HOTS Problem Solving Questions

Please read the following scenario and answer the questions below. Mark only one option for each question.

Hotel Royale has experienced a drop of business over the last year resulting is a loss of $500,000. The General Manager is very concerned and has asked for your advice to assist in improving the hotel’s profit in a number of areas of the hotel operations.

6. In order to improve the hotels profit, I would first recommend to:

  • Increase the room rate
  • Decrease the number of staff
  • Decrease expenses
  • Evaluate the target markets and hotel product
  • Increase advertising

7. Which are the two key components of revenue management…

  • Monitoring rates and monitoring room sales
  • Allowing overbooking and managing late bookings
  • Discounting rooms and offering packages
  • Forecasting and monitoring rooms sales
  • Monitoring expenses and revenue

8. The Marketing Manager’s responsibility is to…

  • Manage front office operations
  • Promote and advertise the hotel
  • Discount the hotel to sell more rooms
  • Monitor room occupancy
  • Implement sustainability initiatives

9. Revenue management is important because…

  • Hotel rooms are perishable
  • The hotel needs to make a profit
  • Hotels can increase their inventory
  • Customers book in advance
  • Rates constantly change

10. If the General Manager decides to sack staff, what is the most important possible outcome…

  • A reduction in expenses
  • A reduction in service quality
  • A reduction in staff turnover
  • A reduction in staff training
  • A reduction in occupancy

11. Which of the following occurred to Hotel Royale’s Balance Sheet when their conference centre was built last year?

  • Their expenses increased
  • Their short term debt increased
  • Their total assets increased
  • Their revenue increased
  • Their staffing increased

12. This month, Hotel Royale has $200,000 cash as bank, $100,000 in accounts payable and $50,000 in accounts receivable, how much money does the hotel have at the end of the month?

  • $100,000
  • $150,000
  • $200,000
  • $250,000
  • $300,000


  • These problem solving questions are intended to test cognition prior to the simulation and are specific to each simulation.