce costs, increase the number of reservations, improve the quality of guest service, and improve the ADR. True False

8

How best to balance the price­occupancy mix is a management call because the same total room revenue can be achieved by either higher rates and lower occupancy or lower rates and higher occupancy.

True False

9

Under pressure from antiterrorist groups, the federal government has created standardized reservation codes, which allow easier identification of travelers.

True False

10

The airlines, not the hotel industry, created Yield Management Systems.

True False

11

Callers who cancel their reservations are not given a cancellation number (although the computer creates one) unless the guest has pre­paid the reservation at some earlier date.

True False

12

Overbooking as a standard procedure for hotels is a given; the real question is "how many rooms should be overbooked?"

True False

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13

Meeting planners and convention groups are no longer responsible for attrition (fewer room nights booked than contracted for) because of the Room Attrition Act of 2002.

True False

14

If flat rates are offered to convention delegates, each delegate is offered a choice of rooms with corresponding differences in room rates.

True False

15

Hotel reservations are legal contracts, which is why law suits by hotels against guests for no­shows and law suits by guests against hotels for failing to honor their reservations are growing in number and dollar settlements.

True False

16

Many hotels ignore the convention market because convention delegates spend so much less per day than do other guest types.

True False

17

Pressure on municipal budgets has forced Convention and Visitor Bureaus to curtail services to citywide convention groups and reduce cooperation with the lodging industry.

True False

18

Out­of­order rooms may be sold under limited circumstances provided that the guest is forewarned about the condition; usually a reduced rate is given.

True False

19

Rising occupancy rates will enable hotels to increase their use of hurdle pricing (or nesting) as a means of boosting

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the ADR. True False 20

"Fenced rates" are reduced rates with certain restrictions (no cancellation allowed, for example).

True False

21

Online sites that offer distressed room inventory at deeply discounted rates are referred to as "opaque" because they make it difficult for the user to know which property is being offered.

True False

22

Forecasting rooms available with an adjusted room count will always result in taking more reservations than would be the case when forecasting with unadjusted values.

True False

23

Technically, it is possible for a hotel to record a full house (100% occupancy) and still have empty rooms that night.

True False

24

Understays and overstays have the same impact on room­availability forecasts; both increase the number of rooms available for sale.

True False

25

Economists speak about the "multiplier," the rate at which tourist dollars spread across a community, providing benefits to residents not directly servicing the guests.

True False

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26

Reservations and room bookings via mobile apps are not a viable channel of distribution because of the limited screen size of the devices (smartphones and mobile phones).

True False

27

Room count forecasts are prepared by the reservations department and used by the front desk and by other departments (housekeeping, room service, coffee shop) to forecast labor needs.

True False

28

With the broad use of online reservation bookings, the need for upselling is not as important as it once was.

True False

29

"Boxed dates" are one of the most common amenities used by hoteliers to welcome arriving guests.

True False

30

Triggers are rules at Central Reservation Offices that are implemented (triggered) whenever a reservationist becomes so overloaded as to need a rest period.

True False

31

Guarantee fees are used to guarantee certain guest requests, such as reserving a nonsmoking room.

True False

32

With the mapping capabilities of Global Distribution Systems, a reservationist can direct callers to the chain's

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hotel closet to the guest's destination even if the Central Reservation Office is hundreds of miles away.

True False 33

A forward­looking person can imagine the time when reservationists are just computers with voice­recognition capabilities.

True False

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False 1

First­class hotels respond to every complaining guest with cash, comps, or gifts, no matter how minor the complaint or how small the value of the settlement.

True False

2

The ethnic distribution (Caucasians, Blacks, Asians, etc.) of the lodging industry's workforce is almost identical to the ethnic distribution of the American population.

True False

3

The authors define total quality management or customer service management as an attitude that has every employee acting like a concierge and thinking like a manager.

True False

4

The best quality guarantee is a specific one that has the hotel promising that a specific act will be accomplished within specific guidelines (breakfast in 12 minutes) or else (no charge).

True False

5

For sheets to feel smooth and luxurious, the thread count must be less than 180 (80 threads in one direction; 100 in the other); otherwise they scratch.

True False

6

A moment of truth occurs when guest and staffer meet eyeball­to­eyeball, the one expecting service and the other delivering it.

