Chapter 5
Lodging Operations
Introduction
Introduction
to Hospitality,
to Hospitality,
Fourth Edition
Fourth Edition
John Walker
John Walker
©2006 Pearson Education, Inc.
Pearson Prentice Hall
Upper Saddle River, NJ 07458
After Reading and Studying
This Chapter, You Should
Be Able to:
• Outline the duties and responsibilities of key
executives and department heads
• Draw an organizational chart of the rooms
division of a hotel and identify the executive
committee members
• Describe the main functions of the rooms
division department
Introduction to Hospitality, Fourth Edition
John Walker
©2006 Pearson Education, Inc.
Pearson Prentice Hall
Upper Saddle River, NJ 07458
After Reading and Studying
This Chapter, You Should
Be Able to:
• Describe property management systems and
discuss yield management
• Calculate occupancy percentages, average daily
rates and actual percentage of potential rooms
revenue
• Outline the importance of the reservations and
guest services functions
• List the complexities and challenges of the
concierge, housekeeping and security/loss
prevention departments
Introduction to Hospitality, Fourth Edition
John Walker
©2006 Pearson Education, Inc.
Pearson Prentice Hall
Upper Saddle River, NJ 07458
Functions of a Hotel
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Lodging accommodations
Revenue centers
Cost centers
Serve and enrich society
Profit for the owners
Exceed Guest
Expectations
Introduction to Hospitality, Fourth Edition
John Walker
©2006 Pearson Education, Inc.
Pearson Prentice Hall
Upper Saddle River, NJ 07458
Role of a
General Manager
• Chief Operating Officer (COO)
• Ensuring highest level of
associate and guest service
• Overseeing and coordinating
operations
• Increasing profitability
John HandleryGeneral Manager
Introduction to Hospitality, Fourth Edition
John Walker
©2006 Pearson Education, Inc.
Pearson Prentice Hall
Upper Saddle River, NJ 07458
Qualities of Successful
Hospitality Leaders
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Leadership
Attention to detail
Follow-through
People skills
. J. W. "Bill” Marriott
Patience
Ability to delegate effectively
Introduction to Hospitality, Fourth Edition
John Walker
©2006 Pearson Education, Inc.
Pearson Prentice Hall
Upper Saddle River, NJ 07458
Executive Committee
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General Manager
Director of Human Resources
Director of Food and Beverage
Director of Rooms Division
Director of Marketing and Sales
Director of Engineering
Director of Accounting
Introduction to Hospitality, Fourth Edition
John Walker
©2006 Pearson Education, Inc.
Pearson Prentice Hall
Upper Saddle River, NJ 07458
Executive Committee Chart
Introduction to Hospitality, Fourth Edition
John Walker
©2006 Pearson Education, Inc.
Pearson Prentice Hall
Upper Saddle River, NJ 07458
Rooms Division
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Front office
Reservations
Housekeeping
Concierge
Guest services
Security
Communications
Introduction to Hospitality, Fourth Edition
John Walker
©2006 Pearson Education, Inc.
Pearson Prentice Hall
Upper Saddle River, NJ 07458
Rooms Division Organizational Chart
Introduction to Hospitality, Fourth Edition
John Walker
©2006 Pearson Education, Inc.
Pearson Prentice Hall
Upper Saddle River, NJ 07458
Front Office Manager (FOM)
• Enhance guest
services
• Ensure the desired
percentage of each
market segment is
achieved
• Make and exceed
budget forecasts
Introduction to Hospitality, Fourth Edition
John Walker
©2006 Pearson Education, Inc.
Pearson Prentice Hall
Upper Saddle River, NJ 07458
Basic Functions of the
Front Office
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Review previous night’s occupancy/ADR
Review arrivals/departures/VIP rooms
Staffing adjustments/scheduling
Look over Market Mix
Meet with lead GSA’s
Sell rooms
Maintain balanced guest accounts
Offer services such as faxes, mail, messages,
etc.
Introduction to Hospitality, Fourth Edition
John Walker
©2006 Pearson Education, Inc.
