The Hotel Business Back to Table of Contents. The Hotel Business 2 Chapter 4 The Hotel Business...

The HotelBusinessThe HotelBusiness

Back to Table of Contents

The Hotel BusinessThe Hotel Business

2

Chapter 4


Types of Lodging BusinessesTypes of Lodging Businesses

Hotel OperationsHotel Operations


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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.


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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


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Classification of Facility

Lodging classification is based on four factors:

Section 4.1

Guesttype

Guesttype PricePrice LocationLocation Style and

functionStyle andfunction


Section 4.1

GuestType

Price LocationStyle andFunction

BusinessBusiness

LeisureLeisure

BudgetBudget

MidpriceMidprice

UpscaleUpscale

ResortsResorts

AirportAirport

HighwayHighway

DowntownDowntown

Conferencecenters

Conferencecenters

All suiteAll suite

Extended stayExtended stay

Bed-and-Breakfast(B&Bs)

Bed-and-Breakfast(B&Bs)

SpasSpas

BoutiqueBoutique

VacationProperties

VacationProperties

Retreat centersRetreat centers

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The four categories of guest travel type or stay are:

transient guest an individual traveler with a reservation, staying in a hospitality property for a maximum of 30 consecutive days

Section 4.1

Walk-in guest

Transient guestCorporate guest

Group guest


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The price of a room is based on a number of factors:

Section 4.1

Location of property

Location of room

Amenities

Length of stay

Season

Types of guest

Meals


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Meal plan types include: meal plan a room rate that includes meals

Section 4.1

European Plan (EP)

Continental Plan (CP)

Bermuda Plan (BP)

Modified American Plan (MAP)

American Plan (AP)


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Hotels use yield management to help maximize revenue.

yield management a system of maximizing revenue through adjusting room rates according to demand

Section 4.1


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Calculation tools used in yield management are:

average daily rate (ADR) a rate based on total sales for the day divided by the total number of sold rooms

Section 4.1

Average daily rate (ADR)


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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

Section 4.1

Occupancy percentage (OCC%)


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revenue per available room (revPAR) a rate that reflects a hotel’s revenue per available room

Section 4.1

Revenue per available room (revPAR)


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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


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What are three different types of hotel properties?

What are the two categories of hotel guests?

What are three factors that can determine the price of a room?

1.

2.

3.

Section 4.1

4.14.1


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Hotel Organization

The general manager of a hotel is responsible for both front-of-the-house and back-of-the-house operations.

front of the house (lodging) the area in a lodging facility that guests view, such as the lobby

Section 4.2

back of the house (lodging) the area in a lodging facility where support services take place that guests usually do not view


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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


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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:

Section 4.2

SellingroomsSellingrooms

Maintainingaccounts

Maintainingaccounts

Providingguest services

Providingguest services


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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


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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


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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


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The Front Office

The night auditor is 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

Section 4.2

guest service agent (GSA) a hotel staff member who performs all the functions of a desk clerk/agent, concierge, and valet

Some properties may employ a guest service agent (GSA).


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The Front Office

Guests can often make reservations directly with a property through a centralized reservation system (CRS).

Section 4.2


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The Front Office

The housekeeping department directly affects a guest’s perception of cleanliness, safety, and security at a property.

Section 4.2


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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.

guests or uniformed services staff members in uniforms, including the bell staff, valet, security officers, concierge, and door or garage attendants

Section 4.2


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The Front Office

The concierge position is found at larger properties, often in city or resort locations.

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

Section 4.2


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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


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Systemwide Departments

Larger hotels maintain centralized systems for groups of units.

Employees are classified as line employees and staff employees.

Section 4.2

Line employees are in daily contact with guests.

Staff employees support the front of the house; they do not

interact much with guests.


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Support Staff

Support staff in the back of the house include:

Section 4.2

Engineers

Groundskeepers

Attendants

Sales and marketing staff

Human resources staff

Support Staff

Section 4.2

Engineers

Groundskeepers

Attendants

Sales andMarketing

HumanResources

Oversee the hotel’s physical plant, buildings, and grounds

Maintain and upgrades the exterior of the facility by landscaping the property

Oversee recreational facilities such as pools, tennis courts, and golf courses

Persuades guests to stay at a particular property or chain

Oversees recruiting, selecting, training, and compensating hotel employees

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Support Staff

The sales force of a lodging business may include different types of sales personnel:

Section 4.2

Sales representatives

Technical-support staff

Sales assistants

Telemarketers

Hotel Staffing

Section 4.2

GeneralManager

Food & Beverage

Restaurant Lounge BanquetRoom Service

Kitchen

Food & Beverage

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Hotel Staffing

Section 4.2

GeneralManager

Front Office

UniformedStaff

Reservations Front DeskHouse-keeping

Security

Front Office

Concierge ReservationsManager

FD Manager ExecutiveHousekeeper

Door Attendants Asst. FD Mgr.

Bell Captain FD Clerk

Security Guest ServiceAgent

PBX Operator

Night Auditor

Inspectors

Laundry

Room Attendants

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Hotel Staffing

Section 4.2

GeneralManager

Support Staff

Marketing AccountingHuman

ResourcesEngineering

Support Staff

Sales

Marketing

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Operating an e-tail business on an electronic channel—the Web—can be costly, due to design, delivery, returns, and operating expenses.

Though Many larger dot-com companies crashed in the 1990’s, small stores like Harris Cyclery of West Newton, Massachusetts, actually increase sales using a basic Web site. Today, a third of Harris’s bicycle business rides in on the Web to get hard-to-find parts and personal service.

Describe an e-business’s home page to your class after viewing one through marketingseries.glencoe.com.

Hotels.com books rooms at over 4,500 hotels throughout the world. Similar hotel booking services have made it easier and cheaper for travelers to find accommodations. These Web sites feature photos and descriptions of rooms and amenities. Rating systems help guests know the level of quality they can expect in a particular destination.

Hotels Online

Online reservation services also save travelers the hassle of calling and booking overseas rooms in different languages and time zones.

Section 4.2

For more information, go to marketingseries.glencoe.com.35


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What are three functions of the front office?

What are examples of three uniformed services positions?

What is the difference between line and staff employees?

1.

2.

3.

Section 4.2

4.24.2


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1. Name the factors used to classify lodging facilities.

The factors used to categorize lodging facilities are guest type, price, location, and style of service, and function.

1. Categories used to describe guests by type of stay are business and leisure guests.

2. Business guests are those traveling for business purposes.

3.

continued

Checking Concepts

2. List the categories used to describe types of guests by type of stay.

3. Describe a business guest.


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Checking Concepts

4. Identify three rates hotels use for yield management.

Rates used for yield management are average daily rate (ADR), occupancy percentage (OCC%), and revenue per available room (RevPAR).

4. Properties identified by style and function are all-suite facilities, extended-stay facilities, bed-and-breakfasts, spas, boutique hotels, vacation properties, and retreat centers.

5. The positions in the rooms division are front-office jobs at the front desk, in reservations, housekeeping, guest and uniformed services, and communications.

6.

continued

5. Identify properties by type of style and function.

6. List three positions in the rooms division.


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Checking Concepts

8. Discuss the importance of the sales and marketing staff in the back-of-the-house lodging operations.

Critical Thinking

Staff in uniformed services includes bell staff, valet staff, concierge, and security staff.

7.7. Name the staff in uniformed services.

The importance of the sales and marketing staff is that they persuade guests to stay at a particular property or chain. Accept all reasonable answers that demonstrate an understanding of sales and marketing.

8.

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