Hotel Management PDF

Hotel Management
Hotel Operations Management, 1/e

Hayes/Ninemeier
2004 Pearson Education

Pearson Prentice Hall
Upper Saddle River, NJ 07458
Chapter 1:
Hotel Industry
Overview & Professional Career Opportunities
Lodging is Part of Tourism Industry:

Tourism Industry
Figure 1.1: Segments in the Tourism Industry
Tourism Industry
Hospitality
Lodging
Operation
Retail (Shopping)
Stores
Transportation
Services
Destination
(Activity) Sites
F&B Operations
Tourism industry is
third largest retail industry following automotive & food stores
nation
s largest service industry
one of the nation
s largest employers
Hayes/Ninemeier


Lodging (Hotel) Sector
Lodging properties are a segment within tourism industry
Figure 1.2: Range of lodging property alternatives
Destination
resorts
Full-service
hotels

Hayes/Ninemeier
Limitedservice hotels
Sleeping
rooms


A Brief History of Hotels
Figure 1.3 : Highlights in the modern history of the US hotel industry
1900
Fewer than 10,000 hotels

750,000 to 850,000 rooms
1910
10,000 U.S. hotels

One million rooms
300,000 employees
Average size: 60-75 rooms
1920
Occupancy: 85%
Hotel construction reaches an all-time peak as
thousands of rooms are added along the new state
and federal highways

Hayes/Ninemeier


A Brief History of Hotels (continued.)
1930
Occupancy: 65%
AHA
s Hotel Red Booklists 20,000 hotels
1940
Occupancy: 64%
Average room rate: $3.21
1950
Occupancy: 80%
Typical hotel: 17 rooms
1960

Hayes/Ninemeier
Occupancy: 67%
$3 billion in sales
Typical hotel rooms: 2,400,450
Typical hotel: 39 rooms, independent and locally owned

A Brief History of Hotels (continued.)
1970
Occupancy: 65%
$8 billion in sales
Total hotel rooms: 1,627,473
1980
Occupancy: 70%
$25.9 billion in sales

Hayes/Ninemeier


A Brief History of Hotels (continued)
1990
Occupancy: 64%
$60.7 billion in sales
45,020 properties
2000
Occupancy: 63%
$97 billion in sales

Hayes/Ninemeier

Close Look at Lodging Organizations

Figure 1.4: 2000 Property / Room Breakdown
By location
Urban
Suburban
Highway
Airport
Resort
Property
Rooms
10.2%
33.6%
42.2%
7.7%
6.3%
16.0%
30.4%
31.0%
10.2%
12.4%
13.8%
26.9%
34.1%
16.2%
9.0%
3.3%
18.1%
27.3%
25.3%
26.0%
51.5%
33.5%
10.9%
2.8%
1.3%
22.5%
35.1%
21.3%
9.9%
11.2%
By rate
Under $30
$30 - $44.99
$45 - $59.99
$60 - $85
Over $85
By size
Under 75 rooms
75 149 rooms
150 299 rooms
300 500 rooms
Over 500 rooms
Hayes/Ninemeier

Close Look at Lodging Organizations:

Typical Lodging Guests
Figure 1.5: Typical lodging guests
28.8%
are transient business travelers
25.3%
are attending a conference/group meeting
24.6%
are on vacation
21.8%
are traveling for other reasons (for example,

personal, family, or special event)

Hayes/Ninemeier


Lodging Industry Characteristics
Emphasis on safety, cleanliness & service
- Guests also consider
intangibleaspects of the purchase
decision
Inseparability of manufacture & sales
- A room exists & is sold at the same site
Perishability
- If a room is not rented on a specific date, the revenue is
lost forever
Repetitiveness
- Some operating procedures are routines
Labor Intensive
- Much of a hotel
s daily work involves employees
providing services
Hayes/Ninemeier


Lodging Industry Overview
Largest hotel affiliations
Figure 1.6: Top 5 lodging brands
Brands
Rooms
Properties
1. CENDANT CORPOPRATION
554,834
6,540
2. BASS HOTELS&RESORTS, INC.
481,482
3,030
3. MARRIOTT INTERNATIONAL
374,010
1,846
4. CHOICE HOTELS INTERNATIONAL
337,226
4,219
5.HILTON HOTELS CORPORATION
333,110
1,910
These five represent some 28 % (14,884 / 53,500 properties) of all

domestic properties, & 42 % (1,708,617 / 4,100,000 rooms) of all rooms.
The majority of these brands do not
owntheir hotels, but hotel owners
elect to affiliate with the brand, for a fee.
Hayes/Ninemeier


