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HOTEL FRONT OFFICE MANAGEMENT

F I F T H E D I T I O N

James A. Bardi, EdD, CHA

The Pennsylvania State University

John Wiley & Sons, Inc.

This book is printed on acid-free paper.

Copyright © 2011, 2007, 2003 by John Wiley & Sons, Inc. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States

Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400, fax 978-646-8600, or on the web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken,

NJ 07030, 201-748-6011, fax 201-748-6008, or online at www.wiley.com/go/permissions.

Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

For general information on our other products and services, or technical support, please contact our Customer Care Department within the United States at 800-762-2974, outside the United States at 317-572-3993 or fax 317-572-4002.

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Library of Congress Cataloging-in-Publication Data

Bardi, James A., 1947-

Hotel front office management /James A. Bardi.–5th ed. p. cm.

Includes bibliographical references and index. ISBN 978-0-470-63752-4 (acid-free paper)

1. Hotel management. I. Title. TX911.3.M27B35 2011 647.94’068–dc22

2010035007

Printed in the United States of America

10

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2

1

To Linda

Your love, patience, and encouragement made this book possible.

and

To Maria & Rob, Ryan & Jenni, and David

The joy of sharing this book with you makes it all worthwhile. And now, the special delight in sharing this book with my grandchildren,

Ben and Sophia, and all my future grandchildren will provide much joy for this grandfather.

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Contents

Preface

xi

Acknowledgments

xvii

C H A P T E R 1 Introduction to Hotel Management

1

Founders of the Hotel Industry

2

Historical Developments

5

Overview of the Hotel Industry

12

Types of Lodging Facilities

14

Market Orientation

17

Sales Indicators

17

Levels of Service

20

Business Affiliations

21

Trends That Foster Growth

27

Career Development

31

Solution to Opening Dilemma

35

Chapter Recap

35

End-of-Chapter Questions

36

Notes

38

Key Words

40

C H A P T E R 2 Hotel Organization and the Front Office Manager

41

Organization of Lodging Properties

42

Organization Charts

43

Typical Job Responsibilities of Department Managers

50

Organization of the Front Office Department

59

Function of the Front Office Manager

62

Staffing the Front Office

69

Solution to Opening Dilemma

72

Chapter Recap

73

End-of-Chapter Questions

73

Key Words

76

C H A P T E R 3 Effective Interdepartmental Communications

78

Role of the Front Office in Interdepartmental Communications

79

Front Office Interaction with Other Departments in the Hotel

79

vi C O N T E N T S

 

 

Analyzing the Lines of Communications

88

Solution to Opening Dilemma

94

Chapter Recap

94

End-of-Chapter Questions

94

Key Words

99

C H A P T E R 4

Property Management Systems

100

Physical Structure and Positioning of the Front Desk

102

Selecting a Property Management System

104

Procedure for Performing a Needs Analysis

105

Other PMS Selection Considerations

113

Financial Considerations

115

PMS Applications

116

Solution to Opening Dilemma

130

Chapter Recap

130

End-of-Chapter Questions

131

Notes

 

133

Key Words

133

C H A P T E R 5

Systemwide Reservations

135

Importance of a Reservation System

136

Overview of the Reservation System

137

Types of Reservation Systems

142

Sources of Reservations

143

Forecasting Reservations

148

Overbooking (Occupancy Management)

150

Revenue Management

153

Processing Guest Reservations

154

Process of Completing Reservations through a PMS

158

Solution to Opening Dilemma

167

Chapter Recap

168

End-of-Chapter Questions

168

Notes

 

171

Key Words

172

C H A P T E R 6

Revenue Management

173

Occupancy Percentage

174

History of Yield Management

177

Use of Yield Management

177

Components of Revenue Management

181

Applications of Revenue Management

188

Solution to Opening Dilemma

189

Chapter Recap

189

End-of-Chapter Questions

189

C O N T E N T S

vii

Notes

192

Key Words

193

C H A P T E R 7

Guest Registration

194

Importance of the First Guest Contact

195

Components of the Registration Process

196

Registration with a PMS

216

Solution to Opening Dilemma

228

Chapter Recap

228

End-of-Chapter Questions

228

Notes

 

