Hospitality Management Exam Latest Update tested questions and Accurate Answers.

Hospitality Management Exam Latest Update tested questions and Accurate Answers. There are two (2) main driving forces in the development and operation of the hotel business, what are they? Franchising and Management contracts What is franchising? -A concept that allows a company to expand quickly by allowing qualified people to use the systems, marketing, and purchasing power of the franchise. How does franchising work? -the company (franchisor) grants certain rights to the franchisee like rights to use their trademark, signs, proven operating systems, operating procedures, and its reservation system, marketing know-how, purchasing discounts, etc. for a fee How does franchising work for the franchisee? they agree by signing the franchise contract to operate the restaurant, hotel or franchise outlet in accordance with the guidelines set by the franchisor How did franchising begin? -Franchising hotels in the United States began in 1907, when the Ritz Development Company franchised the Ritz-Carlton name in New York City. What are the two (2) major challenges that franchising presents for the franchisor, and why? maintenance of quality standards and avoidance of financial failure on the part of the franchisee What is an average agreement between a franchisor and the franchisee? -an average agreement is based on three or four percent of room revenue. Which hotels are the world's leading franchisors of hotels? -InterContinental Hotels and Resorts -Wyndham Worldwide -Choice Hotels International What are examples of benefits to the franchisee? • A set of plans and specifications from which to build • National advertising • A centralized reservation system (CRS) • Participation in volume discounts for purchasing furnishings, fixtures, and equipment • Listing in the franchisor's directory • Low fee percentage charged by credit card companies What are some examples of some drawbacks for a franchisee? • Franchisees must pay high fees, both to join and ongoing. • Central reservations generally produce between 17 and 26 percent of reservations. • Franchisees must conform to the franchisor's agreement. • Franchisees must maintain all standards set by the franchisor. What are examples of benefits to the franchisor or franchise company? • Increased market share and recognition • Up-front fees What are examples of drawbacks to the franchise company? • The need to be very careful in the selection of franchisees • Difficulty in maintaining control of standards How can franchising be in your future? -you may work for a franchise -you may own a franchise -you may work for a franchisee What are advantages to buying a franchise rather than starting your own independent business? -by working with a larger company you get the benefits of its experience in running the business that you have chosen to enter. -the company might provide cash flow -The company might also provide other support services at little or no cost, such as marketing and advertising, site selection, construction plans, assistance with financing, and so on. -reduces your risk of failure What are some disadvantages of franchising? -Your expectations of success may not be met. -Perhaps the business does not have the potential that you expect -perhaps you are not willing to invest the time needed. -an overzealous or dishonest franchisor representative can mislead franchisees. -Freedom is restricted Before considering to undertake a franchise business, what should a potential franchisee do? -research and have a full discussion with family, friends, and business advisors, -You should carefully weigh whether you are psychologically suited to be a franchisee. What are referral associations? Associations that refer guests to other participating members. Which hotels would be part of referral associations? independent hotels What types of benefits would referral associations offer hotels? -share a CRS and a common image, logo, or advertising slogan. -referrals may offer group-buying discounts to members, as well as management training and continuing education programs. -also provides marketing support services and a reservation center. How are referral association properties different from franchised properties? -they offer similar benefits but at a lower cost What is involved in a management contract? -They became popular among hotel corporations because little or no upfront financing or equity is involved. -Hotel management companies often form a partnership of convenience with developers and owners who generally do not have the desire or ability to operate the hotel. What does the management company provide? The management company provides operational expertise, marketing, and sales clout, often in the form of a CRS. For how long is a management contract? for a period of five, 10, or 20 years. How is the management company compensated? -the company receives as a management fee, often a percentage of gross and/or net operating profit. -Today, many contracts