GLOBAL GROUP OF INSTITUTES, AMRITSAR

Department of hotel management

FRONT OFFICE FOUNDATION II Semester 2nd
Subject code: BHMCT-205-18

Model Test Paper 1

Time allowed: 3hrs Max Marks: 60

Instructions to candidate:
1. Section A is compulsory. Consisting of TEN questions carrying 2 marks each
2. Section B contains FIVE questions carrying 5 marks each & student have to attempt any 4
questions
3. Section C contains THREE questions carrying 10 marks each & students have to attempt any 2
questions

Section A
1. Explain the following terms in one or two sentences:

a) CVGR

ANS) A Company volume guaranteed rate ( CVGR) letter is offered by the Hotel to a
company to use the hotel services, and also to offer a special discounted rate for this high
volume bookings agreed by this company.

b) Skipper

ANS) The guest has left the hotel without making arrangements to settle his or her account.
Sleeper: The guest has settled his or her account and left the hotel, but the front office staff
has failed to properly update the room's status.

c) C form

ANS) C Form is designed for collecting prerequisite information of foreigner guest whose
accommodation is made in hotel. This is indeed requirements for security points of view. Its
one copy must be submitted at the FRRO (foreign regional registration office). ... Name
of Hotel: Full Name of Foreign Visitor

d) Travel agencies
ANS) It is a person whose job it is to arrange travel for end clients (individuals, groups, corporations)
on behalf of suppliers (hotels, airlines, car rentals, cruise lines, railways, travel insurance, package
tours). ... Although booking a hotel/ a trip etc.

e) Demo pension
ANS) It is an arrangement whereby a guest or resident pays, usually at a fixed rate, for
room, breakfast, and one other daily meal offered in a hotel or boardinghouse; half

f) SOP
ANS) A Standard Operating Procedure (SOP) is a set of written instructions that document
a routine or repetitive activity followed by a Hotel. SOP helps in maintaining quality and
consistency of service and standard's in your hotel. ... It is a must that all newly
recruited hotel staff should be given training on hotels SOP
 g) No show
ANS) a person who does not arrive where and when they should at a hotel or motel, and
makes no explanatory contact, is called a No-Show. ... In this circumstance, the canceller
may or may not be charged a cancellation fee, depending upon hotel policy

h) Cutoff date
ANS) It is the date by which the payment for a confirmed reservation should be made
in full, or it will be given a status of a non- guaranteed reservation.

i) Stav over
ANS) The guest is not expected to check out today and will remain at least one more night.
On-change: The guest has departed, but the room has not yet been cleaned and readied for
re-sale. ... Lockout: The room has been locked so that the guest cannot re-enter until
a hotel official clears him or her

j) Arrival list
ANS) The Arrival List Report provides a listing of guest accounts scheduled to arrive for a
given date

Section B

Q2) What do you mean by over booking ? Explain in detail over booking with its’ advantages an
disadvantages ?

ANS) Overbooking is a situation when the total number of rooms reserved for a certain period of time
exceeds the total number of rooms available for sale for the same period. In other words, it is the
number of additional reservations needs to achieve 100% occupancy.
Advantages of Overbooking:

Helps the hotel to achieve 100% occupancy by hedging against guests who do not arrive or cancel their
reservations.

Maximize expected revenue.

Optimizes the operations efficiency by increasing profitability.

Long-term revenue and profit increases

Overbooking is a Low risk and the oldest most commonly used method to increase profitability.

Widely used strategy in hotel revenue management.

When overbooking done based on past statistics then chances of miscalculation decreases.

Compensation are normally cheaper than keeping a room empty.

Rules of refusing are predetermined and also acceptable.

Because hotel rooms are considered as perishable products, overbooking yields considerable impact on
hotels revenue.

Disadvantages of Overbooking:

Do not justify the guest expectations which result to bad experience and reputation.

The additional financial loss for example guest staying at the hotel might have used other hotel facilities.

