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Exam 2: The Modem Hotel Industry

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Question 1

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An industry "rule of thumb"is a simple formula for converting the square footage of a guest room into the square meters of the metric system.

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Question 2

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

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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.

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

Which lodging company does not own, nor manage, nor lease, nor franchise hotels?

The kitchenette is to the ________ as the swimming pool is to the motor hotel; everyone wants it, but few use it,

Spas come in various formats just as hotels do; which of the following is not recognized as a spa type? (The question ask for a spa type, not a spa service.)

Brand equity requires several components to be in place; which of the following is least critical to brand equity?

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

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

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

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.

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

Improving RevPar industrywide has brought rising amenities with it.

A pure management contract is almost unknown today because management companies must put up some equity if they hope to win the management contract.

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

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

Hotels and conference centers alike face competition from in-house (company-owned) training centers that book other activities when not being used by the company.

Joint Ventures are partnerships of entities (such as governments, private corporations, pre-existing partnership, equity firms, etc.) rather than partnerships of individual persons.

Most states that allow casino gambling have passed legislation that forbids casinos to be part of mixed-use projects.