Term
The Gray Line bus company offers bus tours in various cities throughout the United States. Gray Line is included in which of the following components of the travel and tourism industry:
A. Ground transportation C. Travel mart
B. Hospitality D. Wholesale distribution |
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Definition
A
Ground transportation. This component includes bus companies, car rental companies, railroads, taxis, and limousines. The hospitality industry includes accommodations, resorts, restaurants, and convention centers. The travel mart includes retail travel agencies, business travel departments, and travel clubs. The wholesale distribution component buys products from the other components and sells them through retail travel agencies. |
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Term
The Civil Rights Act of 1964 was intended to prevent __________ in the workplace.
A. discrimination C. aggression
B. hazardous conditions D. unequal pay |
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Definition
A
Discrimination. The Civil Rights Act of 1964 prohibits discrimination in the workplace because of a person's race, religion, creed, sex, age, or national origin. It is illegal for businesses to take these factors into consideration when hiring, promoting, compensating, training, or firing employees. The intent of the Civil Rights Act was to give all qualified people an equal opportunity to obtain and keep employment. The Occupational Safety and Health Act of 1970 regulates hazardous conditions in the workplace. The Equal Pay Act of 1963 states that men and women performing equal jobs must be paid equal wages. The Civil Rights Act does not prevent aggression in the workplace. |
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Term
Which of the following types of business organizations reduces or limits the risk of its stockholders:
A. Franchise B. Sole proprietorship C. Corporation D. Partnership |
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Definition
C
Corporation. A corporation, which is owned by its stockholders, limits the losses or risks to the amount each individual owner has invested in the corporation. The other types of business organizations are not owned by stockholders. A partnership usually divides the risk among two or three partners. In a sole proprietorship, the owner generally assumes all of the risk. A franchise is a contractual agreement between a parent company and a franchisee to distribute goods and services. |
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Term
A benefit to travel and tourism businesses that use electronic data interchange (EDI) systems is
A. fewer packing errors. C. higher stock turnover.
B. competent intermediaries. D. effective inventory management. |
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Definition
D
Effective inventory management. An electronic data interchange (EDI) system automatically transmits a travel and tourism business's sales information to its vendors via computer, which allows the vendors to quickly process the business's orders. The EDI system helps reduce telephone calls and paperwork. EDI systems help businesses to effectively and efficiently manage their inventories, which is a benefit to the companies that use these types of systems. Using an EDI system does not necessarily increase the intermediaries' competency levels, lead to higher stock turnover, or reduce packing errors. |
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Term
What type of law is violated when a supplier requires intermediaries to enter into tying agreements?
A. Antitrust B. Probate C. Zoning D. Infringement |
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Definition
A
Antitrust. A tying agreement is an illegal arrangement that occurs when a business requires a customer to buy other products in order to obtain the goods and services that the customer really wants. To protect individuals and businesses, many governments develop regulations known as antitrust laws that protect individuals and businesses from unfair practices that restrain trade and competition. Probate laws involve estate issues. Zoning laws regulate property uses. Infringement laws address intellectual property issues. |
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Term
To maintain positive relationships, all distribution channel members must
A. have equal power. C. develop competing goals.
B. limit ongoing communication. D. coordinate their efforts. |
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Definition
D
Coordinate their efforts. Distribution channel members are the businesses or individuals who assist in moving goods and services from the producer to the consumer. So consumers get the products they want when they need them, the channel members must work together, or coordinate their efforts to efficiently transfer goods and services. This involves fostering positive relationships, which requires open, ongoing communication to accomplish the common goal of satisfying the customer. In most situations, the distribution chain has a channel leader (e.g., producer) that possesses more power or leverage than the other channel members. |
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Term
When Christy, an employee at a large airline, wants to talk with several members of the airline's staff on the telephone at the same time, she could use a service called
A. call forwarding. C. speed calling.
B. call waiting. D. conference calling. |
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Definition
D
Conference calling. Conference calling can include a number of persons at different locations and is frequently used for business discussions. Call waiting lets the telephone user know someone else is trying to get a call through to that number. The call forwarding feature allows for incoming calls to be transferred to other phone lines. Speed calling allows the caller to dial frequently used telephone numbers with a code that consists of just one or two numbers. |
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Term
The travel agent tried to write a promotional letter that was simple, clear, and interesting so that customers who received it would
A. ask what it really meant. C. find it entertaining.
B. need to read it many times. D. easily understand it. |
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Definition
D
Easily understand it. Effective written communications are those that are presented clearly, in simple language, and in an interesting style so that readers will easily understand the message. Written business messages do not need to be entertaining. When written communications are unclear, complicated, or difficult to understand, readers tend to lose interest and ignore them. Readers should not have to read written communications many times to find out what they really mean. |
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Term
When giving employees directions for performing complex assignments, it is often effective for managers of tour companies to
A. describe the work quickly. C. use technical language.
B. explain one part of the job at a time. D. assume that employees understand the process. |
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Definition
B
Explain one part of the job at a time. Managers often need to give employees directions for performing complex assignments. In those situations, it is often effective to explain one part of the job at a time, make sure employees understand, then explain the next part, and so on. This method gives employees the opportunity to ask questions about each part of the job and understand what is expected of them before learning about the next part of the assignment. Managers should use technical language only if it is appropriate and they are sure that all employees will understand. Describing the work quickly often makes it difficult for employees to understand or to be able to ask questions. Managers should not assume that employees will understand the process, especially if the assignment is complex or new. |
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Term
When confirming a hotel reservation for a client, a travel agent must be sure to
A. ask how large the hotel is. C. find out how large the parking lot is.
B. get a confirmation number. D. ask the room number the client will be staying in. |
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Definition
B
Get a confirmation number. This number is necessary if any changes need to be made in accommodations. You or the client will also use this number to call for confirmation of accommodations a few days before arrival. The hotel will assign the room number and give it to the guest upon arrival. The size of the hotel or the parking lot is irrelevant to the confirmation. |
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Term
A cruise line develops policies to guide the way employees act because the way employees treat customers affects the cruise line's
A. inventory. B. credit. C. capital. D. image. |
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Definition
D
Image. Employees are the first contact customers have with a cruise line, and the impression they make affects the customers' image of the cruise line. Cruise lines have policies that explain how employees are to act and how they are to deal with customers in order to present a good image. Credit is the ability to obtain products based on a promise to pay later. Capital is the assets of a business. Inventory is all the stock that a business has on hand. |
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Term
"I think I'll wait until Saturday to book this trip," is a statement that best characterizes the __________ customer.
A. domineering/superior C. dishonest
B. slow/methodical D. disagreeable |
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Definition
B
Slow/Methodical. These customers are often hesitant to make buying decisions even when goods/services are wanted or needed. They require a lot of time to make a final buying decision. You'll find that these customers frequently examine products several times on different occasions before deciding to buy. Disagreeable customers are unpleasant and hard to help. Domineering/Superior customers are overly confident and feel they know more and are better than the average person. Dishonest customers intentionally attempt to avoid paying part or all of the price for a good or service. |
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Term
It is important for tour operators to prepare and forward rooming lists to hotels before a tour begins so the hotel will have time to
A. hire additional employees. C. assign rooms to passengers.
B. clean the reserved rooms. D. purchase a supply of towels. |
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Definition
C
Assign rooms to passengers. Before a tour departs, tour operators prepare a list of passengers and forward the list to the hotels that will be used on the tour. The purpose of forwarding a rooming list is to give the hotels sufficient time to assign the appropriate rooms to passengers. Some passengers may be traveling alone and want a single-occupancy room while other passengers may prefer a double room or a room that is large enough to accommodate a crib for a baby. Hotels need to know the number of passengers and the type of room requested before passengers arrive in order to assign the correct room to each passenger. Hotels routinely clean all rooms and have a sufficient supply of towels in stock. Hotels usually do not need to hire additional employees to accommodate a tour group. |
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Term
What type of product utility is created for consumers by credit cards, charge accounts, and installment loans?
A. Time B. Place C. Form D. Possession |
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Definition
D
Possession. Possession utility is usefulness created when ownership of a product is transferred from the seller to the user. All forms of credit provide possession utility by enabling consumers to purchase products without waiting until they have accumulated the entire purchase price. Form utility is usefulness created by altering or changing the form or shape of a good to make it more useful to the consumer. Place utility is usefulness created by making sure that products are available at the place where they are needed or wanted by consumers. Time utility is usefulness created when products are made available at the time they are needed or wanted by consumers. |
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Term
Travel and tourism businesses that contribute money to local educational, cultural, and training programs are showing social responsibility to their
A. communities. C. customers.
B. employees. D. stockholders. |
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Definition
A
Communities. Social responsibility is the duty of business to contribute to the well-being of society. Many of the decisions that business owners make affect not only the business but the community in which the business exists. One way that travel and tourism businesses demonstrate social responsibility to their communities is by contributing money to local educational, cultural, and training programs. Travel and tourism businesses use other methods to demonstrate social responsibility toward their employees, customers, and stockholders. |
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Term
The government's mandating the use of unleaded gas in new cars is an example of
A. stabilizing the economy. C. protecting the environment.
B. protecting specific businesses. D. providing public goods. |
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Definition
C
Protecting the environment. Unleaded gas is less harmful to the environment than leaded gas. Specific businesses are protected through subsidies or price supports. Public goods are items used by all people regardless of whether they can pay for them. The economy is stabilized through the government's monetary and fiscal policies. |
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Term
A person who sells cruises as a travel agent and can also sell group convention services for a major city is an example of
A. ease of transferring to other like jobs. C. simplified worker training.
B. increased quality of work. D. decreased level of skill. |
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Definition
A
Ease of transferring to other like jobs. Because of an employee's acquired knowledge and skill, it will probably be easier for that employee to transfer to a similar job. Increased level of skill occurs as an employee becomes more familiar with his/her job. An increase in the quality of work occurs as an employee's skill level increases. Simplified worker training makes it easier for an employee to learn a job task. |
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Term
All night-shift workers at the Gates Hotel have reported for work, but they are refusing to do their assigned jobs. What kind of pressure strategy is being used by the workers?
A. Injunction C. Lockout
B. Sit-down strike D. Sympathetic strike |
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Definition
B
Sit-down strike. A sit-down strike is a pressure strategy in which employees stay on the job but refuse to work. A sympathetic strike is a pressure strategy in which employees of one local union walk off the job to support another union that is on strike. An injunction is a court order used by management to prohibit certain acts, such as picketing. A lockout is a pressure strategy used by management in which management temporarily closes a business and stops production. |
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Term
Which of the following often has a negative impact on a business's purchasing power:
A. Credit C. Subsidy
B. Inflation D. Utility |
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Definition
B
Inflation. Inflation is a rapid rise in prices that may occur when demand exceeds supply or when productivity declines and costs of labor go up. When prices increase, a business's purchasing power decreases because it costs more to buy goods and services. As a result, the business is able to buy less. For example, if the prices of supplies rise and the business only has a set amount of money to spend on supplies, it will not be able to purchase as many supplies. Then, the business might rely on credit to obtain the funds they need to buy goods and services. Subsidy and utility usually do not have a negative impact on a business's purchasing power. |
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Term
Large travel agencies often build teams to solve problems, which involves giving __________ to the team.
A. insight C. authority
B. compensation D. leadership |
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Definition
C
Authority. Authority is the power to influence or control the opinions or behavior of others. If businesses build teams to solve problems, the team often has the authority not only to find a solution but to implement it. Travel agencies realize that it may be pointless to build a team and give it the mission of solving a problem if the team does not have the authority to put the solution into effect. Also, teams often have the authority to ask for additional information or resources to complete their task or to spend money if necessary. Compensation is wages or salary. Insight is the "aha" moment when an answer comes to you. Leadership is the ability to guide or direct the actions of others in a desired manner. |
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Term
Which of the following is not necessarily an attribute of leadership:
A. Creativity C. Willingness to learn
B. Quiet strength D. Openness to change |
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Definition
B
Quiet strength. Quiet strength is not necessarily an attribute of leadership, although there are probably leaders with this quality. Creativity, a willingness to learn, and being open to change are attributes common among effective leaders. |
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Term
Which of the following helps employees to develop positive working relationships:
A. Human relations skills C. Formal education
B. Speech habits D. Personal grooming |
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Definition
A
Human relations skills. Human relations are the ways that people form and conduct relationships with one another. Skill in human relations helps employees to develop positive working relationships with each other and to achieve success on the job. Personal grooming, speech habits, and formal education are other factors that can contribute to job success. |
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Term
An individual or a travel agency that borrows money by signing a promissory note is obtaining a(n)
A. unsecured loan. C. secured loan.
B. regular credit account. D. travel and entertainment card. |
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Definition
A
Unsecured loan. To obtain an unsecured loan, the borrower does not pledge anything s/he owns as security to guarantee that the loan will be repaid. Instead, the borrower signs a written promise to repay the loan. Secured loans require borrowers to guarantee repayment by pledging collateral. Regular credit accounts and travel and entertainment cards are used to purchase goods and services rather than to borrow money. In addition, these credit users agree to the terms for payment, credit limits, and interest as specified by the credit provider. |
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Term
Many tourist attractions rely on some type of financing in order to obtain the funds necessary to market
A. seasonal items. C. capital goods.
B. fixed assets. D. raw materials. |
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Definition
A
Seasonal items. Businesses that market seasonal items often need to obtain financing in order to purchase those items for resale. Tourist attractions (e.g., lighthouses, historical properties) need to increase their inventory of seasonal items at certain times of the year, but often do not have the available cash to do so. They often rely on short-term financing to acquire seasonal items, knowing that they will be able to repay the loans after the seasonal items have been sold. Fixed assets are items of value a business owns that are not expected to change. Capital goods are all materials used in the production of goods and services. Raw materials are items in their natural state or condition. |
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Term
When a tour wholesaler purchases an insurance policy, it is agreeing to the terms of a
A. contract. C. premium.
B. charter. D. policyholder. |
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Definition
A
Contract. Insurance is a contractual agreement in which one company (insurer) will pay for specified losses incurred by the other company (insured) in return for installment payments (premiums). Insurance is a legal contract which may be terminated if the business fails to pay the agreed-upon payments or to live up to the other terms of the contract. For example, a business may be required to maintain the facility in good condition so it is safe. When a business purchases an insurance policy, it is not agreeing to the terms of a charter. A premium is the installment payment. The business is the policyholder. |
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Term
Calculate the amount due on an invoice for a cruise that costs $789 if the customer pays within 10 days and receives a 5% discount.
A. $729.75 C. $749.55
B. $739.45 D. $759.65 |
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Definition
C
$749.55. Cruise lines frequently offer discounts if customers pay several months in advance. If a travel agent books a cruise for a customer and the customers pays within the specified time, the customer may take the discount. In this example, calculate the amount due on the invoice by first determining the discount ($789 x 5% or .05 = $39.45). Then, subtract the discount from the cost of the cruise to determine the amount due ($789.00 - $39.45 = $749.55). |
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Term
Marginal analysis is a cost/benefit decision process that seeks to determine
A. the best qualities to look for in potential employees.
B. how a manager can cut costs.
C. the likely returns on a new investment.
D. profit-maximizing quantity of output. |
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Definition
D
Profit-maximizing quantity of output. Marginal analysis compares marginal cost and marginal revenue to determine the amount of output that produces the greatest profits. It does not help determine how a manager can cut costs. Although it might help an investor to choose among investments, it does not determine the likely returns on a particular, new investment. And, although it might help determine the optimal number of employees, it does not determine the best qualities to look for in potential employees. |
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Term
Studying the business's profit-and-loss statement can tell a business owner the
A. amount of cash on hand. C. rate of return on sales.
B. value of the business's assets. D. value of current inventory. |
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Definition
C
Rate of return on sales. The profit-and-loss statement is also called the income statement because it shows the business's income from sales. The business can determine the rate of return on sales by dividing net sales into net profit, which is also shown on the profit-and-loss statement. All of the other alternatives are categories of information that would be found on a business's balance sheet. |
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Term
Most businesses must collect sales tax on the products that they sell to final consumers and
A. turn it over to the state and local governments.
B. send all of it to the federal government.
C. keep tax money separate in the register.
D. use the tax to increase their profits. |
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Definition
A
Turn it over to the state and local governments. Sales tax laws vary from state to state. In some states, businesses collect sales tax for city government as well as for the state and the county. Excise taxes are collected on only a few products and paid to the federal government. Businesses are not required to keep the tax monies they collect in a separate location, but they must keep a record of the taxes so that they turn in the correct amount. Since the money belongs to the government, not the business, taxes do not increase profits. |
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Term
A tour operator obtaining information about a prospective customer's employment and payment history is an example of
A. running a credit check. C. developing a mailing list.
B. preparing a personal profile. D. organizing a client database. |
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Definition
A
Running a credit check. Tour operators who plan to extend credit to customers usually run a credit check beforehand because they want to know if customers are financially able to pay. Running a credit check involves obtaining information about a customer's employment and payment history from a credit reporting agency. This information will indicate if the customer regularly pays bills on time, has a history of handling debts responsibly, and has steady employment. After running a credit check, a tour operator will decide if a customer is a good credit risk. A personal profile contains information about a customer's travel preferences. A tour operator needs a customer's name and address to develop a mailing list. A tour operator might add credit information to a client database, but obtaining the information is not part of organizing a database. |
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Term
When interviewing job applicants, why is it important to ask open-ended questions?
