Question 1

Tour groups are:

Accepted Answer

A)  Quoted rates as per person double occupancy (shares-with) 
B)  Not a component of yield-management considerations 
C)  Part of a hotel's IT package 
D)  Assigned rooms throughout the hotel to minimize noise and baggage handling on floors 
E)  All of the above 
A)  Quoted rates as per person double occupancy (shares-with) 
B)  Not a component of yield-management considerations 
C)  Part of a hotel's IT package 
D)  Assigned rooms throughout the hotel to minimize noise and baggage handling on floors 
E)  All of the above

Question 2

Point-of-sale terminals reduce the number of communication errors, in part, because they eliminate the need for hand-written vouchers.

Accepted Answer

A) True 
 B)False

Question 3

Success in the hotel industry reflects, in part, the status of the real estate market.

Accepted Answer

A) True 
 B)False

Question 4

The break-even point (as measured in percentage of occupancy) of the hotel industry is:

Accepted Answer

A)  More than 85% occupancy for most hotels 
B)  Goes down as Revpar goes up 
C)  A measure of room sales only 
D)  Goes up step-by-step with double occupancy 
E)  All of the above except A 
A)  More than 85% occupancy for most hotels 
B)  Goes down as Revpar goes up 
C)  A measure of room sales only 
D)  Goes up step-by-step with double occupancy 
E)  All of the above except A

Question 5

Timeshares are also called:

Accepted Answer

A)  Vacation Ownership 
B)  Vacation Clubs 
C)  Fractionals 
D)  Interval Ownership 
E)  All of the above 
A)  Vacation Ownership 
B)  Vacation Clubs 
C)  Fractionals 
D)  Interval Ownership 
E)  All of the above

Question 6

Bank credit-card companies pay the hotel/merchant in full at face value, but T&E card companies reduce the hotel's payments by merchant fees.

Accepted Answer

A) True 
 B)False

Question 7

Typically, there are often 5 parties involved in the development and operation of a hotel; which of the following is NOT part of that group? A (An):

Accepted Answer

A)  Lending institution 
B)  Management company 
C)  Ownership interest 
D)  Government agency 
E)  None of these; that is, all are part of the development 
A)  Lending institution 
B)  Management company 
C)  Ownership interest 
D)  Government agency 
E)  None of these; that is, all are part of the development

Question 8

"Discounting"rates is industry-approved because it takes place in an elastic market; "rate cutting"is industry-disapproved because it takes place in an inelastic market.

Accepted Answer

A) True 
 B)False

Question 9

The supposedly absolute rule that folios are always reduced to zero at check out has exceptions.

Accepted Answer

A) True 
 B)False

Question 10

An example of an asset is:

Accepted Answer

A)  Beverage allowances 
B)  Room sales 
C)  Taxes collected and due to be paid to a municipal government 
D)  Accounts receivable due from guests 
E)  All of the above depending on the circumstances 
A)  Beverage allowances 
B)  Room sales 
C)  Taxes collected and due to be paid to a municipal government 
D)  Accounts receivable due from guests 
E)  All of the above depending on the circumstances

Question 11

A customer (hotel guest) who owes a business (hotel) for services that have been delivered by not paid for is know as an "account receivable."

Accepted Answer

A) True 
 B)False

Question 12

Recognizing the marketing and economic potential, American hotelkeepers have vigorously introduced environmental programs and lobbied for environmental legislation.

Accepted Answer

A) True 
 B)False

Question 13

Last room availability was launched in Washington DC because the city's hotels received payment from Congress to hold rooms for VIPs until midnight.

Accepted Answer

A) True 
 B)False

Question 14

"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:

Accepted Answer

A)  Cost of Renovation rate 
B)  Ideal Average Room Rate computation 
C)  Rule of Thumb room rate calculation 
D)  Hubbart Room Rate Formula 
E)  All of the above 
A)  Cost of Renovation rate 
B)  Ideal Average Room Rate computation 
C)  Rule of Thumb room rate calculation 
D)  Hubbart Room Rate Formula 
E)  All of the above

Question 15

Franchise fees are charged on either a per room basis or as percentage of room sales.

Accepted Answer

A) True 
 B)False

Question 16

The comment that the "business of hotels"is no longer the "hotel business"means that:

Accepted Answer

A)  There are so many hotel types that no one can define "the" hotel any longer 
B)  The focus of the lodging business has shifted from guest reception and hospitality to technical matters of law, economics and the like 
C)  Corporations, not individuals or families, now own most hotels 
D)  Lodging is now referred to as an "industry," not a "business" 
E)  None of the above 
A)  There are so many hotel types that no one can define "the" hotel any longer 
B)  The focus of the lodging business has shifted from guest reception and hospitality to technical matters of law, economics and the like 
C)  Corporations, not individuals or families, now own most hotels 
D)  Lodging is now referred to as an "industry," not a "business" 
E)  None of the above

Question 17

Tour-group coupons accepted by the restaurant cashier in payment for the lunches of tour members are accumulated and charged eventually on the individual folios of each guest.

Accepted Answer

A) True 
 B)False

Question 18

Many lodging companies own, manage, lease and/or franchise hotels. Which company only franchises?

