- •Contents
- •Preface
- •Acknowledgments
- •Founders of the Hotel Industry
- •E. M. Statler
- •Conrad Hilton
- •Cesar Ritz
- •William Waldorf Astor and John Jacob Astor IV
- •Kemmons Wilson
- •Ernest Henderson and Robert Moore
- •Ray Schultz
- •Historical Developments
- •Atrium Concept
- •Select-Service Hotels
- •Technological Advances
- •Marketing Emphasis
- •Total Quality Management
- •Major Reorganization, 1987–1988
- •Hotel Investment
- •September 11, 2001
- •Economic Downturn of the Late 2000s
- •Overview of the Hotel Industry
- •Types of Lodging Facilities
- •Hotels
- •Motels
- •All-suites
- •Select-service Hotels
- •Extended-stay Hotels
- •Market Orientation
- •Sales Indicators
- •Occupancy
- •Average Daily Rate (Average Room Rate)
- •Yield Percentage
- •RevPAR (Revenue per Available Room)
- •Levels of Service
- •Business Affiliations
- •Chain Affiliation
- •Referral Property
- •Company-owned Property
- •Management Contract Property
- •Brands
- •Independent Properties
- •Trends That Foster Growth
- •Leisure Time
- •The Me/Pleasure Concept
- •Discretionary Income
- •Family Size/Household Size
- •Business Travel
- •Female Business Travel
- •Travel as Experience
- •Career Development
- •Educational Preparation
- •Work Experience
- •Professional Memberships
- •Ports of Entry
- •Researching Growth Areas in the Hospitality Industry
- •Solution to Opening Dilemma
- •Chapter Recap
- •End-of-Chapter Questions
- •Notes
- •Key Words
- •Organization of Lodging Properties
- •Organization Charts
- •Typical Job Responsibilities of Department Managers
- •General Manager
- •Assistant General Manager
- •Food and Beverage Director
- •Physical Plant Engineer
- •Executive Housekeeper
- •Human Resources Manager
- •Marketing and Sales Director
- •Front Office Manager
- •Controller
- •Director of Security
- •Parking Garage Manager
- •Organization of the Front Office Department
- •Typical Front Office Organization
- •Select-service Hotel Front Office Organization
- •Function of the Front Office Manager
- •Job Analysis and Job Description
- •The Art of Supervising
- •Staffing the Front Office
- •Solution to Opening Dilemma
- •Chapter Recap
- •End-of-Chapter Questions
- •Key Words
- •Role of the Front Office in Interdepartmental Communications
- •Front Office Interaction with Other Departments in the Hotel
- •Marketing and Sales Department
- •Housekeeping Department
- •Food and Beverage Department
- •Banquet Department
- •Controller
- •Maintenance or Engineering Department
- •Security Department
- •Human Resources Management Department
- •Analyzing the Lines of Communications
- •Situation 1: Marketing and Sales Knows It All—But Didn’t Tell Us
- •Situation 2: Peace and Harmony in 507
- •Situation 3: I Know What You Said, and I Think I Know What You Mean
- •The Role of Total Quality Management in Effective Communication
- •An Example of Total Quality Management in a Hotel
- •Solution to Opening Dilemma
- •Chapter Recap
- •End-of-Chapter Questions
- •Key Words
- •Physical Structure and Positioning of the Front Desk
- •Guest First Impression
- •Creating a Balance Between Guest Flow and Employee Work
- •Selecting a Property Management System
- •Importance of a Needs Analysis
- •Procedure for Performing a Needs Analysis
- •Selecting a Team
- •Analyzing the Flow of Guests through the Hotel
- •Communicating Information
- •Reviewing Administrative Paperwork
- •Management Review of Information
- •Evaluate Needs That Have Been Identified
- •Assessing Needs Based on Findings
- •Choosing Software
- •Choosing Hardware
- •Other PMS Selection Considerations
- •Vendor Claims
- •Hardware Installation Plans
- •Computer Training Programs
- •Backup Power Sources
- •Maintenance Agreement
- •Financial Considerations