Guests can be negatively affected by it and therefore it is not a good long-term strategy for hotels.

Negative reviews on internet eg. Social media, Tripadvisor, lodginglists.com and OTA's reviews.

Requires professionally trained and experienced staff to reduce risk of miscalculation.

Guests need to be walked to other hotels in case predicted overbooking is more than actual availability.

Sometimes Overbooking decisions can be very expensive eg. Walking guest to alternate arrangement /
higher cost.

All possible service recovery efforts should be followed.

Reservations must be closely monitored to control overbooking.

Loss of room and other potential revenue.

Q3). What do you mean by first impression ? How it help in improving the hotel’s sale.

ANS) A first impression is critical in the hospitality industry because your guest decides immediately
whether they feel that you are for them or against them. First impressions are black or white, they're
not gray
We’ve all heard the expression that “you never get a second chance to make a first impression”. Recent
studies support this, but more importantly, the studies indicate that it’s very hard to change a poor first
impression to a more positive one later on.

As a hotel, your entire image depends on the ability to offer great customer service right from the initial
contact with your guest. It’s absolutely critical that your guests feel instantly welcome the second they
contact your hotel.

According to McKinsey research on customer experience, 70% of buying experiences are based on how a
customer feels they are being treated. Significantly, a study by RightNow concluded that 73% of people
fall in love with brands because of friendly employees or customer service representatives.

Clearly, there’s huge value in nurturing great relationships with guests right from the start to increase
the prospects of them booking with you now and in the future. But all too often, a guest’s first
communication with a hotel involves an efficient, standard welcome email generated by the PMS or CRS.
And no matter how nicely worded or individually tailored that email might be, an automated welcome
will never feel truly personal.

In contrast, extending a friendly welcome over the phone allows a hotel to build rapport with customers
and form valuable, long-term relationships.

In those crucial few moments of interaction, a human voice can convey a genuine warmth that is
more personal and sincere than any other form of communication. This can shape a customer’s
entire perception of your hotel, enhancing your brand reputation and helping to increase
bookings.

Q5) Explain in detail various ways of fixing room tariff ?

ANS) Price is one of the major elements involved in the marketing and positioning of a
product or service. The price of goods and services of a hotel should cover the cost of
production and overheads, and include a fair amount of profit, so that the hotel business
remains sustainable and profitable. The room of a hotel generates the maximum revenue, so an
accurate and competitive room rent is one of the prerequisites for running a successful
hospitality business. The rate of a hotel room is based on the competition, cost, standard of
services and amenities offered by the hotel, the guest profile, location of the hotel, location of
the room etc.

Three common approaches to deciding room tariff are given as below:

Market based Pricing: Market based pricing is setting a price based on the value of the product
in the perception of the customer. The concept is based on an idea of what the ultimate
consumer of goods and services, i.e the guest is willing to pay and then use this as a starting
point. In this case, the hotel works backwards as it first makes an accommodation product
available at a price that a guest is willing to pay rather than first readying the product and then
deciding its tariff on the basis of costs involved.

This approach is common sense approach. Management looks at comparable hotels in the
geographical market and sees what they are charging for the same product. The thought
behind this is that the hotel can charge only what the market will accept, and this is usually
dictated by the competition.

There are many problems with this approach, although it is used very often. First, if the
property is new, construction costs will most likely be higher than those of the competition.
Therefore the hotel cannot be as profitable as the competition initially. Second, with the
property being new and having newer amenities, the value of property to guests can be
greater. The market condition approach is really a marketing approach that allows the local
market to determine the rate. It may not tale fully into account what a strong sales effort may
accomplish.
Close observation of market trend approach further divides it into four types:

Competitive Pricing : Charge what the competition charges

Follow the leader Pricing : Charge what the dominant hotel in the area charges

Prestige Pricing : Charge the highest rate in the area and justify it with better product,
better service levels, etc

Discount pricing : Reduce rates below that of the likely competitors without considering
operating costs

Q6) Explain the differences between hubbart formula and fixed and variable cost formula?