Pearson Prentice Hall
Upper Saddle River, NJ 07458
The Guest Cycle
Introduction to Hospitality, Fourth Edition
John Walker
©2006 Pearson Education, Inc.
Pearson Prentice Hall
Upper Saddle River, NJ 07458
Duties of a
Guest Service Agent
• Guest Service Agent
– 7:00 am - 3:00 pm shift
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Check-outs
Guest inquiries
Room changes
Work with housekeeping
– 3:00 pm - 11:00 pm shift
• Check-ins
• Reservations
Introduction to Hospitality, Fourth Edition
John Walker
©2006 Pearson Education, Inc.
Pearson Prentice Hall
Upper Saddle River, NJ 07458
Night Auditor
• Posts charges
• Closes the books
on a daily basis
• Balances guest
accounts
• Completes daily
report
Introduction to Hospitality, Fourth Edition
John Walker
©2006 Pearson Education, Inc.
Pearson Prentice Hall
Upper Saddle River, NJ 07458
Night Audit Process
in Simple Terms
• Add yesterday’s closing balance of accounts
owed by guests
• Less payments received today against
accounts
• Plus all charges made today to guests’
account
• Equals day’s closing balance of accounts
owed by guest
Introduction to Hospitality, Fourth Edition
John Walker
©2006 Pearson Education, Inc.
Pearson Prentice Hall
Upper Saddle River, NJ 07458
Different Room Rates
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Rack rate
Corporate
Government
Entertainment cards
AAA
Group rates
AARP
Hotel Occupancy Statistics
• Occupancy Statistics
– Percentage of occupancy =
Rooms Occupied
Total Rooms Available
Introduction to Hospitality, Fourth Edition
John Walker
©2006 Pearson Education, Inc.
Pearson Prentice Hall
Upper Saddle River, NJ 07458
Hotel Occupancy Statistics
• Occupancy Statistics (cont.)
– Double/Multiple Occupancy Percentage =
Total # of Guests - # of Rooms Occupied
# of Double Occupied Rooms
Introduction to Hospitality, Fourth Edition
John Walker
©2006 Pearson Education, Inc.
Pearson Prentice Hall
Upper Saddle River, NJ 07458
Hotel Revenue Statistics
• Revenue Statistics
– Average Daily Room Rate (ADR) =
Total Rooms Revenue
Total Number of Rooms Sold
Introduction to Hospitality, Fourth Edition
John Walker
©2006 Pearson Education, Inc.
Pearson Prentice Hall
Upper Saddle River, NJ 07458
Property Management
Systems (PMS)
• PMS
– Computer-based
applications
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Reservations management
Rooms management
Guest account management
General management
Introduction to Hospitality, Fourth Edition
John Walker
©2006 Pearson Education, Inc.
Pearson Prentice Hall
Upper Saddle River, NJ 07458
Yield Management
• Increases room revenue by using demandforecasting technique
• Based on the economics of supply and
demand
• Pricing is based on
– Trends of demand
– Type of room to be occupied
• Rev Par = Dividing room revenue by number
of rooms available
Introduction to Hospitality, Fourth Edition
John Walker
©2006 Pearson Education, Inc.
Pearson Prentice Hall
Upper Saddle River, NJ 07458
Reservations
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Internet
First area of guest contact
A sales position
Telephone skills
Central Reservations System
(CRS)
Introduction to Hospitality, Fourth Edition
John Walker
©2006 Pearson Education, Inc.
Pearson Prentice Hall
Upper Saddle River, NJ 07458
Reservation Definitions
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Confirmed reservation
Guaranteed reservation
Advance deposit/advance payment
No show
6 pm release
Introduction to Hospitality, Fourth Edition
John Walker
©2006 Pearson Education, Inc.
Pearson Prentice Hall
Upper Saddle River, NJ 07458
Typical Reservation Screen
Introduction to Hospitality, Fourth Edition
John Walker
©2006 Pearson Education, Inc.
