DATE:26:03:2020 SL. NO.

01

Course name
3 – YEAR B.Sc. DEGREE IN HOSPITALITY & HOTEL ADMINISTRATION
Semester SEMESTER – II

Subject Name and 153 - FOUNDATION COURSE IN FRONT OFFICE OPERATIONS – II

Code

Name of Faculty Mr. PIYUSH GUPTA

IHM GUWAHATI

Question No -1 What is Introductory rate ?

Four answer option (a) Rates offered to guest using room for few hours

(b) These are the discounts given to the government official travel for official purpose.

(c) Rates offered by new hotels or hotels providing new services to the market.

(d) Resorts usually have separate tariff for peak season and off season, the off-season
rate being much lower.
Correct answer C) Rates offered by new hotels or hotels providing new services to the market.

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answering the
question
Solution of the Question: Special Rates
There are certain circumstances when special reduced rates or discounts may be offered on rack rates. The special rates are:
 Introductory rate: rates offered by new hotels or hotels providing new services to the market or when they are new opened this rate is only for few days.
Some of the special rates are as follows.
 Corporate rates: these are the promotional rates to attract the corporate market segments. These are generally 10 to 20 % below the rack rate.
 Package Rates: It covers all expenses of accommodation, food, transportation, sight-seeing, entertainment, etc. These are normally for a fixed period of time,
e.g. 4 days and 3 nights. These can be meeting, marriage or holiday’s package.
 Seasonal rate: depending on the desirability of a location at a particular time of the year, destination may have a high or a low season and rate also change
accordingly.
 Advance purchase rate: it is a new concept; heavy discounts are given on room booking done in advance. Discounts depend upon advance period and
number of rooms booked.
 Week day and week end rates: hotel occupancy change with regard to the days of the week and rate goes low with decrease in occupancy and goes up with
increase in occupancy, e.g. down town hotels are busy on week day whereas resorts are busy on weekends.
 Day and half day rate: rates offered to guest using room for few hours.

 Tour rates: these are special discounts that are given to wholesalers who operate series of tours for groups arriving and departing together.
 Company Guaranteed Rates (CGR): Companies which give regular guaranteed business to the hotel are given discounts.
 Company volume guaranteed rate (CVGR)-Based on the room night potential of different companies; certain hotels give a special rate to those companies
which contribute a large volume of room nights

 Employee rate- Employees of major hotel chains have a special employee rate for all employees at their member hotels within the chain. This is however
based on the availability of space and policy of the individual hotel.
 Travel agent rate: travel agents provide substantial volume of business to hotels; hence hotels offer them special discounts and commissions.
 Government rates: these are the discounts given to the government official travel for official purpose.
 Educational rate: these are the special rates offered by hotels to students and educationists who have a limited travel budget. They provide a large chunk of
repeat business to hotels.
 Membership rate: rates offered to the guests who are the member of influential organization or memberships offered by hotel that provide volumes of
business to hotels.
 Complimentary rates: these are rates where hotel does not charge the room rent from a guest, these are provided to tour or group leaders, tour operators,
travel agencies, local dignitaries, and media personnel’s.
 Promotional Rates: For publicity and promotion special discounted rates are offered to CIP’s. These discounts are authorized by senior staff members.
References of Book and Chapters or peer reviewed Journals or any other literature in support of the
above answer: Hotel Front Office by Jatashankar R Tewari, Front Office Management by Sk Bhatnagar,
Hotel front office management byJames A. bardi, Internet.

DATE:26:03:2020 SL. NO. 02

Course name
3 – YEAR B.Sc. DEGREE IN HOSPITALITY & HOTEL ADMINISTRATION
Semester SEMESTER – II

Subject Name and 153 - FOUNDATION COURSE IN FRONT OFFICE OPERATIONS – II

Code

Name of Faculty Mr. PIYUSH GUPTA

IHM GUWAHATI

Question No -1 F.H.R.A.I

Four answer option (a) Federation of Hotel and Restaurants Association of India

(b) Federation of hospitality and Restaurants Association of India

(c) Federation of hospitality and research Association of India

(d) None of the above
Correct answer a) Federation of Hotel and Restaurants Association of India

