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Exam (elaborations)

HMGT Exam 1 Questions and Answers

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HMGT Exam 1 Questions and Answers

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Future of rooms
adjusted Travel committed
Video today

Correct
QuestionAnswer: -sustainability
74. adjusted
28. -increased
stayovers personalized
+ today's services -increased
adjusted reservations
speed
extended stay
Manager of Guest Services
Question 92. HMGT Exam 1 Questions and Answers
Correct Answer:
Question 116. more home-like
front office, (kitchenettes,
suggest fireplace,
things to do laundry)
(kinda like ex) extended
concierge)
Adjusted rooms available for sale
stay America, residence inns (marriott) -want space and people to help navigate
Yield Management Revolution
Question
Correct 1.
Answer:
75. rooms available - rooms committed today
Correct
Question Answer:
29. the act of controlling rates and restricting occupancies to
Split Shift product
perishable
maximize
Question gross
93. room revenues
european plan
Correct Answer: good unsold for management,
rooms *lots of last bad for workers
minute deals (more common in
Anticipated occupancy %
Correct
smaller,Answer:
Question 117. room
isolated areas, only
less common now bc unionized and commuting
Correct Answer:
Question 2. Mix rooms committed today/rooms available
Price Occupancy
Question
why do hotels 2.
30.
76. have high break-even points?
Correct
Question Answer:
94. revenue is a function of rooms sold and revenue per room -high
continental
FO clerk/guest plan services/reception
Correct
ADR canAnswer:
balancebecause low occupancy of fixedand (always have to
vice versa -a pay) ex. Rent,
$2 increase in utilities,
ADR in a 400
A 600 room hotel sold 420 rooms last night. If there were 12 rooms OOO OR OOI how
Correct
salaries,
room Answer:
hotel= and $200,000 room expenses
variable + lightguest
sales,
-true, breakfast
only (change (continental
ifrelations,
there with
is norecord
occupancy) breakfast
keeping,
corresponding = juice, rolls,
coordination
ex. Electricity,
decrease cleaning
in
would that change the occupancy %?
tea/coffee
(increased
cost depends
occupancy
Correct Answer:automation
% on refers
occupancy.is
to changing roomroles,
anyhotels have
in whichreduced
high fixedkeys
there's costs,
more and low
thanmail)
variable
one person costs,
and
Correct
"only the
double Answer:
third owner
occupancy A.increases
420/600=0.7
makes per money"OOO because
room doesn't
revenueaffect
ofif huge
ratesthe occupancy
fixed
are incost
person % B.
upfront"
Question
420/588=0.7143 3.
77. (because 600-12) **OOO doesn't affect the denominator of the
31.
118.
equation,
Question while
3.can
8. OOI does!!!
American
old v. newplan
Yield/REVPAR (AP)be
building structure
increased by
Question
occupancy point
Break-even 159.
Correct
Question room
old: odd
Answer: Increasing + B/F + Lunch
shape,
rates small,
when or sharing
dinner, bathrooms,
demand may
is highneed tonew:
specify
Decreasing which
larger,
rates one in
more
when
flat rate/run 95. of the house
advance,
amenities,
the demand
Correct may
Answer: is use
themed,
low coupon forbetween
less variation
relationship
to (increasing
break even either
occupancy)
is to havemeal
demandYield(the
neither # ofnor
isprofit
expressedrooms byactually
loss. Gross
break-even sold)
Revenue
overbooking
and day,
per
Correct
points supply
are per
Answer: (the
month,
important # of per
some rooms
getyear
because available
REVPAR
suites;
there someisfor
combines
no sale).
getprofit measures
ADRall
singles,
until andpay
that "share
occupancy
same
point isof the
rate,to market"
reached one
Correct
so it measures
number
organizers
Question Answer:
32.
78. more
mayquantity.
give bookings
list Formula:
of who getsthan rooms rooms
occupancy
better torate
anticipate no shows
in % = rooms sold/*protect
rooms from
revenue
available
Question loss
for9. sale
Themes of Hotels
Out of order (OOO)
Question
Correct
T/F High double 4.
119.
160.
Answer: refers toisany
occupancy one room in which
neg. facing resortthere's
hotels more
which than one person
incur added and
linen, soap,
Correct
Question Answer:
96.
