Rooms Division Operations

that are vacant but not yet clean. Keeping one guest waiting for another guest to check out and for the room to be cleaned places undue hardship on the waiting guest. A wait status should never exceed one hour in duration or guest satisfaction could plummet.

4.The next step is to determine whether the guest is a member of the hotel’s guest loyalty program and/or whether the guest is participating in other promotional tie-ins (e.g., airline frequent flier miles, car rental points, and credit card promotions).

5.Before a key is released to a guest, the method of payment is determined (see next section). Assuming that the method of payment is determined, the employee should give the room key to the guest. Some hotels have preprinted keys with the room number. The room number should never be spoken aloud for security reasons.

6.If required, this is the point in the check-in process where a front is requested from the bell stand.

Summary of Registration Procedures

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5. Room Status

It is important for every hotel to have an accurate knowledge of the state of every room in the hotel. The commonly used room status are the following:

• Vacant Clean (V/C) / Vacant Ready (V/R )

These are rooms that have been cleaned and are ready for sale. These rooms can be assigned to guests.

• Vacant Clean, Inspected (VCI)

These are rooms that have been cleaned and inspected by Floor Supervisor. They can also be assigned to guests.

• Vacant Dirty (V/D)/Check-Out (CO)/On Change

The guest departed but the room is not cleaned, so it can’t be assigned to guests.

• Out-of-Order (OOO)

A room may be placed on OOO status for maintenance, refurbishing, extensive cleaning. It can’t be assigned to guests.

• Occupied (OCC)/Stay Over (S/O)

These are rooms which are currently occupied.

• Due Out (DO)

These are rooms that expected to be vacant on that day.

• Late Check-Out (LAT)

The guests will be checking out after the standard check-out time.

• Locked Out

The room is locked by the hotel for possible reasons such as by guest request, guests did not settle account or under the hotel’s investigation.

• Out of Service (OS)

The room is undergoing maintenance work.

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6. Room Rates

The room rates refer to the price at which the hotel sells its rooms. Hotels different types of room rates to cater to the needs of their diverse sources of business. The commonly used range of rates is the following:

Rack rate is a price a hotel charges for a room before any discount has been taken into account.

Travel agent discount is a room rate discount offered to travel agents for their personal use.

Commercial rate is a reduced room rate given to selected business persons to promote occupancy.

Speciality rate is a discount rate offered to airlines, employees, or other pre-approved groups.

Day rate is a reduced charge for occupancy of a room for less time than overnight. It is used when the guest arrives and departs the same day.

Family plan is a special room rate that allows children to occupy their parent’s room at no additional charge.

Government rate is a discount room rate offered to government employees which tries to match the per diem offered to government employees.

Group rate is a discount room rate offered to someone reserving a block of rooms at the same time, usually requiring a minimum number of room reservations.

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Promotional rate is a discount offered at a hotel to boost room occupancy in times of low demand, such as weekends; sometimes offered to honeymooners or for other special promotions.

Senior rate is a discount room rate offered to guests over a certain age, usually 55 to 65.

Room Rates

Hotel room rates are similar in many ways to airline fares. They are both quantifiable and qualifiable. Given that on any given flight, there may be 20 or more different prices being paid for the same service, hotel rooms will vary in cost for the same basic product. They are quantifiable in that they can be measured and structured to meet certain criteria. They are qualifiable in that large amounts of discretion are allowed in which rates are implemented and when.

The average daily rate (ADR) is an average of all the rates sold at a hotel on a given night. It obviously isn’t the highest, nor is it the lowest booked rate. It is an accepted term that is primarily used to determine a starting point in understanding a hotel’s rate structure. The combination of all the rates offered at a hotel is called the rate structure.

The Hubbart Formula

Mr Hubbart came up with a method to calculate a hotel room rate based on the costs incurred in operating the hotel and a reasonable return on investment for the investors. Going beyond simple room cost, the Hubbart formula allowed the hotel to illustrate to a banker what the return on investment would be.

The Hubbart formula incorporates three different sections, or schedules, into its calculations: Schedule I looks at specific financial calculations; Schedule II looks at the rates per occupied room; Schedule III incorporates square footage into the analysis.

Schedule I attempts to determine the costs incurred with the hotel operation and incorporate a reasonable return on investment (or ROI). Operating expenses, taxes/insurance, and depreciation are understood to include all the same criteria used to determine room

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cost. What the Hubbart formula does differently from strict room cost analysis is to incorporate a fair market ROI for the investor. This ROI level can vary widely, but it is understood to be a fair market value based on equity and interest expense on debt.

Schedule II of the Hubbart formula uses the figure reached at the end of Schedule I to determine the average daily rate the hotel would need to charge to meet its obligations – those obligations being operating costs and owner ROI. Schedule II is similar to the opportunity cost calculation in that it considers the total number of room nights available for sale in a year (365 days times the number of rooms available per night). It goes further in that it takes into consideration an estimated occupancy percentage. Determining this occupancy percentage is where the Hubbart formula gains detractors. What would be a fair occupancy percentage? Some hotel markets consistently run very high occupancy levels. Other areas are susceptible to market fluctuations. Hotel room supply in an area can vary, as does the demand. Occupancy expectations must be based on detailed analysis of competition, market supply, local economic factors, and population, among others. A very general rule of thumb is to insert an expected occupancy figure of 70 percent. The 70 percent figure is used by many as a benchmark of performance, prior to reviewing market factors.

