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Management and
Operation
CHAPTER 1
HOTELS
PAST AND PRESENT
Historical Perspective
• The history of lodging can be traced back to the civilizations of Sumaria
and Ancient Egypt. Indeed, the need for a place to stay away from home is
as old as the first nomadic traveler.
• Hotel Garni - is the Anglicized version of the French which translate into
“Large, Furnished Mansion.”
• English Inns – rented but individual sleeping rooms.
• Colonial Inn – regularly offered large rooms with several bed inside.
OWNER-MANAGED
• The owner has hired additional (Non-Family) Personnel
to help run the property. The hotel is not chain affiliated
MANAGEMENT CONTRACT
• Independently owned hotels that affiliate themselves with a
chain maintains a high level of control as the chain operates
the hotel on the owner’s behalf.
INDEPENDENT
• The owner has no role in Management of Day to Day
Operations. An independent group of managers are
responsible to the owner for the hotels performance. The
hotel is not chain affiliated.
FRANCHISED
Sleeping rooms
Meeting/function space
Outlets/ancillary revenue sources.
SLEEPING ROOMS
- Is traditionally the main product of any hotel.
- Is defined as one of these accommodation units.
MEETING/FUNCTION SPACE
- Selling the space for a specified period. These function rooms
are not sold as much as they are rented. The proceeds from
renting of these rooms is called room rental.
- Providing the food and beverage service in these rooms. This
revenue is called banquet or catering revenue.
OUTLETS/ANCILLARY REVENUE
SOURCES
- Is defined as a food and beverage of point sale. Restaurants,
bars, lounges, room service and other outlets can provide a
hotel with significant revenue sources.
ROOM COST
- It cost the hotel to keep a room up and running in relation to
what that room is sold for the average guest.
FOOD COST
- Is defined as the cost of a particular food item in relation to
the price for which it is sold.
SIMPLEST WAY
- The food cost percentage is the percentage of the profit taken
up by the actual cost of the item.
HOTEL
CLASSIFICATION
• On the history by identifying the criteria by which hotel are classified.
• Identifying hotels by standards criteria.
• A single criterion that crowd sufficiently identify all the hotels in the
world.
Generally accepted criteria for identifying hotels are based on three separate
measurements:
Hotels size
Location
Product type
Hotel Sizes
- Modern hotels comes in myriad sizes and shapes.
It is difficult to compare or understand the differences in hotel
without establishing a standard size classification for the
industry.
Small–Size Hotel
May have one front office manager to over see all front employees.
Large–Size Hotel
May have a front office manager as well, but reporting to him or her
One or two assistant front office managers several front desk managers,
valet manager, concierge manager, PBX Manager, bell captain, parking
garage manager, numerous supervisors and so on.
Hotel Location Classifications
Downtown
Resort
Airport
Suburban
TARGET MARKET
Target marked can be inherently tied to a product
type or specifically designated by a marketer as a
new focus.
Target market is compromised of those consumers
wanting a different type of hotel room.
HYBRID MARKET
Group Rooms
Originate from reservations that are made to bring more than one
guest into the hotel
Involve a series of bookings that correspond to specific functions.
These function can be conventions, meetings or other events held
or nearby.
Group rooms are often offered at lower rates. They can be booked
fair in advance are sought after.
The group sales team may reduce the room rate offered to a group
in exchange for the groups contribution to the hotels overall base
rooms.
Transient Rooms
ROOM CONFIGURATIONS
Look beyond the number of people
Characterize the physical make-up of the guest room
Room configurations look at differences in guest rooms within a
particular hotel
Only identify the room itself.
Incrementally Configurations
Called upgrades, allow the hotel increased room revenue
Upgrade are offered to VIPs or regular, loyal guest.
Standard Configuration
Is defined as the room configuration that makes up the majority of
the sleeping rooms at a particular hotel.
Hospitality marketing executives have begun a trend to refer to the
standard configuration rooms as “deluxe” or superior.
Standard configuration can be thought of as the run of house (ROH)
the run-of-house rooms are understood to be the greatest number
of available rooms.
Enhanced Configuration
JR. Suite
The smallest room in the suite configuration. It is often marginally larger
than the standard room.
Corner Suite
A suite that is located in the corner of the hotel building itself. This suite
often takes up the same area that two standard rooms would.
Bi-Level Suite
Also takes up more square footage than standard rooms. Instead of
taking the horizontal square footage of the corner suite, they take
up the vertical area of two rooms. These suites span two floors or
more to create very high ceilings.