4. B&B,
roomsAirbnb,
temporarily Boutique hotels, Trophy
unavailable due to hotels
fixable(prideproblems of -can be
doubleand
spread
water, occupancy
yield/REVPAR
rate other increases
is calculated
housekeeping per roomwhen
by multiplying
expenses revenue
guests if double
rates are up in inrooms
person
ownership,
fixed quickly big name hotels
if essential -notoften
added bought for prestige
to committed rooms rather
-canthan be soldfor profit)
at a ex)
perfect
ADR fill
Waldorf
discounted
Correct Astoria
Answer: pricein occupancy
a
F NYC
negotiated
(charging by ADRfor
discount
more REVPARbelow=expecting
rooms, 65%
the * 75rate.
rack =
more48.75
members
people to pick
staywhat
Question 8.
Correct
they want
(provides Answer: when
Average
more opportunity everyDaily room
for Rate is Sales
physically
additional per occupied
Occupied
sales), (but even
higher Rooms
ADR -thewith
dollar 100%
Break-even
occupancy
amount
Question 120. point
still
received
33.
79. usually
for eachare a
room few unoccupied
sold average rooms)
daily rate = room sales (measured
Question
in dollars)
Correct
brands
corporate 5.
/ # of rooms sold *measure the quality of the business
161.
10.
Answer:
under
Out of Inventory
guests to break even is to have neither profit nor loss. break-even
Marriott
(OOI)
Question
points
Handling
T/F are
"hotels Tour 97.
important
fill Group
from the because
Reservations
bottom up"there is no profit
so REVPAR gains as until that point
occupancy gainsis reached
Correct
Question Answer:
5. rooms
less unavailable
price sensitive,long seeksterm due to non-fixable
flexibility, weekday travel, problems,books at
overbooking solutions
cannot
the lastbe
Correct sold today
minute,
Answer: cannot
handled
T due
(whenever to sales/tour
wait
by unacceptable
for
you deals condition,
book department
a room, added
rather
whatever than
the tocomputer
committed
reservations, rooms,
gives
How is ADR 9.
Question misleading?
Correct
don'tas
yield
you aAnswer:
have
management
priceavailable
per"walk"
a bigto
night is another
factor
the least property,
in negotiations,
expensive pay forthe
premium
rate taxi, phonecall,
is
hotel charged
can offer available
for single
but closer
T/F
room,High
Correct
occupancy,
to the double
apologize
Answer:
arrival
Question 121. occupancy
hotels with
focuses
date, ask
thegift
foris
on
price one neg.
rooms
rooming facing
sold,
increases)list in resort
doesn't
advance hotels
take which
into incur
account added# linen,
of roomssoap,
for
water,
sale andcan
and
Question other
80. housekeeping
sell the highestexpenses room in when guests
the hotel anddouble
haveup in rooms
that represent ADR
Leisure Guests
Question
Correct
understay 6.
98.
162. F (charging more for rooms, expecting more people to stay
11.
91.
Answer:
Correct
Question Answer: very price sensitive, weekend travel, will trade prices for
6.arecommitted
(provides
The
Room term walking
blocks
perishability
adjusted more
rooms opportunity
an overbooked
________________
today for
foradditional
guest easymeans sales),
virtually
scheduling higher
ofthe same ADR as walk in guest
__________________
Correct Answer:
restrictions, leaves earlier
is motivated by deals than expected
RevPar
Correct Answer: F preassigned,
at midnight,
adjusted arrivals/departures/HK
value
stayovers of+ unsold
today'sinventory
adjusted (hotel
is $0, may
reservations havetomorrow's
selling separate
Question 10.
Correctdesk,
group
inventory
Question Answer:
81.lobby,
tomorrow, (Revenue*puts per
entry/exit Available
for
pressure groups Room)
and
to sell in $ the are
gratuities
"now" relationship
included in between
price)
T/F "hotels
Question
revenue fill
per 7.
99.
