HOTEL ROOM DIVISION OPERATION

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10/1/2009 1 C H A P T E R 5 Hotel Rooms Division Operation Bring a calculator for this chapter Functions of a hotel Provide lodging accommodations Revenue centers Cost centers Serve and enrich society Create profit for the owners Role of a General Manager Ensure excellent guest service Keep employees happy Oversee operations Increase profit for owners http://www.iseek.org/sv/Careers?id=13000:100102 Qualities of Successful Managers Leadership Attention to detail Follow through People skills Patience Delegate effectively Executive Committee Makes major decisions affecting the hotel Made up of key departments heads: General Manager Director of Human Resources Director of Food & Beverage Director of Rooms Division Director of Marketing & Sales Director of Engineering Director of Accounting Executive Committee Let’s start with Rooms Division!

Transcript of HOTEL ROOM DIVISION OPERATION

Page 1: HOTEL ROOM DIVISION OPERATION

10/1/2009

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CHAPTER

5

Hotel Rooms Division Operation

Bring a calculator for this chapter

Functions of a hotel

Provide lodging accommodations

Revenue centers

Cost centers

Serve and enrich society

Create profit for the owners

Role of a General Manager

Ensure excellent guest service

Keep employees happy

Oversee operations

Increase profit for owners

http://www.iseek.org/sv/Careers?id=13000:100102

Qualities of Successful Managers

Leadership

Attention to detail

Follow through

People skills

Patience

Delegate effectively

Executive Committee

Makes major decisions affecting the hotel

Made up of key departments heads: General Manager

Director of Human Resources

Director of Food & Beverage

Director of Rooms Division

Director of Marketing & Sales

Director of Engineering

Director of Accounting

Executive Committee

Let’s start with Rooms Division!

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Rooms Division

Departments

Front Office

Reservations

Concierge

Guest services

Security

Communications

Housekeeping

Rooms Division Organizational Chart

The Guest CyclePre-arrival

Cashier

Front Desk /

Uniformed service

Night auditor

PMS

Rooms Division Organizational Chart

Let’s look at the responsibilities

of Front Office

Front Office

The hub of the hotel

Responsibilities:

To sell and up-sell rooms

To maintain balanced guest accounts

To offer services (handling mail, faxes, messages, local

and hotel information)

http://www.iseek.org/sv/Careers?id=13000:100103

Front Office

Front Office Manager

Enhance guest services by developing to exceed guest needs

Guest Service Associate

Greet guests as they arrive at the hotel, escort them to the front desk, personally allocate the room, and take the guest and luggage to the room

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Night Auditor

Posts charges

Closes the books (daily)

Balances guest accounts

Completes daily report (hotel occupancy & revenue statistics)

Occupancy Statistics

Occupancy % = Rooms Occupied

Total Rooms Available

Revenue Statistics

Average Daily Room Rate (ADR) is

Total Rooms Revenue

Total Number of Rooms Sold

Lets’ explore “Room rates”

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Source: Hospitality Advisors - Hotel Flash Report Source: Hospitality Advisors - Hotel Flash Report

e.g. Hotel on Oahu

Game

OccupiedRooms

Available Rooms

Occupancy % ADR $ Revenue

13,950 18,476 75.5% $62 $864,900

1255 1,530 82% $188.94 $237,119

7,398 9,734 76% $87 $643,626

12857 18,476 69.6% $76 $977,132

=

x

More practice

OccupiedRooms

Available Rooms

Occupancy % ADR $ Revenue

200 300 66.6% $62 $12,400

750 1,000 75% $200 $150,000

400 500 80% $80 $32,000

450 500 90% $75 $33,750

Property Management Systems (PMS)

Center of “information” processing

Relates to front and back office activities(improve guest service)

Examples of applications:

Room management (front office & housekeeping)

Guest accounting (report)

Check in services (self check-in & out)

Information sharing (among modules)

Internet access (high speed)

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Provides the tools a hotel staff needs for doing their day-to-day jobs

• handling reservations

• checking guests in and out

• assigning rooms and managing room inventory

• accommodating in-house guest needs

• handling accounting and billing

http://www.micros-fidelio.co.uk/products/opera/pms/

Revenue & Yield ManagementRevenue management is used to maximize room

revenue at the hotel Based on supply and demand

Yield management allocates the right type of room to the right guest at the right price

Examines demand for rooms over a period of a few years and

determines the demand for a particular room each night

Rev Par = Room Revenue

Number of Rooms Available Source: Hospitality Advisors - Hotel Flash Report

Source: Hospitality Advisors - Hotel Flash Report

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RevPar

RevPar

$41.3

$150

$64

$67.5

OccupiedRooms

Available Rooms

Occupancy %

ADR $ Revenue

200 300 66.6% $62 $12,400

750 1,000 75% $200 $150,000

400 500 80% $80 $32,000

450 500 90% $75 $33,750

Reservation Department

Headed by the reservations manager

Aim to exceed guest expectations when they make reservations

What information does the hotel need to take a reservation?

