Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Chapter 5 Lodging Operations

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 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

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ After Reading and Studying This Chapter, You Should Be Able to: 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

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Functions of a Hotel Lodging accommodations Revenue centers Cost centers Serve and enrich society Profit for the owners Exceed Guest ExpectationsExceed Guest Expectations

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Role of a General Manager Chief Operating Officer (COO) Ensuring highest level of associate and guest service Overseeing and coordinating operations Increasing profitability John Handlery- General Manager

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Qualities of Successful Hospitality Leaders Leadership Attention to detail Follow-through People skills Patience Ability to delegate effectively. J. W. "Bill” Marriott

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 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

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Executive Committee Chart

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Rooms Division Front office Reservations Housekeeping Concierge Guest services Security Communications

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Rooms Division Organizational Chart

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Front Office Manager (FOM) Enhance guest services Ensure the desired percentage of each market segment is achieved Make and exceed budget forecasts

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 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 GSA’s Sell rooms Maintain balanced guest accounts Offer services such as faxes, mail, messages, etc.

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ The Guest Cycle

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Duties of a Guest Service Agent Guest Service Agent –7:00 am - 3:00 pm shift Check-outs Guest inquiries Room changes Work with housekeeping –3:00 pm - 11:00 pm shift Check-ins Reservations

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Night Auditor Posts charges Closes the books on a daily basis Balances guest accounts Completes daily report

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 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

Different Room Rates Rack rate Corporate Government Entertainment cards AAA Group rates AARP

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Hotel Occupancy Statistics Occupancy Statistics –Percentage of occupancy = Rooms Occupied Total Rooms Available

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Hotel Occupancy Statistics Occupancy Statistics (cont.) –Double/Multiple Occupancy Percentage = Total # of Guests - # of Rooms Occupied # of Double Occupied Rooms

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Hotel Revenue Statistics Revenue Statistics –Average Daily Room Rate (ADR) = Total Rooms Revenue Total Number of Rooms Sold

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Property Management Systems (PMS) PMS –Computer-based applications Reservations management Rooms management Guest account management General management

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Yield 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 = Dividing room revenue by number of rooms available

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Reservations Internet First area of guest contact A sales position Telephone skills Central Reservations System (CRS)

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Reservation Definitions Confirmed reservation Guaranteed reservation Advance deposit/advance payment No show 6 pm release

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Typical Reservation Screen

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Communications or PBX/CBX Public/Central Branch Exchange Profit center Includes many types of communication –Faxes –Messages –Pagers and radios –Emergency center

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Guest Services Uniformed Service Uniformed Service –Bell Captain or Guest Services Manager –Door attendants Hotel’s unofficial greeters –Bell persons Escort guests to their rooms Transport luggage

Concierge Part of guest/uniformed services Elevate properties marketable value Typically in a luxury hotel Unique requests Knowledge of city Several languages preferred

Housekeeping Largest department in terms of people Executive Housekeeper Cleanliness is the key to success

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 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

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Housekeeping Personnel

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Breaking the House Down Assignment of sections for cleaning SC - Checks out that day SS – Stay-over XX - Out of order Based on standard of rooms cleaned per day by each housekeeper

Other Duties of Housekeeping Turndown service Hotel laundry Laundry and dry cleaning for guests General hotel cleaning Linen room

In-House Laundry Advantages –24 hour anytime laundry service for guests –Smaller par-stock of linen –Full control over quality of laundered linen

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Contract Laundry Service Advantages –No maintenance costs for equipment –No labor costs for training/staffing –Lower overhead costs of energy/water –Fixed projected expense

Security and Loss Prevention Providing guest safety and loss prevention Security officers Equipment Keys Safety procedures Identification procedures ADA compliance

Food and Beverage Division Kitchen Catering Banquet Restaurants Room Service Mini-bars Lounges Bars Stewarding

Stewarding Department Responsibilities of Chief Steward: –Cleanliness of back of house. –Cleanliness of glassware, china, and cutlery. –Inventory of chemical stock. –Sanitation. –Maintenance of dishwashing machines. –Pest control. –Forecasting labor and cleaning supply needs.

Catering Department Catering: –Includes a variety of occasions when people may eat at varying times. Banquets: –Refers to groups of people who eat together at one time and in one place. Terms are used interchangeably.

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Trends Diversity of workforce Increase in use of technology Continued quest for increases in productivity Increasing use of yield management to increase profit by effective pricing of room inventory Greening of hotels and guest rooms

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Trends Security Diversity of the guest Compliance of the ADA Hotel companies are trying to persuade guests to book rooms via the company website instead of an internet broker