1. Hotel organisation TAFE

2. On completion of this unit, the students will able to :
Topics
On completion of this unit, the students will able to :
Explain what a mission statement
Describe how goals, strategies, and tactics are used to accomplish a hotel’s mission.
Create organization charts depicting the lines of responsibility among positions, departments, and divisions within a hotel.
Distinguish front-of-the-house areas from back-of- the-house areas and revenue centers from support centers.
TAFE

3. Topics
5. Describe the functions performed by departments and positions within the rooms division.
6.  Identify the functions performed by other divisions and departments within a full-service hotel.
7.  Describe the organization of the front office department including traditional work-shifts, alternative scheduling practices, and the purpose of job descriptions and job specifications.
TAFE

4. Mission Statement
A Mission is the unique purpose that sets one hotel or motel company apart from others.
The purpose of the organization and outlines the kinds of activities performed for guests.
Moreover, the mission statement gives meanings and directions to hotel policies.
In fact, when faced with any problem, confusion, or strategic decision to be taken, managers shall, always, make sure that their decisions match the mission statement.
TAFE

5. To define its mission a company should address the classic questions: What is our business? Who is the customer? What is of value to the customer? Successful companies continuously raise these questions and answer them thoughtfully and thoroughly.
TAFE

6. Mission statement (continued)
A hotel’s mission statement should address the interests of its three main groups:
Guests
Management
Employees.
For example: “To provide the finest facilities and services in the market while providing a good place to work for its employees and a reasonable return on investment to the owners.
TAFE

7. To achieve our mission we must have the followings:-
Cont.
To achieve our mission we must have the followings:-
Goals: Observable, measurable activities and standards to achieve mission.
Strategy: A method by which a department and division plans to achieve its goals.
Tactics: The day to day operating procedures that implement the strategy
After the preparation of the mission statement, at least prior to any financial year, managers shall, bearing in mind the company's mission statement, come up with company's global objectives, and then break them down to departmental goals and objectives.
TAFE

8. Examples
Goal: Operate the front desk efficiently and courteously so that guests register within 2 minutes of arrival.
Strategy: Pre-register guests with reservation guarantees as room become available from the housekeeping.
Tactic: Pre-print registration cards for arriving guests and separate the cards of all gusts with a reservation guarantee.
TAFE

9. And representation of relationships between positions
HOTEL ORGANIZATION
In order to carry out its mission, global and departmental goals and objectives, every company shall build a formal structure depicting/outlining different hierarchy of management, supervision, and employee (staff) levels
Outlines the responsibility among positions, departments, and divisions within a hotel.
And representation of relationships between positions
TAFE

10. An Organisational Chart
TAFE

11. continued
There are two types of relationships that might exist between any two functions at any organization chart. These are:
Solid Lines: (i.e.: ) This kind of relationship shows Direct Line Accountability. To illustrate, if position A and B are linked with a solid line, it means (for example) that A shall report to B, that B shall tell A what to do, when to do, and how to it. Lastly, B shall be liable (i.e. responsible) for A.
Dotted Lines: (i.e.  ) This kind of relationship entitles both positions linked with dotted lines to have a high degree of Cooperation and Communication but not a direct line accountability. Usually in the hotel
TAFE

12. · Safety Basic Guest Needs · Security · Cleanliness · Comfort
· Safety
· Security
· Cleanliness
· Comfort
· Courteous, professional, friendly service
· Well-maintained facilities and equipment
TAFE

13. The hotel is made of divisions: · Food and beverage Division
Hotel Divisions
The hotel is made of divisions: 
· Rooms Division
· Food and beverage Division
· Sales and marketing Division
· Account & finance Division
Engineering and maintenance
· Security
· Human resources
TAFE

14. · Spa and Treatment centres · Retail stores
Revenue Centers
· Front office
· Food and beverage
· Spa and Treatment centres
· Retail stores
TAFE

15. · Engineering and maintenance · Human resources · Security
Support Centers
· Housekeeping
· Accounting
· Engineering and maintenance
· Human resources
· Security
TAFE

16. Rooms Division Departments
· Front office
· Reservations
· Communications
· Concierge
· Housekeeping   
Note: In many mid-size and larger properties, reservations may be part of the sales department.
TAFE

17. Room Division Organisational Chart
TAFE

18. Front Office The most visible department in the hotel.
Front office staff have more contact with guests.
Front office the focal point of activities and prominently located in the hotel’s lobby.
Front office serves as the control centre for guest requests and complaints.
It plays a role as an emergency operational place.
TAFE

19. Front office functions
The Front Office organization chart shall be designed according to Functions.
Doing so not only enhances the control the Front Office has over its Operations, but also provides guests with more specialized attention.
Such a division according to functions, however, is not practical in middle and small size hotels due to the fact that these very hotels don't possess enough and sufficient resources to ensure the existence of at least 3 jobholders (i.e. one for each shift) for each job position
Therefore, in middle size hotels, a front office receptionist might be responsible for more than one work position
TAFE