True False

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7

Because of the possibility of disease, family pets are allowed only at hotels that have been inspected and certified by local health departments as pet­friendly.

True False

8

Apologies are free, so the hotel should offer as many as needed to soften a complaint.

True False

9

"Empowerment" is one of the major conflicts of employee­employer relationships: Unions demand it in contracts, management fights against it!

True False

10

To be accommodated on a "no­arrivals" day, a guest must have been overnight in the hotel on the previous day.

True False

11

As one would expect, RNA (Registered, Not Assigned) becomes more prevalent as the economic cycle dips.

True False

12

Q­ing (queuing) is the lodging industry's professional jargon (term) for a guest who squiggles out of paying for the room by claiming either poor service or injury.

True False

13

"Front" is the term given to the entire desk and reception areas of the hotel; some properties even include the lobby.

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True False

14

Florida has no state income taxes, which helps explain why Tampa and Miami, Florida have the nation's highest room taxes.

True False

15

Heretofore hotels waited for a court order before releasing information about their guests; now­because of anti­terrorism legislation­it can be done merely by a letter.

True False

16

Most hotels scatter tour group assignments to numerous floors throughout the hotel.

True False

17

Hotels do not enforce either time very stringently, but when they do, it is the check­out time, not the check­in time, that receives the most attention.

True False

18

Algorithms are among the newest amenities that up­to­ date hotels are adding to their rooms and services.

True False

19

Only guests with light baggage, or no baggage at all, can be required to pay in advance for their accommodations.

True False

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20

Recognizing the marketing and economic potential, American hotelkeepers have vigorously introduced environmental programs and lobbied for environmental legislation.

True False

21

The double room rate has always been twice the single rate; falling occupancies at the start of the new century forced management to reconsider this long­standing approach.

True False

22

Local governments that enact high lodging taxes on hotel rooms should expect to see a decline in tourist demand.

True False

23

Per diem room rates are established by federal, state, and local governments and apply to government employees traveling on business for those political divisions.

True False

24

The Ideal Average Room Rate is the average of the rates for the lowest tier of rooms in a hotel.

True False

25

It is unethical for hotel managers to telephone their own property to test departmental procedures and the courtesy of their staffs.

True False

26

"Discounting" rates is industry­approved because it takes place in an elastic market; "rate cutting" is industry­

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disapproved because it takes place in an inelastic market.

True False 27

Dynamic pricing allows the front desk to change the cost of the room upon check­in when the situation calls for it.

True False

28

High­demand days (New Year's eve, Super Bowl, etc.) can be stretched to high­demand weekends or even 3­ day affairs by requiring a minimum stay and refusing one­night reservations.

True False

29

Buying a good mattress, which has an 8­to 10­year life, is poor management; better to buy a less expensive mattress and replace it more frequently.

True False

30

Two men sharing one room as part of a company seminar would need two registration cards; a married couple with children taking a three­bedroom suite would require just one registration card.

True False

31

Baggage­in/baggage­out refers to the automatic charge that hotels levy on tour group baggage.

True False

32

Room rates have failed to keep up with inflation, causing a fundamental industry problem.

True False

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Unit III Multiple Choice 1

A duvet is a: Name given to the recently introduced job of sleep concierge Second head in a "heavenly" shower Washable cover that replaces the traditional bedspread Specially shaped bed pillow None of the above; "duvet" is a food term.

2

3

A "road warrior" is someone: Caught in a traffic jam In military uniform asking for a discounted rate Who sleeps away from home a great deal and battles the annoyances of travel Secretly carrying out a shopping audit for the hotel Caught in a traffic jam or in military uniform asking for a discounted rate, depending on whether it is civilian or military slang TQM (Total Quality Management):

Overlooks mistakes made by employees Avoids the costs of technical training by hiring only skilled employees Forbids discipline by supervisors Does away with review and evaluation None of the above 4

Managing for guest service most requires: GMs to reactivate their position as host Ownership to take more participative action Employees to recognize and act on their role Guest to adopt electronic self­services All of the above

5

The concierge floor is also called the: Club floor

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Businesswoman's floor Upscale floor (but only by the staff; not known to the guests) Queueless floor Businesswoman's floor and queueless floor 6

7

The one­time American Hotel & Motel Association (AH&MA) is now called the: American Hotel& Lodging Association (AH&LA) American Hotel Association (AHA) American Hotel and Lodging Association (AH&LA) American Hospitality Association (AHA) There has been no change; it is still called the American Hotel & Motel Association.

