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business
introduction to management accounting
Questions and Answers of
Introduction To Management Accounting
What is meant by dietary schizophrenia? What do you think of the way the industry is responding to it?
Which of the consumerist issues discussed in this chapter have you encountered as a customer or employee of food service? What are your views on these issues?
What is the status of landfill availability and cost in your community? What is its outlook? What is the outlook for recycling and composting in your area?
What are some of the steps that you think a restaurant operator can take to help with some of the solid-waste problems?
Using as an example an operation with which you are familiar, describe the steps necessary to make recycling possible in that unit.
What problems hinder the use of technology? What technological innovations do you think operations should be seeking?
Site name: Center for Science in the Public Interest URL: www.cspinet.org Background information: The Center for Science in the Public Interest (CSPI) is a nonprofit education and advocacy
Site name: CSPI Alcohol Policy URL: www.cspinet.org/alcohol/index.html Background information: In 1981, the CSPI launched the Alcohol Policies Project to help focus public and policy-maker attention
Site name: Center for Consumer Freedom URL: www.consumerfreedom.com Background information: The Center for Consumer Freedom is a nonprofit coalition of restaurants, food companies, and consumers
Site name: Centers for Disease Control and Prevention URL: www.cdc.gov/foodsafety/Background information: The Centers for Disease Control and Prevention (CDC)is one of the 13 major operating
Site name: News search engines/sources URL: Google—www.google.com; Bing—www.bing.com; Yahoo!—www.yahoo.com Background information: All the major search engines have a “News” tab that can be
Describe the evolution of lodging, and relate it to changing patterns of transportation, destinations, and guest needs.
Identify the five criteria for classifying hotels, and name the types of hotels in each classification.
Describe the principal customer types served by the hotel industry.
Identify the needs and preferences of business travelers, and provide examples of how the lodging industry accommodates them.
Describe how AAA and the Forbes Travel Service evaluate lodging properties, and identify criteria used in determining these ratings as well as describe how countries around the world approach the
How does transportation affect the hotel business?
What travel trends are favorable to lodging? What ones are not? What do you think will be the best market segments for lodging in your community?
What are some means for hotel companies to increase sales to international travelers?
Of the hotels in your community, how would you characterize them in terms of type of lodging?
Identify hotels with which you are familiar. If you were a hotel rater, how would you rate these properties (one to five stars and/or diamonds) and why? What criteria would you use in determining
If you were going to work in a hotel, what type of property would be of most interest to you as a potential employee? Why?
Site name: The American Hotel & Lodging Association (AH&LA) URL: www.ahla.com Background information: Serving the hospitality industry for nearly a century, AH&LA is the sole national association
Site name: Marriott URL: www.marriott.com Background information: Marriott International, Inc., is a leading worldwide hospitality company. Its heritage can be traced to a root beer stand opened in
Site name: Forbes Travel Guide URL: www.forbestravelguide.com Background information: Since inventing the Five-Star rating system in 1958, Forbes Travel Guide (formerly Mobil Travel Guide) has
Site name: InterContinental Hotels Group URL: www.ichotelsgroup.com Background information: InterContinental Hotels Group PLC is the world’s largest hotel group by number of rooms. InterContinental
Name the major functional departments in a hotel, and explain the relationships that exist among them.
Understand the various roles required in the front office as well as the importance of yield management.
Explain why the food and beverage department, although not the principal source of profit, can be very important to a hotel’s success.
Identify a hotel’s support departments and the importance they play in daily operations.
List the principal sources of income and expense by department according to the uniform system of accounts for hotels.
Outline a potential career path that leads to filling the role of general manager.
How does the organizational structure differ in large hotels and small ones?
Describe some of the duties of the morning clerk, the afternoon clerk, and the night auditor.
How is technology being utilized to provide greater hotel security for guests?
What are the benefits of a property management system? How does it make the front office run more smoothly?
What is the purpose of yield management? What problems does it pose?
Describe the different kinds of restaurants that a large hotel might have.
What are the advantages of the sanitation and stewarding area for a summer job?
What are typical departmental expenses for the rooms division and for the food and beverage division of a full-service hotel?
What are capital costs? How important are they in hotels?
Site name: Lodging magazine URL: www.lodgingmagazine.com Background information: Lodging magazine profiles leaders driving hospitality to new heights, designers breaking the mold, and general
Site name: HOTELS magazine URL: www.hotelsmag.com Background information: This publication serves the worldwide hotel market in 170 countries. HOTELS magazine covers the 100-room hotels in the
Site name: Hotel Property Management Systems URL: Google—www.google.com Bing—www.bing.com Yahoo!—www.yahoo.com Background information: Hotel property management systems improve operational
Explain the cyclical nature of the hotel industry along with terms such as RevPAR and issues pertaining to securitization.