Lodging Industry Overview (continued.)
Hotel ownership / management
Single-unit property not affiliated with any brand
Single-unit properties affiliated with a brand
Multi-unit properties affiliated with the same brand
Multi-unit properties affiliated with the same brand
Multi-unit properties affiliated with different brands
Multi-unit properties operated by the brand or others
Multi-unit properties owned by the brand

Hayes/Ninemeier


Figure 1.7: Hotel Ownership / Management Alternatives
Hotel property
Affiliation
Ownership
Franchise
Independent
Operation Independent
Franchise
company
(Franchisor)
Franchise Management
company
company
(Franchisor)

Hayes/Ninemeier
Non-Franchise
Independent
Independent
Management
company


Hotel Organizational Structures
Small Hotel (75 rooms)
Figure 1.8: Organizational Chart for Small (75 Rooms),
limited-service hotel
Bookkeeper
/Accountant
Manager
Custodial
personnel
Hayes/Ninemeier
Housekeeping
personnel

Hotel Organizational Structures (continued.)
Large Hotel (350 rooms)
Figure 1.9: Organizational Chart for Large (350 rooms),
full-service hotel
Administrative
assistant
F&B
Controller
director
G.M.
Director
H.R.
of sales &
Manager marketing

Hayes/Ninemeier
Assistant G.M.
Front
Executive
office
housekeeper
manager
Chief
engineer


Hotel Departments
Line & staff departments
Line
department
Staff
department
Those directly involved in the

chain of command
.
Directly responsible for revenues
- Front Office & Food / Beverage
Also responsible for property operations
- Housekeeping, Maintenance, & Engineering
Providing technical, supportive assistance to
support line decision-makers
Making recommendations to (but not decisions for)
line decision-makers
- Purchasing, human relations, and accounting

Hayes/Ninemeier


Hotel Departments (continued.)
Revenue and cost centers
Revenue
center
Cost center
A hotel department that generates revenue

- Front office & food / beverage departments
- Also revenues from telephone services, space
rental and fees from parking garages, vending
machines, and golf courses
A hotel department which incurs costs in support
of a revenue center
- Marketing, maintenance, accounting, human
resources, & security departments

Hayes/Ninemeier

Lodging is a Service Business

Successful hotels greatly emphasize serving their guests to
the best possible extent.
The brand name a hotel uses is not the most important
factor in a hotel
s success.
When hotels put guestsneeds first, those hotels will do
well.
Consistent delivery of quality of products and services to guests
Engineering & Maintenance
must be addressed first,Facility
rather
than considering tactics to
maximize revenue; minimizing costs comes next!
Hayes/Ninemeier

Lodging is a Service Business (continued.)

Questions that must be addressed to deliver quality service:
How will we show our staff and tell them about the need for
high quality guest service?
How exactly will we evaluate the level of service quality being
provided to our guests?
What exactly are our service strategies and our service
procedures?
How will we train our staff about service concerns and the
tactics to deliver service?
How will we reinforce our service strategies?
What can we do to emphasize service as a philosophy rather
than as a program with a definite start & end time?
What can we do to excel in the guestsmoments of truth?
Hayes/Ninemeier

Current Issues confronting Hoteliers:

Operating Issues
Labor shortages
Managers should implement procedures to: a) reduce
turnover levels, b) increase productivity levels, c) recruit
from non-traditional employee labor markets.
Cost containment
Hoteliers should examine ways to reduce costs without
impacting quality.
An excessive emphasis on cutting service or product
quality will ultimately result in reduced hotel revenue.
Increased competition
Overbuilt problem
Hayes/Ninemeier

Current Issues confronting Hoteliers: Marketing

Issues
Market segmentation is increasing
Efforts to focus on a highly defined, smaller group of
travelers.
Brands overlap
The more the number of brands increase, the harder
consumers find it to differentiate between them.
Increased sophistication of consumers
Results in a more competitive selling environment for
hoteliers (e.g., online room booking)
Increased number of amenities
Various amenities (e.g., business centers) increase costs for
hotel owners yet sometimes appeal to only a small segment
of the hotel
s market.
Hayes/Ninemeier

Current Issues confronting Hoteliers: Technological

Issues
Recent technological innovations include:
Interactive reservation system

- Allows potential guests to make reservations at preferred
room rates in reduced time
Guestroom innovations
- Two (or more) telephone lines enabling Internet access /
interactive menu ordering for room service / electronic games
and guestroom checkout
Data mining technology
- Analyzing guest- (and other) related data to make better
marketing decisions
Yield management
- Matching guest demand with room rates
Hayes/Ninemeier

