HM201 EXAM2StudyGuide.pdf HM442
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This 9 page Study Guide was uploaded by Danielle Liberatoscioli on Saturday February 7, 2015. The Study Guide belongs to HM442 at Pennsylvania State University taught by Professor Matilla in Fall. Since its upload, it has received 277 views. For similar materials see Hospitality Marketing Exam 1 Review in Health and Human Services at Pennsylvania State University.
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Date Created: 02/07/15
HM 201 EXAM 2 Study Guide FRANCHISING CHAPTER 5 8 EXAM QUESTIONS Franchise rm that already has successful service enters into a contract with another business or person operating under the rm39s trade name Franchisor person who has the successful product or service offering granting the franchise agreement 0 Either owns the business or owns the trademark Franchisee person accepting the franchising agreement Pays for the business opportunity m offers the franchise to the franchisee Bene ts of being a Franchisee of a chain restaurant 0 Brand recognition and Marketing advertisingpromotion 0 Site selection analyzing location potential demographic surveys focus groups consumer surveys to nd a location with major traf c patterns 0 Access to capital access to cash stock offerings bonds liquid assets cash in the bank 0 Purchasing economies of scale basically buying the suppliers or having development laboratories for testing products and developing new products Liabilities to the Franchisee 0 Fees initial fee ongoing advertising Restriction in operating standards must follow brand rules Unwanted products procedures prices Unwanted advertising Unprotected areas encroachment quottrespassingquot on another39s property 0000 Bene ts to the Franchisor 0 Limited capital requirements 0 Limited risk to self and capital 0 Expansion and market penetration securing market dominance and greater buying power Liabilities to Franchisor 0 Lost potential pro ts opportunity costs 0 Loss of control 0 Managing growth how can we maximize growth when someone else is running the operation 0 Potential litigation contesting in legal matters CostFees to the Franchisor 0 Initial Franchise Fee paid by the franchisee o Royalties a sum of money paid to a patentee for the use of a patent usually a percentage of gross revenue 0 Advertising FranchisorFranchisee Relationship complementary roles interdependency sometimes contradictory goals Not an advantage of the franchising to the franchisee Autonomy in operations Not a fee that a hotel franchiser typically pays Royalty as a percentage of pro t ln franchising using is an advantage to the franchisor 0PM other people39s money HOTEL MACRO STRUCTURE INCLUDING HISTORY CHAPERS 911 12 24 OUESTIONS Classify Hotel Properties by looking at 0 Price Service Function Location Market segment 0000 Hotels classi ed by Price 0 Budget 0 Economy 0 Mid price 0 First class 0 Luxury Hotels classi ed by level and type of service 0 Limited Selectservice low rates limited food service scaled down meeting space breakfast ex Best Western Ramada Hampton Inn Dayslnn 0 Full service public meetings function space rates are above market average ex Hyatt Hilton Marriott Double Tree 0 Luxury concierge more foodbev options ne dining banquet facilities full room service ex Waldorf St Regis RitzCarlton Hotels classi ed by function 0 Convention Hotels large 500 rooms ballroom space close proximity to convention centers extensive food beverage and banquet facilities VS 0 Commercial Hotels 100500 rooms less public smaller meeting spaces fewer food and beverage outlets limited amenities Hotels classi ed by Location 0 Downtown 0 Suburban 0 Interstate highway Hotels classi ed by Market Segment 0 Executive Conference Centers Resorts picturesque settings Casino hotels gaming is big part of revenue Health spas resort setting with amenities Vacation ownership timeshare buyer purchases the right residential unit for a portion of the year 0000 OTHER types of Hotels 0 All Suite large guest rooms kitchen areas 0 Extended Stay Hotels rates as less than All Suite Hotels kitchen ware grocery shopping services 0 Bed and Breakfast Inns 510 rooms mostly outside of urban areas 0 Boutique Hotels different look and feel from traditional lodging properties LEISURE TRAVELERS 57 BUSINESS TRAVELERS 43 North America Forbes Travel Guide amp American Automobile Association AAA hotel rating services rated by stars and diamonds Occupancy Rooms sold Rooms Available for Sale Average