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Week 1 Quiz Guide

by: Ray Park

Week 1 Quiz Guide TCHT1-UC 1070

Ray Park
NYU School of Professional Studies

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About this Document

This is a collection of all quiz Guide from Chapters 1 to 4
Lodging Industries and Structures
Bjorn Hanson
Study Guide
Hospitality and Business Management, Hospitality
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This 8 page Study Guide was uploaded by Ray Park on Tuesday September 13, 2016. The Study Guide belongs to TCHT1-UC 1070 at NYU School of Professional Studies taught by Bjorn Hanson in Fall 2016. Since its upload, it has received 44 views. For similar materials see Lodging Industries and Structures in Hospitality at NYU School of Professional Studies.

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Date Created: 09/13/16
Chapter 1-4 Quiz Guide Chapter 1  Hoteliers: Those professionals who work in the Hotel and lodging business  Full-Service Hotel: A lodging property that offers guest rooms and meeting space as well as complete food and beverage services  Select-Service Hotel: A lodging property that offers only a select number of services, with a need for extra fee  Limited-Service Hotel: A lodging property that usually includes no food or beverage department and just a sleeping department  A La Carte: A good-service operation in which the menu items offered are individually priced  Hostel: Inexpensive sleeping accommodations, typically dormitory style and often with shared bathroom facility that are popular among young travelers  Suites: This term generally refers to a guest room consisting of at least two physically separated rooms or, at least, a hotel room that is extra-large when compared with that hotel’s standard guest room  Number of Hotels: 52,887 (50,000)  Number of Rooms: 4,926,543 (5,000,000)  Average Number of Rooms per Hotel: 93  Average Room Rate: $85.00  Perishability: is basically the loss of potential revenue. For example, if a room is unavailable for a week, then the hotel lost a week worth of potential revenue from that one room  Revenue: Money the hotel collects from guests for the rental of rooms as well as the purchase of hotel goods and services  Labor Intensive: means that machines can not replace the work of any staff member. Every job in a hotel industry consists of lots of man-made services. Because of this a hotel’s ability to attract and retain qualified staff members that deliver great service is a great plus  A hotel owner uses a brand name for their hotel, with a fee. The hotel owner usually manages the hotel, however sometimes other companies can be hired to manage the hotel, making the owner a passive owner. There are a number of ways hotels can be owned and managed however… o Single-Unit Property Not Affiliated with Any Brand are basically hotel businesses that do well without a brand name or any other name. They are successful just being in the area and stay successful in that area for many years. However this is usually a rare case o Single-Unit Properties Affiliated with a Brand is basically that the hotel owner buys the brand name for his/her hotel. This is the most common practice and because of the brand name, the hotel develops lots of reputation and success o Multiunit Properties Affiliated with the Same Brand is when an owner owns multiple hotel buildings and uses the one name brand on each of the hotels. Managing each hotel becomes easy because of the same popular brand name o Multiunit Properties Affiliated with Different Brands is when owners with different hotel buildings use different brand names for their hotels. This gives away the challenge of competition of the hotels are in the same area o Multiunit Properties Operated by the Brand or Others is when an owner hires the brand name company or hires a third party management company to manage the multiple hotels, making the owner a passive owner o Multiunit Properties Owned by the Brand is when the brand name companies own the actual hotel buildings and manage them  Brand: The name of a hotel chain; sometimes referred to as a flag  Franchisor: A company who owns the right to manage a brand and sells the use of the brand’s name  Franchisee: A person or entity that purchases the right to use a brand name for a certain time period and price  Management Company: An organization that operates/manages a hotel for a fee  Front Desk: The are within the hotel used for guest registration, communication, and payment  Resident Manager: The manager in la large hotel who is directly responsible to the GM for the property’s operating departments, meaning food, purchasing, etc.  