International Hotels: Development and Management

Practice Tests

This booklet contains self-graded practice tests for every chapter in International Hotels: Development and
Management, Second Edition. Because these questions are similar in format and content to the questions on the
Final Exam, you can begin to prepare for the Final Exam with your first assignment. The answers to all questions
can be found in the Practice Test Answer Key at the back of this booklet.
2 428T International Hotels: Development and Management, Second Edition

Chapter 1 Globalization, Tourism, and the Lodging Sector

NAME ___________________________________________________

DATE _____________________________________

1. While several forces at work together have dissolved national borders, the most influential of these forces is:
a. international travel.
b. foreign exchange and other financial activities.
c. hospitality and other industrial activities.
d. the increasing flow of communication.
2. Which of the following statements about transnational enterprises is false?
a. It owns and controls income-generating assets in more than one country.
b. Its operations transcend national boundaries.
c. It must have direct investments in its host country.
d. It has all major forms of contractual arrangements in its host country.
3. Which of the following is not a category of travel demand determinants?
a. primary economic factors
b. leisure and the quality of life
c. demographic changes
d. population growth
4. The tourism industry includes:
a. lodging operations and transportation services.
b. eating and drinking places.
c. sightseeing, amusement, and recreation services.
d. all of the above
5. In which countries would domestic travel be expected to exceed international travel?
a. small countries with ease of outbound day trips
b. developed countries with large populations that have access to diverse attractions within their own borders
c. small countries with few attractions within their own borders
d. large countries with few attractions within their own borders
6. Which of the following groups represents the largest number of properties worldwide?
a. independently owned and operated properties
b. chain-owned and -operated properties
c. independently owned, chain-operated properties
d. franchised properties
7. The world’s major regional destination since the 1950s has been:
a. North America.
b. the Asia-Pacific region.
c. Europe.
d. the Caribbean.
8. Guests in Spain may choose the world-renowned __________, hotels converted from castles or monasteries.
a. posadas
b. paradors
c. pensions
d. ryokan
 428T International Hotels: Development and Management, Second Edition 3

9. The largest group of users of hotel accommodations and services worldwide are:
a. individual tourists.
b. tour groups.
c. business travelers.
d. conference participants.
10. Which of the following statements about pleasure travelers is true?
a. They represent the most price-sensitive segment of the travel market.
b. They account for about 70 percent of hotel guestroom sales worldwide.
c. They would rather stay in hotels than with relatives or friends.
d. They do not react to political situations.
4 428T International Hotels: Development and Management, Second Edition

Chapter 2 The Emergence of International Hotels

NAME ___________________________________________________

DATE _____________________________________

1. Which of the following was an American hotel innovation?

a. spacious public rooms for socializing
b. luxury hotels
c. private baths
d. all of the above
2. Which of the following was among the factors that deterred American hotel operators from investing money in
hotels abroad before World War II?
a. anti-American sentiment in Central Europe and Asia
b. currency fluctuations and restrictions on repatriation of profits
c. fears of foreign encroachment on American markets
d. all of the above
3. U.S. foreign policy after World War II encouraged hotel development in which of the following regions?
a. Latin America and the Caribbean
b. the Middle East
c. East Asia
d. Southeast Asia
4. Before the 1960s, international hotel development activity focused on:
a. resort destinations in the Mediterranean and Caribbean.
b. developing countries with large supplies of inexpensive land and labor.
c. chain expansion in established markets.
d. large gateway cities and national capitals.
5. What development in the late 1950s signaled the beginning of mass demand in Western Europe for tour
packages to new resort destinations?
a. easing of U.S.-Soviet tensions
b. renewal of U.S. funding for the Marshall Plan
c. growth of the air charter industry
d. reduction in transatlantic airfares
6. Which of the following has been a significant problem for the international hotel industry in the Asia-Pacific
region?
a. restrictions on the repatriation of profits
b. economic instability
c. overcapacity
d. sharp population increases
7. In general, which of the following is a barrier to international hotel expansion in Europe?
a. planning restrictions
b. high cost of construction
c. well-established domestic chains
d. all of the above
 428T International Hotels: Development and Management, Second Edition 5

