Hospitality *TEST PREP*

inseparability

refers to the fact that production and consumption occur simultaneously

perishability

an unsold airline seats / hotel room / empty restaurant table

internal customers/guests

the employees that benefit from the work of other employees (i.e. server has been benefited by the chef who made the food and the dishwasher)

basic functions of front office

reviewing previous night's ADR and Occupancy Rate

reviewing arrivals and departures

reviewing scheduling and staffing

NOT maintain sales record

types of seating

theater - lectures

classroom - board meetings

horseshoe - training + workshops

marketing

Planning, pricing, promoting, selling, and distributing products to satisfy customers' needs/wants.

retention rate

Very general for many types of fields, indicates positive outcomes

frequency rate

Quantitative measurement of how many times a customer is exposed to advertisement

conversation rate

Percentage of users who take a desired action. ex: percentage of website visitors who buy something on the site.

product

thing produced by labor or effort.

product mix

All the different types of products a business makes/sells

product line

a set of a related products a business makes/sells

market/corporate cannibalization

negative impact of a company's new product on the sales of ITS OWN EXISTING RELATED PRODUCTS.

service

Intangible items or actions of monetary value that satisfy needs or wants

Introduction, Growth, Maturity, Decline

stages in the product cycle

scope

# of tasks and frequency of occurrence

depth

amount of control employee has and decision making an employee must make

product, price, place, promotion

4 P's of marketing

time, form, place, possession, information

5 utilities

time untilty

When is a product/service available?

place utility

Where is a product/service available?

form utility

How is a product/service useful?

possession utility

How easy is it to purchase the product/service?

information utility

What information is available on the product/service?

market planning

How to determine and target a specific audience

Market research (information management)

Actual collection and analysis of market data to make business decisions

product/service management

Developing, maintaining or improving a product or a service over its lifetime

promotion

Informing consumers about a product/service/general information

distribution (channel management)

Getting products and services from one place to anothe

personal selling

Selling/promoting a product to actual conversation/contact

direct marketing

Promoting a product/service through mail or email

advertising

Promoting a product/service through mass media. One-way messages

sales promotion

Promotional activities designed to increase sales, (ex. discounts, coupons, etc.)

public relations

Activities relating to a company's public persona

positioning

How a company is ranked in the minds of a consumer relative to competitors

differentiation

How a company stands out from competition to make an impression

federal reserve system

Regulates money supply, credit availability, interest rates (cost of borrowing money)

federal trade commission

Prevents non competitive behavior and protects consumers

securities and exchanges commission

Regulates the buying and selling of stocks/bonds

National labor relations board

Agency regulating collective bargaining and unions

federal communications commission

Regulate interstate/international communications channels

Equal Employment Opportunities commission

Prevents workplace discrimination

Occupational Safety and Health Administratio

Governs health and safety in the workplace

Consumer product safety commission

Ensures the safety of various consumer products

Food and Drug Administration

Ensures the safety of any drug before it may be sold to the public

Environmental Protection Agency

Prevents environmental hazards and abuse

Federal Deposit Insurance Corporation

provides deposit insurance, which guarantees the safety of deposits in member banks, currently up to $250,000 per depositor per bank

frugging

fund-raising under the guise of research

phishing

posing as real business to scam people (pretending to be a credit card company and stealing numbers & identities, etc)

skimming

taking money "off the top", for example, when a customer buys an apple for the store for $1, the cashier pockets the $1 and doesn't register the apple as bought, so essentially stealing from the business

Sarbanes-Oxley Act

set new or enhanced standards for all U.S. public company boards, management and public accounting firms

Sherman Antitrust Act

Prevent monopolies/price fixing

Robinson-Patman Act

Law that prohibits anti-competitive practices by producers, specifically price discrimination

Gramm-Leach-Bliley Act

Privacy of customers' financial information. The Act also requires financial institutions to develop and maintain techniques and methods for protecting the information. The intent is to prevent private financial information from becoming public . Also repealed most of Glass Steagall.

