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Supplier Relations & Vendor Management Flashcards

7 cards from real CTP practice questions. Tap to flip, then mark Knew It or Still Learning โ€” missed cards come back until you master them.

Read the first 7 Supplier Relations & Vendor Management flashcards as text
  1. When negotiating hotel contracts for group tours, which clause protects a tour operator if the property undergoes significant renovation during the tour dates?

    Answer: Quiet enjoyment clause

    A quiet enjoyment clause guarantees guests will not be disturbed by construction or renovation activities during their stay, protecting the tour operator's experience delivery.

  2. A tour operator books 40 hotel rooms but only 30 guests show up. The hotel charges for 36 rooms per the contract. What contract provision caused this charge?

    Answer: Attrition clause

    An attrition clause requires the tour operator to pay for a minimum percentage (often 80-90%) of contracted rooms even if actual pickup falls short.

  3. Which type of supplier agreement gives a tour operator the right to sell inventory without paying until after a booking is confirmed?

    Answer: Free-sale agreement

    A free-sale agreement allows the tour operator to sell supplier inventory on demand without pre-purchasing, with payment due only upon confirmed bookings.

  4. What is the primary purpose of maintaining a preferred supplier list in a tour operation?

    Answer: To ensure consistent quality and negotiate better rates through volume

    Preferred supplier lists consolidate purchasing power with reliable vendors, enabling tour operators to negotiate volume discounts and ensure consistent service quality.

  5. A certified tour professional receives an undisclosed commission from a local restaurant for directing tour groups there. This practice is best described as:

    Answer: A kickback that violates ethical supplier relations

    Undisclosed commissions or kickbacks from suppliers represent a conflict of interest and violate ethical standards in tour professional conduct.

  6. When evaluating a new ground transportation vendor, which factor should a CTP prioritize above all others for group safety?

    Answer: Driver licensing, insurance coverage, and safety record

    Proper driver licensing, adequate insurance coverage, and a clean safety record are the foundational criteria for any ground transportation vendor handling tour groups.

  7. A tour operator commits to purchasing a block of 200 airline seats six months in advance at a fixed price. This is an example of:

    Answer: Bulk air contract

    A bulk air contract involves purchasing a fixed block of seats from an airline in advance at a negotiated net rate, with the tour operator assuming risk if seats go unsold.