nAmIB I A UnIVERSITY OF SCIEnCE AnD TECHnOLOGY

FACULTY OF MANAGEMENT SCIENCES

DEPARTMENT OF HOSPITALITY & TOURISM

QUALIFICATION: BACHELOR OF HOSPITALITY

QUALIFICATION CODE: 07BHMN LEVEL: 7

COURSE CODE: RDM 710S COURSE NAME: ROOMS DIVISION MANAGEMENT

SESSION: JULY 2016 PAPER: THEORY

DURATION: 2 HOURS MARKS: 100

SUPPLEMENTARY/ SECOND OPPORTUNITY EXAMINATION QUESTION PAPER

EXAMINER($) MR G. CLOETE

MODERATOR: MR N. CHIKUDZA

INSTRUCTIONS 1. Answer ALL the questions.

2. Write clearly and neatly.

3. Number the answers clearly.

THIS QUESTION PAPER CONSISTS OF 4 PAGES (Including this front page)

Question 1

What do you understand by the following Terms? (16)

1.1 "Rehabilitation" (2)

1.2 "Jaquard Weaves "(2)

1.3 "Prestige Product Pricing "(3)

1.4 "Budget "(3)

1.5 "Atrium "(3)

1.6 "Market Segmentation "(3)

Question 2 Indicate what the desirable features are of a daily Occupancy and revenue Report and give reasons for this! (10)

Question 3

Leasing has many advantages over the traditional methods of acquiring furniture. Explain these advantages. (5)

Question 4

Control in Rooms Division is vital and important! Define and explain the Control Process. (1 0)

Question 5

The Sales & Marketing Analysis of Gee Cee' s Hotel has reflected that over the last six months the Hotel's Occupancy during the week was always lower than during the weekend.

As the newly appointed Rooms Division Manager of the unit what strategies would you consider to increase occupancies during the week? Provide clear examples. (15)

Question 6

Discuss " Cost based " Pricing of Accommodation in Hotels briefly! (10)

Question 7

What are the key points to take into account when conferences are considered at your Hotel? (8)

Question 8

Yield Management has proved itself to be a valuable approach to max1m1ze room revenue and is expected to increase in both importance and sophistication especially with increased computerization of hotel front offices.

What are the limitations that Yields Management holds? (4)

Question 9

What are the main duties and responsibilities of a Rooms Division Manager? (10)

Question 10

Various methods of assessing guest satisfaction exist in the Hotel & Tourism Industry! How can you as the Rooms Division Manager of a unit ascertain guest satisfaction? (2)

Question 11

Calculate the average Room Rate by using the Hubbart Formula! (10)

The PON 's Hotel, a 200- room hotel, is projected to cost N$ 9,900,000. Inclusive of land, buildings, equipment, and furniture . An additional N$1 00,000. is needed for working capital. The Hotel is financed with a loan ofN$ 7,500,000. at 12.0% annual interest with the owner of providing cash ofN$ 2,500,000. The owners desire a 15 % annual return on their investment. 75% occupancy is estimated: thus 54,750 rooms will be sold during the year (200x.75x365).

The income tax rate is 40 %. Additional expenses are estimated as follows:

• Property Tax • Insurance • Depreciation • Administrative & General • Data Processing • Human Resources • Transportation • Marketing Expense

N$ 250,000 50,000

300,000 300,000 120,000

• Property Operation/ Maintenance

80,000 40,000

200,000 200,000 300,000 • Energy costs

The other operated departments' income or losses are estimated as follows:

• Food & Beverage • Telephone • Rentals & Other Income

N$ 150,000 ( 50,000) 100,000

, '

Rooms Department direct expenses are N$ 10.00 per room sold.

Calculation of Average Room Rate

Item Calculation Amount Desired net income Owners Investment. x ROI 375,000

: 'S"i Ｂ ｾＭｾﾷ［＠ｾＬＮ｟Ｌﾷ［＠

Pretax income =Net income I 1-t (a) ... ...... ................

ｾﾷ＠ ｾｾＺ＠".i),:! : ••. ; ｾ＠ ｾＬ［ｾＮＡｴｬｾｾｾＧｾ＠Interest Expense (b) ................ .. . .. ....

［｟ｾＭｾ＠r- _.,, _, ＮＧＮＮﾷ｣ｯｾＧＧＬＺＩｻ＠

·{.i" ._;·oc.; .i '""''J ［ｦＮﾷｾＧＺＧ＠

Income before interest & Taxes =Principal x interest .rate x time (c) ...... ... .. ....... .. .....

Estimated depreciation, property taxes (d) ... ... .. .................

Income before fixed charges (e) ...... ....... ............

Undistributed operating expense

Required Operated dept's income (f) ... .. . ...... ........ . ....

ＧｩＮｾｬｦ［ｙＨｾ＠ 3.:1!". \·!f ｾ＠., .

.. . .:J ﾷｾ＠

Dept results exclude rooms ［ｾＢＺﾷﾷﾷ＠ Ｍｾﾷ＠ Ｌｾ［＠.. ,, p); Less: Food

: Rentals & Other Income (g) ... .......... ( ...... .... )

Plus: Telephone Department Loss

!' ｽｾ＾ＭＬ＠ ＢＢｾｾｾＭＱＢＧ＾ﾷｾＭRooms Department Income (h) .........................

Rooms Department Direct Expense 54.750 X ••• • •••• • • • •

Rooms Revenue (i) .. . .. . .. .................

Required Average Room rate U) ... ......... .......... f; 'i,, .:." '

/10

Good Luck!!