DECA Hospitality & Tourism Vocab Study Guide
🧠 Core Business Concepts (VERY high frequency)
Sole Proprietorship – Business owned by one individual
General Partnership – Business owned by two or more people who share profits and liabilities
Limited Partnership – Partnership with at least one general partner and one limited partner
Corporation – Legal entity separate from its owners
Franchise – Agreement allowing use of a company’s name and system
Liability – Legal responsibility for debts
Contract – Legally enforceable agreement
📊 Economics & Finance (Heavily tested)
Revenue – Income from sales
Expenses – Costs incurred in operating a business
Profit – Revenue minus expenses
Fixed Costs – Expenses that remain constant
Variable Costs – Expenses that vary with sales volume
Break-Even Point – Sales level where total revenue equals total costs
Cash Flow – Movement of money in and out of a business
Return on Investment (ROI) – Profit relative to investment cost
📣 Marketing & Product Vocabulary (VERY common)
Product – Good or service offered to satisfy a need
Product Utility – Ability of a product to satisfy consumer wants
Form Utility – Value created by changing the form of a product
Time Utility – Value created by making a product available when needed
Place Utility – Value created by making a product available where needed
Possession Utility – Value created by enabling ownership
Target Market – Specific group of consumers
Market Segmentation – Dividing a market into groups with similar traits
Brand – Name, symbol, or design identifying a product
Brand Loyalty – Consistent purchasing of a specific brand
🏨 Hospitality & Tourism–Specific Terms (Exam favorites)
Occupancy Rate – Percentage of rooms sold
Average Daily Rate (ADR) – Average room revenue per room sold
Revenue per Available Room (RevPAR) – ADR multiplied by occupancy rate
Yield Management – Adjusting prices based on demand
Seasonality – Fluctuation in demand by time of year
Capacity – Maximum number of guests that can be served
Overbooking – Accepting more reservations than capacity
Service Quality – Degree to which service meets expectations
👥 Management & Human Resources
Management – Planning, organizing, leading, and controlling
Span of Control – Number of employees supervised by a manager
Delegation – Assigning responsibility to others
Training – Teaching employees job skills
Motivation – Factors that stimulate employees to perform
Turnover – Rate at which employees leave a company
📈 Strategic & Analytical Concepts (Shows up often)
SWOT Analysis – Evaluation of strengths, weaknesses, opportunities, and threats
Competitive Advantage – Feature that gives a business an edge
Risk – Chance of loss or failure
Feasibility – Likelihood a plan will succeed
Benchmarking – Comparing performance to industry standards