92.from
room the
and bottom
the up"
total so REVPAR
room gains
inventory as occupancy
available. gains
measure how well
overstay
management
Question 12.fills rooms, without cutting prices. REVPAR= room revenues (sales
Correct
A simple,Answer:
Adjusted unadjusted
rooms T (whenever
roomfor
available sale you
count doesbook a room,understays,
not consider whatever overstays,
the computer gives
cancellations,
Correct
in $) / # Answer:
of roomsstays later for
available than saleexpected
*diff between RevPar and ADR- numerator
you
no as aisor
shows
location priceearly per nightinisthe
arrivals the least expensive rate the hotel can offer but closer
calculations
Correct
the same Answer:
but therooms available
denominator for- rooms
Rev is # committed
available today for sell, ADR # of rooms
to the arrival
Correct Answer: date,
T the price increases)
Correct
sold
Question Answer:
82. fixed (can't move or deliver to high demand areas), changing
value of fixed
Question 93. locations, marketing and sales very important
Question 8.
stayover 11.
100.
Question 7.
Anticipated occupancy %
perishability
A perfect
Question fill (a sold out night where every hotel room is physically occupied) is not the
13.
Double Occupancy
same
Correct as 100%
Answer: occupancy. Therefore, ittoday/rooms
rooms committed is theoreticallyavailable
possible for hotels to show 100%
Correct
2 special Answer:
characteristicsat midnight,
of hotelsvalue of unsold inventory is $0, selling tomorrow's
occupancy without attaining a perfect fill
inventory tomorrow, *puts pressure to sell "now"
Correct Answer: perishability and location

,quality of reservation
saturated market
perishability
Correct
Question Answer:
125. probability of no show, guaranteed/ nonguaranteed, advance
deposit
Correct Answer: discover identified
at midnight, service
value of unsoldgaps in competitors
inventory *distinguish
is $0, selling tomorrow's
PHASER complete access reports by TravelCLICK does what? & what are the features?
from others
inventory tomorrow, *puts pressure to sell "now"
Correct Answer:
Question 144. breaks the hotel rates into 2 categories: GDS and CRS and looks
Question
for the lowest
Confirming the9.
62. available rate in each of these areas -highlighted rates that have
12.Reservation
risen or dropped by a user defined amount -total hotel availability status by day
chains
locationare
is __________ in popularity
in both the
Correct GDS and
Answer: the confirmation
unique CRS -details for everyisrate
number offeredby
generated in computer,
the CRS byunique
room
type
numberacross
Correct
Question each
serves
Answer:
49. ascompetitive
"proof"
increasing,
fixed hotel
enables
(can't has
move during
tracking,
large
or the
deliver selected
printed
capital time
highconfirmation
needs
to but
demand period
increased mailed
areas), to guest
marketing
changing
on request
clout
value and ability
of fixed to invest
locations, and leverage
marketing technology
and sales very important
Spas
Question 126.
Correct
QuestionAnswer: resort on mineral or curative waters
Smith Travel10.
145.
63.
13.
Research's STAR Reports is based entirely on
reservation
management info then v. now
contracts
2 special characteristics of hotels
Correct
Question Answer:
50. historical data -answer q's: how well did I do in terms of
average daily rate,
Correct Answer: occupancy,
then:
management
perishability andlocation
guest history
company
and REVPAR against
on property
operates mynow
level,
hotel competitors
centralized
within lastguest
conditions week?
set by a
New Market Pattern guest types
Last month?
Correct
history
contract Answer:
with
for a Last
feeTyear? -does not share specific performance data for each
computerization
Correct
competing
Question Answer: guest
property
14. profile
-hotel can't(millennials),
see how well business/leisure
each competing travelers (business
hotel performed
inelastic
Question whereas
individually 11.
100.
146.
64. leisure is elastic and looks for discounts), international guests
why do hotels have high operating costs (hint: intensive...)
(longer length of stays, cultural differences, higher spending)
A perfectdeposits
advance
franchiseefill (a sold out night where every hotel room is physically occupied) is not the
Correct
Question Answer:
127. capital intensive labor intensive hassles and costs of dealing
same as 100% occupancy. Therefore, it is theoretically possible for hotels to show 100%
Correct
with
Question Answer:
labor 51. reduce no shows
buyer acquires (cashfrom
rights or check), check
the seller held but not
(franchisor) cashed,
to use name,
Travel Information
occupancy without Management Services
attaining a perfect fill (TIMS)
cancel
productreservation
and systemif deposit not received
Preferred Guest Programs (PGPs)
Correct Answer:
Question 15. Rates are gathered
T- perfect through
fill is not the sametheas CRS' seamless
occupancy (100% connection.
occupancy,
Correct
Displays
there can
Question Answer: beget
discounts
still a andpoints
few for available
lowest
unoccupieddiscounts
rooms) during
rates fornext stay
all hotels
*Occupancy ifin
stick
% (rooms with same
the committed
competitive
are variable 147.