- •PMS Applications
- •Reservations
- •Revenue Management
- •Registration
- •Room Status
- •Posting
- •Call Accounting
- •Checkout
- •Night Audit
- •Inquiries/Reports
- •Back Office
- •Housekeeping
- •Food and Beverage
- •Maintenance
- •Security
- •Marketing and Sales
- •Personnel
- •Electronic Mail
- •Time Clock
- •Solution to Opening Dilemma
- •Chapter Recap
- •End-of-Chapter Questions
- •Notes
- •Key Words
- •Importance of a Reservation System
- •Overview of the Reservation System
- •Choice Hotels International
- •Hilton Hotels
- •Marriott International
- •Global Distribution Systems (GDS) in Securing Reservations
- •Role of the Internet in Securing Reservations
- •Background on Room Rates Offered via the Internet
- •Effect of Internet on Pricing Rooms
- •Consumers Response to Use of the Internet—Third-Party Websites
- •Social Media
- •Financial Effects of Third-Party Reservations
- •Types of Reservation Systems
- •Franchisee
- •Referral Member
- •Sources of Reservations
- •Corporate Clients
- •Social/Military/Educational/Religious/Fraternal (SMERF)
- •Meetings/Incentive/Conference/Event (MICE)
- •Group Travelers
- •Leisure Travelers
- •Current Guests
- •Forecasting Reservations
- •Overbooking (Occupancy Management)
- •Revenue Management
- •Processing Guest Reservations
- •Systemwide Reservation Systems
- •Outsourcing Reservations
- •Types of Reservations
- •Reservation Codes
- •Cancellation Codes
- •Blocking Procedure
- •Process of Completing Reservations through a PMS
- •Database Interfaces
- •True Integration
- •Solution to Opening Dilemma
- •Chapter Recap
- •End-of-Chapter Questions
- •Notes
- •Key Words
- •Occupancy Percentage
- •Average Daily Rate
- •RevPAR
- •History of Yield Management
- •Use of Yield Management
- •Revenue Manager
- •Components of Revenue Management
- •Definition of Yield
- •Optimal Occupancy and Optimal Rate
- •Strategies
- •Forecasting
- •Star Report
- •Block-out Periods
- •Systems and Procedures
- •Channel Management
- •Feedback
- •Management Challenges in Using Revenue Management
- •Considerations for Food and Beverage Sales
- •Applications of Revenue Management
- •Scenario 1
- •Scenario 2
- •Scenario 3
- •Solution to Opening Dilemma
- •Chapter Recap
- •End-of-Chapter Questions
- •Notes
- •Key Words
- •Importance of the First Guest Contact
- •Components of the Registration Process
- •Capturing Guest Data
- •Guest Registration Procedure
- •Guest Hospitality
- •Inquiry about Reservation
- •Completion of Registration Card
- •Review Completeness of Registration Card
- •Extension of Guest Credit
- •Room Selection
- •Room Assignment from Inventory
- •Assigning Room Rates
- •Discuss Sales Opportunities
- •Assigning Room Keys
- •Security of the Key System
- •Maintaining the Key System
- •Registration with a PMS
- •Retrieving Reservation Form
- •Checking Room Inventory Option
- •Checking Room Status Option
- •Verifying Room Rate
- •Issuing Room Key
- •Obtaining Reports from the PMS
- •Self-Check-In
- •Solution to Opening Dilemma
- •Chapter Recap
- •End-of-Chapter Questions
- •Notes
- •Key Words
- •Common Bookkeeping Practices
- •Debits and Credits
- •Forms Used to Process Guest Charges and Payments
- •Folio, Transfers, and Paid-out Slips
- •Account Ledgers
- •Guest Ledger and City Ledger
- •Posting Guest Charges and Payments
- •Point-of-sale
- •Room and Tax
- •Transfers and Adjustments
- •Paid-Out
- •Miscellaneous Charges
- •Phone
- •Display Folio
- •Reports
- •Transferring Guest and City Ledgers to Accounts Receivable
- •Solution to Opening Dilemma
- •Chapter Recap
- •End-of-Chapter Questions
- •Key Words
- •Organizing Late Charges to Ensure Accuracy
- •Guest Checkout Procedure
- •Inquiring about Quality of Products and Services
