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

Elasticity of the market place refers to the degree that the supply of rooms increases or decreases as room rates (prices) increase or decrease.

Match the items in the left column with the best answer from items in the right column. -Telephone hookup

A "road warrior"is someone:

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.

The housekeeping staff keeps watch on and alerts management to "do-not-disturb"rooms that have been unattended for most of the day.

Compute the anticipated room rate using the Rule-of Thumb, or Building Cost, Rate. GIVEN: Number of rooms 800 Average Occupancy Percentage first two years 60% Cost of erecting the building $64,500,000 Cost of acquiring the land $8,000,000 Legal costs to incorporate $500,000 Upfront costs to lease furniture and TV's $100,000 Landscaping costs $1,250,000 Cost of tearing down the old structure $750,000

Condominiums were developed in the ski resorts. Timeshares, which came later to the United States, were developed in the sunshine states.

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

Due bills were in favor during the high occupancy period that closed the 20th Century and, as expected, were in disfavor during the huge decline in occupancy that followed the World Trade tragedy.

The hotel's chart of accounts is a secretly coded list of accounts that differs hotel to hotel, the idea for which originated in the casino hotels' need for privacy.

The huge increase in cell-phone use has brought a corresponding revenue increase in the telephone departments, making telephone the fastest growing department percentagewise within the lodging industry.

Cashiers in all departments compare their actual bank counts to what they should have, which is determined by records, registers and computations, in order to compute over and short.

Early efforts at "brand-stretching:"

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

Match the items in the left column with the best answer from items in the right column. -Vallen

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.

A guest who offers a credit card at the time of check-in is:

Callers who cancel their reservation are not given a cancellation number (although the computer creates one) unless the guest has pre-paid the reservation at some earlier date.

Strange as it may seem, American hotels generally operate on the European plan.

The lodging industry has been reluctant to introduce electronics into its operations because doing so will destroy the whole concept of personalized host-guest relations.