Examination Paper: Hospitality Management
1
IIBM Institute of Business Management
IIBM Institute of Business Management
Examination Paper MM.100
Hospitality Management
Section A: Objective Type (30 marks)
•This section consists of True and False.
•Answer all the questions.
•Each question carries 3 marks.
True and False:
1. ADA stands for………………………………………………………………………………
2. NOT stands for National Offices of Tourism.
3. Management contracts have been responsible for the hotel industry’s rapid boom since the
1960s.
4. High-speed Internet service is free form of information technology that these businesses can
utilize.
5. One of the most crucial IT decisions is choosing the right POS system.
6. Forecasting is the prediction of present outcomes.
7. The top independent restaurant in terms of sales is the Tavern on the Green in New York
City, which opened in 1976.
8. A fine dining restaurant is one where a good selection of seat arranged is offered.
9. Terms to understand in B&I foodservices are contractors, self-operators, & Liaison
personnel.
10. Every manager must function as a leader, motivating and encouraging employees is called
spokesperson role.
END OF SECTION A
Examination Paper: Hospitality Management
2
IIBM Institute of Business Management
Section B: Caselets (40 marks)
•This section consists of Caselets.
•Answer all the questions.
•Each Caselet carries 20 marks.
•Detailed information should form the part of your answer (Word limit 150 to 200 words).
Caselet 1
Airline Commission Caps
Travel agents have begun legal action and public campaigns to combat several airlines’ decisions to
lower commissions for writing tickets, and have warned of higher ticket costs if other airlines follow.
Most U.S. airlines have lowered the commission rate on tickets for domestic flights to a $20 cap for a
round-trip fare. International commissions also fell and vary from airline to airline.As consumers
begin to balk at rising prices and Wall Street presses for continued earnings growth, airlines must cut
costs by turning to their second largest expense, the $12 billion spent annually for costs such as travel
agent commissions. It has become clear that airlines can do nothing about fuel prices management has
any power over is the area of distinction expenses.American Express Corporate Services Agencies,
which books mostly business travelers, warned that if other airlines follow suit, some travel agencies
will go out of business. That would send more businesses to airlines’ reservation agents, who do not
offer the lowest available fares from all carries, or could result in travel agents passing costs along to
consumers.The American Society of Travel Agents, which represent 24,000 agents, and The
Association of Retail Travel Agents, a trade group that represents 4,000 travel agents, have
announced they will seek U.S. congressional approval to allow small, “business-sized” travel agents
to bargain collectively with the major airlines and to steer customers to “friendly” airlines when
negotiating fails. The associations believe that the cut in commissions in less than three years is a slap
in the face.After the introduction of the initial cap of $25 for one-way domestic tickets and $50 for
round-trip tickets, many agents complained caps would eliminate jobs and reduce earnings. A class
action lawsuit followed on behalf of 33,000 travel agents, alleging price fixing. Some travel agents
also steered customers away from other airlines such as Delta in retaliation.In September 1996,
American, Delta, Northwest, and United agreed to pay $72 million in cash to settle the lawsuit.
Questions:
1. If you owned a travel agency, what would your reaction to the reduced commission cap be?
2. What options would you consider?
Caselet 2
Java Coffee House
Michelle Wong is manager of the Java Coffee House at a busy location on Union Street in San
Francisco. Michelle says that there are several challenges in operating a busy coffeehouse, such as
training staff to handle unusual circumstances. For example, one guest consumed a cup of coffee and
ate two-thirds of a piece of cake and then said he didn’t like the cake. Another problem is suppliers
who quote good prices to get her business and then, two weeks later, raise the price of some of the
items. Michelle says that young employees she has at the Java Coffee House are her greatest
challenge of all. According to Michelle, there are four kinds of employees – lazy; good , but not
responsible; those who steal; and great ones who are no trouble.
Examination Paper: Hospitality Management
3
IIBM Institute of Business Management
Questions:
1. What are some suggestions for training staff to handle unusual circumstances?
2. How do you ensure that suppliers are delivering the product at the price quote?
END OF SECTION B
Section C: Applied Theory (30 marks)
•This section consists of Applied Theory Questions.
•Answer all the questions.
•Each question carries 15 marks.
•Detailed information should form the part of your answer (Word limit 200 to 250 words).
1. Looking to the future, which is the best organization structure for a theme park? A fifty-room
resort? A mid-priced Italian restaurant? An economy 100 room hotel? A 3,000-room casino hotel?
2. Depict the main obstacles that exist when motivating low-level employees, such as the
housekeeping staff of a hotel. Give specific examples. What is different from this situation versus
motivating professional, such as the head chef?