- •Retrieving the Room Key
- •Retrieving and Reviewing the Folio
- •In-room Guest Checkout
- •Determining Method of Payment and Collection
- •Credit Cards
- •Bill-to-account (Direct Billing)
- •Cash and Personal Checks
- •Traveler’s Checks
- •Debit Cards
- •Assisting the Guest with Method of Payment
- •Money Wire
- •Travelers Aid Society
- •Auto Clubs
- •International Currency Exchange
- •Obtaining Future Reservations
- •Filing Documents
- •Relaying Guest Departures to Other Departments
- •Removing Guest Information from the System
- •Transfer of Guest Accounts to the Back Office
- •Checkout Reports Available with a Property Management System
- •Guest Histories
- •ZIP Code or Postal Code
- •Developing Conventions and Conferences
- •FAM Tours
- •Origination of Reservation
- •Frequency of Guest Visit
- •Types of Room Requested
- •Room Rates versus Occupancy Patterns
- •Tracking Social Media
- •Last Impressions of the Hotel
- •Solution to Opening Dilemma
- •Chapter Recap
- •End-of-Chapter Questions
- •Notes
- •Key Words
- •Importance of the Night Audit
- •The Night Auditor
- •The Night Audit Process
- •Posting Room and Tax Charges
- •Assembling Guest Charges and Payments
- •Reconciling Departmental Financial Activities
- •Reconciling Accounts Receivable
- •Running the Trial Balance
- •Goal of Preparing the Night Audit Report
- •Preparing the Night Audit Report
- •Departmental Totals
- •Bank Deposit
- •Accounts Receivable
- •Cashier’s Report
- •Manager’s Report
- •Formulas for Balancing the Night Audit Report
- •Room and Tax
- •Total Restaurant Sales and Sales Tax
- •Tips for Restaurant, Room Service, Banquet, and Lounge Employees
- •Room Service
- •Banquet Sales
- •Banquet Bar and Total Lounge Sales
- •Room Rental
- •Valet
- •Telephone Charges
- •Gift Shop Sales and Tax
- •Vending
- •Parking
- •Total Revenue and Total Write-Offs
- •Cash Sales and Accounts Receivable Balance
- •Credit Cards and Cash Applied to Accounts Receivable
- •Analysis of Accounts Receivable
- •Bank Deposit and Amount Transferred to Accounts Receivable
- •Cashier’s Report
- •Operating Statistics
- •Daily Flash Report
- •Reading the Flash Report
- •Reading the Night Audit
- •Solution to Opening Dilemma
- •Chapter Recap
- •End-of-Chapter Questions
- •Key Words
- •Importance of Hospitality
- •Managing the Delivery of Hospitality
- •Management’s Role
- •The Service Strategy Statement
- •Financial Commitment
- •Total Quality Management Applications
- •Developing a Service Management Program
- •Guest Cycle
- •Moments of Truth in Hotel Service Management
- •Employee Buy-in Concept
- •Screening Employees Who Deliver Hospitality
- •Empowerment
- •Training for Hospitality Management
- •Evaluating the Service Management Program
- •Follow-through
- •Interfacing with Other Departments in Delivering Hospitality
- •Customer Relationship Management
- •Solution to Opening Dilemma
- •Chapter Recap
- •End-of-Chapter Questions
- •Notes
- •Key Words
- •Determining Employee Hospitality Qualities
- •Job Analysis and Job Descriptions
- •Positive Hospitality Character Traits
- •Practicing Promotional Skills
- •Screening for Hospitality Qualities
- •An Outgoing Personality
- •Patience
- •Ability to Accept Constructive Criticism
- •Interest in Selling
- •Developing an Orientation Program
- •Economic Position of the Property in the Community
- •Overview of the Lodging Establishment
- •Employee Handbook
- •Policy and Procedure Manual
- •Introduction to the Front Office Staff
- •Equipment Overview
- •Interdepartmental Cooperation
- •Administering the Orientation Program
- •Selection of Orientation Leader
- •Developing a Training Program
- •Identification of Tasks and Job Management Skills
- •Preparing Step-by-Step Procedures
