HTM 180 - Exam 2
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Forecasting is an ongoing process that can be updated as managers obtain new information.
true
false
True
A hotel offers discounted weekend packages to attract leisure travelers when business travel is low. This is an example of:
forecasting demand
Reducing service supply
Increasing maximum capacity
Managing demand
managing demand
Why is forecasting especially important in hospitality operations?
Hospitality services can be stored for later use.
Demand varies while capacity is relatively fixed.
Capacity automatically adjusts to demand.
Hospitality demand remains relatively constant.
Demand varies while capacity is relatively fixed.
Which situation represents excess supply?
Demand exceeds maximum capacity.
Demand is below available supply.
Demand equals optimal capacity.
Demand exceeds optimal capacity.
Demand is below available supply.
Which is an external factor that could influence a hospitality forecast?
Product offerings
Promotional mix
Economic conditions
Distribution channels
Economic conditions
A restaurant forecasts the number of guest expected tomorrow primarily so managers can:
Guarantee a specific profit level.
Eliminate uncertainty from operations.
Increase the restaurant's capacity.
Plan resources for unexpected demand.
Plan resources for unexpected demand.
Which of the following is an example of stimulating or shifting demand?
Offering off-season rates
Adding restaurant seating
Cross-training employees
Hiring seasonal workers
Offering off-season rates
Which action is the best example of a chase demand strategy?
Scheduling extra staff for a busy event.
Advertising during slow periods.
Offering a weekday discount.
Changing prices during peak periods.
Scheduling extra staff for a busy event.
A hotel forecasts 185 occupied rooms for Saturday. Which decision could the forecast directly support?
Where the hotel should be located.
What the hotel's service concept should be.
How many employees should be scheduled.
What ownership structure to use.
How many employees should be scheduled.
A chase demand strategy primarily attempts to:
adjust demand to match supply.
adjust supply to match demand.
hold demand at a constant level.
eliminate variations in demand.
adjust supply to match demand
Forecasting is best defined as:
Predicting future events.
Maximizing available service capacity.
Allocating inventory among customers.
Measuring past operational performance.
Predicting future events.
At optimal capacity, an operation is generally:
Operating below expected demand.
Maximizing volume regardless of quality.
Balancing demand and supply effectively.
Serving beyond its physical limits.
Balancing demand and supply effectively.
Which best illustrates perishability in hospitality?
an unsold room tonight cannot be sold tomorrow.
a restaurant freezes unused ingredients overnight.
A resort orders additional supplies for summer.
a hotel stores unused rooms for next weekend.
an unsold room tonight cannot be sold tomorrow.
Which situation creates the strongest need for yield management?
Inventory can be stored indefinitely.
Capacity can change instantly.
Customers all pay one price.
Demand varies for fixed capacity.
Demand varies for fixed capacity.
A level capacity strategy primarily attempts to:
eliminate fluctuations in capacity.
maximize capacity at all times.
alter supply to match changing demand.
alter demand to match fixed supply.
alter demand to match fixed supply.
A major concert is announced near a downtown hotel. Why should managers consider this in their forecast?
External events can affect expected demand.
Events automatically increase room rates.
Events eliminate historical demand patterns.
External events determine hotel capacity.
External events can affect expected demand.
A hotel expects unusually high demand for an upcoming weekend. Which response is most consistent with yield management?
Ignore the forecast and maintain normal decisions.
Use expected demand when making pricing decisions.
Move unsold rooms from another weekend.
Increase the physical number of rooms available.
Use expected demand when making pricing decisions.
Maximum capacity and optimal capacity represent the same operating condition.
True
False
false
In hospitality operations, supply can also be described as
demand.
revenue.
forecasting.
capacity.
capacity
A top-down forecast begins by estimating:
employee productivity.
individual customer behavior.
individual product sales.
aggregate performance.
aggregate performance.
Level capacity strategies are generally oriented toward managing demand, while chase demand strategies focus on adjusting supply.