are for a percentage of sales and a percentage of operating profit. This is normally 2 + 2 percent. Why have hotel companies opted for management contracts? -considerably less capital is tied up in managing as compared with owning properties. In which ways are the Real Estate Investment Trusts (REITs) a method of hotel development and ownership? -REITs must have at least 75 percent of their assets in real estate. -But in the 1980s, they began to own property outright, often focusing on specific sectors such as hotels, office buildings, apartments, malls, and nursing homes -Investors like them because they do not pay corporate income tax and, instead, are required to distribute at least 95 percent of net income to shareholders. Who are the leading REIT corporations in the hotel industry? Patriot American Hospitality, Wyndham Hotels, and Starwood Lodging Trust. Why is hotel ownership and development very capital intensive? it takes millions of dollars to develop a hotel What is a feasibility study? examines the market area's demand and supply, including any potential or real competition in the pipeline, and it determines the degree to which the proposed hotel project would be financially successful. Of what consists a feasibility study? -Revenue projections based on anticipated occupancy -average daily rate -revenue per available room -also helps determine the type of hotel that would best suit the market -One of the most important documents is a Summary Operating Statement, which details revenues and expenses for a period How can hotels be classified by geography? -hotels may be classified as world, continent, subcontinent, country, market, or submarket. -a hotel will also be classified as belonging to a market. The market in which a hotel belongs to is one of the most important geographic categories for a hotel general manager. A market is usually thought of as a city, but sometimes a market is thought to represent other areas such as rural areas outside of major cities. How can hotels be classified to location? A hotel may be located in an urban or city center, suburban, airport, interstate or freeway, resort, small town/rural, casino, full-service, extended-stay, all-suite, convention, or bed and breakfast. How can hotels be classified by price? economy/midscale under $100 per night upper midscale/upscale $100-$250 per night luxury $259-$659 all suites $159-$249 To which guests do City Center and Suburban hotels cater? meet the needs of the traveling public for business or leisure reasons. What are examples of the services that City Center and Suburban hotels offer? Generally, both city center and suburban hotels offer a signature restaurant, coffee shop, or an equivalent recognized name restaurant; a lounge; a named bar; meeting and convention rooms; a ballroom; and possibly a fancy night spot. To which guests do Resort Hotels cater? both leisure and group travelers. What are some characteristics of resorts? They are often a destination unto themselves and are developed to be all-encompassing, where the guest may not ever need to go off-property for entertainment, recreation, meeting, or relaxing. Why do guests go to resorts? Guests go to resorts for leisure and recreation. To which guests do Airport hotels cater? -consists of business, group, and leisure travelers. -Passengers with early or late flights may stay over at the airport hotel, whereas others rest while waiting for connecting flights. What is an example of a service that almost all airport hotels provide? transportation to and from the airport How would you describe Freeway and Interstate Hotels & Motels? -They are smaller than most hotels—usually fewer than 50 rooms— and are frequently mom-and-pop establishments or franchised -Motels are often clustered near freeway off-ramps on the outskirts of towns and cities. What are conference and convention hotels? -provide facilities and meet the needs of groups attending and holding conventions. What are Full-service hotels? -offer a wide range of facilities, services, and amenities, including: ~multiple food and beverage outlets including bars, lounges, and restaurants; ~both formal and casual dining; ~meeting, convention, and catering services. -Business features might include a business center, secretarial services, fax, in-room computer hookups, and so on. How were the Sumerians responsible for elements of hospitality? -they were the first to record elements of hospitality -the movement from hunting and gathering to growing their own crops opened up more time for other activities like, writing, creating poetry and tools, and making beer which led to the opening of taverns How did Greece & Rome contribute to elements of hospitality? -the code of Hammurabi required owners to report guests who planned crimes in their taverns -increased travel and trade made some form of overnight accommodations an absolute necessity -Romans constructed elaborate and well-appointed inns on all the main roads, about 25 miles apart What contributions were made in medieval times to