65.
costs high?
brand,
market first started by American Airlines adv: loyalty, mailing
set sold), reservations in the committed today part could fall through
today/rooms lists, guest
Credit
generalCard Guarantees
manager (GM)
profiles dis: costly to set up and administer, liabilities, ethical issues
Question
Correct 12.
Answer:
101. guest
128. guaranteed for
boss, responsible that hotel will hold
everything in hotel,room indefinitely,
supervises in to
*used
return
be host,
Question guest
now52.
41. promises
executiveto pay withissues)
(business credit card even if no show (credit card not
Understays and
Hotelligence overstays both affect the room count in the same direction. They both
Report
charged unless no show)
non
allowguests
brand equity
the buyer
hotelcan and
to be aadv
fewv.more
sellincreased disby rooms to compensate for the projected understays
Correct Answer: -Compares a manager's rooms available with those available in
and/or overstays.
Correct Answer:
the competitive
Question intermediary
1. instant
148. market and between
setidentification the
room-nights hotel
(the sold and
Hilton the manager's
forname-
the guest who
certain buys the
expectations
hotel
against
room
at Hilton
Correct
Question room-nights
forAnswer:
the
57. guest
hotels) F sold across
2. benefits:
broad dealthe
distributionwithcompetitive
one person
(holiday innset -Compares
(lower
hotels- costs aactual
have and of history
lothassle),
late arrivals
with theoretical
saves commission
locations), market
3. consistent share
to credit
quality -Shows
cards, growth
travel
(hampton inn-trends
agents, saves
good forcosts
value current
to and periods
hasslesagainst
consumers, of
certain
incentive travelers
similar
Correctofperiods
individual
level
Question bad
Answer: the
102.debts,
service), 4. previous
ensure buy
assuredbulk,
room year
isrisk
level of to
held, intermediary
service (4 seasons,
particularly dis: quality
discount
if guaranteed heavily, will
service)
get blame
Correct for intermediary's
Answer: rewarding top problems
employees with all expenses paid trips
Reservations are only legal contracts if the guest mails in a deposit (or has the credit card
Question
Question
charged at the
13.
129.
42.
149.time of reservation) and the hotel returns a receipt and/or written
Question
Expedia
amenity
corporate
confirmation
53.
58.
Competitive
creep for
guarantee Price Grid
economic Report
hotels
Market
state ofto Tourists/Leisure
the industry Groups
Correct Answer: to The hotel wants
compete
indefinite
F- hold,
reservations to see
better/feed
bill
are the
ego,rates
corporation
legal contractsifitno
resultingis show
listing in Expedia
in increased as ex.
prices well
as the
Correct
free rates
soap to listed
Answer: tourby packages,
freeoverbuilding,
soap competitors
+ shampoo high in
cheaperorderfortoguests
+operation
conditioner manage
costs, than
low
+ lotion itsdemand
own hotel-direct
components
*economy and bought
hotel Web
bankruptcy
site
individually
to less overbuilding
becomes
Question mid-market
150.
103.
Why refuse
most groups
hotel reservations done _________________
Question 14.
130.
54.
59.
43.
Correct Answer: groups may alienate non group guests, reduced image of
electronically
other reports
inclusive
the tour
industry
economy is(IT)
hotels packages because
_______________
exclusivity in luxury properties, group rate is substantially lower than individual
Correct
rates
Question Answer: -Sabre:doing
hotels
104. consolidating,
minimal net reports
own
large
services -hotel information
packaging,
companies
(amenities service
eliminates
and are cost
buying
charging (HIS)
smaller
low rates)reports
ones
-CheckRate -TrendFx -HVS's In-Focus Lodging Reports
hotels use CRS, a
Question 15. 55.
60.
44.
Correct
Question Answer:
131. Central Reservations Systems (property management system),
SMERF
different lodging
underserved markets
segments (long stays)
central call center to handle incoming reservations
Role of Yield Management Systems
Correct Answer: newSocieties, Medical,
product
extended University,
development
stay hotels, corporateReligious,
*aren't Fraternal
many competing
housing, mixed useplayers
projects
Correct
Question Answer:
105. -Establishes and monitors rate structure -Continually monitors
Question
reservations 16.
activity and sets inventory controls as needed -Aids rates
61.