True
False
True
How are forecasting and yield management connected?
Yield management determines physical hotel capacity.
Yield management eliminates forecast uncertaintly.
Forecasting estimates demand used in yield decisions.
Forecasting replaces the need for yield.
Forecasting estimates demand used in yield decisions.
A restaurant is serving as many guests as physically possible, employees are stretched, and service errors are frequent. This best represents:
Level capacity.
Excess demand.
Optimal capacity.
Excess supply.
Excess demand.
Which is an internal factor that could influence a hospitality forecast?
Promotional activity
Natural disasters
Competition
Economic conditions
Promotional activity
A restaurant cross-trains hosts to assist with takeout orders during peak periods. This primarily helps the operation:
increase long-term demand.
adjust supply to demand.
stimulate customer demand.
reduce its forecast horizon.
adjust supply to demand.
Which is an example of time-based hospitality inventory?
Hotel room-night
Cleaning chemicals
Employee uniforms
Restaurant ingredients
Hotel room-night
Compared with airport hotels, resort hotels are more likely to experience:
longer average stays.
fewer leisure travelers.
no group demand.
smaller differences in guest purpose.
longer average stays.
Which characteristic best distinguishes a full-service hotel from a select-service hotel?
Select-service hotels have no food and beverage operations.
Full-service hotels serve only business travelers.
Full-service hotels provide a broader range of facilities, services, and amenities.
Select-service hotels cannot be affiliated with major hotel companies.
Full-service hotels provide a broader range of facilities, services, and amenities.
A hotel has a limited food and beverage operation and little or no meeting space. It would most likely be classified as:
resort.
select service.
convention.
full service.
select service.
Which feature would be most characteristic of an extended-stay hotel?
Full kitchens or kitchenettes and additional living space
Primarily one-night stays
Large casino operations
Extensive convention facilities
Full kitchens or kitchenettes and additional living space
Which description best characterizes a lifestyle hotel?
Design, local character, social spaces, and distinctive experiences
Minimal amenities designed primarily around low price
Large meeting facilities designed primarily for conventions
Long-term accommodations centered on kitchens and living space
Design, local character, social spaces, and distinctive experiences
A hotel parent company may operate multiple brands because:
each hotel location requires a separate parent company.
brands determine whether hotel rooms are perishable.
different brands can serve different price points and market categories.
every brand must offer exactly the same guest experience.
different brands can serve different price points and market categories.
Twenty-five rooms reserved as part of a wedding block would most likely be classified as:
contract.
group.
select service.
transient.
group.
A company negotiates a special room rate with a hotel for employees who regularly travel to the area.
These reservations are most likely:
group leisure.
extended stay.
transient leisure.
negotiated/contract.
negotiated/contract.
Why is it useful for hotel managers to distinguish among transient, group, and negotiated/contract business?
Only transient reservations generate room revenue.
Each booking type requires a different number of physical hotel rooms.
The different booking types can create different demand and booking patterns.
Group reservations are always more profitable than transient reservations.
The different booking types can create different demand and booking patterns.
Two 200-room hotels may approach inventory management differently because they may have different:
locations, hotel types, affiliations, and customer mixes.
definitions of physical capacity.
definitions of occupancy.
numbers of rooms available to sell each night.
locations, hotel types, affiliations, and customer mixes.
Why is a forecast especially useful when a hotel has relatively fixed room capacity?
Managers can use expected demand to make decisions about limited inventory.
Forecasting allows managers to create additional rooms immediately.
Forecasting prevents demand from exceeding capacity.
Managers can store unused rooms for future dates.
Managers can use expected demand to make decisions about limited inventory.
A hotel expects very strong demand for an upcoming Saturday. Why might management avoid selling every remaining room immediately at a discounted rate?
Higher-value demand may emerge closer to the arrival date.
Discounted reservations do not count toward occupancy.
The hotel's physical capacity will decrease as reservations are accepted.
Hotels cannot accept reservations once a forecast has been created.
