Hotel Acronyms and numbers – Flashcards
Unlock all answers in this set
Unlock answersquestion
Comp
answer
complimentary
question
FF & E
answer
furniture fixture & equipment
question
job description lists..
answer
tasks related to position
question
job specification lists..
answer
qualities related to position
question
PAR
answer
per available room
question
POR
answer
per occupied room
question
RevPAR
answer
revenue per available room
question
USALI
answer
uniform system of accounts for lodging industry
question
CRS
answer
central reservation system
question
DOSM
answer
director of sales and marketing
question
SMERF
answer
social, military, educational, religious, fraternal
question
PMS
answer
property management system
question
POS
answer
point of sale
question
DD room
answer
double double room (2 double bed)
question
POM
answer
property operation and maintenance
question
GDS
answer
global distribution system
question
VIP
answer
very important person
question
House Count
answer
estimated number of guests staying in day
question
rack rate
answer
price which hotel sells room with no discount
question
room block
answer
rooms reserved for members of specific group for certain time
question
Proper job title for the position responsible for cleaning guest rooms?
answer
room attendant
question
For a "free-standing restaurant, what is a typical range of rent as a percentage of total revenues?
answer
6-9%
question
What is the "opposite" of "city ledger?
answer
guest ledger
question
whats alternative to merchant model?
answer
travel agent model
question
what is source of cap rates?
answer
ROI (return on investments)
question
AOP
answer
area of protection
question
AAHOA
answer
Asian American Hotel Owners Association
question
Approximately what is U.S. hotel occupancy in 2012?
answer
61%
question
75. Approximately what is U.S. hotel ADR in 2012?
answer
$170
question
57. What is a typical beverage cost percent in a hotel food and beverage department?
answer
18%
question
What is a typical food cost percent in a hotel food and beverage department?
answer
35%
question
Other than hotels, airlines and car rental companies, what type of business is a large user of GDS?
answer
travel agents
question
What is the common industry terms to describe turning away a guest with a confirmed reservation?
answer
walked, overbooked
question
The four "functions" of the "management process" are:
answer
planning, organizing, staffing/directing, controlling evaluating
question
According to our text, what percentage of total revenue in a hotel is paid to employees in the form for payroll, benefits and meals?
answer
44%
question
opaque model
answer
online sales method where consumers bid for room price and is matched by 3rd party
question
The most typical traditional travel agent commission is ___ percent
answer
10%
question
The most typical on-line travel agent commission is ___________percent.
answer
5%
question
26. With what demand segment is a "room block" most associated?
answer
SMERF
question
What is the job title the position for an employee that assists guests with restaurant reservations, theatre tickets and transportation?
answer
concierge
question
What is the single most significant difference between a full service and a limited service hotel?
answer
full service = has food beverage____limited: doesnt
question
What is the typical DEPARTMENTAL PROFIT is a hotel food and beverage department?
answer
20-25%
question
Please describe DRAM SHOP liability referring to alcoholic beverages. (maximum of 20 words)
answer
Legal concept holding 2nd party reliable for acts caused by 1st party if 1st party causes harm to 3rd party
question
What is the name of the hotel document typically prepared when there is an accident, injury or guest complaint?
answer
incident report
question
For a typical stabilized full service hotel, what percent of gross revenue is used to calculate Reserve for Capital Replacement?
answer
4%
question
Describe two especially important guest privacy practices:
answer
1) never give out guest information (registered,dates of stay, 3rd parties) 2) never give out room information (cost, number, key)
question
What are the four most commonly referenced demand segments?
answer
tourist sales, sports teams, educational facilities, business, SMERF
question
indemnification
answer
avoiding legal liability by shifting blame from one party to another
question
What are the three primary real estate valuation methods that were discussed in class (not the five referenced in the text)?
answer
replacement approach, income approach, sales comparison
question
merchant model
answer
internet sale method: hotel sells room to internet and sites present choices to guests for immediate purchase
question
A typical brand management agreement stipulates two fees. They are the (names) and amounts (formulae) as follows
answer
base) 3% of gross revenue incentive) 10% of IBFC
question
What is the formula for "cap rate"?