- •Management Concepts
- •Steps in the Training Process
- •Preparation: Get Ready
- •Delivery: Show Me
- •Administering a Training Program
- •Cross-training
- •Developing a Trainer
- •Job Knowledge
- •Training for Empowerment
- •Americans with Disabilities Act
- •Solution to Opening Dilemma
- •Chapter Recap
- •End-of-Chapter Questions
- •Notes
- •Key Words
- •The Role of the Front Office in Marketing and Sales
- •Planning a Point-of-sale Front Office
- •Set Objectives
- •Brainstorm Areas for Promotion
- •Evaluate Alternatives
- •Devise Incentive Programs
- •Theories of Motivation
- •Douglas McGregor
- •Abraham Maslow
- •Elton Mayo
- •Frederick Herzberg
- •Applying Motivation Theories
- •Maslow
- •Mayo
- •Herzberg
- •Training Programs for a Point-of-sale Front Office
- •Train in Sales Skills
- •Develop an Attitude of Presenting Opportunities
- •Let Employees Experience Hotel Services
- •Use Role-Playing to Create Your Own Training Video
- •Budgeting for a Point-of-sale Front Office
- •Feedback
- •Guest Test
- •Financial Results
- •Planning a Point-of-sale Front Office—An Example
- •Solution to Opening Dilemma
- •Chapter Recap
- •End-of-Chapter Questions
- •Notes
- •Key Words
- •Importance of a Security Department
- •Organization of a Security Department
- •Job Analysis of the Director of Security
- •In-House Security Departments versus Contracted Security
- •Room Key Security
- •Hard-key System
- •Electronic Locks System
- •Smart Card
- •Contactless Electronic Locks
- •Fire Safety
- •General Fire Code Requirements
- •Guest Expectations
- •Fire Safety Plan
- •Employee Training in Fire Safety
- •Guest Instruction in Fire Safety
- •Fire Action Communication Procedure
- •Emergency Communication
- •Developing the Emergency Communication Plan
- •Employee Safety Programs
- •Employee Safety Committee
- •Composition and Activities of the Safety Committee
- •Department Supervisors’ Responsibility
- •Safety Training Programs
- •Solution to Opening Dilemma
- •Chapter Recap
- •End-of-Chapter Questions
- •Notes
- •Key Words
- •Importance of the Housekeeping Department
- •Overview of a Housekeeping Department
- •Relationship of the Executive Housekeeper to the General Manager
- •Management of a Housekeeping Department
- •Room Assignment/Workload
- •Outsourcing Housekeeping Activities
- •Housekeeper’s Report
- •Communication
- •Situation 1: Why Can’t Room Attendants Get Those Rooms Cleaned More Quickly, or, If That Guest Asks One More Time…
- •Inventory Control
- •Fixtures
- •Theft Control of Inventory
- •In-house Laundry versus Outsourced Laundry
- •Occupational Safety and Health Administration
- •Material Safety Data Sheets
- •Americans with Disability Compliance
- •Professional Associations
- •Role of Chief Engineer in a Lodging Property
- •Job Analysis
- •Job Description
- •Technology
- •Managing Maintenance Inter-departmental Communications
- •Energy Management
- •The Greening of the Lodging Industry
- •Leadership in Energy and Environmental Design (LEED)
- •Solution to Opening Dilemma
- •Chapter Recap
- •End-of-Chapter Questions
- •Notes
- •Key Words
- •Glossary
- •Index
54 C H A P T E R 2 ■ H O T E L O R G A N I Z AT I O N A N D T H E F R O N T O F F I C E M A N A G E R
stability, equipment maintenance, and environmental control. He or she can be one of the most treasured assistants in a lodging business.
A role similar to that of the plant engineer in a select-service property is that of maintenance manager, a staff member who maintains the heating and air-conditioning plant, produces guest room keys, helps housekeeping attendants as required, and assists with safety and security. The select-service property emphasizes quality in guest service, which is delivered by an efficient staff.