Higher-value demand may emerge closer to the arrival date.
Which statement best connects forecasting demand to inventory management?
Forecasting determines physical capacity; inventory management determines customer demand.
Forecasting and inventory management both focus primarily on increasing the number of hotel
rooms.Inventory management begins only after all available capacity has been sold.
Forecasting estimates what customers may want; inventory management determines how available capacity should be used.
Forecasting estimates what customers may want; inventory management determines how available capacity should be used.
A restaurant is completely full but heavily discounted. Why might occupancy alone be a poor measure of performance?
It measures only the restaurant's labor expense.
It includes customers without reservations.
It ignores how much revenue the capacity generates.
It excludes the restaurant's physical capacity.
It ignores how much revenue the capacity generates.
Revenue management primarily attempts to optimize:
production and physical layout.
purchasing and supplier selection.
capacity, pricing, and demand.
employee scheduling and training.
capacity, pricing, and demand.
When expected demand exceeds capacity, managers must determine:
how to increase physical inventory immediately.
how to store unused service inventory.
how to allocate limited capacity.
how to eliminate customer segments.
how to allocate limited capacity.
Which is an example of ancillary revenue for a hotel?
Restaurant purchase
Guest room charge
Occupancy percentage
Room availability
Restaurant purchase
Overbooking involves:
requiring guests to extend their reservations.
reserving capacity beyond physical availability.
increasing physical capacity during peak periods.
closing all reservations before reaching capacity.
reserving capacity beyond physical availability.
Why might a hospitality operation intentionally overbook?
To reduce the operation's maximum capacity
To account for expected cancellations and no-shows
To eliminate the need for demand forecasting
To guarantee every customer receives service
To account for expected cancellations and no-shows
What is the primary risk associated with overbooking? | |
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Which is an example of a rate fence? | |
• A nonrefundable discounted room rate | |
• A forecast of Saturday occupancy | |
• A hotel's total number of rooms | |
• A restaurant's maximum seating capacity |
• A nonrefundable discounted room rate
Dynamic pricing means: | |
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prices may vary with market and demand conditions.
Displacement occurs when:
accepting one piece of business prevents another.
a customer books through a different channel.
an operation increases its physical capacity.
unused capacity is stored for another period.
accepting one piece of business prevents another.
Why do distribution channels matter to revenue management?
Distribution eliminates the need for forecasting.
Channels can have different costs and commissions.
Channels determine the hotel's physical capacity.
All channels produce identical net revenue.
Channels can have different costs and commissions.
Which situation best illustrates supply chain management at a resort?
Measuring guest satisfaction after checkout
Scheduling guest activities for the coming weekend
Coordinating purchasing, delivery, storage, and use of guest supplies
Setting room rates based on competitor prices
Coordinating purchasing, delivery, storage, and use of guest supplies
A resort relies on one vendor for a critical cleaning chemical. What is the most immediate supply risk?
The chemical may require additional storage space
Guests may request additional housekeeping
The vendor may offer a volume discount
A disruption could interrupt housekeeping operations
A disruption could interrupt housekeeping operations
Which action would most directly improve a hotel's resilience to supplier disruptions?
Maintaining an approved alternative for critical products
Eliminating all inventory of frequently used items
Selecting suppliers solely by the lowest bid
Using one supplier for every category of purchase
Maintaining an approved alternative for critical products
A disruption in deliveries can affect a hotel's ability to deliver its promised guest experience.
True
False
true
Which activity is most specifically an example of sourcing?
Researching and comparing potential towel suppliers
Paying an approved supplier invoice
Recording towels issued to housekeeping
Receiving a scheduled shipment of towels
Researching and comparing potential towel suppliers
A purchasing manager compares vendors before placing any orders. This is primarily an example of which activity?
Consumption tracking
Receiving
Sourcing
Stock rotation
Sourcing
Why are clear purchasing specifications useful when comparing supplier bids?
