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10/1/2009

C
H
A
P
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Hotel Functions of a hotel
E Rooms Division Operation
R
 Provide lodging accommodations
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 Revenue centers

 Cost centers

 Serve and enrich society

 Create profit for the owners


Bring a calculator for this chapter

Role of a General Manager Qualities of Successful Managers


 Leadership
 Ensure excellent guest service
 Attention to detail
 Keep employees happy
 Follow through
 Oversee operations  People skills

 Increase profit for owners  Patience


 Delegate effectively

http://www.iseek.org/sv/Careers?id=13000:100102

Executive Committee Executive Committee


 Makes major decisions affecting the hotel

 Made up of key departments heads:


 General Manager
 Director of Human Resources
 Director of Food & Beverage
 Director of Rooms Division
 Director of Marketing & Sales
 Director of Engineering
 Director of Accounting
Let’s start with Rooms Division!

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Rooms Division Organizational Chart


Rooms Division
Departments
 Front Office
 Reservations
 Concierge
 Guest services
 Security
 Communications
 Housekeeping

The Guest Cycle Rooms Division Organizational Chart


Pre-arrival Let’s look at the responsibilities
of Front Office

Front Desk /
Cashier Uniformed service

PMS

Night auditor

Front Office Front Office


Front Office Manager
The hub of the hotel
 Enhance guest services by developing to exceed
guest needs
Responsibilities:
 To sell and up-sell rooms
 To maintain balanced guest accounts Guest Service Associate
 To offer services (handling mail, faxes, messages, local  Greet guests as they arrive at the hotel, escort
and hotel information)
them to the front desk, personally allocate the
room, and take the guest and luggage to the
room
http://www.iseek.org/sv/Careers?id=13000:100103

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Night Auditor Occupancy Statistics


 Posts charges Occupancy % = Rooms Occupied
 Closes the books (daily) Total Rooms Available
 Balances guest accounts

 Completes daily report (hotel occupancy & revenue statistics)

Lets’ explore “Room rates”


Revenue Statistics
Average Daily Room Rate (ADR) is

Total Rooms Revenue


Total Number of Rooms Sold

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e.g. Hotel on Oahu

Source: Hospitality Advisors - Hotel Flash Report Source: Hospitality Advisors - Hotel Flash Report

Game
x
Occupied Available Occupancy % ADR $ Revenue
Rooms Rooms =
13,950 18,476 75.5% $62 $864,900

1255 1,530 82% $188.94 $237,119

7,398 9,734 76% $87 $643,626

12857 18,476 69.6% $76 $977,132

More practice Property Management Systems (PMS)


 Center of “information” processing
Occupied Available Occupancy % ADR $ Revenue
Rooms Rooms
200 300 66.6% $62 $12,400
 Relates to front and back office activities
(improve guest service)

750 1,000 75% $200 $150,000


 Examples of applications:
400 500 80% $80 $32,000
 Room management (front office & housekeeping)

450 500 90% $75 $33,750  Guest accounting (report)

 Check in services (self check-in & out)

 Information sharing (among modules)

 Internet access (high speed)

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Provides the tools a hotel staff needs for doing their day-to-day jobs

• handling reservations
• checking guests in and out
• assigning rooms and managing room inventory
• accommodating in-house guest needs
• handling accounting and billing

http://www.micros-fidelio.co.uk/products/opera/pms/

Revenue & Yield Management


Revenue management is used to maximize room
revenue at the hotel
 Based on supply and demand

Yield management allocates the right type of room to


the right guest at the right price
 Examines demand for rooms over a period of a few years and
determines the demand for a particular room each night

Rev Par = Room Revenue


Number of Rooms Available Source: Hospitality Advisors - Hotel Flash Report

Source: Hospitality Advisors - Hotel Flash Report

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RevPar Reservation Department


Occupied Available Occupancy ADR $ Revenue RevPar
Rooms Rooms %  Headed by the reservations manager
200 300 66.6% $62 $12,400 $41.3

750 1,000 75% $200 $150,000 $150


 Aim to exceed guest expectations when they
400 500 80% $80 $32,000 $64 make reservations
450 500 90% $75 $33,750 $67.5

What information does the hotel need to take a reservation?

