Hotel Management

Final Assignment
Question no. 1.
Explain the five different types of management association?
Answer:
The five different types of management association include.
1. Owner-operated
2. Owner-managed
3. Independent
4. Francised
!. Management contract

1. Owner-operated:
Owner-operated hotels are historically understood to have been the first type of lodging
management association. A hotel that is run by an owner and the owners family is
considered owner-operated. The currently popular bed and breafast hotel is considered
owner-operated because the owner coos the meals! cleans the room and performs all
such tass. They are also called as "MOM and "O"# hotels! owner-operated facilities
are limited by the si$e of owners family.
2. Owner-managed:
Owner-managed hotels are those where the owner has hired non additional %non-family&
personnel to help run the property. These hotels can be large or small. The overall
management remains with the owner! but day-to-day operations can be in other hands.
'any of the hotel chains we see today began with a single owner-managed property.
(rom the first hotels! they grew using different affiliated chains! as that would alter its
management association.
3. Independent Hotels:
)ndependent hotels are also not chain affiliated. )n these hotels! the owner has no hold in
management or day-to-day operations. An independent group of managers are
responsible to the owner of for hotels performance. This is more common affiliation then
the pervious two. )n situations where a hotel is owned by a group of investors! an
independently managed hotel eliminates any potential conflicts of interest.
4. Francised Hotels
(ranchised hotels are independently owned hotels that affiliate themselves with a chain.
)n a franchise agreement! the owner %franchisee& pays a franchise fee to the chain
%franchiser& in exchange for the rights to use their name. in addition to the name! the
chain provides standard operating procedures and guidelines on administration so that a
consistent level of *uality and service is maintained. The franchised hotel also benefit
from national mareting campaigns %utili$ing television! print and radio media& that
might be too cost prohibited for an individual hotel to undertae. Another benefit of
franchising is access to a #entral $eser%ation &'stem (#$&). A central reservation
system provides the consumer with an avenue to locate a hotel of choice in certain
location.
!. Management #ontract
'anagement contract hotels are the most common types of hotels now-a-days in
maretplace today. A hotel under management contract is similar to a franchise in that it
is supplied with standard operating procedures as well as *uality and service level targets.
+owever! these hotels differ in that they are actually operated by the company supplied
those standards remember! a franchise hotel can choose its own management.
The hotel chains offer most management contracts in addition to offering franchise
agreements. ,ompanies such as Hilton* Marriot and others offer management contracts
in addition to offering franchise agreements. The management fee is often greater than
the franchise fee from the same chain for this reason.
Question +o. 2.
Explain the shared benefits of franchising versus management contract affiliation?
Answer:
The shared benefits of franchising versus management contract affiliation are as under.
F$A+#HI&I+, MA+A,-M-+. #O+.$A#.
(or the franchisee! franchising helps
reduce ris
-roven operational methods are used
(ranchisees and their financial capital
expand the brand faster than franchiser
could do solo
'anagement *uality can be improved
Targeted expertise can be obtained
.ocumented managerial effectiveness
is available
-ayment for services can be tied to
performance
-artnership opportunities are enhanced
Question +o. 3.
/hat is the referral organi$ation? /hat do they offer?
Answer:
0eferral organi$ations are those organi$ations that 1ust pay an initial fee for once and
operate independently once they paid initial payment. 0eferral organi$ation consists of
independent hotels which have grouped together for some common purpose.
They offer same amenities as other hotels do lie sleeping rooms! meeting2function
space! room services etc. /-&. 0-&.-$+ I+.-$+A.IO+A1 is one the best
example of referral organi$ation having 3444 hotels world wide.
Question +o. 3.
5ist four types of hotel and what are their characteristics?
Answer:
The four main hotel types are6
.owntown
0esort
Airport
7uburban
2owntown:
.owntown hotels location types located in dense urban areas. This doesnt necessarily
mean the city center but most often does. +otels that have that have large clusters of
corporate structures or office pars surrounding them can be considered downtown
locations types regardless of exactly where in the city they are located.
These hotels are located in the heart of the city and they are more expensive than
suburban hotels. These hotels are patroni$ed by business personnel and high income
tourists.
$esort:
0esort location types can be classified as such only if they fulfill one of two main
criteria.
8. A resort can be located near some sort of special attraction that attracts guests for a
reason other then hotel itself. An ocean! natural wonders! mountains! Amusements
-ar or golf course can be their attraction.
9. The second uni*ue signature attraction created by the hotel is defined as an event!
activity or facility that is defined with a specific hotel.