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answering the
question
Solution of the Question
F.H.R.A.I. DISCOUNT: The Federation of Hotel and Restaurants Association of India (F.H.R.A.I) is a major association of
hotels and restaurants in India. As a gesture of goodwill for members of the same fraternity, the association issues
membership cards to the Proprietor / Partners / Chairman / M.Ds of these establishments, which entitles them to a
special discount( presently 30% on room rent, food and beverage (excluding liquor), if paid by cash and 25% if settled
through a credit card. The percentage of discount and other conditions are subject to change).
Established in the year 1955, FH RAI was sponsored by the four Regional Associations representing the Eastern,
Northern, Western and Southern regions of India. The Memorandum of Association was signed by the doyens of the
Industry on 15th April, 1955:
References of Book and Chapters or peer reviewed Journals or any other literature in support of the
above answer: Hotel Front Office by Jatashankar R Tewari, Front Office Management by Sk Bhatnagar, Hotel
front office management byJames A. bardi, Internet.
DATE:26:03:2020 SL. NO. 03

Course name
3 – YEAR B.Sc. DEGREE IN HOSPITALITY & HOTEL ADMINISTRATION
Semester SEMESTER – II

Subject Name and 153 - FOUNDATION COURSE IN FRONT OFFICE OPERATIONS – II

Code

Name of Faculty Mr. PIYUSH GUPTA

IHM GUWAHATI

Question No -1 Hubbart Formula is used for

Four answer option (a) It is used to determine the proper average rate to set for restaurant menu.

It is used to determine the proper average rate to set for rooms in a given hotel.
(b)

It is used to calculate number of pax in the hotel.

(c)
None of the above
(d)
Correct answer b) It is used to determine the proper average rate to set for rooms in a given hotel.

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answering the
question
Solution of the Question
Hubbart Formula is a bottom-up approach to pricing rooms introduced by Roy Hubbart in 1940. This
approach considers operating costs, desired profits, and expected number of rooms sold to determine the
average rate per room.
References of Book and Chapters or peer reviewed Journals or any other literature in support of the
above answer: Hotel Front Office by Jatashankar R Tewari, Front Office Management by Sk Bhatnagar,
Hotel front office management byJames A. bardi, Internet.
DATE:26:03:2020 SL. NO. 04
Course name
3 – YEAR B.Sc. DEGREE IN HOSPITALITY & HOTEL ADMINISTRATION
Semester SEMESTER – II

Subject Name and 153 - FOUNDATION COURSE IN FRONT OFFICE OPERATIONS – II

Code

Name of Faculty Mr. PIYUSH GUPTA

IHM GUWAHATI

Question No -1 This method sets the rate of a room at Rs.1/- for each Rs.1000/- of construction
and furnishings cost per room assuming a 70 percent occupancy.
Four answer option (a) Hubbart Formula Approach

The Rule-of-Thumb Approach

(b)

( Market Condition Approach

c)
( None of the above
d)
Correct answer b) The Rule-of-Thumb Approach

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answering the
question
Solution of the Question
2. The Rule-of-Thumb Approach
This method sets the rate of a room at Rs.1/- for each Rs.1000/- of construction and furnishings cost per room
assuming a 70 percent occupancy. For example, if the average construction cost of a hotel room is
Rs.80000/-, the average room rate will be Rs.80/- according to this method. The emphasis on the hotel’s
construction cost fails to consider the effects of inflation. It also fails to consider the contribution of other
facilities and services towards the hotel’s desired profits. The rule-of-thumb approach should also consider
the hotel’s actual occupancy level instead of a fixed 70 percent occupancy.

References of Book and Chapters or peer reviewed Journals or any other literature in support of the
above answer: Hotel Front Office by Jatashankar R Tewari, Front Office Management by Sk Bhatnagar,
Hotel front office management byJames A. bardi, Internet.
DATE:26:03:2020 SL. NO. 04
Course name
3 – YEAR B.Sc. DEGREE IN HOSPITALITY & HOTEL ADMINISTRATION
Semester SEMESTER – II

Subject Name and 153 - FOUNDATION COURSE IN FRONT OFFICE OPERATIONS – II

Code

Name of Faculty Mr. PIYUSH GUPTA

IHM GUWAHATI

Question No -1 The price at which the hotel rooms are sold before applying
discount.
Four answer option (a) Tour rates

Tariff card
(b)

( Fixed Rates
c)
( None of the above
d)
Correct answer d) None of the above

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question
Solution of the Question
RACK RATE: hotel design a standard rate for each category of rooms offered to the guest. These are the
highest possible rate for each category of rooms It is price at which the hotel rooms are sold before applying
discount.

References of Book and Chapters or peer reviewed Journals or any other literature in support of the
above answer: Hotel Front Office by Jatashankar R Tewari, Front Office Management by Sk Bhatnagar,
Hotel front office management byJames A. bardi, Internet.