The Hotel Business Back to Table of Contents

The Hotel Business Back to Table of Contents

Chapter 4 The Hotel Business Types of Lodging Businesses Hotel Operations 2

The Hotel Business Chapter Objectives Identify the types of hotel classifications. Differentiate between business and leisure guests. Explain the importance of yield management. Identify the front-office positions in the rooms division of a hotel. Describe the guest services in the hotel industry. Identify the support-staff positions in the back house of a hotel. 3

The Hotel Business Lodging Businesses According to the American Hotel and Lodging Association, the United States has more than 47, 040 properties, generating 2 million jobs and $102. 6 billion in sales. Section 4. 1 4

The Hotel Business Classification of Facility Lodging classification is based on four factors: Guest type Section 4. 1 Price Location Style and function 5

Classification of Facility Guest Type Price Location Style and Function Business Budget Resorts All suite Leisure Midprice Airport Extended stay Upscale Highway Bed-and-Breakfast (B&Bs) Downtown Spas Conference centers Boutique Vacation Properties Retreat centers Section 4. 1 6

The Hotel Business Classification of Facility The four categories of guest travel type or stay are: Walk-in guest Transient guest Corporate guest Group guest Section 4. 1 transient guest an individual traveler with a reservation, staying in a hospitality property for a maximum of 30 consecutive days 7

The Hotel Business Classification of Facility The price of a room is based on a number of factors: Location of property Location of room Amenities Length of stay Section 4. 1 Season Types of guest Meals 8

The Hotel Business Classification of Facility Meal plan types include: meal plan a room rate that includes meals European Plan (EP) Continental Plan (CP) Bermuda Plan (BP) Modified American Plan (MAP) American Plan (AP) Section 4. 1 9

The Hotel Business Classification of Facility Hotels use yield management to help maximize revenue. Section 4. 1 yield management a system of maximizing revenue through adjusting room rates according to demand 10

The Hotel Business Classification of Facility Calculation tools used in yield management are: Average daily rate (ADR) Section 4. 1 average daily rate (ADR) a rate based on total sales for the day divided by the total number of sold rooms 11

The Hotel Business Classification of Facility Calculation tools used in yield management are: Occupancy percentage (OCC%) Section 4. 1 occupancy percentage (OCC%) a percentage calculated daily and based on the number of rooms sold as a percentage of the total number of rooms available 12

The Hotel Business Classification of Facility Calculation tools used in yield management are: Revenue per available room (rev. PAR) Section 4. 1 revenue per available room (rev. PAR) a rate that reflects a hotel’s revenue per available room 13

The Hotel Business For All Types of Travelers Lodging accommodations come in all types and sizes to suit the needs of many kinds of guests. Travelers consider price, location, and style of a property when making reservations. Section 4. 1 14

The Hotel Business 4. 1 1. What are three different types of hotel properties? 2. What are the two categories of hotel guests? 3. What are three factors that can determine the price of a room? Section 4. 1 15

The Hotel Business Hotel Organization The general manager of a hotel is responsible for both front-of-the-house and back-of-the-house operations. Section 4. 2 front of the house (lodging) the area in a lodging facility that guests view, such as the lobby back of the house (lodging) the area in a lodging facility where support services take place that guests usually do not view 16

The Hotel Business The Rooms Division The largest revenue center of a lodging facility is the rooms division. The rooms division includes the front desk, reservations, housekeeping, guest or uniformed services, and communications. Section 4. 2 17

The Hotel Business The Front Office From a guest perspective, the front office is considered the heart and soul of any property. The primary functions of the front-desk staff are: Selling rooms Section 4. 2 Maintaining accounts Providing guest services 18

The Hotel Business The Front Office The sales division or the reservations staff sells rooms during the day. In the evening the front-desk staff assumes this responsibility. Section 4. 2 19

The Hotel Business The Front Office Many lodging facilities have property management systems (PMS). Sophisticated information technology allows the front desk to provide better service while also reducing costs for the property. Section 4. 2 20

The Hotel Business The Front Office The most important task of the front-desk staff is providing exemplary guest service. During check-in, guests contact the front desk with questions, requests, and special needs. Section 4. 2 21

The Hotel Business The Front Office The night auditoris a front -of-the-house accounting position. night auditor the hotel staff member who does the night audit and balances the guests’ accounts each evening Some properties may employ a guest service agent (GSA) a hotel staff member who performs all the functions of a desk clerk/agent, concierge, and valet Section 4. 2 22

The Hotel Business The Front Office Guests can often make reservations directly with a property through a centralized reservation system (CRS). Section 4. 2 23

The Hotel Business The Front Office The housekeeping department directly affects a guest’s perception of cleanliness, safety, and security at a property. Section 4. 2 24