'ost resort hotels provide extensive food and beverage! valet and room service! sight
seeing to vacationers. A more leisurely! relaxed atmosphere distinguishes most resort
hotels from other types of hotels.
Airport:
The airport hotel location type is perhaps the easiest to identify. 'ost ma1or airports in
the world have one or more hotels located very close by. )t can b said that the special
attraction of an airport hotel is the airport itself. The airport provides the steady streams
of travelers coming to and from the city at almost all hours.
Airport hotels commonly provide complimentary shuttle service to and from the airport
to mae it convenient for the travelers. The hours of operating in the restaurant! lounges
and other facilities may be longer than at other location types in order to accommodate
those travelers dealing with change in time $ones and 1et lag. 'ultilingual staff members
are common at airport hotels in ma1or gateway cities to assist international travelers.
Typical target maret includes business clients! airline passengers with overnight travel
layovers or canceled flights and air line personnel hotel own courtesy vans often transport
guests between the hotel and the airport.
&u3ur3an:
The suburban hotel type is perhaps the most common suburban hotel is generally
considered to be those that do not fit into the other three located types: most of the hotels
in the world have actually suburban location types. These hotels are not located in the
downtown area or near airport. They have no special attraction to *ualify them as resorts.
They are common on nearly ma1or roadways and near small office complex.
;ormally these hotels types are patroni$ed by low budget tourists. Tourist who dont
want to stay in the heart of city as they want to be away from the hustle and bustle of city!
prefer these hotels. <sually writers! poets! low budget tourists etc prefer to stay in sub
urban hotels.
Question +o. !
5ist at least five services2 amenities identified with the full services hotel?
Answer:

&-$4I#-&5AMI+I.I-&
0estaurants
0oom 7ervice
'eeting 7pace
=usiness ,enter
+ealth ,lub
=ell 7taff
>ift shop
5ounge%s&2entertainment
7uites2upgraded rooms
,oncierge lounge and services
Executive or "business class# floors
express2 video checout ability
)n-room amenities
7ecurity2 loss prevention
7huttle services
Question +o. 6
/hat are the principles behind target maret analysis?
Answer:
The principles behind target maret analysis are based on number of marets in which
guests are categori$ed. A target maret can is a combination of maret segment%s& the
hotel wants to penetrate. The target maret can be inherently tied to a product type or
specifically designated by a mareter as new focus.
)n modern hotel the maret there are vastly different target marets available. These
marets contribute to each hotels available business mix. The target maret is comprised
of those consumers wanting a difference type of hotel room. The physical differences in
the room itself do not differentiate between services-level product types. The standard
target maret itself does not differentiate room product types are the ones that will differ
from the standard. The physical differences in the hotels set apart. These differences
become apparent when looing at the target maret that comprise those seeing different
room types from the standards sta'* e7tended sta' and all suite mar8ets.
The principle behind target maret analysis is that to capture guest according to income
level and guest preference. The customers who want to spend weeends to fresh up there
minds will prefer to stay at extended stay and accordingly.
Question +o. 9
;ame the departments which are considered front of the house and which are bac of the
house?
Answer:
F$O+. OF .H- HO:&- /A#; OF .H- HO:&-
(ood and beverage %7ervices&
0ooms .ivision
7ales2,atering
,oncierge
(ront Office
Engineering
+uman 0esources
Accounts
5aundry
(ood and =everage % -roduction &
Question +o. <
0rite down te responsi3ilities o=:-
+ouse ?eeping 'anager
(ront .es 'anager
,oncierge 'anager
Answer:
1. House ;eeping Manager
A houseeeping manager has the 1ob of directing houseeeping staff members in their
1obs! ensuring their cleaning duties are accomplished in a timely and orderly manner. A
houseeeping manager may supervise staff in a hotel! school! or hospital! ensuring that
staff members clean rooms effectively and leave them reasonably comfortable and
attractive for those who must use them. An individual in this 1ob may hire or screen and
train staff members! assign them tass and inspect their wor. +e may also buy and
maintain houseeeping e*uipment and supplies.
2. Front 2es8 Manager
The (ront Office 'anager is responsible for all duties of the front des operation which
includes6 staff training! inter-department communications! and staff scheduling. The (ront
Office 'anager y scheduled front des shift and must be available to wor any shift as
needed. The (ront Office 'anager usually wors a regularly scheduled front des shift
and must be available to wor any shift as needed. The (ront Office 'anager should
possess strong communication sills and demonstrate leadership abilities.
3. #oncierge Manager:-
The responsibilities of ,oncierge 'anager are to help and manage the ,oncierge Team.