answer
Net income / property sales price
question
Please describe the concept of a "par" stock or "par" inventory. (maximum of 15 words)
answer
level of inventory desired by the restaurant,hotel, anythign
question
Please describe a PAYBACK ANALYSIS. (maximum of 20 words)
answer
Financial model that compares annual cash flow savings to payback period is equal or less than project approval.
question
What are the columns in a "tricolumnated" statement?
answer
a. actual hotel operating results from specific time period__________________ b. budgeted operating estimates for same period___________ c. actual operating results from prior year_________________
question
What is PIP?
answer
Property Improvement Plan: document detailing upgrades, renovations, and replacements if hotel accepted as franchise property
question
Describe AOP
answer
geographic area set aside by franchisor and granted to franchisee for no direct competition
question
Two Sources of Hotel Income Statement
answer
STR (host reports), PKR (trend report)
question
What is a source of financial ratios for hotels (and other industries)?
answer
RMA
question
77. What are two sources for hotel construction pipeline data?
answer
a. STR pipeline b. lodging econometrics
question
78. What are two recognized sources for hotel sales transactions?
answer
HVS (corporate report), Lodging econometrics( sales comparable)
question
66. Which major demand segment usually generates the highest ADR?
answer
corporate
question
EP
answer
european plan: no meals
question
MAP
answer
modified american plan: one meal (usually breakfast)
question
American Plan
answer
all 3 meals
question
54. What two "conditions" must exist for there to be a fraud or internal control failure?
answer
need, opportunity
question
71. What is an example of a (mostly) fixed cost?
answer
tax, rent
question
72. What is an example of a (mostly) variable cost?
answer
utility costs
question
81. Please provide an example of a "pure" franchise brand and a brand management brand:
answer
franchise: holiday inn brand: marriot
question
36. What are the three typical steps performed in a hotel related to Housekeeping before assigning a room to a guest?
answer
clean, inspect, report to front desk
question
6 Steps for Food and Bev.
answer
purchase, receive, store, issue, prepare, serve/leftovers
question
76. What is the most recognized source used to obtain a trend of occupancy, ADR, and RevPAR for London or Chicago?
answer
STR historical trend report
question
69. What is the most important reason for financial leverage?
answer
Solvency: ability of hotel to pay its bills Increase ROE
question
89. What are names of two of the most prominent U.S. lodging trade journals?
answer
lodging hospitality, hotel management
question
2 examples for all suite hotels
answer
Hilton Suites and Marriott Suites
question
17. What is Hayes' and Ninemeier's definition of LAW OF DEMAND? (maximum of 15 words
answer
Demand for rooms increases the prices increases, and demands for rooms decrease, prices decrease
question
EP
answer
european plan
question
AP
answer
american plan
question
MAP
answer
modified american plan
question
26. With what demand segment is a "room block" most associated?
answer
SMERF
question
35. What is a typical responsibility of a HOUSE PERSON?
answer
Individual responsible for cleaning public spaces
question
the three typical steps performed in a hotel related to Housekeeping before assigning a room to a guest?
answer
house cleaning staff cleans, room inspection verify room, room status reported to front desk
question
"sleep out".
answer
vacant but not ready for occupancy
question
41. What brands are four examples of "luxury" hotels?
answer
Pierre, St. Regis, Four Seasons, Ritz
question
Economy Hotels (4)
answer
Couryard Marriot, New World Hotel, Ramada, Fairfield Inn
question
4 Upscale Hotel
answer
hyatt, regency, grand, park
question
45. What is the primary difference between a gratuity and a service charge?
answer
Gratuity: complimentary Service Charge: mandatory amount added go bill for services
question
guest check average
answer
average amount spent by guest in room
question
contribution margin
answer
amount remains after product cost of menu subtracted from selling price
question
61. What are four especially significant reasons why hotel food and beverage departments are "less profitable" than free-standing restaurants?
answer
union, room service, location, meal plan, cost structure
question
city ledger
answer
Hotels accounting method for trading non guest transactions
question
68. What is the balance sheet equation?
answer
assets=liability + equity
question
73. What are three of the most important reasons why a developer might decide to affiliate a hotel with a hotel brand?
answer
training, increase sales/revenue, national/regional recognition
question
explain PIP
answer
document detailing upgrades, renovations, and replacements if hotel accepted as franchise property
