Hospitality & Tourism Performance Indicator Flashcards

What is the nature of economic utility?

The value a product or service provides by satisfying customer needs, including form (the value of the physical product), time (the value of a product that is available when customers want it), place (available where customers want it), and possession utility (value of owning and using the product).

What does elasticity measure in economics?

Elasticity measures how demand changes when price changes, indicating how responsive demand is to price shifts.

What are the principles of supply and demand?

Supply is the amount available while demand is consumer desire; higher demand can raise prices, and increased supply can lower them.

What distinguishes goods from services?

Goods are tangible products, while services are intangible experiences or actions performed for customers.

What factors affect business risk?

Business risks include economic conditions, competition, regulations, and natural disasters, which influence operations and profitability.

What are economic resources?

Economic resources include land, labor, capital, and entrepreneurship, used to produce goods and services.

What are the types of business ownership?

Types include sole proprietorship, partnership, corporation, and franchise.

What is a SWOT analysis?

A SWOT analysis evaluates a business's strengths, weaknesses, opportunities, and threats for strategic decision-making.

What is the role of risk management?

Risk management identifies and minimizes potential risks to protect business assets, employees, and customers.

What is the purpose of standard operating procedures (SOPs)?

SOPs provide step-by-step instructions for consistency, efficiency, and compliance in business operations.

Why is customer service important?

Good customer service builds loyalty, enhances reputation, and increases customer satisfaction for repeat business.

What role do ethics play in business?

Ethics guide businesses to make fair and responsible decisions benefiting customers, employees, and society.

What is the concept of productivity?

Productivity measures the efficiency of resource use in producing goods and services.

What does the marketing mix consist of?

The marketing mix includes Product, Price, Place, and Promotion.

What is target marketing?

Target marketing focuses on a specific group of customers to maximize sales based on demographics and needs.

Why is brand positioning important?

Brand positioning influences how customers perceive a brand relative to competitors, affecting purchasing decisions.

What is the difference between upselling and cross-selling?

Upselling encourages purchasing a higher-end product, while cross-selling suggests complementary products.

What factors affect pricing?

Pricing is influenced by demand, costs, competition, brand positioning, and market conditions.

What are promotional strategies in hospitality?

Common strategies include advertising, social media marketing, loyalty programs, and special promotions.

Why is effective communication important in hospitality?

Clear communication ensures guest satisfaction and enhances the overall experience.

What is active listening?

Active listening involves fully focusing, understanding, and responding to a speaker.

What are conflict resolution strategies?

Conflict resolution involves calmly addressing customer complaints and finding mutually satisfying solutions.

Why is cultural awareness important in hospitality?

Cultural awareness helps provide respectful, inclusive, and personalized service to diverse guests.

What is the significance of the Americans with Disabilities Act (ADA)?

The ADA requires businesses to provide accommodations for people with disabilities.

Why are workplace safety regulations important?

Safety regulations protect employees and customers from hazards, improving working conditions.

What does liability refer to in a business context?

Liability is the legal responsibility a business has for customer and employee safety.

Why are health and safety standards important?

These standards prevent injuries and protect guests and employees from health risks.

What is the importance of data security?

Data security protects customer and business information from cyber threats and unauthorized access.

What is revenue?

Revenue is the total income a business earns from selling goods or services before expenses.

What is profit?

Profit is the amount left after expenses are subtracted from revenue.

What is the purpose of budgeting?

Budgeting helps manage income and expenses to ensure financial stability and profitability.

Why are financial records important?

Accurate financial records help track income, expenses, and ensure compliance with regulations.

What are key financial metrics in hospitality?

Common metrics include average daily rate (ADR), revenue per available room (RevPAR), and occupancy rate.