hospitality? -in Europe, Charlemange established rest houses for pilgrims in the eighth century -in the late 16th century, a type of eating place for commoners called an ordinary appeared in England, serving a fixed price, fixed menu meal at a long common table How did Coffeehouses contribute to hospitality? -during the 17th century coffee houses sprang up all over Europe -first English coffee house opened in 1652 -they were social and literary centers -they helped sober up an entire continent How did the new world contribute to hospitality? -a tavern was built in Jamestown, Virginia, during the early days of the settlement. -The inn, tavern, or "ordinary" in the colonies soon became a gathering place for residents, a place where they could catch up on the latest gossip, keep up with current events, hold meetings, and conduct business. -after the Revolutionary War, they maintained their position as social centers, political gathering places, newsrooms, watering holes, and travelers' rests; now, however, these places were going by different names—hotels. How did the French Revolution contribute to hospitality? -the French Revolution helped to change the course of culinary history. -M. Boulanger, "the father of the modern restaurant," sold soups at his all-night tavern on the Rue Bailleul. He called these soups restorantes (restoratives), which is the origin of the word restaurant. -Because nearly all the best chefs worked for the nobility, who were deposed or literally "lost their heads," the chefs lost their employment. Many chefs emigrated to America, especially to New Orleans, a French enclave in America. What is service? -"the act or means of serving." To serve is to "provide goods and services for" and "be of assistance to." Who is a guest? anyone who receives or benefits from the output of someone's work. What is required to perfect service? 1. Focus on the guest. 2. Understand the role of the guest-contact employee. 3. Weave a service culture into education and training systems. 4. Emphasize high touch as well as high tech. 5. Thrive on change—constantly improve the guest experience. What is empowerment and how is it relevant? a feeling of partnership in which employees feel responsible for their jobs and have a stake in the organization's success. How did the 19th century contribute to hospitality? -in the 19th century, Cesar Ritz and Auguste Escoffier revolutionized hotel restaurants. How did the 20th century contribute to hospitality? -In 1921 in Kansas, Walter Anderson and Billy Ingram began the White Castle hamburger chain. These eye-catching restaurants were nothing more than stucco building shells, a griddle, and a few chairs. -The Four Seasons restaurant in New York opened in 1959 as the first elegant American restaurant that was not French in style. -There was a rapid development of hotels, motels, fast food, and coffee shops. The 1950s and 1960s also saw an incredible growth in air transportation. Cross-continental flights were not only more frequent but took much less time. -Hotels and restaurant chains sprang up to cater to the needs of the business and leisure traveler as well as city residents. -In the 1980s, hospitality, travel, and tourism continued to increase dramatically. The baby boomers began to exert influence through their buying power. -Distant exotic destinations and resorts became even more accessible. How did the 21st century contribute to hospitality? -The hospitality industry continues maturing, and with that comes increased market segmentation and consolidation. -There is an increasing focus on security, health, sustainability and lifestyles. More people are traveling to locations such as China, Brazil, and India. Technology will improve the facilitation of guests' needs. How can people in the hospitality industry convey a service spirit? -People with a service spirit are happy to do something extra to make a guest's experience memorable. -The hospitality spirit means that it is our passion to give pleasure to others and to make our guests feel great. How does hospitality and tourism have an interrelated nature? -All scopes under the umbrella of the industry have an effect on one another. -The possibilities are many and varied, ranging from positions in restaurants, resorts, air and cruise lines, theme parks, attractions, and casinos, to name a few of the several sectors of the hospitality and tourism industries. What are the characteristics of the hospitality industry? -they are open 365 days a year, 24/7 -depends heavily on shift work ~morning shift: 7:00 A.M. ~midshift: 10:00 A.M. to 7:00 P.M. ~the evening shift: 3:00 P.M. to 11:00 P.M. ~night shift: 11:00 P.M. to 7:30 A.M. -services are mostly intangible meaning you get the service on the spot can't "test drive" a room -inseparability of production and consumption: clean room is ready for you when you get there (product), when you get there you use it right away (consumption) -perishability: a room or meal not sold cannot be saved and sold the next day -variability: on the production side