BHM TU 4th Semester Front Office Management

Front Office Management Year 2016 Question Paper

Front Office Management Year 2017 Question Paper

Front Office Management Year 2018 Question Paper

Front Office Management Year 2019 Question Paper

Front Office Management Year 2021 Question Paper

Front Office Management Year 2023 Question Paper

Solved Solution

Solution of Year 2016 Question Paper

  1. Mention any four different PMS used in hotels worldwide.
    → The four different PMS used in hotels worldwide are:
    a. Opera by Oracle
    b. Amadeus Hospitality
    c. Protel
    d. Guestline

    Extras for you:
    e. Maestro PMS
    f. RMS Cloud
    g. Cloudbeds
    h. InnQuest RoomMaster
    i. Clock PMS
    j. WebRezPro
  2. Write down four measures for credit control in hotel.
    → Any four measures for credit control in hotel are:
    a. Setting credit limits
    b. Requiring deposits or pre-authorizations
    c. Screening guests for creditworthiness
    d. Inform credit departments for proper authority
    e. Prepare of high balance report by night auditor daily

  1. Show the differences between guest ledger and city ledger.
    → The differences between guest ledger and city ledger are:
BasisGuest LedgerCity Ledger
PurposesRecords transactions for individual guests’ stays.Records transactions for non-guest entities.
ChargesRoom rates, room service, minibar, laundry, etc.Room charges, banquet fees, catering, etc.
SettlementSettled by the guest upon checkout.Payment on credit terms or invoiced periodically.
Payment TermsTypically immediate settlement.Extended payment terms or credit arrangements.
Control MeasuresGuest settles directly; less credit risk.Requires credit control due to extended payment terms.
  1. Enlist any two important rules for accepting the credit card for settlement of bill.
    → Any two important rules for accepting the credit card for settlement of bill are:
    a. Verify Card Details: Ensure the credit card information provided is accurate and matches the guest’s identification.
    b. Check Card Validity: Confirm that the credit card has not expired and is valid for use.
  2. List any two tactics followed to promote room sales during peak seasons.
    → Any two tactics followed to promote room sales during peak seasons are:
    a. Loyalty Programs
    b. Package Deals:
    Offer attractive packages that bundle accommodations with additional services or amenities, such as meals, spa treatments, or local tours, to entice guests during peak seasons.
    c. Early Booking Discounts: Encourage guests to book their stays in advance by offering discounted rates for reservations made well ahead of the peak season dates.
  3. List any two basis of forecasting the room availability.
    → Any two basis of forecasting the room availability
    a. Historical data like past occupancy rates, booking patterns, and trends helps in forecasting future room availability. This includes looking at data from previous peak seasons, holidays, and special events.
    b. Seasonal Variations: Considering seasonal fluctuations in demand is crucial. Peak seasons, off-peak periods, and shoulder seasons all influence room availability forecasts.
  4. Name four formats used for controlling the sales of room in hotel.
    → Any four formats used for controlling the sales of room in hotels are:
    a. Yield Management Reports
    b. Weekly Sales Analysis
    c. Daily Sales Report
    d. Room Reservation Form
  5. How do you Calculate ADR?
    → We calculate Average Daily Rate (ADR) by using
    ADR = Rooms Revenue / Number of Rooms Sold
  6. Mention two disadvantages of using VTL.
    → The two disadvantages of using VTL are:
    a. Storage Problems: Since the VTL is loose, there is a greater chance of missing and misplaced information.
    b. Wrong Posting: As there are too many numbers of columns it is highly congested to enter higher monetary value which might result in errors.
  7. Give the meaning of following terminologies:

    a. Early Bird
    → “Early bird” refers to a person who arrives or acts before others, often to take advantage of a special offer, discount, or opportunity. In a broader sense, it can also refer to someone who starts something earlier than usual or ahead of schedule.

    b. VDD
    → “VDD” refers to the Virtual Departure Date, which signifies the anticipated date when a guest is expected to check out of the hotel.
  8. Why night audit is necessary? Explain the function of night audit.
  9. Define room rate. What factors should be considered while determining room rates?
    → Room rate can be defined as the price charged by hotel or other lodging establishment for accommodation for a specific time period, which is paid by the guest in hotel.

    The factors that should be considered while determining room rates are:
    a. Cost
    b. Level of Service
    c. Amenities
    d. Competition
    e. Target Market
    f. Location of hotel or establishment
  10. Prepare the format of travel agency voucher and explain its purpose in hotel.
  11. Make notes on RevPAR and yield statistics.
  12. Describe VTL and explain its’ posting procedures.
  13. What is budget? Briefly explain the factors for planning, the budget.
  14. What are the modes of bill settlement? Explain the procedures to be followed in settlement of bills through cash mode.
  15. Define yield management and describe elements of yield management.