Current Issues confronting Hoteliers:

Economic Issues
As goes the economy, so goes the lodging industry

Impact of globalization on the lodging industry
Lodging industry is an integral part of the tourism industry
- It is affected by the extent to which travelers, both within
the country and worldwide travel
Economies of the world, the country, the state and the community
Facility Engineering & Maintenance
play on the financial success
of a lodging organization & the
individual properties which comprise it.
Hayes/Ninemeier


G.M / Rooms division M. / Front office M. / Controller /
Executive housekeeper / Catering M. / Executive steward / F &
B M. / Banquet M. / Chef / Executive chef / Food production
M. / Pastry Chef / Sous chef / Room service M. / F & B
controller / Restaurant M. / Beverage M. / Purchasing Director /
Human Resource M. / Credit M. / Executive assistant M. /
Convention M. / Marketing & sales M. / Auditor / Director of
security / Convention services director / Resident M / Chief
engineer
Typical Multi-Unit Positions: Area G.M. / Regional G.M. /
Director of Training / Vice president, finance / Vice president,
real estate / Director of franchising
Hayes/Ninemeier

Professional Career Opportunities in Lodging:

Get Started With Career Planning
How does one start to plan for a career in the lodging industry?
Enrolling in and graduating from hospitality-related programs
of study
Working in a variety of lodging positions (including
educational internships)
Developing a career ladder for professional development within
the lodging industry
- Working with a mentor
Obtaining suggestions by talking with G.M.s at hotels nearby
industry leaders and educators
Hayes/Ninemeier

Chapter 2:
The Hotel General Manager
Responsibilities
Investor relations
Community relations
G.M.stasks
Property
management
Brand affiliation
management
Executive Committee
development
G.M.s
The single most important human variable

affecting a hotel
s short-term profitability
Wear many hats(perform multiple tasks)

Hayes/Ninemeier

Responsibilities: Investor Relations

G.M.sability to effectively inform investors & owners about
current performance & future needs of their hotel/s
Property
s long-term success
To successfully manage owner / investor relations:
G.M.s
talents
Financial analysis ability

Proficiency in written communication
Effective public speaking / presentation skills

Hayes/Ninemeier

Responsibilities: Brand Affiliation

Management
Managing brand at the property level
Continually monitor operational standards set by the brand to
ensure property performance
Communicate effectively with franchise brand officials about
marketing & sales programs
Improve profitable operation of hotel by using activities &
programs offered by the brand
To successfully manage owner / investor relations:
G.M.s
talents
Well developed interpersonal skills

Persuasive ability
Listening skills
Effective writing ability

Hayes/Ninemeier

Responsibilities: Brand Affiliation Management

(continued)
Quality Inspection (or Assurance) scores
Result of annual (or more frequent) inspections by franchise
company
Used as measure of effectiveness of G.M., of hotel
s management
team, and of owner
s financial commitment to the property.
Ensuring franchiser-mandated standards are met by franchisee
Becoming an important example of how the G.M. interacts with
franchisers and/or management companies

Hayes/Ninemeier

Responsibilities: Community Relations

Opportunities to assist the local community
Attract new businesses
Expand tourism opportunities
Provide input regarding local business community needs
Have charity events and fundraisers at the hotel
To successfully perform community relations
G.M.s
talents
Outgoing personality
Well-developed social skills
Effective public speaking & presentation skills

Hayes/Ninemeier

Responsibilities: Executive Committee Facilitation

Functional area
Responsible for
Human Resource Manager
Hotel staffing needs
Controller
Accounting for hotel assets and liabilities
Front Office Manager
Guest services and sales
Executive Housekeeper
Property cleanliness
Food & Beverage Director
Food & beverage production & service
Security Director
Guest, employee & property safety/security
Sales & Marketing Director
Revenue production & promotions
Chief Engineer
Upkeep of hotel
s physical facility

Hayes/Ninemeier

Responsibilities: Executive Committee

Facilitation (continued)
General Manager
Human
Resource
Manager
Controller
Security
Director
Front
Office
Manager
Sales &
Marketing
Director
Executive
Housekeeper
Food &
Beverage
Director
Chief
Engineer
Typical mid-sized, full-service hotel department organizational chart