Line Departments: These are the jobs that work directly with guests and the revenue making part of the hotel  Staff Department: These are the jobs that work behind the scene  Revenue Center: This is just a part of the hotel that makes revenue, such as food department and front desk department Cost Center: These are the jobs that helps with the revenue center but does not generate any revenue, only costs more. Such as housekeeping and maintenance  Downsizing: Reducing the number of workers in a hotel for cost-containment purposes  Defect: Used in quality management to describe the cost that is incurred which does not yield benefit for the guest  Overbuilt: The condition that exists when the number of hotel guests rooms available exceeds the number of actual hotel guests  Market Segmentation: This is the effort of focusing on a highly specific group of travelers and guests  Occupancy Rate: The ratio of guest rooms sold to guest rooms available. Usually expressed as a percentage (Total Rooms Sold/Total Rooms Available = Occupancy Percent (%)) PAGE 22 INTERESTING DETAIL: 57% of all travel bookings are made on the internet and 67% of same day hotel reservations are made from a smartphone Mentor: A senior employee in hotel or someone who can provide professional advice Amenities: A part of the hotel for a specific purpose, for example a pool or a fitness gym Chapter 2  Quality: The consistent delivery of products and services according to expected standards  Service: The process of helping guests by addressing their wants and needs with genuine respect and dignity in a timely manner  Value: A guest’s perception of the relationship between what was paid for a hospitality product or service relative to what was received for the payment  Corporate Culture (Service Culture): A collection of understandings shared by employees that influence organizational decision making (Service Culture is all of this combined as a whole concept/idea)  Core Values: The foundations of a corporate culture that describe how people in the organization intend to act  Vision: A picture of a hotel’s ideal future and answers the question “What do we want to create?”  Mission: A planning tool that clarifies how the hotel will add value for guests, employees, and others that it impacts  Empower: The act of granting employees the authority (Power) to make key decisions within their areas of responsibility  Empowerment: The act of granting authority to employees to make key decisions within the employees’ area of responsibility  Employee-to-Guest Ratio: Basically the number of employees to the number of guests. Ideally, it would be best if the ratio is 1:1. But this can be hard in some small hotels. Therefore the goal is to get to the 1:1 ratio as closely as possible without making any large sacrifices or trouble  Mystery Shopper: This is a shopping service that takes the evaluation of a customer, or a guest in this case, and relays that evaluation/information to the organization it refers to  Benchmark: The search for best practices and an understanding about how they are achieved in efforts to determine how well a hospitality organization is doing  Repeat Business: Guests who return to the property for additional visits after their first visit  Zero Defects: A goal of no guest related complaints established after guest service processes are implemented  Accountability: An obligation created to complete an assignment that has been delegated by someone at a higher level of management  Employee Turnover Rate: A measure of the proportion of a workforce that is replaced during a designated time period (Month, quarter, or year). It can be calculated as (Number of Employees separated/Number of employees in the workforce = Employee turnover rate)  Service Recovery: What to do when a guest has a problem… o Step 1: Introduce yourself by Name and Position  Basically to ensure that the guest knows that you are there to actually help them o Step 2: Discover necessary information  Make sure you know exactly what the problem is, even if the guest is wrong from their perspective  Never interrupt a guest o Step 3: Empathize with the Guest  Empathizing shows to the guest that you genuinely care o Step 4: Fix the problem and Apologize on behalf of the hotel  Hopefully that employee will be able to solve the problem and make the right decisions to do so  Apologizing at the end to conclude never hurts o Step 5: Thank the Guest for bringing the matter to your attention  It is always good to know and fix problems in an organization  Also if you fix the problem immediately while the guest is still in your presence, there is a greater possibility that the guest will be pleased with the resolution alternative offered Chapter 3  General Manager: The traditional title used to identify the individual at a hotel property who is responsible for final decision making regarding property specific operating policies and procedures; also the leader of the hotel’s management team  FF&E: The term used to refer to the furniture, fixtures, and equipment utilized by a hotel to service its guests  Radio Frequency Identification (RFID): An RFID device serves the same purpose as a bar code or magnetic strip, but does so by communicating scanned information electronically. RFID applications in hotel industry include locking systems as well as guest charge card purchase and payment systems  Executive Operating Committee (EOC): Those members of the hotel’s management team (Generally department