Reservation Record Reservartion


 Guest name & address  Expected arrival
 Confirmed reservations are made with sufficient time
 Telephone number  Number of nights for a confirmation slip to be returned to the client (guest
has a reservation)
 Group/company name  Expected departure

 Person making reservation  Room rate • Guaranteed reservations are given when the person
 Reservation type making the reservation wishes to ensure that the
 Number in party
reservation will be held (hold by credit card / deposit, billed even
 Special requirements  Guarantee method if no-show)

Where do Reservations come from? Communications or PBX


 Internet  Management of in-house, guest
communications, and emergency
 First area of guest contact center
 Sales person
 Profit center
 Telephone skills  Hotels generally add a 50% charge
to all long-distance calls placed
 Central Reservations System (CRS)
from guest rooms

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Guest / Uniformed Service A Typical day


Debbie Murakami
Outrigger Waikiki, Guest Service Manager
 Headed by a guest services manager
7:30-8:00am
 Stop by the Bell Desk
Include:
 see what’s happening with the bell service
 Door attendants (Hotel’s unofficial greeters)

 Bell persons (Escort guests to their rooms, Transport luggage  Stop by the Guest Services desk.
 read the logbook, Daily Revenue report, memos/mail.
 Concierge
 Go to office
 review reports, memos and mail, check & respond email

http://www.iseek.org/sv/Careers?id=13000:100015

 Talk to returned guests


8:30-10:30 a.m. - Guest Services desk
 Prepare for the day  Trouble shooting
 Review entries from the night before, arrivals for the day.
 guests complaints
 Solve problems
 If a vendor is not able to come through for a guest, go off
 Handle guests requests property to help (e.g. pick up that birthday cake, duplicate keys or
 e.g. get shuttles/ rental cars; drop off letter)
 mainland travel agents calling to order amenities for their in-
house clients  Administration
 early arriving guests trying to check in.  Write newsletters, work on projects, attend staff meetings,
employee performance appraisals, payroll and schedules.
Most Interesting requests:
 wrap & mail a huge wooden tiki  Spend time with employee
 prep a honeymooner’s room with candles, champagne & rose
petals  Ends at 5-5:15 p.m.
 Arrange a male flamenco dancer to perform for a guest’s birthday

Concierge Housekeeping
 Elevates property’s marketable value
 Largest department (# people)
 Typically in a luxury hotel
 Executive keeper’s duties
 Handles guest needs
 Leadership (people, equipment, supplies)

 Should have knowledge of the city  Cleanliness & servicing (guest rooms, public
areas)
 Many speak several languages
 Operating the department according to
 Assists guests with restaurant reservations, directions, financial guidelines

 Keeping records
tickets to shows, etc.

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In-House Laundry
Advantages:
Before After
 24-hour service

 Smaller stock of linen


Average:
• 14- 19 rooms per housekeeper
• 20-30 minutes per room  Control over quality of laundered linen

Contract Laundry Service Security & Loss Prevention


Advantages: Providing guest safety & loss prevention:

 No maintenance costs (for equipment)


Includes:
 No labor costs (training/staffing)  Security officers
 Lower overhead costs (energy/water)  Equipment (i.e., smoke alarms, key cards, etc.)
 Safety procedures
 Fixed projected expense  Identification procedures

Example:
Kris Lee
Halekulani Hotel Security staff
Daily operations Kris’s concept of security is “If you can’t see it,
 key card control, access and exit from the property
you can’t protect it.”

Medium range concerns That’s why security staff are constantly on the
 Advanced planning for VIP arrivals,
 Functions involving high levels of activity (parking, exhibits,
move, covering areas inaccessible to camera
deliveries, etc.). surveillance, or where presence is believed
to be important to guests.
Long range procedures
 financial investments, budgeting for capital investment
(refurbishing rooms, etc.).

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The Guest Cycle


Pre-arrival

Front Desk /
Cashier Uniformed service

PMS

Night auditor

Trends Recap
 Diversity of workforce  Security  1. Which departments are under Rooms Division?
 Increase in use of technology  Diversity of the guest Front Office, Reservations, Concierge,
 Continued quest for increases in  Compliance of the ADA Guest services, Security, Communications,
productivity  Use of websites Housekeeping
 Increasing use of revenue  In-room technology
management

 Greening of hotels / guest rooms * Understand the function & importance of each department

2. What role does the Front Desk play?


a. Inventory Control 3. Do you know how to calculate the following?
 i. Assign rooms
 Occupancy rate
 ii. Market rooms  ADR
 iii. Upsell rooms  RevPar

b. Yield Management
 i. Upselling
How are these hotel statistics related?
 ii. Reservations
 iii. Sales
 iv. Setting rate

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Sustainable initiatives
 Recycle
 Reusable bags
 Hybrid car
 Conserve energy
 Buy Local, In-Season and Organic

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