Hayes/Ninemeier

Responsibilities: Executive Committee Facilitation

(continued)
Wrong expectations regarding the G.M.
That he/she must be an expert in specific day-to-day operations of each
hotel
s department
Right expectations regarding the G.M.
That he/she works with EOC to improve skills & efficiencies of the
departments these individuals manage
That he/she assists their professional development
To successfully manage the EOC facilitation
G.M.s
talents
Good listening skills

Ability to evaluate / implement managerial training &
development program
Assisting in professional improvement & growth of EOC team

Hayes/Ninemeier

Responsibilities: Property Management

G.M. should be able to direct overall property management.
Process of planning, organizing, staffing, directing,

controlling and evaluating human, financial and physical
resources, to achieve organizational goals.
To successfully handle property management:
G.M.s
jobs
Organizational & coaching skills

Analytical & financial analysis skills
Ability to anticipate guest needs
Competitive sprit & high attention to detail

Hayes/Ninemeier


(continued)
Functional area
Purpose
Planning
To establish goals and objectives
Organizing
To maximize deployment of resources
Staffing / directing
To provide leadership
Controlling / evaluating To measure and evaluate results
Management process
Planning
Controlling & evaluating
Organizing
Staffing & Directing

Hayes/Ninemeier


(continued)
Planning
What is the goal of providing in-room, high-speed

Internet access to guests?
Organizing
How will the hotel allocate necessary dollars to

achieve this goal?
Staffing /
Directing
What needs to get done to keep staff

on task
with project completion timelines?
Controlling /
Evaluating
Hayes/Ninemeier
How will the hotel measure sales volume or reputation

value gained versus cost of providing in-room Internet
service?
Skills Development: Formal Education

Program titles
Hotel admin. / hotel & restaurant mgt. / hospitality admin. / restaurant, hotel, &
institutional mgt. / food service mgt. / hospitality business / tourism admin. /
culinary arts
Two-year degree
For whom
Designed for both traditional college students & non-traditional

working students
Wish to terminate their formal education after several years of
study
Have a B.A. degree in another subject & wish to gain
knowledge of the hospitality industry
Benefits
Highly practical & current

Practical professional instructors who may be well connected
in the community (assisting job placement)

Hayes/Ninemeier

Skills Development: Formal Education

(continued)
Four-year degree
For whom
Benefits
Wish to complete a B.A. degree

Seek to learn from a larger number of quality
faculty
Wish a
more advanceddegree than two-year
Have diverse faculty & quality facilities
Offer an excellent learning environment
Advanced degrees
Checklists
Admission requirements
Program designs
Hayes/Ninemeier

Skills Development: On-the-Job Training
OJT
Learning activities designed to enhance skills of

current employees
Offered by management with intent to improve
guest service & employee performance
Generally no charge to employee for training
OJT trends / focuses for hotel G.M.s

Impact of advancing technology
Impact of a changing workforce
Hayes/Ninemeier

Skills Development: Professional Development

Business associations
Membership benefits / activities of local business associations
(e.g., local Chambers of Commerce)
Business / skills enhancement programs
Networking opportunities
Timely publications & seminars including local economic data & best
management practices
In some cases, providing low- or no-cost training for entry-level
workers
Lobbying for business interests & facilitating public-private
employment initiatives
Updating on recent business thoughts & methods
Hayes/Ninemeier

Skills Development: Professional Development

(continued)
Trade associations
Serve certification, educational, social and legislative needs of their
members
Hold monthly and annual gatherings
Offer educational seminars / workshops
Have Trade Shows
Efficient way to see new products & service offerings of a large number
of vendors in a short time
Example of the hotel industry

Educational Institute of the American Hotel & Lodging Association
Trade publications
Current two major interests
Technology applications / human resource management
Help staying updated on current info

Hayes/Ninemeier

Chapter 3:
Management and Supervision
Skills for the G.M.
The G.M. Sets the Pace

G.M.s feelings & actions about issues will likely impact
hotel staff attitudes about those issues.
G.M.s personally direct only the work of department heads
and, perhaps, relatively few other staff.
G.M.sinteraction with department heads directly impacts
how they interact with their own staff.
Influence
Level of morale
Hayes/Ninemeier
Employee
turnover rates
Desired product
& service quality
G.M.s Must Manage: Organizational Levels

Top-Level Management (G.M.)
Middle-Level Management
(Department Heads)
Supervisory-Level Managers
(Supervisors/Managers)
Entry-Level Employees
Of resources available, people (human resources) are the
most complex and important for success!
Hayes/Ninemeier