Pearson Prentice Hall
Upper Saddle River, NJ 07458
Communications or PBX/CBX
• Public/Central
Branch Exchange
• Profit center
• Includes many types of
communication
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Faxes
Messages
Pagers and radios
Emergency center
Introduction to Hospitality, Fourth Edition
John Walker
©2006 Pearson Education, Inc.
Pearson Prentice Hall
Upper Saddle River, NJ 07458
Guest Services
Uniformed Service
• Uniformed Service
– Bell Captain or Guest
Services Manager
– Door attendants
• Hotel’s unofficial greeters
– Bell persons
• Escort guests to their rooms
• Transport luggage
Introduction to Hospitality, Fourth Edition
John Walker
©2006 Pearson Education, Inc.
Pearson Prentice Hall
Upper Saddle River, NJ 07458
Concierge
• Part of guest/uniformed
services
• Elevate properties
marketable value
• Typically in a luxury hotel
• Unique requests
• Knowledge of city
• Several languages
preferred
Housekeeping
• Largest department
in terms of people
• Executive
Housekeeper
• Cleanliness is the
key to success
Duties of the
Executive Housekeeper
• Leadership of people, equipment and
supplies
• Cleanliness and servicing the guest
rooms and public areas
• Operating the department according
to financial guidelines
• Keeping records
Introduction to Hospitality, Fourth Edition
John Walker
©2006 Pearson Education, Inc.
Pearson Prentice Hall
Upper Saddle River, NJ 07458
Housekeeping Personnel
Introduction to Hospitality, Fourth Edition
John Walker
©2006 Pearson Education, Inc.
Pearson Prentice Hall
Upper Saddle River, NJ 07458
Breaking the House Down
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Assignment of sections for cleaning
SC - Checks out that day
SS – Stay-over
XX - Out of order
Based on standard of rooms cleaned
per day by each housekeeper
Introduction to Hospitality, Fourth Edition
John Walker
©2006 Pearson Education, Inc.
Pearson Prentice Hall
Upper Saddle River, NJ 07458
Other Duties of Housekeeping
• Turndown service
• Hotel laundry
• Laundry and dry
cleaning for guests
• General hotel
cleaning
• Linen room
In-House Laundry
• Advantages
– 24 hour anytime laundry
service for guests
– Smaller par-stock of linen
– Full control over quality of
laundered linen
Contract Laundry Service
• Advantages
– No maintenance costs for equipment
– No labor costs for training/staffing
– Lower overhead costs of energy/water
– Fixed projected expense
Introduction to Hospitality, Fourth Edition
John Walker
©2006 Pearson Education, Inc.
Pearson Prentice Hall
Upper Saddle River, NJ 07458
Security and Loss
Prevention
• Providing guest safety and loss
prevention
• Security officers
• Equipment
• Keys
• Safety procedures
• Identification procedures
• ADA compliance
Food and Beverage Division
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Kitchen
Catering
Banquet
Restaurants
Room Service
Mini-bars
Lounges
Bars
Stewarding
Stewarding Department
• Responsibilities of Chief Steward:
– Cleanliness of back of house.
– Cleanliness of glassware, china, and cutlery.
– Inventory of chemical stock.
– Sanitation.
– Maintenance of dishwashing machines.
– Pest control.
– Forecasting labor and cleaning supply needs.
Catering Department
• Catering:
– Includes a variety of
occasions when people
may eat at varying times.
• Banquets:
– Refers to groups of
people who eat together
at one time and in one
place.
• Terms are used
interchangeably.
Trends
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Diversity of workforce
Increase in use of technology
Continued quest for increases in productivity
Increasing use of yield management to increase
profit by effective pricing of room inventory
• Greening of hotels and guest rooms
Introduction to Hospitality, Fourth Edition
John Walker
©2006 Pearson Education, Inc.
Pearson Prentice Hall
Upper Saddle River, NJ 07458
Trends
• Security
• Diversity of the guest
• Compliance of the
ADA
• Hotel companies are
trying to persuade
guests to book rooms
via the company
website instead of an
internet broker
Introduction to Hospitality, Fourth Edition
John Walker
©2006 Pearson Education, Inc.
Pearson Prentice Hall
Upper Saddle River, NJ 07458