What impact does higher than forecasted occupancy have on department costs?

Higher than forecasted occupancy typically leads to increased linen usage, which is why the choice indicating this impact is the correct answer. When occupancy rates rise, more guests are staying in the hotel, resulting in greater demand for cleaning and changing linens such as bed sheets, pillowcases, and towels. This increased usage directly affects costs related to laundry services, which include water, detergent, and labor for washing and folding linens.

As hotels attempt to maintain high cleanliness standards and guest satisfaction, the higher occupancy necessitates a corresponding increase in linen turnover to ensure that all guests have fresh and clean bedding and towels. This can also lead to potential increases in inventory if the hotel must acquire additional linens to meet the demand.

In contrast, the idea that higher occupancy decreases overall operating costs does not hold true because the increased number of guests usually translates to higher costs in several areas, particularly those associated with cleaning and maintaining guest rooms. While some aspects of operating costs may be optimized with higher occupancy, the increased demand for services typically drives costs up rather than down.