12 Operational Finance

What is the term which represents the highest possible rate a guest may be charged for a room?

• Highest rack rate

• Highest room rate

• Rack Rate

• Room Rate

The financial goal of any hotel is to:

• Create guest loyalty

• Have great customer ratings

• Have great customer service

• Make a profit

The rooms division is responsible for producing revenue from the sale of guestrooms.

• True

• False

Larger hotels are not concerned with measuring the profitability of the food and beverage department.

• True

• False

The front office employees who book guestrooms will be asked for discounted room rates and must know when and how to apply those lower rates.

• True

• False

Not all areas or departments in a hotel generate revenue. Some departments are considered revenue centers while others are considered cost centers. In the exercise bellow, indicate if the department is either a revenue or cost center.

Which is SECURITY?

• Cost Center

• Revenue Center

Not all areas or departments in a hotel generate revenue. Some departments are considered revenue centers while others are considered cost centers. In the exercise bellow, indicate if the department is either a revenue or cost center.

Which are the FITNESS & RECREATION FACILITIES?

• Cost Center

• Revenue Center

Not all areas or departments in a hotel generate revenue. Some departments are considered revenue centers while others are considered cost centers. In the exercise bellow, indicate if the department is either a revenue or cost center.

Which are the ROOMS?

• Cost Center

• Revenue Center

Not all areas or departments in a hotel generate revenue. Some departments are considered revenue centers while others are considered cost centers. In the exercise bellow, indicate if the department is either a revenue or cost center.

Which is the FACILITIES MANAGEMENT & ENGINEERING DEPARTMENT?

• Cost Center

• Revenue Center

Not all areas or departments in a hotel generate revenue. Some departments are considered revenue centers while others are considered cost centers. In the exercise bellow, indicate if the department is either a revenue or cost center.

Which is the SALES DEPARTMENT?

• Cost Center

• Revenue Center