45.
56.
Airlines use GDS
negotiations with bulk buyers -Monitors and restricts the number of
mixed usemarket
saturated
convention
reservations
Correct thatGlobal
Answer: can beDistribution
taken for any particular
Systems room rate/room
(all channels comingtype -Enables
together)

, Correct call
central Answer:
center newto product development
handle incoming *aren't many competing players
reservations
locations),
Correct 3. consistent
Answer:
yield management controls quality
landlord/tenant
nests and(hampton
relationshipinn-
hurdles fence good value
between
rates hoteltoand
consumers,
guest, certain
level of service),
permanent 4. assured
occupancy ex) NYClevel of service
Waldorf (4 seasons, quality service)
Astoria
Question 61. -nests and hurdles- hurdle point is set, lower rates rejected
105.
Correct Answer:
(hurdle at $100, discounts closed off, only high rated rooms sold) -fenced rates-
saturated
Airlines
against
Question market
use GDS
room-nights
28.
42. sold across the competitive set -Compares actual history
logical rules that give options based on sensitivity -discounts for 21 days/14 day
with theoretical market share -Shows growth trends for current periods against
Correct creep
amenity
extended
advance Answer:
stay
+ discover
Global
for economic
weekend stay, identified
Distribution
hotels service
Systems
non-refundable- nogaps
(all in competitors
channels
discounts forcoming*distinguish
together)
weekday, last minute
similar periods the previous year
from others
started
bookings in 1960, linked airlines with Travel Agents (TAs)
Correct Answer: to more home-like
compete (kitchenettes,
better/feed fireplace,
ego, resulting laundry) ex)
in increased extended
prices ex.
stay soap
free America,
Question to
129. residence
free soap + inns
shampoo(marriott) -want space
+ conditioner and people
+ lotion *economyto help
hotelnavigate
Question
Question 17.
62.
106.
133.
becomes mid-market
Expedia Competitive Price Grid Report
chains
4
Travel
Questionarefunctions
primary __________
agents
29. inhotel's
popularity
are noinlonger arsenal
paid of applications
on commission (of any size) for booking domestic air
Correct
travel on Answer:
Question most The
43.of the hotel
major wants
airline to see the rates it is listing in Expedia as well
carriers
Correct Answer:
european plan increasing,
1. has large
A CRS 2. GDS capital needs
connectivity but increased
3. connections marketing
to alternative
as the rates listed by competitors in order to manage its own hotel-direct Web
clout and
distribution
economy
Correct ability
hotels
Answer: to invest
systems
T and leverage
4. internet technology
reservations
site
Correct Answer: room only
Correct Answer: minimal services (amenities and charging low rates)
Question 18.63.
134.
Question 130.
30.
management
T/F contracts offices have experienced higher and higher 1-800 telephone call
Central Reservation
Question 44.
other reports
continental plan
volume in recent years. Most experts suggest this is partly due to the Internet. Guests first
Correct Answer:
different management
lodging segments company operates hotel within conditions set by a
(long stays)
Correct
check theAnswer:
Internet -Sabre:
room net
andreports
+ light
for prices call-hotel
breakfast
then toinformation
(continental
CRS service =
breakfast
book the rooms (HIS) reports
juice, rolls,
contract for a fee
-CheckRate
Correct
tea/coffee -TrendFx
Answer: -HVS's
extended
F In-Focus
stay hotels,Lodging
corporateReports
housing, mixed use projects

Question 64.
Question 19.
Correct Answer:
135. no. variable costs per occupied rooms are low (cost of cleaning,
131.
45.
31.
franchisee linen, utilities used etc.) *high fixed costs!! (mortgage, utilities,
replacing
Role
mixed ofuse
American
In terms Yield
ofplanManagement
yield(AP)
management, Systems
experts generally consider leisure (transient) guests to be
salaries, marketing etc.)