of the equation, each employee has different levels of skill, knowledge, ability, and passion for what they do and therefore we often see variability in the quality of work. On the consumer side of the equation, each guest has different levels of experience, understanding, and expectations in what they are seeking to buy and therefore we often see variability in the ability and way that guests consume the hospitality product. What is required to ensure success in service? -ensure guest loyalty -it is critical to offer guests exceptional service What is the current hospitality industry philosophy? -managers counsel associates, giving them resources and helping them to think for themselves. -The outcome is a more participative management style, which results in associate empowerment, increased productivity, and guest and employee satisfaction. Which directors are part of the Executive Committee? consists of the key executives who head the major departments: rooms division director, food and beverage (F&B) director, marketing and sales director, human resources director, chief accountant or controller, and chief engineer or facility manager. Why does the management structure differ among larger, midscale, and smaller properties? -The midscale and smaller properties are less complex in their management structures than are the larger ones. -For example, a small property may not have a director of human resources, but each department head will have general day-to-day operating responsibilities for the human resources function. What are the responsibilities of the General Manager? -They must provide owners with a reasonable return on investment, keep guests satisfied and returning, and keep employees happy. -Ultimately responsible for the performance of the hotel and the employees. -The GM is the leader of the hotel. -As such, she or he is held accountable for the hotel's level of profitability by the corporation or owners. -The GM not only focuses on leading and operating the hotel departments but also on aspects of the infrastructure, from room atmosphere to security. What is the purpose of the rooms division? the rooms division has several departments that all work together to please guests. What is the role of the room's division director? -held responsible by the GM for the efficient and effective leadership and operation of all the rooms division departments. • Financial responsibility for rooms division • Employee satisfaction goals • Guest satisfaction goals • Guest services • Guest relations • Security • Gift shop Of what departments consist the rooms division? -housekeeping -security -front office -guest services -concierge -reservations -communications What is the front-office manager's (FOM) main duty? to enhance guest services by constantly developing services to meet guest needs. How do front office managers enhance guest services? have a guest service associate (GSA) greet guests as they arrive at the hotel, escort them to the front desk, and then personally allocate the room and take the guest and luggage to the room. The Guest Service Associates are responsible for which aspects? responsible for the front desk, concierge, communications/PBX (the term PBX is still widely used; it stands for Private Brand Exchange), bellpersons, valet, and reservations. What are the duties that the front-office manager and his or her associates perform? • Check night clerk report. • Review previous night's occupancy. • Review previous night's average rate. • Look over market mix and determine what rooms to sell at what price. • Handle check-outs and check-ins. • Check complimentary rooms. • Verify group rooms to be picked up for the next 30 days. • Review arrivals and departures for the day. • Politely and efficiently attend to guest inquiries. • Review the VIP list and prepare preregistration. • Organize any room changes guests may request and follow up. • Arrange preregistrations for all arrivals. • Attend rooms divisions and operations meeting. • Advise housekeeping and room service of flowers/fruit for VIPs. • Review arrivals and departures for the next day. • Make staffing adjustments needed for arrivals and departures. • Note any important things in the log book. • Check issuing and control of keys. • Review scheduling (done weekly). • Meet with lead GSAs (done daily). Why in some hotels would the reservations manager and associates report to the director of sales? they handle the sales of the rooms in the hotel Which positions report to the chief accountant? night auditor night audit associates cashiers What are the three main functions of the front office? to sell rooms to maintain balance of guest accounts to offer services such as handling mail, messages, and local and hotel information The front desk maintains balanced guest accounts, what does this entail? begins with advance deposits, opening the guest folio (account), and posting all charges from the various departments. What is a city ledger? a special account for a company that has established credit with the hotel