The role will be completely involved in ensuring all guests are given a warm! friendly!
courteous! informative and efficient service as well as to supervise2manage the
,oncierge operation %including Transport& ensuring that standards are maintained and
maximum guest satisfaction is achieved. ,onduct monthly =uggy driving tests for staff
woring in the hotel as per the re*uirement. -repare the weely duty roster ensuring
optimum coverage! monthly attendance sheet and annual vacation plan for all
,oncierge staff as well as control their pending vacation and lieu days. 0eview 7O-@s
regularly and update them in .'7 as and when re*uired.
Question +o. 11
/hy communication is so important in the front office?
Answer:
The communication is very important in the front office because front office is
considered as the heart of hotel. The front office is connected with many
interdepartmental lines of communication that exist. These lines are based on the
direction each department has been given to provide hospitality in the form of clean
rooms! properly operating e*uipment! safe environment! well-prepared food and
beverages! efficient table service! professional organi$ation and delivery of service for a
scheduled function as well as accurate accounting of guest charges! and the lie. These
general ob1ectives help department directors organi$e their operations and meet the
overall goal of delivering professional hospitality. +owever! in reality! it re*uires constant
effort to manage the details of employees! materials! procedures! and communication
sills to produce acceptable products and services. The front office staff interacts with all
departments of the hotel! including mareting and sales! houseeeping! food and
beverage! ban*uet! controller! maintenance! security! and human resources. These
departments view the front office as a communication liaison in providing guest services.
Each of the departments has a uni*ue communication lin with the front office staff.
Mar8eting and &ales 2epartment
The mareting and sales department relies on the front office to provide data on guest
histories! details concerning each guests visit. 7ome of the information gathered is based
on $ip code! fre*uency of visits! corporate affiliation! special needs! and reservations for
sleeping rooms. )t is also the front offices 1ob to mae a good .impression on the public!
to relay messages! and to meet the re*uests of guests who are using the hotel for
meetings! seminars! and ban*uets. The guest history is a valuable resource for mareting
and sales! which use the guest registration information to target mareting campaigns!
develop promotions! prepare mailing labels! and select appropriate advertising media.
The front office staff must mae every effort to eep this database current and accurate.
The process of completing the booing of a special function %such as a wedding
reception! convention! or seminar& depends on the availability of sleeping rooms for
guests. The mareting and sales executives may have to chec the lists of available rooms
three! six! or even twelve months in the future to be sure the hotel can accommodate the
expected number of guests.
House8eeping 2epartment
+ouseeeping and the front office communicate with each other about houseeeping
room status! the report on the availability of the rooms for immediate guest occupancy.
+ouseeeping room status can be described in the following communication terms6
A Available ,lean! or 0eadyBroom is ready to be occupied
A OccupiedBguest or guests are already occupying a room
A 7tay overBguest will not be checing out of a room on the current day
A .irty or On-,hangeBguest has checed out of the room! but the houseeeping staff has
not released the room for occupancy
A Out-of-OrderBroom is not available for occupancy because of a mechanical
malfunction +ouseeeping and the front office also communicate on the details of
potential house eeping count %a report of the number of guests registered in the hotel&!
security concerns! and re*uests for amenities %personal toiletry items such as shampoo!
toothpaste! mouthwash! and electrical e*uipment&. These issues are of immediate concern
to the guest as well as to supervisors in the hotel.
Question +o. 12
Explain the different guest billing option?
Answer:
There are basically three billing options that are ,redit cards! ,ash! .irect billing.
The credit card is obtained at the time of booing and is used as a guarantee for some
forms of reservations. 'ost hotel computer systems can chec to ensure that each card is
valid and that sufficient amount of credits is available on the card. This is called
obtaining a card approval. =ased on the number of nights needed on the reservation and
the rate that it was booed at the computer can calculate the approval based simply on the
anticipated revenue.
The second method of billing method is cash. >uests choosing not to use a credit card
may provide cash deposit prior to assigning the guest room. (or security and frauds
concerns! the hotel will re*uire the full room rate! taxes and what is referred to as
anticipated usage amount this usage amount is the cash deposit re*uired to cover
estimated use of hotel facilities and services e.g. % in-room movies in-room phones! room
service! etc &. >uests wishing to "sign# these and other services to their room must
provide additional cash. >uests choosing not to do this may face their phones and movies
being turned off: room service will re*uire a payment at the time of delivery! and so on.
