Chapter4: Lodging Operations: Comprehensive Study Guide

Core Functions of a Hotel and Historical Context

• Primary Function of a Hotel

  • To provide an outstanding lodging experience for guests.

• Secondary Functions

  • To offer a great lodging experience while simultaneously generating a profit for the owners of the property.

• Historical Anecdote: The Willard Inter-Continental Hotel

  • Located in Washington, D.C.

  • The term "lobbyist" was coined at this hotel.

  • President Grant would retire to the Grand Hall after dinner and sit in an armchair in the lobby. People would approach him in this setting to gain his support for various causes.

Role and Management Structure of the General Manager (GM)

• The Role of the General Manager

  • Holds ultimate responsibility for keeping guests satisfied and ensuring they return.

  • Sets the overall tone for the property.

  • Oversees and coordinates all hotel operations.

  • Provides a reasonable return on investment (ROI) to the hotel owners.

• Traits of Successful General Managers

  • Leadership skills.

  • High attention to detail.

  • Strong follow-through.

  • People skills.

  • Patience.

  • The ability to delegate effectively.

• Management Structure and Key Result Areas

  • At every property, a manager is responsible for specific key areas, including:

  • Human resources.

  • Engineering and maintenance.

  • Accounting and finance.

  • Sales and marketing.

  • Food and beverage.

• The Executive Committee

  • The GM is supported and advised by an Executive Committee consisting of directors from all major departments.

  • The committee typically meets weekly.

  • Discussion topics include guest satisfaction, occupancy, training, major expenditures, and other operational items.

  • Executive Committee Members (Size varies by hotel size):

  • Rooms Division Director.

  • Food and Beverage Director.

  • Human Resource Director.

  • Security Director.

  • Sales and Marketing Director.

  • Accounting Director.

The Rooms Division

• Overview

  • Responsible for all departments related to the guest's room and overnight stay.

  • Often serves as the first point of contact for the guests.

  • Departments vary based on the size of the hotel.

• Departments Included in Rooms Division

  • Front Office.

  • Reservations.

  • Housekeeping.

  • Concierge.

  • Guest Services.

  • Security.

  • Communications.

• The Guest Cycle

  • The cycle begins when a guest contacts the hotel to make a reservation and ends with the checkout process.

  • The Stages of the Guest Cycle:

  • Reservation.

  • Confirmation.

  • Arrival Registration (includes room assignment and payment).

  • Rooming the Guest / Post Guest Charges.

  • Guest Incurs Charges.

  • Verification.

  • Night Audit.

  • Check-Out (followed by the potential for more guest charges and the cycle repeating).

Front Office Operations and Personnel

• The Front Office Role

  • Referred to as the "hub" or "nerve center" of the hotel.

  • Responsible for creating the guest's first impression.

  • Provides services and information to all guests.

• Front Office Responsibilities

  • Sell and up-sell guest rooms.

  • Maintain balanced guest accounts.

  • Provide services: mail handling, faxes, messages, and general info about the hotel and local area.

• Front Office Personnel

  • Front Office Manager: Oversees the operation and ensures guest services exceed expectations.

  • Guest Service Associate: Acts as the first contact; escorts guests to the desk and assists with luggage. This role often replaces separate traditional roles like the desk clerk and bellman.

  • Night Auditor: Balances guest accounts daily, posts charges, closes the books, and completes daily reports.

• Daily Report Statistics and Formulas

  • Room Occupancy Percentage (ROP):     $ROP = \frac{\text{Rooms Occupied}}{\text{Total Rooms Available}}$

  • Average Daily Rate (ADR):     $ADR = \frac{\text{Total Rooms Revenue}}{\text{Total \# of Rooms SOLD}}$

Reservations, Communications, and Guest Services

• Reservations

  • Reservations can be made via a Central Reservation Center or the property's specific reservation department.

  • Often the first point of contact; agents must be polite, knowledgeable, and courteous.

• Communications (CBX or PBX)

  • Manages in-house and guest communications.