Executive Housekeeper
The executive housekeeper is responsible for the upkeep of the guest rooms and public areas of the lodging property. This person must work through other people to get the job done. Each room attendant must be thoroughly trained in cleaning techniques. Each floor inspector, a person who supervises the housekeeping function on a floor of a hotel, and each housekeeping employee must be trained in standard inspection techniques. (Many hotels are moving away from the use of floor inspectors and instead are implementing self-inspection systems.) Speed and efficiency are paramount in performing the vital service of maintaining guest rooms and public areas.
Skill in supervising unskilled labor is essential. Survival fluency in foreign languages is important to the executive housekeeper, who must communicate effectively with employees. Accurate scheduling of employees is also necessary to maintain control over labor costs. The executive housekeeper is further responsible for maintaining and controlling an endless inventory of linens, soap, guest amenities, furniture, in-house marketing materials, live and artificial plants, and more. The executive housekeeper, like the plant engineer, must stay abreast of new ideas and techniques through trade journals and continuing education courses.
The executive housekeeper supervises the in-house laundry, if one is present. The equipment, cleaning materials, cost controls, and scheduling are handled in cooperation with the laundry supervisor.
The select-service property depends on this member of the management team to supervise the staff that provides clean rooms and operates an in-house laundry. This hands-on supervisor works with the staff to provide many behind-the-scenes guest services. The housekeeper travels the elevators of high-rise select-services properties, stopping at each floor to provide employees with constant supervision and motivation.
Interdepartmental cooperation and communication with the front desk and maintenance department are vital for the executive housekeeper in both full-service and selectservice hotels. The release of cleaned rooms for occupancy and the scheduling of periodic maintenance are only two functions demonstrating why interdepartmental cooperation is critical. In addition, the marketing and sales efforts in hotels depend on the housekeeper to enforce cleanliness and appearance standards in the public areas so that guests are attracted to and impressed by the property. More information about the executive housekeeper and that department is detailed in chapter 15.
T Y P I C A L J O B R E S P O N S I B I L I T I E S O F D E PA R T M E N T M A N A G E R S 55
I N T E R N A T I O N A L H I G H L I G H T S
uManagers in a hotel have a particular responsibility to prepare their employees to communicate with their guests. This is very important for international guests. Front-line employees can assist an international guest by adopting an attitude of “hospitality without question.” This
simple concept encompasses a front-line employee maintaining a watchful eye for guests who appear confused, express difficulty in communicating in the local language, or seem hesitant about responding to inquiries. Training programs with role-playing exercises that focus on visitors who can’t communicate in the local language and employees who must respond to their inquiries allow front-line employees to practice hospitality without question. This concept can be further advanced when a front office manager maintains an inventory of employees who speak several languages.
Human Resources Manager
In a full-service lodging property, the luxury of employing a human resources manager is beneficial for everyone. This person is responsible for administering federal, state, and local employment laws as well as advertising for and screening job candidates and interviewing, selecting, orienting, training, and evaluating employees. Each department director can rely on the human resources manager to provide leadership in the administration of complex personnel programs such as implementation of wage and salary laws.
Staffing a hotel involves many time-consuming tasks:
■Writing and placing classified ads
■Screening, interviewing, testing, and selecting candidates
■Orienting, training, and evaluating new employees
The preparation of job descriptions, while perceived by many in the hotel industry as a luxury, is mandatory if the employees are represented by a collective bargaining unit—that is, a labor union. The human resources manager can assist in preparing the job analysis and subsequent job description. This process helps him or her develop realistic job specifications.
The development of employees by providing a plan for the growth of each takes a great deal of planning and evaluating. Each department director works under pressure to meet budget guidelines, quality control levels, sales quotas, and other goals. The human resources manager can assist each director in making plans to motivate employees, to develop career projections for them, to provide realistic pay increases, and to establish employment policies that reflect positively on the employer.
Select-service properties do not employ a human resources manager but rather divide the responsibilities among department heads. Although the emphasis remains on wellplanned and competently delivered human resources activities, the streamlined selectservice property relies on interdepartmental cooperation to accomplish its objectives.
56 C H A P T E R 2 ■ H O T E L O R G A N I Z AT I O N A N D T H E F R O N T O F F I C E M A N A G E R
Marketing and Sales Director
In this job title, the marketing function is emphasized. The person in this position plays an essential role in all departments of the hotel. An effective director of marketing and sales not only attracts external sales such as conventions, small business conferences, wedding receptions, and dining room and lounge business but also provides direction for promoting in-house sales to guests.