The third method of payment is less reliant on the front des but is a valid method of
payment. .irect billing allows an individual or group to pay for goods2 services incurred
during a stay or function at a later date. /ithin a hotel! guests and groups are routinely
extended credit. Each time a guest checs in with a credit card as a method of payment!
the hotel provides goods2services under the assumptions that the credit card company will
reimburse it at a later date.
Question +o. 13
/hat are basic responsibilities of the (ront Office 'anager?
Answer:
The responsibilities of the (ront Office 'anager are listed below!
8. 'aintain a high morale and productivity as well as good communication within the
(ront Office as well as between other departments.
9. .evelop colleagues! Team 5eaders and 'anagers by delegating tass and then
empower and coach them maing sure they achieve the desired results.
C. 'onitor the level of service provided by the department %i.e. by analy$ing the >uest
7atisfaction 0eports& and constantly woring on improving it through investigation!
analysis and corrective action.
3. +andle customer complaints and feedbac.
D. -ut measures in place to achieve or exceed the budgeted profit.
E. /or in partnership with 0eservations! 7ales F +ouseeeping to ensure guests needs
are determined and met in regard to room re*uirements.
G. ,ommunicate to colleagues the importance of meeting customer as well as regulatory
F statutory needs.
H. Ensure the availability of resources in order to run a smooth operation.
I. Ensure customer re*uirements are determined F met.
84. Actively promote an awareness of customer re*uirements throughout the
organi$ation.
88. Ensure that responsibilities and authorities are defined and communicated within the
organi$ation.
89. .etermine the necessary competence for colleagues and provide training or other
actions to satisfy these needs.
8C. 'aintain appropriate records of education! training! sills and experience.
83. -rovide constant coaching! counseling and discipline to colleagues to ensure their
capability to meet the needs of the customer and the organi$ation.
8D. Ensure manning and competence level of selected colleagues is sufficient for the
department to meet the needs of the organi$ation and customer.
Question +o. 14
/hat do you now about?
0oc 0ate ,orporate 0ate 7easonal 0ate
Advanced -urchased 0ate /al in 0ate -acage 0ate
Answer:
$O#; $A.-:
The rac rate is understood to be the highest published rate a hotel can charge for a
specific room. 0ac rates can differ between room types! configuration and designation.
On the bac of most hotel doors! a tariff sheet will be posted. This tariff sheet will list the
rac rate for that particular room. )n most cases! hotels must adhere to the rate structure
posted on the tariff sheet. ,ertain states allow for exceptions during unusually high
demand events! such as yearly sporting competitions. The hotels that can change their
rac rates for these events must post that information on the in-rooms tariff sheets well in
advance.
#O$"O$A.- $A.-:
This designation is designed to promote the corporate maret segment. )t is offered
generally to any guest who nows to as for it. Typically the corporate rate reflects a 84
t4 94 percent discount off of the rac rate. The corporate rate is widely accepted as the
transient rate for most hotels. The target rate is simply an average rate goal a hotel sets to
achieve for certain day or maret segments. =oth the group and transient room sales
teams have their own targets rates! which they strive to reach. <nderstanding that some
rates will be lower and some higher! the targets rate serves as the predetermined average
goal.
&-A&O+A1 $A.-:
0esorts and other location types that see a fluctuation in demand due to weather or the
operation of a nearby attraction will vary their rates accordingly. Offering a different rate
for in-season and out-of-season %off-season& allows the hotel to alter their rate structure to
compensate for this cyclical demand. A seasonal rate designation can apply to other rates
as well. )n-season corporate rates for example! will definitely be higher than out-of-
season corporate rates.
0A1; I+ $A.-:
This types of rate designation may vary from night to night. )t is set each night by the
front office or rooms manager based on the remaining unoccupied rooms in hotel. A
wal-in is a hotel guest who arrives without a reservation. 5iterally "waling in off the
streets# these guests can help fill any remaining hotel rooms with few remaining rooms!
the wal-in rate may be set fairly high to maximi$e room revenue. An empty hotel may
reduce the wal-in rate significantly.
A24A#+-2 ":$#HA&-2 $A.-:
A relatively new trend in hotel rate structures! an advanced purchases rate offers a greater
discount based on the number of days in advance it is booed. A G-! 84- or 98- day
advance purchase rate will have a corresponding lower price. +ow far in advance a hotel
set its advance purchase rates depends largely on its booing cycle. As was reviewed
previously! the individual booing cycle is the time between when an individual
reservation is made and when an individual reservation is due to arrive. The booing
cycle can be anywhere from a few days to few months. The transient demand is low
outside the traditional booing cycle and increase drastically within it. A hotel wishing to
lengthen that booing cycle %and hence getting more reservations booed farther in
advance& will offer advance-booing rates with greater discount further out. The advance
purchase rate concept was copied from the airline industry. 7imilarly! they are often
nonrefundable and can carry a penalty for any change.
