ROOMSDIV- MIDTERMS

Question 1

eight (8) revenue streams:

Answer 1

1. packages
2. corporate
3. OTA (online travel agencies)
4. FIT (Foreign independent Travelers) Wholesale
5. Long staying Guests
6. Individual Others
7. Group

Question 2

bundled deals offered by hotels that include accommodation along with additional services or amenities

Answer 2

packages

Question 3

these are designed to enhance the guest experience
- provides a combination of services at a discounted or promotional rate compared to booking each service separately.

Answer 3

packages

Question 4

ex.
4 night stay with breakfast and dinner for PHP 20,000

Answer 4

packages

Question 5

bookings made by business clients, companies, or organizations for their employees or
guests.

Answer 5

corporate

Question 6

this is usually negotiated and discounted based on the volume of bookings the company is expected to make over time.

Answer 6

corporate

Question 7

three (3) characteristics of corporate bookings

Answer 7

• negotiated rates
• value-added services
• flexible policies

Question 8

a characteristics wherein hotels often provide special rates to companies based on their expected number of room nights or the frequency of bookings. These rates are typically lower than standard rates.

Answer 8

negotiated rates

Question 9

characteristic wherein corporate bookings might
include additional amenities like free Wi-Fi, complimentary breakfast, access to business centers, or meeting room facilities.

Answer 9

value-added services

Question 10

a characteristics wherein companies require more flexible booking and cancellation policies to accommodate changes in travel plans.

Answer 10

flexible policies

Question 11

bookings made through third-party online platforms like Booking.com, Expedia, Agoda, or similar websites.

Answer 11

OTA

Question 12

these platforms allow guests to search for and book hotel rooms, often at competitive rates, from a wide selection of hotels.

Answer 12

OTA

Question 13

three (3) characteristics of OTA bookings:

Answer 13

• wide reach
• commission-based model
• flexible pricing

Question 14

these provide a vast marketplace for
hotels,

Answer 14

wide reach

Question 15

Hotels typically pay a commission to the OTA for each booking made through their platform. This commission can range from 10% to 25% of the booking value.

Answer 15

commission-based model

Question 16

Hotels can adjust their rates dynamically on these platforms to remain competitive and attract more bookings.

Answer 16

flexible pricing

Question 17

Bookings made by travelers who arrange their trips independently rather than as part of a pre-arranged group or tour.

Answer 17

FIT Wholesale

Question 18

These travelers typically book their hotel stays through travel agents or wholesalers that offer discounted rates for longer stays or larger volumes.

Answer 18

FIT wholesale (foreign independent travelers)

Question 19

three (3) characteristics of FIT wholesale:

Answer 19

• discounted rates
• flexibility
• partnership with travel agencies

Question 20

the rates are usually lower than standard room rates, as they are often negotiated in bulk by travel agents or wholesalers.

Answer 20

discounted rates

Question 21

have more control over their travel plans, allowing them to customize their stay according to their preferences.

Answer 21

flexibility

Question 22

Hotels partner with travel agencies or tour operators to reach a wider audience of independent travelers.

Answer 22

partnership with travel agencies

Question 23

refers to hotel guests who stay for an extended period, typically longer than the average guest.

Answer 23

LSG

Question 24

• These guests usually book rooms for a week, a month, or even longer.
• they provide a steady source of revenue and help maintain occupancy rates over a longer time.

Answer 24

LSG

Question 25

for LSG, a stay is considered a long stay if it lasts ___.

Answer 25

7 nights or more 14 nights or 30 nights (extended- stay properties)

Question 26

characteristics of LSG:

Answer 26

- extended duration (min stay is 7 nights) - discounted rates (incentive for extended stay) - value-added services (additional amenities)

Question 27

VC (50%) is often referred to as:

Answer 27

visitor commission

Question 28

Revenue split with partners or commissions with the hotel retaining 50% of the revenue. ex. ₱10,000 booking with 50% retained by the hotel.

Answer 28

VC (50%)

Question 29

Revenue generated from bookings made for groups of guests, often for specific events or purposes.

Answer 29

groups

Question 30

these often come with negotiated rates and special arrangements, which differ from standard individual bookings.

Answer 30

groups

Question 31

- handled as a unit to simplify reservation, pricing, and billing processes - represents a significant portion of the hotel's revenue due to the volume of rooms reserved.

Answer 31

groups

Question 32

booking is usually classified as a group booking when it involves ___

Answer 32

5- 10 or more rooms

Question 33

- refers to a miscellaneous category in hotel revenue - income from various guest-related services that do not fall under the main revenue streams.

Answer 33

individual others

Question 34

characteristics of individual others:

Answer 34

- additional service (include charges for services requested) - incidental fees (fees for parking and late check-out) - one-time revenue

Question 35

This category under individual others often represents one-time or occasional revenue that is not directly tied to room occupancy.

Answer 35

one-time revenue

Question 36

these are expenses that change directly in proportion to the level of business activity or guest occupancy in a hotel.

Answer 36

variable costs

Question 37

- these costs increase when the hotel is busier (higher occupancy) and decrease when the hotel is less occupied.

Answer 37

variable costs

Question 38

seven (7) variable cots in a hotel

Answer 38

1. housekeeping & cleaning supplies 2. laundry and dry cleaning 3. utilities 4. f&b costs 5. operating supplies 6. COGS for minibar and gift shops 7. guest transportation services

Question 39

Revenue remaining after variable costs, covering fixed costs and profit.

Answer 39

contribution margin analysis

Question 40

a financial metric used to evaluate how much revenue remains after deducting variable costs from sales.

Answer 40

contribution margin analysis

Question 41

the remaining amount in the margin analysis is called

Answer 41

contribution margin

Question 42

- contributes to covering the fixed costs and generating profit for the business - vital tool in understanding the profitability of a hotel’s Rooms Division or any business operation.

Answer 42

contribution margin

Question 43

a crucial financial tool that helps hotels and businesses understand the relationship between costs, pricing, and profitability.

Answer 43

contribution margin analysis

Question 44

in contribution margin analysis, this helps determine how much money from each unit of sale contributes to covering fixed costs and profits.

Answer 44

profitability assessment

Question 45

Aids in setting prices that cover both variable costs and fixed costs while ensuring a profit margin.

Answer 45

pricing decisions

Question 46

Allows managers to identify areas where cost reductions are possible without affecting product quality or customer satisfaction.

Answer 46

cost control

Question 47

Used to calculate where total revenue equals total costs, meaning the business neither makes a profit nor a loss.

Answer 47

break-even analysis