8. Which of the following has had a significant impact on the international hotel industry in the Middle East?
a. economic diversification
b. oil prices
c. fluctuations in construction costs
d. all of the above
9. Hyatt Hotels Corporation was one of the first chains to:
a. separate hotel ownership from management.
b. use market segmentation internationally.
c. develop resort hotels in the Caribbean.
d. open a hotel in China bearing its own name.
10. What was the primary reason that airlines began to develop or acquire their own hotels after World War II?
a. to stimulate tourism development
b. to expand and diversify their revenue base
c. to be awarded certain air routes
d. to ensure rooms for their passengers and crews
6 428T International Hotels: Development and Management, Second Edition

Chapter 3 Political Aspects of the International Travel, Tourism, and Lodging Industry

NAME ___________________________________________________

DATE _____________________________________

1. The effect of high room taxes tends to be that:

a. fair competition in the local lodging industry is disrupted.
b. the competitive position of the destination becomes less favorable.
c. hotels must increase their employee-to-room ratio.
d. all of the above

2. A travel allowance is a government-imposed restriction that limits the:

a. number of exit visas granted to citizens.
b. amount of exchange residents may purchase to cover foreign travel expenses.
c. period of time a citizen may spend traveling abroad for leisure purposes.
d. period of time a foreign business traveler may spend in the country.

3. Regarding fire safety standards for hotels, regulations:

a. usually conform to uniform international standards.
b. are fairly consistent from country to country, in spite of the lack of international standards.
c. vary somewhat from country to country but are generally consistent within each country.
d. can vary considerably from country to country and even from city to city.

4. The activity in which national tourism organizations are most frequently involved is:
a. tourism planning and development.
b. the preservation, protection, and use of historical and cultural resources.
c. tourist reception and information.
d. official tourism representation at the national and international levels.

5. Government support for the tourism industry is essential, in part because governments are usually in the best
position to:
a. provide the necessary infrastructure.
b. offer domestic marketing assistance.
c. analyze investment opportunities for foreign corporations.
d. all of the above

6. Developing countries frequently complain that international hotel companies:

a. do not market their country as a tourist destination well enough.
b. violate government restrictions on the repatriation of profits.
c. are reluctant to hire local nationals to fill senior positions.
d. none of the above

7. What have developing countries identified as the most significant benefit of involvement with international
hotel companies?
a. increased circulation of national currency
b. increased pace of tourism development
c. training of the local labor force
d. management expertise
 428T International Hotels: Development and Management, Second Edition 7

8. Which of the following is issued by the U.S. State Department to advise the public against travel to a particular
country?
a. a caution
b. a notice on conditions
c. a travel warning
d. a visa recall

9. Which of the following is a common tactic that lodging companies use to reduce vulnerability to political risk
when expanding internationally?
a. management contracts with significant equity participation
b. management contracts with little or no equity participation
c. equity joint ventures
d. controlling ownership interest in both land and operations

10. A written crisis plan should focus first on:

a. property security.
b. loss prevention.
c. human safety.
d. communication.
8 428T International Hotels: Development and Management, Second Edition

Chapter 4 Financing International Hotels

NAME ___________________________________________________

DATE _____________________________________

1. Equity investment criteria for specific hotel projects usually include which of the following?
a. adequate cash flow to service the investment
b. a long payback period
c. subordination of management fees
d. availability of full recourse loans

2. In order to obtain Euroyen financing, a hotel project must have:

a. Japanese ownership.
b. diversified sources of equity financing.
c. a loan-to-value ratio of 60 percent or less.
d. an equity level of at least 50 percent.

3. Which of the following are among the projects that foreign investors tend to prefer?
a. entire economy chains
b. mid-priced hotels in secondary cities
c. properties affiliated with luxury chains
d. independents in new resort areas

4. To obtain financing from the International Finance Corporation, a new hotel project must:
a. expand the market in the destination.
b. be competitive in a well-established market.
c. have an equity level of at least 40 percent.
d. have a loan-to-value ratio of less than 75 percent.

5. One disadvantage of obtaining funding for a hotel project in a developing country from private foreign sources
is that:
a. the sources are usually located in a country that is not party to multilateral aid agreements.
b. such loans are often available only on a short-term basis.
c. private foreign sources often add 3 to 5 percent to the normal interest rate.
d. such loans usually have equity requirements far in excess of what it is possible to raise in a
developing country.