HOSPITALITY SUITE
Intended to be more than a sleeping room “Hospitality Suites”
“Hospos” as they are often called are intended to entertains groups
of people. They may include a kitchen or bar area.
PRESIDENTIAL SUITE
Sometimes called the Chairman’s Suite or the Royal Suite. This suite is
understood to be the best room in the hotel. It must be the largest room
and typically has all the best amenities and services the hotel can offer.
It will always carry the highest rack room rate in the hotel as well but this
suite is a very effective upgrade hence it is rare to change full price for
this suite. This suite can be a very good incentive for large group
bookings when offered complimentary or as an upgrade to the group for
their VIPs group booking when offered complimentary or as an upgrade.
ROOM NUMBERING
Each floor designates the first portion of the room number. Rest of the
room number is sequentially assigned on that floor.
All rooms on the third floor begin with 3 and so on. The odd numbers are
on one side of the floor. Even numbers on the side.
13th floor is omitted in the room count. The hotel has 13 or more floors.
Due the superstition of the number 13 is being unlucky. Many hotels skip
room number 13 altogether.
ROOM STATUS RECONCILLIATION
Room status reconciliation is defined as ensuring that rooms are
properly designated by their current status and assigned a new
station as it changes.
Room status categories/designations are grouped by the guest room’s
state of occupancy
The most commonly used room status code are occupied, vacant, dirty,
clean, ready and out of order
STATE OF OCCUPANCY
Occupied – applies to a room that has been assigned to a guest and that
guest has checked in
Vacant – the guest has checked out of the room
Ready – room is available for new occupancy
STATE OF EXCEPTION
Out of order – room was removed from inventory for a specific reason.
The status of guest room requires determining its “readiness” for new
occupancy
ROOM STATUS CODES
Status Code Meaning
Vacant/Ready Available for sale. A “V/R” room status is the only status a room can be
sold in.
Vacant/Clean Cleaned room, not yet inspected. All sleeping rooms are cleaned by a
housekeeper and then inspected by a supervisor or manager to ensure
it is ready for sale. These inspectors then change the code from “V/C”
to “V/R”
Vacant/Maintenance A “V/M” room has been taken out of inventory for some reason. This is
the code assigned to out-of-order rooms.
Vacant/Dirty Guest checked out, not serviced by housekeeping yet. “V/D” codes take
top priority in housekeeping, as they must be readied for resale.
Occupied/Dirty Guest currently occupies the room, the night has passed, but room has
not yet been serviced by housekeeping.
Occupied/Clean Guest currently occupies the room, and room has been serviced by
housekeeping. Typically, there is no inspection for rooms cleaned
during the length of an individual guest’s stay. The expectation is that
all generally easier to cleaned well, but an occupied room is generally
easier to clean than one from which the guest has checked out.
CHAPTER 5
HOTEL
ORGANIZATION
HOTEL ORGANIZATION
The staffing and deployment within hotels can differ from property to
property. Many factors go into determining the organizational make up
of a hotel at the most basic level, a hotel will be staffed based on the
following criteria:
Room Division
Food and Beverage
Accounting
Human Resources
Engineering
Sales/Marketing and Catering
A variety of responsibilities and duties exist within each department.
All these departments rely on each other to provide the best product.
ROOMS DIVISION
Concierge
Tends to special guest needs of any sort
PBX
Manages communications into and out f the hotel
HOUSEKEEPING
RESERVATIONS
Reservations department strives to books individual reservations in
conjunction with group sales to maximize room revenue.
Is also referred to as transient room sales.
Reservation have the first contact with most guests in that they
communicate with them before they actually arrive.
NIGHT AUDIT
Night Audit team reconciles the hotel’s daily financial transactions and
other activities for reporting purposes.
Due 24 hours nature of hotel operations this department assumes some
front office duties, such as management of the front desk at night.
Kitchen(s)
Restaurant(s)
Lounge/Bar(s)
Room Service
Credit
Account Receivable
Accounts Payable
Night Audit
Credit
Is extended to individuals and groups based on certain present criteria
May be extended to certain guests and groups, so the front desk and
sales/catering must understand the role of accounts receivable.
Account Receivable
Tracks the revenues due the hotel
Account Payable
Manages the hotels expenditures
HUMAN RESOURCES
Final Hiring decisions are usually left for the department heads, human
resources acts as a filter by providing a pool of qualified candidates for the
decision-makers to choose for.
ENGINEERING
Physical structure of a hotel must be maintained and nurtured just like the
people inside.
