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

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.

Many management contracts require the management company that's bidding to put up some equity (investment) in order to win the management contract.

PMSs record every departmental sale made to a registered guest twice: one as an increase to accounts receivable and once as an increase to sales.

"Boxed dates"are one of the most common amenity used by hoteliers to welcome arriving guests.

Although U.S. air carriers have stopped paying commissions to travel agencies, hotels have continued paying them the standard 10% commission.

First-class 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.

Buying a good mattress, which has an 8-10 life, is poor management; better to buy a less expensive mattress and replace it more frequently.

A 63-room roadside motel would most likely have no city-ledger.

The text's discussion on residential hotels is more historic than current because today no one lives permanently in a hotel.

Algorithms are among the newest amenity that up-to-date hotels are adding to their rooms and services.

________ is to the resort hotel as ________ is to the commercial hotel and ________ is to the residential hotel.

"Hotels fill from the bottom up"is professional slang for the preference that guests have for rooms on lower floors, where fire ladders can reach.

Rooming slips contain:

The best quality guarantee is a specific one that has the hotel promising a specific act to be accomplished within specific guidelines (breakfast in 12 minutes) or else (no charge).

Hotel guests who reserve through a travel agencies often present a travel-agency voucher which they expect the hotel will honor for the value of the deposit made to the agency.

Hotel cashiers are more likely to lose money from accepting counterfeit bills than they are from being robbed.

Management companies grew rapidly when banks need on-site management after the banks had foreclosed on hotels that were unable to pay their mortgage debts.

Microtel, a budget chain, had a slogan, "Don't sleep with amenity creep,"meaning:

The U.S. Census, which includes data about hotels, is counted whenever Congress passes the necessary legislation; that is, when Congress decides there is a need to do so.

Compute how much more the cashier needs to get from the guest as the guest checks outORhow much change the cashier needs to give as the guest checks out. GIVEN: A guest from the Land of Everywhere (LE)A folio balance of $639.00The guest has been here 3 nights9 LE's = $1.00 The guest tenders 6 each of 1,000 LE billsState sales tax is 5%The bank's rate is 8 LE's = $1.00 Cashier's give change in U.S. currency only