Hotel Operations - Final Exam
questions and answers rated A+
Room Rate Elasticity - correct answer ✔✔ Definition: the change in demand (rooms sold)
resulting from a change in price (room rate)
Room rate is averaging the national rate of inflation (5.8% per year) due to competition and
higher construction costs
Leisure (high sensitivity) vs business vs non group segments
Hotel taxes - correct answer ✔✔ Hotel collects tax from customers and remits it to the
government. Taxes impact business, particularly groups
Additional revenue Charges - correct answer ✔✔ Different ones such as cancellation fees,
automatic gratuities, baggage holding fees, mini-bar restocking fees, etc.
Both ways to forecast ADRs (average daily rate) - correct answer ✔✔ ADR should equal $1 per
$1000 of construction cost
- a 200 room hotel costing $14 million
- Cost building a single room?
- (14 million /200 room) = 70000 cost per room
70000/1000 = 70$
Know how to calculate Hubbart Room rate - correct answer ✔✔ - ADR that will cover expenses
and provide a fair return to the investors
1. ADR=room revenue/rooms sold
, Debit - correct answer ✔✔ Expenses incurred by the guest - a positive effect on a balance
Credit - correct answer ✔✔ Payment made by the guest - a negative effect on a balance
Account Receivable: - correct answer ✔✔ An accurate and current statement of how much the
guest owes
Net outstanding balance - correct answer ✔✔ debit - credit
Posting - correct answer ✔✔ The process of recording a debit or credit on the folios. Should be
chronological.
Folio management - correct answer ✔✔ Prepare a folio when the guest arrives and registers.
Manual folders are filed sequentially by room # at the F.O. in cashiers well or pit or bucket.
# of folios assigned to the room(s) - correct answer ✔✔ Could have more than 1 if the guests
want to split the charge. 1 per room is most common
Voucher - correct answer ✔✔ Used before the age of electronics to record time, source,
amount, employee ID, voucher #.
- Carried by bellboys, runners, and waiters
Guest ledger vs. City ledger - correct answer ✔✔ Guest ledger (rooms ledger, transient ledger or
front office ledger)
1. Where the folios of the current guests are kept
- Maintained at the front desk
2. Charges are posted continually, as incurred by the guests
questions and answers rated A+
Room Rate Elasticity - correct answer ✔✔ Definition: the change in demand (rooms sold)
resulting from a change in price (room rate)
Room rate is averaging the national rate of inflation (5.8% per year) due to competition and
higher construction costs
Leisure (high sensitivity) vs business vs non group segments
Hotel taxes - correct answer ✔✔ Hotel collects tax from customers and remits it to the
government. Taxes impact business, particularly groups
Additional revenue Charges - correct answer ✔✔ Different ones such as cancellation fees,
automatic gratuities, baggage holding fees, mini-bar restocking fees, etc.
Both ways to forecast ADRs (average daily rate) - correct answer ✔✔ ADR should equal $1 per
$1000 of construction cost
- a 200 room hotel costing $14 million
- Cost building a single room?
- (14 million /200 room) = 70000 cost per room
70000/1000 = 70$
Know how to calculate Hubbart Room rate - correct answer ✔✔ - ADR that will cover expenses
and provide a fair return to the investors
1. ADR=room revenue/rooms sold
, Debit - correct answer ✔✔ Expenses incurred by the guest - a positive effect on a balance
Credit - correct answer ✔✔ Payment made by the guest - a negative effect on a balance
Account Receivable: - correct answer ✔✔ An accurate and current statement of how much the
guest owes
Net outstanding balance - correct answer ✔✔ debit - credit
Posting - correct answer ✔✔ The process of recording a debit or credit on the folios. Should be
chronological.
Folio management - correct answer ✔✔ Prepare a folio when the guest arrives and registers.
Manual folders are filed sequentially by room # at the F.O. in cashiers well or pit or bucket.
# of folios assigned to the room(s) - correct answer ✔✔ Could have more than 1 if the guests
want to split the charge. 1 per room is most common
Voucher - correct answer ✔✔ Used before the age of electronics to record time, source,
amount, employee ID, voucher #.
- Carried by bellboys, runners, and waiters
Guest ledger vs. City ledger - correct answer ✔✔ Guest ledger (rooms ledger, transient ledger or
front office ledger)
1. Where the folios of the current guests are kept
- Maintained at the front desk
2. Charges are posted continually, as incurred by the guests