6. Which of the following is an example of a government incentive designed to reduce the capital outlay for a
hotel project?
a. tax holidays
b. government loan guarantees
c. accelerated depreciation allowances
d. interest relief subsidies

7. In discretionary incentive programs, incentives apply:

a. to every project.
b. to every project except those that are receiving funds as a result of multilateral aid agreements.
c. only to those projects that would not otherwise be viable.
d. only to those projects that the government has determined will advance its tourism goals.
428T International Hotels: Development and Management, Second Edition 9
10 428T International Hotels: Development and Management, Second Edition

8. Raising capital by offering current shareholders additional shares at a discount from the market price is called:
a. a rights issue.
b. sponsorship.
c. a value-added issue.
d. flotation.

9. Non-recourse finance has not been very common in Asia, in part because:
a. Asia has a large number of lenders in local markets.
b. there has been a relatively weak demand for debt capital in Asia.
c. traditional Asian entrepreneurs prefer equity financing.
d. most Asian cultures tend to be averse to any form of limited liability.

10. The use of foreign tax credits has become increasingly:

a. simple.
b. complex.
c. common.
d. rare.
 428T International Hotels: Development and Management, Second Edition 11

Chapter 5 The Decision to Go Global

NAME ___________________________________________________

DATE _____________________________________

1. Managing the resources of a transnational organization in accordance with local customs and traditions:
a. is a generic approach to competing in the international market.
b. would be easy to coordinate and control.
c. is not as competitive as putting out a perfect product.
d. would be the ultimate competitive edge in a global economy.

2. Which of the following organizations is characterized by more teamwork; shared responsibility, mission,
and strategy; and encouragement of innovation and local implementation?
a. global
b. multinational
c. transnational
d. consortia

3. Which of the following strategies would not be expedient for a hotel chain that wants to succeed in both
domestic and international markets?
a. expand existing markets at home.
b. create new products to fill market niches.
c. develop markets abroad.
d. focus solely on accommodating current markets.

4. Which of the following statements regarding the distribution of international hotel chains outside their
home region is false?
a. French chains are well represented in Europe and French-speaking African countries.
b. Japanese hotel chains are well-represented in Southeast Asia and Oceania.
c. United Kingdom hotels are strongly concentrated in North America.
d. U.S. hotel chains are strongly represented in Asia, Latin America, and Canada.

5. Which of the following is not a reason for foreign hotel chains to invest in U.S. hotels?
a. The United States is politically stable.
b. U.S. real estate is relatively inexpensive.
c. The most important gateway cities with international air links are in the United States.
d. The U.S. dollar has experienced a long-term increase in value.

6. Hotel organizations that have their own brand or brands, which may be managed by the corporate chain or
by a conglomerate, belong in the category of:
a. corporate hotel chains.
b. voluntary associations.
c. representative companies.
d. consortia.

7. Best Western in the United States and Logis de France are typical examples of ________, an international
hotel industry category they dominate.
a. corporate hotel chains
b. voluntary associations
c. conglomerates
d. multinationals
8. Which of the following statements might indicate a trend away from equity involvement by operators?
12 428T International Hotels: Development and Management, Second Edition

a. Governments of developing countries have allowed higher levels of foreign ownership in local
enterprises.
b. Some international lenders will not make hotel construction loans unless the operator provides equity.
c. Properties and locations have become scarce and competition for management contracts is keen.
d. Many U.S. hotel companies have positioned themselves as operators and service firms and do not have
access to funding.

9. Which of the following problems encountered by multinational hotel operators are at least manageable?
a. transportation and communication
b. regulatory, legal, and political decisions that affect operators
c. work permits and pay differentials for expatriate employees
d. differences in religion, mores, and work ethics

10. A planning and control system containing the flexibility required in the international setting should include:
a. budgets and objective based on domestic operations.
b. performance criteria and measurements based on net income and return on investment.
c. the capability of adjusting to changes in the operating environment caused by political and social
upheavals.
d. no parameters for decision-making.
 428T International Hotels: Development and Management, Second Edition 13

Chapter 6 Developing an International Hotel Project

NAME ___________________________________________________

DATE _____________________________________

1. International hotel developers should include the hotel operator in the early stages of hotel development
because:
a. affiliation with an established hotel chain can help the developer secure financing.
b. only an operator can perform a realistic market feasibility study.
c. the operator’s corporate resources can be used to pay for development costs.
d. all of the above

2. In a typical hotel development process, the layout of the hotel is designed:

a. before anything else is done.
b. before the feasibility analysis.
c. immediately after the feasibility analysis is completed.
d. immediately after the project has completed the commitment phase.