A. To shorten the interview process C. To obtain in-depth information
B. To check for understanding D. To generate short answers |
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Definition
C
To obtain in-depth information. To obtain in-depth answers to questions, it is always best to use open-ended questions when interviewing job applicants. An open-ended question is not a type of question that requires a simple "yes" or "no" answer. An example of an open-ended question is, "What do you like best about your current job?" This type of question requires the applicant to provide a detailed explanation. Assumptive questions check for understanding. The asking of open-ended questions usually lengthens the interview process and generates long answers. |
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Term
The first day on the job, a new travel-agency employee was given information about job duties, introduced to coworkers, and assigned to a senior worker. This employee has received a(n)
A. performance evaluation. C. attitude survey.
B. exit interview. D. job orientation. |
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Definition
D
Job orientation. Many organizations, particularly larger ones, provide job orientation for all employees to help them learn their new jobs quickly. An exit interview is a discussion with an employee who is leaving the company. An attitude survey assesses the way employees think or feel about their work environment. A performance evaluation rates an employee's job performance so that s/he knows what is satisfactory and what, if anything, needs improvement. |
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Term
In which instructional method is a person identified to succeed his/her superior and learn job-knowledge skills from that person?
A. Junior board C. Understudy
B. Role-playing D. Management games |
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Definition
C
Understudy. The understudy method gives the trainee a chance to learn the necessary skills without having to be responsible for the results. It assures that there will be trained managers/supervisors ready to fill positions as they are vacated. However, the understudy method can frustrate trainees who cannot advance into higher level positions until they are vacated. With role-playing, trainees are given parts to play in a situation, but no script is provided. Management games involve the use of competitive teams in resolving hypothetical business situations. A junior board of directors, composed of mid-level managers, discusses any problem that the senior board would discuss. |
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Term
What category of complaint is illustrated in the following situation: A travel-agency employee complains that too much work is being delegated to entry-level employees.
A. Supervision/Management C. Coworkers
B. Company policies D. Physical surroundings |
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Definition
A
Supervision/Management. Employees often complain about the management of an organization and the ways in which employees are supervised. Delegation of work is the responsibility of management/supervisors. Company policies are established by managers to ensure efficient business operation. Complaints about coworkers may be job related, nonwork related, or about the habits of other employees. Complaints about work environments are categorized as physical surroundings complaints. |
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Term
Marriott Corporation is designing policies that its employees must follow when traveling on company business. Which of the following policies would be important for the company to include:
A. Employees may use any travel agency they wish or the in-house travel department.
B. Employees should make hotel reservations with hotel chains that offer corporate rates.
C. Employees may rent any size car they wish; excessive rates will be billed to the employees.
D. All employees are permitted to fly first class for international flights exceeding seven hours. |
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Definition
D
All employees are permitted to fly first class for international flights exceeding seven hours. Even though senior management is generally afforded first class travel, this organization will allow all employees to fly first class for flights that meet the guidelines. Marriott employees would be expected to stay at Marriott properties. Most companies specify car sizes that may be used for ground transportation. There would be no need to use a travel agency when the company has an in-house travel department. |
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Term
Francis Cruise Lines has asked you to make recommendations for new hardware and software to replace the existing marketing-information system. What should you recommend?
A. Software that is secure and accessible only to you
B. Software that decision makers can use with minimum training
C. The largest system available for future expansion
D. Software that everyone in the company can use to collect and process data |
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Definition
B
Software that decision makers can use with minimum training. Decision makers must be able to define the situation and get information quickly in order to make good decisions. Software that everyone can use will pollute the data. Since cruise lines' needs vary, you may not want to recommend that the cruise line purchase a large system. A system that depends on one person does not allow for other perspectives and could bring an organization to a halt if that person left. |
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Term
In order to be of benefit to a travel agency, marketing research needs to be
A. widespread. C. extensive.
B. expensive. D. accurate. |
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Definition
D
Accurate. Information gathered by marketing research is used by the travel agency in making many different kinds of decisions. The results of the research must be as accurate as possible in order to help the travel agency make good decisions. Inaccurate research could cause the travel agency to make serious mistakes. The research does not necessarily need to be extensive, or widespread, in order to be useful, and the methods used do not need to be expensive. |
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Term
How might a tour company use the information in salespeople's lost-business reports that indicates that clients are dissatisfied with the tour company's credit policies and service?
A. To identify its target market C. To revise its marketing strategy
B. To change its operating goals D. To update its promotional techniques |
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Definition
C
To revise its marketing strategy. A tour company monitors lost-business reports because they usually contain an explanation of why clients no longer buy from the tour company. The reports might indicate that clients are dissatisfied with the tour product, dissatisfied with the tour company's credit policies, or are getting better prices and better service from competitors. A tour company might use this information to make changes to its marketing strategy in an attempt to regain clients or to prevent other clients from taking their business elsewhere. The more information a tour company obtains from lost-business reports, the better able it is to make useful and effective marketing decisions. Tour companies do not use the information in lost-business reports to change their operating goals, identify their target markets, or update their promotional techniques. |
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Term
Which of the following is an example of a cruise line developing a code for answers to survey questions in order to process and analyze marketing information:
A. Each answer has a specific numeric value.
B. Questions are numbered in chronological order.
C. Each survey contains an identification number.
D. Results are tabulated according to date received. |
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Definition
A
Each answer has a specific numeric value. Cruise lines often develop surveys to obtain marketing information. To process and analyze that information, cruise lines often develop a code for the answers to survey questions. Coding is the process of assigning a numeric value to the various responses on a marketing questionnaire or survey. For example, there are five possible answers to a question and the first answer has a numeric value of one. The second answer has a numeric value of two, the third answer has a numeric value of three, and so on. By using a code, cruise lines can quickly process the results to determine which response is selected the most or the least. Coding does not involve numbering questions in chronological order, or tabulating results according to date received. Although each survey may contain a unique identification number, that is not an example of coding. |
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Term
What type of database system would a travel agency use in order to organize marketing data according to many variables?
A. Relational C. Informative
B. Sequential D. Interactive |
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Definition
A
Relational. Relational databases allow travel agencies to examine the relationships between many variables at one time. In relational databases, information is set up in tables with rows and columns. The rows represent a category and the columns represent the variables. For example, a travel agency could develop a relational database with a row for each of its travel agents and columns across for sales by month. The travel agency then would be able to examine the relationship between each agent's sales according to month and make comparisons between agents. A sequential database organizes information in a simple path from one factor to the next. Informative and interactive are not types of databases. |
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Term
When collecting secondary data from various sources, it is important for market researchers to verify that the information is
A. current. C. classified.
B. biased. D. qualitative. |
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Definition
A
Current. Secondary data is information that has already been collected by others. For example, a staff member might provide his/her company with a member directory of a professional organization. The older the directory, the more likely the information is out-of-date. People move, retire, or change careers and often drop out of such organizations, which makes the information less reliable. Biased describes an attitude that favors one viewpoint over another. Marketing research is a scientific method of obtaining information and should generally consist of an objective or unbiased attitude. Classified is a general term that might refer to the manner in which the data is arranged or categorized. Classified data might also describe confidential information that is available to select individuals. Qualitative refers to characteristics and factors that are difficult to measure and are often based on personal experience. Qualitative information is often important to marketing researchers but its use is dependent on the nature of the research. |
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Term
The term marketing functions is best defined as the
A. factors that influence the production costs for various products.
B. ways in which products can be used.
C. characteristics of goods and services.
D. activities involved in getting products from producers to consumers. |
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Definition
D
Activities involved in getting products from producers to consumers. Activities with a common purpose are referred to as functions. Marketing functions are the interrelated activities that must work together to get goods and services from producers to consumers. Marketing functions are not ways in which products can be used. They are not the characteristics of goods and services. Marketing functions are not the factors that influence the production costs for various products. |
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Term
Which of the following is a primary technological resource used to check airline availability:
A. Venus C. AIRCHEK
B. SABRE D. Tran-scan |
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Definition
B
SABRE. SABRE is a computer reservation system (CRS) that is used in many areas of the travel and tourism industry. The system provides travel and tourism employees (e.g., travel agencies) access to airline availability as well as descriptions and rates for hotels, resorts, tours, rental-car companies, rail travel, and events. Other computer reservation systems include Apollo, System One, and Worldspan. Caution should be used when using a CRS because some information may not be current (e.g., travel documentation requirements for foreign travel) or may not reflect all options available (e.g., promotional prices for a specific car-rental agency). In these cases, other resources such as current periodicals or print resources may be needed to verify information found on the CRS. Training to use the systems can be obtained at travel schools, airline training facilities, or on the job. Venus, AIRCHEK, and Tran-scan are not primary technological resources. |
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Term
Friendly Airlines had operated successfully for many years before another airline entered the market offering lower fares to attract customers. Friendly matched the rates of the other airline and began an aggressive advertising campaign. What factor made it necessary for Friendly Airlines to change its marketing strategy?
A. Consumer attitude shift C. Actions of competitors
B. Economic changes D. Advancements in technology |
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Definition
C
Actions of competitors. Friendly Airlines operated successfully offering a set price until a new airline began competing at a lower fare. The competition forced Friendly to revise its marketing strategies in order to keep its customers. Economic changes are changes, such as a recession, that make it difficult for people to pay for air travel. Shifts in consumer attitudes are the changes in the way people view a company. Advancements in technology are improvements that make existing products out of date. |
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Term
Travel businesses realize that it is almost impossible to appeal to all customers, which is why most travel businesses try to
A. limit distribution channels. C. identify market segments.
B. set marketing goals. D. offer product guarantees. |
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Definition
C
Identify market segments. A market segment is one of the groups into which the total market is divided. The marketplace today is very diverse and includes consumers from many backgrounds who have different lifestyles. As a result, it is virtually impossible to appeal to all consumers. Therefore, travel businesses try to identify the market segment that wants and needs their particular products. By identifying the appropriate market segment, travel businesses can focus on those individuals who are the most likely to buy their goods and services. Marketing goals are the objectives a firm seeks to reach with its marketing plan. Distribution channels are paths, or routes, that goods or services take from the producer to the ultimate consumer or industrial user. A guarantee is a promise made to the consumer that a product's purchase price will be refunded if the product is not satisfactory. |
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Term
Which of the following is an internal factor that tour wholesalers should analyze during the marketing planning process:
A. Customers C. Aptitudes
B. Politics D. Regulations |
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Definition
A
Customers. The marketing planning process involves analyzing the business itself. This includes reviewing internal factors that indicate the tour wholesaler's strengths and weaknesses. An important internal factor is a tour wholesaler's customers. Tour wholesalers need to know who their customers are, what they buy, how they rate the business, and if the customer base is increasing or decreasing. By analyzing customers, tour wholesalers will be able to develop marketing plans to attract and keep the target customer. Politics and regulations are external factors that tour wholesalers often analyze during the marketing planning process. Aptitudes are natural talents. |
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Term
Which of the following do airlines use to identify developing changes so that they can make adjustments to remain competitive:
A. Geographic monitoring C. Demographic segmenting
B. Environmental scanning D. Psychological profiling |
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Definition
B
Environmental scanning. Airlines need to understand changes in their environment in order to adapt and remain competitive. They often use a procedure known as environmental scanning to gather information about changes or trends that are beginning to develop in the marketplace. This procedure allows an airline to identify changes at an early stage and decide if the changes present a threat to the way the airline is currently operating. Airlines do not use geographic monitoring, demographic segmenting, or psychological profiling to identify changes that are developing. |
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Term
When conducting a market analysis, a tour wholesaler considers the total possible demand for a tour product, which is known as the
A. sales growth. C. target market.
B. market potential. D. supply factor. |
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Definition
B
Market potential. There are several factors that tour wholesalers consider when conducting a market analysis. One factor is market potential, which is the total possible demand for a tour product during a certain period of time. Tour wholesalers need to determine the market potential because they need to decide if the demand is large enough to generate a profit. The total possible demand for a product is not known as the sales growth or the supply factor. The target market is the particular group of customers a business seeks to attract. |
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Term
If a cruise line discovers a competitor's weakness when it is conducting a competitive analysis, the cruise line has often uncovered a(n)
A. ethical disadvantage. C. marketplace opportunity.
B. internal threat. D. product liability. |
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Definition
C
Marketplace opportunity. A competitive analysis is the process of comparing a cruise line's performance (e.g., profits) with that of its competitors to see how it is doing by industry standards. Uncovering a competitor's weakness can provide a cruise line with an opportunity to increase its market share. For example, if an analysis indicates that a competitor does not have the resources to effectively reach a market segment, the cruise line has uncovered a potential opportunity to expand into another market. An internal threat is a weakness within the cruise line, such as outdated equipment. Ethics are the basic principles that govern a person's behavior. Product liability is a producer's responsibility for any injury that the business's products may cause. |
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Term
When setting a marketing budget, which portion of the budget is often the largest and the most important to calculate?
A. Publicity C. Travel and entertainment
B. Advertising D. Wage and salary |
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Definition
D
Wage and salary. When setting a marketing budget, it is important to calculate the wage portion because salaries are often the largest part of the budget. If businesses neglect to factor in wages, they will drastically underestimate the cost of carrying out the marketing activity. As a result, they may not have sufficient funds to continue paying employees to perform marketing activities. Advertising, publicity, and travel and entertainment usually are not the largest portions of a marketing budget. Also, businesses can cut back on these aspects if funds become scarce. |
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Term
One reason theme parks often conduct a sales analysis to compare actual sales with their sales goals is to make adjustments in the
A. publicity system. C. billing department.
B. marketing plan. D. inventory level. |
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Definition
B
Marketing plan. Analyzing sales is one way to control marketing planning. By conducting a sales analysis to compare actual sales with the sales goals, a theme park is able to determine if it is achieving its goals. If it finds that actual sales are less than sales goals, the park can make adjustments in the marketing plan, which is a set of procedures or strategies for attracting the target customer to a water park. For example, a park might decide to offer special discounts for a limited time to generate more sales and increase the customer base. Publicity is any nonpersonal presentation of ideas, goods, or services that is not paid for by the company or individual that benefits from or is harmed by it. A park does not conduct a sales analysis to make adjustments in the billing department or in the inventory level. |
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Term
The ultimate goal of a marketing audit is to improve a travel business's marketing
A. information. C. mix.
B. performance. D. research. |
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Definition
B
Performance. The ultimate goal of the marketing audit is to identify problems, and to determine which techniques are working effectively for the travel business. Once the travel business reviews the audit, it can make adjustments to improve the travel business's marketing performance. The purpose of marketing is to get goods and services from producers to consumers. A marketing audit indicates whether a business is performing as expected and fulfilling its purpose. Marketing research is the systematic gathering, recording, and analyzing of data about a specific issue, situation, or concern. Marketing information is all the marketing-related data available from inside and outside the travel business. Marketing mix is the combination of the four elements of marketing. |
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Term
Which of the following is a legal factor that a travel business examines when conducting an environmental scan:
A. Beliefs and values C. Trade regulations
B. Cost of living D. Natural resources |
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Definition
C
Trade regulations. An environmental scan is the collection of information about the environment or conditions surrounding a travel business. Travel businesses collect information about many aspects of the business environment, including legal issues that affect the ways in which they conduct business activities. Trade regulations are the laws and guidelines that govern the buying and selling of products. Cost of living and natural resources are economic factors. Beliefs and values are social and cultural factors that travel businesses examine when conducting an environmental scan. |
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Term
What do most airline ticket counters use when accepting personal checks from passengers?
