Question

Which department is considered a revenue earning department in a hotel?

• A. Human Resource
• B. Security
• C. Food and Beverage
• D. Accounting
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Hint:

In most full-service hotels, the Rooms department (Front Office/Housekeeping) is the largest revenue source, followed closely by Food & Beverage.

Answer 1

The Correct Option is C

Step 1: Classifying Hotel Departments (Revenue vs. Support):
Hotel departments are categorized into two primary structural divisions:
• Revenue-Earning (or Operating) Departments: Departments that sell products or services directly to guests, generating revenue. Examples include Rooms (Front Office) and Food & Beverage (F&B).
• Non-Revenue Earning (or Support/Cost) Centers: Departments that provide essential support to operating departments but do not generate direct sales. Examples include Human Resources, Security, Accounting, and Engineering.

Step 2: Evaluating the Options:

• Human Resource (Option A), Security (Option B), and Accounting (Option D) are support departments.
• Food and Beverage (Option C): Generates direct revenue through restaurants, bars, banquets, room service, and catering operations, making it a key revenue-earning department.