3. Which of the following is not a water quality consideration?

a. chemical properties of the water
b. guest perceptions of the water
c. cost of the water
d. the effect of the water on operating equipment

4. In a remote area where it is difficult to determine the legal ownership of the land, one of the risks of hotel
development is that:
a. the land could be communally owned, in which case local influence over the project might be too great.
b. the government having jurisdiction over the land could expropriate it at any time.
c. subsequent claims to the land could threaten the viability of the entire project.

5. Which of the following is not typically regulated by zoning laws?

a. construction density limits
b. political activity
c. commercial activity
d. building-to-site ratios

6. Which of the following should be included in a market feasibility study?

a. planned sales and marketing strategies
b. legal and environmental restrictions
c. potential sources of project financing
d. supply factor analysis

7. A market feasibility analysis can assist in the drafting of a hotel’s:

a. positioning statement.
b. construction budget.
c. ownership structure.
d. geotechnical report.

8. Which of the following would probably not be discussed in an environmental impact statement for a hotel
project?
14 428T International Hotels: Development and Management, Second Edition

a. traffic congestion
b. noise levels
c. political demographics
d. population growth

9. Which of the following would most likely be considered a security issue?

a. baggage handling
b. overcrowding in staff accommodations
c. availability of fire extinguishers
d. water quality

10.LEED certification is awarded by the:

a. World Tourism Organization.
b. U.S. Green Building Council.
c. International Finance Corporation.
d. International Business Leaders Forum.
 428T International Hotels: Development and Management, Second Edition 15

Chapter 7 International Hotel Contracts and Agreements

NAME ___________________________________________________

DATE _____________________________________

1. Under a management contract’s terms, the owner of a hotel property is not responsible for:
a. working capital.
b. operating decisions.
c. operating expenses.
d. debt service.

2. Negotiation of a fee structure that is fair and affordable requires:

a. standardized fee structure rules for various properties.
b. mediation by a neutral party.
c. adequate incentives for the owner to generate returns to reward the operator.
d. flexibility on the part of the operator, the owner, and the lender.

3. Most owners prefer short-term contracts because:

a. they provide stability for all parties involved.
b. they limit flexibility.
c. they make it easier to remove deficient operators.
d. they are more stable for owners than long-term contracts.

4. The budget for capital expenditures for improvements and additions covers:
a. replacements of existing inventories.
b. replacements of worn furniture and decor.
c. improvements to the property.
d. operating expenditures.

5. Salary and personnel expenses are generally:

a. reimbursable.
b. charged to the owner’s account.
c. charged to the operator’s account.
d. tax deductible.

6. Which of the following specifies that the operator may not own, manage, or be affiliated with another
property within a specified geographical area for a specific amount of time?
a. shortfall time frame
b. turnkey agreement
c. restrictive covenant
d. technical assistance agreement

7. Some international chain operators insist that disputes involving certain financial matters should be subject
to binding determination by:
a. independent auditors.
b. the home country government.
c. the host country government.
d. home country auditors.

8. All contractual provisions of a joint venture agreement must be negotiated:

a. separately.
16 428T International Hotels: Development and Management, Second Edition

b. in a neutral setting.
c. simultaneously.
d. with a mediator.

9. Which of the following is not a potential disadvantage of franchising from the hotel owners’ perspective?
a. group purchasing arrangements
b. excessive costs if the incorrect franchise is chosen
c. no guaranteed success
d. frequent absence of restrictive covenants

10. When a franchise agreement is terminated and the hotel may no longer use the brand name, the hotel:
a. may lose some customers and market share to other known brands.
b. may actually gain customers and market share.
c. will revert to using its former name.
d. will not be affected one way or the other.
 428T International Hotels: Development and Management, Second Edition 17

Chapter 8 Understanding Cultural Diversity

NAME ___________________________________________________

DATE _____________________________________

1. A hotel industry study in Toronto showed that although cultural diversity in the workplace has positive effects,
it can be a negative force when:
a. departmental concentration of minority ethnic groups causes conflicts between individuals due to
language or cultural differences.
b. new immigrant groups provide a large source of potential workers.
c. the work environment is enriched by multiple cultures.
d. hotels are able to meet the needs of a diverse group of customers.

2. The biggest challenge for a hotel manager in an environment of cultural diversity, and the one that will bring
the property the most benefit, is to:
a. ignore the different value systems.
b. focus only on the goals of the organization.
c. make ethnic groups behave as mainstream Americans.
d. create a team attitude toward achieving the goals and objectives of the department and the hotel.