G.M.s Must Manage: G.M. Functions

Management
Function
Planning
Organizing
Staffing
Directing
Examples of activity: Working with

department head (if applicable) to:
Develop an operating budget or a marketing plan
Assign responsibilities for an upcoming banquet or conference
event
Recruit, select, orient and train new department heads
Supervise the work of department heads
Controlling
Take corrective action(s) when budgeted financial plans are

not attained
Evaluating
Assess the extent to which long- and short-range plans were

attained

Hayes/Ninemeier

G.M.s Must Manage: G.M. Skills

Conceptual
Interpersonal
Ability to collect, interpret,

and use information logically
Learning about a new, competing
hotel opening nearby and making
future marketing decisions
accordingly
Administrative
Ability to organize and
direct required work efforts
Ability to develop policies and
operating procedures necessary
for guest safety
Hayes/Ninemeier
Skills
Ability to understand and

interact well with guests,
employees, suppliers, etc.
Technical
Ability to perform
management-specific
aspects of the job
Forecasting guest demand for
rooms and establishing room
rates, etc.
G.M.s Must Manage: G.M. Relationships

Staff members
Other hotel employees
Yesterday: dictatorial
leadership
Today: facilitators
Tomorrow: empowerment
External organization
Manage by walking
around
G.M.
Others in community
Participating in
community social events
Joining professional business and

community service organizations
Attending school & athletic

events with their children
Meeting with community

government representatives
Guests
How the hotel can meet and
exceed guest expectations
Hayes/Ninemeier

G.M.s Must Manage:

G.M. Manage in Times of Change
Relative to their counterparts yesterdayG.M.s must
Interact with a more diverse workforce
Emphasize teams rather than individual performance
Cope with fast-paced technology changes
Adjust to workplace changes (e.g., re-engineering, downsizing)
React to global challenges
Improve quality while increasing productivity
Improve ethical / social behaviors
Hayes/Ninemeier

Evolution of Traditional Hotel H.R. Practices

Traditional
Contemporary
Manager-focused work unit
Team-focused work unit
Manager is dominant
Manager is supportive
Emphasis on technical skills
Emphasis on employee facilitation skills
Manager seeks stability
Manager encourages change
Manager tells and sells personal views
Manager listens
Manager personally responsible for results
Manager shares responsibility for results
Manager personally solves problems
Team problem-solving is employed
Fear and pressure used to motivate staff
Pride, recognition, and growth are used to

motivate staff
Autocratic (dictatorial) decision style
Participative decision style
Individual behavior
Team behavior

Hayes/Ninemeier

Evolution of Traditional Hotel H.R. Practices

(continued)
Traditional
Contemporary
G.M. forces compliance
G.M. earns the team

s support
What one says is inconsistent with what

one does
What one says is consistent with what one

does
Inconsistent
moments of truth
Consistent
moments of truth
Reactive management/supervision style
Proactive management/supervision style
Bureaucratic
rituals
Flexible routines
Top down one way communication
Multi-directional communication
Hierarchy of control
Empowerment
Power
Consensus
Short-term H.R. strategies
Long-term H.R. strategies

Hayes/Ninemeier

Management Basics: Planning

Vision
What the hotel will strive to be
Mission Statement
What the hotel must do to be successful

and how this will be accomplished
Long-Range Plan
Hotel
s goal for long-range (e.g., five
year) time span
Short-Range (Business) Plan
Hotel
s goal within a one-year time span
Operating Budget
Anticipating revenues and expenses

during short-range plan implementation
Marketing Plan
What must be done to generate revenues

anticipated by the operating budget

Hayes/Ninemeier

Management Basics: Decision Making

Before making a decision
Who is the correct person to make decisions?
Will a decision about a specific issue bring the hotel closer to
attaining objectives and goals?
How will the decision affect guests?
Is there only one acceptable alternative?
How much time and effort can be spent on the decision?
How does one
s experience help with decision making?
Must the decision please everyone?
What are the ethical aspects of the decisions?
Programmed decision
Routine and repetitive decisions
made after considering policies,
procedures, or rules
Hayes/Ninemeier
Non-programmed decision
Infrequent decisions requiring
creative decision making abilities
Management Basics: Decision Making Approach

Continuum of decision making
Traditional
Manager makes
decisions
unilaterally

Hayes/Ninemeier
Recent
Manager makes
decisions after
input from
others
Contemporary
Manager allows
team to make
decisions

