1. Interestingly, out-of-inventory rooms do not affect rooms available for sale (the denominator in an occupancy equation) while out-of-order rooms do affect inventory. T F

2. Early arrivals, like cancellations and no-shows, reduce the number of expected arrivals. T F

3. Guaranteed reservations made against a national credit card are less secure than many people realize. In many instances, guests who refuse to pay no-show charges are upheld by their credit card company. This leaves the hotel without compensation for the unoccupied room night. T F

4. A hotel reservation is essentially a legal contract. Therefore, hotels or guests could probably sue for breech of contract but few ever do--its too much work for very little return. T F

5. Interestingly, advance-deposit reservations have the greatest likelihood of no-show. Nonguaranteed reservations (6pm) generally have the highest rates of arrival. T F

Multiple Choice Questions. Circle the one answer that best completes the thought:

6. Room availability forecasts often allow for adjustments based upon historical data. In regard to these adjustments, which of the following is true:

a.No-shows are guests with reservations (either guaranteed or non-guaranteed) who never arrive

b.Understays are guests who stay at least one night beyond their scheduled departure date

c.Cancellations are treated in much the same way as stayovers

d.Early arrivals are guests who check out at least one day prior to their scheduled departure

e.Answers a, c, and d are true. But b is false because that is the definition for overstays

7. A guest remaining in the hotel at least one day past his originally scheduled departure is known as a(n):

a.understay

b.overstay

c.latent check-out

d.late departure

e.none of the above

8. Assume that a 200-room hotel sold 50% of its rooms last night. Today, we anticipate that 75 rooms will depart. We hold 60 6pm reservations and 90 guaranteed reservations. There are no advance deposits. What is the forecasted number of rooms available for sale:

a.85

b.55

c.25

d.0

e.75

9. Assume that a given property has 300 rooms. After accounting for the day's departures and arrivals, 100 rooms remain unsold. Of these 100 rooms available, 50 rooms cannot be sold because they are out-of-inventory. In this case, the forecasted occupancy percentage would be:

a.20%

b.40%

c.60%

d.80%

e.none of the above are the correct occupancy percentage.

10. Assume that your 300-room hotel sold 66.6% of its rooms last night. Today, we anticipate that 50 rooms will depart. We hold 180 reservations (combined total of 80 6pm and 100 guaranteed). There are currently no rooms out of order. Historical figures lead us to the following percentages for adjusting; understays 10%; overstays 2%; early arrivals 0%; cancellations 5%; and no shows 8.33%. What is the forecasted number of rooms available for sale?

a.2

b.52

c.0

d.-2

e.None of the above

11. Simple room counts are adjusted several times a day. Of the following times which one/ones would be used?

a.Before arrivals begin say 6am

b.Just after the check-out hour

c.Immediately before and after 6pm.

d.All of the above

e.None of the above there is no such thing as a simple room count.

12. Many urban hotels will allow 6pm non-guaranteed reservations, while most resort properties have 4pm non-guaranteed reservations or may not allow non-guaranteed reservations at all. Why is the policy different at a resort?

a.Resorts are a long distance away so guest need to arrive earlier

b.Urban hotels hold the non-guaranteed reservation a couple of hours longer as the guest may be caught in traffic

c.Resort hotels do not have walk-ins later in the day and therefore cannot sell the room.

d.Urban hotels will have walk-ins long into the late evening hours so are better able to sell the canceled room.

e.Both c and d are correct

13. A guest checking out of a hotel at least one day before his originally scheduled departure is known as a(n):

a.understay

b.overstay

c.latent check-out

d.late departure

e.none of the above

14. A guest who stays in his/her hotel room past the hotels check-out time is known as a(n):

a.overstay

b.late check-out

c.understay

d.DND

e.Room Found Vacant

15. It is said that a guest reservation is a legal contract as the request constitutes the offer and the promise of accommodations represents the acceptance. If this is the case why are there so few law suits regarding hotels overbooking?

a.Guests cant be bothered

b.Hotels fight the law suits and guests never win as hotels can afford high priced lawyers

c.Courts consider theses lawsuits to be frivolous

d.Most hotels now pick up all the out of pocket costs to the guest and also pay for the room for the first night.

e.(a), (c) and (d) are correct

Short Answer Question. Answer briefly using a short paragraph or exhibit as appropriate:

16. Discuss the differences (if any) between the reservation and cancellation policies of a 500-room, upscale seaside resort and a busy, 300-room downtown corporate hotel.