HRMA 1337, Exam 1 Study Guide Version 2
HRMA 1337, Exam 1 Study Guide Version 2 Hrma 1337
Popular in Intro to Hospitality Industry
verified elite notetaker
Popular in Hotel and Restaurant Management
verified elite notetaker
This 7 page Study Guide was uploaded by Theresa Nguyen on Monday September 26, 2016. The Study Guide belongs to Hrma 1337 at University of Houston taught by S. Barth in Fall 2016. Since its upload, it has received 70 views. For similar materials see Intro to Hospitality Industry in Hotel and Restaurant Management at University of Houston.
Reviews for HRMA 1337, Exam 1 Study Guide Version 2
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 09/26/16
Test 1 Review from Chapter 1 – Chapter 5 Moments of Truth/Customer Care - A term coined by Jan Carlson - Every hospitality organization encounters hundreds of moments of truth (guest encounters) every day. - Service commitment is a total organizational approach that makes quality of service as perceived by the customer. Perishability - The limited lifetime of hospitality products; for example, last night’s vacant hotel room cannot be sold today. - For example, we have 1,400 guest rooms in inventory that are available to sell, but we only sell 1,200 rooms. Tangible vs Intangible - Tangible: something that can be touched Example: Equipment, Vehicles, Tools, and Furniture and Fixtures - Intangible: something that cannot be touched the consumption and production occur at the same time, making them inseparable. Example: Patents and Copyrights, Goodwill, Closing Costs, Research and Development Expenditures, Rights Inseparability and Separability - Inseparability: the interdependence of hospitality services offered the consumption and production occur at the same time - Separability: capable of being separated Definition of a guest – internal customers and external customers - External Customers External customers are essential to the success of any business, as they provide the revenue stream through their purchases that the enterprise needs to survive. Satisfied external customers often make repeat purchases as well as refer your business to other people they know. A customer who suffers through a negative experience with a business, such as being treated rudely by an employee, can also hinder a business by dissuading others from patronizing it. - Internal Customers While internal customers may not necessarily purchase the products or services offered by their employer, the internal customer relationship also plays a key role in the business's success. In the sales example, the salesperson who does not work well with customer service may have greater difficulty placing orders or obtaining answers to his external clients' questions, resulting in a poor level of service. Strained internal relationships can also adversely affect company morale. Empowerment - The act of giving employees the authority, tools, and information they need to do their jobs with greater autonomy. Where do ethics come from and what is ethics? - The study of standards of conduct and moral judgement; also, the standards of correct conduct. Is revenue management an ethical? - Yes Revenue Management - The management of revenue - Revenue management is used to maximize room revenue at the hotel. - It is based on the economics of supply and demand, which means that prices rise when demand is strong and drop when demand is weak. - Although management would like to sell every room at the highest rack rate, this is not possible. - Conventions, groups, and organizations are often granted a reduced room rate as an incentive to stay at a particular property. - Revenue management will monitor reservations and based on previous trends and current demand, will determine the number and type of rooms to sell at what price to obtain the maximum possible revenue. - Revenue per available room, or REV PAR, was developed by Smith Travel Research. It is calculated by dividing room revenue by the number of rooms available. For example, if room sales are $50,000 in one day for a hotel with 400 available rooms, then the REV PAR formula is $50,000 divided by 400, or a REV PAR of $125. - Hotels use REV PAR to see how they are doing compared to their competitive set of hotels. - Hotel operators use REV PAR as an indicator of a hotel’s revenue management program. Feasibility - The assessment of the viability of a proposed venture. - This study determines the degree to which the proposed hotel project will be financially successful. Ecotourism - Responsible travel to natural areas that conserves the environment and sustains the well-being of the local people. REIT – Real Estate Investment Trust - A method that enables small investors to combine their funds and protects them from the double taxation levied against an ordinary corporation or trust; designed to facilitate investment in real estate in much the same way a mutual fund facilities investment in securities. Airline start revenue management Sustainability - The ability to achieve continuing economic prosperity while protecting the natural resources of the planet. STAR report - A benchmarking suite that tracks one hotel’s occupancy Training System - The chief function of businesses in the hospitality industry is to serve people -- whether it's food, lodging or a combination of these and other services. - The importance of employee training and development in hospitality can’t be overstated, because every job ultimately aims for guest satisfaction. - Workers in every facet of hospitality, from dishwashers to managers and owners, affect the guest experience. - Without proper training, employee-guest encounters can go off track, affecting your bottom line. - Training can be expensive, but the benefits can outweigh the costs involved. Pros and Cons Franchisee - Pros: Proven Concept Training and Support Small Business with Big Budget - Cons: Inflexibility High costs/fees Categorizing Hotel – Price, Service Level, Location - American Hotel and Lodging Association (AHLA) indicates there were 52,887 hotels and motels in the U.S. in 2013—about 4,926,543 rooms with $163 billion in sales. The average rate per available room was $68.64 and the average occupancy was 62.2 percent. - City Center and