heads) responsible for departmental leadership and overall property administration  Investor Relations o This includes Financial Analysis, proficiency in written communication, and, often, effective public speaking/presentation skills o The best GMs know the hotel and the most information about their hotel. Therefore, they properly inform their owners and investors about the current performance and the future needs of their hotel  Figure 3.1 o (Management Team Member) – (Responsible For) o Assistant (AGM) – Tasks as assigned by the GM o Controller – Accounting for Hotel assets and liabilities o Human Resource Manager – Hotel Staffing needs o Director of Sales and Marketing (DOSM) – Revenue Production and Hotel promotions o Front Office Manager – Guest service and sales o Revenue Manager (RM) – Rooms pricing and rooms inventory allotment o Executive Housekeeper – Property Cleanliness o Chief Engineer – Upkeep of the hotel’s physical facility o Food and Beverage Director (F&B Director) – Food and beverage production and service o Director of Security – Guest, employee, and property safety and security  Management o Planning – this is the process of creating goals and objectives and then designing action plans, strategies, and tactics to achieve those goals and objectives (Sample questions to help with planning are on page 62) o Organizing – This relates to arranging and deploying resources in a manner that efficiently helps achieve an organization’s goals o Staffing/Directing – This is related to the GM’s recruiting, motivational, and leadership characteristics. The GM must demonstrate real leadership, and often, through willpower, motivate a hotel staff to achieve new things that were never before considered possible o Controlling and Evaluating – The purpose of this function is to measure an assess results; it is more than just journal entries, ledger balances, and changes in cash flow. Questions like “Were the hotel’s average daily rate targets achieved?” and “Were its revenue per available room targets achieved?” have to be answered. This role must be attended on a continuous basis  Figure 3.2 o This is a management process cycle (From Planning to Organizing to Staffing and Directing to Controlling and Evaluating to Planning again)  Comp: Short for complimentary or no-charge for products or services. Rooms, food, beverages, or other services are often given to guests by management if, in their opinion, the comp is in the best interest of the hotel  Average Daily Rate (ADR): The average price at which a hotel sells its guest rooms. It is calculated as (Total Rooms Revenue/Total number of Rooms Sold = ADR)  Revenue per Available Room (RevPAR): The average amount of revenue generated by each of a hotel’s available room in a specified accounting period. RevPAR can be calculated (Total Rooms Revenue/Total number of Rooms Available for Sale = RevPAR)  Brand Affiliation Management o As a GM, one must manage the relationship between your property and your franchise’s brand managers for the good of your hotel’s owners, community, employees, and, most importantly, your guests o The talents required for this job is well-developed interpersonal skills, persuasive ability, listening skills, and the ability to communicate effectively in writing  Quality Inspection Score: Scores that are the results of annual (or more frequent) inspections conducted by a franchise company to ensure that franchisor-mandated standards are being met by a franchisee  Community Relations o It always good to try and help out the community around the hotel area o It builds the area’s and the hotel’s reputation for doing so o The talent required for this role is an outgoing personality, well- developed social skills, and, very often, effective public- speaking/presentation skills  The International Council on Hotel and Restaurant and Institutional Education (ICHRIE): This is a nonprofit professional association that provides programs and services to continually improve the quality of global education, research, service, and business operations in the hospitality and tourism industry  On-Job-Training (OJT): Learning activities designed to enhance the skills of current employees. OJT programs are typically offered by management with the intent of improving guest service and employee performance at the hotel. There is generally no charge to the employee for the training  Internet Information pg.73: This is a list of some of the memberships offered by professional trade associations you may consider joining  AH&LA: Is a resource for Hospitality and tourism professionals  American Hotel & Lodging Educational Institute (AHLEI): This is an organization that provides working hospitality professionals with education and training.  