Daily Rate ADR Revenue Rooms Sold Revenue per Available Room REVPAR Revenue Rooms Available for Sale Rack Rate price person pays when dealing with hotel directly STR Report Smith Travel Research Report leader in hotel research benchmarking service for the industry tracks supply and demand data for the hotel industry and provides market share analysis for all major hotel chains and brands in the United States Canada Mexico and the Caribbean PROFPAR Pro t per Available Room Certi cation in Hotel Industry Analvtics CHlA studentlearning program OWNERSHIP STRUCTURE 0 Hotel Brands sign or quot agquot you see outside of the building ex Holiday Inn Sheraton Hilton Best Western Courtyard O O 0 Hotel Companies owns the brand may or may not operate hotel ex Choice Hotels International owns Comfort Inn Quality Inn Another example is Hilton Worldwide owns Hampton Inn Hilton Hotels Garden Inn Starwood owns Sheraton St Regis and W Hotels Hotel Management Companies manages the hotel examples Interstate White Lodging Hotel Real Estate Investors Invest inown hotel real estate examples individuals Hotel Companies REITs AAHOA 34 United States hotels operate as franchises and most of the physical hotel buildings are owned by someone other than the hotel operator REITs Real Estate Investment trusts AAHOA Asian American Hotel Owners Association Ownership Structure Independent not af liated privately owned Chain hotels af liated Chain franchise operation is privately owned but the owner pays an upfront fee to purchase the franchise along with ongoing royalties gt hotel will bene t from recognition of the brand name by consumers a proven business model and national marketing the hotel s owner is dependent on that brand name for its business Independent ownership privately owned and operated hotel may have investors or others with a nancial interest in the hotel but the ownership structure is in one person or company s name gt This type of hotel ownership gives an owner the most freedom but also the biggest risk The hotel owner is free to make all decisions on staff operational structure and growth but does not have the bene t of a brand behind him Leased hotels are also privately owned but the physical hotel building belongs to someone else 0 Owner can have an agreement with a quotmanagement companyquot to operate the hotel 0 Management company A managed hotel is also privately owned but has signed an agreement with another hotel brand to run the hotel operations 0 Member Referral group offers discounts to memebers ex Best Western AAA American Automobile Association ADR Average Daily Rate BEO Banquet Event Order COMP Complimentary CTA Closed to Arrival CVB Convention amp Visitors Bureau DND Do not Disturb DOS Director of Sales DOSM Director of Sales and Marketing FampB Food and Beverage FAM Familiarization Trip Four Star Four Mobil Stars FFampE Furniture Fixtures and Equipment FIT Foreign Independent Traveler GDS Global Distribution Services Links airline hotel car activities GSA Guest Service Attendant GSI Guest Satisfaction Index HR Human Resources HVAC Heat Ventilation and Air Conditioning NS No Shows 000 Out of Order PCMA Professional Convention Management Association PMS Property Management System POS Point of Sale System RFP Request For Proposal SMERF Social Military Educational Religious Fraternal STR Smith Travel Research the STR Report Ernest Henderson Bought the Sheraton Frederick Harvey built hotels along the railroads Santa Fe railroads Kemmons Willson Started Holiday Inn Brand he went to Penn state HOTEL MICRO STRUCTURE CHAPTER 10 10 OUESTIONS Asset Manager manages building OWNS real estate Asset manager works for the owner Hiton is managing Waldorf Asset mang also does repairs to the hotel and rates Microstructure what happens inside the hotel Regardess of of rooms departments are still the same 3 Functional Areas 1 Room Division front desk 2 Food and Beverage department bars banquet halls restaurants 3 Staffing and support HR 1 Rooms Division heart of the hotel 0 Heart of the hotel Main business point of hotel Main source of revenue Rooms contribute 70 to overall revenue and pro t Center of activity front desk Checking in guests securing payments communicating with other departments selling additional rooms 0 Front desk front desk manager OOOOO Night auditor generates the bills balances the books Rack rate or asking price walking Resident Manager in a larger hotel the person under the general manager who assumes responsibility for daytoday operations