Management Basics: Decision Making

(continued)
Advantages
Considering broad range
of information
Generating more creative
alternatives
Whole team keenly
aware of issues and
problems
Disadvantages
Group
decision
making
process
Possible conflicts
May be forced to
take
sidesif alternative
opinions are expressed
Domination by staff
members with strongest
personalities
Achieving higher morale
Time-consuming
Easier implementation
Not applicable when fast

decisions necessary

Hayes/Ninemeier

Management Basics: Organizing Principles

Unity of command
Each employee should report
or be accountable to only
one boss for a specific
activity
Span of control
Limit to how many staff
members one supervisor can
manage effectively
Distribution of authority
Types of
authority
Used by
Advisory
Staff managers
Line
Line managers
(within departments)
Hiring and firing employees within a specific

department
Functional
Line managers (between

departments)
Executive housekeeper establishes table linen

laundry schedule with F&B dept.

Hayes/Ninemeier
Example
Develop orientation program for all hotel
employees

Management Basics: Delegation

Delegation benefits for the
G.M.
Allows the G.M. to do
most important things
first
Effective process to
train employees
Allows more work to
be accomplished
Improves controls
Hayes/Ninemeier
What work might be

delegated by the G.M.?
Work that others can
do as well as the G.M.
Work that is less
important than other
work
Work that should be
learned by more than
one person
Management Basics: Delegation (continued)

Steps in effective delegation
Organizational climate necessary for delegation
Assign specific duties & responsibilities to employees
Grant sufficient authority for carrying out assignments
Supervisor & employees agree on expected results
Communicate responsibilities to minimize confusion
Managers make feedback system to measure progress
Hayes/Ninemeier

Management Basics: Flow of Communication

Multi-directional communication
G.M.
Vertical
Comm.
Department Heads
(Executive committee)
Managers/
Supervisors
Horizontal
Comm.
Managers/
Supervisors
Employees
Formal channel (example): coaching
Informal channel (example): grapevine / rumor mills
Hayes/Ninemeier

Management Basics: Motivation

Poorly motivated
staff
Inconsistent performance for required quality or quantity standards
Guest dissatisfaction
Increased operating costs
More motivated employeesleave
Hotel suffers
Hayes/Ninemeier

Management Basics: Motivation (continued)

Strategies to motivate employees
Follow sound management advice
Effective orientation
Train correctly
Manage a professional hotel
Supervise as you want to be supervised
Encourage effective communication
Manage a friendly hotel
Help your employees succeed
Hayes/Ninemeier

Management Basics: Leadership

Effective leaders will:
implement the property
s Mission Statement
have an objective & measurable
pictureof hotel
s desired
future
help others develop the knowledge and skills needed to
attain hotel
s vision (e.g., orientation, training, and
coaching)
utilize the empowerment process
develop team of staff committed to hotel
s success
achieve a reputation for quality service consistently
delivered to guests
cultivate a reputation for fairness and honesty
Hayes/Ninemeier

Management Basics: Discipline

Discipline: activities reinforcing desired performance
or correcting undesired performance.
Steps in a progressive discipline process
Oral warning (no entry in employee
s record)
Oral warning (entry in employee
s record)
Written reprimand
Suspension for specific number of days
Discharge
Hayes/Ninemeier

Team Building Tactics

Self-directed team
To be a good team leader,

the G.M. must
More control over work

responsibilities
Have high standards and

expectations
Make work assignments

within the team
Support individual members

and maintain trusting and
respectful relationships
Schedule themselves
Practice participative
management and solicit input
from members
Evaluate each other

s work
Assign compensation
increases
Demonstrate that own personal

goals and individual team
member goals should not be
placed before team goals
Share credit for team successes

Hayes/Ninemeier

Employee Selection, Orientation, and Training

Personnel tactics checklist
Recruitment / selection tactics
General orientation tactics
Correct training
Departmental / orientation and workstation / induction tactics
Train-the-trainer tactics
On-the-job training (OJT) tactics
Supervisory / other training tactics
Training budget
Other training issues
Hayes/Ninemeier

G.M. Interactions
G.M.s never have a daily routine; every day is different
Actual daily activities undertaken by a G.M. vary from dayto-day & month-to-month as well as from property-toproperty
Daily involvement in guest relations are quite visible
G.M. is on duty eight or more hours daily and is often oncall even when not on the property

