1. The Organization and Structure of Lodging Operations
Chapter 5

2. 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

3. Size and Scope
Objective 1

4. 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

5. American Hotel Classifications
Objective 2

6. 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

7. 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

8. 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

9. 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

10. 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

11. European Hotel Classifications
Objective 3

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

13. Organization of American Hotels
Objective 4

14. 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

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

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

17. Organization of European Hotels
Objective 5

18. 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

19. Cooperation between Departments
Objective 6

20. 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

21. 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

22. 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