The HotelBusinessThe HotelBusiness
Back to Table of Contents
The Hotel BusinessThe Hotel Business
2
Chapter 4
The Hotel BusinessThe Hotel Business
Types of Lodging BusinessesTypes of Lodging Businesses
Hotel OperationsHotel Operations
The Hotel BusinessThe Hotel Business
3
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.
The Hotel BusinessThe Hotel Business
4
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
The Hotel BusinessThe Hotel Business
5
Classification of Facility
Lodging classification is based on four factors:
Section 4.1
Guesttype
Guesttype PricePrice LocationLocation Style and
functionStyle andfunction
Classification of Facility
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
6
The Hotel BusinessThe Hotel Business
7
Classification of Facility
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
The Hotel BusinessThe Hotel Business
8
Classification of Facility
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
The Hotel BusinessThe Hotel Business
9
Classification of Facility
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)
The Hotel BusinessThe Hotel Business
10
Classification of Facility
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
The Hotel BusinessThe Hotel Business
11
Classification of Facility
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)
The Hotel BusinessThe Hotel Business
12
Classification of Facility
Calculation tools used in yield management are:
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%)
The Hotel BusinessThe Hotel Business
13
Classification of Facility
Calculation tools used in yield management are:
revenue per available room (revPAR) a rate that reflects a hotel’s revenue per available room
Section 4.1
Revenue per available room (revPAR)
The Hotel BusinessThe Hotel Business
14
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
The Hotel BusinessThe Hotel Business
15
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
The Hotel BusinessThe Hotel Business
16
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
The Hotel BusinessThe Hotel Business
17
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
The Hotel BusinessThe Hotel Business
18
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
The Hotel BusinessThe Hotel Business
19
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
The Hotel BusinessThe Hotel Business
20
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
The Hotel BusinessThe Hotel Business
21
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
The Hotel BusinessThe Hotel Business
22
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).
The Hotel BusinessThe Hotel Business
23
The Front Office
Guests can often make reservations directly with a property through a centralized reservation system (CRS).
Section 4.2
The Hotel BusinessThe Hotel Business
24
The Front Office
The housekeeping department directly affects a guest’s perception of cleanliness, safety, and security at a property.
Section 4.2
The Hotel BusinessThe Hotel Business
25
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
The Hotel BusinessThe Hotel Business
26
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
The Hotel BusinessThe Hotel Business
27
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
The Hotel BusinessThe Hotel Business
28
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.
The Hotel BusinessThe Hotel Business
29
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
30
The Hotel BusinessThe Hotel Business
31
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
32
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
33
Hotel Staffing
Section 4.2
GeneralManager
Support Staff
Marketing AccountingHuman
ResourcesEngineering
Support Staff
Sales
Marketing
34
The Hotel BusinessThe Hotel Business
35
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
The Hotel BusinessThe Hotel Business
36
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
The Hotel BusinessThe Hotel Business
37
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.
The Hotel BusinessThe Hotel Business
38
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.
The Hotel BusinessThe Hotel Business
39
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.
The HotelBusinessThe HotelBusiness
Back to Table of Contents
End ofEnd of
The Hotel BusinessThe Hotel Business
41