- •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
L A S T I M P R E S S I O N S O F T H E H O T E L 265
Types of Room Requested
The guest history is useful in determining the types of rooms requested. Are rooms with two double beds requested more often than rooms with one king-size bed? Are rooms designated as nonsmoking being requested more often than rooms designated as smoking? Are suites with cooking facilities requested by corporate clients for long-term guests? Such hard, quantifiable data are what hotel owners use to make construction and purchasing decisions.
Room Rates versus Occupancy Patterns
Reviewing room rates can assist the controller and director of marketing and sales in forecasting profit-and-loss statements. The frequency with which certain price categories of rooms are rented indicates the price sensitivity of certain market segments. If price sensitivity is an indicator of room occupancy, then marketing programs that maximize profits in that area must be implemented.
Examining occupancy patterns helps the front office manager schedule personnel. In certain corporate market properties, the hotel may be full from Sunday through Thursday nights but nearly empty on Friday and Saturday. A lodging establishment with a large volume of tourist business on weekends experiences the opposite situation. The front office manager should schedule staff accordingly.
The guest history of the PMS checkout module gives the front office manager a sophisticated method of drawing on these data from a database of reservations and registrations. It is easy to group marketing patterns. The concepts already discussed help in developing readily available data.
Tracking Social Media
Application of social media such as LinkedIn, Facebook, Twitter, and Flickr provides an opportunity to capture users’ email addresses and personal interests. In addition, if the origin of the hotel reservations from LinkedIn comes from a group of businesspersons within a certain occupational, sporting, or social segment, this may alert the marketing department to develop additional advertising opportunities.
Last Impressions of the Hotel
The front desk staff has the vital responsibility to create the guests’ last impression of the hotel. All the great service opportunities afforded the guest throughout his or her stay can be shattered or advanced at the point of departure. Kind words, a speedy checkout, an offer for directions to the airport, and so on all let the guest know you care. For example, Marriott International, Inc., offers At Your Service®, which includes Internet resources for local weather reports, information on airport shuttle, and prior downloading of a future guest’s email. All of these services allow guests to prepare for their visit—and,
266 C H A P T E R 9 ■ G U E S T C H E C K O U T
I N T E R N A T I O N A L H I G H L I G H T S
uThe Travel Industry Association of America indicates the volume of travelers to the United States from China, India, Russia, and Poland will increase.3 One implication of this prediction, and others like it, is that students preparing for a career in the hotel industry must
become familiar with the needs of international visitors. Studying foreign languages, common cultural concerns, and differences in legal tender help students become valuable members of the hotel team. A hotel employee who can assist an international guest in understanding the guest folio and determining the rates of currency exchange greatly improves the chances that this guest will return.
when checkout time arrives, a good opportunity exists for the front office staff to create that last impression that continues the display of hospitality.2
Solution to Opening Dilemma
The following list of questions to ask the vendor may help justify the purchase of the guest history PMS:
■Does this module allow us to track registrations by ZIP code?
■Can we match ZIP code and media indicated on registration, such as radio, television, newspaper, billboard, third-party website, central reservation, travel agent, and direct mail?
■Can we print a list of guest business affiliations?
■Can we print a list of persons who initiate the reservations for corporate clients?
■Are we able to track frequency of individual guest reservations?
■Is there a means of showing how many times our suites are rented versus how many times our standard deluxe rooms are rented?
■Can that list of suite and standard deluxe room rentals be sorted by group, such as corporate, tourist, government, or commercial?
■Can we track the number of denials we have had to issue because a certain type of room was not available?
■Does this module show our occupancy patterns by week, month, and year?
■How can I track social media applications such as LinkedIn, Facebook, Twitter, and Flickr?
Chapter Recap
This chapter introduced the concepts and procedures required to organize and operate a guest checkout system in a hotel. The importance of communicating late charges to the front office and of notifying point-of-sale areas about checkouts was discussed. The
E N D - O F - C H A P T E R Q U E S T I O N S 267
procedure for checking out a guest was reviewed, with attention given to the sales and hospitality aspects of the procedure. The chapter emphasized the importance of communication among the housekeeping department, the food and beverage department, and the front office to strengthen service and to ensure the profitability of the lodging property. The guest history, from which guest data are grouped and analyzed, was presented as an important source of marketing feedback.