Hayes/Ninemeier

G.M. Interactions: Employees

Possible interactions with employees: positive examples
Daily conversations with long-term staff
Learning employeessuggestions about possible operating improvements
Welcoming new staff to the team
Congratulating personnel about significant events in their familieslives
Mentoring younger workers
Following employeescareers as they are promoted within the organization
Providing non-job related advice when requested
Observing employees at a company picnic enjoy themselves
Observing staff who participate in community organizations/activities
Hayes/Ninemeier

G.M. Interactions: Employees

Possible interactions with employees: negative examples
Disciplining or terminating staff
Confronting staff known to be stealing
Learning about illegal acts committed off-property by staff
Assigning work responsibilities to cover
no showemployees
Discovering employee
sabotage
Supervising staff violating hotel policies, requirements, and rules.
Comforting an employee whose child has passed away
Observing an intoxicated employee attempting to come to work
Explaining to staff why they did not get promotions they sought
Hayes/Ninemeier

G.M. Interactions with Guests

Possible interactions with guests: positive examples
Interacting with frequent guests
Receiving spontaneous
Thank You Notesfrom happy guests
Observing hotel guests celebrate significant family / professional
occasions
Providing service / assistance to guests
Receiving input from guests who genuinely want the hotel to be
successful
Interacting with guests as peers at community / professional meetings
Providing accommodations to guests stranded by adverse travel
conditions
Receiving guest input about hospitable staff members
Interacting with frequent guests
Hayes/Ninemeier

G.M. Interactions with Guests

Possible interactions with guests: negative examples
Interacting with police called to hotel for disturbances or illegal guest
activities
Guest deaths in sleeping rooms or in the hotel
s public spaces
Dealing with visibly intoxicated guests
Preventing on-site prostitution
Preventing guest theft of money, products and/or services from the hotel
Preventing property vandalism
Calming irate guests stranded by adverse travel conditions
Discovering overt guest room damage
Interacting with police called to hotel for disturbances or illegal guest
activities
Hayes/Ninemeier

Chapter 4:
Human Resources
H.R. Department Roles

Line managers
Making final employee
selection decision
Providing departmental- H.R. is both
specific orientation
line & staff
Initiating ongoing training function
Supervision activities
(e.g., performance appraisal)
H.R. specialists
Helping line managers
with H.R. related duties
- employee selection
- orientation
- training
- evaluation
- compensation
G.M. must define authority boundaries

between line- & staff managers.
Hayes/Ninemeier

H.R. Department Roles (continued)

How H.R. personnel assist in hotel
s overall operation
Implementing policies to effectively recruit, select, motivate, and retain
the most qualified management and non-management staff
Developing and delivering orientation, safety, security, supervisory, and
some department-specific training programs
Developing and communicating H.R. policies that are equitable and fair
to all employees while protecting the rights of the hotel
Interpreting, implementing, and enforcing the ever-increasing body of
laws and regulations
Helping to maintain appropriate standards of work life quality and
ethical business policies and practices
Hayes/Ninemeier

Staffing the H.R. Department

Job descriptions
Job specifications
A list of personal qualities
necessary for successful
performance of the tasks required
by the job description
A list of tasks that an

employee in a specific
position must be able to
perform effectively
Statements about duties,
responsibilities, working
conditions & specific job
activities
Example: H.R. Director
(recruitment, selection,
evaluation, promotion)

Hayes/Ninemeier
Two
staffing
tools
Statements about knowledge,

skills, education, physical &
personal characteristics
Example: H.R. Director
(considerable knowledge of
principles & practices of
H.R. management)

Legal Aspects of H.R.: Employee Selection

Bonified Occupational Qualifications (BOQs):
Qualifications to perform a job that are judged reasonably
necessary to safely or adequately perform all tasks within that job
Legitimate BOQs
Education or certification requirements
Language skills
Previous experience
Minimum age (for jobs such as waitress or bartender)
Physical attributes (amounts able to be lifted, carried etc.)
Licensing
Hayes/Ninemeier


(continued)
Tools to screen employee applicants
Employment
applications
Only provide info directly relating to the job

Demographic info, employment history, educational
background, criminal history, employment status, references,
drug testing
Interviews
Race, religion and physical traits should not be asked

Age may be asked only for the purpose of legal requirements
Testing
Other
Follow strict state guidelines and requirements for preemployment drug testing
Obtain applicant
s permission in writing for background and
reference checks

Hayes/Ninemeier


(continued)
Equal Employment Opportunity Commission:
Employers cannot discriminate against employees on the basis of race,
color, religion, sex or national origin.
Americans with
Disabilities Act (1990)
Age Discrimination in
Employment Act (1967)
Immigration Reform &
Control Act (1987)
Prohibits discrimination against job

candidates with disabilities
Protects individuals 40 yrs and older
Prohibits hiring illegal immigrants
Protects young workers from