A. Magnetic-strip readers C. Photocopying devices
B. Confirmation numbers D. Verification systems |
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Definition
D
Verification systems. Most airline ticket counters use check verification systems to determine if passengers' personal checks are valid and should be accepted. Airline personnel run the passenger's check through a point-of-sale device that transmits the information to the verification company. The check is either approved or declined in less than a minute. This system is useful to ticket counters because most passengers who purchase tickets at the counter are planning to travel that day, which means that the airline does not have time to deposit the check and receive payment before issuing the ticket. The verification system helps airlines decrease losses from bad checks. The system usually issues a confirmation number that ticket counter personnel write on the check. Ticket counter personnel do not photocopy the check. Magnetic-strip readers are used to read information on credit cards rather than personal checks. |
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Term
The first thing an employee should do when an accident occurs in the workplace is to
A. call an ambulance. C. file a report.
B. determine the severity of the injury. D. administer first aid. |
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Definition
B
Determine the severity of the injury. Determining the severity of the injury helps the employee to determine what should be done next. If the injury is severe or life threatening, then an ambulance should be called. Calling an ambulance or notifying a supervisor should not be done until after the severity of the injury is determined. The severity of the accident will indicate whether to administer first aid. Filing a report would generally be the last aspect of handling an accident. |
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Term
Which of the following is not an example of point-of-sale fraud committed by employees:
A. Overcharging customers and keeping the extra money
B. Undercharging friends or family members for purchases
C. Accepting a check from a customer who lacks funds to cover it
D. Using employee discount privileges for friends or family members |
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Definition
C
Accepting a check from a customer who lacks funds to cover it. This is an example of customer fraud. Even though the employee may follow all procedures for handling checks, the check may still be "bad" because the customer does not have enough money in the bank to cover the check. An employee commits fraud when deliberately causing losses to the business by overcharging and keeping the difference, undercharging friends, and misusing the discount privilege. |
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Term
What do travel agencies need to provide employees in order to create a quality culture?
A. Adequate training C. Fringe benefits
B. Ongoing assessment D. Competitive wages |
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Definition
A
Adequate training. Travel agencies need to train employees so they will understand their jobs and have the ability to best serve their clients. Employees who know what they are expected to do and how to do it usually create a quality environment. They are able to function effectively and provide quality service to clients. In return, clients appreciate the travel agency's efforts and usually continue a business relationship with the travel agency. Once they are trained, competitive wages and fringe benefits help to keep good employees. Ongoing assessments tell employees how they are doing and provide suggestions for improvement. |
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Term
Calculate an airport gift shop's net profit for last year if it had income from sales of $675,500, operating expenses of $210,000, and cost of goods sold was $305,200.
A. $255,500 C. $370,300
B. $160,300 D. $465,500 |
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Definition
B
$160,300. Net profit is calculated by subtracting operating expenses and cost of goods sold from income. To determine net profit, first calculate gross profit by subtracting cost of goods sold from income ($675,500 - $305,200 = $370,300). Then, subtract operating expenses from the gross profit figure to calculate net profit ($370,300 - $210,000 = $160,300). |
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Term
Conducting a break-even analysis often helps a tour operator to
A. determine market share. C. establish a selling price.
B. understand the level of demand. D. monitor the competition. |
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Definition
C
Establish a selling price. A break-even analysis is a financial analysis whose purpose is to identify the level of sales needed to reach the break-even point at various prices. When conducting a break-even analysis, a tour operator can experiment with different prices to determine the selling price to establish in order to reach the break-even point after a certain level of sales. Conducting a break-even analysis does not help a tour operator to understand the level of demand, determine market share, or monitor the competition. |
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Term
A travel agency negotiates a service contract on a copier that is based on the total number of copies made per year. The agency pays $.02 per copy for the first 10,000 copies, $.03 per copy for the next 15,000 copies, and $.04 per copy for the next 20,000 copies. Calculate the total cost for the contract if the agency makes 36,000 copies.
A. $1,440 C. $1,360
B. $1,080 D. $1,090 |
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Definition
D
$1,090. Travel agencies often negotiate the price of service contracts based on the amount of usage. If equipment is not used frequently, it usually lasts longer and requires less maintenance; therefore, the cost is less than for equipment that receives a lot of use. In this example, the cost increases steadily based on an increase in use. To determine the total cost for the contract if the agency makes 36,000 copies, calculate the price for the various categories. The first 10,000 copies cost $200 (10,000 x $.02 = $200), and the next 15,000 cost $450 (15,000 x $.03 = $450). The agency makes an additional 11,000 copies that are priced at $.04 per copy for a total of $440 (11,000 x $.04 = $440). To calculate the total price, add the totals for the three categories ($200 + $450 + $440 = $1,090). |
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Term
Travel businesses that do not adequately maintain their facilities may run the risk of
A. losing customers. C. promoting goodwill.
B. avoiding hazards. D. increasing profits. |
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Definition
A
Losing customers. Travel businesses should maintain their facilities in good condition because customers prefer to frequent well-maintained companies. Facilities that are dirty, in poor repair, and disorderly may offend customers who will take their business elsewhere. Losing customers also means losing sales which eventually may force a company out of business. Travel businesses that do not adequately maintain their facilities do not avoid hazards but may actually create them. Travel businesses that are not well maintained usually do not promote goodwill in the community or experience increased profits. |
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Term
Security considerations are important in the travel and tourism industry because tourists are often
A. looking for trouble. C. prone to injury.
B. targets of crime. D. part of a group. |
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Definition
B
Targets of crime. Tourists are often easy to identify because of the way they dress and behave and because of the sites and attractions they visit. For example, tourists in certain parts of the world are easily recognized because they do not look like the local people, and they do not speak the language. Furthermore, the perception often is that tourists carry a lot of money and are not particularly careful. Also, tourists may not be aware of high-crime districts and accidentally walk into those areas. All of these factors set up tourists as targets of crime. As a result, the travel and tourism industry stresses security and tries to prepare tourists for possible problems. For example, tour operators may point out areas of cities that the group should avoid, or cruise ships might tell passengers to use only certain taxis in ports of call. Tourists are not looking for trouble, nor are they any more prone to injury than other people. Many tourists travel only with family members rather than as part of a group. |
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Term
Why do tour operators negotiate with suppliers for the best rates possible for services such as transportation, lodging, meals, and admission to attractions?
A. To plan incentive travel C. To prepare a sales budget
B. To set the commission level D. To develop the package price |
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Definition
D
To develop the package price. Tour operators put together travel packages and sell those packages to customers. An important part of organizing a package involves negotiating the cost of the services involved, such as transportation, lodging, meals, and admission to attractions. Tour operators work with vendors to obtain the best rates possible in order to offer a travel package at a price that customers will be willing to pay. If operators are not able to negotiate favorable rates, the package may be too expensive for most customers. As a result, the tour operator will not be able to sell the package. The commission is the tour operator's fee for arranging the package. A sales budget is the amount an operator allocates for the selling process. Incentive travel is developed primarily for businesses to use to reward employees. |
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Term
Which of the following is a function of scheduling tours:
A. Send questionnaires C. Review itineraries
B. Confirm passengers D. Arrange activities |
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Definition
D
Arrange activities. An important aspect of scheduling tours involves arranging the activities that will be available during the tour. These activities might include scheduled visits to historic or natural attractions, museums or art galleries, shopping malls, etc. Whatever customers will do or participate in during the tour must be arranged in advance and scheduled into the tour. In most cases, attractions need advance notice if a tour group will be visiting in order to be ready to accommodate a large number of people. Also, part of the process of arranging activities includes scheduling a reasonable amount of free time. Reviewing itineraries and confirming passengers are tasks that occur after a tour is scheduled. In some situations, questionnaires are sent to customers after the tour to obtain feedback. |
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Term
The reason you should include your complete name, address, and telephone number in your job résumé is to
A. follow the accepted rules for a résumé. C. get this information into the company files.
B. let the employer know how far away you live. D. make it easy for the company to contact you. |
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Definition
D
Make it easy for the company to contact you. When you send a job résumé to a business hoping to be interviewed for a job, you want to make it as easy as possible for the business to get in touch with you. You should, therefore, provide complete information—name, home address, telephone number, fax number, or e-mail address (if applicable). In many cases, people get first chance at jobs because the business had no trouble finding them. The business is not interested in how far away you live unless that has been stipulated in the job announcement as pertinent. Your résumé may go into the company files, and including contact information is recommended in preparing résumés, but those are not the main reasons you include the data. |
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Term
Which of the following is an example of networking:
A. Corey tells a neighbor about a class that she plans to take next year.
B. Casey surfs the web sites of local companies to view the job opportunities that are available.
C. Jess meets with a group of peers to discuss a specific book that all group members have read.
D. Jackson is looking for a new job and asks his friends and relatives if they know of any openings. |
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Definition
D
Jackson is looking for a new job and asks his friends and relatives if they know of any openings. Networking is the process of exchanging information with others for the purpose of professional or business development and/or advancement. When Jackson discusses new job opportunities with others, he is engaging in networking. Surfing the web, attending a book discussion group, and discussing a class with a neighbor are not examples of networking. |
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Term
The possibility of terrorism or civil unrest in an area are factors that often have an impact on __________ travel.
A. accessible C. domestic
B. regulated D. international |
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Definition
D
International. When people travel, especially to foreign countries, they want to feel safe and secure. The possibility of terrorism or civil unrest in an area often impacts international travel and discourages people from visiting those places that might not be safe. These security factors harm the tourism industry and make it difficult for facilities in the affected areas to survive. The possibility of terrorism or civil unrest have increased domestic travel because many people are more comfortable traveling close to home. Regulated travel refers to specific government requirements for travel, such as travelers obtaining a passport or a visa. Accessible travel refers to accommodations for the physically disabled. |
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Term
Which of the following costs do tour wholesalers usually include in the price of their products:
A. Transportation C. Regulations
B. Inflation D. Job orientation |
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Definition
A
Transportation. Transportation (e.g., air, bus) is often a part of a tour package, and is an important consideration when pricing tours. Inflation is a rapid rise in prices usually occurring when demand exceeds supply. Regulations are an established set of rules. Job orientation is the preparation or induction training for new employees. |
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Term
A travel and tourism company is most likely to lower product pricing when the overall economy is experiencing a period of
A. prosperity. C. recovery.
B. recession. D. deflation. |
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Definition
B
Recession. A recession is a contraction of the GDP (gross domestic product) that lasts at least six months. During this phase of the business cycle, business activity slows down. As a result, unemployment occurs and consumers tend to buy less because they have less disposable income, which lowers demand. In response to lower demand, travel and tourism businesses often reduce their prices in order to survive until demand increases. Recovery and prosperity are phases of the business cycle that experience an increase in demand and spending. It is during these phases that demand can exceed supply. As a result, businesses are more likely to increase their prices. Deflation is not a common term used to describe a phase in the business cycle. |
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Term
Airlines recognize the existence of different demand curves for different customer groups. Airlines can meet these various demands by
A. advertising to encourage passengers to fly during nonpeak times.
B. supplying and pricing airline tickets based on route, time period, and class of service.
C. providing additional luggage space, as needed, for business travelers.
D. offering cash-back savings to vacation travelers. |
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Definition
B
Supplying and pricing airline tickets based on route, time period, and class of service. Demand and supply of airline seats to travelers is managed by offering a range of options to various customer segments. Cash-back savings, advertising, and additional luggage space could be used in the short term to stimulate demand, but these options are a small piece of the overall strategy of managing supply and meeting demand through pricing. |
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Term
A large business offered a new product in some of its locations in order to find out whether consumers liked the product. This technique is known as
A. product development. C. test marketing.
B. idea generation. D. business analysis. |
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Definition
C
Test marketing. Test marketing involves introducing a product to a limited market to see what its acceptance will be before starting a wider distribution. The results of test marketing enable companies to modify products, drop the products, or proceed with production. Idea generation is the process of thinking up or creating new products and modifying existing products. Product development is the stage in the creation of a new product in which a working model may be produced, production costs are estimated, and the final details of the product are planned. Business analysis involves examining such factors as demand, costs, competition, capital investment required, and potential profit of a good or service. |
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Term
Which of the following is a way that a business can extend the life cycle of an established product:
A. By restricting distribution C. By finding new uses for the product
B. By promoting the product to current users D. By attracting consumers who are innovators |
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Definition
C
By finding new uses for the product. Established products are in the maturity stage, and one way marketers can extend their life cycles is by finding new ways that the products can be used by current consumers. Continuing to promote the same product to current users will not extend its life cycle. Consumers who are innovators are attracted to products in the introductory stage, not the maturity stage. Restricting distribution would shorten rather than lengthen the product's life cycle. |
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Term
If a market is willing to buy the product, the product idea may be
A. costly. B. feasible. C. impractical. D. challenging. |
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Definition
B
Feasible. A step in the product development process includes determining the feasibility of the product idea—a business must determine if the idea is worth pursuing. Several factors influence an idea's feasibility—human resources, raw materials, costs, and possible product demand. It would not be feasible to produce a good or service if a market is not willing to buy it. If a market exists that is willing to buy the product, it might be practical to continue the development process, regardless of its cost or production challenges. |
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Term
Which of the following is a primary purpose of consumer protection in product planning:
A. To encourage businesses to offer new products
B. To protect private enterprise principles
C. To protect consumers from personal injury
D. To protect consumers from inefficient businesses |
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Definition
C
To protect consumers from personal injury. Consumer protection is all the efforts to safeguard consumers from any kind of injury they might suffer in the process of purchasing and/or using consumer products. It attempts to make the consumption of goods less risky for consumers. Side benefits of consumer protection efforts may include protecting the principles of private enterprise and encouraging businesses to offer new products, but those are not its primary goals. Consumer protection does not protect consumers from inefficient businesses unless those businesses also engage in activities that are harmful to consumers. |
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Term
When an employee is speaking with a client about the client's experience with the travel agency, what should the employee do?
A. Listen actively B. Provide input C. Agree with feedback D. Anticipate responses |
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Definition
A
Listen actively. An employee who directly interacts with a client has an opportunity to find out how the client feels about his/her experience(s) with the travel agency. This might include information about what the travel agency is doing right and what needs improvement. The employee can forward the client's feedback to management for review. When speaking with the client, the employee should actively listen—use nonverbal cues, paraphrasing, and questioning to let the client know that the message is heard and understood. To get honest feedback from a client, the employee should not provide his/her own opinions. The employee does not need to agree with the customer's feedback and should not anticipate the client's responses. If the employee anticipates what the client is saying, the employee is distracted and may not hear the message. |
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Term
One reason it is important for airlines to regularly review their service offerings to make sure they fill customer needs is because the __________ changes.
A. distribution system C. promotional technique
B. operating method D. social environment |
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Definition
D
Social environment. Travel and tourism businesses must understand that the social and cultural environment in which people live changes over time. To remain competitive, these types of businesses must adapt and meet their markets' needs. To determine if customer needs and wants are being met, an airline should regularly review its services. If an airline does not satisfy customer needs and wants, such as offering flights to certain locations, it may lose business to another airline. Operating method, promotional technique, and distribution system usually do not have an effect on whether products fill customer needs. |
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Term
A small travel agency that sells bus tours decides to add Alaskan cruises to it offerings. The travel agency is increasing its
A. promotional mix. B. product line. C. profits. D. product mix. |
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Definition
D
Product mix. A product mix is the particular assortment of services that a travel agency offers in order to meet the needs of its market(s) and its company goals. A product line is a group of related product items. A promotional mix is a combination of marketing communication channels that a travel agency uses to send its messages to consumers. Profits are the monetary rewards a person receives for taking the risk involved in investing in a travel agency and may increase or decrease if the product mix is changed. |
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Term
What often occurs when an airline fails to plan its services so that it can accommodate anticipated increases in demand?