END OF SECTION C
1
IIBM Institute of Business Management
IIBM Institute of Business Management
Examination Paper MM.100
Hospitality Management
Section A: Objective Type (30 marks)
•This section consists of True and False.
•Answer all the questions.
•Each question carries 3 marks.
True and False:
1. ADA stands for………………………………………………………………………………
2. NOT stands for National Offices of Tourism.
3. Management contracts have been responsible for the hotel industry’s rapid boom since the
1960s.
4. High-speed Internet service is free form of information technology that these businesses can
utilize.
5. One of the most crucial IT decisions is choosing the right POS system.
6. Forecasting is the prediction of present outcomes.
7. The top independent restaurant in terms of sales is the Tavern on the Green in New York
City, which opened in 1976.
8. A fine dining restaurant is one where a good selection of seat arranged is offered.
9. Terms to understand in B&I foodservices are contractors, self-operators, & Liaison
personnel.
10. Every manager must function as a leader, motivating and encouraging employees is called
spokesperson role.
END OF SECTION A
Examination Paper: Hospitality Management
2
IIBM Institute of Business Management
Section B: Caselets (40 marks)
•This section consists of Caselets.
•Answer all the questions.
•Each Caselet carries 20 marks.
•Detailed information should form the part of your answer (Word limit 150 to 200 words).
Caselet 1
Airline Commission Caps
Travel agents have begun legal action and public campaigns to combat several airlines’ decisions to
lower commissions for writing tickets, and have warned of higher ticket costs if other airlines follow.
Most U.S. airlines have lowered the commission rate on tickets for domestic flights to a $20 cap for a
round-trip fare. International commissions also fell and vary from airline to airline.As consumers
begin to balk at rising prices and Wall Street presses for continued earnings growth, airlines must cut
costs by turning to their second largest expense, the $12 billion spent annually for costs such as travel
agent commissions. It has become clear that airlines can do nothing about fuel prices management has
any power over is the area of distinction expenses.American Express Corporate Services Agencies,
which books mostly business travelers, warned that if other airlines follow suit, some travel agencies
will go out of business. That would send more businesses to airlines’ reservation agents, who do not
offer the lowest available fares from all carries, or could result in travel agents passing costs along to
consumers.The American Society of Travel Agents, which represent 24,000 agents, and The
Association of Retail Travel Agents, a trade group that represents 4,000 travel agents, have
announced they will seek U.S. congressional approval to allow small, “business-sized” travel agents
to bargain collectively with the major airlines and to steer customers to “friendly” airlines when
negotiating fails. The associations believe that the cut in commissions in less than three years is a slap
in the face.After the introduction of the initial cap of $25 for one-way domestic tickets and $50 for
round-trip tickets, many agents complained caps would eliminate jobs and reduce earnings. A class
action lawsuit followed on behalf of 33,000 travel agents, alleging price fixing. Some travel agents
also steered customers away from other airlines such as Delta in retaliation.In September 1996,
American, Delta, Northwest, and United agreed to pay $72 million in cash to settle the lawsuit.
Questions:
1. If you owned a travel agency, what would your reaction to the reduced commission cap be?
2. What options would you consider?
Caselet 2
Java Coffee House
Michelle Wong is manager of the Java Coffee House at a busy location on Union Street in San
Francisco. Michelle says that there are several challenges in operating a busy coffeehouse, such as
training staff to handle unusual circumstances. For example, one guest consumed a cup of coffee and
ate two-thirds of a piece of cake and then said he didn’t like the cake. Another problem is suppliers
who quote good prices to get her business and then, two weeks later, raise the price of some of the
items. Michelle says that young employees she has at the Java Coffee House are her greatest
challenge of all. According to Michelle, there are four kinds of employees – lazy; good , but not
responsible; those who steal; and great ones who are no trouble.
Examination Paper: Hospitality Management
3
IIBM Institute of Business Management
Questions:
1. What are some suggestions for training staff to handle unusual circumstances?
2. How do you ensure that suppliers are delivering the product at the price quote?
END OF SECTION B
Section C: Applied Theory (30 marks)
•This section consists of Applied Theory Questions.
•Answer all the questions.
•Each question carries 15 marks.
•Detailed information should form the part of your answer (Word limit 200 to 250 words).
1. Looking to the future, which is the best organization structure for a theme park? A fifty-room
resort? A mid-priced Italian restaurant? An economy 100 room hotel? A 3,000-room casino hotel?
2. Depict the main obstacles that exist when motivating low-level employees, such as the
housekeeping staff of a hotel. Give specific examples. What is different from this situation versus
motivating professional, such as the head chef?
END OF SECTION C
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