Teecommunications switchboard PBX Private Branch Exchange answers and rotates cas Reservation department Guest can make reservations onine but requests can still be made through the reservation department Reservation department must be in communication with other departments to be able to forecast available rooms Reservation department attempts to maximize 1 room rate 2 occupancy rate Revenue Yield Management occupancy rate ADR average daily rate revenue Housekeeping Ceans rooms Restocking counter supplies Laundry LARGEST department in the hotel 50 of employees Uniformed Services Be staff act as escorts carry luggage answer questions Vaet cars Security safety keys noise Concierge offering guest services in the area Les Chefs d39or concierge international association 2 Food and Beverage 12 as much revenue as rooms 1020 of pro t Catering services manager oversees the meetings banquets conferences the hotel can provide if they have the space 3 Staff and Support Departments Saes and marketing Responsible for creating customers Accounting night auditor more than bookkeeping Human resources hiring recruiting ring training Engineering over sees HVAC plumbing lighting WlFl energy movement electric Financia Managementincome and expenses revenue and pro t strategy to cut costs cost of maintaining a hotel assets manager Occupancy rooms sold Tota rooms available RAS Average Daily Rate Revenue sales Number of rooms sold Number of guests per occupied room number of guests number of occupied rooms MEETINGS AND EVENTS 6 QUESTIONS US Foods and Sisco big food suppliers Meeting a planned event to bring people together to accomplish something Generates 85 billion dollars 36 of the hotel revenue HSMAI Hotel Sales and Marketing PRLA Pennsylvania restaurant Lodging Association WTO World Tourism Organization PCMA Professional Convention amp Meeting Association NRA National Restaurant Association 30 Corporate Business Meetings 70 Association SMERFS social military educational religious fraternal CVB Convention and Visitor39s Bureau What you need to be a meeting planner Communication skills Organizational skills Ability to stay calm Network of contacts MPI Meeting Professional International amp PCMA global associations Sales manager and client planners work directly with client agree on BEO Banquet Event Order Meeting professional represents corporations associations non pro ts governmental Subplier Meetino Professional providessells a product service to meeting industry ex destination management hotelier audiovisual transportation orist Meeting Management Professional provides meeting services nancial strategic meeting management services to multiple clients Certi ed Meeting Planner 3 years of work experience Certi cation in Meeting Management need at least 10 yrs experience to apply TRAVEL AND TOURISM CHAPTERS 13 14 6 OUESTIONS France most visited country 45 of Americans have passports Ecotourism concern with preserving and protecting the environment 5 of Americans travel abroad 90 of Europeans have passports DINKS duel income no kids Allocentric willing to try new things go new places Psychocentric enjoys doing the same thing Pushpull push cabinfever pull incentive looking at a picture of a beach RECREATION 6 QUESTIONS Recreation Park and tourism Management 0 Commercial and community recreation management 0 Golf Management 0 Outdoor Recreation 0 Therapeutic Recreation Resorts 0 A hotel that provides recreation for its guests Clubs 0 Private 0 Revenues initiation dues activity fees Casinos o Taxation economic growth 0 croupier run the games in a casino by throwing dice spinning the roulette wheel 0 PIT BOSS person who looks after the employees who work in a casino pit 0 Handle the total amount of wager placed by player or players at a game or all gaming tables 0 Hold Win Hold percentage of the slot handle that is won by the casino Win net dollars retained by the casino after all bets are paid Cruises o purser the person on a ship responsible for the handling of money on board 0 cruise director responsibility for all onboard hospitality entertainment and social events who acts as the public face of the company FampB Director galley responsible for the overall supervision of the entire food and beverage team onboard galley kitchen 0 Shore excursions Worlds largest cruise ship Allure of the seas 90 of all cruise vacations are booked through travel agents OOOO Theme and amusement parks Stadiums and arenas Festivals
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