A. Less competition C. Customer defection
B. Economic slowdown D. Higher market share |
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Definition
C
Customer defection. When passengers are dissatisfied with an airline's services, they often go to the airline's competitors to purchase travel services—this is called customer defection. Airlines have busy seasons (e.g., holiday travel) and need to increase staffing and flights to accommodate the passengers' service needs. When an airline does not plan to accommodate demand increases, passengers often become frustrated because their service needs are not being met. And, because the passengers' needs are not being met, they go to another airline that can provide the services when the passengers want them. An economic slowdown does not occur when one airline fails to plan for demand increases. Failing to plan services to accommodate demand increases often results in more competition for the airline and a smaller share of the market if passengers go to the competition to have their needs met. |
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Term
ABC Airlines changed its corporate name to XYZ Corporation and then back to ABC because consumers thought XYZ was too difficult to pronounce and remember. This marked a change in the company's use of a
A. trade name. B. brand name. C. brand mark. D. trade character. |
|
Definition
A
Trade name. A trade name is the name that identifies a company or organization. A brand name is the part of a brand which can be spoken, such as a word, a phrase, a letter, a number, or any combination of these. A brand mark is a distinctive symbol, design, or group of letters which is seen but cannot be spoken. A trade character is a brand mark that has been personified or made to seem life like. |
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Term
When a cruise line charges high prices for luxury cruise options, it is using a positioning strategy that emphasizes
A. product quality. B. place utility. C. seasonal intensity. D. customer value. |
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Definition
A
Product quality. Positioning is a product-mix strategy in which a business creates a certain image or impression of a product in the minds of consumers. One type of product-mix strategy uses quality and price to position its products in the marketplace. By charging high prices for luxury or upscale cruises, the cruise line is emphasizing the service quality. If the cruise line wanted to emphasize value to consumers, it would use low prices to position certain cruise options. Place utility is the usefulness created by making sure that the goods and services are available at the place where they are needed or wanted by consumers. Product seasonality refers to goods and services (e.g., snow shovels) that consumers need or want during a certain time or under certain circumstances. Seasonal intensity is not a common positioning strategy that businesses use to create an upscale image for a product. |
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Term
A travel agency's president or owner can be the brand champion by
A. helping employees understand how to demonstrate the brand in their jobs.
B. replacing the mission statement every year or two.
C. immediately replacing employees who don't conform to brand standards.
D. developing a catchy slogan. |
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Definition
A
Helping employees understand how to demonstrate the brand in their jobs. One of the most important responsibilities of a travel agency owner or CEO in his/her role as brand champion is helping employees understand how to demonstrate the brand in their jobs. The success of brands is dependent on employees' buying into brand values and incorporating them into their jobs every day. Developing a catchy slogan is not a primary responsibility of the brand champion; the brand champion is focused on brand pillars—for example, the core values and the brand promise—and how these will build customer relationships. A brand champion works to build enthusiasm and commitment to the brand among employees, rather than simply replacing them. Brand champions do not replace a travel agency's mission statement. Instead, the brand champion continues to build upon the mission statement's foundation as the travel agency grows. |
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Term
When evaluating the effectiveness of a tour, a tour operator might ask customers if
A. the tour was competitive with other tours. C. they budgeted enough funds to buy souvenirs.
B. they would recommend the tour to others. D. the weather was pleasant at all destinations. |
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Definition
B
They would recommend the tour to others. It is important to evaluate the effectiveness of a tour to find out if it lived up to promises and expectations, or if changes need to be made. One way to evaluate a tour is to ask customers if they would recommend the tour to others. If they would, then they were satisfied with the tour. If customers would not recommend the tour, it is necessary to find out why and what was not satisfactory. Many customers will have no way of knowing if the tour was competitive with other tours. The effectiveness of a tour does not depend on whether customers budgeted enough funds to buy souvenirs. The weather is beyond the control of tour operators. |
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Term
Which of the following is a benefit to several travel and tourism entities of creating a marketing partnership:
A. Elimination of common competitors C. Discounted fees and services
B. Shared promotional costs and results D. Implementation of special procedures |
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Definition
B
Shared promotional costs and results. Various entities in the travel and tourism industry often create joint marketing efforts because working together may be the most effective and profitable method. For example, an airline and a destination might develop a brochure that promotes flying to the destination to enjoy the local attractions. The brochures are made available to travel agents who book the trips. Each entity benefits because the travel agent receives a commission, the airline fills available flights, and the destination attracts visitors who spend money in the area. Creating a marketing partnership does not eliminate common competitors. Marketing partnerships do not necessarily result in discounted fees and services or the implementation of special procedures. |
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Term
An automobile club informs members about the new, free services that it is offering. This is an example of __________ promotion.
A. public-relations B. public-service C. product D. patronage |
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Definition
D
Patronage. Patronage promotion is a type of institutional promotion designed to promote a business's or organization's features or prestige. Presenting information about a business's features that will benefit the consumer, such as free services, is another way to sell the firm for non-product reasons. Public-service promotion is a type of institutional promotion that informs consumers about non-controversial issues that are in the public's interest. Public-relations promotion is a type of institutional promotion created to deal with controversial public issues that are related to a company or its products. Product promotion is a type of promotion which aims to persuade consumers to buy a good or service. |
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Term
What type of promotion would best meet the needs of a travel business that wants immediate feedback as well as some flexibility in its promotion of a new product?
A. Coupons B. Advertising C. Personal selling D. Publicity |
|
Definition
C
Personal selling. By using this form of planned, personalized communication to influence purchase decisions, a travel business can promote its products on a one-to-one or a group basis to customers. As salespeople interact with customers through personal selling, they are able to ensure satisfaction, satisfy customer needs, and gain immediate feedback by watching the reactions of clients to a sales presentation. Advertising is less flexible in that the same message is delivered to many people, and their reactions to the advertising are difficult to measure. Publicity is defined as a nonpersonal form of promotion which is not paid for by the company; therefore, there is not much flexibility or control in what is publicized. Coupons are a highly used form of sales promotion, but their redemption rates and forms of distribution do not provide immediate feedback. |
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Term
A famous woman was killed in a traffic accident while not wearing a seat belt. Marketers plan to use her image in a road safety, seat belt campaign. What is one ethical issue that the marketers should consider?
A. Will everyone know about the accident?
B. Will the public forget the circumstances of the accident?
C. Will the campaign imply that she was responsible for her own death?
D. Will it be difficult to find appropriate pictures for the campaign? |
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Definition
C
Will the campaign imply that she was responsible for her own death? Using the image of someone who died in a terrible accident might suggest that the accident was preventable. Marketers need to consider the ethics of using the person's image because the person is not able to give permission. Because of the amount of news coverage given to celebrity events, the public would probably remember, at least through the duration of the campaign. In this type of situation, media pictures are almost always readily available. |
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Term
One way that technology has an effect on promotion is by making it possible for tourist attractions to advertise
A. to global customers. C. on a national level.
B. to target markets. D. on the Internet. |
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Definition
D
On the Internet. The technology that makes the Internet possible also allows tourist attractions to advertise online. This provides another option for tourist attractions to use to reach potential customers. Today, many tourist attractions advertise on the Internet, and use the Internet to attract tourists on a local, national and international level. It is possible, however, for tourist attractions to advertise to target markets on a national level, and to global customers without the use of technology. An example is a traditional newspaper ad. |
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Term
What is the role of selling in the economy?
A. Attracts consumers to products C. Causes unemployment
B. Keeps competition under control D. Keeps the economy moving |
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Definition
D
Keeps the economy moving. The economy moves in a circular direction. Businesses buy resources to use in producing goods and services they can sell to individuals and other businesses. Individuals sell their resources to businesses to help in this production. Selling creates jobs rather than causing unemployment. Competition is regulated by government, and promotion is used to attract consumers to production. |
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Term
How can salespeople maintain a positive, ongoing selling relationship with their customers?
A. Handle and resolve problems promptly C. Promise the customer additional services
B. Ask customers for product testimonials D. Conduct follow-up activities every week |
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Definition
A
Handle and resolve problems promptly. By addressing issues quickly, salespeople express concern for their customers. Customers who are satisfied with problem resolution often provide the salespeople with repeat business and loyalty. Testimonials often help salespeople sell products to others, but they do not necessarily maintain a positive relationship with existing customers. Promising additional services does not necessarily maintain a positive relationship with customers unless the salespeople follow through with their promises. Although follow-up activities are necessary to maintain a good selling relationship with customers, the type and amount of follow-up is determined by many factors, including available resources and the nature of the product. Therefore, it is not always necessary to follow up with customers every week. |
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Term
Which of the following are the life blood of a travel agency:
A. Investors B. Employees C. Suppliers D. Clients |
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Definition
D
Clients. All travel agencies need clients, and the best kind of clients are the loyal ones. These clients are the life blood of the travel agency whether they are booking a weekend getaway or a long, international cruise. Employees, suppliers, and investors are important to a business, but they are not its life blood. Without clients, there would be no business and no need for employees, suppliers, or investors. |
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Term
How does a feature-benefit chart help a travel agent?
A. Determines which features and benefits appeal to each client
B. Explains the travel agency's compensation rate
C. Provides a quick reference to the travel agent about products
D. Evaluates clients' reactions to the presentation |
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Definition
C
Provides a quick reference to the travel agent about products. In creating the feature-benefit chart, a travel agent can be better prepared in the selling process. Preparing a chart will help the travel agent remember the features, benefits, and differences among various travel services. A feature-benefit chart should aid in developing meaningful selling sentences. A feature-benefit chart does not help a salesperson to determine which features and benefits appeal to each client, evaluate clients' reactions to the sales presentation, or explain the travel agency's compensation rate. |
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Term
A travel agent asked one, short, direct question at a time in order to give the client a chance to
A. respond. B. rest. C. argue. D. depart. |
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Definition
A
Respond. Travel agents should give clients a chance to absorb what they are saying and to respond through questions, statements, and motions of their own. They should space out questions and not make the clients feel that they are being interrogated. Clients will appreciate the opportunity to respond and are not likely to depart. It is not the travel agent's responsibility to provide time for the client to rest, and most travel agents would not want to create an opportunity for argument. |
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Term
Travel agent: "Be sure to bring your camera on this trip to capture the spectacular scenery at the Grand Canyon." This statement is an example of a(n) __________ close.
A. assumption B. direct C. narrative D. related-merchandise |
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Definition
A
Assumption. In using this technique, the travel agent assumes that the customer is going to make the purchase. A related-merchandise close uses merchandise that goes with the item being presented to help customers make a buying decision. A direct close asks the customer to buy. A narrative close tells a story about other people who successfully made a buying decision and how the product solved their problem. |
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Term
A salesperson who sells items with a low profit margin probably will use __________ follow-up.
A. complex B. expensive C. abundant D. minimal |
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Definition
D
Minimal. Salespeople who sell items with a low profit margin will use minimal, if any, follow-up. They simply cannot afford to invest a great deal of time in follow-up activities. They would not use abundant or complex follow-up for inexpensive items that generated little profit. However, if they sell expensive items with a high profit margin, they need to follow up carefully with customers. |
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Term
Clients traveling to a city to attend art and theater events would be demonstrating an interest in
A. historical destinations. C. sightseeing tours.
B. cultural destinations. D. sporting events. |
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Definition
B
Cultural destinations. Many people travel to certain destinations because of the cultural attractions, such as live theater, art galleries, museums, libraries, etc. The type of destination the client chooses will influence the arrangements and accommodations the travel specialist makes. For example, the travel specialist will probably not consider cruise options for the client who chooses art and theater in the city. Sporting events might include professional football and basketball games. Historical destinations offer attractions such as old forts, castles, and battlegrounds. Sightseeing tours offer a glimpse of an entire area, such as a trolley ride through San Francisco. |
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Term
A travel agent who is trying to determine a client's travel preferences or needs should
A. ask open-ended questions. C. let the client lead the conversation.
B. show the client several brochures. D. tell the client to listen attentively. |
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Definition
A
Ask open-ended questions. The best way to determine the client's preferences and needs is to ask questions (who, what, why, where, when, and how) that require the client to elaborate on the answer. Yes/No or short-answer questions do not usually provide enough information. An agent cannot show the client the appropriate travel or destination brochures until the purpose of the trip, the needs, and preferences are known. By letting the client lead the conversation, the agent may not get the appropriate information that s/he needs to help the client. An agent does not control the client's hearing or listening capabilities. |
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Term
Which of the following is an important step in booking a tour for a client:
A. Locating a hotel C. Recommending a restaurant
B. Obtaining a deposit D. Planning an itinerary |
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Definition
B
Obtaining a deposit. When booking a tour for a client, it is important for a travel agent to obtain a deposit to reserve a place on the tour. A deposit is often a certain percentage of the total price. The remainder is due a certain time before the tour departs. The deposit is the guarantee that the client intends to pay for and participate in the tour. Booking a tour does not involve locating a hotel, recommending a restaurant, or planning an itinerary. The tour operator puts together the itinerary and makes arrangements for hotels. Tours often stop at designated restaurants. |
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Term
Why is it important for a travel agent to know the cancellation policies of hotels, guided tours, and other travel suppliers when canceling a customer's reservation?
A. To sell the reservation to another traveler C. To protect the customer from additional charges
B. To reschedule the reservation at a later date D. To recommend another travel product to the customer |
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Definition
C
To protect the customer from additional charges. Travel suppliers, such as hotels and tours, usually have cancellation policies that explain when reservations must be canceled. Travel agents need to know these policies to protect customers from additional charges that may be assessed if the reservations are not canceled within a certain time period. In some cases, customers pay a deposit that they will forfeit if the reservations are not canceled properly. Travel agents need this information in order to advise their customers about possible penalties for late cancellation. Travel agents do not need to know cancellation policies to reschedule a reservation or recommend another travel product. Travel agents do not sell the reservation to another traveler. |
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Term
What organizations are required to complete an Airlines Report Corporation (ARC) Ticket Report?
A. Incentive travel planners C. Airline cashiers
B. Tour operators D. Travel agencies |
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Definition
D
Travel agencies. Because of the volume of airline ticket sales, this report is used to simplify payment of all airline tickets sold by a travel agency. The transactions are recorded in the report and sent to a centralized bank (Area Settlement Bank), which is a division of the ARC. This bank processes payment to each airline company on behalf of the travel agencies. This eliminates the need for the travel agencies to pay each airline individually. The ARC makes the receivables process easier for the airlines because airlines do not have to work with thousands of travel agencies. Tour operators, airline cashiers, and incentive travel planners do not complete this report. |
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Term
What type of recommendation about currency would it be appropriate for a travel agency to provide customers who are traveling to foreign countries?
