HMGT Exam 1 Questions With Complete Solutions
2 special characteristics of hotels Correct Answers perishability
and location
4 primary functions in hotel's arsenal of applications Correct
Answers 1. A CRS
2. GDS connectivity
3. connections to alternative distribution systems
4. internet reservations
A 600 room hotel sold 420 rooms last night. If there were 12
rooms OOO OR OOI how would that change the occupancy %?
Correct Answers A. 420/600=0.7 OOO doesn't affect the
occupancy %
B. 420/588=0.7143 (because 600-12)
**OOO doesn't affect the denominator of the equation, while
OOI does!!!
A perfect fill (a sold out night where every hotel room is
physically occupied) is not the same as 100% occupancy.
Therefore, it is theoretically possible for hotels to show 100%
occupancy without attaining a perfect fill Correct Answers T-
perfect fill is not the same as occupancy (100% occupancy, there
can still be a few unoccupied rooms) *Occupancy % (rooms
committed today/rooms sold), reservations in the committed
today part could fall through
A simple, unadjusted room count does not consider understays,
overstays, cancellations, no shows or early arrivals in the
calculations Correct Answers T
,Adjusted room count Correct Answers more sophisticated,
accounting for many issues, more accurate, just a room count
takes into consideration, no shows, reservations-can only do
closer to arrival
computing rooms available
Rooms available
Occupied last night
Expected check outs
+ understays
- overstays
Adjusted departures
Adjusted stayovers
Adjusted rooms available for sale Correct Answers rooms
available - rooms committed today
adjusted rooms committed today Correct Answers adjusted
stayovers + today's adjusted reservations
Adjusted stayovers Correct Answers occupied last night -
adjusted departures
ADR Correct Answers Average Daily Rate
Sales per Occupied Rooms
-the dollar amount received for each room sold
average daily rate = room sales (measured in dollars) / # of
rooms sold
*measure the quality of the business
, advance deposits Correct Answers reduce no shows (cash or
check), check held but not cashed, cancel reservation if deposit
not received
Airlines use GDS Correct Answers Global Distribution Systems
(all channels coming together) started in 1960, linked airlines
with Travel Agents (TAs)
amenity creep for economic hotels Correct Answers to compete
better/feed ego, resulting in increased prices ex. free soap to free
soap + shampoo + conditioner + lotion *economy hotel becomes
mid-market
American plan (AP) Correct Answers room + B/F + Lunch or
dinner, may need to specify which one in advance, may use
coupon for either meal
Anticipated occupancy % Correct Answers rooms committed
today/rooms available
Application Service Providers (ASPs) Correct Answers -no
need to make large capital investments in hardware and software
or employ many specialized software engineers to maintain the
system and program new applications
-avoid multiple versions of poorly integrated applications
-new software enhancements are implemented immediately at
the ASP site and available to all users instantaneously
are variable costs high? Correct Answers no. variable costs per
occupied rooms are low (cost of cleaning, replacing linen,
2 special characteristics of hotels Correct Answers perishability
and location
4 primary functions in hotel's arsenal of applications Correct
Answers 1. A CRS
2. GDS connectivity
3. connections to alternative distribution systems
4. internet reservations
A 600 room hotel sold 420 rooms last night. If there were 12
rooms OOO OR OOI how would that change the occupancy %?
Correct Answers A. 420/600=0.7 OOO doesn't affect the
occupancy %
B. 420/588=0.7143 (because 600-12)
**OOO doesn't affect the denominator of the equation, while
OOI does!!!
A perfect fill (a sold out night where every hotel room is
physically occupied) is not the same as 100% occupancy.
Therefore, it is theoretically possible for hotels to show 100%
occupancy without attaining a perfect fill Correct Answers T-
perfect fill is not the same as occupancy (100% occupancy, there
can still be a few unoccupied rooms) *Occupancy % (rooms
committed today/rooms sold), reservations in the committed
today part could fall through
A simple, unadjusted room count does not consider understays,
overstays, cancellations, no shows or early arrivals in the
calculations Correct Answers T
,Adjusted room count Correct Answers more sophisticated,
accounting for many issues, more accurate, just a room count
takes into consideration, no shows, reservations-can only do
closer to arrival
computing rooms available
Rooms available
Occupied last night
Expected check outs
+ understays
- overstays
Adjusted departures
Adjusted stayovers
Adjusted rooms available for sale Correct Answers rooms
available - rooms committed today
adjusted rooms committed today Correct Answers adjusted
stayovers + today's adjusted reservations
Adjusted stayovers Correct Answers occupied last night -
adjusted departures
ADR Correct Answers Average Daily Rate
Sales per Occupied Rooms
-the dollar amount received for each room sold
average daily rate = room sales (measured in dollars) / # of
rooms sold
*measure the quality of the business
, advance deposits Correct Answers reduce no shows (cash or
check), check held but not cashed, cancel reservation if deposit
not received
Airlines use GDS Correct Answers Global Distribution Systems
(all channels coming together) started in 1960, linked airlines
with Travel Agents (TAs)
amenity creep for economic hotels Correct Answers to compete
better/feed ego, resulting in increased prices ex. free soap to free
soap + shampoo + conditioner + lotion *economy hotel becomes
mid-market
American plan (AP) Correct Answers room + B/F + Lunch or
dinner, may need to specify which one in advance, may use
coupon for either meal
Anticipated occupancy % Correct Answers rooms committed
today/rooms available
Application Service Providers (ASPs) Correct Answers -no
need to make large capital investments in hardware and software
or employ many specialized software engineers to maintain the
system and program new applications
-avoid multiple versions of poorly integrated applications
-new software enhancements are implemented immediately at
the ASP site and available to all users instantaneously
are variable costs high? Correct Answers no. variable costs per
occupied rooms are low (cost of cleaning, replacing linen,