Queue discipline:

Is administered to employees who ignore standing instructions Deals with rules for merchants who sell the hotel housekeeping supplies Refers to the behavior exhibited by guests waiting in line Is a financial penalty levied on managers who miss targeted goals None of the above 8

9

A rooming slip is a means of communication between the: Desk and the bellperson Guest and the housekeeper Bellperson and the guest Desk and the guest All of the above except the guest and the housekeeper RNA is used:

When guests arrive early and their rooms are not yet vacated To charge guests who leave earlier than their anticipated departure date If the guest is not satisfied with the hotel's response to a complaint To indicate that a reservation with an assigned res http://l oc al hos t/v i ew ques ti ons _new 2.php?c at= 115&button= Subm i t

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number has been canceled All of the above because the practice is not standardized across the industry 10

Electronic check­in terminals: Are talked about a great deal but are not often available Must be located within 100 feet of the computer terminals behind the desk Are more popular with experienced travelers than with inexperienced travelers Still lack the personal security that transient hotels should deliver Are talked about a great deal but are not often available and still lack the personal security that transient hotels should deliver

11

Assigning a guest better accommodations at no increase in rate is called: Upselling Upping it Upgrading Up­assigning All of the above

12

Elasticity is a change in:

13

Supply resulting from a change in rate Rate resulting from a change in supply Demand resulting from a change in rate Rate resulting from a change in demand Supply resulting from a change in rate, and rate resulting from a change in demand Which of the following is out of place with the rest of the set?

Day rate Shoulder rate Use rate Part­day rate None of the above; they all refer to the same rate.

14

Among the surprising surcharges that some hotels have added to their room rates are:

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Energy premiums In­room coffee Early departure (before the date specified by the reservation) fees Complimentary newspaper fees All of the above 15

16

The Building Cost (Room) Rate: Is simply a rule of thumb, a frequently quoted yardstick for room rates Works out to be $1 per $1,000 in construction costs Includes land improvements (landscaping, for example) as part of building costs All of the above Translates into larger­sized rooms requiring higher room rates Regarding room rates:

New York City has the world's highest ADR Upselling produces its most dramatic effects on sold­ out days Resort hotels have used incentive rates successfully to get leisure guests to check out early Conventions are often charged the same for single or double occupancy All of the above 17

The iceberg effect of complaints means that: Resolved complaints are costly, but no one knows by how much Many complaints are not voiced and therefore not resolved Management pretends to resolve issues for which there are numerous complaints No one knows how many complaints are resolved by quality guarantees Resolved complaints are costly, but no one knows by how much, and no one knows how many complaints are resolved by quality guarantees

18

If registration lines are long and irritating, management should consider doing what?

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Adding directional signs Increasing the number and character of the staff Creating distractions (clowns, for example) in the lobby Redesigning the physical structure of the front desk All of the above 19

The ADA is the: Allied Directors of America, an important national convention that every city seeks Americans with Disabilities Act, designed to help the handicapped get around A Damned Angry movement, an effort to get employees to be more guest sensitive Articles against Dopey Attitudes, lodging's industrywide drive to promote TQM None of the above

20

To make "empty minutes" pass quickly for guests waiting in line: Post a sign telling how long before the end is reached Show video clips on an overhead monitor Build a front­desk attraction; a big aquarium, for example Have an employee "work" the line All of the above

21

"The room rate should be high enough to meet fixed and variable expenses and return a fair value to investors" is a statement associated with the: Cost of Renovation rate Rule of Thumb room rate calculation Ideal Average Room Rate computation Hubbart Room Rate Formula All of the above

22

Comp rates are given to: VIPs Travel agents on fam trips High rollers in casino hotels Other hotel managers All of the above

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False 1

Split billing is a method of settling charges on a folio by which certain amounts are settled with allowances while other charges are settled with transfers.