A. Hotels and banks in foreign countries all have a standard exchange rate.
B. They should use credit cards for all purchases.
C. Travelers should obtain a small amount of foreign currency before departure.
D. Currency rates are set monthly. |
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Definition
C
Travelers should obtain a small amount of foreign currency before departure. This is particularly helpful if the traveler is arriving at night or on the weekend. Banks are closed on the weekend, and the traveler may be left without money or have to pay a higher exchange rate at the hotel. Currency rates fluctuate and are not set monthly. Hotels charge a service fee for exchanging currency. While credit cards are good to use for major purchases on your trip, many small businesses only accept cash. |
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Term
Which of the following is one of the responsibilities of government in the travel and tourism industry:
A. To regulate and control transportation C. To hire and train tour operators
B. To develop regional destinations D. To interpret emergency procedures |
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Definition
A
To regulate and control transportation. Governments usually have responsibility for regulating and controlling transportation carriers within their countries. In many countries, the airlines and railroads are either owned by the government or subsidized by the government. In other countries, the government develops regulations for airlines and railroads, sets standards, issues operating licenses, and monitors safety. The intent is to make sure the transportation systems are safe. Governments usually do not develop regional destinations, hire and train tour operators, or interpret emergency procedures. |
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Term
One of the characteristics of the form of business ownership known as an LLC is that
A. it is required to have at least three owners (members).
B. the owners' personal property cannot be taken to pay the business's debts.
C. the IRS collects taxes based on the LLC's gross income.
D. this kind of business can last indefinitely. |
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Definition
B
The owners' personal property cannot be taken to pay the business's debts. An LLC (limited liability company) form of business ownership is growing in popularity because of some of the ways it benefits its owners. One of these is that the owners' personal property cannot be taken by creditors to satisfy the debts of the LLC. Other characteristics of the LLC include its limited life and taxation of the owners' income rather than the LLC's income. LLCs may need to have at least one or two members but does not necessarily set a minimum of three members. |
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Term
Which of the following is an activity covered by environmental regulations that affects travel and tourism businesses:
A. Counseling substance abusers C. Adapting to worker safety
B. Identifying natural resources D. Disposing of hazardous waste |
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Definition
D
Disposing of hazardous waste. The federal government created the Environmental Protection Agency (EPA) in an effort to control and reduce pollution. The EPA enforces various laws and rules, some of which involve the way that travel and tourism businesses dispose of hazardous materials such as medical and nuclear waste. Travel and Tourism Businesses are required to follow EPA regulations and often are costly to carry out. If travel and tourism businesses fail to dispose of hazardous waste properly, they may be forced to pay expensive fines. Counseling substance abusers, adapting to worker safety, and identifying natural resources are not business activities covered by environmental regulations. |
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Term
Which of the following businesses would be most likely to have its own distribution center:
A. Local travel agency C. Specialty shop
B. Museum restaurant D. Chain store |
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Definition
D
Chain store. A distribution center is a facility that holds goods in storage and fills orders for those goods. Chain stores, such as Sears, often have their own distribution centers. A museum restaurant, specialty shop, and a local travel agency would not be likely to need or be able to afford the expense of their own distribution center. |
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Term
In the travel and tourism industry, one aspect of coordinating distribution with the marketing function of pricing involves
A. developing pricing rules. C. earning high profits.
B. achieving publicity goals. D. setting appropriate prices. |
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Definition
D
Setting appropriate prices. Travel and tourism businesses not only need to make their products(e.g., cruise) available, but they also must sell them at a price that customers are willing to pay. If a product is not priced appropriately, customers may not buy the travel and tourism product. Therefore, it is important for travel and tourism businesses to coordinate the marketing activity of pricing with distribution. Travel and tourism businesses must set appropriate prices that customers are willing to pay and have the products available when customers want them in order to successfully sell to customers. Coordinating distribution with marketing does not involve achieving publicity goals, earning high profits, or developing pricing rules. |
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Term
A producer may choose to use multiple distribution channels rather than a single distribution channel for all of the following reasons except to
A. market unrelated products. C. reach multiple target markets.
B. avoid dependence on a single channel. D. create channel conflict. |
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Definition
D
Create channel conflict. If not handled properly, the use of multiple distribution channels may cause channel conflicts, especially if channel members resent the competition and ultimate profit is in jeopardy. Companies successfully use multiple channels when trying to reach different target markets or when marketing unrelated products. Multiple distribution channels are also used to diversify distribution methods and avoid dependency on any particular channel. |
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Term
Which of the following is an intermediary factor to consider when selecting an intermediary in the travel and tourism industry:
A. Services provided C. Location of the product's market
B. Size of the product D. Number of potential customers |
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Definition
A
Services provided. A producer should carefully examine the services that the intermediary provides. If the services are worth their cost, then the travel or tourism intermediary should be included in the channel. The number of potential customers and the location of the product's market relate to market considerations. The size of the product is a product consideration. |
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Term
Why is it important for tour wholesalers to include logical evidence in a persuasive letter?
A. To explain the idea in strong language C. To make the message more convincing
B. To present interesting information D. To force the recipient to respond |
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Definition
C
To make the message more convincing. Messages usually are more persuasive if they are supported by logical evidence. Logical evidence is based on fact rather than on opinion. If tour wholesalers are writing persuasive messages to encourage customers to do something, such as buy a tour product, they should include logical evidence to make the message more convincing. Logical evidence is factual; however, it may not be interesting. Strong language may offend the recipient rather than help to explain the idea. Logical evidence is intended to be persuasive. It does not force the recipient to respond. |
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Term
What type of information should a travel agent include when writing a sales proposal to send to a client?
A. Shipping and receiving C. Pricing and accounting
B. Features and benefits D. Laws and regulations |
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Definition
B
Features and benefits. When they are planning on making large or expensive purchases, some clients ask the travel agency to submit written sales proposals or quotations. Because the goal of the proposal is to make a sale, a well-written proposal will tell the client the benefits of using the travel agency. The sales proposal should also point out the specific features of the travel and tourism products which may be different from of a competitor's products. The proposal might include shipping information, but receiving is controlled by the client. The proposal usually includes pricing information but not accounting information. Laws and regulations are not always part of a sales proposal unless the travel package requires that client to obtain something that is regulated by the government, such as passports for international travel. |
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Term
What should a travel agent advise a client to do when applying for a first passport?
A. Allow less than 48 hours to process the passport
B. Obtain two duplicate photos in the specified size
C. Advise that the agency can issue the passport
D. Provide a driver's license for proof of citizenship |
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Definition
B
Obtain two duplicate photos in the specified size. When applying for a first passport, a traveler must provide two duplicate photos in the specified size. The photos must be current, taken within six months of applying. Depending on the country, passport applications typically take 10 weeks to process although there are allowances for extreme emergencies (e.g., death and illness). Passports are issued and processed by government agencies; in the United States, you can get an application from the travel agency. It must be processed through the passport office. A birth certificate can be used for proof of citizenship; however, a driver's license may not be used as proof of citizenship. |
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Term
"The customer is ALWAYS right" is a philosophy many travel and tourism businesses try to follow in order to
A. help employees handle selling objections. C. make employees' jobs easier.
B. prevent any conflict with customers/clients. D. create positive customer/client relations. |
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Definition
D
Create positive customer/client relations. Policies that establish appropriate attitudes toward customers/clients help to ensure that employees will treat customers in a way that will create positive relations. Such policies do not prevent all conflict with customers/clients because they do not guarantee that the travel or tourism business can always do what the customer wants. These policies are not established for the purpose of making employees' jobs easier. Customer objections are reasons customers have for not buying, and they are handled with selling techniques that may involve disagreeing politely with the customer. |
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Term
Why should travel agents possess adequate product knowledge in order to handle clients' inquiries?
A. To organize supplies C. To plan effectively
B. To sell successfully D. To develop promotions |
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Definition
B
To sell successfully. Travel agents are expected to possess adequate knowledge of travel products, policies, and capabilities in order to handle clients' inquiries. The main reason why it is important for travel agents to possess this information is to be able to sell successfully. Clients often have questions about travel and tour products that travel agents need to answer in order to make the sale. Travel agents who are knowledgeable and well informed usually can sell successfully because they are able to handle customers' inquiries. Developing promotions, organizing supplies, and planning effectively are not always the responsibilities of travel agents. |
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Term
The first step in handling customer complaints is to
A. call the manager for assistance. C. ask the customer to be brief.
B. let the customer explain the problem. D. make a record of all the facts. |
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Definition
B
Let the customer explain the problem. Until it is determined otherwise, one should assume that the complaint is legitimate. After the customer's explanation, ask whatever questions may be necessary to obtain facts needed in solving the problem. Asking the customer to be brief may anger the customer. The manager should not be called unless you cannot handle the situation to the customer's satisfaction. |
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Term
Economic goods differ from economic services in that economic goods are
A. scarce. B. wanted. C. tangible. D. valuable. |
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Definition
C
Tangible. Economic goods are physical (tangible) products that are useful, scarce, and transferable and satisfy economic wants. Economic services are productive acts that satisfy economic wants. Both economic goods and services are wanted, have value, and are scarce. |
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Term
Financial analysis occurs when a tour company
A. keeps accurate expense records. C. plans for long-term success.
B. communicates with potential customers. D. effectively retrieves data. |
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Definition
A
Keeps accurate expense records. Financial analysis involves obtaining funds for the tour company and keeping accurate records for analysis and interpretation. Marketing involves communicating with potential customers. Strategic management involves planning for long-term success. And, information management involves effectively retrieving data. |
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Term
Travel and tourism businesses often are able to recover any losses caused by pure risks by purchasing
A. insurance. B. security systems. C. warranties. D. safety devices. |
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Definition
A
Insurance. Pure risks are risks that carry with them the possibility of loss or no loss, and they are insurable. Insurance is not available to protect against speculative risks. Security systems and safety devices warn of possible risks but do not reimburse travel and tourism businesses for losses. Warranties are contractual agreements between a buyer and a seller in which the seller promises to repair or replace faulty products. |
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Term
A characteristic of an oligopoly is that travel and tourism businesses operating in this type of a market are greatly influenced by the
A. controls of government. C. actions of competitors.
B. availability of resources. D. lack of technology. |
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Definition
C
Actions of competitors. An oligopoly is a market structure in which there are relatively few sellers, and industry leaders usually determine prices. As a result, travel and tourism businesses that operate in this type of a market are greatly influenced by the actions of their competitors. For example, if one major business lowers prices, the other businesses may be forced to follow suit or risk losing business. Travel and tourism businesses operating in an oligopoly are not greatly influenced by the availability of resources, controls of government, or lack of technology. |
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Term
Unemployment hurts the economy because unemployed people are unable to contribute to the
A. balance of payments. C. annual federal deficit.
B. gross domestic product. D. standard of living. |
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Definition
B
Gross domestic product. The gross domestic product is the final market value of the total output of all goods and services produced within a country's geographic boundaries during a year's time. When people are unemployed, they do not work to produce the goods and services that are part of the gross domestic product; therefore, there are fewer goods and services available for people to purchase. As a result, the overall economy is affected by unemployment because the unemployed are unable to contribute to the gross domestic product. The federal deficit is the amount of money that the government owes. The balance of payments is the difference between all monies coming into a country and going out of a country. The standard of living is the general condition in which people live. |
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Term
The U.S. produces widgets faster and cheaper than Switzerland. In this example, the U.S. has a(n) __________ advantage.
A. predictable B. comparative C. constructive D. absolute |
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Definition
D
Absolute. The uneven distribution of productive resources enables one country to be able to produce a good or service more cheaply than another country can. For example, efficient factories and skilled labor may enable the United States to produce office machines more cheaply than they can be produced in Malaysia. A comparative advantage is the benefit that a country obtains from specializing in and producing goods and services at which it is relatively most efficient. Advantages usually are not predictable. Constructive advantage is not a widely used term to describe concepts related to international trade. |
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Term
If Megan, an employee of the Star Cruise Lines, wants to lead change in her work environment, she must have the ability to
A. perform all types of tasks. C. make friends with managers.
B. ask a variety of questions. D. guide or direct others. |
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Definition
D
Guide or direct others. A person who wants to lead change in the workplace must have the ability to guide or direct others with the intention to transform or alter something. Getting people to change involves guiding or directing them to do something in a different way. People usually will not follow the lead of another person if that person cannot provide guidance or direction. A person who wants to lead change often needs to answer a variety of questions to explain the need for change. A person who wants to lead change does not need to make friends with managers or perform all types of tasks. |
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Term
Which of the following is a factor that might prevent travel agents from developing cultural sensitivity:
A. Ethics B. Demographics C. Stereotypes D. Principles |
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Definition
C
Stereotypes. A stereotype is a set image or an assumption about a person or thing. Stereotypes often influence the way people think about other people, and might prevent travel agents from developing cultural sensitivity. To be culturally sensitive, travel agents need to be aware that people in other parts of the world live and think very differently than they do. Travel agents need to be open-minded rather than assume that all people in one culture behave in a certain manner. Demographics are the physical and social characteristics of the population. Ethics are the basic principles that govern your behavior. Travel agents who have principles and are ethical often are able to develop cultural sensitivity because they try to avoid stereotyping others. |
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Term
A characteristic of authoritarian managers is that they
A. provide only general guidance. C. tend to share authority.
B. ask employees for feedback. D. make all significant decisions. |
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Definition
D
Make all significant decisions. A characteristic of authoritarian managers is that they make all significant decisions. They enjoy being in command and exercising tight control over employees. They also rely heavily upon their own judgment and prefer to make all significant decisions themselves without obtaining feedback from others. They are unwilling to share authority, and they provide very specific guidance to workers. |
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Term
Which of the following is a basic form of recognition that can be used often by a tour wholesaler:
A. Having a banquet C. Awarding prizes
B. Saying thank you D. Conducting a contest |
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Definition
B
Saying thank you. Saying thank you is a basic form of recognition that can be used often. However, it is important to say it directly to the person or to write the person a note or send the person an e-mail. A thank you is very meaningful to the receiver, who often shares the note or e-mail with others. Having a banquet or awarding prizes are other forms of recognition that are not used often because they are expensive. However, a business might have an annual recognition banquet or award prizes on special occasions. Conducting a contest is not a form of recognition. |
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Term
Why is it important for tour operators to assess customers' special needs?
A. To prevent unexpected illness C. To make the tour accessible
B. To be prepared for accidents D. To schedule airline departures |
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Definition
C
To make the tour accessible. Customers with special needs, such as physical disabilities, often take tours. To make the tour accessible to these customers, it is important for tour operators to assess customers' special needs. In some cases, tour operators may need to select another hotel that has handicapped-accessible rooms or elevators to accommodate customers in wheelchairs. Tour operators may need to inspect dining facilities to make sure they are accessible to all customers. The goal is to make the tour accessible, comfortable, and enjoyable to customers who have special needs. Assessing customers' special needs will not enable tour operators to be prepared for accidents or prevent unexpected illness. Tour operators do not schedule airline departures. |
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Term
Traci is going to apply for a loan at a local bank so that she can purchase business equipment for her travel agency. For which of the following credit accounts will Traci be applying:
A. Budget B. Revolving C. Installment D. Unsecured |
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Definition
C
Installment. An installment credit account is a type of credit account set up to handle one total amount of credit which is to be paid off in regular installments. Installment credit is commonly used to purchase large, expensive items such as cars, furniture, expensive equipment, etc. Revolving credit is a type of credit account which limits the total amount of money that may be owed and charges interest on outstanding balances. Budget credit is a form of short-term credit often set up for 60- or 90-day time periods with payments usually due every 30 days. An unsecured loan is an amount of money borrowed by an individual or business simply by signing a promissory note promising to repay the loan. |
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Term
Developing a personal budget is an effective way to
A. pay bills. B. manage money. C. calculate assets. D. increase debt. |
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Definition
B
Manage money. A budget is an estimate of what income and expenses will be for a specific time period. By developing a budget, individuals can manage their money. The budget will enable them to estimate income, perhaps for the next month, and also estimate the various expenses such as car payment, clothing, entertainment, etc. Then, they will be able to compare income with expenses and plan how to spend their money. Preparing a budget will make it possible to determine if they are barely able to pay bills each month or if there are funds remaining to put in a savings account. If funds are tight, they can analyze the various expenses and find ways to cut back in order to more effectively manage their money. Developing a budget allows individuals to identify the bills that must be paid; however, a budget does not pay bills. A budget does not include a list of assets. Budgeting often helps individuals to decrease debt by managing money more effectively. |
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Term
What type of security measures are often unique to cruise ships?
