Hospitality Management & Operations Flashcards

A hotel's RevPAR dropped 12% year-over-year despite stable occupancy. What is the most likely cause?

Answer: Decreased Average Daily Rate (ADR)

RevPAR = Occupancy × ADR, so if occupancy is stable but RevPAR falls, ADR must have declined.

Under the Fair Labor Standards Act (FLSA), which hospitality workers are typically exempt from overtime pay requirements?

Answer: Salaried managers earning above the federal threshold

Salaried employees performing executive, administrative, or professional duties above the federal salary threshold are exempt from FLSA overtime provisions.

Which inventory control method is most appropriate for perishable food items in a hotel restaurant?

Answer: FIFO (First In, First Out)

FIFO ensures older perishable stock is used before newer stock, reducing spoilage and waste.

A convention hotel charges $45 per person for a coffee break package. If 200 attendees are expected and actual food cost is 28%, what is the projected food cost?

Answer: $2,520

Total revenue = 200 × $45 = $9,000; food cost = $9,000 × 0.28 = $2,520.

What does the term 'comp set' refer to in hotel competitive analysis?

Answer: A group of comparable competitor hotels used for benchmarking

A competitive set (comp set) is a defined group of similar hotels used to compare performance metrics like occupancy and ADR.

During a fire emergency in a hotel, what is the FIRST priority for all staff?

Answer: Guest and staff evacuation and safety

Life safety is always the first priority in any emergency; evacuation must begin immediately before any administrative actions.

Which scheduling approach helps a hotel minimize labor costs while maintaining service levels during unpredictable demand periods?

Answer: Flex staffing or cross-training employees

Flex staffing and cross-training allow managers to deploy staff where needed most, optimizing labor costs against variable demand.