3. Which of the following statements about European-owned companies is false?

a. They tend to stress short-term results.
b. They spend less than do U.S. companies on training.
c. They tend to rely more on Americans for middle and upper-middle management support than do
companies owned by Asians.
d. Middle managers in British- and French-owned properties have to get approval from upper level
managers on decisions outside their small sphere of responsibility.

4. Low-context cultures place great emphasis on the spoken and written word. Which of the following is a low-
context culture?
a. Chinese culture
b. North American culture
c. Japanese culture
d. Middle Eastern culture

5. Which of the following is not a valid insight into the behavior and values of people?
a. In many societies, family roles and relationships are very traditional, personal, and precise.
b. Arabs and Africans have a close conversational space and may feel rejected by the greater personal
distance of Americans.
c. In cultures where religion governs business, it is important for a manager to respect prayer requirements
and diet restrictions in the hotel’s daily routines.
d. “More is better” or “bigger is better” is universally admired.

6. Which of the following actions would be a breach of protocol by an American in a foreign country?
a. presenting flowers and a bottle of wine when in an Islamic culture
b. combining a handshake with a bow when greeting a Japanese business associate
c. hugging when greeting a South American business associate
d. presenting an American-made gift to a business associate who is from a former communist country
18 428T International Hotels: Development and Management, Second Edition

7. Which of the following actions is not recommended in negotiating across the given culture?
a. In Latin America, build a business relationship that is based on friendship.
b. Work through government channels in Greece to conduct business.
c. In Italy, be conservative, efficient, impersonal, and go straight to the point.
d. With the Japanese, have the negotiation arranged by a mutual acquaintance or go-between—a face-saving
measure.

8. Cultural sensitivity training attempts to:

a. increase insight into one’s own behavior.
b. increase sensitivity to the behavior of others.
c. develop an attitudinal flexibility within the individual.
d. all of the above

9. Of the five categories of power recognized in German business, ____________ power ranks highest in esteem.
a. intellectual
b. financial
c. entrepreneurial
d. political

10. Which of the following statements about collectivism is false?

a. Ties between individuals are very tight.
b. Everybody looks after the interests of group members.
c. Everybody is expected to have opinions or beliefs other than those of the group.
d. The group protects or provides for its members.
 428T International Hotels: Development and Management, Second Edition 19

Chapter 9 Selection and Preparation of International Hotel Executives

NAME ___________________________________________________

DATE _____________________________________

1. Overly restrictive immigration and work policies are likely to cause:

a. a concentration of economic power in the hands of foreign hotel investors.
b. local skilled workers to leave the community in search of better compensation.
c. a weakening of the local hotel industry’s competitive position.
d. domestic hotels to have a competitive advantage over international hotels.

2. In most respects, hiring local nationals is __________ than hiring expatriates.

a. less expensive
b. more complicated
c. less desirable
d. no different

3. At the university level, American hospitality programs tend to teach __________ very well.
a. technical skills
b. managerial techniques
c. professional demeanor
d. social and service skills

4. An expatriate hotel manager must be __________ than a domestic hotel manager.

a. firmer in dealing with employees
b. significantly stricter in enforcing company policies
c. considerably more flexible in dealing with guests and the community
d. more creative in developing marketing strategies

5. Which of the following is not a desirable characteristic in an expatriate manager?

a. sense of humor
b. desire to depend on others
c. curiosity
d. tolerance of ambiguity

6. Which of the following is generally addressed in an expatriate manager’s contract?

a. educational requirements
b. social and business etiquette
c. values of the host culture
d. medical and health costs

7. In a pre-departure training program, which of the following would be covered in skills training?
a. nonverbal communication
b. counteracting ethnocentrism
c. social and business etiquette
d. religious practices

8. Pre-departure training and orientation can help reduce the incidence of culture shock among expatriate
employees by:
20 428T International Hotels: Development and Management, Second Edition

a. strengthening employees’ appreciation of their own culture’s worth.

b. instilling in employees realistic expectations of the new environment.
c. increasing employees’ concentration on their new position.
d. teaching employees the importance of taking control of circumstances and directing events.