"A#;A,- $A.-:
A hotel pacage combines one or more hotel products or services to mae the new entity
more attractive called bundling! a hotel will pacage the room %and its rate& with another
services or amenity. Often this entails pricing the pacage below the cost pf purchasing
the items separately. 'ost traditional hotel pacage combine a room with a meal %e.g.
breafast&. The perceived benefit to the guest can be monetary savings! convenience or
both pacage rates can incorporate nonhotel items as well. Jariation on the hotel pacage
can consist of6
1. M-A1 "A#;A,-&:
The most common are the American "lan (A") which includes three meals a day with
the room. %;ot to be confused with all inclusive rates! which resorts often incorporate
into their rate structure. An all-inclusive rate will bundle all meals! drins! activities and
gratuities into the room rate.& The Modi=ied American "lan (MA") includes two meals
%typically breafast and dinner& and the room. The #ontinental "lan (#") includes
continental breafast and a room. The All-&uit "lan (&")* a relatively new pacage rate!
combines the room with breafast and coctails in the evening. This rate is the standard
plan for all-suite properties.
C. 4A#A.IO+ "A#;A,-:
These bundle room rates and one or more of the following6 airline ticets!
transportation! ticets to local attraction include or shows and themed amenities. Themed
amenities could include sunglasses and suntan lotion for a "fun in the sun# pacage.
+oneymoon pacage could include champagne and strawberries with the room. A "night
on the town# pacage might include a limousine ride and dinner. 7hopping pacage may
include discount coupon to local shop and a foot massage for the tired feet. A concept
pacage includes a ticet to a show and the musical artists latest compact dis in
addition to the room. 7avvy hotels have even bundled their sleeping rooms with sought-
after items. Ticets to a sold-out show that are bundled with a hotel room virtually
guarantee a sale %whether the guest stays there or not&.
4. M--.I+, "A#;A,-:
These can be valuable for the busy meeting planner. A complete meeting pacage %or
,'-& rate typically includes coffee breas! lunches! dinners! and2or audiovisual
e*uipment the cost of the meeting room and a sleeping room all bundled together. 7ome
times referred to as a comprehensive meeting pacage! the ,'- rate is often offered at
conference centers with sleeping rooms. Jariation of the meeting pacage may not
always include the sleeping room. The .'- or .ay 'eeting -acage includes
everything the ,'- rate did except for the sleeping room.

Question +o 1!:
+ow you manage the account of the individual?
Answer:
/e manage the account of the individual by two accounts which are >uest Account and
'aster Account.
,:-&. A##O:+.:
The guest account is created at some point between the creation of a room reservation
and the actual arrival of a hotel guest. Each individual guest account will trac debits and
credits incurred prior to and during a stay in Advanced deposit for the individuals are
placed or posted to the guest account. "osting is the act of applying a debit or credit to an
account. 0oom rates and outlet2ancillary charges are also posted to the guest account as
they are incurred. The guest account must be created prior to chec-in so that the front
des will be prepared for arrival.
MA&.-$ A###O:+.:
The master account closely mirrors the individual guest account. The main difference is
that a master account encompasses registration2accounting information for an entire
group! not individual attendees. )ndividual guest charges related to a specific group based
on billing arrangements %i.e. room2tax! catering! etc.& are routed to the master account as
applicable. $outing is the process where credits2debits incurred by one account are
manually or automatically transferred to another account.
Question +o 1!:
/hat is shift closing?
Answer:
7hift closing is important duty for front office managers is to verify the individual bans
of des agents. Each des agent will provide run a report from the -'7 called an
employee shift closing report. The employee shift closing report. The employee shift
closing report outlines each transaction the agent completed within the guest ledger. All
guest registration and guest accounting transactions are noted. Each employee is assigned
an identification number within the -'7 to trac his2her transactions! regardless to
computer terminals. The -'7 shift closing will list exactly how cash! checs! credit card
receipts! posting and paid outs were conducted by the agent based on that identification
number. As was reviewed earlier! the most employees must submit tier bans to the
general cashier for deposit fir audit. 'oney %cash! checs! credit card receipts& collected
in the excess of the ban balance are "dropped# to the general cashier for deposit.
=ecause of the amount of money some agents collect in a day! the managers should assist
in verifying this dropped amount.