True False

2

Guests who arrive late to claim their reservations (each hotel sets its own definition, but usually after 6:00 P.M.) are called late charges.

True False

3

Certain departmental charges (chiefly rooms, food, beverage, and telephone sales) may be posted to folios several times each day.

True False

4

Typically, city­ledger guests are billed immediately; transient ledger guests are billed in 10­day cycles.

True False

5

Using point­of­sale terminals in the dining rooms speeds the accumulation of records but at the cost of more frequent late charges than with a pencil­and­paper voucher.

True False

6

If a hotel has a DCC (Dynamic Currency Conversion) system, folios can be calculated and presented in a foreign currency even if payment is still made in dollars.

True False

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7

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There is one folio for each person­not for each room­in the hotel.

True False

8

Hotels offer numerous services that increase the balance of a folio, but there are only three methods of settling (paying) for those services: cash, allowances, and transfers.

True False

9

Most charges are posted at the departmental location using a POS terminal, but some charges are posted by the front office staff because every department may not have a POS terminal, even though the hotel has a Property Management System.

True False

10

Cash is the method most often used by guests to settle their folio accounts; credit cards are the next most­used method; most hotels will not accept checks.

True False

11

A strong U.S. currency aids the balance of payments because it deters U.S. citizens from going abroad to spend their money.

True False

12

It makes sense that commissionable business, such as travel­agency bookings, is turned away during peak occupancies.

True False

13

Tour­group coupons accepted by the restaurant cashier in payment for the lunches of tour members are

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accumulated and eventually charged on the individual folios of each guest.

True False 14

Hotel cashiers are more likely to lose money from accepting counterfeit bills than from being robbed.

True False

15

Debit cards have not gained in popularity because the typical user (the average hotel guest) has little or no knowledge of accounting's debits and credits.

True False

16

The city ledger came into being when Visa introduced credit cards between 1970 and 1980.

True False

17

If sales managers must choose in order to finalize some business, they should extend credit against room sales rather than for banquet sales, which have a lower profit margin.

True False

18

To improve credit monitoring, walk­in guests are usually flagged with a code identification, including WI (walk­in) and NR (no reservation).

True False

19

Room charges for a convention's manager most likely would be posted to the convention's A folio.

True False

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20

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A 63­room roadside motel most likely would have no city ledger.

True False

21

Chargebacks, charges returned to the merchant by the credit­card company, are often never collected simply because no one is assigned the task.

True False

22

A registered guest who pays cash for drinks in the bar becomes a city­ledger guest.

True False

23

Terminology gets confusing because the word "floor" is applied to the maximum amount of credit, not to the minimum amount of credit.

True False

24

Hotels may fail to press for collection of no­show reservations that have been guaranteed with a credit card because they fear to lose potential customers.

True False

25

Cashiers in all departments pay out funds to both guests and employees, who request cash for tips received on signed guest checks.

True False

26

Cashiers in all departments compare their actual bank

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counts to what they should have, which is determined by records, registers, and computations, in order to compute over and short.

True False 27

Well, bucket, or pit are used in reference to the cashier's file because they are usually recessed in the desk.

True False

28

There are as many city­ledger accounts as there are rooms in the hotel; it makes no difference whether or not the room is occupied.

True False

29

A 3­day billing pattern is used by most hotels for speedy check­outs and banquet charges because prompt billing is one key to reducing bad debts.

True False

30

Acting in their role of host, innkeepers (hotels) are expected to­and do­cash personal checks and make emergency loans to guests.

True False

31

Renting the ballroom and providing food and beverage to a pay­as­you­go function based on ticket sales (say, a charitable dinner/dance) is a high­credit­risk venture for the hotel.

True False

32

Allowances are usually granted after the fact, when management can no longer correct the situation that caused the complaint.

True

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False

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Unit IV Multiple Choice 1

Which position in the hotel would likely NOT be discussed in a chapter dealing with cash?

General cashier Night auditor F & B manager Front­office cashier Food servers accepting tips on credit cards

2

3

A front­office cashier would most likely pay out cash to a guest who had: A debit balance at the time of check­out A credit balance at the time of check­out Paid for the room in advance Been a previous city­ledger account with the hotel Either a debit balance or a credit balance at the time of check­out, depending on the circumstances Which item is NOT a member of this set?