Better Business Bureau

Non-profit organization that "regulates" businesses to foster good practices

Sole Proprietorship

One owner who is completely liable for debts and other liabilities incurred

partner

Multiple owners who are completely liable for debts and other liabilities incurred. Earnings distributed and taxed on an individual level,

General Partnership

All partners liable for everything

limited partnership

Some partners are limited partners who are liable up to their invested amount. There has to be at least one general partner (who has unlimited liability)

limited liability partnership

Provides protection for partners against torts committed by others

Corporation

A legal entity that is treated as an artificial person by law (they can be taxed, commit crimes, etc.). Shareholders/owners are not held liable for the actions/debts of the corporation

C Corporation

Double taxation due to taxes on corporate and then personal income

S corporation

Taxed only on personal income. Only applies to businesses in the United States with fewer than 75 shareholders and only one class of stock. Otherwise equal to C-corporation.

limited liability corporation

Members have limited liability and taxation is equivalent to limited partnership. No limits on number of shareholders or nationality. Preferred form for virtually all businesses

business, vacationers, resorters

types of hotel customers

business, inns, mid-range, luxury, resorts

types of hotels

business hotels

targeting business customers (Marriott, Hilton, Hyatt, Embassy Suites)

The hotel should be convenient. Offer things like workstations, printers, Wifi, and keep all the noise to a minimum. Provide services like laundry and ironing, and be close by to coffee shops and conference areas. The better connected it is are to the business sector of the city, the more it can offer to its guests.

Inns

low cost, low maintenance, for when you need a bed and a roof over your head (Holiday inn)

Inns lack large customer loyalty programs, or even very good customer service. Sell to lower income people.

Mid-range hotels

all purpose, well known brands, with a fair weather customer base (Best Western)

To win customers, it must provide a superior atmosphere while providing basic luxuries to its guests. Loyalty programs that involve better rooms or free services work well for those who are frequent travelers.

luxury hotels

The Ritz, Ritz Carltons, and Four Seasons. Heaven on earth.

The hotel is a brand, it is something to be shown off, and its primary use is to make people feel rich and feel extravagant for being there. Always have a focus on excellent customer service.

resorts

hotel with its own entertainment option, that is primarily self-contained (Disneyland Resort)

Typical resorts have something like a theme park or a casino, and so there will be a lot of people coming in and out of, so maintain it, and keep it running efficiently.

revPAR

revenue per available room.

average daily rate

Room revenue/rooms sold

cost of goods sold

the costs of the materials used to produce the services

profit

The money earned from conducting business after all costs and expenses have been paid

revenue

Income received by a company primarily coming from the sale of goods and services

gross profit

The difference between sales revenue and the cost of goods sold

gross sales

The total of all sales for a given period of time

net income

The amount left after the total expenses are subtracted from gross profit

net sales

The amount left after gross sales have been adjusted for returns and allowances

asset

Anything of monetary value that a person owns or is owed (cash, checking/savings accounts, real estate, etc.)

worth

The difference between the assets of a business and its liabilities

Cash Flow Statement

Shows how company spends cash and where it goes

balance sheet

assets, liabilities and ownership equity are listed as of a specific date, such as the end of its financial year...a "snapshot of a company's financial condition"

disposable income

The money left over after taxes are taken out of a consumer's income

discretionary income

Money left over from a consumer's income after paying for basic living necessities

Gross Domestic Product

Total Goods and services produced by labor and property located within a nation

Gross National Product

The total dollar value of goods and services produced by a nation

factors of production

Term for the four categories of resources: land, labor, capital, and entrepreneurship

growth (expansion), peak, recession (contraction), trough, recovery

5 stages of the business cycle

risk management

The systematic process of managing an organization's risks to achieve objectives in a manner consistent with public interest, human safety, environmental needs, and the law

human risk

Risks that are triggered by errors or omissions as well as the unpredictability of customers or of working

natural risks

Risks that result from natural occurrences, such as an earthquake or bad weather

economic risks

Risks that result from changes in overall business conditions

pure risk

no-win (no profit), like natural disasters

speculative risk

possibility of winning, losing, like stocks

ways of managing risk

Acceptance (assuming risk), Avoidance (completely neglecting activities to cause risk), Mitigation (Doing everything in your power to lower risk), Transference (Placing the burden or risk onto others, i.e. insurance)

traditional economy

Traditions and rituals that answer the economic question

market economy

System in which individuals decide economic question through voluntary interaction

command economy

An economic system in which the government decides economic question