Solution of Year 2017 Question Paper

  1. Enlist two importance of VTL.
    → Any two importance of VTL are:
    a. Record Keeping of guest along with their name or agent with the room number
    b. Billing and Payments: By monitoring visitor expenditures including accommodation costs, extra services, and additional costs, it makes the billing process easier. This makes it easier to guarantee correct billing and effective payment collection.
  2. Mention any two benefits of yield management.
    → Any two benefits of yield management:
    a. Improved forecasting
    b. Improved seasonal pricing and inventory decisions
    c. Identification of market segment demands
    d. Maximizing revenue
    e. Competitive advantage as hotels that effectively implement yield management gain a competitive advantage in the market.
  3. List any two duties and responsibilities of a night auditor.
    →Any two duties and responsibilities of a night auditor are:
    a. Establishes the hotel day end
    b. Guest Credit Monitoring
  4. Write down any four methods for credit control in a hotel.
    → Repeated from Year 2016, Question number 2 (Please refer back to that year)
  5. How do you calculate AGR?
    → We calculate AGR (Average Rate per Guest) by
    AGR= Rooms Revenue / Number of Guests
  6. Mention any two basis Of forecasting the room availability.
    →Any two basis of forecasting the room availability are:
    a. Number of expected room arrivals
    b. Number of out of order rooms
    c. Number of reservations
    d. Number of room under-stays
    e. Number of room overstays
  7. Point out any two important rules for accepting the personal cheque.
    → Any two important rules for accepting the personal cheque.
    a. Verify guest identification: Ensure that the guest’s identification matches the name on the check.
    b. Confirm the validity of the check: Check for security features like watermarks, security threads, and holograms.
    c. Check for available funds: Verify with the bank whether the guest has sufficient funds to cover the amount.
    d. Record check details: Document the check number, date, amount, and guest information for record-keeping purposes.
  8. List the elements of yield management.
    → The elements of yield management are:
    a. Segmenting target markets: Identifying and targeting different customer segments with tailored pricing and promotional strategies to maximize revenue.
    b. Pricing Optimization or Price Modification: modifying hotel rates dynamically in response to changes in market conditions and demand in order to optimize revenue.
  9. Name any four types of vouchers used in a hotel.
    → Any four types of vouchers used in a hotel are:
    a. Cash Voucher
    b. Credit Voucher
    c. Paid-out voucher
    d. Allowance voucher
    e. Transfer Voucher
  10. Explain the following terminologies:
    a. Rack Rate
    → Any established standard tariff rate without any discount or negotiated rates is known as rack rate.

    b. Concessionaries
    → Concessionaires are business deals between hotel and their guest providing discounts, complimentary services or upgrade in any service to attract more guest or improve customer satisfaction.
  11. Describe VTL and explain its’ posting procedure.
    → A sort of ledger called a Visitor Tabular Ledger (VTL) is kept at hotels to provide accurate records of all the expenses incurred by overnight guests. It may include room charges, F&B items charges, laundry charges, transport service charges, minibar charges, etc.
    a. Record Charges: Document all charges incurred by the guest during their stay, including room rates, additional services, and any amenities utilized.

    b. Track Payments: Record all payments made by the guest towards their account, whether it’s through cash, credit card, or other forms of payment.

    c. Maintain Accuracy: Ensure that all entries made in the ledger are accurate and reflect the actual transactions that occurred. This helps prevent billing discrepancies and ensures transparency in financial dealings.

    d. Update Regularly: Keep the VTL updated in real-time to provide an accurate reflection of the guest’s account status. This includes promptly recording any new charges or payments as they occur either in room charges, f&b charges or any extra services like minibar, souvenir shop.

    e. Review for Errors: Periodically review the ledger for any errors or discrepancies. This involves cross-checking entries to ensure consistency and accuracy in billing information.

    f. Final Settlement:
    Prepare the final bill based on the information recorded in the VTL. This bill is presented to the guest upon checkout, outlining all charges incurred during their stay and any payments made towards their account.

    g. Archiving or Record Keeping: Completed VTLs are typically archived for record-keeping purposes, providing a comprehensive history of guest transactions and financial activity during their stay.
  12. What format is used for exchanging foreign currencies? Explain the procedure for accepting the foreign exchange.
  13. Prepare a flow chart to represent the Control on sales of food in a hotel.
  14. What is budget? Briefly explain the two factors for planning the budget.
  15. Define room rate. Explain the basis of charging room rates.
    → Room rate can be defined as the price charged by hotel or other lodging establishment for accommodation for a specific time period, which is paid by the guest in hotel.