This is an exciting position that requires endless creativity. The director of marketing and sales is constantly evaluating new markets, reviewing the needs of existing markets, watching new promotions by the competition, organizing sales blitzes, working with community and professional groups to maintain public relations, working with other department directors to establish product and service specifications and in-house promotional efforts, and following up on details, details, and more details. This is a high-energy position that not only provides financial vitality but also fosters the attainment of financial goals by all departments.
Some select-service properties employ a full-time or half-time marketing and sales director. The duties of this position may also be shared by the general manager and front office manager; these duties (with the exception of soliciting food and beverage business) are the same as those of the marketing and sales director. Competition for room sales to the corporate, group, and pleasure travel markets is enormous, and each hotel must address this planning need.
Front Office Manager
The role of the front office manager is detailed more completely later in this chapter. In short, however, the major responsibilities of the front office manager include reviewing the final draft of the night audit, a daily review of the financial accounting procedures at the front desk and other guest service areas during the previous 24-hour period and an analysis of operating results; operating and monitoring the reservation system; developing and operating an effective communication system with front office staff and other department directors; supervising daily registrations and checkouts; overseeing and developing employees; establishing in-house sales programs at the front desk; preparing budgets and cost-control systems; forecasting room sales; and maintaining business relationships with regular corporate and community leaders. The front office manager works with an assistant front office manager, a night auditor, a reservations manager, and a bell captain to tend to the details of running an efficient department.
These are just a few of the responsibilities of the front office manager. The front office is a pivotal point in communication among in-house sales, delivery of service to the guest, and financial operations. The position requires an individual who can manage the many details of guest needs, employee supervision, interdepartmental communication, and transmittal of financial information. The person who holds this exciting position can develop an overview of the lodging property with regard to finances and communication.
T Y P I C A L J O B R E S P O N S I B I L I T I E S O F D E PA R T M E N T M A N A G E R S 57
F R O N T- L I N E R E A L I T I E S
qAfuture guest has called the hotel and wants to arrange a small dinner party for his guests on the first day of his visit. The marketing and sales office is closed for the day, and the banquet manager has left the property for a few hours. What would you suggest the front desk clerk
do to assist this future guest?
Controller
The controller is the internal accountant of a hotel. He or she is responsible for the actual and effective administration of financial data produced daily in the hotel. In the lodging property, appropriate daily financial information must be available to corporate owners, management, and guests. This requires a well-organized staff, not only to prepare operating statistics but also to assist the general manager in determining the effectiveness of each department manager. Often the general manager relies on the controller for financial insight into the operations of the property, including cash flow, discounts, evaluation of insurance costs, fringe-benefit cost analysis, investment opportunities, computer technology applications, banking procedures, and more.
The controller’s department processes accounts payable (amounts of money the hotel owes to vendors), accounts receivable (amounts of money owed to the hotel by guests), the general ledger (a collection of accounts the controller uses to organize the financial activities of the hotel), statement of cash flows (a projection of income from incomegenerating areas of the hotel), the profit-and-loss statement (a listing of revenues and expenses for a certain period), and the balance sheet (a listing of the financial position of the hotel at a particular point in time). This busy department provides financial information to all department directors.
The general manager of a select-service property acts as the controller with the assistance of the night auditor. (In some properties, the night audit is performed during the day and the night auditor is replaced with a lower-salaried front desk clerk for late-night coverage.) The ownership of a select-service hotel may be a part of the larger financial portfolio of a business, which helps the general manager perform the controller’s responsibilities by processing accounts payable, accounts receivable, and payroll.
Director of Security
The director of security works with department directors to develop cost-control procedures that help ensure employee honesty and guest safety. This person supervises an ongoing training program in cooperation with department directors to instruct employees in fire, job, and environmental safety procedures. Fictional stories often depict the security director as someone who investigates crimes after the fact. On the contrary, this person’s primary responsibility is to implement programs that make employees securityminded, helping prevent crime from occurring.