Type:
Test Bank
Resource:
Check-in Check-Out Managing Hotel Operations
Edition:
9th Edition
Author(s):
Gary K. Vallen Jerome J. Vallen
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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
.
1/5
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7
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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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20
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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. 4/5