9. Which of the following helps prevent excessive acculturation among expatriate employees?
a. cultural awareness training
b. skills training
c. regular communication with headquarters
d. spending time in the new culture before managerial duties begin

10. The problems associated with repatriation of employees can be minimized through:
a. cultural awareness training.
b. providing more perquisites on the foreign assignment.
c. extending the duration of foreign assignments.
d. sound career planning.
 428T International Hotels: Development and Management, Second Edition 21

Chapter 10 International Human Resource Management

NAME ___________________________________________________

DATE _____________________________________

1. Which of the following is considered a human resource development activity?

a. setting performance standards
b. compensation administration
c. recruitment
d. promotion
2. In developing countries, skilled hospitality personnel are sometimes difficult to find because:
a. there is a general labor shortage.
b. there is a shortage of training facilities and trainers.
c. of poor working conditions.
d. of high labor turnover.
3. Strategies to attract and retain workers in the hospitality industry have traditionally focused on:
a. wages and benefits.
b. working hours and conditions.
c. orientation and training.
d. recruitment and staff development.
4. Which of the following needs to be explicitly addressed in the orientation of new employees at an
international hotel?
a. employee compensation
b. cultural attitudes toward service
c. analysis of the competition
d. placement testing for training options
5. As a general rule, the best trainer for day-to-day, ongoing training is someone:
a. from company headquarters who has spent some time in the host community.
b. from the same culture as the trainees.
c. who has been working at the hotel for at least three years.
d. who is able to focus the trainees’ attention on the cultural differences among the workforce.
6. Overt individual competitiveness is frowned upon in:
a. countries where labor unions are weak.
b. most Western European countries.
c. the traditional American business environment.
d. many Asian cultures.
7. When someone from a different culture is speaking, repeating the message back to the speaker:
a. is usually a good way to ensure that the message was correctly heard.
b. is often considered very rude or even offensive.
c. often tends to confuse the speaker.
d. may or may not be acceptable, depending on whether the speaker is from high- or low-context culture.
8. In general, the highest payroll-related costs are found in countries with:
a. a problem of staff pirating.
b. private health care systems.
c. strong labor legislation.
d. liberal immigration policies.
22 428T International Hotels: Development and Management, Second Edition

9. Which of the following most accurately describes the role of unions in Japan?
a. Unions supervise certain areas of employee relations and benefits.
b. Unions serve as watchdog organizations, ensuring that government labor legislation is being followed.
c. Unions in a leading industry negotiate wage levels each year and other industries and non-union
businesses follow suit.
d. Unions have very little power with industry and serve mainly as legislative lobbying organizations.
10. In the United States, the use of performance appraisals assumes that employees:
a. will react negatively to criticism.
b. are loyal to their superiors.
c. are unable to change the course of most events on the job.
d. have some measure of control over their environment.
 428T International Hotels: Development and Management, Second Edition 23

Chapter 11 Special Considerations in Managing International Hotel

Operations

NAME ___________________________________________________

DATE _____________________________________

1. Goal-setting, forecasting, and budgeting are primarily __________ functions.

a. planning
b. coordinating
c. directing
d. controlling
2. Which of the following observations is not valid about organizational structures of international hotels?
a. Food, beverages, banqueting, and off-site outlets may account for about two-thirds of the revenues of a
Japanese hotel.
b. Food, beverages, banqueting, and off-site outlets usually account for about two-thirds of the revenues in
an American hotel.
c. In some Asian countries, a banquets department is a separate and autonomous hotel department.
d. In some socialist countries, a “political officer” is hired to ensure “political correctness” of the hotel’s
operations.
3. Which of the following is an important role played by corporate culture in an international hotel’s
organization?
a. It guides behavior in an organization.
b. It provides cohesiveness and coherence among the parts of the organization.
c. It provides insight into the company’s future directions and actions.
d. all of the above
4. The current de facto international language of business is:
a. English.
b. French.
c. Spanish.
d. Japanese.
5. Which of the following is not a typical responsibility of an international concierge?
a. assisting guests who have passport problems
b. making flight arrangements with airlines for guests
c. obtaining tickets for local entertainment
d. registering guests and assigning rooms
6. A recent development in the industry is the inclusion of __________ as a priority feature that business
travelers look for in a hotel.
a. large guestrooms
b. excellent restaurants
c. the business center
d. in-room amenities
7. Established in 1974, the __________ now has over 100 member nations. Its mission is to enhance the
comparability of financial standards and move toward a common accounting language.
a. European Community
b. International Hotel & Restaurant Association
c. International Accounting Standards Board
d. Organization of Economic Cooperation and Development
24 428T International Hotels: Development and Management, Second Edition