A. Surveillance cameras C. Fireproof safes
B. High-quality locks D. Sprinkler systems |
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Definition
A
Surveillance cameras. The type of security measures needed largely depends on the nature of the business. Sprinkler systems, high-quality locks, and fireproof safes are good security measures for most businesses. However, a cruise ship might want additional measures such as surveillance cameras for passenger-safety reasons. |
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Term
A tour operator preparing to apply for an increased line of credit with a local bank probably would ask the accounting department to compile a
A. marketing-information report. C. truth-in-lending plan.
B. profit-and-loss statement. D. capital-goods analysis. |
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Definition
B
Profit-and-loss statement. A profit-and-loss statement is an income statement that summarizes a business's revenue and expenses over a period of time. A tour operator preparing to apply for an increased line of credit probably would ask the accounting department to compile a profit-and-loss statement in order to provide current financial information to the bank. The information in a profit-and-loss statement reflects the business's financial condition and indicates if it is making sufficient profit to repay an increased line of credit, which is a type of loan. A marketing-information report contains marketing-related data from inside and outside the business. A capital-goods analysis lists all the equipment, resources, facilities, etc., owned by the tour operator. Truth-in-lending is a federal law that requires all finance charges to be disclosed on consumer credit agreements. |
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Term
What type of ratio is used to measure the ability of a travel agency to turn assets into cash?
A. Liability C. Activity
B. Profitability D. Liquidity |
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Definition
D
Liquidity. Liquidity refers to the time that a business (e.g., travel agency) takes to turn assets (e.g., equipment, property) into cash so it can pay the company's debts. Liability is defined as debt that an individual or a business owes. Profitability is the level of profit (monetary reward) of a business or a product. Activity refers to a task that is performed to generate a specific outcome. |
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Term
The tour wholesaler's revenue and expense figures from the previous year are used in developing a new
A. operating budget. C. accounting system.
B. marketing plan. D. loan application form. |
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Definition
A
Operating budget. The previous year's financial information is used to project revenue from sales and the cost of doing business for the next year. The operating budget estimates income and expenses for a specific period of time, usually one year. A marketing plan is a set of procedures or strategies for attracting the target customer to a business (e.g., tour wholesaler). The accounting system is a method of recording and summarizing a company's income and expenses. A loan application form asks for specific financial information about a company in order for the company to borrow money from a lending institution. Lending institutions develop loan application forms rather than business applicants. |
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Term
Which of the following is an example of a convention center hotel balancing daily posting transactions:
A. Preparing bank account deposit slips C. Verifying guests' purchases of refreshments
B. Calculating value of guests' advance payments D. Maintaining records of taxable purchases |
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Definition
C
Verifying guests' purchases of refreshments. Convention center hotel guests often purchase items, such as refreshments, that are not included in the overall price of the room or the travel package. When guests make these purchases, the hotel adds them to the individual guest's account by posting the charges to the guest's bill. A convention hotel auditor reviews the postings on a daily basis to make sure that all transactions are placed on the correct account and that all transactions are correctly accounted for and balanced. Calculating value of guests' advance payments, preparing bank account deposit slips, and maintaining records of taxable purchases are not examples of a convention center hotel balancing daily posting transactions. |
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Term
When booking airline tickets, hotel accommodations, and car rentals for clients, travel agents usually __________ before travel begins.
A. run credit-check reports C. identify possible refunds
B. transfer payments to the suppliers D. determine the amount of profit |
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Definition
B
Transfer payments to the suppliers. Travel agents book airline tickets, hotel accommodations, and car rentals for clients on a routine basis. However, they usually pay for these services before the clients travel. In most cases, the clients pay the travel agents and the travel agents transfer payments to the suppliers. In some cases, the travel agents might transfer a deposit for hotel accommodations or car rentals, and the clients pay the balance. However, payment for airline tickets is always transferred prior to travel. Travel agents usually do not run credit checks because they receive payment from clients in advance and know the funds are available before transferring funds to suppliers. When booking airline tickets, hotel accommodations, and car rentals for clients, travel agents do not identify possible refunds or determine the amount of profit before travel begins. |
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Term
Airlines often verify the information provided on job applications and résumés by
A. conducting background checks. C. interviewing former coworkers.
B. questioning the applicants. D. hiring private investigators. |
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Definition
A
Conducting background checks. Before selecting candidates to interview, airlines screen job applications and résumés to identify those who have the appropriate backgrounds. After identifying the best candidates, airlines often conduct background checks to verify the information that was provided. This might include calling the references and former employers who were listed on the applications/résumés. The purpose is to make sure that the information is accurate and that applicants are not misrepresenting themselves. Airlines cannot verify the information by questioning the applicants who provided the information. It would be difficult for airlines to identify and interview former coworkers unless these individuals were listed as references. Airlines do not hire private investigators to verify job application information. |
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Term
Calculate an airline's employee turnover rate if the average number of employees last year was 500, and the business hired 60 new employees to replace those that left during the year.
A. 15% C. 12%
B. 10% D. 16% |
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Definition
C
12%. Employee turnover is the rate at which people enter and leave employment in a particular business, such as an airline, during the year. The rate is a very important number to the airline. The higher the rate, the more often the airline needs to train new employees. The formula to calculate employee turnover rate is number of new hires divided by the average number of employees (60 ÷ 500 = 12%). |
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Term
Why do cruise lines maintain information about their employees' deductions for health coverage, pension plan, and stock options?
A. To keep track of income from interest C. To borrow funds to cover costs
B. To calculate employees' financial status D. To verify employees' contributions |
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Definition
D
To verify employees' contributions. Cruise lines are required to maintain a variety of personnel records, some of which deal with the compensation paid to employees. Most employees have funds deducted from their salaries to cover their share of the cost of health coverage and pension plans or to participate in a company stock program. These deductions have an effect on the amount of income tax that the employees are required to pay. Cruise lines keep records of these deductions to verify the amount the employees contributed and to explain the deductions if necessary. Cruise lines do not maintain this type of information to calculate employees' financial status, to borrow funds to cover costs, or to keep track of income from interest. |
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Term
One of the ways in which managing diversity contributes to a cruise line's success is that the cruise line will be able to
A. reduce its productivity levels. C. create a homogeneous workforce.
B. attract and to retain talented workers. D. make managers' jobs easier for them. |
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Definition
B
Attract and to retain talented workers. A cruise line with a reputation for treating its employees fairly is much more likely to get and to keep good workers. This benefit of managing diversity will be especially important if predictions for the continued shrinking of the labor pool of educated/skilled workers are accurate. Cruise lines that manage diversity well have a diverse workforce rather than a homogeneous workforce. Managing a diverse workforce is more difficult and takes more of managers' time than managing a homogeneous workforce. A cruise line would not want to reduce its levels of productivity. |
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Term
One of the reasons why travel agencies assess employee performance on a regular basis is to provide the employee with
A. health and safety training. C. outplacement services.
B. information about new benefits. D. constructive ideas for improvement. |
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Definition
D
Constructive ideas for improvement. Performance assessments are designed to recognize employees' good performance, as well as to identify areas needing improvement. If employees are not performing according to established standards, travel agencies should provide them with ways to improve. This might include arranging for additional training, or having experienced employees work with new employees. The goal is to help employees improve. Travel agencies do not assess employee performance to provide information about new benefits, or to provide health and safety training. However, that type of training might be necessary as a result of the performance assessment. Outplacement services often are provided to employees who are being laid off or terminated. |
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Term
Which of the following is a type of external marketing information that helps tour wholesalers make decisions:
A. Purchasing records C. Customer databases
B. Demographic trends D. Sales predictions |
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Definition
B
Demographic trends. Demographic trends indicate changes in the physical and social characteristics of the population. Gathering information about demographic trends helps tour wholesalers to make decisions about what travel packages to sell in the future to meet the changing needs of the population. An example of a demographic trend is the aging of the "Baby Boomer" generation that is reaching retirement age. This is a large segment of the population that has different wants and needs than younger people. To remain competitive, tour wholesalers need to understand these different wants and needs. Purchasing records, customer databases, and sales predictions are types of internal marketing information that help tour wholesalers make decisions. |
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Term
A marketing-information management system can help tour companies to
A. practice good business ethics. C. motivate employees.
B. discover employee potential. D. discover new markets. |
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Definition
D
Discover new markets. A marketing-information management system is designed to provide accurate and timely information that may help to expand or discover new markets when analyzed. Employee motivation, employee potential, and business ethics are concerns of management rather than marketing. |
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Term
So a travel agency can retrieve current customer and internal marketing information from a central location, it may use which of the following technological tools:
A. A database C. Opt-in e-mail
B. Presentation software D. A CAD program |
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Definition
A
A database. A database is a collection of information that a travel agency can retrieve quickly. Many travel agencies use databases to store information about their customers, such as contact information and buying preferences. Presentation software is a computer application that displays a slide show. Opt-in e-mail messages are electronic promotional messages that are sent with a recipient's permission and allow the recipients to request removal from the subscriber list at any time. A CAD program is a computer software program that allows users to create multi-dimensional graphics. |
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Term
How might a travel or tourism business use the information in salespeople's lost-business reports that indicates that customers are dissatisfied with the business's credit policies and service?
A. To revise its marketing strategy C. To identify its target market
B. To change its operating goals D. To update its promotional techniques |
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Definition
A
To revise its marketing strategy. Travel and tourism businesses monitor lost-business reports because they usually contain an explanation of why customers no longer buy from the business. The reports might indicate that customers are dissatisfied with the product, dissatisfied with the business's credit policies, or are getting better prices and more service from competitors. A travel or tourism business might use this information to make changes to its marketing strategy in an attempt to regain customers or to prevent other customers from taking their business elsewhere. The more information a travel or tourism business obtains from lost-business reports, the better able it is to make useful and effective marketing decisions. Businesses in the travel and tourism industry do not use the information in lost-business reports to change their operating goals, identify their target markets, or update their promotional techniques. |
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Term
A travel agency manager wanting to forecast markets for his/her company for the coming year will take into account last year's travel volume and travel expenditures, as well as
A. places last year's clients visited. C. places friends say they want to visit.
B. current social and economic factors. D. sites the manager will be visiting during the coming year. |
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Definition
B
Current social and economic factors. An example of the marked impact social and economic factors have on the travel industry were seen in the months following the events of September 11, 2001. Other options have little, if any, effect on the market forecast. Friends may say they want to visit many places, but until they actually do, these wishes have no impact on the travel industry. Specific destinations may affect future marketing activities, but will have little effect on the market forecast as many destinations may require the same expenditures. Sites the manager will be visiting are not necessarily the ones the agency's clients will be visiting and, so, will not affect the forecast. |
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Term
A tourist destination that sends discount coupons to potential customers is using the __________ function of marketing.
A. selling C. promotion
B. financing D. product/service management |
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Definition
C
Promotion. The purpose of the promotion function of marketing is to communicate information about goods, services, images, and/or ideas to achieve a desired outcome. Some of the ways to communicate with customers include advertising, publicity, and sales promotion. Sending discount coupons to potential customers is a promotional form of communication intended to encourage customers to visit a tourist destination. Financing is the business function which determines the need for and availability of financial resources to aid in marketing activities. Selling is the marketing function which involves determining client needs and wants and responding through planned, personalized communication that influences purchase decisions and enhances future business opportunities. Product/Service management involves obtaining, developing, maintaining, and improving a product or service mix in response to market opportunities. |
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Term
What do travel agencies develop in order to set aside the funds needed to cover the cost of performing marketing activities?
A. Financial statement C. Marketing budget
B. Accounting system D. Cash-flow report |
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Definition
C
Marketing budget. The purpose of developing a marketing budget is to set aside the funds necessary to cover the cost of performing marketing activities. First, travel agencies need to estimate all costs including such categories as wages, supplies, postage, travel, office equipment, telephone, etc. Once travel agencies have compiled all the cost information, they can prepare budgets for each major marketing activity or for the marketing department as a whole to make sure funds are available to pay expenses. An accounting system is the methods and procedures used in handling the travel agency's financial information. Financial statements are summaries of accounting information. A cash-flow report is a summary of how much money is coming into, and going out of, a travel agency. |
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Term
In the travel and tourism industry, market segmentation is about dividing the market into __________ groups.
A. general C. specific
B. identical D. diverse |
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Definition
C
Specific. Market segmentation is about dividing the marketing into specific groups. Though the customers in the specific groups will have similarities, they will not be identical. There may even be a measure of diversity within the groups. But the goal of market segmentation in the travel and tourism industry is to narrow the general market to its specific travel and tourism subgroups. |
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Term
Marketing planning for the overall business for a period of several years usually provides __________ for the airline.
A. departmental budgets C. policies and procedures
B. long-term direction D. regional management |
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Definition
B
Long-term direction. Marketing planning can involve both long-term and short-term guidance for an airline. Long-term direction usually involves planning for the overall business for a period of several years. This type of planning is carried out by top management and affects the operation of the entire organization. Marketing planning for short-term direction might involve one department of an airline for several months. Short-term planning is concerned with issues such as departmental budgets, policies and procedures that may change over time, and regional management. |
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Term
Which of the following is one of the main components of a tour wholesaler's marketing plan:
A. Regulations C. Strategy
B. Technology D. Competitors |
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Definition
C
Strategy. One of the main components of a marketing plan involves developing the strategy to achieve the plan's goals. A tour wholesaler's marketing plan not only identifies specific objectives to achieve but also develops the various strategies that will be used to accomplish those objectives. Some of the most important strategies include selecting the target markets and deciding on the specific activities that will be used to attract those customers. Technology, regulations, and competitors are not components of the marketing plan; however, a tour wholesaler should consider the latest technology, any pertinent regulations, and the activities of competitors when developing a marketing plan. |
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Term
One reason it is important for airlines to consider market potential when conducting a market analysis is because market potential indicates the
A. number of consumers in an area. C. total possible demand for a product.
B. expected annual sales volume. D. competitors selling the same product. |
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Definition
C
Total possible demand for a product. There are several factors that airlines consider when conducting a market analysis. One factor is market potential, which is the total possible demand for a product (e.g., air travel) during a certain period of time. Market potential indicates the best-case scenario for sales of a certain product throughout the market. For example, if 100 consumers want to travel to a certain location, the total demand for air service is 100. If several airlines offer service to the location, they will share the market and no one airline will sell to all 100 consumers. Airlines need to determine the market potential because they need to decide if the demand is large enough to generate a profit for all the airlines that offer similar transportation services. Market potential does not indicate the expected annual sales volume, the number of consumers in an area, or the competitors selling the same product. |
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Term
As a result of reviewing competitors' promotional activities while conducting a competitive analysis, a tour business might decide to
A. implement similar activities. C. revise pricing strategies.
B. eliminate all advertising. D. provide additional sales training. |
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Definition
A
Implement similar activities. When tour businesses conduct a competitive analysis, they consider their competitors' promotional activities because promotional activities have an impact on a tour business's success in attracting customers and selling products. As a result of analyzing competitors' promotional activities, a tour business might decide to use similar activities because they have proven to be effective. A tour business would not decide to eliminate all advertising. Promotional activities do not include pricing strategies or sales training. Other aspects of a competitive analysis might indicate that a tour business should revise its pricing strategies or provide additional sales training. |
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Term
What might a cruise line decide to do if the information in its sales forecast predicts a drop in demand for the cruise line's services?
