Hotel operations exam 1 questions n
answers rated A+
percentage of occupancy - correct answer ✔✔ Number of rooms sold / number of available
rooms for sale
Sales Per Occupied Room (ADR) - correct answer ✔✔ Room sales / number of rooms sold
Sales per available room (RevPar) - correct answer ✔✔ Room sales / number of rooms available
for sale
Gross sales per available room - correct answer ✔✔ Dollars received from all sales / rooms
available
Math Check - correct answer ✔✔ ADR x Occupancy % = REVPAR
Employees per guest room - correct answer ✔✔ Employees on staff / rooms available
Percentage of double occupancy - correct answer ✔✔ [number of guest - rooms sold] / number
of rooms sold
Perishability - correct answer ✔✔ At midnight, value of unsold inventory is $0
High operating costs - correct answer ✔✔ -Capital intensive, Labor Intensive, High Fixed Costs-
Low Variable costs.
, break-even point - correct answer ✔✔ the point at which the costs of producing a product
equal the revenue made from selling the product
Seasonality - correct answer ✔✔ Within year, within month, within week
Extended Season - correct answer ✔✔ Have new activities and sales promotions before and
after "traditional" season to extend it
Seek new markets - correct answer ✔✔ Disney gets families in summer and winter holidays and
targets conventions, "empty-nesters" year round
Location - correct answer ✔✔ Open properties in areas with counter-season
mixed-use development - correct answer ✔✔ Build hotel in area with multiple sources of guest
(business and tourist)
Mega hotel - correct answer ✔✔ 1500 rooms or more
large hotel - correct answer ✔✔ 300 rooms or more
Medium hotel - correct answer ✔✔ 150-300 rooms
Small hotel - correct answer ✔✔ 100 rooms or less
Mom and pop hotels - correct answer ✔✔ Small independent roadside motels, family owned
and operated
answers rated A+
percentage of occupancy - correct answer ✔✔ Number of rooms sold / number of available
rooms for sale
Sales Per Occupied Room (ADR) - correct answer ✔✔ Room sales / number of rooms sold
Sales per available room (RevPar) - correct answer ✔✔ Room sales / number of rooms available
for sale
Gross sales per available room - correct answer ✔✔ Dollars received from all sales / rooms
available
Math Check - correct answer ✔✔ ADR x Occupancy % = REVPAR
Employees per guest room - correct answer ✔✔ Employees on staff / rooms available
Percentage of double occupancy - correct answer ✔✔ [number of guest - rooms sold] / number
of rooms sold
Perishability - correct answer ✔✔ At midnight, value of unsold inventory is $0
High operating costs - correct answer ✔✔ -Capital intensive, Labor Intensive, High Fixed Costs-
Low Variable costs.
, break-even point - correct answer ✔✔ the point at which the costs of producing a product
equal the revenue made from selling the product
Seasonality - correct answer ✔✔ Within year, within month, within week
Extended Season - correct answer ✔✔ Have new activities and sales promotions before and
after "traditional" season to extend it
Seek new markets - correct answer ✔✔ Disney gets families in summer and winter holidays and
targets conventions, "empty-nesters" year round
Location - correct answer ✔✔ Open properties in areas with counter-season
mixed-use development - correct answer ✔✔ Build hotel in area with multiple sources of guest
(business and tourist)
Mega hotel - correct answer ✔✔ 1500 rooms or more
large hotel - correct answer ✔✔ 300 rooms or more
Medium hotel - correct answer ✔✔ 150-300 rooms
Small hotel - correct answer ✔✔ 100 rooms or less
Mom and pop hotels - correct answer ✔✔ Small independent roadside motels, family owned
and operated