20. Front office positions
Typical functions and positions under the Rooms Division Department:
Front Desk receptionist: Registers guests, and maintains room availability information
Cashier: Closes guest folios, and properly checks out guests
Night Auditor: Perform auditing, and prepares daily reports to management (ex: Occupancy Report and Revenue Report)
TAFE

21. continued
Telephone Operator: Manages the Switchboard and coordinates Wake-up Calls
Reservation Agent: Responds to Reservation Requests and creates Reservation Records
Concierge: Handles Guest Luggage, escorts Guests to their Rooms, and assists guests for any bit of information requested
TAFE

22. · Coordinate guest services/handle complaints Provide information
Front Office Functions
· Sell guestrooms
Assign guestrooms
· Register guests
· Coordinate guest services/handle complaints
Provide information
· Track room status information
· Monitor guest accounts/credit
· Produce guest account statements
· Complete financial settlement
TAFE

23. Reservation & Communication dept.
This could be the guests’ first contact with your establishment.
Responsible to provide friendly, professional service the guest can expect from the establishment.
Responsible for internal and external communication between the establishment and the guests.
Responsible for taking messages accurately for both internal and external customers- wake up calls for guest and all corresponding follow up actions.
TAFE

24. Reservation & Communication dept. (continued)
Responsible for communications between the hotel staff/other department
The first contact for in times of danger/emergency.
Responsible for offer information of the hotel as well as outside surrounding area.
Reservations:
The reservation sales agent (RSA) is responsible for accepting reservation from telephone, fax , letter, and direct from people who walk in to the hotel to make reservation.
TAFE

25. Answering the guest accommodation inquiries.
continued
Answering the guest accommodation inquiries.
Selling the hotel guest rooms.
Accepting guest requests for accommodation ( room type, arrival date, method of payment.
Explaining the hotel facilities and hotel policy.
Recording the reservation information accurately
Maintaining accurate internal records ( to achieve 100% occupancy)
Assisting in forecasting / staffing and other pre arrival activities.
Preventing overbooking of hotel guest room.
TAFE

26. · Valet parking attendants · Transportation personnel · Concierge
Concierge Services Staff
· Bell attendants
· Door attendants
· Valet parking attendants
· Transportation personnel
· Concierge
TAFE

27. Food and beverage Division
According to U.S. Lodging statistics, F&B Department constitutes the second largest revenue generator of a typical hotel with an average of 23.1 for Food sales, and 8.6 % for Beverage sales. In a five-star hotel, Food and Beverage outlets might have the following forms:
 Room Service/Quick Service
 Specialty Restaurants
 Coffee Shops
 Bars
Lounges
 Clubs
 Banquets/Catering Functions  Wedding, Birthdays…
TAFE

28. CONT.
Australia's 5,891 accommodation businesses generated $9.9 billion in income during , according to figures released today by the Australian Bureau of Statistics (ABS). The main sources of income for these businesses, which range from hotels to bed and breakfast establishments, included takings from accommodation (66%); meals (14%), and sales of liquor and other beverages (6%).
TAFE

29. Sales and marketing Division
A typical hotel should usually have Sales & Marketing division. However, if the staff size, volume business, hotel size, expected group arrivals is low enough, the hotel might have marketing staff placed under the reservation department (i.e. No need for a Sales & Marketing Division).
A typical Sales & Marketing Division is composed of four different departments:
Sales
Convention Services
Advertising
Public Relations
TAFE

30. Pays outstanding invoices Distributes unpaid statements
Accounting Division
The Accounting Division monitors the financial activities of the property. Some of the activities that are undertaken in the Accounting Division are listed below:
Pays outstanding invoices
Distributes unpaid statements
Collects amounts owed
Processes payroll
Accumulates operating data
Compiles financial reports
Makes bank deposits
Secures cash loans
Performs other control and processing functions
TAFE

31. Engineering and Maintenance Division
This very department maintains the property's structure and grounds as well as electrical and mechanical equipment.
Some hotels might have this very division under different names, such as maintenance division, property operation and maintenance department…
TAFE

32. Some of the functions of the security division are listed below:
Security division personnel are usually screened from in-house personnel, security officers or retired police officers, across certain physical skills, and prior experience.
Some of the functions of the security division are listed below:
Patrols the property
Monitors supervision equipment
Ensures safety and security of guests, visitors, and employees
TAFE

33. Human resources Division
Some of the duties of the human resources division are listed below:
Responsible for external & internal recruitment
Calculates employees' salaries, compensation, and tax withholding…
Administrates employees' paperwork, monitors attendance…
Maintains good relations with Labor Unions
Ensures employees' safety and working conditions
TAFE