They guarantee the lowest price in every contract
They prevent changes in guest demand
They remove the need to evaluate product quality
They allow suppliers to quote against comparable requirements
They allow suppliers to quote against comparable requirements
Two suppliers offer identical products. One has a lower unit price but charges more for shipping and has frequent late deliveries. What should the buyer compare?
Unit price without delivery terms
Supplier advertising expenditures
Total cost and supplier performance
The number of products in each catalog
Total cost and supplier performance
A hotel must choose between vendors for daily bakery deliveries. Which evidence best measures reliability?
The design of the supplier's website
The age of the supplier's delivery trucks
Documented on-time and complete delivery performance
The number of social media followers
Documented on-time and complete delivery performance
Which factor is especially important when selecting a supplier of fresh seafood for a restaurant?
The supplier's employee uniform color
The supplier's office furniture
Food safety controls and consistent product quality
The number of unrelated product lines offered
Food safety controls and consistent product quality
A supplier meets price targets but repeatedly delivers damaged goods. Which evaluation criterion is most directly affected?
Guest segmentation
Brand awareness
Quality performance
Marketing reach
Quality performance
Which purchase is most clearly classified as furniture, fixtures, and equipment (FF&E)?
Laundry detergent for daily use
Guestroom desk and upholstered chair
Single-use guest shampoo bottles
Paper napkins for a banquet
Guestroom desk and upholstered chair
Which item is most clearly operating supplies and equipment (OS&E) in a hotel?
A guestroom bed frame
A lobby reception counter
Guestroom drinking glasses
A built-in elevator
Guestroom drinking glasses
Which arrangement best illustrates managed services in hospitality?
A hotel orders detergent from a wholesaler
A contracted company operates the hotel's laundry function
A resort asks three suppliers for linen quotes
A restaurant purchases a replacement dishwasher
A contracted company operates the hotel's laundry function
A hotel contracts out its laundry operations. Which responsibility should hotel management retain?
Eliminating all communication with the contractor
Treating guest complaints as unrelated to the hotel
Assuming the contractor needs no performance review
Monitoring service quality against agreed standards
Monitoring service quality against agreed standards
What is a potential tradeoff of outsourcing a hospitality operation?
Elimination of the need for service standards
Access to specialist expertise with less direct operational control
Removal of responsibility for guest satisfaction
Guaranteed lower costs with no contract oversight
Access to specialist expertise with less direct operational control
Why does a hotel maintain an inventory of frequently used guest supplies?
To increase storage space requirements
To prevent suppliers from offering discounts
To eliminate the need for demand forecasts
To support service while controlling the cost of stock
To support service while controlling the cost of stock
Which is an example of an inventory holding cost?
Storage space used by cases of bottled water
Staff time spent comparing supplier bids
A fee for placing a purchase order
Freight charged on a new shipment
Storage space used by cases of bottled water
A breakfast buffet runs out of coffee cups during peak service. Which inventory problem has occurred?
Stockout
Overstock
Overproduction
Supplier consolidation
Stockout
What is the main purpose of a reorder point?
To measure the profitability of a guestroom
To signal when replenishment should be initiated
To determine the number of approved vendors
To establish the selling price of an item
To signal when replenishment should be initiated
A supplier increases delivery lead time from two days to six days. What is the most likely inventory implication?
The hotel can safely reduce all safety stock
The hotel may need to reorder earlier
The hotel no longer needs demand forecasts
The hotel should stop tracking usage
The hotel may need to reorder earlier
A resort holds extra bottled water because deliveries are sometimes delayed. This additional inventory is primarily:
A purchase order
Safety stock
Obsolete stock
A supplier rebate
Safety stock
What decision is economic order quantity (EOQ) intended to inform?
Which employees should work a shift
Which guest segment should receive a discount
How many rooms to sell through a channel
How much inventory to order at a time
How much inventory to order at a time
Expected guest demand can help a hotel determine how much operating inventory to keep on hand.
True
False
True
Accurate inventory records make physical inventory counts unnecessary.
True
False
False