ANS) HUBBART FORMULA :The Hubbart formula, which is a scientific way of determining the room
rent , was developed by Roy Hubbart in America in the 1940s. It resolves all the problems of the rule of
thumb approach.

ROI + Operating expenses- Non room revenue

Projected rooms sold per day X 365

Key Differences Between Fixed Cost and Variable Cost

The following point are substantial, so far as the difference between fixed cost and variable cost in
economics is concerned:

Fixed Cost is the cost which does not vary with the changes in the quantity of production units. Variable
Cost is the cost which varies with the changes in the number of production units.

The Fixed cost is time-related, i.e. it remains constant over a period. Unlike Variable Cost which is
volume related, i.e. it changes with the change in volume.

Fixed Cost is definite; it will incur even when there is no units are produced. Conversely, Variable Cost is
not definite; it will incur only when the enterprise does some production.

Fixed cost changes in per unit. On the other hand, variable cost remains constant in per unit.

Examples of fixed cost are rent, tax, salary, depreciation, fees, duties, insurance, etc. Examples of
variable cost are packing expenses, freight, material consumed, wages, etc.

Fixed Cost was not included at the time of valuation of inventory, but Variable Cost is included.
 Section C

Q8) What are the different basis of charging? Explain in detail with examples.

ANS) THE FOLLOWING POINTS OF BASIS OF CHARGING ARE AS FOLLOWS:-

i) On the basis of Basis of 24 Hours

According to this system a guest is charge with the special amount for 24 hours from the time s/he
occupies a room in the hotel. After completing a first 24 hours, the guest is then charged foe the next 24
hours. Under this system,the guest is not charge on the basis of day and s/he spend on the hotel.
For example -: In twenty-four hours basis the room is charged for the stay of 24 hours. If a guest arrives
at 9 am today, the room charges will cover until 9 an tomorrow. No concession will be given if the guest
leaves few hours earlier. His/her hotel day begins at 9 am every subsequent day. There is not any fixed
time for check-in and check-out.

ii) On the basis of Night Stand

This system is normally common in transit hotel where travelers during their journey like to spend the
night in the hotel. The guest is charged for the 1st night that s/he spend in the hotel. Guest are
supposed to vacant the room and occupy by the dinner time which may be assumed as 7.00pm. Failing
to do so will charge the guest for next night.
For example :- Here, the charge is fixed, according to the nights spent in the hotel. If a guest stays from
10 am until 6 am the next day, the guest in charged for one night or a day.

iii) On the basis of Check out time

It is the time fixed as convient hours by the hotel. When the guest check out from the hotel after
paying a resonable amount. This system is more common today. In some hotels check-in and check-out
time are same but in many hotels they are different. The reason is that the hotel needs a few minute to
prepare the room for the next guest. Normally the check-out time in many hotel is 12 noon.
For example :- A particular time of a day is fixed, mostly 12:00 noon as a check-in and check-out time for
all the guests, hotel day begins at this time. This method is advantageous that a room can be sold twice
in a same day. For example, Mr. A arrives at 12:00 noon and checks out early. After few hours, Mr. Y
arrives and is provided the same room, he is also charged for whole day.

iv) On the basis of Type of customer

Hotel may vary in room rate according to the type of customer also. The rate may be increase or
decrease according to the purchase power of the customer, guest from the relative sources, repeated
guest etc. A businessman expect a high facilities and service in term of high rate. But other leisure
customer or educational group expect limited services and facilities in term of low rate.

v) Season of Year
Hotels are normally full occupied during the pick season. For this season hotel basically charged rack
rate for the room. While during the off season the room are charged at low rate so to motivate the flow
of tourist.

vi) On the basis of Plan

 The type of plan offer also makes the differences in room rate. Different types of plan are provide by
the hotel at different cost. For eg, a guest staying in a single room in BB (Bread & Breakfast) pays less
than the guest staying in the single room in MAP (Modified American Plan).