Suburban Hotels - Resort Hotels - Airport Hotels - Freeway and Interstate Hotels and Motels - Casino Hotels - Conference and Convention Hotels - Full-Service Hotels - Economy/Budget Hotels - Boutique Hotels - Extended Stay Hotels and All-Suite Extended Stay Hotels - Condotels, Timeshares, and Mixed-Use Hotels - Bed and Breakfast Inns Vertical Integration - the combination in one company of two or more stages of production normally operated by separate companies - When you buy your suppliers out, in order to control your own raw materials and businesses. The differences between amenity and a benefit - Amenity: Services or goods offered to hotel guests in addition to a basic room, such as soaps, robes, a game room, or a pool. - Benefit: A service or right provided by an employer in addition to wages or salary, including employee health care, dental and vision insurance, vacation and sick leave pay, retirement contributions, or other benefits paid wholly or in part by the employer. Classifying hotels by location - Hotels are located in an urban or city center, suburban, airport, interstate or freeway, resort, small town/rural, casino, full-service, extended-stay, all-suite, convention, or bed and breakfast. Hotel Organizational Structure - A comprehensive plan by a hotel owner to define departmental activities and responsibilities. - This structure brings order to every aspect of hotel operation from the front desk and room service to the human resources department. - Hotel organizational structures are necessary to ensure maximum profitability from each room, restaurant and bar on a daily basis. - Your hotel can run efficiently if it creates an organizational structure that is easy to understand. Average Daily Rate - One of the key operating ratios that indicates the level of a hotel’s performance. - It is calculated by dividing the dollar sales by the number of rooms rented. Room Service - The cleaning of rooms and resupplying of materials (towels, soap, etc.) by the housekeeping staff. Capture rate - In hotel food and beverage practice, the number of hotel guests who use the food and beverage outlets. Beverages - Alcoholic beverages: a drink that contains a substantial amount of alcohol. Further categorized as wines, beer, and spirits. - Nonalcoholic beverages: a beverage that contains little to no alcohol. Lifestyles have become more healthful, and organizations like MADD (Mothers Against Drunk Driving) have raised awareness. Differences of the types of spirits - Whiskies Whisky is a generic name for the spirit that was originally brewed in Scotland and Ireland. It is made from a fermented mash of grain to which malt (barley) is added. Whiskies are naturally white or pale in color. Whisky’s color comes from the charred oak barrel in which it is stored. Many whiskies are aged only 3 to 5 years, with some as long as 12 to 15 years. To achieve a quality and distinctive taste, whiskies are blended according to the “secret recipe” of the distillery. Scotch Whisky o Scotch Whisky is also referred to as “Scotch.” o It became popular in the U.S. during Prohibition (1919 to 1933), when it was smuggled into the country via Canada. o It is produced like other whiskies, except that the malt is dried in special kilns that give it a smoky (peaty) flavor. Irish Whisky o Irish Whiskey is produced from malted barley, unmalted barley, corn, rye, and other grains. o This whiskey is milder than Scotch. Bourbon Whiskey o Bourbon whiskey is produced mainly from corn. o Charred barrels provide bourbon with its distinctive taste. o Bourbon can only be made in the United States. Canadian Whisky o Canadian Whisky is made mainly from corn and is mostly blended. o It must be at least 4 years old before it can be bottled and marketed. o It is characterized by a delicate flavor that pleases the palate. - White Spirits Gin, rum, vodka, and tequila. Gin’s primary flavor is from juniper berries. It was widely produced in the United States during Prohibition and forms the base of many cocktails. Rum can be light or dark in color. It is distilled from the fermented juice of sugarcane (light rum) or molasses (dark rum). It comes primarily from the Caribbean Islands of Barbados, Puerto Rico, and Jamaica. Tequila is distilled from the agave tequilana (a cactus). Mexican regulations require that tequila be made in the area around the town of Tequila, in Jalisco. Tequila may be white, silver, or gold in color. Vodka can be made from many sources including barley, corn, wheat, rye, or potatoes. It lacks color, odor, and flavor and is usually mixed with juices or other mixes. - Other Spirits Brandy is distilled from wine. Cognac is considered to be the best brandy in the world. It is made only in the Cognac region in France. - Cocktails Cocktails were first developed in England in the Victorian Era and became popular during the 1920s and 1930s. Cocktails are intended to stimulate the appetite or provide the perfect ending to a meal. Cocktails are usually drinks made by mixing two or more ingredients (wines, liquors, and/or fruit juices). Fermentation process - The chemical process in which yeast acts on sugar or sugar- containing substances, such as grain or fruit, to produce alcohol and carbon dioxide. Champagne - Sparkling wine made in the Champagne district of France. Open sparkling wine - Twist the bottom hand until the cork eases out Keeping the bottle pointed in a safe direction (i.e. away from you and other people), grasp the cork with one hand and the base of the bottle with the other. Don’t try to twist the cork. Instead, hold the cork firmly while turning the bottle slowly, toward you, with the hand holding the base. As you turn the bottle from the base, you should feel the cork start to loosen and then ease into your hand. Continue until you hear the soft pop of the cork leaving the bottle. Tip: To avoid foamy overflow, pour only about an inch of wine into each glass at first, wait a few seconds for bubbles to subside, and then continue filling to just below the rim. Red wine – goblet style wine - a wine with a predominantly red color derived during fermentation from the natural pigment in the skins of dark-colored grapes.
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'