Accepted Answer

A)  Hilton 
B)  Cendant 
C)  Marriott 
D)  Best Western 
E)  Inter-Continental 
A)  Hilton 
B)  Cendant 
C)  Marriott 
D)  Best Western 
E)  Inter-Continental

Question 19

Hotel reservations are legal contracts, which is why law suits by hotels against guests for no-shows and law suits by guests against hotels for failing to honor their reservations are growing in number and dollar settlements.

Accepted Answer

A) True 
 B)False

Question 20

Quality guarantees are part of the yield management system; put into place when occupancy is medium to low and discarded when occupancy nears full capacity.

Accepted Answer

A) True 
 B)False

Tour groups are:

Point-of-sale terminals reduce the number of communication errors, in part, because they eliminate the need for hand-written vouchers.

Success in the hotel industry reflects, in part, the status of the real estate market.

The break-even point (as measured in percentage of occupancy) of the hotel industry is:

Timeshares are also called:

Bank credit-card companies pay the hotel/merchant in full at face value, but T&E card companies reduce the hotel's payments by merchant fees.

Typically, there are often 5 parties involved in the development and operation of a hotel; which of the following is NOT part of that group? A (An):

"Discounting"rates is industry-approved because it takes place in an elastic market; "rate cutting"is industry-disapproved because it takes place in an inelastic market.

The supposedly absolute rule that folios are always reduced to zero at check out has exceptions.

An example of an asset is:

A customer (hotel guest) who owes a business (hotel) for services that have been delivered by not paid for is know as an "account receivable."

Recognizing the marketing and economic potential, American hotelkeepers have vigorously introduced environmental programs and lobbied for environmental legislation.

Last room availability was launched in Washington DC because the city's hotels received payment from Congress to hold rooms for VIPs until midnight.

"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:

Franchise fees are charged on either a per room basis or as percentage of room sales.

The comment that the "business of hotels"is no longer the "hotel business"means that:

Tour-group coupons accepted by the restaurant cashier in payment for the lunches of tour members are accumulated and charged eventually on the individual folios of each guest.

Many lodging companies own, manage, lease and/or franchise hotels. Which company only franchises?

Hotel reservations are legal contracts, which is why law suits by hotels against guests for no-shows and law suits by guests against hotels for failing to honor their reservations are growing in number and dollar settlements.

Quality guarantees are part of the yield management system; put into place when occupancy is medium to low and discarded when occupancy nears full capacity.

The Traditional Hotel Industry

The Modem Hotel Industry

The Structure of the Hotel Industry

Forecasting Availability and Overbooking

Global Reservations Technologies

Individual Reservations and Group Reservations

Managing Guest Service

Arrival, Registration, Assignments and Rooming

Role of the Room Rate

Billing and the Guest Folio

Credit and the City Ledger

Cash Transactions

The Night Audit

Hotel Technology

Filters

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

Tour groups are:

Point-of-sale terminals reduce the number of communication errors, in part, because they eliminate the need for hand-written vouchers.

Success in the hotel industry reflects, in part, the status of the real estate market.

The break-even point (as measured in percentage of occupancy) of the hotel industry is:

Timeshares are also called:

Bank credit-card companies pay the hotel/merchant in full at face value, but T&E card companies reduce the hotel's payments by merchant fees.

Typically, there are often 5 parties involved in the development and operation of a hotel; which of the following is NOT part of that group? A (An):

"Discounting"rates is industry-approved because it takes place in an elastic market; "rate cutting"is industry-disapproved because it takes place in an inelastic market.

The supposedly absolute rule that folios are always reduced to zero at check out has exceptions.

An example of an asset is:

A customer (hotel guest) who owes a business (hotel) for services that have been delivered by not paid for is know as an "account receivable."

Recognizing the marketing and economic potential, American hotelkeepers have vigorously introduced environmental programs and lobbied for environmental legislation.

Last room availability was launched in Washington DC because the city's hotels received payment from Congress to hold rooms for VIPs until midnight.

"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:

Franchise fees are charged on either a per room basis or as percentage of room sales.

The comment that the "business of hotels"is no longer the "hotel business"means that:

Tour-group coupons accepted by the restaurant cashier in payment for the lunches of tour members are accumulated and charged eventually on the individual folios of each guest.

Many lodging companies own, manage, lease and/or franchise hotels. Which company only franchises?

Hotel reservations are legal contracts, which is why law suits by hotels against guests for no-shows and law suits by guests against hotels for failing to honor their reservations are growing in number and dollar settlements.

Quality guarantees are part of the yield management system; put into place when occupancy is medium to low and discarded when occupancy nears full capacity.

The Traditional Hotel Industry

The Modem Hotel Industry

The Structure of the Hotel Industry

Forecasting Availability and Overbooking

Global Reservations Technologies

Individual Reservations and Group Reservations

Managing Guest Service

Arrival, Registration, Assignments and Rooming

Role of the Room Rate

Billing and the Guest Folio

Credit and the City Ledger

Cash Transactions

The Night Audit

Hotel Technology

Filters