34. Other Divisions
All the above mentioned departments and/or divisions should exist in a typical five-star hotel, however there might be some revenue generators that are specific to certain hotels but not existing in others. Below is a list of some possible extra or other divisions that might exist in a hotel:
Retail Outlets (i.e.: Shops rented to outsiders or managed by the hotel)
Recreation Facilities (ex: Fitness Center, Tennis Courts, and Cinema Saloons…)
Conference Centers
Casinos
TAFE

35. Work shifts
Work Shift:
The Front Office Manager shall schedule his/her employees according to seasonality, business volume, and available staff in hand
The most commonly used scheduling is the Traditional Scheduling, which assumes that every employee shall work 40 Hours per Week. Moreover, the hotel shall ensure a 3 shifts per day, each of which lasts for 8 hours. A possible example to traditional scheduling is shown below:
TAFE

36. Example  Day Shift 7 a.m. - 3 p.m.  Evening Shift 3 p.m. - 11 p.m.
 Night Shift p.m. - 7 a.m.
TAFE

37. Work hours
Flexible Work Hours or Flextime: This kind of alternative scheduling entitles that employees might start work, for example, one hour earlier, just to leave again one hour earlier.
Compressed Work Schedule: Employees, instead of working 5 days per week, 8 hours per day, might work 4 days per week, 10 hours per day. Therefore, compressed work scheduling means working all the 40 hours per week in less than the standard 5 days per week.
Job Sharing: This kind of scheduling entitles that two or more part-timers occupy the job of one full timer.
TAFE

38. Job description
Job description lists all tasks of a work position. it outlines reporting relationships, responsibilities, working conditions, equipment and materials to be used.
All job descriptions shall be tailored and customized to reflect the needs of each single hotel property, and work position.
Moreover, job descriptions shall be task-oriented rather employee-oriented, which means that hotels shall try to search for employees who can fit their job descriptions, not design jobs to fit the skills of certain job applicants.
TAFE

39. · Evaluate job performance · Train/retrain employees
Job Descriptions
Job Descriptions are used for following :
· Evaluate job performance
· Train/retrain employees
· Avoid duplication of duties
· Ensure tasks are performed
. Determine staffing levels
TAFE

40. Job Specification Factors
· A list of the personal qualities, skills and traits needed to successfully perform the tasks outlined by a job description.
Formal education
· Work experience
· General knowledge
· Previous training
· Physical skills
· Communication ability
· Equipment skills
TAFE

41. · Professional demeanor (behaviour)
Front Office Job Specifications
· Professional demeanor (behaviour)
· Congenial personality
· Helpful attitude
· Flexibility
· Well-groomed appearance
TAFE

42. Front Office Terminologies
Week (2)
Front Office Terminologies
TAFE

43. Front Office terminology
Occupied: A guest is currently registered to the room.
Complimentary/FOC: The room is occupied, but the guest is assessed no charge for its use.
Stay over: The guest is not expected to check out today and will remain at least one more night.
On-change: The guest has departed, but the room has not yet been cleaned and readied for re-sale.
Do Not Disturb: The guest has requested not to be disturbed.
TAFE

44. continued
Sleep-out: A guest is registered to the room, but the bed has not been used.
Skipper: The guest has left the hotel without making arrangements to settle his or her account.
Sleeper: The guest has settled his or her account and left the hotel, but the front office staff has failed to properly update the room’s status.
Vacant and ready: The room has been cleaned and inspected and is ready for an arriving guest.
TAFE

45. continued
Out-of-order: The room cannot be assigned to a guest. A room may be out-of-order for a variety of reasons including the need for maintenance, refurbishing, and extensive cleaning. The room is taken out from the inventory.
Lockout: The room has been locked so that the guest cannot re-enter until a hotel official clears him or her.
TAFE

46. House Limit: A credit limit established by the hotel.
Terminology
Due out: The room is expected to become vacant after today’s checkout time.
Checkout: The guest has settled his or her account, returned the room keys, and left the hotel.
Late Check-out: The guest has requested and is being allowed to check out later than the hotel’s standard check-out time. 
House Limit: A credit limit established by the hotel.
TAFE

47. SOB: Source of Business
Terminology
Late Charge: A transaction requiring posting to a guest account that does not reach the front office system for posting until after the guest has checked out./
( The guest had checked out but there are charges to be charged to his account)
Registration Card: A printed form for a registration record, a legal document between the guest and the hotel
MOP : Method of payment
FOC: Free of Charge
SOB: Source of Business
TAFE

48. Book: To sell or reserve rooms ahead of time.
Terminology
Voucher: A Document detailing a transaction to be posted: used to communicate information from an unconnected point of sale to the front office system.
Block: An agreed-upon number of rooms set aside for members of a group planning to stay at a hotel.
Book: To sell or reserve rooms ahead of time.
Cancellation hour: The hour after which a property may release for sale all unclaimed non-guaranteed reservations, according to property policy.
TAFE

