Chapter 5 Lodging Operations Introduction to Hospitality Fourth

Chapter 5 Lodging Operations Introduction to Hospitality, Fourth Edition John Walker © 2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

After Reading and Studying This Chapter, You Should Be Able to: • Outline the duties and responsibilities of key executives and department heads • Draw an organizational chart of the rooms division of a hotel and identify the executive committee members • Describe the main functions of the rooms division department Introduction to Hospitality, Fourth Edition John Walker © 2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

After Reading and Studying This Chapter, You Should Be Able to: • Describe property management systems and discuss yield management • Calculate occupancy percentages, average daily rates and actual percentage of potential rooms revenue • Outline the importance of the reservations and guest services functions • List the complexities and challenges of the concierge, housekeeping and security/loss prevention departments Introduction to Hospitality, Fourth Edition John Walker © 2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Functions of a Hotel • • • Lodging accommodations Revenue centers Cost centers Serve and enrich society Profit for the owners Exceed Guest Expectations Introduction to Hospitality, Fourth Edition John Walker © 2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Role of a General Manager • Chief Operating Officer (COO) • Ensuring highest level of associate and guest service • Overseeing and coordinating operations • Increasing profitability John Handlery. General Manager Introduction to Hospitality, Fourth Edition John Walker © 2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Qualities of Successful Hospitality Leaders • • • Leadership Attention to detail Follow-through People skills. J. W. "Bill” Marriott Patience Ability to delegate effectively Introduction to Hospitality, Fourth Edition John Walker © 2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Executive Committee • • General Manager Director of Human Resources Director of Food and Beverage Director of Rooms Division Director of Marketing and Sales Director of Engineering Director of Accounting Introduction to Hospitality, Fourth Edition John Walker © 2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Executive Committee Chart Introduction to Hospitality, Fourth Edition John Walker © 2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Rooms Division • • Front office Reservations Housekeeping Concierge Guest services Security Communications Introduction to Hospitality, Fourth Edition John Walker © 2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Rooms Division Organizational Chart Introduction to Hospitality, Fourth Edition John Walker © 2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Front Office Manager (FOM) • Enhance guest services • Ensure the desired percentage of each market segment is achieved • Make and exceed budget forecasts Introduction to Hospitality, Fourth Edition John Walker © 2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Basic Functions of the Front Office • • Review previous night’s occupancy/ADR Review arrivals/departures/VIP rooms Staffing adjustments/scheduling Look over Market Mix Meet with lead GSA’s Sell rooms Maintain balanced guest accounts Offer services such as faxes, mail, messages, etc. Introduction to Hospitality, Fourth Edition John Walker © 2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

The Guest Cycle Introduction to Hospitality, Fourth Edition John Walker © 2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Duties of a Guest Service Agent • Guest Service Agent – 7: 00 am - 3: 00 pm shift • • Check-outs Guest inquiries Room changes Work with housekeeping – 3: 00 pm - 11: 00 pm shift • Check-ins • Reservations Introduction to Hospitality, Fourth Edition John Walker © 2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Night Auditor • Posts charges • Closes the books on a daily basis • Balances guest accounts • Completes daily report Introduction to Hospitality, Fourth Edition John Walker © 2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Night Audit Process in Simple Terms • Add yesterday’s closing balance of accounts owed by guests • Less payments received today against accounts • Plus all charges made today to guests’ account • Equals day’s closing balance of accounts owed by guest Introduction to Hospitality, Fourth Edition John Walker © 2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Different Room Rates • • Rack rate Corporate Government Entertainment cards AAA Group rates AARP

