© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Chapter 5 Rooms Division Operations

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition After Reading and Studying This Chapter, You Should Be Able to: Outline the duties and responsibilities of key executives and department heads Draw an organizational chart of the rooms division of a hotel and identify the executive committee members Describe the main functions of the rooms division department

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition After Reading and Studying This Chapter, You Should Be Able to (cont.): Describe property management systems and discuss yield management Calculate occupancy percentages, average daily rates, and actual percentage of potential rooms revenue Outline the importance of the reservations and guest services functions List the complexities and challenges of the concierge, housekeeping, and security/loss prevention departments

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Functions of a Hotel Lodging accommodations Revenue centers Cost centers Serve and enrich society Profit for the owners

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Role of a General Manager Chief Operating Officer (COO) Ensuring highest level of associate and guest service Overseeing and coordinating operations Increasing profitability

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Qualities of Successful Hospitality Leaders Leadership Attention to detail Follow-through People skills Patience Ability to delegate effectively

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Executive Committee General manager Director of human resources Director of food and beverage Director of rooms division Director of marketing and sales Director of engineering Director of accounting

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Figure 5-1 Executive Committee Chart

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Rooms Division Front office Reservations Housekeeping Concierge Guest services Security Communications

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Figure 5-2 Rooms Division Organizational Chart

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Front Office Manager (FOM) Enhance guest services Ensure the desired percentage of each market segment is achieved Make and exceed budget forecasts

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Basic Functions of the Front Office Review previous night’s occupancy/ADR Review arrivals/departures/VIP rooms Staffing adjustments/scheduling Look over market mix Meet with lead GSAs Sell rooms Maintain balanced guest accounts Offer services such as faxes, mail, messages, etc.

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Figure 5-3 The Guest Cycle

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Night Auditor Posts charges Closes the books on a daily basis Balances guest accounts Completes daily report

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Night Audit Process in Simple Terms Add yesterday’s closing balance of accounts owed by guests Less payments received today against accounts Plus all charges made today to guests’ account Equals day’s closing balance of accounts owed by guest

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Hotel Occupancy Statistics Occupancy statistics:  Percentage of Occupancy = Rooms Occupied Total Rooms Available

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Hotel Occupancy Statistics (cont.) Occupancy statistics (cont.):  Double/Multiple Occupancy Percentage = Total # of Guests – # of Rooms Occupied # of Double-Occupied Rooms

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Hotel Revenue Statistics Revenue statistics:  Average Daily Room Rate (ADR) = Total Rooms Revenue Total Number of Rooms Sold

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Property Management Systems (PMS) Computer-based applications:  Reservations management  Rooms management  Guest account management  General management

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Revenue Management Increases room revenue by using demand- forecasting technique Based on the economics of supply and demand Pricing is based on:  Trends of demand  Type of room to be occupied Rev Par = Room Revenue Number of Rooms Available

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Reservations Internet First area of guest contact A sales position Telephone skills Central Reservations System (CRS)

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Reservation Definitions Confirmed reservation Guaranteed reservation Advance deposit/advance payment No show 6 PM release

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Communications or PBX Public Branch Exchange Profit center Includes many types of communication:  Faxes  Messages  Pagers and radios  Emergency center

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Guest Services Uniformed Service Bell captain or guest services manager Door attendants:  Hotel’s unofficial greeters Bell persons:  Escort guests to their rooms  Transport luggage

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Concierge Part of guest/uniformed services Elevate properties’ marketable value Typically in a luxury hotel Unique requests Knowledge of city Ability to speak several languages preferred

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Housekeeping Largest department in terms of people Executive housekeeper Cleanliness is the key to success

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Duties of the Executive Housekeeper Leadership of people, equipment, and supplies Cleanliness and servicing the guest rooms and public areas Operating the department according to financial guidelines Keeping records

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Other Duties of Housekeeping Turndown service Hotel laundry Laundry and dry cleaning for guests General hotel cleaning Linen room

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition In-House Laundry Advantages:  24-hour anytime laundry service for guests  Smaller par-stock of linen  Full control over quality of laundered linen

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Contract Laundry Service Advantages:  No maintenance costs for equipment  No labor costs for training/staffing  Lower overhead costs of energy/water  Fixed projected expense

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Security and Loss Prevention Providing guest safety and loss prevention:  Security officers  Equipment  Keys  Safety procedures  Identification procedures  ADA compliance

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Trends Diversity of workforce Increase in use of technology Continued quest for increases in productivity Increasing use of revenue management to increase profit by effective pricing of room inventory Greening of hotels and guest rooms

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Trends (cont.) Security Diversity of the guest Compliance with the ADA Hotel companies are trying to persuade guests to book rooms via the company website instead of an Internet broker Hotels are upgrading in-room technology