Understand the decisions relating to investing in a hotel, including interest rates, inflation, contractual issues, and asset management.
How does the hotel business react to the business cycle? Explain why hotel building continues after demand turns down.
What does securitization mean? How is it affecting the hotel business?
What have been the major effects of securitization on competitive conditions in lodging?
What do the acronyms CMBS, REIT, C corps, and IPO stand for? Describe the role of each as they pertain to the lodging industry.
What is mezzanine financing, and what are some of its advantages?
What are the hazards of public ownership?
What is RevPAR, and what can positively or negatively impact it?
What are the main elements of a hotel investment decision?
Has segmentation contributed to encroachment? What are the effects of encroachment?
Why did hotel management companies come into existence?
What is the importance of asset management to lodging owners?
Site name: Hotel Online URL: www.hotel-online.com Background information: Hotel Online is the hospitality industry’s online meeting place, providing the latest and most relevant news, trends,
Site name: Starwood Hotels & Resorts Worldwide, Inc.URL: www.starwood.com Background information: Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the
Site name: HVS URL: www.hvs.com Background information: HVS provides hotel, motel, and resort management; consulting services; oversight and asset management; receivership services; and technical and
Site name: Kevin Regan’s Testimony before the Committee on Homeland Security and Governmental Affairs URL: hsgac.senate.gov/public/index.cfm?FuseActionFiles.View&FileStore_id9f505192-a
Identify the five conditions of competition in lodging, and explain their effects on the hotel business.
Explain how the four Ps of the marketing mix are applied in lodging competition.
Describe the upstairs-downstairs segmentation in the lodging industry and how it meets the differing needs of customers.
Describe and provide examples of how hotels differentiate themselves through the variety and mix they provide in food service options and other services and amenities.
List the strengths and weaknesses of the use of yield management in the hotel business.
Describe the effects on lodging of travel intermediaries and distribution channels.
Describe the impact of the Internet on the hotel industry.
Explain how partnerships and frequent-guest programs operate and why they are important to marketing the lodging industry.
What are some of the conditions of competition in the hotel business? What is their impact?
What is the difference between the upstairs and downstairs markets?
What is the role of food service in lodging? Why have some segments chosen to reduce or eliminate their food services?
What means of differentiation other than food service were discussed in the text?What is your assessment of the effectiveness of each?
What is meant by low variable cost in the lodging industry?
Describe what yield management is. Discuss the pros and cons of yield management.
What is meant by channels of distribution? What are the established channels for hotels? What are the new channels? What is the outlook for travel intermediaries in lodging?
What is the impact of partnerships on hotel marketing?
What are several of the advantages that have been provided to hotels through the Internet? What are several of the disadvantages that hotels have experienced because of the Internet?
Site name: Choice Hotels URL: www.choicehotels.com Background information: Choice Hotels International is one of the largest and most successful lodging franchisors in the world with over 5,000
Site name: Four Seasons Hotels and Resorts URL: www.fourseasons.com Background information: As one of the world’s leading operators of luxury hotels and resorts, Four Seasons currently manages over
Describe the important impact of tourism on local and national economies, and list the factors contributing to the growth of travel and tourism.
Identify current trends in mode of travel and trip duration.
Provide statistics supporting the importance of tourism in generating employment.
Explain why international visitors to the United States are an important means of improving the balance of payments and receipts, and how tourism affects international trade.
Identify major businesses outside the hospitality industry that service travelers, and explain the trends that are changing the way they do business.
List the noneconomic impacts of tourism, both positive and negative.
What is tourism, and which organizations does it include?
What are some of the factors that have caused the increase in tourism?
What are the main reasons that people travel?
Which age groups travel most, and what kinds of trips does each group take?
What are the recent trends in automobile and airline travel, and what are their causes?
Is tourism important economically to the United States? Explain.
What factors account for the improvement in the U.S. travel trade balance? What could threaten the favorable balance?
What are the relative advantages of hub-and-spoke and point-to-point airline systems?How does each work? Give examples of airlines that rely on each type of system.
Describe some of the favorable and unfavorable noneconomic effects of tourism.
Site name: eTurboNews URL: www.eturbonews.com Background information: Since the launching of eTurboNews in April 2001, readership has increased from 26,000 of mostly U.S. subscribers to more than
Site name: Orbitz URL: www.orbitz.com Background information: Orbitz is an online travel company offering leisure and business travelers a wide selection of low airfares as well as deals on lodging,
Site name: Priceline.com URL: www.priceline.com Background information: Priceline.com is a travel service where you can choose your exact flights and times or name your own price and save even
Site name: U.S. Department of State URL: www.state.gov Background information: The Department of State leads the United States in its relationships with foreign governments, international
Site name: World Tourism Organization (WTO)URL: www.world-tourism.org Background information: The World Tourism Organization is a specialized agency of the United Nations and is the leading
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