Hotel Engineers maintain many parts of the facility by implementing a
preventive maintenance program.
Constantly inspect and monitor various aspects
Engineering works very closely with housekeeping in maintaining the quality
of the physical guest room
Computer System malfunctions and PBX-related issues are also the
responsibility of Engineering
SALES MARKETING/CATERING
A full-service hotel that has meeting space requires a department to maximize that
space.
Sales and catering encompasses three department that directly impact the hotel
General Manager
Who is ultimately responsible for the hotel
General Manager may report to a regional manager if the lodging
association of the hotel is with a chain or management company
In Europe, the general manager is often called the managing director or
general director
General manager usually sets the long-term management of the hotel
HOTEL GUEST
Executive Committee
This group of managers directs one or more facets of the hotel’s
operation
Assumes the role of implementing that leadership vision
Director Marketing
The director of marketing oversees hotel’s sales and marketing operation,
directing the group and transient sales to maximize room revenue. He or
she also implementing long range goals, directs all advertising, and helps
determine the hotel’s yearly budget and marketing plan.
DIRECTOR OF FOOD AND BEVERAGE
General Manager
Director of Marketing
Director of Engineering
Controller
Director of Grounds
Director of Recreation
DIRECTOR OF HUMAN RESOURCES
The director of human resources is in charge of all hotel personnel
He or she responsibilities include recruiting employment candidates and
complying with all governmental regulations when hiring and terminating
employees. Payroll and benefits are often coordinated through this office.
Director of Engineering
Director of Engineering is unique among executive/leadership roles is that
he or she is involved in the physical aspects of the hotel’s operation
Conditions of the interior and exterior structure of the hotel fall under his
or her purview
Controlling the costs of heart/light/power as well as general maintenance
are part of the engineering director’s responsibilities.
Controller
The hotel controller is in in charge of the hotel’s financial reporting and
cash flow management
The controller must monitor costs as well as help make cash expenditures
decision.
The controller typically has input in the operational decisions of most hotel
department.
Director of Grounds
Is in charge of landscape and the surrounding area
Works closely with the director of engineering to ensure that the
exterior of the hotel is in the best shape possible.
Director of Recreation
Works with the directors of grounds and engineering in maintaining
pods
The operation of a world class tennis center or golf course on site
would be under this managers purview
Department Heads
Next level of management in the organizational structure of the
example hotel includes the departmental managers or department
heads.
Department heads provide vital communication avenues to the
leadership team from the frontline managers and employee
Linen room attendant Ensures than an adequate supply of Linen and towels is
always on hand
The food and beverage director would probably oversee a very large
operation. It would be vital to his or her success to have strong
department heads managing the day-to-day operations of the outlets,
restaurants and catering services.
Executive Chef
Executive chef is responsible for the hotel’s overall food production. He or she
must control food costs while ensuring that the hotel’s level of food quality is
maintained.
Executive chef monitors the food production of the hotel’s, lounges,
catering/banquet functions, and the in-house employee cafeteria
Executive chef typically reports directly to the director of food and beverage
Director of Catering
Is responsible for the catering side of the hotel sales effort. He or she must be
able to direct all catering efforts on property.
The director of catering manages sales staff as well as the operational
catering staff directly
Weddings, proms, banquets, and other events within the social market
segments are considered local catering
Director of catering works with the executive chef in developing catering
menus to be used for all banquet functions
Director of Convention Services
Director of convention services is responsible for servicing all group
catering.
Director of Restaurants
Director of restaurants oversees the food and beverage outlets and room service
Director of restaurants works with the executive chef and director of food and
beverage in developing new outlet concepts and revising menus
Beverage Manager
Beverage manager is responsible for ensuring that all outlets have a sufficient
supply of beverage for continued operation. He or she must also work closely
with the catering department to ensure that the beverages that have been
ordered by groups are on hand when the function date arrives
General Manager
Director of Loss
Prevention
Director of Rooms/
Resident Manager
Director of Director of
Front Office Manager Night Audit Manager
Services Transient Sales
Housekeepers/
Shuttle Driver Tailor/
Room Attendants
Seamstress
Valet/Garage PBX
Housepersons
Supervisor Supervisor
Valet Parking
PBX
Staff
Operator
Parking
Garage
Concierge
Manager
Director of Food and Beverage
Executive Chef
Director of Catering
Director of Restaurants
Beverage Manager
Sales Department Heads
Director of Groups Sales
• Chief Engineer