8. Support of local businesses and products by an international hotel does not always produce favorable
results. One favorable result, however, is that:
a. it may drive local prices up.
b. local standards of living may be lowered.
c. the presence of a hotel in a small community can upset the balance of supply and demand.
d. support of the local farm economy enables the host country to earn foreign exchange.
9. According to the International Hotel Regulations, a hotel is entitled to terminate without notice its contract
of accommodation with a guest if it finds:
a. serious and persistent breaches of house rules by the guest.
b. any damages caused by the guest to persons.
c. any damages caused by the guest to buildings.
d. any damages caused by the guest to furnishings.
10. Finding a suitable means of harmonizing and coordinating private law among countries is the objective of:
a. common law.
b. UNIDROIT.
c. the international law of coexistence.
d. IH&RA.
 428T International Hotels: Development and Management, Second Edition 25

Chapter 12 International Hotel Classifications and Standards

NAME ___________________________________________________

DATE _____________________________________

1. Which of the following were among the first organizations to inform potential guests of the quality of specific
lodging accommodations?
a. state or regional governments
b. national tourism organizations
c. automobile manufacturers
d. cycling clubs
2. Which of the following is an important purpose of hotel classification systems?
a. to create new markets
b. to standardize the quality of products and services
c. to close down substandard lodging accommodations
d. to prevent overcapacity in any given market
3. With respect to hotel classification systems, which of the following terms refers to quality assessment?
a. registration
b. categorizing
c. grading
d. classification
4. The criteria for a hotel classification system should strike a balance between what travelers require and will
pay for and what:
a. government safety standards demand.
b. owners and operators can reasonably provide.
c. the sponsors of the classification system wish to promote.
d. the national or regional tourism policy suggests.
5. Government classification systems for hotels tend to concentrate on:
a. evaluating the quality of products and services.
b. excluding substandard properties from consumer guides.
c. categorizing properties based on their physical facilities.
d. enforcing very strict and specific standards.
6. Many chain operators argue against hotel classification systems, maintaining that any grading system has been
made obsolete by the recent trend toward:
a. hotel product segmentation and branding.
b. mass marketing and advertising.
c. computerized consumer information systems.
d. deregulation in the travel industry.
7. Besides registration or licensing, what reasons do most governments give for supporting official hotel
classification systems?
a. taxation and tourism planning
b. taxation and labor regulation
c. labor regulation and marketing
d. tourism planning and marketing
26 428T International Hotels: Development and Management, Second Edition

8. Official hotel classification systems are usually drafted by:

a. national hotel associations, under the guidance of a government official.
b. national tourism administrations, often in cooperation with hotel trade representatives.
c. commercial companies or industry associations, under contract to a national tourism board.
d. management consulting firms retained by government agencies.
9. One of the problems with Spain’s official hotel classification system is that:
a. it is not comprehensive since inclusion is voluntary.
b. the national standard criteria are arbitrary and rarely updated.
c. hotels must be classified solely on the basis of an objective assessment of hotel facilities.
d. it is linked to the tax system, so many hotels intentionally downgrade themselves to avoid higher taxes.
10. For a hotel to achieve “world-class” status, the hotel’s management would do well to:
a. follow well-developed management policies to the letter.
b. instill in its staff a respect and appreciation for culture as a resource.
c. focus on the overall image and impression of the hotel, rather than on countless details.
d. use marketing to set service standards just a little higher than current performance levels.
 428T International Hotels: Development and Management, Second Edition 27

Chapter 13 International Hotel Sales and Marketing

NAME ___________________________________________________

DATE _____________________________________

1. Most marketing experts agree that the best marketing decisions come from:
a. experience.
b. research.
c. intuition.
d. a blend of experience, research, intuition, and judgment.
2. A hotel’s international marketing strategy requires the selection of:
a. specific target markets.
b. distribution channels.
c. communication and promotion methods.
d. all of the above
3. Which of the following is not an advantage of centralized marketing?
a. its tendency to follow a “one size fits all” mentality
b. worldwide standardization of the brand name
c. economies of scale in sourcing and logistics
d. cost advantages gained in production of promotional materials
4. Which of the following statements about the way travel distribution systems vary in different countries is
false?
a. Americans tend to be heavy users of travel agents for foreign travel products.
b. Europeans and Asians are more apt to consult a variety of sources for all travel.
c. Travel agencies in Europe tend to be independent and to be smaller than those in the United States.
d. Japan has a highly refined and regulated distribution system and a sophisticated planning process.
5. A disadvantage of an independent hotel joining a consortium is that the:
a. hotel may retain autonomy on its operating policies and practices.
b. hotel may relinquish part of its control in sales and distribution.
c. consortium helps the hotel compete with the chains.
d. consortium makes few demands on its members.
6. Market segmentation based on motivations, lifestyles, interests, hobbies, or propensity to travel uses
__________ data.
a. demographic
b. geographic
c. psychographic
d. socioeconomic
7. The manner in which a hotel is developed and targeted for a specific market segment is called:
a. public relations.
b. positioning.
c. promotion.
d. cooperative marketing.
28 428T International Hotels: Development and Management, Second Edition