49. FIT: Free independent traveler, a traveler who is not part of group.
Terminology
No Show: A guest who made a room reservation but did not register or cancel. .
FIT: Free independent traveler, a traveler who is not part of group.
Floor limit: A limit a assigned to hotels by credit card companies indicating the maximum amount in credit card charges the hotel is permitted to accept from a card member without special authorization.
TAFE

50. Walk in: A guest who arrives at a hotel without a reservation
Terminology
Due-out: Guests expected to check out on a given day who have not yet done so.
PIA :( Paid in advanced) A guest who pays his or her room charges in cash during registration or reservation.
Rack Rate: The standard rate established by a hotel for a particular category of rooms.
Walk in: A guest who arrives at a hotel without a reservation
Walking/bump: turning away a guest who has reservation because of a lack of rooms.
TAFE

51. Room rate: The price a hotel charges for a overnight accommodation.
Terminology
Room rate: The price a hotel charges for a overnight accommodation.
Log book: A journal in which important front office events and decisions are recorded for reference during subsequent shifts.
Registration Card: Legal document sign between a hotel and its guest and it is also a collection of important guest information.
TAFE

52. Guest Folio: It is a record of the charges incurred.
Terminology
Guest Folio: It is a record of the charges incurred.
POS: Point of sale systems, it allows guest account transactions to be quickly transmitted from remote revenue centers to guest account.
TAFE

53. CRC: Central reservation centre.
Terminology
Cancellation hour: The hour after which a hotel may release for sale all unclaimed non-guaranteed reservation according to hotel policy.// 6 PM release
CRC: Central reservation centre.
GDS: Global Distribution system. (It is a distribution channel for reservations that provides worldwide distribution of hotel reservation information and allows selling of hotel reservation around the world.)
Ledger: is a summary grouping of accounts.
Account Receivable: Money owned to the hotel
TAFE

54. Terminology
Guest Ledger: The set of guest account that correspond to registered hotel guests.
City Ledger: The non-guest ledger. (The guest account is not settled in full at check out and the guest’s folio balance is transferred from the guest ledger to city ledger for the account dept. to collect.)
Cash Bank/Float: is an amount of cash assigned to a receptionist so that he/she can handle the various transactions during the particular work shift.
Cut off time: The hour usually 6pm after which a hotel may release for sales all unclaimed non-guaranteed reservations with an arrival time prior to 6pm.
TAFE

55. Overstay: A guest who stays on after their indicated departure date.
Terminology
Overstay: A guest who stays on after their indicated departure date.
Stay over: A guest not checking out today and will remain at least one more night.
Tariff: Charge levied for accommodation, merchandise or services rendered.
TAFE

56. ROOM TYPE DEFINITIONS
Week 2
TAFE

57. Single: A room assigned to one person. May have one bed
ROOM TYPE DEFINITIONS
The following room type definitions are common throughout the lodging industry:
Single: A room assigned to one person. May have one bed
Double: A room assigned to one person or two peoples. May have one bed
Triple: A room assigned to three people. May have two or more beds.
TAFE

58. Quad: A room assigned to four people. May have two or more beds.
ROOM TYPE DEFINITIONS
Quad: A room assigned to four people. May have two or more beds.
Queen: A room with a queen-size bed. May be occupied by one or more people. A bed approximately 60 inches by 80 inches.
King: A room with a king-size bed. May be occupied by one or more people. 78” X 80”
Twin: A room with two twin beds. May be occupied by one or more people.
Double-double: A room with two double (or perhaps queen) beds. May be occupied by one or more persons.
TAFE

59. ROOM TYPE DEFINITIONS
Studio: A room with a studio bed-a couch, which can be converted into a bed. May also have an additional bed.
Mini-suite or Junior suite: A single room with a bed and a sitting area. Sometimes the sleeping area is in a bedroom separate from the parlor or living room.
Suite: A parlor or living room connected to one or more beds.
Connecting rooms: Rooms with individual entrance doors from the outside and a connecting door between. Guests can move between rooms without going through the hallway.
TAFE

60. Adjoining rooms: Rooms with a common wall but no connecting door.
ROOM TYPE DEFINITIONS
Adjoining rooms: Rooms with a common wall but no connecting door.
Adjacent rooms: Rooms close to each other, perhaps across the hall.
Handicap Room : A room designed with special features to cater for the handicapped guest.
TAFE

61. Room Types
These pictures are taken from Swissotel Sydney
TAFE

62. King Size
TAFE

63. King Size/ Westin Hotel Sydney
TAFE

64. Double Double (Twin)
TAFE

65. Suite
TAFE

66. Junior Suite
TAFE

67. Kids Room
TAFE