True/False Questions. Circle either T for true or F for false:

1. Hotels are often graded by stars: the more stars the better the hotel, with 5 stars typically the best.

T F

2. Strange as it may seem, most hotels in North America (Canada and the United States) operate almost entirely on the European plan (EP), rather than on the American Plan (AP) or the modified American plan (MAP). T F

3. It is possible not limited by the contracts of the large franchise and management companies for one individual to own, say, four different hotels in the same city with four different franchises and four different management companies. T F

4. As a general rule, the business travel market is more price sensitive (that is more elastic in nature) than the leisure/tourist market. T F

5. An October bus tour (through the foliage country of Muskoka) sold through a wholesaler and paid for by each individual traveler is a simple example of an incentive trip. T F

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

6. The 210-room Peninsular Hotel in Hong Kong has approximately 600 employees; therefore, its ratio of employees per guest rooms is:

1. 210 x 600
2. 210 / 600 (/ means divided by)
3. 600 x 210
4. 600 / 210 (/ means divided by)
5. Insufficient information to answer the question

7. ADR is:

1. the same as rate per room sold
2. a fraction: room sales (or income or revenue) / number of rooms sold
3. average daily rate
4. a measure of class, one of the hotel industrys traditional classifications
5. all of the above

8. RevPar is:

a. another way of quoting room rates to guests

b. the product of ADR multiplied by the percentage of occupancy

c. higher in limited-service properties than in full-service properties

d. another way of saying, revenue earned per room available

e. both b and d

9. REITS are:

1. Real Estate Insured Treasuries -- loans guaranteed by an agency of the federal government to help small business persons acquire real estate, often hotels
2. Real Estate Investment Trusts -- methods of financing real estate, often hotels, through public ownership because the shares are traded on the public stock exchanges
3. Real Environmental Issues Terrain -- sensitive environmental areas (along beach fronts, for example) not open to real estate development including hotels and resorts
4. Real Environmental Energy Institutional Treaty the international agreement that has cost hotels greatly reduced profits because of its restriction on the use of certain fossil fuels
5. none of the above

10. Amenity creep is:

1. an increase in room rates made without regard to competition
2. the guests increased expectation of added values and services caused by the industrys continued addition of added values and services
3. the result of consolidation and segmentation within hotel keeping
4. the difference in value between international currencies when one currency continues increasing against the other
5. the increased use of comps (free accommodations) to lure casino players on to the property

11. Modified American Plan (MAP) is when
    1. rates are quoted including only the room accommodation.
    2. rates are quoted including the room and all 3 meals, breakfast lunch and dinner.
    3. rates are quoted including the room and a coffee urn and sweet rolls served in the lobby.
    4. rates are quoted including the room and 2 meals usually breakfast and dinner.
    5. a specific rate is quoted to guests from the U.S.A.?

0. 12. Typically a downtown urban hotel will experience the following occupancy pattern.
1. High weekend occupancy with lower occupancy during the week.
2. Low weekend occupancy with occupancy remaining the same Monday through Thursday.
3. Highest occupancy on Monday and Tuesday night with slightly lower occupancy on Wednesday and Thursday night and low occupancy through the weekend.
4. Occupancy is fairly constant no matter what day it is.
5. Saturday night has the highest occupancy with the rest of the nights being about equal.

0. 13. The founder of the Holiday Inn chain is
1. Wallace B. Johnson
2. Billy Holiday
3. David Rubinoff
4. Kemmons Wilson
5. Ray Kroc

0. 14. According to your textbook, most American travelers to Canada originate from
1. Florida
2. Michigan
3. New York State
4. Ohio
5. Washington

15. The tourism and hospitality industry is a segmented industry. Hotels segmented by management would be represented by the following:
    1. collar, mixed use and hostel
    2. airport, highway and seaside
    3. chain, management company, self-managed
    4. five-star, four-star, three-star
    5. commercial, residential, resort