End-of-Chapter Questions
1.Why should a front office manager be concerned about compiling a guest’s late charges? Give an example of losses that can result if late charges go unpaid.
2.Why should a front desk clerk ask a guest who is checking out about the quality of products and services? Who needs this information?
3.Why is the retrieval of a room key so important to the guest? to the hotel?
4.Do you feel a guest should review the guest folio during checkout? Why?
5.If you have used an in-room guest checkout system while you were a guest in a hotel, describe the procedure you followed. Do you feel it was a convenience or a novelty?
6.Discuss the methods of payment available to the guest. Why does the hotel not consider these payment options financially equal?
7.Discuss the types of credit cards. Explain their advantages to the guest and to the hotel.
8.What does bill-to-account mean? What are the hidden costs of this method of payment?
9.Why is cash not an eagerly sought method of payment?
10.What is a debit card? How does it differ from a credit card?
11.Summarize the procedures to follow when accepting credit cards, bill-to-accounts, cash, checks, and traveler’s checks as methods of payment.
12.A guest wants to pay her account of US$439 in Canadian dollars. How would you proceed?
13.How do you feel about obtaining a reservation at the time of checkout? What steps would you suggest to a front office manager to secure future reservations?
14.Why does the night auditor want all paperwork in order before beginning the night audit?
15.Why must the front office communicate a guest’s departure to the point-of-sale areas not interfaced with a PMS?
268 C H A P T E R 9 ■ G U E S T C H E C K O U T
16.Convert a guest’s folio amount from US$395 to euros using an exchange rate of €1.592.
17.What types of guest account are transferred to the back office?
18.List the reports that can be generated by the checkout procedure and explain how they can assist management.
19.Discuss the role of the guest history in developing marketing strategies.
20.How would you suggest using Facebook to supplement guest history tactics in a hotel?
C A S E S T U D Y 9 0 1
Margaret Chu, general manager of The Times Hotel, has received a phone call from the Service Feedback Agency, which she employs to provide feedback on customer service. The agent from this service said 6 of 15 former guests indicated a lengthy delay in checkout, the holdup was caused by a desk clerk who repeatedly called for the supervisor to clarify how to operate the PMS. On another point of service, none of the 15 former guests was asked to make a future reservation.
Ms. Chu calls Ana Chavarria, the front office manager, into her office to discuss this report. Ana finds the service feedback report disturbing and promises to rectify the matter. Later that day, she
calls Vicente Ramirez, head cashier, into her office. She asks him to write a step-by-step procedure for checking out a guest, with particular attention to use of the PMS. She also calls Angelo DeSalo, head reservation agent, into her office and asks why no future reservations are being requested at the time of checkout. Angelo indicates the desk clerks are busy and just don’t have time to request another reservation.
What steps do you think Vicente Ramirez will include in the procedure for checking out a guest? What suggestions can you give Ana Chavarria to motivate her desk clerks to ask for an additional reservation at checkout?
C A S E S T U D Y 9 0 2
Margaret Chu, general manager of The Times Hotel, has returned from a meeting of the local hotel association. The head of the state government agency on international tourism made a presentation and asked the attendees to support the state’s efforts to secure international visitors to the area. He said recent reports indicate foreign visitors to the state will increase by 25 percent in the next two years. The economic impact of this tourism could mean more than $100 million to the local economy.
Ms. Chu calls her hotel professor friend, Dr. Monica
Blair, at the local university and asks if she has a student or two who might want to take on a project of outlining concepts to use in preparing a front desk staff for international visitors. The students would work with Ana Chavarria, front office manager.
Prior to visiting Ms. Chavarria, the students are instructed to prepare an outline focusing on the question “What does the international guest need to know to have a successful visit to our town?”
Help these two students develop a list of questions to ask in their meeting with Ana Chavarria.