Ledger Turn­in Cashier's report Over or short Due bank 4

Which of the following would most likely be a city­ledger guest?

Visa card Trade association Bridal party Wholesaler/group mover All of the above

5

The "one­two­three steps" for detecting worthless checks are: 1. Verify room number; 2. Use a "MoneyChecker;" 3. Ask manager if uncertain 1. Collect the fee; 2. Employ cameras; 3. Ask for a fingerprint Ask: 1. Is the routing code on the bottom of the check; 2. Are the check's sides smooth; 3. Is the

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amount in even numbers Check for: 1. Perforation; 2. The Federal Reserve district number; 3. Magnetic ink on the routing code The authors offer no "one­two­three steps" for detecting worthless checks.

6

Credit­card transactions cost the merchant/hotel which fee?

Authorization fee Discount fee Chargeback fee Interchange fee All of the above

7

"Float" refers to the: Swimming pool gadget that adds chemicals Fee that foreign­money exchangers charge Time between the extension of credit and its payment Period between a room on change and a room that's ready All of the above

8

Cash received minus cash paid­out is: Net cash receipts Drop Cash short Starting bank None of the above

9

An example of an asset is: Taxes collected and due to be paid to a municipal government Accounts receivable due from guests Room sales Beverage allowances All of the above

10

A skipper is a(n): Nickname given to the hotel GM Guest who leaves without paying his bill

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Guest who charges bar drinks to the room folio American­plan guest who skips one or more meals that have been prepaid Nickname given to the hotel GM, and an American­ plan guest who skips one or more meals that have been prepaid 11

Which of the following helps distinguish real bills from counterfeits?

Visible watermark Security thread Color­shifting ink All of the above Finger printing

12

Bills are presented to guests by: A copy delivered under the room door the night before check­out The front desk at the time of check­out The front desk at the time of check­out Total charges exceeding a ceiling established by the hotel All of the above, depending on the circumstances

13

Split folios are used by/for: Casino high­rollers Due­bill holders Frequent­guest members cashing in points Tour group members All of the above

14

Which of the following is NOT a category of a city­ledger set?

Travel agents Banquet charges Late charges Taxes payable None of the above; they are all city­ledger categories.

15

EFT is shorthand for:

Equal and Fair Treatment ­federal requirement for http://l oc al hos t/v i ew ques ti ons _new 2.php?c at= 118&button= Subm i t

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treatment of employees Every First Time [Guest] ­part of frequent­guest programs Electronic Funds Transfer ­for moving money electronically Each Frequent Traveler ­the true reference to frequent­guest programs Both Every First Time [Guest] and Each Frequent Traveler; the meaning gets garbled at times.

16

Which of the following is NOT a term used in a set of terminologies for trading room nights (for advertising or for products)?

Due bills Trade advertising contracts Trade outs RNTs, room night tradings Reciprocal trade agreements

17

Room charges are posted during the day by the front­ office staff if the: Auditor has not completed the job the night before Guest is a day­rate guest PMS lacks posting capability Hotel is still using a pencil­and­paper folio All of the above

18

19

20

Which of the following may alert the desk to a possible skipper?

Charges small items to the folio Has a reservation Provides a credit card Has light or even worthless looking baggage Charges small items to the folio and has light or even worthless looking baggage Which of the following is NOT a city­ledger account?

Executive (of the hotel) accounts Bank fees for processing bad checks Banquet charges Credit­card companies None of the above; they are all categories of the city ledger.

Which of the following is among the four most common

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complaints made by meeting planners about master­ account billing?

Amount of tips and gratuities charged Acceptance of unauthorized signatures on checks for services rendered Refusal of the desk to take reservations beyond the block guarantee Lack of servers during breakfast meetings All of the above 21

22

Collection agencies working to recover bad debts for a hotel: Begin collecting small balances and work upward to large accounts Charge a fee of 5­10% of the amount collected Often employ the same techniques as those tried by the hotel Collect most of the amounts and accounts handed to them Begin collecting small balances and work upward to large accounts and charge a fee of 5­10% of the amount collected Hotels sell _______________to their guests.

