HMT EXAM 2 UPDATED Exam Questions and CORRECT Answers
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Module
HMT
Institution
HMT
HMT EXAM 2 UPDATED Exam
Questions and CORRECT Answers
Hotels control labor costs by using call-in staff - Correct Answer- TRUE
AAA, American Automobile association, has a contract from the U.S. - Correct AnswerFALSE
Department of commerce to rate and rank hotels in the 50 states as a means of...
HMT EXAM 2 UPDATED Exam
Questions and CORRECT Answers
Hotels control labor costs by using call-in staff - Correct Answer- TRUE
AAA, American Automobile association, has a contract from the U.S. - Correct Answer-
FALSE
Department of commerce to rate and rank hotels in the 50 states as a means of assuring
quality standards to international guests visiting the country.
• AAA not in the business of regulating hotels
It a resort includes all meals, tips, food and beverage in one room-rate quote, it is said to be a
megaresort - Correct Answer- FALSE
• A megaresort is the size and amenities so you would never need to leave the property during
your trip. Anything you could ever want
Because occupancy reflects both supply and demand it measures the economic health of the
individual hotel and indeed, or the entire industry. - Correct Answer- TRUE
• Because occupancy displays what you need for the customers and measures economic
health of individual hotels
• If it measures for each hotel then measures the entire industry
• Measure using occupancy and ADR
• Occupancy is equally as important as ADR
The hotel industry is counter cyclical; that is, it improves when the general economy falls and
declines when the general economy booms. - Correct Answer- FALSE
• It goes in cycles
• When economy is strong everybody rises including the hotel business
• People do not travel as much when economy is down
Inn keeping is a cyclical industry that goes from highly profitable peaks to very difficult
troughs - Correct Answer- TRUE
, RevPar measures revenue relative to the total room inventory; ADR measures revenue
relative to the number of rooms sold - Correct Answer- TRUE
Once a hotel achieves its break-even point, profits accumulate rapidly because fixed expenses
and many semi-fixed expenses have been met - Correct Answer- TRUE
Location, location, location - Correct Answer- refers to a critical component of real estate
What other term or terms means the same as "the number or rooms sold?" - Correct Answer-
c. number of rooms occupied
Which statement is the most accurate? Above all else, hotel keeping - Correct Answer- b.
depends on its rooms sales
Which of the following is a semi-fixed expense: - Correct Answer- b. power/energy/water
• Salaries for the month are fixed expense
Which is NOT a characteristic of the commercial lodging industry: - Correct Answer- c. high
weekend occupancy
The number of rooms occupied is the same as the number of: - Correct Answer- b. rooms sold
A brand is successful when customers (guests) have come to recognize the name and logo
and associate a particular level of service, cost and accommodations with that name - Correct
Answer- TRUE
Improving RevPar industry-wide has brought rising amenities with it.
• - Correct Answer- TRUE
Greater amenities leads to greater incentive
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