The front desk is staffed throughout the 24 hours by three shifts, the evening shift duties include which functions? -Check the log book for special items. -Check on the room status, number of expected checkouts still to leave, and arrivals by double-checking registration cards and the computer so that they can update the forecast of the night's occupancy. -Handle guest check-ins. This means notifying the appropriate staff of any special requests guests may have made -Take reservations for that evening and future reservations after the reservations staff have left for the day. The property management system (PMS) helps to bill guests how? -helps the hospitality associates bill their guests within seconds. Some hotels utilize software that enables guests to check and approve their bills by using the TV and remote control, thus avoiding the need to line up at the cashier's desk to check-out. What is a night auditor? they balance the guest's accounts receivable What are the duties and responsibilities of the Executive Housekeeper? Her or his duties and responsibilities call for exceptional leadership, organization, motivation, and commitment to maintaining high standards. The four major areas of responsibilities for the executive housekeeper are as follows: 1. Leadership of people, equipment, and supplies 2. Cleanliness and servicing the guest rooms and public areas 3. Operation of the department according to financial guidelines prescribed by the general manager 4. Record keeping Why is housekeeping an important department of a hotel? It is important to have a clean hotel to keep guest satisfaction high and keep them coming back What is the purpose of revenue management? -used to maximize room revenue at the hotel. -It is based on the economics of supply and demand, which means that prices rise when demand is strong and drop when demand is weak. What are some disadvantages of revenue management? if a business person attempts to make a reservation at a hotel three days before arrival and the rate quoted to maximize revenue is considered too high, this person may decide to select another hotel and not even consider the first hotel when making future reservations. What are examples of positions available in the food and beverage division? executive chef chief steward bar persons beverage manager catering manager cooks captain servers To whom does the director of food and beverage report? And for what is the director of food and beverage responsible? they report to the general manager they are responsible for the efficient and effective operation of the following departments • Kitchen/catering/banquet • Restaurants/room service/minibars • Lounges/bars/stewarding What are examples of the skills needed by a food and beverage director? • Exceed guests' expectations in food and beverage offerings and service • Display leadership • Identify trends • Find and keep outstanding employees • Train new employees • Motivate employees • Budget • Control costs • Find profit from all outlets • Have a detailed working knowledge of the front-of-thehouse and back-of-the-house operations Why is it extremely important for food and beverage directors to manage and control food, beverage, and labor costs? To remain profitable, food, beverage, and labor costs should be within the parameters set by the hotel management, which is usually around 25%-30%. Why is room service or in-room dining a challenge? guests either don't use it or find it too costly, the department will take a loss for sure. At what time does the day start and end for the food and beverage director? And they usually work for how many days? starts at 8:30 a.m. and ends at 8:00 p.m they usually work monday through saturday and take sundays off unless there is an event on sunday then they will take monday off. The F & B director sees salespersons regularly, why? because they are good sources of information about what is going on in the industry and they can introduce leads for business. The F & B director attends several meetings, what are examples? they attend staff meetings, food and beverage meetings, executive committee meetings, interdepartmental meetings, credit meetings, and P&L statement meetings. A hotel kitchen is under the charge of which position? And what is this person responsible for? the executive chef they are responsible for the efficient and effective operation of kitchen food production. What tasks would the new breed of executive chef delegate to the sous chef? delegates ordering, hiring, and firing decisions; sous chefs are the ones most in control of the production and the people who work on their teams. Controlling costs is an essential part of food and beverage operations, why is that? because labor costs represent the most significant variable costs, staffing becomes an important factor in the day-to-day running of the food and beverage locations. What are examples of the functions the executive chef performs on a typical day? 1. Arrive between 6:00 and 7:00 A.M. and walk through the food and beverage department with the night cleaners. 