A. Reduce prices by 4% C. Increase output
B. Decrease advertising budget D. Recruit 50 new employees |
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Definition
A
Reduce prices by 4%. Cruise lines use the information in sales forecasts to make decisions that will contribute to their success. One of these decisions involves price. If a sales forecast predicts a drop in demand for the cruise line's services, the cruise line may decide to reduce prices in order to generate more sales. If a sales forecast predicts a drop in demand, a cruise line would not increase output (production) or recruit new employees. Many cruise lines increase advertising when demand begins to drop in order to attract new passengers. |
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Term
To reach their goal, travel and tourism marketers plan the route they believe to be
A. easy. C. straight.
B. reasonable. D. efficient. |
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Definition
D
Efficient. To reach their goal, travel and tourism marketers plan the route they believe to be efficient. A reasonable route is a road that may take the travel or tourism marketer to his/her goal, but it may not be the best option. An easy route may not require much effort, but it may not return a successful outcome, either. An easy route may take the travel or tourism marketer way off course. A straight route may seem direct, but it may not speed the travel or tourism marketer's way. And, selecting a reasonable or satisfactory route implies the navigator applied a halfhearted effort. |
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Term
Analyzing whether the tour wholesaler is making an acceptable profit on the sale of its tour packages is one way to evaluate its
A. capital resources. C. marketing plan.
B. inventory level. D. accounting department. |
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Definition
C
Marketing plan. A marketing plan is a set of procedures or strategies for attracting the target customer to a business. One way to determine if a marketing plan is effective is to analyze whether the tour wholesaler is making an acceptable profit on the sale of its tour packages. In some cases, tour wholesalers invest a lot of time and money in marketing tour packages but realize very little profit. If a tour wholesaler decides that the profit level is low, it might reduce its marketing activities or identify other types of marketing activities that are less costly to implement. The accounting department is a special department responsible for the tour wholesaler's accounting records. Capital resources are the money, machinery, equipment, and supplies used in production. Inventory level is the amount of goods on hand. |
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Term
A current issue in the travel and tourism industry concerns developing facilities that are
A. sensitive to the environment. C. located in populated areas.
B. supported by government funding. D. appealing to all market segments. |
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Definition
A
Sensitive to the environment. Concerns about conserving and preserving the environment are important issues in the travel and tourism industry. There is more awareness about the harm that uncontrolled development can have on the physical environment and more pressure on developers to be responsible. As a result, the new facilities being developed take the environment into consideration and make adjustments to preserve native plants and animals. A trend in travel and tourism is towards more market segmentation rather than trying to appeal to all markets. In most cases, government does not fund private development. Many facilities are being developed in unpopulated areas, which increases the possibility of disturbing the natural environment. |
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Term
Which of the following is an economic factor that travel and tourism businesses might identify as a result of conducting an environmental scan:
A. Population shift C. Unemployment rate
B. Increased regulation D. Lifestyle adjustment |
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Definition
C
Unemployment rate. An environmental scan is an analysis of external forces that influences a travel or tourism business's success. The fluctuation of unemployment rates is an economic factor because unemployment has an effect on consumers' ability to buy goods and services. If consumers are unemployed, they do not have income to spend. As a result, travel and tourism businesses do not sell as much because consumers are not buying. When this situation occurs, travel and tourism businesses often reduce expenses in an attempt to stay in business until the rate of employment starts to rise again. Increased regulation is a political factor. Population shift is a demographic factor. Lifestyle adjustment is a cultural factor. |
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Term
Which of the following is a procedure that a tour operator might use when handling emergency situations such as natural disasters:
A. Protect private property C. Assist with evacuation
B. Provide medical advice D. Activate alarm system |
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Definition
C
Assist with evacuation. On occasion, tour operators and their tour groups might be involved in emergency situations such as natural disasters. If this happens, tour operators should be prepared to assist local authorities with the evacuation of the group. Tour operators need to know where all group members are in order to quickly and safely evacuate them from dangerous situations such as hurricanes. Tour operators are not expected to provide medical advice, protect private property, or activate alarm systems. |
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Term
When reordering supplies, travel agencies must compare the financial impact of storing the items against the
A. interest rates. C. fixed expenses.
B. selling price. D. ordering costs. |
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Definition
D
Ordering costs. Ordering costs are the expenses that businesses (e.g., travel agencies) incur to buy supplies. The price they pay for the items, shipping charges, taxes, personnel salaries, and some operational expenses (e.g., telephone charges) might be considered when determining the ordering costs. Ordering costs are often compared to the cost of storing the product for a certain period of time. When storage costs are less than ordering costs, travel agencies generally reorder more items (e.g., office supplies) on a less frequent basis. The selling price is the price that the end user pays for an item. Travel agencies do not sell their supplies to their clients. Fixed expense refers to the payables that remain the same for a set period of time. Insurance and rent are examples of a business's fixed expenses. Interest is defined as the money payments for the use of borrowed money. The interest rate is the percentage figure used in calculating interest charges for a loan. |
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Term
A project manager persuading group members to reach an agreement about how to carry out a project is an example of
A. negotiation. C. organization.
B. leadership. D. communication. |
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Definition
A
Negotiation. Negotiation is the process of one person reaching an agreement with another person to meet specific wants or needs. Negotiation is an important skill because project managers must be able to influence others to take a certain course of action in order to achieve a desired outcome. Leadership is the ability to guide others in a desired manner. Organization is bringing all components together to achieve the project goals. Communication is the ability to express yourself clearly and simply. |
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Term
Cruise-line employees who are courteous, exhibit good human-relations skills, and communicate clearly may be able to reduce expenses in the __________ area of the business.
A. planning C. bookkeeping
B. customer-service D. payroll |
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Definition
B
Customer-service. Being able to use good human relations skills and to communicate properly with passengers who have inquiries and/or complaints could help to save money in the customer-service area by reducing errors in handling transactions. Good human-relations skills would have little effect on expenses in the payroll or bookkeeping areas because the work done in these areas is not dependent upon these skills and may require minimal contact with customers. Planning is a management function. |
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Term
A small tour business has developed an expense-control plan specifying that payroll can be no more than 15% of sales. If sales are $60,000, how much can the business spend on payroll?
A. $9,000 C. $12,000
B. $6,000 D. $15,000 |
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Definition
A
$9,000. To determine how much the tour business can spend on payroll, multiply the amount of sales by 15% ($60,000 x 15% or .15 = $9,000). |
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Term
The most effective way to dust a travel agency that has 7-foot shelves, waist-high counters, and floor-level displays would be to dust
A. from the top shelf down toward the floor. C. with a stiff, untreated cloth.
B. after rearranging everything on the shelves. D. from the floor up toward the top shelf. |
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Definition
A
From the top shelf down toward the floor. Even when dusting is done with great care, some dust is redistributed rather than being absorbed by the cloth. If the person dusting starts at the top, any loose dust will fall on the area below and can be wiped up as s/he moves down toward the floor. Dusting should be done with a soft, absorbent or damp cloth that has been treated to hold the dust. Removing everything from the shelves before dusting is preferable to merely rearranging the items. |
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Term
Logical thinkers will probably choose the __________ method for problem solving.
A. appreciative inquiry C. intuitive
B. seven-step D. brainstorming |
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Definition
B
Seven-step. There's more than one way to solve any problem. The approach you choose depends on your comfort level and experience with a particular approach. It may also depend on how you think best. Logical thinkers who think through things in a step-by-step manner will probably prefer the seven-step method. The intuitive, appreciative inquiry, and brainstorming methods are all more creative and instinct-based than a logical thinker would probably prefer. |
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Term
To allow your ideas to flow freely when trying to be creative, you should avoid being
A. curious. C. determined.
B. independent. D. self-critical. |
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Definition
D
Self-critical. Few things stop creativity like criticism. Censoring your ideas limits the number of ideas you have and often limits the quality of those that do appear. Independence, curiosity, and determination are traits that creative people often have in common. |
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Term
Kevin is interested in a career in the travel and tourism industry. He visited three local businesses to obtain industry information and make important contacts. What career search tool did Kevin use?
A. Informational interview C. Industry analysis
B. Occupational review D. Employment interview |
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Definition
A
Informational interview. The informational interview is used to learn about careers, get advice on preparing for careers, obtain industry information, and make contacts with people working in the field of interest. Employment interviews are used to screen applicants for jobs. Occupational review and industry analysis are not career search tools. |
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Term
Which of the following professional organizations would a business in the travel and tourism industry be most likely to join:
A. National Tour Association C. Information Technology Association of America
B. International Trade Administration D. International Aircraft Mechanics Organization |
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Definition
A
National Tour Association. The National Tour Association is an organization composed of people who work in the travel and tourism industry. The International Trade Administration is not a professional organization but a government agency. The Information Technology Association of America consists of members who work in the information technology (IT) industry. If it existed, the International Aircraft Mechanics Organization would most likely consist of member whose jobs are to maintain and repair airplanes and helicopters. These members may or may not work for businesses that provide travel and tourism services. |
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Term
A major reason travel professionals might join industry organizations is to
A. network with people who work in unrelated industries.
B. find out where they should take a family vacation.
C. keep up with industry issues, trends, statistics, and research.
D. earn a bachelor's degree in travel and tourism. |
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Definition
C
Keep up with industry issues, trends, statistics, and research. Professional organizations typically offer current industry data as part of their service to members and the public. Professional organizations may offer continuing-education programs but they are not college-degree-granting institutions. A travel professional would not likely become a member of an industry organization to get vacation advice, since they have such information available through their work. Industry organizations are generally made up of people who work inside an industry, not people in unrelated industries. |
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Term
Which of the following is a print source of additional information on travel destinations that travel agents often use to help a client plan a vacation:
A. Newspapers C. Testimonials
B. Guidebooks D. Illustrations |
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Definition
B
Guidebooks. There are a variety of guidebooks available that contain additional information on travel destinations, such as lists of accommodations and restaurants, descriptions of historical and cultural attractions and events, names of museums and art galleries, and maps. Examples of guidebooks include the Michelin Guides, the Fodor Guides, and the Frommer Guides. Travel agents often use these guidebooks as a source of additional information when helping a client plan a vacation. Travel agents usually do not rely on newspapers for information, although they may read relevant travel articles. A travel agent might mention that another client had a positive experience visiting a certain location. However, this type of testimonial is not a source of additional information. Illustrations may provide visuals of destinations, but do not provide additional information. |
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Term
In which of the following businesses is the business owner usually responsible for price setting:
A. Princess Cruise Lines C. Hilton Hotels
B. United Airlines D. Tim's Lakeside Bus Tour |
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Definition
D
Tim's Lakeside Bus Tour. The owner is more likely to be in charge of pricing for a small business such as a sole proprietorship. United Airlines, Hilton Hotels, and Princess Cruise Lines are all large companies that have departments responsible for the pricing function. |
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Term
What kind of competitive market is characterized by a great many buyers and sellers of nearly identical products and marketers who have little control over pricing?
A. Monopolistic competition C. Oligopoly
B. Pure competition D. Monopoly |
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Definition
B
Pure competition. More competition exists in this kind of market than in any other. Most products are sold at market price. Sellers can't raise their prices above the market price because buyers can obtain all they want of the product at the lower market price. Sellers also can't lower the price to increase demand because buyers are already buying as much as they want of the product. Monopolistic competition is characterized by many buyers and sellers and a range of prices rather than one market price. In an oligopolistic market, there are relatively few sellers, and the industry leader usually determines prices. In a pure monopoly, there is only one seller or provider of a product, and no substitutes are readily available. |
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Term
When setting the price of a group tour, what does a tour operator calculate first?
A. Applicable sales tax C. Cost per person
B. Margin of profit D. Rate of inflation |
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Definition
C
Cost per person. When setting the price of a group tour, tour operators usually begin by calculating the per-person costs such as the cost for a hotel room, the cost of meals, the cost of admission to an attraction, etc. Once the cost per person is known, the tour operator multiplies that amount by the number of people in the tour to determine the cost of a group tour. For example, if the per-person cost is $550 for a four-night tour and there will be 40 people on the tour, the cost of the group tour is $22,000. Then, the tour operator factors in profit based on the group cost to set the actual price. If the tour operator wants a 20% profit, multiply the group cost by that percentage and add to the cost to set the price of a group tour ($22,000 x 20% or .20 = $4,400; $22,000 + $4,400 = $26,400). Sales tax is added to the actual price. The rate of inflation is not a factor. |
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Term
Which of the following questions would be part of product/service management:
A. Which training method works best for employees?
B. What type of insurance should we purchase?
C. Is the product packaged appropriately?
D. How will we communicate a positive image to our clients? |
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Definition
C
Is the product packaged appropriately? Product/Service management is the process of obtaining, developing, maintaining, and improving a product or service mix in response to market opportunities. It includes all activities from the time of a product's creation to the time of its removal from the company's line of products. Choosing the appropriate packaging for the product is one of those activities. Purchasing insurance is not a function of product/service management. The choice of training method is a management decision. How a business communicates to outsiders is a function of promotion. |
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Term
One reason why the planned obsolescence of certain products often is considered an ethical issue is because of the products' short life that has an effect on the
A. natural resources that are needed to produce them.
B. cost of designing and developing them.
C. value of training employees to sell them.
D. way that customers decide to use them. |
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Definition
A
Natural resources that are needed to produce them. Because of continual advances in technology, some products become obsolete very quickly. Some businesses plan for these products to become obsolete quickly so they can sell new, updated versions. This is often considered an ethical issue because the use of natural resources may be involved in producing goods that have a short life span. Many people believe that it is unethical to waste valuable natural resources to produce products that will be used for only a short time. The cost of designing and developing products, the value of training employees to sell those products, and the way that customers decide to use the products are not reasons why the planned obsolescence of certain products often is considered an ethical issue. |
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Term
During the idea-generating process, a tour wholesaler should first consider how the tour package would fulfill the __________ needs.
A. industry's C. customers'
B. business's D. managers' |
|
Definition
C
Customers'. When generating product ideas, a tour wholesaler must consider what the end-user (customer) wants to obtain from the tour package. If the tour or experience does not fulfill a need or want, the customer is less likely to buy it. The tour wholesaler might consider how the tour package would fulfill its own needs (e.g., profit), but if the package does not fulfill the customers' needs, the customer will not buy it and the tour wholesaler will not earn a profit. Although it is possible to consider the industry's needs and the managers' needs, the tour wholesaler should always first consider how the tour package would satisfy the customer. |
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Term
One way that a travel agency is often able to recognize product opportunities in the marketplace is by monitoring
A. personnel. B. trends. C. finances. D. plans. |
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Definition
B
Trends. A product opportunity is a situation in which a travel agency acts on the chance to provide a good or service to a market segment that wants and is willing to pay for the product. One way that a travel agency recognizes product opportunities is to monitor trends by using a systematic or step-by-step process. A trend is the general direction in which people or events are moving. A travel agency often monitors many types of trends including demographic, psychographic, and economic trends. Once a travel agency identifies a trend, it can develop products to satisfy the needs of a particular market. Monitoring personnel, finances, and plans does not generally help a travel agency to recognize product opportunities. |
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Term
What power does the Federal Trade Commission have over businesses that violate consumer-protection laws?
A. It can bring legal action against the businesses.
B. It can recall or ban unsafe products.
C. It can set safety standards for businesses to follow.
D. It can require businesses to obtain the FTC's guidelines for complying with consumer-protection laws. |
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Definition
A
It can bring legal action against the businesses. The Federal Trade Commission has the power to bring legal action against businesses that violate consumer-protection laws. For example, it can require an advertiser to correct deceptive ads. The FTC provides guidelines for businesses to follow in order to help them understand and comply with consumer-protection laws. The Consumer Product Safety Commission can recall or ban unsafe products and set safety standards for businesses to follow. |
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Term
Travel and tourism businesses can set up product lines according to which of the following methods:
A. Distribution B. Alteration C. Contraction D. Expansion |
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Definition
A
Distribution. A travel and tourism business may offer any number of product lines and define them in a variety of ways. Travel and tourism businesses that set up product lines according to the way in which products reach the customer are using the distribution method. For example, travel and tourism businesses that sell travel and tour packages solely from their web sites are using the distribution method of setting up product lines. Expansion, alteration, and contraction are product-mix strategies. |
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Term
Focusing on its products' superior attributes is a way that a travel agency positions the products __________ the market leader.