230

Key Words

230

C H A P T E R 8

Managing the Financials

232

Common Bookkeeping Practices

233

Forms Used to Process Guest Charges and Payments

234

Account Ledgers

235

Posting Guest Charges and Payments

237

Transferring Guest and City Ledgers to Accounts Receivable

241

Importance of Standard Operating Procedures for Posting and the Night Audit

243

Solution to Opening Dilemma

243

Chapter Recap

243

End-of-Chapter Questions

244

Key Words

246

C H A P T E R 9

Guest Checkout

247

Organizing Late Charges to Ensure Accuracy

248

Guest Checkout Procedure

249

Determining Method of Payment and Collection

252

Assisting the Guest with Method of Payment

256

Obtaining Future Reservations

258

Filing Documents

259

Relaying Guest Departures to Other Departments

259

Removing Guest Information from the System

260

Transfer of Guest Accounts to the Back Office

260

Checkout Reports Available with a Property Management System

260

Guest Histories

262

Last Impressions of the Hotel

265

Solution to Opening Dilemma

266

Chapter Recap

266

End-of-Chapter Questions

267

Notes

 

269

Key Words

269

viii C O N T E N T S

C H A P T E R 1 0

Preparation and Review of the Night Audit

270

Importance of the Night Audit

270

The Night Auditor

271

The Night Audit Process

272

Goal of Preparing the Night Audit Report

278

Preparing the Night Audit Report

278

Reading the Flash Report

293

Reading the Night Audit

293

Solution to Opening Dilemma

296

Chapter Recap

296

End-of-Chapter Questions

297

Key Words

316

C H A P T E R 1 1

Managing Hospitality

317

Importance of Hospitality

318

Managing the Delivery of Hospitality

320

Total Quality Management Applications

327

Developing a Service Management Program

328

Customer Relationship Management

338

Solution to Opening Dilemma

339

Chapter Recap

339

End-of-Chapter Questions

340

Notes

 

342

Key Words

343

C H A P T E R 1 2

Training for Hospitality

344

Determining Employee Hospitality Qualities

345

Screening for Hospitality Qualities

346

Developing an Orientation Program

347

Policy and Procedure Manual

351

Administering the Orientation Program

352

Developing a Training Program

354

Steps in the Training Process

356

Administering a Training Program

361

Cross-training

362

Developing a Trainer

362

Training for Empowerment

364

Americans with Disabilities Act

365

Solution to Opening Dilemma

367

Chapter Recap

367

End-of-Chapter Questions

368

Notes

 

370

Key Words

371

C O N T E N T S

ix

C H A P T E R 1 3

Promoting In-House Sales

372

The Role of the Front Office in Marketing and Sales

373

Planning a Point-of-sale Front Office

375

Theories of Motivation

380

Applying Motivation Theories

381

Training Programs for a Point-of-sale Front Office

382

Budgeting for a Point-of-sale Front Office

384

Feedback

 

384

Planning a Point-of-sale Front Office—An Example

386

Solution to Opening Dilemma

388

Chapter Recap

388

End-of-Chapter Questions

389

Notes

 

391

Key Words

391

C H A P T E R 1 4

Security

392

Importance of a Security Department

393

Organization of a Security Department

395

Job Analysis of the Director of Security

395

In-House Security Departments versus Contracted Security

398

Room Key Security

401

Fire Safety

404

Emergency Communication

411

Employee Safety Programs

415

Safety Training Programs

418

Solution to Opening Dilemma

418

Chapter Recap

418

End-of-Chapter Questions

419

Notes

 

421

Key Words

422

C H A P T E R 1 5

Executive Housekeeping

423

Importance of the Housekeeping Department

423

Role of Chief Engineer in a Lodging Property

446

The Greening of the Lodging Industry

450

Solution to Opening Dilemma

453

Chapter Recap

454

End-of-Chapter Questions

455

Notes

 

457

Key Words

459

 

Glossary

460

 

Index

475

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