Hotel Occupancy Statistics • Occupancy Statistics – Percentage of occupancy = Rooms Occupied Total Rooms Available Introduction to Hospitality, Fourth Edition John Walker © 2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Hotel Occupancy Statistics • Occupancy Statistics (cont. ) – Double/Multiple Occupancy Percentage = Total # of Guests - # of Rooms Occupied # of Double Occupied Rooms Introduction to Hospitality, Fourth Edition John Walker © 2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Hotel Revenue Statistics • Revenue Statistics – Average Daily Room Rate (ADR) = Total Rooms Revenue Total Number of Rooms Sold Introduction to Hospitality, Fourth Edition John Walker © 2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Property Management Systems (PMS) • PMS – Computer-based applications • • Reservations management Rooms management Guest account management General management Introduction to Hospitality, Fourth Edition John Walker © 2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Yield Management • Increases room revenue by using demandforecasting technique • Based on the economics of supply and demand • Pricing is based on – Trends of demand – Type of room to be occupied • Rev Par = Dividing room revenue by number of rooms available Introduction to Hospitality, Fourth Edition John Walker © 2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Reservations • • • Internet First area of guest contact A sales position Telephone skills Central Reservations System (CRS) Introduction to Hospitality, Fourth Edition John Walker © 2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Reservation Definitions • • • Confirmed reservation Guaranteed reservation Advance deposit/advance payment No show 6 pm release Introduction to Hospitality, Fourth Edition John Walker © 2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Typical Reservation Screen Introduction to Hospitality, Fourth Edition John Walker © 2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Communications or PBX/CBX • Public/Central Branch Exchange • Profit center • Includes many types of communication – – Faxes Messages Pagers and radios Emergency center Introduction to Hospitality, Fourth Edition John Walker © 2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Guest Services Uniformed Service • Uniformed Service – Bell Captain or Guest Services Manager – Door attendants • Hotel’s unofficial greeters – Bell persons • Escort guests to their rooms • Transport luggage Introduction to Hospitality, Fourth Edition John Walker © 2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Concierge • Part of guest/uniformed services • Elevate properties marketable value • Typically in a luxury hotel • Unique requests • Knowledge of city • Several languages preferred

Housekeeping • Largest department in terms of people • Executive Housekeeper • Cleanliness is the key to success

Duties of the Executive Housekeeper • Leadership of people, equipment and supplies • Cleanliness and servicing the guest rooms and public areas • Operating the department according to financial guidelines • Keeping records Introduction to Hospitality, Fourth Edition John Walker © 2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Housekeeping Personnel Introduction to Hospitality, Fourth Edition John Walker © 2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Breaking the House Down • • • Assignment of sections for cleaning SC - Checks out that day SS – Stay-over XX - Out of order Based on standard of rooms cleaned per day by each housekeeper Introduction to Hospitality, Fourth Edition John Walker © 2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Other Duties of Housekeeping • Turndown service • Hotel laundry • Laundry and dry cleaning for guests • General hotel cleaning • Linen room

In-House Laundry • Advantages – 24 hour anytime laundry service for guests – Smaller par-stock of linen – Full control over quality of laundered linen

Contract Laundry Service • Advantages – No maintenance costs for equipment – No labor costs for training/staffing – Lower overhead costs of energy/water – Fixed projected expense Introduction to Hospitality, Fourth Edition John Walker © 2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Security and Loss Prevention • Providing guest safety and loss prevention • Security officers • Equipment • Keys • Safety procedures • Identification procedures • ADA compliance

Food and Beverage Division • • • Kitchen Catering Banquet Restaurants Room Service Mini-bars Lounges Bars Stewarding

Stewarding Department • Responsibilities of Chief Steward: – Cleanliness of back of house. – Cleanliness of glassware, china, and cutlery. – Inventory of chemical stock. – Sanitation. – Maintenance of dishwashing machines. – Pest control. – Forecasting labor and cleaning supply needs.

Catering Department • Catering: – Includes a variety of occasions when people may eat at varying times. • Banquets: – Refers to groups of people who eat together at one time and in one place. • Terms are used interchangeably.

Trends • • Diversity of workforce Increase in use of technology Continued quest for increases in productivity Increasing use of yield management to increase profit by effective pricing of room inventory • Greening of hotels and guest rooms Introduction to Hospitality, Fourth Edition John Walker © 2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Trends • • Security Diversity of the guest Compliance of the ADA Hotel companies are trying to persuade guests to book rooms via the company website instead of an internet broker Introduction to Hospitality, Fourth Edition John Walker © 2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458