
- •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
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14 C H A P T E R 1 ■ I N T R O D U C T I O N T O H O T E L M A N A G E M E N T
Types of Lodging Facilities
Classification of hotel facilities is not based on rigid criteria. Definitions can change depending on market forces, legal criteria, location, function, and, in some cases, personal preference, but the definitions that follow are generally accepted and are the ones intended for these classifications throughout this text.
Hotels
A hotel usually offers guests a full range of accommodations and services, which may include reservations, suites, public dining and banquet facilities, lounge and entertainment areas, room service, cable television, personal computers, business services, meeting rooms, specialty shops, personal services, valet, laundry, hair care, swimming pool and other recreational activities, gaming/casino operations, ground transportation to and from an airport, and concierge services. The size of the property can range from 20 to more than 2000 rooms. Hotels are found in center-city, suburban, and airport locations. Guest stays can be overnight or long term—as long as several weeks. Properties sometimes specialize in catering to particular markets, such as conventions or gambling. Casino hotels usually take a secondary role to the casino operation, where the emphasis is on profitable gaming operations. Marriott’s hotels operated as JW Marriott Hotels & Resorts and Renaissance Hotels & Resorts, as well as Hyatt brands operated as Hyatt Regency Hotels, Grand Hyatt Hotels, and Park Hyatt Hotels, are examples in this category.
F I G U R E 1 - 4
Photo courtesy of
Waldorf=Astoria
Hotel, New York
City.

Motels
T Y P E S O F L O D G I N G FA C I L I T I E S 15
Motels offer guests a limited range of services, which may include reservations, vending machines, swimming pools, and cable television. The size of these properties averages from 10 to 50 units. Motels are usually in suburban highway and airport locations. Guests typically stay overnight or for a few days. Motels may be located near a freestanding restaurant.
All-suites
The all-suites concept was developed in the 1980s as a separate marketing concept. These hotels offer guests a wide range of services that may include reservations, living room and separate bedroom, kitchenette, optional public dining room and room service, cable television, videocassette players and recorders, specialty shops, personal services, valet and laundry, swimming pool, and ground transportation to and from an airport. The size of the operation can range from 50 to more than 100 units. This type of property is usually found in center-city, suburban, and airport locations. The length of guest stay can be overnight, several days, or long term.
Although this type of hotel may seem relatively new, many downtown center-city hotels have offered accommodations with in-room kitchenette and sitting room since the
H O S P I T A L I T Y P R O F I L E
oseph Longo is the general man- |
Group. Prior to becoming general manager of The |
Jager of The Jefferson Hotel, |
Jefferson Hotel, Mr. Longo was regional director |
?a 265-room historic property in |
of operations for the Field Hotel Association in |
Richmond, Virginia. One of only 17 |
Valley Forge, Pennsylvania. |
hotels in North America to receive both the Mobil |
The sales and marketing effort for this indepen- |
Five Star and AAA Five Diamond ratings, The |
dently owned property requires aggressive sales |
Jefferson Hotel offers guests the highest level of |
and public relations strategies. Focus is placed not |
products and services available, with a strong com- |
only on the guest rooms but also on the 26,000 |
mitment to warm, genuine, and gracious?service. square feet of function space and the two restau- |
|
Mr. Longo obtained B.S. degrees in business |
rants, one an AAA Five Diamond Award winner. |
administration and communication from Saint |
Mr. Longo encourages students who are pursu- |
John’s University in New York. While in college, |
ing a hospitality management career to remember |
he worked at the front desk at The Saint Regis |
that, as innkeepers, the hotel is like your home, |
Hotel in New York City and began his profes- |
where all of your guests are made to feel welcome. |
sional career at the Sheraton-Carlton Hotel in |
This means providing all guests with the basics of |
Washington, DC, as the rooms division manager. |
hospitality: a comfortable room, exceptional food, |
He then became general manager of The River Inn |
and a friendly staff to serve them. He adds that |
hotel in Washington, DC, and then the regional |
hospitality is a diverse business, offering a unique |
director of operations for the Potomac Hotel |
work experience each day. |
|
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16 C H A P T E R 1 ■ I N T R O D U C T I O N T O H O T E L M A N A G E M E N T
early 1900s. Now, with mass marketing—advertising products and services through mass communications such as television, radio, and the Internet—this type of hotel is considered “new.” Examples of the all-suite concept include Hilton’s Embassy Suites Hotels and InterContinental Hotels’ Candlewood Suites.
Select-service Hotels
Select-service hotels appeared in the mid-1980s. Hampton Inn and Marriott were among the first organizations to offer select service properties.
The concept of select service was developed for a specific segment of the market: business and cost-conscious travelers. The range of accommodations and services may include reservations, minimal public dining and meeting facilities, cable television, personal computers, personal services (valet and laundry), and ground transportation to and from an airport. The size of the property can range from 100 to more than 200 rooms. Select-service hotels are found in center-city, suburban, and airport locations. They are usually located near restaurants for guest convenience. Guest stays can be overnight or long term. These properties sometimes specialize in catering to the business traveler and offer special business technology centers. Select-service hotel properties include Holiday Inn Express, operated by InterContinental Hotels Group; Comfort Inn, by Choice Hotels International; and Marriott’s Fairfield Inn.
Extended-stay Hotels
Extended-stay properties were designed to offer guests a home-away-from-home atmosphere over long stays precipitated by business, leisure, or personal necessity. For example, a person may have to attend to a business project for several days or weeks; another may want to visit with relatives whose home does not have adequate accommodations for visitors; a third may be accompanying a relative or friend receiving an extended health treatment at a medical center and require overnight accommodations. The patient himself may appreciate the homelike atmosphere of the extended-stay hotel in which to recover between treatments.
Leon Stafford of the Atlanta Journal-Constitution writes, “The big, fancy hotels… have struggled to get 60 percent of their rooms filled since 2001. Meanwhile, extended stays…have remained at least 70 percent filled.” He adds an interesting idea for your career development consideration: “About three extended-stay lodges were built for every traditional hotel constructed between 2001 and 2004.”26
At Hilton’s Homewood Suites, the following room amenities are included: king-size bed or two double beds in the bedroom and foldout sofa in the living room; two remotecontrolled color televisions; fully equipped kitchen with a microwave, refrigerator with ice maker, coffeemaker, twin-burner stove, and kitchen utensils; a spacious, well-lit dining area; ceiling fans; iron and ironing board. Additional hotel services include a business center, an exercise room, and a pool. This hotel concept also structures its room rates to attract the long-term guest.