The Hotel Business The Front Office Guest or uniformed services staff members wear the official uniform of the hotel and are the first people whom guests approach upon arrival at the property. Section 4. 2 guests or uniformed services staff members in uniforms, including the bell staff, valet, security officers, concierge, and door or garage attendants 25

The Hotel Business The Front Office The concierge position is found at larger properties, often in city or resort locations. Section 4. 2 concierge a hotel staff member who helps guests make arrangements for transportation, restaurant reservations, event reservations, and entertainment tickets, and advises guests about activities in the area 26

The Hotel Business The Front Office The communications department of a hotel is another revenue center. In-house communications can include voice mail, fax service, e-mail, message centers, and pagers. Section 4. 2 27

The Hotel Business Systemwide Departments Larger hotels maintain centralized systems for groups of units. Employees are classified as line employees and staff employees. Line employees are in daily contact with guests. Section 4. 2 Staff employees support the front of the house; they do not interact much with guests. 28

The Hotel Business Support Staff Support staff in the back of the house include: Engineers Groundskeepers Attendants Sales and marketing staff Human resources staff Section 4. 2 29

Support Staff Engineers Oversee the hotel’s physical plant, buildings, and grounds Groundskeepers Maintain and upgrades the exterior of the facility by landscaping the property Attendants Oversee recreational facilities such as pools, tennis courts, and golf courses Sales and Marketing Persuades guests to stay at a particular property or chain Human Resources Oversees recruiting, selecting, training, and compensating hotel employees Section 4. 2 30

The Hotel Business Support Staff The sales force of a lodging business may include different types of sales personnel: Sales representatives Technical-support staff Sales assistants Telemarketers Section 4. 2 31

Hotel Staffing Food & Beverage General Manager Food & Beverage Restaurant Section 4. 2 Lounge Banquet Room Service Kitchen 32

Hotel Staffing Front Office General Manager Front Office Uniformed Staff Reservations Front Desk Housekeeping Concierge Reservations Manager FD Manager Executive Housekeeper Door Attendants Asst. FD Mgr. Bell Captain FD Clerk Security Guest Service Agent Security Inspectors Room Attendants Laundry PBX Operator Night Auditor Section 4. 2 33

Hotel Staffing General Manager Support Staff Marketing Accounting Human Resources Engineering Sales Marketing Section 4. 2 34

The Hotel Business Hotels Online Operating an e-tail business on an electronic channel—the Hotels. com books rooms at over 4, 500 hotels throughout the Web—can hotel booking to design, delivery, returns, and world. Similar be costly, due services have made it easier and operating expenses. cheaper for travelers to find accommodations. These Web sites feature photos and descriptions of rooms and amenities. Though Many larger dot-com companies crashed they Rating systems help guests know the level of quality in thecan 1990’s, small stores like Harris Cyclery of West Newton, expect in a particular destination. sales using a basic Web Massachusetts, actually increase site. Today, a third of Harris’s save travelers the hassle of Online reservation services also bicycle business rides in on the and to get hard-to-find parts in personal service. calling. Web booking overseas roomsanddifferent languages and time zones. Describe an e-business’s home page to your class after viewing one through marketingseries. glencoe. com. For more information, go to marketingseries. glencoe. com. Section 4. 2 35

The Hotel Business 4. 2 1. What are three functions of the front office? 2. What are examples of three uniformed services positions? 3. What is the difference between line and staff employees? Section 4. 2 36

The Hotel Business Checking Concepts 1. Name the factors used to classify lodging facilities. 2. List the categories used to describe types of guests by type of stay. 3. Describe a business guest. continued 3. Business guests 2. Categories used to 1. The factors used to are those lodging describe guests by categorizetraveling for business type of stay guest facilities are purposes. business and type, price, leisure guests. location, and style of service, and function. 37

The Hotel Business Checking Concepts 6. The positions yield 5. Properties forin the 4. Identify three rates hotels 4. Rates usedidentified management are rooms division by style and are use for yield management. 5. Identify properties by type of style and function. 6. List three positions in the rooms division. continued average daily rate front-office jobs function are all- at (ADR), occupancy the front desk, suite facilities, in percentage reservations, extended-stay (OCC%), bed-andhousekeeping, facilities, and revenue per spas, guest and breakfasts, available room uniformed boutique hotels, (Rev. PAR). services, and vacation properties, communications. and retreat centers. 38

The Hotel Business Checking Concepts 7. Name the staff in uniformed services. Critical Thinking 8. Discuss the importance of the sales and marketing staff in the back-of-the-house lodging operations. 8. The in uniformed 7. Staffimportance of the sales and services includes marketing valet is bell staff, that they persuade concierge, and guests tostaff. at a security stay particular property or chain. Accept all reasonable answers that demonstrate an understanding of sales and marketing. 39

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The Hotel Business 41