- •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
328 C H A P T E R 1 1 ■ M A N A G I N G H O S P I TA L I T Y
W. Edwards Deming’s principles of TQM11 can be applied to front office management practices. Managers must focus on a distinct level of service at the front office. Managers and front-line employees must view the interaction between customers and service providers. A front office team develops a flowchart, an analysis of the delivery of a particular product or service, to illustrate what occurs after a customer has asked for a product or service. Analysis of this interaction by the group of people who deliver the product or service allows for suggestions for improvement. A key component of TQM is a commitment to continuous analysis of the delivery of guest services and to plans for improvement.
Developing a Service Management Program
Employee involvement in planning a service management program is as important as obtaining a financial commitment from owners to establishing such a program. Too often, when the employees are not included in the planning stages, they look at the final plan and remark, “This is ridiculous. It’s not for me. Let the people in marketing and sales worry about it.” In many cases, service is perceived as just another fancy concept proposed by management. Management must address this attitude from the outset. When employees are involved early, they are much more likely to buy into the program because they are already a part of it.
F I G U R E 1 1 - 5
This TQM team is analyzing the delivery
of a particular service to a guest. Managers and front-line employees provide an objective review. Photo courtesy of iStockphoto.com.
D E V E L O P I N G A S E R V I C E M A N A G E M E N T P R O G R A M 329
Guest Cycle
The front office manager responsible for developing an effective service management program, along with other department directors, should first look at the employees they supervise. Representatives from all job categories and shifts should be included on the planning committee. Planning by committee can be cumbersome (scheduling, planning meetings, incurring additional payroll, etc.), but it is most likely to lead to an effective program. It allows a drafted plan to be altered in the planning stages by those who must implement it and ensures clear, workable operational methods. It gives the employees time to adjust to the new concept, while developing adoption procedures. At each planning phase, employees learn how they will benefit from the program. This is a realistic way to focus management’s efforts to promote this important concept.
Once the members of the planning committee are chosen, their first step is to analyze the guest’s perception of the hospitality system:
Visualize your organization as dealing with the customer in terms of a cycle of service, a repeatable sequence of events in which various people try to meet the customer’s needs and expectations at each point. It may be the instant at which the customer sees your advertisement, gets a call from your salesperson, or initiates a telephone inquiry. It ends only temporarily, when the customer considers the service complete, and it begins anew when he or she decides to come back for more.12
Figure 11-6 illustrates the cycle of service, the progression of a guest’s request for products and services through a hotel’s departments. This outline is presented as a
F I G U R E 1 1 - 6 This review of the cycle of services guests may encounter is the basis for
developing a service management program.
Marketing
•Customer surveys (before and after stay)
•Advertising: billboards, direct mail, radio, television, print, Internet; incentive promotions, solo and with other hospitality organizations; social media
Reservations
•Toll-free numbers, fax, national reservation system (ease of access), Internet
•Telephone manner of reservationists
•Cancellation policy (reasonable restrictions)
•Credit card acceptance
•Accommodation availability (value and cost considerations)
•Complimentary services/products (value and cost considerations)
•Information on hotel shuttle and public transportation
•Social media
Registration
• Hotel shuttle and public transportation
330 C H A P T E R 1 1 |
■ M A N A G I N G H O S P I TA L I T Y |
F I G U R E 1 1 - 6 |
Continued |
•Greetings (doorman, bell staff, front desk personnel)
•Assistance with luggage
•Check-in procedure (length of time in line, ease of check-in with preprinted registration cards or selfregistration machine)
•Room accommodations (value and cost considerations)
•Credit card acceptance
•Complimentary services/products (value and cost considerations)
•Room status/availability
•Information on other hotel services
•Cleanliness and interior design of lobby, elevators, room
•Operation of air conditioning, heat, television, radio, plumbing in room
•Amenities available
•Social media
Guest Stay
Other hotel departments:
•Food service department (menu offerings, hours of operation, prices, service level, ambiance)
•Gift shop (selection, souvenirs, value/price)
•Lounge (prices, entertainment, hours, service level)
•Room service (menu offerings, prices, hours of availability, promptness in delivery and pickup of trays)
•Valet service (pickup and delivery times, prices, quality of service)
•Housekeeping services (daily room cleaning, replenishment of amenities, cleanliness of public areas, requests for directions in hotel)
•Accommodation availability (value and cost considerations)
•Technology (business services, Wi-Fi, computers)
•Security (24-hour availability, fire safety devices, anonymous key blank and distribution, key and lock repair service, requests for directions in hotel)
Front office:
•Requests for information and assistance (wake-up calls, hours of operation of other departments, transmittal of requests to other departments)
•Telephone system (assistance from staff)
•Update of guest folio
•Extension of stay
Checkout
•Reasonable and flexible checkout time deadlines
•Assistance with luggage
•Elevator availability and promptness
•In-room video checkout
•Length of time in line
•Immediate availability of guest folio printout; accuracy of charges
•Additional reservations
•Social media
D E V E L O P I N G A S E R V I C E M A N A G E M E N T P R O G R A M 331
working tool for front office managers to use in analyzing the hotel services the guest encounters, not as a complete listing. It is important to remember these services are provided by the employees of the hotel. In developing a list for a specific hotel property, employee input is vital.
Another benefit of analyzing the cycle of service is that the process may reveal inefficiencies built into the system. Rectifying these will assist in delivering first-rate hospitality, as the following example, reported by Nancy J. Allin and Kelly Halpine of the quality assurance and training department at the Waldorf=Astoria in New York, indicates:
While there can be many reasons to combine the positions of registration clerk and cashier, and many aspects were considered at the Waldorf=Astoria, the decision was driven by a desire to improve guest service where its impact is most obvious—at the front desk. Cross-trained employees speed the check-in and checkout process by performing both functions, as the traffic at the desk dictates. Registration clerks can cash checks and cashiers can issue duplicate room keys, in many cases eliminating the necessity of having the guest wait in two lines.13
Moments of Truth in Hotel Service Management
Central to the development of a guest service program is the management of what Albrecht and Zemke call moments of truth: “episode[s] in which a customer comes into contact with any aspect of the company, however remote, and thereby has an opportunity to form an impression.”14 Every time the hotel guest encounters some aspect of the hotel, he or she judges its hospitality. Guests who are told by a reservationist they must “take this room at this rate or stay elsewhere” will not feel hospitality is a primary consideration at this hotel. When a potential guest calls and asks to speak with Ms. General Manager and the switchboard operator answers, “Who is that?” the guest will expect the same kind of careless, impersonal treatment when (or if) he or she decides to stay at the hotel. The guest who is crammed into an elevator with half the housekeeping crew, their vacuum cleaners, and bins of soiled laundry will not feel welcomed. All these impressions make the guest feel service at this hotel is mismanaged.
These examples are only some of the moments of truth that can be identified from an analysis of the guest service cycle. Whether a guest considers an event a moment of truth or barely notices, it is a cumulative review of the delivery of hospitality. Albrecht and Zemke tell us guests each have a “report card” in their head that is the basis of a grading system that leads them to decide whether to partake of the service again or to go elsewhere.15 If a guest is to award the hotel an A1 to the hotel’s hospitality report card, it is essential that all moments of truth be well managed. This challenge is not to be viewed as an impossible mission but rather as an organized and concerted effort by owners, management, and employees. Keep this customer report card concept in mind as you develop your ideas about service management.