The Organization and Structure of Lodging Operations Chapter 5

Chapter 5 Objectives Size and Scope of Lodging Industry American hotel classifications European hotel types and market segments Organization of an American Hotel including hotel departments and their duties Organization of European Hotels Cooperation between departments

Size and Scope Objective 1

Size and Scope Estimated 12 million hotel rooms worldwide Europe Europe has 50% North America has 33% Europe Smaller hotels More independents America Ranked 3rd among service industries

American Hotel Classifications Objective 2

American Hotel Classifications Commercial Hotels Full Service Attracts business travelers Offers all amenities Close proximity to downtown, business parks Limited Service Attracts families, government, tour groups Limits amenities to remain profitable

American Hotel Classifications (cont.) Airport Hotels Close proximity to airports Often offers shuttle to/from airport Convention Hotels Adjacent to a Convention Center Offers more meeting space Targets Associations, Corporate Meetings & Trade Shows Conference Centers Similar to Convention Hotels Focuses on conferences and training programs

American Hotel Classifications (cont.) Suite or All-Suite Hotels Separate living and bedroom areas May have kitchenettes Good for business/entertaining and families Extended-Stay Hotels Resemble apartments Attracts long term stay (7+ nights) Residential Hotels Hotels with long term residents

American Hotel Classifications (cont.) Casino Hotels Gambling facilities, entertainment Resort Hotels Located in great locations and attracts vacationers Modern Resort Hotels Mixed-Use – part hotel, part real estate Urban Casino All-Inclusive Boutique

American Hotel Classifications (cont.) Bed and Breakfast Hotels Sleeping accommodations and breakfast Smaller property with owner on premise Boutique Hotels Located in major metropolitan areas Distinctive Style, Trendy

European Hotel Classifications Objective 3

European Hotel Classifications Grand or Deluxe Four-Star Business Economy Business Resorts Airport Hotels Country Inns Grand Tour Operators’ Hotels

Organization of American Hotels Objective 4

Organization of American Hotels Front of the House Interacts directly with guests Back of the House Minimal contact with guests Revenue Centers Bring revenue to the hotel Support Centers Necessary to function but does not bring in revenue

Organization of American Hotels (cont.) The Rooms Division Front Office Telecommunications Reservations Uniformed Service Housekeeping

Organization of American Hotels (cont.) Food & Beverage Division Engineering & Maintenance Division Marketing & Sales Division Accounting Division Human Resources Division Security Division

Organization of European Hotels Objective 5

Organization of European Hotels Typically owned by Individual or Family Had 3 individuals with Authority Chef de Reception Equal to our Front Office Manager Maître d'hôtel Equal to our F&B Manager Chef de Cuisine Equal to our Executive Chef

Cooperation between Departments Objective 6

Cooperation between Departments Communication between departments Maintains Reputation and Value Each service typically requires 2 or more departments to complete Team Work Interact with Owners, Management, and all employees

Cooperation between Departments (cont.) External Groups we interact with Guests Have wants and needs to be satisfied Factors that may influence a guest: Reason for traveling Value or Perceived Value Demographics or Social Factors Suppliers Mutual need to make a profit Respectful relationship

Cooperation between Departments (cont.) External Groups we interact with The Community Business that comes from tourism/travelers Convention and Visitors Bureaus Government Agencies Taxes Fees and Licenses Tax Incentive Opportunities