Reservation Record

Guest name & address

Telephone number

Group/company name

Person making reservation

Number in party

Special requirements

Expected arrival

Number of nights

Expected departure

Room rate

Reservation type

Guarantee method

Reservartion

Confirmed reservations are made with sufficient time for a confirmation slip to be returned to the client (guest

has a reservation)

• Guaranteed reservations are given when the person making the reservation wishes to ensure that the reservation will be held (hold by credit card / deposit, billed even

if no-show)

Where do Reservations come from?

Internet

First area of guest contact

Sales person

Telephone skills

Central Reservations System (CRS)

Communications or PBX

Management of in-house, guest communications, and emergency center

Profit center

Hotels generally add a 50% charge to all long-distance calls placed from guest rooms

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Guest / Uniformed Service

Headed by a guest services manager

Include:

Door attendants (Hotel’s unofficial greeters)

Bell persons (Escort guests to their rooms, Transport luggage

Concierge

http://www.iseek.org/sv/Careers?id=13000:100015

A Typical day

7:30-8:00am

Stop by the Bell Desk see what’s happening with the bell service

Stop by the Guest Services desk. read the logbook, Daily Revenue report, memos/mail.

Go to office review reports, memos and mail, check & respond email

Debbie Murakami

Outrigger Waikiki, Guest Service Manager

8:30-10:30 a.m. - Guest Services desk

Prepare for the day Review entries from the night before, arrivals for the day.

Handle guests requests e.g. get shuttles/ rental cars;

mainland travel agents calling to order amenities for their in-house clients

early arriving guests trying to check in.

Most Interesting requests:

wrap & mail a huge wooden tiki

prep a honeymooner’s room with candles, champagne & rose petals

Arrange a male flamenco dancer to perform for a guest’s birthday

Talk to returned guests

Trouble shooting guests complaints

Solve problems

If a vendor is not able to come through for a guest, go off property to help (e.g. pick up that birthday cake, duplicate keys or drop off letter)

Administration Write newsletters, work on projects, attend staff meetings,

employee performance appraisals, payroll and schedules.

Spend time with employee

Ends at 5-5:15 p.m.

Concierge Elevates property’s marketable value

Typically in a luxury hotel

Handles guest needs

Should have knowledge of the city

Many speak several languages

Assists guests with restaurant reservations, directions,

tickets to shows, etc.

Housekeeping

Largest department (# people)

Executive keeper’s duties

Leadership (people, equipment, supplies)

Cleanliness & servicing (guest rooms, public

areas)

Operating the department according to

financial guidelines

Keeping records

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Before After

Average:

• 14- 19 rooms per housekeeper

• 20-30 minutes per room

In-House Laundry

Advantages:

24-hour service

Smaller stock of linen

Control over quality of laundered linen

Contract Laundry Service

Advantages:

No maintenance costs (for equipment)

No labor costs (training/staffing)

Lower overhead costs (energy/water)

Fixed projected expense

Security & Loss Prevention

Providing guest safety & loss prevention:

Includes:

Security officers

Equipment (i.e., smoke alarms, key cards, etc.)

Safety procedures

Identification procedures

Daily operations key card control, access and exit from the property

Medium range concerns Advanced planning for VIP arrivals,

Functions involving high levels of activity (parking, exhibits, deliveries, etc.).

Long range procedures financial investments, budgeting for capital investment

(refurbishing rooms, etc.).

Kris LeeHalekulani Hotel Security staff

Example:

Kris’s concept of security is “If you can’t see it, you can’t protect it.”

That’s why security staff are constantly on the move, covering areas inaccessible to camera surveillance, or where presence is believed to be important to guests.

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The Guest CyclePre-arrival

Cashier

Front Desk /

Uniformed service

Night auditor

PMS

Trends

Diversity of workforce

Increase in use of technology

Continued quest for increases in

productivity

Increasing use of revenue

management

Greening of hotels / guest rooms

Security

Diversity of the guest

Compliance of the ADA

Use of websites

In-room technology

Recap

1. Which departments are under Rooms Division?

Front Office, Reservations, Concierge,

Guest services, Security, Communications,

Housekeeping

* Understand the function & importance of each department

2. What role does the Front Desk play?

a. Inventory Control

i. Assign rooms

ii. Market rooms

iii. Upsell rooms

b. Yield Management

i. Upselling

ii. Reservations

iii. Sales

iv. Setting rate

3. Do you know how to calculate the following? Occupancy rate

ADR

RevPar

How are these hotel statistics related?

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Sustainable initiatives

Recycle

Reusable bags

Hybrid car

Conserve energy

Buy Local, In-Season and Organic