Hospitality Flashcards

Questions and Answers

Franchising hotels began in 1907 with?

Ritz-Carlton (correct)

Marriott

Hyatt

Hilton

Who developed the world's largest lodging enterprise due to a disappointing experience while traveling with family?

Kemmons Wilson

Franchising allows hotels to do what?

Expand rapidly using other people’s money

How did Motel 6 get its name?

The original cost of a room was $6 Signup and view all the answers

Franchisee benefits include all of the following except?

Discount franchise fees Signup and view all the answers

Increased market share and recognition is a benefit to the franchise company.

True Signup and view all the answers

Franchisee drawbacks include all except which of the following?

Low franchise fees Signup and view all the answers

Why did management contracts become popular in the 1970s?

Little or no up-front or equity was required Signup and view all the answers

What is the business transaction called when Marriott builds a hotel and sells it to a banking firm for operation?

Management contract Signup and view all the answers

In this type of 'ownership', investors do not pay corporate income tax but distribute the majority of net income to shareholders.

REIT Signup and view all the answers

Two organizations that rate and classify hotels are Forbes Travel Guide and?

American Automobile Association Signup and view all the answers

Hotels classified by location might include?

All of the above Signup and view all the answers

Hotels classified by price would include?

Budget Signup and view all the answers

Hotels classified by the level of service would include?

All of the above Signup and view all the answers

Casino hotels are different from other hotels because they?

Make more money from gaming than rooms Signup and view all the answers

Economy or budget hotels became popular by focusing on?

Selling beds, not meals or meetings Signup and view all the answers

Vacation Ownership began in the French Alps in the 1960s. What is its classification?

One of the fastest growing segments of U.S. travel and tourism Signup and view all the answers

Fairmont Hotels and Resorts are leaders in the sustainable lodging movement, also known as?

Green Partnership Program Signup and view all the answers

The main function of a hotel is to?

Provide an outstanding lodging experience Signup and view all the answers

The executive committee of a hotel is comprised of?

Key associates who head major departments Signup and view all the answers

To be an effective general manager of a hotel, the manager should exhibit all of the following traits except?

Computer programming skills Signup and view all the answers

Study Notes

Franchising Hotels

Franchising hotels began in 1907 with the Ritz-Carlton.
Rapid expansion of hotels is achieved through franchising, utilizing funds from others.

Key Figures in Hospitality

Kemmons Wilson created the world’s largest lodging enterprise after a negative family travel experience.

Motel 6

The name Motel 6 originated from the original room rate of $6.

Franchisee and Franchise Company Benefits

Franchisees do not benefit from discounted franchise fees.
Franchise companies gain increased market share and recognition.

Management Contracts

Management contracts surged in popularity during the 1970s due to minimal upfront investment requirements.
An example of a management contract: Marriott builds a hotel for $34 million, sells it for $52 million, and retains 2-4% gross revenue from operations.

REITs

Real Estate Investment Trusts (REITs) allow investors to avoid corporate income tax while distributing most net income to shareholders and being publicly traded.

Hotel Classification

Rating and classification organizations include Forbes Travel Guide and the American Automobile Association.
Hotels can be classified by location: city, resort, airport, or freeway.
Price classifications of hotels include luxury, all-suite, economy, and budget.
Levels of service classify hotels as full service, extended stay, or limited service.

Casino Hotels

Casino hotels generate more revenue from gaming activities than from room sales.

Economy Hotels

Economy or budget hotels gained popularity by focusing on selling beds rather than meals or meeting spaces.

Vacation Ownership

Vacation ownership started in the French Alps during the 1960s and is one of the fastest-growing segments in U.S. travel and tourism.

Sustainable Practices

Fairmont Hotels and Resorts lead in sustainable lodging through the green partnership program.

Hotel Operations and Management

The primary function of a hotel is to deliver an exceptional lodging experience.
The executive committee consists of key associates who oversee major departments.
Successful hotel general managers should not necessarily possess computer programming skills.

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Description

Test your knowledge on the history and key concepts of the hospitality industry with these flashcards. Learn about franchising, influential figures, and the origins of popular hotel brands. Perfect for students or professionals in the hospitality field.