Schedule III yields a required average rate of $46.07, based on an occupancy of 70 percent. Again, the variables in determining occupancy can sway this number. When comparing the Hubbart formula to room cost calculation, the results are close but not the same. With the same data, the Hubbart calculations would yield a higher room rate than the room cost analysis. There are two main reasons for this.

1.Room cost analysis does not include the ROI provision that Hubbart does. In strictly looking at the costs incurred in room sales, profit would not come into play.

2.Room cost includes opportunity cost. The cost of maintaining each room for every night is included in determining room cost. The Hubbart formula assumes an average occupancy.

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While useful in determining an average rate for a generic hotel, Schedules I and II of the Hubbart formula do not take into account the variables in the modern hotel structure. Few hotels today build all their rooms to the exact same specifications. Variances in room type, size, and configuration could command higher rates than a standard room. With Schedule III, the Hubbart formula attempts to address the issue of these varying rooms by making an assumption that larger rooms are more expensive to maintain. With that assumption, the Hubbart formula incorporates a square footage provision. This provision requires a measurement of the total square guest room area. This measurement is simply a sum of the square footage available in each guest room. Using the same hotel from the example, assume that it has a total square guest room area of 70,000 square feet.

In Schedule III, an average square foot calculation of $0.12 was determined to be needed to meet the costs and reasonable ROI determination. The flexibility of this calculation allows the hotel manager to apply different rates to differing room types and configurations. Again, assuming that the better rooms are the larger rooms, a higher average rate could be applied to the better room types.

For example:

a standard guest room may have an area of 375 square feet. A junior suite may have an area of 450 square feet. The average daily rate of the standard room would be $45 ($0.12 × 375). The suite would command a higher rate because of its bigger area $54 ($0.12 × 450).

7. Taking Payments

Payments can be made in a variety of different ways.

1.Cash is accepted everywhere. Great care must be taken when handling cash, counting money and giving change.

2.Cheque is frequently used method of payment, and is accepted in most establishments.

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• REMEMBER

Make sure that the cheque is filled out correctly (check if the date is correct, if the amount in words and figures agree, if the signature matches that on the valid cheque card, if the cheque was signed in front of you ). Write the cheque card number on the back of the cheque. You should do this – not the client.

3. Credit card is a card issued by a company that offers credit to its customers. It means that the customer can delay paying for a particular item or service. There is a wide range of credit cards available, the widely-used are Visa, Mastercard, American Express, Access, Barclaycard.

• REMEMBER

Make sure if the card is accepted by the establishment, when the card expires, if the card in the same name as the client, if the amount is above the “floor” limit, is the card is on the list of lost or stolen cards, is the information from the card has been imprinted clearly, if the customer’s signature matches the one on the card.

4. Other methods of payments are TC, foreign currency, token systems (in hotels and hotel restaurants), vouchers.

8. Black List

Black list is a record of people whom the hotel does not wish to accept as guests. There are 2 essential requirements to such list:

1.It should be easy to consult.

2.It should NOT be accessible to guests.

Number of ways to be put into a black list.

1.The person stayed in your hotel or other hotels and then skipped (run off without paying the bill).

2.The person showed himself to be obnoxious ( violently drunk, abusive or quarrelsome disturbing other guests or damaging the fittings).

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3.You may suspect him of having stolen something. You may not be able to prove anything, but you do have an obligation to protect other customers.

4.Finally, the person may be employed by a firm whose solvency is in some doubt. Some companies are notoriously slow in paying their bills, and you simply decide that it isn’t worth the hassle and aggravation of trying to collect the money.

9.Front Office Link to Housekeeping

Front Office link to Housekeeping Department is crucial. Though these departments may be at opposite ends of the hotel, they share a mission: creating a return guest. These departments work together in order to fulfill their goals.

Daily Communication

6:00 a.m. Front Office to Housekeeping

•Daily report of each room’s status

•Rooming lists and times for arriving groups

•Special requests, VIP rooms

•Late check-outs

•Early check-ins

8:00 a.m. Front Office to Housekeeping

•Update of special requests and VIPs

•Assignments of show rooms for the day

10:00 a.m. Housekeeping to Front Office

•Results of vacant room check

•Rooms that will not be cleaned today

•Rooms on maintenance and other reasons

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Throughout the day Front Office to Housekeeping

•Late departures

•Extended stays

•Room changes

•Check-outs which have departed

Housekeeping to Front Office

•Continual reporting of vacant and ready rooms

•Readiness of special requests

•Status update of rooms found discrepant

Check-out time Housekeeping to Front Office

• Status of expected check-outs

During check-in Front Office to Housekeeping

•Update on special requests

•Rooms needed as soon as possible

End of the day Housekeeping to Front Office

• Complete update of hotel status

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Chapter III

Learning objectives

______________________________________________________

1.Explain the role and functions of Housekeeping Department within a hotel.

2.Review the procedures of cleaning and preparing rooms for guests.

3.Understand why current housekeeping reports are very important for smooth work of the whole hotel.

4.Describe the excellent turndown service.

5.Outline how housekeeping supplies and inventory are managed .

6.Discuss the link of Housekeeping Department with Maintenance Department.

Terms to lean

______________________________________________________

Section, turndown service, inventory, recycled inventories, non-recycled inventories, guest loan items, par, lead time, maid service, maintenance work order, preventive maintenance, scheduled maintenance, room block

1.Housekeeping Department

•The most vital department in a hotel

•The most numerous department in a hotel, usually 50% but it’s possible up to 75% of hotel staff are Housekeeping Department employees

•Highest impact on guests

•Lowest wages paid

•Least respect received

The Housekeeping has 6 broad areas of responsibility:

•The cleaning of guest rooms

•The cleaning of public areas

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