QUESTIONS WITH SOLUTIONS
◉ Which is a true statement about Parent Companies? Answer:
Parent companies are the related chains that have changed over
time
◉ What are the three different operation types? Answer: Chain
Management, Franchise, Independent
◉ Which is a true statement about independent hotels? Answer:
Independent hotels are not affiliated with a specific chain
◉ Which is a true statement about Management Companies?
Answer: Management companies have contracts where they receive
payment for their services and/or some portion of profits
◉ Which is a true statement regarding geographic categorization?
Answer: STR uses the UNWTO definitions when it comes to
recognizing countries
◉ Which is a true statement regarding markets? Answer: No market
will ever cross country boundaries
,◉ In descending order of geographic size, which option below is
correct? Answer: Continent
Sub-Continent
Country
Market
Sub-market
◉ Which two geographic categories are the most important for a
hotel GM? Answer: Market and Sub-market
◉ Markets and submarkets are created based on what two
determining factors? Answer: Number of hotels and participation
◉ Which is a true statement regarding sub-markets? Answer: A sub-
market may represent a small city in a rural market
◉ Changes to how Markets and Sub-markets are geographically
defined are made how often? Answer: Annually
◉ Which two non-geographic categories are the most important for
a hotel GM? Answer: Scale and Class
◉ How many Scale categories are there compared to Class
categories? Answer: 7 Scale categories and 6 Class categories
, ◉ Which one of the following is an accurate statement regarding
Scale and Class groups and a single chain? Answer: A Ritz Carlton
hotel will always be in the same Scale and Class groups in every
country throughout the world
◉ Which one of the following is an accurate statement regarding
Class groups? Answer: Independent hotels are slotted into Class
groups based upon the ADR of the independent hotel compared to
the chain hotels in the same market
◉ Which one of the following is NOT a Location Category used by
the hotel industry? Answer: Oceanfront
◉ Which is NOT a valid non-geographic category? Answer: Guest
Satisfaction Rating
◉ Benchmarking in the hotel industry takes place at what level?
Answer: Property level for an individual hotel versus their
Competitive Set
Corporate level for a hotel company, for example one brand versus
others
Geographic level for tourism organizations, for example city versus
comparable cities