A. against B. above C. with D. beside |
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Definition
B
Above. Positioning is a product mix strategy in which a travel agency creates a certain image or impression of a travel product in the minds of consumers. The market leader (the competing product with the highest market share) is often an important factor that the travel agency considers when conceptualizing the travel products' position in the marketplace. When the travel agency focuses on its travel products' positive, unique, or superior characteristics, it is positioning the products above the market leader. Positioning against the market leader means that the travel agency is contrasting its travel products with the market leader. By positioning the product with the market leader, the business is focusing on how its products are as good as the market leader's products. Marketers do not usually use the term "beside" to describe a way to position a product in relation to the market leader. |
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Term
Which of the following is a characteristic of a good brand name:
A. Distinctive B. Offensive C. Individual D. Private |
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Definition
A
Distinctive. A brand name is the part of a brand that can be spoken, such as a word, a phrase, a letter, and/or a number. It should set the product apart from other products by not being too common or too similar to those used by competitors. A good brand name should not be offensive, or insulting, to any segment of the population. A good brand name may be a private brand owned by a firm and used on its own products or an individual brand, one of many different brand names used for a company's products. These are categories of brands, not characteristics. |
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Term
An airline's president or owner can be the brand champion by
A. immediately replacing employees who don't conform to brand standards.
B. replacing the mission statement every year or two.
C. helping employees understand how to demonstrate the brand in their jobs.
D. developing a catchy slogan. |
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Definition
C
Helping employees understand how to demonstrate the brand in their jobs. One of the most important responsibilities of a business owner or CEO in his/her role as brand champion is helping employees understand how to demonstrate the brand in their jobs. The success of brands is dependent on employees' buying into brand values and incorporating them into their jobs every day. Developing a catchy slogan is not a primary responsibility of the brand champion; the brand champion is focused on brand pillars—for example, the core values and the brand promise—and how these will build customer relationships. A brand champion works to build enthusiasm and commitment to the brand among employees, rather than simply replacing them. Brand champions do not replace a business's mission statement. Instead, the brand champion continues to build upon the mission statement's foundation as the business grows. |
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Term
Which of the following is a site variable that often has an effect on travel and tourism in certain locations:
A. Hotel facilities B. Restaurant options C. Weather conditions D. Airport terminals |
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Definition
C
Weather conditions. Site variables are geographic or climatic conditions, and include the types of weather conditions such as hot, rainy, windy, etc. The weather conditions in certain locations have an effect on travel and tourism in those locations. In many locations, the weather conditions change with the seasons of the year. Travelers usually plan trips to coincide with favorable weather conditions. For example, travelers who want to snow ski would not travel to a ski resort in the summer because the weather conditions would not be suitable for skiing. Restaurant options, hotel facilities, and airport terminals are not site variables. |
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Term
In order to be effective, an airline's promotional messages need to be
A. hard to remember. C. used sparingly.
B. rewritten frequently. D. repeated frequently. |
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Definition
D
Repeated frequently. Most people would not remember an airline's promotional message if they heard it only once. It should not need to be rewritten frequently if it is properly prepared in the beginning. The most effective promotions are easy to remember. |
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Term
Because bricks-and-mortar travel agencies sell expensive travel products, clients generally expect them to provide more __________ than other businesses.
A. personal selling C. product lines
B. self-service items D. mass displays |
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Definition
A
Personal selling. Personal selling is the form of promotion that uses planned, promotional communications in order to influence purchase decisions to ensure satisfaction. Clients who are considering the purchase of expensive trips expect the travel agents to provide a lot of information and other assistance because of the amount of money the clients are spending. Businesses selling expensive products generally sell fewer product lines than other businesses. They are not likely to offer self-service items or to present their products in mass displays since these approaches would not be appropriate for expensive products. |
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Term
Which of the following attracts a web-site visitor's attention by using animated graphics that float across the web page to promote an all-inclusive travel package:
A. Rich-media advertising C. Satellite technology
B. Meta tags D. Click-through |
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Definition
A
Rich-media advertising. This is a promotional method in which an advertiser (e.g., travel agency) uses animation, flash, and other eye-catching techniques to draw attention to a web-site advertisement. Using flashing and animated graphics helps advertisers capture the viewers' attention to the advertising message. Meta tags are HTML codes that display information about web pages. Satellites are pieces of equipment located in outer space that transmit information to ports on the Earth. A click-through is the act of clicking on an advertisement on the Internet and being automatically transported to the advertiser's web page. |
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Term
Under which of the following circumstances is the response to electronic, direct mail likely to be the highest:
A. Recipients have given the advertiser permission to send the ad.
B. The delivered ad is strictly informational in nature.
C. The postal mail service delivers the ad on time.
D. The advertiser sends out an unsolicited ad to thousands of recipients. |
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Definition
A
Recipients have given the advertiser permission to send the ad. Opt-in e-mail marketing usually has a higher response rate because the recipients have actually expressed an interest in receiving information about the business's products. People do respond to unsolicited e-mails but in smaller numbers than with opt-in e-mail marketing. Electronic direct mail is not delivered via the postal mail service, but rather over computer networks. Recipients are most likely to respond to an electronic direct mail that provides them an offer such as a coupon or a discount, rather than just information. |
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Term
A disadvantage to travel businesses that use e-mail as a direct-mail strategy is that recipients may not get the message because many computers have
A. spam filters. C. reply options.
B. invalid home addresses. D. promotion controls. |
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Definition
A
Spam filters. Direct mail is a promotional medium that comes to consumers' homes and businesses. E-mail is a form of direct mail that businesses send by computer. Spam is junk e-mail that the recipient does not request and does not allow the recipient to request removal from the subscriber list. To reduce the amount of spam recipients receive, businesses and consumers are installing software programs that filter the spam, which keeps it from reaching the intended recipients. Invalid e-mail addresses, rather than home addresses, would prevent e-mail recipients from receiving e-mail. Reply options do not keep e-mail from reaching the intended message recipients. Promotion control is a fictitious term. |
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Term
Attractive visuals and testimonials from satisfied travelers are some of the materials that travel agents often include in
A. sales packets. B. confirmation letters. C. travel documents. D. marketing reports. |
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Definition
A
Sales packets. Sales packets include a variety of materials that are intended to persuade potential customers to buy travel products. Most sales packets in the travel and tourism industry include attractive visuals because they are appealing to the eye and give customers a view of the locations or attractions. Also, sales packets often include testimonials, which are statements by identified users of a travel product proclaiming the benefits received from the use of the product. The testimonials reinforce the idea that the trip or other travel product was worthwhile and would be enjoyable for others. Travel agents send confirmation letters after customers purchase a trip or travel plan. Travel documents include reservations, passports, visas, etc. Travel agents do not include attractive visuals and testimonials in marketing reports. |
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Term
Which of the following is the best example of the coordination of promotional activities:
A. Using personal selling to earn a sales commission
B. Sending out samples of a new product that is on display
C. Obtaining publicity for the firm's new product line
D. Advertising an upcoming sale a week ahead of time |
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Definition
B
Sending out samples of a new product that is on display. In this situation, the promotional activities of display and sales promotion are being coordinated for the purpose of introducing and selling a new product. Advertising a sale or obtaining publicity for new products are examples of single promotional efforts, not coordinated efforts. Using personal selling to earn a sales commission is an effort to reach a personal goal. |
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Term
In the travel and tourism industry, an employee who helps a customer or client decide what type of product to order is involved in the process of
A. planning. B. directing. C. coaching. D. selling. |
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Definition
D
Selling. Selling is a marketing function which involves responding to consumer needs and wants through planned, personalized communication that influences purchase decisions and enhances future business opportunities. An example of selling is a business employee helping customers decide what type of products best satisfy their particular needs. Selling enables customers to receive help with their buying problems. Coaching is an on-the-job instructional method in which an employee is assigned a "coach" to set goals and give assistance. Directing is the management function of providing guidance to workers and work projects. Planning is the management function that decides what will be done and how it will be accomplished. |
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Term
Which of the following must an airline's sales personnel possess in order to build a loyal clientele:
A. Appropriate personality traits C. Continued educational training
B. Professional awards and achievements D. Extensive technical experience |
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Definition
A
Appropriate personality traits. An airline's sales personnel must have the appropriate personality traits and attitudes in order to build a loyal clientele for the business. Effective salespeople generally are patient, courteous, friendly, sincere, honest, and trustworthy. These traits can turn a customer into a friend. The personal relationship that is established leads the customer to become a loyal client. Technical experience, professional awards, and continued training may help salespeople to sell, but do not necessarily build a loyal clientele. |
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Term
Which of the following is an example of how many travel agents use technology to increase communication and follow-up with clients:
A. E-mailing reminders C. Preparing sales letters
B. Holding videoconferences D. Offering training sessions |
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Definition
A
E-mailing reminders. E-mail technology makes it possible for salespeople to communicate with customers quickly and efficiently. An example of using this technology to increase communication and follow-up with customers is e-mailing reminders. The reminders might include a checklist of items to bring on an upcoming trip (e.g., passport). Customers are more likely to respond positively when they are reminded about something they need. This is a type of follow-up that often leads to repeat sales because customers feel that the travel agents are genuinely interested in them. Videoconferencing involves exchanging information via satellite from various locations. This technique may be used between businesses that have the necessary equipment, but would not be possible with individuals such as the clients who need to be reminded about special travel itineraries. Preparing sales letters and offering training sessions are routine types of communication and follow-up that do not require the use of technology. |
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Term
What have many airlines developed in order to offer more services and to make it easier for passengers to arrange travel to distant locations?
A. Electronic tickets C. Strategic alliances
B. Frequent-flyer programs D. First-class lounges |
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Definition
C
Strategic alliances. Many airlines have established partnerships with other airlines that allow them to market each other's services. These strategic alliances provide additional services and make it easier for passengers to arrange travel to all parts of the world. For example, a domestic airline might form an alliance with one or more international airlines. Then, passengers wishing to travel from their hometowns to a city in Europe or Asia simply call one airline that will arrange both the domestic travel as well as the international travel. Travelers receive the benefits offered by all the airlines in the alliance such as use of their airport lounges, participating in the frequent-flyer programs, and use of electronic ticketing when available. |
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Term
Cruise lines sailing to Bermuda or through the St. Lawrence River often depart from which U.S. port?
A. New York B. Miami C. New Orleans D. Tampa |
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Definition
A
New York. New York is one of the main ports in the U.S. Cruise lines sail from New York to all parts of the world. Because they are located on the eastern seaboard, Bermuda and the St. Lawrence River are popular destinations for cruise lines sailing out of the port of New York. Miami, New Orleans, and Tampa are popular ports for cruise lines sailing to the Caribbean and Mexico. |
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Term
What could a travel agent use to sell the features and benefits of a Caribbean cruise?
A. Vendor specifications C. Client testimonials
B. Personnel evaluations D. Management objectives |
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Definition
C
Client testimonials. A testimonial is a statement by an identified user of a product proclaiming the benefits received from the use of the product. Travel agents often solicit testimonials from satisfied clients to use to sell the features and benefits of cruises. Positive statements from previous clients is a good source of selling information because it comes from people who are not associated with the property. Travel agents do not use personnel evaluations, vendor specifications, or management objectives to sell the features and benefits of a Caribbean cruise. |
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Term
Nodding and smiling are ways of showing interest in travel agency customers known as
A. nonverbal statements. C. verbal statements.
B. appropriate questions. D. assumptive questions. |
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Definition
A
Nonverbal statements. Nonverbal statements of interest include such things as a nod, a smile, or simply leaning forward. Another way for travel agency employees to make customers aware of their concern is by making verbal statements of interest. Verbal statements of interest could include comments such as "great" or "how nice." These statements reassure customers that travel agency employees care. Nodding and smiling are not examples of appropriate or assumptive questions. |
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Term
To make reservations for a client's train travel in the United States, a travel agent must know how to
A. fill out an airline computer reservation system report.
B. book advance seats on the Express, Rapidos, or TGV.
C. distinguish between corridor and short distance trains.
D. reserve seats on "bullet trains" in both Class A and Class B. |
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Definition
A
Fill out an airline computer reservation system report. Train travel in the United States is booked much the same way as airline travel, using an airline CRS. If a travel agent were to book a client on Express, Rapidos, or TGV, s/he would be booking the client for rail travel in Europe. The Express operates in Spain, the Rapidos in Italy, and the TGV in France. Corridor trains are, by definition, short-distance trains. There is no distinction between them. "Bullet trains," or Shinkasen, operate in Japan, traveling at speeds of 156 miles per hour. |
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Term
An advantage to a cruise line of promoting a cruise to a travel agent by inviting the agent on a cruise is that the travel agent
A. enjoys a free vacation. C. obtains firsthand experience.
B. becomes obligated to the cruise line. D. must attend a training seminar. |
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Definition
C
Obtains firsthand experience. Providing a travel agent with firsthand experience is often the most effective way to promote a cruise. By taking the cruise, the travel agent has an opportunity to evaluate the facilities, service, and destinations. Cruise lines usually put extra effort into making sure the travel agent has a positive experience so the agent will recommend the cruise to clients. Inviting travel agents to experience a cruise is a popular promotional technique that often increases sales for the cruise line. A free vacation is a benefit to the travel agent rather than the cruise line. Taking a complimentary cruise does not obligate the travel agent to the cruise line. Travel agents are not required to attend a training seminar during a complimentary cruise. |
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Term
What do travel agents often suggest that clients purchase in order to protect the clients in the event that they are unable to go on the cruise for which they have paid?
A. Cancellation insurance C. Disability benefits
B. Personal injury compensation D. Trip interruption coverage |
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Definition
A
Cancellation insurance. Travel agents usually suggest that their clients purchase cancellation insurance when they make reservations and pay for a cruise. This type of insurance guarantees that the clients will receive a refund if they are unable to go on the cruise and need to cancel after the time limit set by the cruise line. Most cruise lines allow clients to cancel two months in advance without paying a penalty. However, if clients cancel closer to the departure date, they will forfeit a significant portion, or perhaps all, of their payment. Cancellation insurance will protect them from that loss. Personal injury compensation and disability benefits do not protect clients if they need to cancel a cruise. Trip interruption coverage protects clients if an unforeseen event requires them to leave during the cruise. |
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Term
Which of the following is an example of an endorsement/restriction that a travel agent might list when processing a client's airline ticket:
A. Unconfirmed B. Unaccompanied minor C. No baggage D. Nonrefundable |
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Definition
D
Nonrefundable. Airlines offer a variety of fares depending on time of travel, availability, etc. However, some of these fares have special endorsements or restrictions, which means that they are applicable only under certain conditions. For example, an unusually low fare on a flight from New York to Miami might be nonrefundable. If a travel agent books a client on that flight and the client cancels, the fare will not be refunded. When processing the ticket, the agent indicates the restrictions on the ticket and also informs the client. A code after a passenger's name indicates if the traveler is an unaccompanied minor. All airlines allow a certain amount of baggage. Travel agents confirm the reservation before processing the ticket. |
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Term
Why do tour operators often issue travel vouchers to clients who are participating in tour packages?
A. To guarantee hotel reservations C. To obtain discounts on souvenirs
B. To use as identification tags D. To pay for certain expenses |
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Definition
D
To pay for certain expenses. Vouchers are prepaid and can be issued to pay for nearly any travel expense. Tour operators often issue vouchers to clients who are participating in tour packages so the clients can use the vouchers to cover the cost of miscellaneous activities. For example, a tour operator might prepay for admission to a museum and issue vouchers so clients can gain admission to the museum as part of the package. Vouchers also may be issued to clients to cover the cost of certain meals or optional recreational activities. Tour operators do not issue travel vouchers to clients to use as identification tags, to obtain discounts on souvenirs, or to guarantee hotel reservations. |
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Term
Which of the following types of sightseeing tours involves leading clients through historic buildings:
A. Nature tours B. Personal tours C. City tours D. Walking tours |
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Definition
D
Walking tours. A characteristic of walking tours is that clients actually walk through the various facilities, such as historic buildings. The tour guide leads the way and explains the importance of the building and its unique features. The advantage of walking tours is that clients get a close-up view of the site and have an opportunity to ask questions. Personal tours and city tours are not necessarily walking tours. They often involve riding a bus or trolley to view all the sites in an area. Nature tours involve visiting natural areas such as forests. Many of these involve a combination of walking and riding. |
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Term
Why is it important for managers to develop standards to measure the productivity of specific business activities in the travel and tourism industry?
A. To decide what work needs to be done C. To gather information for planning
B. To maintain appropriate control D. To direct the operation of the business
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Definition
B
To maintain appropriate control. Control is the management function that involves comparing what was planned with the actual results. To be able to make comparisons, managers need to develop standards to measure the productivity of specific business activities. If activities do not meet the standards, managers can make changes to increase productivity. Organization is the management function that determines what work needs to be done and who is to do each job. Planning is the management function that includes gathering information, making decisions, and setting goals. Directing is the management function responsible for seeing that workers perform their tasks correctly and on time. |
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