Chapter 5 Lodging Operations
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Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 Chapter 5 Lodging Operations
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Chapter 5 Lodging Operations. 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 - PowerPoint PPT Presentation
Transcript of Chapter 5 Lodging Operations
Introduction to Hospitality, Fourth EditionJohn Walker
©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458
Introduction to Hospitality, Fourth EditionJohn Walker
©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458
Chapter 5Lodging Operations
Introduction to Hospitality, Fourth EditionJohn Walker
©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458
After Reading and StudyingThis 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 EditionJohn Walker
©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458
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 EditionJohn Walker
©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458
Functions of a Hotel• Lodging accommodations• Revenue centers• Cost centers• Serve and enrich society• Profit for the owners• Exceed Guest Exceed Guest
ExpectationsExpectations
Introduction to Hospitality, Fourth EditionJohn Walker
©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458
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 EditionJohn Walker
©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458
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 EditionJohn Walker
©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458
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 EditionJohn Walker
©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458
Executive Committee Chart
Introduction to Hospitality, Fourth EditionJohn Walker
©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458
Rooms Division• Front office• Reservations• Housekeeping• Concierge• Guest services• Security• Communications
Introduction to Hospitality, Fourth EditionJohn Walker
©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458
Rooms Division Organizational Chart
Introduction to Hospitality, Fourth EditionJohn Walker
©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458
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 EditionJohn Walker
©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458
Basic Functions of theFront 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 EditionJohn Walker
©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458
The Guest Cycle
Introduction to Hospitality, Fourth EditionJohn Walker
©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458
Duties of aGuest 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 EditionJohn Walker
©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458
Night Auditor• Posts charges• Closes the books
on a daily basis• Balances guest
accounts• Completes daily
report
Introduction to Hospitality, Fourth EditionJohn Walker
©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458
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 EditionJohn Walker
©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458
Hotel Occupancy Statistics
• Occupancy Statistics– Percentage of occupancy = Rooms Occupied Total Rooms Available
Introduction to Hospitality, Fourth EditionJohn Walker
©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458
Hotel Occupancy Statistics
• Occupancy Statistics (cont.)– Double/Multiple Occupancy Percentage =
Total # of Guests - # of Rooms Occupied # of Double Occupied Rooms
Introduction to Hospitality, Fourth EditionJohn Walker
©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458
Hotel Revenue Statistics
• Revenue Statistics– Average Daily Room Rate (ADR) =
Total Rooms Revenue
Total Number of Rooms Sold
Introduction to Hospitality, Fourth EditionJohn Walker
©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458
Property Management Systems (PMS)• PMS
– Computer-based applications
• Reservations management• Rooms management• Guest account management• General management
Introduction to Hospitality, Fourth EditionJohn Walker
©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458
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 EditionJohn Walker
©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458
Reservations• Internet• First area of guest contact• A sales position• Telephone skills • Central Reservations System
(CRS)
Introduction to Hospitality, Fourth EditionJohn Walker
©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458
Reservation Definitions• Confirmed reservation• Guaranteed reservation• Advance deposit/advance payment• No show• 6 pm release
Introduction to Hospitality, Fourth EditionJohn Walker
©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458
Typical Reservation Screen
Introduction to Hospitality, Fourth EditionJohn Walker
©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458
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 EditionJohn Walker
©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458
Guest ServicesUniformed 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 EditionJohn Walker
©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458
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 EditionJohn Walker
©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458
Housekeeping Personnel
Introduction to Hospitality, Fourth EditionJohn Walker
©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458
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 EditionJohn Walker
©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458
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 EditionJohn Walker
©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458
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 EditionJohn Walker
©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458
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