Correct
more rateAnswer:
sensitivebuyer acquires guests
while corporate rights are
from the seller
generally more(franchisor) to use name,
date sensitive
Correct Answer: -Establishes
part
roomof + aB/F +and
complex monitors
Lunch of or
offices, rate
dinner, structure
retail,
may housing,
need to-Continually monitors
entertainment,
specify which oneand
in
product and system
reservations
recreation,
advance,
Correct
Question maymight
Answer:
16.activity
useT have and
coupon sets
shopping inventory
mall,
for either big
meal controls
rooms as forneeded
meetings -Aids rates
negotiations
Correct Answer: withno.
bulk buyerscosts
variable -Monitors and restricts
per occupied roomsthe arenumber
low (costof of cleaning,
seasonality and
Question 65. solutions
Question
reservations
replacing 20.that
linen,
46.
32.
136. can beused
utilities taken for any
etc.) *high particular room(mortgage,
fixed costs!! rate/room type -Enables
utilities,
general manager
reservationists
Correct
salaries, Answer:
marketing(GM)
to sell,
within rather than beweek.
year, month,
etc.) ordersolutions:
taker -Matches
extend the right (sales
season room
corporate
Themes ofhousing
T/F: telephoneHotels
reservations are declining over the years
product and
promotion rate
and newwith the customers
activities) seek new needs and price/other
markets sensitivities
location (open properties with
Correct Answer: boss, responsible for everything in hotel, supervises *used to
Correct
-Provides
counter
Question Answer:
reports
season) long
T to
B&B,
16.executive stay apartments
management
Airbnb,
(increase inBoutique with
for basis
reservations hotel
of
hotels, services,
accepting
Trophy
online, andmay
hotels
5 call centers beinpermitted
rejecting
(pride timein
of bookings
peak
be host, now (business issues)
residential
and can give
ownership,
but now onlyareas,
suggestions
big
3)nameexempt
hotels from
foroftenhotel
improving room
bought yieldtaxes
for prestige rather than for profit) ex)
seasonality and solutions
Waldorf Astoria
Question 17. in NYC
Question
Correct Answer:21.
137. within year, month, week. solutions: extend season (sales
47.
132.
mixed use development
promotion
Question and new activities) seek new markets location (open properties with
33.
casino
yield hotels
management
T/F: busy people controls
make nests and
reservations onhurdles
telephonefence rates
Correct
counter Answer:
season) build hotel in area with multiple sources of guests
brands under Marriott
Correct Answer: -nests income
F from
and gaminghurdle
hurdles- (wins), rooms/food
point and beverage
is set, lower may be
rates rejected
"loss
(hurdleleaders"
Question 17. to discounts
at $100,
18. bring in guests,
closedoccupancy
off, only high % more
ratedimportant
rooms sold)than ADR *make
-fenced rates-
money rules
logical
Question through that
138. gambling,
give options more people
based on staying,
sensitivitymore money isfor
-discounts made
21 days/14 day
megahotel
mixed use development
advance + weekend stay, non-refundable- no discounts for weekday, last minute
T/F: more deals and discounts on the internet
bookings
Correct
Question Answer:
48. 1500build rooms
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more with multiple sources of guests
Correct Answer: T
conference centers
Question 22.133.
19.
18.
Correct
Question Answer:
139. specialized in conferences, meetings etc, bundled rates-
Travelhotel
large agents
megahotel are no longer paid on commission (of any size) for booking domestic air
Corporate Meeting Package (CMP), large meeting needs, can be communication
required
travel on info
mostfor
ofreservation
the major airline carriers
issues because
Correct Answer:of large
300
1500 groups
rooms
rooms orormore
more
Correct Answer: arrival
T and departure dates, # of nights, guest may not be
Question
aware 23.
of check
19. in/check out cycle (noon)
57.
20.
Question
incentive
medium 134.
travelers
hotel
large hotel
Question 140.
T/F Central Reservation offices have experienced higher and higher 1-800 telephone call
Correct Answer: rewarding
100
300 to 200 top
rooms or employees with all expenses paid trips
rooms
more
more components
volume of reservation
in recent years. Most experts suggest this is partly due to the Internet. Guests first
check the Internet for prices and then call CRS to book the rooms
Question 24.
Correct Answer:
20. types of bed/cot/crib needed, number and type (linked to
58.
21.
quality/price sensitivity) of rooms required, party size and type, groups may be
state
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mediumof the
hotel industry
hotel
referred directly to hotel/sales department, name, verification and recordbilling,

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