HOTS Problem Solving Questions
Please read the following scenario and answer the questions below. Mark only one option for each question.
Hotel Royale has experienced a drop of business over the last year resulting is a loss of $500,000. The General Manager is very concerned and has asked for your advice to assist in improving the hotel’s profit in a number of areas of the hotel operations.
6. In order to improve the hotels profit, I would first recommend to:
- Increase the room rate
- Decrease the number of staff
- Decrease expenses
- Evaluate the target markets and hotel product
- Increase advertising
7. Which are the two key components of revenue management…
- Monitoring rates and monitoring room sales
- Allowing overbooking and managing late bookings
- Discounting rooms and offering packages
- Forecasting and monitoring rooms sales
- Monitoring expenses and revenue
8. The Marketing Manager’s responsibility is to…
- Manage front office operations
- Promote and advertise the hotel
- Discount the hotel to sell more rooms
- Monitor room occupancy
- Implement sustainability initiatives
9. Revenue management is important because…
- Hotel rooms are perishable
- The hotel needs to make a profit
- Hotels can increase their inventory
- Customers book in advance
- Rates constantly change
10. If the General Manager decides to sack staff, what is the most important possible outcome…
- A reduction in expenses
- A reduction in service quality
- A reduction in staff turnover
- A reduction in staff training
- A reduction in occupancy
11. Which of the following occurred to Hotel Royale’s Balance Sheet when their conference centre was built last year?
- Their expenses increased
- Their short term debt increased
- Their total assets increased
- Their revenue increased
- Their staffing increased
12. This month, Hotel Royale has $200,000 cash as bank, $100,000 in accounts payable and $50,000 in accounts receivable, how much money does the hotel have at the end of the month?
- These problem solving questions are intended to test cognition prior to the simulation and are specific to each simulation.