Intro to Hospitality Management Exam 1

Hospitality
Comes from the french term hospice, meaning “to provide care/shelter for travelers.”
There was a rapid development of hotels, motels, fast food, and coffee shops after World War II
True
Moment of Truth
An expression used to describe a guest and an associate meeting – as when a guest walks into a restaurant
Managed Services
Foodservices are provided for airlines, military facilities, schools, health care operations, business and industry
Hotel Business
Provides career opportunities to associates to help make reservations, greet, assist, and serve guests
Restaurant Business
Fulfills guests’ diverse needs and wants
Empowerment
Turning over decision-making responsibilities and authority to front-line employees
Sustanibility
The ability to achieve continuing economic prosperity while protecting the natural resources of the planet and providing a high quality of life for its people and future generations
Henry Flaggler
The Breakers
External Customer
Their satisfaction ultimately measures a company’s success, since they are the people who are willing to pay for a company’s services
Internal Customers
The people inside any company who receive or benefit from the output of work done by others in the company
CHRIE
The global advocate of hospitality and tourism education
NRA
National Restaurant Association
AH&LA
American Hotel & Lodging Association
ISES
International Special Events Society
PCMA
Professional Convention Management Association
NSMH
National Society of Minorities in Hospitality
Back of the House
The area in a hospitality establishment that guests usually do not view, including all areas responsible for food quality and production, such as the kitchen and recieving, office, and storage areas
Front of the House
The area in a hospitality establisment that guests view, such as the entrance and dining room
Tourism
World’s largest industry
Benefits of Tourism
Provides governments with substantial tax revenues and offers the greatest global employment prospects
The Five Ages of Tourism
Pre-industrial, the railway age, the automobile age, the jet aircraft age, and the cruise ship age
Top Rental Car Company
Enterprise
Airline Alliances
Allow them access to each other’s “feeder markets” and to resources that enable them to flourish in what will ultimately be a worldwide deregulation
The Hub and Spoke System
Has two main benefits: airlines can service more cities at a lower cost, and airlines can maximize passenger loads from small cities, thereby saving fuel
The Multiplier Effect
A chain reaction of additional income and purchases that results in total purchases that are greater than the initial increase in purchases.
Ecotourism
A form of tourism that supports the conservation and sustainable development of ecologically unique areas
ARC
Airlines Reporting Corporation; the entity that authorizes an agent to act on behalf of an airline and sell airline tickets
Thomas Cook
Opened the first travel agency in the United Kingdom
Three most prominent states that require some sort of licensing
Florida, California, and Washington
Errors and Omission Insurance
A type of insurance that indemnifies professionals if they make an error in their profession or if they omit something important from their analyses.
Civil Aeronautics Board
a federal government agency based in Washington that had the right to tell an airline where it could fly and how much it could charge.
Two airlines allowed to fly international
Transworld Airlines and Pan American World Airlines
Code share arrangements
allows carriers, both domestic and foreign, to carry passengers on each others aircraft and also show multiple designations for particular flights
franchising
concept that allows a company to expand more rapidly by using other peoples money than if it had to acquire its own financing
management contracts
little or no up-front financing or equity is involoved
Transient Occupancy Tax
the bed tax
yield management
a percentage of guests who book and send in a deposit in advance will be able to secure a room at a more reasonable price than someone booking a room with just three days notice
night auditer
waits until the hotel quiets down at about 1:00 am and then begins the task of balancing the guests account receivables
REVPAR
revenue per available room, calculated by dividing room revenue by the number of rooms available
Smith travel report
publisher of the STAR reports, a benchmarking suite that tracks one hotels occupancy, average daily rate, and REVPAR against a competitive set of hotels
average daily rate
room revenue divided by number of rooms sold
room occupancy percentage
how many rooms are occupied that night
capture rate
restaurants basis for forecasting the number of expected guests