8. Which of the following promotional tools for hotels would be aimed at travel and tourism industry
professionals?
a. trade advertising
b. consumer advertising
c. direct mail
d. TV advertising
9. In international advertising, effective print ads are those with __________ graphics and __________ copy.
a. no; lengthy
b. minimal; extensive
c. eye-catching; minimal
d. extensive; extensive
10. Which of the following is usually the most significant factor in an Asian travel distributor’s decision to work
with a hotel as its travel partner?
a. the salesperson’s age
b. the travel distributor’s trust in the salesperson’s integrity
c. the salesperson’s bilingual ability
d. the salesperson’s punctuality in keeping appointments
 428T International Hotels: Development and Management, Second Edition 29

Answer Key
The answers to all of this guide's practice test questions are listed below. Each question is linked to a competency.
Competencies are listed on the first page of each chapter in the book.
An answer reading 3-b-C4 translates to:
3: the question number
b: the correct answer
C4: the competency number
Note that the answers to test questions may not appear verbatim on the referenced pages. Test questions may assess
your ability to apply a concept, not just your knowledge of the concept.

Chapter 1: 1-d-C1, 2-c-C1, 3-d-C2, 4-d-C2, 5-b-C2, 6-a-C3, 7-c-C3, 8-b-C4, 9-c-C4, 10-a-C4
Chapter 2: 1-c-C1, 2-b-C1, 3-a-C2, 4-d-C2, 5-c-C2, 6-c-C3, 7-d-C3, 8-b-C3, 9-a-C5, 10-d-C7
Chapter 3: 1-b-C1, 2-b-C1, 3-d-C1, 4-d-C3, 5-a-C3, 6-c-C4, 7-b-C4, 8-c-C5, 9-b-C6, 10-c-C7
Chapter 4: 1-a-C1, 2-c-C2, 3-c-C3, 4-a-C4, 5-b-C4, 6-d-C5, 7-d-C5, 8-a-C6, 9-c-C7, 10-b-C8
Chapter 5: 1-d-C1, 2-c-C2, 3-3-C3, 4-c-C5, 5-d-C6, 6-a-C7, 7-b-C7, 8-d-C8, 9-a-C8, 10-c-C8
Chapter 6: 1-a-C1, 2-d-C2, 3-c-C3, 4-c-C4, 5-b-C4, 6-d-C5, 7-a-C5, 8-c-C6, 9-a-C8, 10-b-C9
Chapter 7: 1-d-C2, 2-d-C3, 3-c-C4, 4-c-C5, 5-b-C7, 6-c-C8, 7-a-C9, 8-c-C10, 9-a-C11, 10-a-C12
Chapter 8: 1-a-C2, 2-d-C2, 3-b-C3, 4-b-C4, 5-d-C4, 6-a-C5, 7-c-C6, 8-d-C7, 9-a-C8, 10-c-C9
Chapter 9: 1-c-C1, 2-a-C1, 3-b-C1, 4-c-C2, 5-b-C2, 6-d-C3, 7-a-C3, 8-b-C4, 9-c-C4, 10-d-C5
Chapter 10: 1-a-C1, 2-b-C2, 3-a-C2, 4-b-C3, 5-b-C4, 6-d-C5, 7-a-C5, 8-c-C6, 9-c-C7, 10-d-C8
Chapter 11: 1-a-C1, 2-b-C2, 3-d-C2, 4-a-C3, 5-d-C4, 6-c-C5, 7-c-C6, 8-d-C7, 9-a-C9, 10-b-C9
Chapter 12: 1-d-C1, 2-b-C2, 3-c-C2, 4-b-C3, 5-c-C4, 6-a-C4, 7-d-C5, 8-b-C6, 9-d-C6, 10-a-C7
Chapter 13: 1-d-C1, 2-d-C2, 3-a-C2, 4-c-C4, 5-b-C6, 6-c-C7, 7-b-C8, 8-a-C9, 9-c-C9, 10-b-C10