  • Vital for smooth functioning.

  • Can act as a profit center by adding up to a $50\%$ charge on long-distance calls.

• Guest Services

  • Serves as unofficial greeters.

  • Headed by a Guest Services Manager (who may also be the Bell Captain).

  • Staff include Door attendants, Bell persons, and the Concierge.

• The Concierge

  • Typically found in luxury hotels.

  • Elevates the property's marketable value.

  • Handles unique requests like restaurant reservations, tickets to sold-out shows, and shopping.

  • Requires in-depth knowledge of the hotel and the local city.

Housekeeping and Security

• Housekeeping Department

  • Known as the "heart" of the hotel.

  • Largest department by employee count.

  • Success is defined by cleanliness.

  • The Executive Housekeeper's Responsibilities:

  • Leadership.

  • Cleanliness and servicing of guest rooms and public areas.

  • Operating the department according to financial guidelines.

  • Record keeping.

  • Managing public areas.

  • Handling maintenance work orders.

  • Inventory of room amenities.

• Security and Loss Prevention

  • Responsible for guest safety and loss prevention.

  • Security plans include security officers, equipment (smoke detectors, key cards), safety procedures, and identification procedures.

Food and Beverage (F&B) Division

• Overview and Leadership

  • Led by a Director of F&B.

  • Departments include Kitchen (Culinary), Restaurants, Lounges (Bars), Stewarding, Catering/Banquets, and Room Service (In-Room Dining).

• Kitchen and Culinary Management

  • Executive Chef: In charge of the kitchen; responsible for the efficient operation of all food production, compliance with sanitation standards, and delivering financial results.

• Restaurants

  • Properties may have one or more depending on size.

  • Cater to hotel guests and the general public.

• Stewarding

  • Known as the "heart" of the food and beverage division.

  • Responsible for the cleanliness of the back of the house.

  • Manages the cleanliness and inventory of china, glass, and silver.

  • Keeps the kitchen and equipment sanitized.

• Catering and Banquets

  • Catering has a broader scope than "Banquets" and includes various food functions.

  • Often has a separate catering sales staff.

  • Catering Event Order (CEO): A document containing essential details for every catering event.

  • Catering Services Manager: In charge of the function from start to finish; includes hiring, training, and organizing staff; goal is guest satisfaction.

• Room Service / In-Room Dining

  • Provides quality food and beverage service within the guest room.

  • Typically found in larger, high-end hotels.

Hotel Technology and Revenue Management

• Property Management Systems (PMS)

  • Computer-based applications used to accept, store, and retrieve guest information.

  • Used for: Reservations management, history, requests, billing arrangements, room inventory management, and guest account management.

• Revenue Management

  • A demand forecasting technique used to maximize room revenue based on supply and demand.

  • Primary purpose is to increase profitability.

  • Revenue Per Available Room (RevPAR) Formula (developed by Smith Travel Research - STR):     $RevPAR = \frac{\text{Rooms Revenue}}{\text{\# Available Rooms}}$

  • Room Rate Types:

  • Rack Rate: The published rate; the highest rate the hotel would like to get for the room.

  • Corporate rate.

  • Government rate.

  • AAA rate.

  • Group rates.

  • AARP rate.

Sustainable Lodging and Industry Trends

• Sustainable Lodging Concepts

  • Eco-efficiency: Creating more goods and services while using fewer resources and creating less waste.

  • The 3P Approach:

  • People.

  • Planet.

  • Profits.

  • Green Hotel Movement: Improving the bottom line while lowering ecological impact.

  • Sustainability methods: Reducing energy needs, conserving water, reducing waste, and reducing hazardous waste.

• Current Trends in Lodging Operations

  • Increased diversity in both workforce and guest profiles.

  • Increased reliance on and use of technology.

  • Greening of guest rooms and hotels.

  • Security enhancements.

  • Compliance with the ADA (Americans with Disabilities Act).

  • Restaurants adopting specific themes.