    The basis of charging room rates are:
    a. Check- in, Check-out basis or 12 Noon: It is applied where C/I or C/O time is fixed at 12 noon.

    b. 24 hour basis: If guest check-in at 1 AM his / her check-out time will be considered 1 AM of another day.

    c. Number of nights basis: Guest is charged on how many nights they spend.

    d. Day Use: It is applied if guest wants to use room for certain hours (not more than 6 hours)

    e. Plan System: Charging guest on whether they are staying on European plan (accommodation only), Continental Plan (bed and breakfast), American plan or modified American Plan
  16. Write down short notes on:
    a. PMS

    b. Front Office accounting
  17. Define yield. Discuss the various Strategies and tactics used to maximize revenue in the hotel.
  18. State and explain the major management functions implemented for successful hotel operation.

Solution of Year 2018 Question Paper

  1. Define VTL and mention any two of its importance.
    → Repeated question from Year 2017, question number 1 and 11 (Please refer back to that year)
  2. List any responsibilities of night auditor.
    → Repeated question from Year 2017, Question number 3(Please refer back to that year)
  3. How do calculate house count?
    → We calculate House count using:

    House count = House count of previous day brough forward – today’s checkout + todays arrivals
  4. List any two rules to be followed for preparing a budget.
  5. Mention any four documents required for front Office accounting.
  6. Mention any four points to be consider for accepting a credit card as a mode Of payment.
  7. Write down any four benefits of yield management.
  8. What are the bases needed to be consider to charging room rate?
  9. Write down the charts used for forecasting room availability.
  10. Explain the term VPO.
  11. Describe briefly the different PMS used in hotels.
  12. Define room rate and explain the methods of establishing room rate.
  13. Explain the functions of night audit in brief.
  14. Highlight on the credit security measures followed in hotel.
  15. Define Budget and explain the responsibility of front office manager for planning budget.
  16. What do you understand by front office accounting? Explain its type.
  17. Define yield management. Mention the various elements of yield management in detail.
  18. Discuss the settlement procedure of guest bill through cash and credit mode in brief.

Solution of Year 2019 Question Paper

  1. What are the bases of charging room rate?
  2. List the factors to be considerable for selecting PMS.
  3. Enlist any two function of night auditor.
  4. Mention any two advantages of yield management software system.
  5. Chronologically mention the function applied by the management.
  6. Write down two advantages and disadvantages of VTL.
  7. List any two rules to be followed for preparing a budget.
  8. Write down any four measures for credit control in hotel.
  9. Mention any four documents required for front Office accounting.
  10. Explain the term City Ledger.
  11. Briefly explain the various factors that affect the establishment Of rates.
  12. Define Budget. Explain the responsibilities of front office manager for planning budget.
  13. What do you understand by front office accounting? Explain its type.
  14. Define VTL. Write down the posting procedure Of VTL.
  15. What do you understand by Forecasting room availability an it’s important.
  16. Draw a format of FEER. Explain the procedure the procedure of, accepting foreign exchange in hotel.
  17. Describe night audit process and mention the various reports prepared during the process.
  18. Define yield and explain the various strategies and tactics implemented for successful hotel standard.

Solution of Year 2021 Question Paper

  1. Enlist the types of folio.
    → The types of folio are:
    a. Guest folio
    b. Master folio
    c. Non guest folio
    d. Employee folio
  2. Explain PMS and VPO.
  3. Define full house.
  4. What is overbooking?
  5. What do you mean by minus position?
  6. Define high balance report.
  7. Write down the formula to calculate occupancy percentage and house count.
  8. What’s hubbart’s formula?
  9. Differentiate between Credit limit and house limit.
  10. Define lead time.
  11. Discuss how PMS increases the efficiency of hotel operation.
  12. Explain foreign currency exchange procedures.
  13. List out the posting procedure of VTL.
  14. Explain the duties and responsibilities Of night auditor.
  15. Explain budgeting & discuss its importance.
  16. Define voucher. Explain its types with uses.
  17. Explain management functions in detail.
  18. Discuss the elements, benefits and challenges of practicing yield / revenue management.

Solution of Year 2023 Question Paper

  1. List two factors affecting budget planning.
  2. Define the term forecasting.
  3. Write down the two disadvantages of VTL.
  4. List down the basis of charging Room rate.
  5. How do you calculate Yield Statistics?
  6. Write down the basic modes Of payment.
  7. What do you understand by the term transfer in front Office accounting?
  8. Mention two night audit reports prepared during Night audit process.
  9. What is Master Folio?
  10. Explain the following terminologies:
    a) Budget

    b) FEER
  11. Define VTL. Write down the posting procedure of VTL.
  12. What is Office accounting. Explain its type.
  13. Describe the factors that need to be considered while establishing room rate.
  14. Who is night auditor? Brief the functions Of night auditor.
  15. What are the room occupancy ratios? Explain.
  16. List down the measures applied for credit security.
  17. Explain the importance of yield management. What are yield management strategies?
  18. Define PMS. Mention the selection criteria of PMS. Explain various software system used in hotel.