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A hotel has 95% occupancy but declining profit. The most likely issue is:
A. High demand
B. Excess discounting and weak yield management
C. Strong branding
D. High ADR
Answer: B
Rationale: High occupancy with low profit usually indicates poor pricing strategy.
RevPAR increases while occupancy remains constant. This means:
A. ADR increased
B. Costs increased
C. Demand decreased
D. Staffing increased
Answer: A
Rationale: RevPAR rises when average room rate increases.
A guest receives fast complaint resolution but leaves dissatisfied. This is:
A. Service success
B. Emotional dissatisfaction despite technical recovery
,C. Billing issue
D. No failure
Answer: B
Rationale: Emotional expectations were not met.
Overbooking works best when based on:
A. Guesswork
B. Historical no-show data
C. Staff opinion
D. Random selection
Answer: B
Rationale: Statistical forecasting reduces risk.
A hotel increases rates but occupancy drops sharply. This indicates:
A. Strong demand
B. Price sensitivity
C. Better marketing
D. Loyalty increase
Answer: B
Rationale: Demand is elastic.
A hotel introduces automation but guest satisfaction drops due to reduced human
interaction. This reflects:
A. Operational success
B. Loss of service personalization
C. Cost increase
D. Higher efficiency
Answer: B
Rationale: Hospitality depends on human touch.
, Housekeeping is efficient but guests complain about cleanliness. This indicates:
A. Good management
B. Quality control failure
C. Overstaffing
D. Strong SOPs
Answer: B
Rationale: Output quality is poor despite efficiency.
High staff turnover despite good salary indicates:
A. High workload
B. Poor organizational culture
C. Strong leadership
D. High demand
Answer: B
Rationale: Culture affects retention more than salary alone.
No-show rates increase during holidays. Best strategy:
A. Stop bookings
B. Adjust forecasting + overbooking
C. Increase prices blindly
D. Reduce staff
Answer: B
Rationale: Dynamic revenue management is needed.
RevPAR increases but ADR decreases. This means:
A. Efficiency improved
B. Occupancy increased