1.
Which of the following is not another name for the daily operations report?
Correct Answer
C. Room revenue report
Explanation
The room revenue report is not another name for the daily operations report because it specifically focuses on the revenue generated from room sales, whereas the daily operations report encompasses a broader range of information about the daily activities and performance of a business. The room revenue report may provide details such as room occupancy rates, average daily rate, and total revenue from room sales, while the daily operations report may include information about sales, expenses, staffing, and other operational aspects of the business.
2.
Which of the following ratios is the most commonly used operating ratio in the front office?
Correct Answer
B. Occupancy percentage
Explanation
The occupancy percentage is the most commonly used operating ratio in the front office because it provides a measure of how efficiently the hotel is filling its available rooms. This ratio is calculated by dividing the number of occupied rooms by the total number of available rooms and multiplying by 100. A high occupancy percentage indicates that the hotel is effectively utilizing its rooms and generating revenue, while a low percentage may suggest underutilization and potential revenue loss. Therefore, monitoring and maximizing occupancy percentage is crucial for front office operations.
3.
Which of the following formulas is used to calculate the yield statistic?
Correct Answer
C. Actual rooms revenue divided by potential rooms revenue
Explanation
The formula used to calculate the yield statistic is the actual rooms revenue divided by the potential rooms revenue. This ratio helps determine the effectiveness and profitability of a hotel by measuring how well it is utilizing its available rooms to generate revenue. By comparing the actual revenue earned to the maximum revenue that could have been earned if all rooms were occupied, the yield statistic provides insights into the hotel's performance and efficiency in maximizing its revenue potential.
4.
What might increase when multiple occupancy increases?
Correct Answer
D. Nothing will increase
Explanation
When multiple occupancy increases, it means that more people are sharing the same room. In this scenario, nothing will increase because the average daily rate, number of rooms sold, and average rate per guest are all based on individual occupancy. Since multiple occupancy does not affect these factors, they will remain unchanged.
5.
The Smithson Inn had budgeted $15,000 in room revenue for the month of May. The actual room revenue was $18,000. What type of variance did they experience?
Correct Answer
A. Favorable revenue variance
Explanation
The Smithson Inn experienced a favorable revenue variance because the actual room revenue of $18,000 exceeded the budgeted amount of $15,000. This means that they generated more revenue than expected, which is a positive outcome for the business.
6.
Based on the following data, calculate the ratios in questions 6 through 10.
Number of rooms available for sale: 500
Number of rooms sold: 450
Number of guests: 605
Rack rate (same for singles and doubles): $125
Net rooms revenue: $48,500
Occupancy Percentage
Correct Answer
A. 90%
Explanation
The occupancy percentage is calculated by dividing the number of rooms sold by the number of rooms available for sale and then multiplying by 100. In this case, the number of rooms sold is 450 and the number of rooms available for sale is 500. So, the calculation would be (450/500) * 100 = 90%. Therefore, the occupancy percentage is 90%.
7.
Based on the following data, calculate the ratios in questions 6 through 10.
Number of rooms available for sale: 500
Number of rooms sold: 450
Number of guests: 605
Rack rate (same for singles and doubles): $125
Net rooms revenue: $48,500
Average Daily Rate
Correct Answer
A. $107.78
Explanation
The average daily rate is calculated by dividing the net rooms revenue by the number of rooms sold. In this case, the net rooms revenue is $48,500 and the number of rooms sold is 450. Dividing $48,500 by 450 gives us an average daily rate of $107.78.
8.
Based on the following data, calculate the ratios in questions 6 through 10.
Number of rooms available for sale: 500
Number of rooms sold: 450
Number of guests: 605
Rack rate (same for singles and doubles): $125
Net rooms revenue: $48,500
Revenue per Available Room
Correct Answer
A. $97
Explanation
The Revenue per Available Room (RevPAR) is calculated by dividing the net rooms revenue by the number of rooms available for sale. In this case, the net rooms revenue is $48,500 and the number of rooms available for sale is 500. Therefore, the RevPAR is $97 ($48,500 / 500 = $97).
9.
Based on the following data, calculate the ratios in questions 6 through 10.
Number of rooms available for sale: 500
Number of rooms sold: 450
Number of guests: 605
Rack rate (same for singles and doubles): $125
Net rooms revenue: $48,500
Average Rate per Guest
Correct Answer
A. $80.17
Explanation
The average rate per guest is calculated by dividing the net rooms revenue by the number of guests. In this case, the net rooms revenue is $48,500 and the number of guests is 605. Dividing $48,500 by 605 gives us an average rate per guest of $80.17.
10.
Based on the following data, calculate the ratios in questions 6 through 10.
Number of rooms available for sale: 500
Number of rooms sold: 450
Number of guests: 605
Rack rate (same for singles and doubles): $125
Net rooms revenue: $48,500
Yield Statistic
Correct Answer
A. 78%
Explanation
The yield statistic is calculated by dividing the net rooms revenue by the potential revenue. In this case, the net rooms revenue is $48,500 and the potential revenue can be calculated by multiplying the number of rooms available for sale (500) by the rack rate ($125). Therefore, the potential revenue is $62,500. Dividing the net rooms revenue by the potential revenue gives us a yield statistic of 78%.