Q7) Which system of reservation will be most suitable for a large busy hotel and why ?

ANS) Centaral reservation id more suitable for large hotels . In this type reservation is done
online by the guest and can handle large amount of reservation data effortlessly. The
computerised reservation system not only helps to make guest reservation but also helps to
forcast how many accomodations are reserved in an upcoming time period.

There are the some points which shows that central reservation is best for large hotels:

1. In online reservation all the data is stored correctly by the guest.

2. It also reserve time of the guest and also the hotel.
3. It reduces error .
4.Increases guest satisfaction.
5. The online reservation is a way to get direct sales and manage revenues for hotle.
6.It also increase hotel sale.
7.Reservation is done by the guest at any time.
8.An online booking system will reduce no-shows.
9.Online booking means fast payments .
10.Central reservation is gives so much benefits to the hotel.
 GLOBAL GROUP OF INSTITUTES, AMRITSAR
Department of hotel management
FRONT OFFICE FOUNDATION II Semester 2
Subject code: BHMCT: 205

Model Test Paper 2

Time allowed: 3hrs Max Marks: 60

Instructions to candidate:

1. Section A is compulsory. Consisting of TEN questions carrying 2 marks each

2. Section B contains FIVE questions carrying 5 marks each & student have to attempt any 4
questions
3. Section C contains THREE questions carrying 10 marks each & students have to attempt any 2
questions

Section A

1. Define the following terms:

a) Corporate rate

b) Walking the guest

c) Incidental charges

d) Room selling technique

e) Gds

f) f-form

g) floor limit

h) cut off date

i) key card

j) walk in guest

Section B

2. What do you understand from centralized reservation system ?

3. What do you understand by guest cycle ? explain in detail.

 4. Explain whitney system and diary system of reservation?

5. Explain in detail the step by step procedure of booking a guest room.

6. How self check in is different from standard check in ?

Section C

7. List the sources and modes of reservation in hotels . briefly describe them.

8. Explain briefly the following . (1) density chart (2)guaranteed reservation (3)modes and
channel of reservation (4) whitney system of reservation (5) commission terms (6) hotel
tariff terms (7) inter –sell agencies (8) group reservation (9) central reservation system
(10) cancellation .

9. what are different type of reservation ? explain the process of cancellation of reservation
& and draw necessary form.
 GLOBAL GROUP OF INSTITUTES, AMRITSAR
Department of hotel management
FRONT OFFICE FOUNDATION II Semester 2
Subject code: BHMCT: 205

Model Test Paper 3

Time allowed: 3hrs Max Marks: 60

Instructions to candidate:

1. Section A is compulsory. Consisting of TEN questions carrying 2 marks each

2. Section B contains FIVE questions carrying 5 marks each & student have to attempt any 4
questions
3. Section C contains THREE questions carrying 10 marks each & students have to attempt any 2
questions

Section A

1. Write a short note on:

a) Upselling

b) pre – registration

c) lock out

d) retention charges

e) rooming a guest

f) express check in

g) Explain ADR

h) C-form

i) Difference between travel agent rate and rack rate

j) Enlist any four common guest complaints.

Section B

2. What is guest complaint? What steps are to be followed in order to resolve complain?
3. ‘Guest history records helps front office give better services to guest ‘ justify the
statement by giving the purpose and importance of maintaining guest history record.

4. What is self check in terminal ? how self check in is different from standard check in .
5. Explain the procedure of mail delivery In hotel.

6. What is guest registration ? describe various methods of registration used in hotel with
necessary format.

Section C

7. what is guest registration ? describe various methods of registration used in hotel.

8. Explain the importance and purpose of coordination of front office with other
departments. Write notes on interdepartmental cooperation of front office with any two
departments.

\
9. Distinguish between the following a)key card and card key b)registration card and
registration register c)registration card and c form d)walk in walking a guest e)non
automated registration and fully automated registration