Acommodations Accomodations Accomidations Accommadations Accommodations

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False 1

An acute shortage of night auditors has come about since the industry's trade association, the AH&LA, has required auditors to have the equivalent (but not the actual qualifications) of a CPA. True False

2

The night audit reconciles the cash sales made by each department with the actual cash turned in by departmental cashiers.

True False

3

The closing balance of one day's inventory is the opening balance of the following day with only a few, rare exceptions.

True False

4

A hotel's closeout hour depends on its location; different municipalities mandate different closing times.

True False

5

Across the lodging industry, the transcript has replaced the room count sheet as the major format for completing the night­audit.

True False

6

Room sales are always accounts receivable sales, whereas sales in the dining room could be accounts receivable sales, cash sales, or credit­card sales.

True False

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7

A hotel system may have some departments charge guests using manual (pencil­and­paper) vouchers even while the balance of the hotel operates with a computerized property management system.

True False

8

The night audit reconciles the hotel's accounts receivable nightly, whereas most other business types do that monthly or even less frequently.

True False

9

Several court cases are now pending because the night audit, which ends the hotel's accounting day, conflicts with its legal definition: A hotel is required to be open 24/7/365.

True False

10

The Hospitality Information Technology Integration System (HITIS) is such a critical function of the hotel operation with guest­sensitive information that it can never move to a Web­based interface.

True False

11

Telephone departments have had an historical cycle: First heavily regulated, then deregulated, and now in competition with other communication products (cell phones for example). In spite of this, today's hotels earn enough money from the telephone department to keep it on the revenue side of the balance sheet.

True False

12

Electronic Locking Systems (ELSs), which use the guest's iris or fingerprint as the code for opening the lock, are known as biometric locking systems.

True False

13

The laws of many states actually require that in­room

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safes be provided to guests free of charge.

True False 14

Telephones that use either IP or VoIP software are actually routing telephone calls over the Internet.

True False

15

Some energy management systems (EMSs) are so sophisticated that they actually save energy by adjusting the temperature automatically when the room is unoccupied.

True False

16

Charges and credits are interchangeable accounting terms.

True False

17

Many nonaccounting duties face the night auditor when he or she is the sole employee on duty during the late­ night and early­morning hours.

True False

18

The night audit audits all types of sales­cash sales; sales on account; sales throughout the hotel for rooms, food, bars, spas; and so on.

True False

19

Writing $53.21 as $35.21 is called a slide; writing $53.21 as $532.10 is called a transposition.

True False

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20

Simply put: The night audit proves that all cash sales by registered guests have been recorded and the guest folios have been properly charged.

True False

21

As their title suggests, "Exception Reports" are not usually prepared during the night audit; they are exceptions prepared only when management seeks special information.

True False

22

The recent spurt of hotel technology comes as no surprise; hoteliers have always been technology leaders, investors, and innovators.

True False

23

Call accounting systems (CASs) post telephone charges directly to guest folios through an interface with the PMS. True False

24

If guests are unable to distinguish one hotel property from another, the product that innkeepers sell becomes a commodity, and price becomes the major determinant of the purchase.

True False

25

Key chronology (sequence) runs something like this: First, there were no keys; then ELS with card keys; iron keys came next; mechanical keys followed; RFID (radio frequency identification) keys are on the horizon.

True False

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26

Most U.S. hotels now use some form of electronic locking systems (ELSs).

True False

27

Keycards for ELS are inexpensive plastic that quickly disintegrates after use, especially at resorts where sun, water, and sand interact with the material.

True False

28

Elevator access to the concierge floor can be controlled through an electronic locking system.

True False

29

Someone using the terms "sold," "sold and occupied," "sold but unoccupied," and "unsold (or vacant)" could be talking about an energy management system.

True False

30

Automated in­room minibars are interfaced with the PMS, so late charges from missed counts and early departures have been reduced.

True False

31

In­room alarm clocks are no longer needed due to the sophistication of electronics that most guests have.

True False

32

Guests prefer centralized HVAC systems over individual in­room installations, which are so noisy.