2. Check to make sure the compactor is working and the area is clean. 3. Check that all employees are on duty. 4. Ask people what kind of challenges they will face today. 5. Sample as many dishes as possible, checking for taste, consistency, feel, smell, and overall quality. 6. Check walk-ins. 7. Recheck once or twice a day to see where the department stands production-wise—this helps reduce or eliminate overtime. 8. Approve schedules for food and beverage outlet. 9. Keep a daily update of food and beverage revenues and costs. 10. Forecast the next day's, week's, and month's business based on updated information. 11. Check on final numbers for catering functions. What are examples of financial ratios performed in the kitchen? food cost percentage—the cost of food divided by the amount of food sales. labor cost percentage may vary depending on the amount of convenience foods purchased versus those made from scratch What is the role of a chef torment (relief cook)? they rotate through the various stations to relieve the station chef heads. What are examples of the stations heads that are based on the classic "Brigade"? -sauce chef -roast chef -fish chef -soup chef -guarde manager chef -banquet chef -pastry chef -vegetable chef Hotel restaurants are run by whom? restaurant managers Hotel restaurants present the manager with challenges where guests are concerned, why? Guests are unpredictable How do hotels estimate the number of expected restaurant guests for any meal? The number (house count) and type of hotel guest (e.g., the number of conference attendees who may have separate dining arrangements) This figure is known as the capture rate, which, when coupled with historic and banquet activity and hotel occupancy, will be the restaurant's basis for forecasting the number of expected guests. What are examples of the functions of the chief steward? • Ensuring the cleanliness of the back of the house (all the areas that hotel guests do not see) • Maintaining clean glassware, china, and cutlery for the food and beverage outlets • Maintaining strict inventory control and monthly stock check • Ensuring the maintenance of dishwashing machines • Maintaining inventory of chemical stock • Overseeing the sanitation of kitchen, banquet aisles, storerooms, walk-ins/freezers, and all equipment • Coordinating pest control with exterminating company • Forecasting labor and cleaning supplies The chief steward's job can be an enormous and thankless task. Why? this involves cleaning up after several hundred people three times a day. They service several events. What are examples? • State banquets, when countries' leaders honor visiting royalty and heads of state • National days • Embassy receptions and banquets • Business and association conventions and banquets • Gala charity balls • Company dinner dances • Weddings What is a banquet? refers to groups of people who eat together at one time and in one place. What is catering? includes a variety of occasions when people may eat at varying times. What are examples of events that a hotel may service? • A Fortune 500 company's annual shareholders' meeting • An international loan-signing ceremony • A fashion show • A convention • Several sales and board meetings • Private luncheons and dinner parties • A wedding or two What are examples of positions in the catering department? -Catering Steward -On-Call Servers -Catering Account Executives -Director of Sales -Banquet Chef -Banquet Cooks -Executive Chef -Director of Catering Catering Coordinator and Office Staff -Catering Service Manager -Catering/Banquet Maître d's/Captains -Catering/Banquet Bartenders/Servers -Banquet Houseman -Banquet bars Who heads the catering department? And what are examples of their responsibilities? -Director of catering -they are responsible for selling and servicing, catering, banquets, meetings, and exhibitions in a way that exceeds guests' expectations and produces reasonable profit. The director of catering (DOC) has a close working relationship with the room's division manager. Why? because the catering department often brings conventions, which require rooms, to the hotel. The DOC has a close working relationship with the executive chef. Why? The chef plans the banqueting menus, but the catering manager must ensure that they are suitable for the clientele and practical from a service point of view. In the catering department, who conducts the main sales functions and what are their job responsibilities? -The main sales function of the department is conducted by the DOC and catering sales managers (CSMs). -Their jobs are to optimize guest satisfaction and revenue by selling the most lucrative functions and exceeding guests' food and beverage and service expectations. The DOC holds meetings (daily, weekly,) with whom for upcoming events? • Director of catering • Executive chef and/or banquet chef • Beverage manager or catering bar manager • Catering managers • Catering coordinator • Director of purchasing • Chief steward • Audiovisual representative