HSMAI: This is a global organization of sales, marketing, and revenue management professionals representing all segments of the hospitality industry  Meeting Professionals International (MPI): This is the largest and most vibrant global meet and event industry association  Trade Publications: This can be a variety of things, but basically this is things that have been published for those interested in the hotel industry. It can be a book, article, website, etc. that is solely for the interest in the hotel industry Chapter 4  Human Relations: Skills needed to understand and effectively interact with other people  Labor Intensive: The notion that it takes many staff members to produce the services and products hotel guests desire  GMs must always be on top of the changes that occur in the world, whether it be technological or political. These changes deal with how the GMs interact with people o Interact with a more diverse workforce o Emphasize teams rather than the performance of individual employees o Cope with the fast-paced change of technology o Adjust to workplace changes, sometimes including reengineering and/or downsizing o React to global challenges. The impact of one country’s economy in another part of the world often has a direct impact on the economy of a local community and other areas from which a hotel attracts its guests o Improve quality while increasing productivity. “Doing more and better with less” is no longer a slogan. Instead, it is a philosophy and a work objective in many hotels o Improve ethical/social behavior. Hoteliers must be fair to all and must ensure that the hotel is a good “citizen” within the community  Reengineering: Reorganizing hotel departments or work sections within departments  Front-of-House: A term often used to describe employees who directly serve guests  Back-of-House: A term often used to describe employees who help their front- of-house peers serve the guests  A good GM must develop and maintain the organizational culture of the hotel  The organizational culture of the hotel allows long term planning, the creation of better policies and procedures, the determination of operating plans, and the services of products and memorable services o Core Value, Mission, and Vision is all part of the organizational culture (Which can be looked at Chapter 2)  On-Boarding: The process by which a new employee is welcomed and integrated into the hotel  Recruitment: Activities designed to attract qualified applicants for the hotel’s vacant positions  Selection: The process of evaluating job applicants to determine who is the most qualified for and likely to be successful in every department  Orientation: The process of providing basic information about the hotel which must be known by every employee in every department  Induction: The process of providing basic information about the department and position which must be known only by employees working within the department or position  Off-Boarding: The processes used when an employee leaves the hotel for any reason including resignation, retirement, and termination  Ethics: Standards used to judge the “right” and the “wrong” (or “fairness”) of one’s actions when dealing with others  Team decision making approach can be traditional, recent, or contemporary o Traditional – Manager makes decisions unilaterally o Recent – Manager makes decisions after input from others o Contemporary – Manager allows the affected team of employees to make decisions  Delegation: The process of assigning authority to others to enable subordinates to do work that a manager at a higher organizational level would otherwise do  Figure 4.3: Steps in effective delegation o There must be an organizational climate in which delegation can occur o Specific duties and responsibilities are assigned to an employee o Sufficient authority is granted so the employee can carry out the assignment o The supervisor and employee agree on specific results that are expected o The delegated responsibility is communicated to others to minimize confusion about “who does what” o The manager establishes a feedback system to measure Progress as the assignment is completed  Vertical Communication: Communications between individuals that flows up and down throughout the organization  Horizontal Communication: Communication between individuals at the same organizational level  Grapevine: Informal communication that flows throughout the hotel  Motivation: An inner drive that a person has to attain a goal  Discipline: Activities designed to reinforce desired performance (positive discipline) or to correct undesired performance (negative discipline)  Progressive Discipline: A process of negative discipline in which repeated infractions result in increasingly severe penalties  The steps to take for active/progressive discipline is… o Step 1: Oral Warning (no entry in employee’s record) o Step 2: Oral Warning (Entry in employee’s record) o Step 3: Written Reprimand o Step 4: Suspension for a specified number of days o Step 5: Discharge from the organization  Unfortunately, many hotel GMs must spend a significant amount of time protecting their guests, employees, and the property from the fraudulent acts of dishonest persons o An example is credit card fraud, someone taking the credit card of another person and faulty using that money and the hotel services for free


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