True

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False

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Unit V Multiple Choice 1

Late charges are reduced dramatically when POS terminals are used in the dining room because they: Identify guests who have already checked out, preventing new charges from being made Flag paid­in­advance guests who are not permitted to charge Alert cashiers to balances that exceed allowable credit limits Record charges instantaneously rather than waiting for a runner to take the voucher to the desk All of the above

2

Charges for room and tax are posted by the night auditor except charges or fees for: Late check­out Day rate use Use rate use Failure to stay through the reservation commitment All of the above

3

An "Allowance Report" is an example of a(n): Reservation Report Room Status Report Exception Report Registration Report None of the above

4

Which of the following classes of reports would be the most helpful to the yield manager for forecasting and setting rates?

Exception reports Downtime reports Credit reports Reservation reports Exception reports and reservation reports

5

The Daily Report to the Manager: Is just another name for The Night Auditor's Report to the Manager Has limited value because it reports cash sales only

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Is prepared by the Income Auditor Becomes the basis for entries into hotel's journals Is prepared by the Income Auditor and becomes the basis for entries into hotel's journals 6

Which of the following symbols is (are) used in the Housekeeper's Report?

NB: Baggage in the room appears to be worthless B: Baggage in the room, no occupant S: No baggage in the room; appears to be a Skipper PA: No baggage in the room; Paid in advance All of the above

7

Too early a closeout hour: Puts serious time pressure on the night auditor to finish Probably increases the number of skippers Throws many charges onto the following day's folio and audit Will likely reduce sales in cocktail lounges and room service All of the above

8

PMS are changing dramatically as hotels: Adopt and implement HITIS Access the World Wide Web Use a Window environment All of the above Install more and more dedicated software

9

Organizationally, the night auditor is most likely to be a member of the: Accounting department Front­office staff Legal division Manager's personal advisory group None of the above

10

Night auditors prepare: Reports Cash overages and shortages Bank deposits

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Long­distance telephone records All of the above 11

Which of the following does NOT belong in the set?

12

Speedy check­out Zip­out check­out No­wait check­out VIP check­out None of the above; they are the same process with different names.

Which of the following is NOT a real type of keycard used with today's electronic locking systems?

Magnetic stripe cards Memory cards Smart cards RFID tags All of the above are real keycard types.

13

Which acronym is NOT part of the lodging industry's electronic vocabulary?

POS PMS ELS A/R HITIS

14

Which federal agency regulates the nation's telecommunication industry?

FCC OSHA FDA FICA None of the above

15

Which of the following services are available at some hotels on the in­room television screen?

Guest folio Room­service menu Weather reports and airport times Personal messages All of the above

16

A hard­wired ELS can be upgraded to include:

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Removal of room­service trays Clearing of smoke from no­smoking rooms Energy control of the guest room Cooking capabilities (but only in all­suite facilities) None of the above 17

Which of the statements about electronic locking systems is NOT accurate?

The system can include one­way or two­way communication.

The keycard console is a large piece of equipment kept at the front desk.

Each guest gets a new or recycled keycard.

Lost keycards are inexpensive to replace.

None of the above; they are all accurate.

18

HOBIC means: Hotels Of [the] Best International Chains, an affiliated rating service Hotel Oversight By Independent Council, a hotel group that evaluates technology Hospitality Overseas Building Into [a] Chain, an Asian form of joint venture Hotel Billing Information Center, a telephone system None of the above

19

The term "resort services" refers to: An all­inclusive offering at some resorts The mix of in­house and out­of­house capabilities, primarily at Caribbean resorts Additional fees levied by some properties over, and in addition to the room rate Advertising jargon usedatbysome four­resorts and five­ starthe resorts An all­inclusive offering and mix

20

of in­house and out­of­house capabilities, primarily at Caribbean resorts "Ma Bell" refers to:

The first woman innkeeper in the U.S. colonies http://l oc al hos t/v i ew ques ti ons _new 2.php?c at= 121&button= Subm i t

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Industry slang for the silver bells once used to call bellhops A warm reference to Martha Bell, founder of the Bell Hotel Chain AT&T, the telephone company None of the above 21

22

In­room hotel safes can be activated by: Magnetic stripe cards Codes (digital) entry Keys Biometrics All of the above, depending upon the make and model.

Self­service kiosks:

Make change for foreign currency Generate extra income by accepting advertising Imply, for many guests, that management is uncaring Have replaced telephone booths in lobbies Make change for foreign currency and generate extra income by accepting advertising

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