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RDM710S - ROOMS DIVISION MANAGEMENT - 1ST OPP - JUNE 2023 |
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nAmI BI AunIVE RSITY
OF SCIEn CE Ano TECH n OLOGY
FACULTYOF COMMERCEH, UMAN SCIENCESAND EDUCATION
DEPARTMENT OF HOSPITALITY & TOURISM
QUALIFICATION: BACHELOR OF HOSPITALITY MANAGEMENT
QUALIFICATION CODE: 07 BHMN
LEVEL: 7
COURSE CODE: RDM710S
COURSE NAME: ROOMS DIVISION MANAGEMENT
SESSION: JUNE 2023
DURATION: 2 HOURS
PAPER:1
MARKS: 100
EXAMINER{S):
MODERATOR:
FIRST OPPORTUNITY QUESTION PAPER
MR. G. CLOETE
MRS. C. SUNDE
INSTRUCTIONS
1.
Answer ALL the questions.
2.
Write clearly and neatly.
3.
Number the answers clearly.
THIS QUESTION PAPERCONSISTSOF_ 4_ PAGES{Including front page)
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Question 1
What do you understand by the following Terms?
(8)
1.1 Exponential Growth
(3)
1.2 Budget
(2)
1.3 Prestige Product Pricing
(3)
Question 2
Contrast and compare the "Price Makers" and "Price Takers' in the hospitality industry and provide
practical examples where possible.
(4)
2.1 Price Makers
2.2 Price Takers
Question 3
Various Hotels may have their own niche markets which are targeted and may decide which business to
accept and not, in order to ensure the Hotel do not loose business. Discuss Displacement!(8)
Question 4
Discuss the factors that need to be taken into consideration when reviewing staffing and training needs
analysis especially in the Front of House and Back of House.
(8)
Question 5
Various methods of Assessing guest satisfaction exist in the Hotel & Tourism Industry! Deliberate how
you as the Rooms Division Manager of a unit ascertain guest satisfaction?
(4)
Question 6
To Develop Market Segmentation strategies various rates are dealt with in reservations in the
Hospitality Industry. Critically evaluate the rate segments and offer examples in Hospitality where
necessary.
(10)
Question 7
Discuss the key points to consider when conferences are considered at your Hotel?
(4)
Question 8
Discuss the commitments and responsibilities of a Rooms Division Manager?
(8)
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Question 9
With the focus on front office night audit budgets and targets and the achievement thereof, outline the
desirable features of a daily occupancy and revenue report and give reasons for this!
(8)
Question 10
Control in the Rooms Division is vital and important! Define and explain the Control Process.
(8)
Question 11
The Sales & Marketing Analysis of Windhoek Pension Hotel has reflected that over the last six months
since the Hotel opened, the Hotel's Occupancy during the week were always lower than during the
weekends.
Having visited the Hotel and focusing on the latest trends in planning of Hotels discuss what strategies
you as the Rooms Division Manager would consider to increase occupancies during the week? Please
provide clear examples.
(10}
Question 12
Guests stay in an Hospitality establishments where interior are good looking and convenient, for pleasure
or for necessity and in each case they will require comfort, good food and service which are all
dependent on good planning and organization throughout the establishment. Discuss Modern trends in
planning Hotels.
(8)
Question 13
Calculate the average Room Rate by using the Hubbart Formula.
(10}
NUST's Hotel, a 65- room hotel, is projected to cost N$ 3,900,000. This is inclusive of land, buildings,
equipment, and furniture. An additional N$100,000 is needed for working capital. The Hotel is financed
with a loan of N$ 2,500,000 at 12.0 % annual interest with the owners providing cash of N$1,500,000.
The owners desire a 15 % annual return on their investment. 75% occupancy is estimated: thus 13,687
rooms will be sold during the year.
The income tax rate is 40 %. Additional expenses are estimated as follows:
• Property Tax
N$
• Insurance
• Depreciation
• Administrative & General
• Data Processing
• Human Resources
• Transportation
• Marketing Expense
• Property Operation/ Maintenance
• Energy costs
12,000
20,000
30,000
20,000
40,000
20,000
21,000
24,000
32,000
18,000
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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$ 17.00 per room sold.
Calculation of Average Room Rate
Item
Desired net income
Pretax income
Calculation
Owners Investment. x ROI
= Net income/ 1-t
Amount
225,000
'"k.. " . ,'rGJ.t;i;.&'.. '1-:'l'I>i.:("'k-. :-t..,..&. i__,_. ....'Iii,
(a) .............
Interest Expense
Income before interest & = Principal x interest .rate x
Taxes
time
(b )............
(c) ............
Estimated
depreciation,
property taxes
Income before fixed charges
Undistributed
operating
expense
Required Operated dept's
income
Dept results exclude rooms
Less: Food
: Rentals & Other Income
Plus: Telephone Department
Loss
Rooms Department Income
Rooms Department Direct
Expense
Rooms Revenue
13687 X ............
Required Average Room rate
X 18 =
(d) ............
(e) ...........
1751000
(f) .........
);~~~·~.~1 •1J.~-~3c,,~,-;-k.~;..~-~;.~..';~" ,.,,
(150,000)
(g) ......
501000
(h) .........
3021493
(i) .......
13687.00
(j) ......
/10
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