Exam Information
for
CFS-171 -- Intro. to Hospitality Mgt.


General Information for All Exams

Exam 4

The exam will cover:
  • Study Questions -- The following questions will help you study for the exam. You will need to know more than just these questions, however.

    Chapter 11
    1. How does the lifetime of a new hotel and the cycle of hotel building interrelate?
    2. How soon after the economy changes direction does the demand for hotel rooms change?
    3. What contributes to hotel overbuilding?
    4. What sets off overbuilding in the hotel industry?
    5. What characterized the 11 year cycle ending in 1993 with regard to building?
    6. The hotel cycle is also called the ______.
    7. What does securitization refer to?
    8. What has been a major change in hotel financing?
    9. What are conduit lenders?
    10. What is mezzanine financing?
    11. What is a CMBS?
    12. What is an REIT?
    13. What are the problems with REIT financing in the hotel industry?
    14. What are C-Corps?
    15. In the 1990's funds raised from public sources for hotel development decreased, increased, stayed the same ?
    16. What characterized M&A activity in the 1990's?
    17. What was characteristic of M&A activity of REITs in the 1990s.
    18. What are the potential problems associated with publically held hospitality companies?
    19. When is investment in hotels attractive?
    20. What does it mean when a hotel is highly leveraged?
    21. How do individuals obtain tax savings on hotel investments?
    22. Why are hotel investments in inflationary times advantageous?
    23. How does the real estate component of the hotel business important to profitability?
    24. When does hotel segmentation that results in a company franchising more than one property in an area appeal to real estate developers?
    25. What does "encroachment" refer to?
    26. Why are franchise agreements written with specific geographic protection?
    27. What is the written agreement called between a hotel management and the hotel owner?
    28. For whom do hotel chains serve as hotel management companies?
    29. The essence of lodging finance is that lodging is _______ ________ and __________.
    30. What was the factor that brought huge amounts of public investment funds into the lodging industry?
    Chapter 12
    1. What is the framework for the analysis of competition in the hospitality industry?
    2. What characterizes a fragmented hotel industry?
    3. What characterized the hotel industry in the late 1990's?
    4. Growth in the lodging industry has its best prospects in which sector of the industry?
    5. What does the "low variable cost" of a hotel room mean?
    6. What does securitization in the hotel industry mean?
    7. Is the hotel industry highly competitive, somewhat competitive, non-competitive or monopolistic?
    8. What is the lodging product?
    9. What causes hotel prices to change on within the same day?
    10. How is the lodging industry promoted?
    11. What does the marketing strategies and tactics focus on today?
    12. What is a "target" market?
    13. What is the "downstairs" market?
    14. What is the "upstairs" guest interested in?
    15. In addition to the guest room, what is the "downstairs": guest interested in?
    16. What type of guest is food service more important to?
    17. In terms of food service, what do limited service properties typically provide?
    18. What are the major disadvantages of leasing a hotel's food service?
    19. What are the benefits of having franchised brand name restaurants in lodging operations?
    20. What is the most difficult service to copy in hotels?
    21. What is the benefit of a good restaurant in a hotel to the owners of the hotel?
    22. Why are services such as superfloors and other amenities introduced in hotels?
    23. What do business centers in the hotel industry provide to guests?
    24. What is the major influence on setting price boundaries in the hotel industry?
    25. What is yield management in the hotel industry and how does it work?
    26. What is the complex system of providing information and reservation services to travelers?
    27. What type of advertising do franchisers of hotels uses for their chains?
    28. What type of advertising are activities such as frequent traveler programs/
    29. What is the purpose of frequent stay programs in the hotel business?
    30. What is the purpose of guest data bases?
    Chapter 13
    1. What percentage of restaurant sales is attributed to tourism?
    2. What is a "person trip"?
    3. What is the most common mode of tourist travel in the United States?
    4. What factors have contributed to the growth of tourism
    5. Today, families take long or short, expensive or inexpensive vacations?
    6. What age group travels the most?
    7. What role does demographics play in tourism -- who travels most frequently?
    8. Why do people travel -- what is the most frequent reason?
    9. Why do people travel now more than they have in the past?
    10. What is a recent vacation trend among younger travelers?
    11. What is the economic significance of tourism?
    12. What is the tourism multiplier effect?
    13. How much has the number of foreign visitors to the U.S. increased over the last 20 years?
    14. How is international tourism measured?
    15. Why has the U.S. become an important international destination
    16. What is a "hub and spoke" system in the airline industry?
    17. What is the result of discounted airfares?
    18. What is the "load factor" in the airline industry?
    19. What is a negative "travel gap"?
    20. What does the "carrying capacity" of an area mean?
    21. What is the definition of a travel agency?
    22. What factors influence the growth of tourism?
    23. What businesses and organizations serve the tourism industry?
    24. Has travel growth resulted more from pleasure travel or business travel?
    25. In what ways have women changed the tourism industry?
    26. How does tourism rank against other retail industries?
    27. What are "available seat miles" in the airline industry?
    28. In the 1990's what kind of vacation became increasingly popular
    29. What characterizes travel for dual income families
    30. Why might business travelers be charged more for an airline ticket than pleasure travelers?

    Date last Modified: March 28, 2007
    All contents copyright (c) 1999 - 2007
    Richard F. Patterson