Fair Labor Standards Act
employment interfering with education
(1938)
or that is detrimental to health
Hayes/Ninemeier

Legal Aspects of H.R.: Employment Relationships

At-willemployment
Employment agreement
Employers can hire or

terminate any employees
with or without cause at
any time
Document specifying
the terms of the employer
employee work
relationship
Employees can elect to

work for the employer
or terminate the work
relationship anytime
Indicates rights and

obligations of both
parties

Hayes/Ninemeier

Legal Aspects of H.R.: Workplace Laws

Sexual harassment
One cannot ask favors of a subordinate in exchange for employment
benefits; neither can one punish an employee if an offer is rejected.
A G.M. should follow strict zero tolerance policy & procedures
- issuing of appropriate policies
- conducting applicable workshops
- developing procedures to obtain relief
- developing written protocols for reporting
- investigating & resolving incidents & grievances
Family & Medical Leave (1993)

Hotels (employing 50 or more staff) should provide up to 12 weeks of
leave (unpaid) to an employee for a birth, adoption of a child or serious
illness of immediate family members.
Hayes/Ninemeier

Legal Aspects of H.R.:

Workplace Laws (continued)
Compensation
The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime work
rates, and equal pay regardless of gender.
Employee performance
Employee evaluation (assuring work performance [nothing else] forms the basis
for employee evaluations)
Discipline (effectively communicating and consistently enforcing workplace rules
and policies)
Termination (preventing unacceptable termination of employee/s)
Unemployment issues
Unemployment insurance (allowing temporary financial benefits to employees
who have lost jobs)
Unemployment claim (asserting the worker is eligible for unemployment

benefits)
Hayes/Ninemeier

Legal Aspects of H.R.:

Workplace Laws (continued)
Employment records
Selected employee records should be maintained.
Examples of record keeping:
- Department of Labor records (e.g., employee
s name, address, gender, job
title, work schedule, hourly rate, regular and overtime earnings, wage
deductions and payday dates)
- any deductions from wages for meals, uniforms, or lodging
- amount of tips reported (for tipped employees)
- covered leave and amount of leave for eligible employees
(Family & Medical Leave Act)
- employment eligibility verification (Immigration Reform & Control Act)
- personnel matters & benefit plans (Age Discrimination & Employment Act)
Hayes/Ninemeier

H.R. Department at Work: Recruitment

Internal recruiting
External recruiting
Focusing on internal
applicants for vacant
positions
Promotion from within

Alerting friends and
Recruitment
relatives of current
methods
employees
Recruitment is not solely
the job of H.R. department
Current staff can impact
hotel
s turnover rate
Hayes/Ninemeier
Hiring from outside

sources
Newspaper and other
media advertisements /
job fairs / executive
search firms / recruiting
at schools /
help
wantedsigns
Attracting external
candidates

H.R. Department at Work: Selection

Selection:
Evaluating job applicants to determine those more qualified
(or potentially more qualified) for positions.
Selection devices
Preliminary screening (reviewing application)
Employment interviews
Employment tests
Reference checks
Drug tests
Hayes/Ninemeier

H.R. Department at Work: Orientation

Orientation:
Providing basic information about the hotel which must be known by all its
employees.
Goals
Reducing anxiety
Improving morale
Reducing turnover
Providing consistency
Developing realistic
expectations

Hayes/Ninemeier
Contents
Hotel overview
(mission statement)
Guest service / relations training
Emphasis on teamwork
Policies and procedures
including handbook
Compensation and benefits
Guest safety & security
Employee & union relations
Property tour
H.R. Department at Work: Training

Training is absolutely critical to the hotel
s success !
Improve knowledge or skills of staff
New employees and experienced staff need training
Ongoing professional development can motivate staff and
help employeesadvancement opportunities
Implement
train the trainerprogram
Group training
Effective when several (or more)
staff must learn the same thing
Use of a role-play (e.g., upselling
training for front desk agents)
Hayes/Ninemeier
Individualized training
One-to-one training method
Mainly responsible for
individualized line departments
H.R. Department at Work:

Performance Evaluation
Goals
Determine where staff can improve performance

Assess eligibility for pay raises and promotions
Improve morale
Assure legal compliance
H.R.
Dept.
Roles
Develop policies & procedures for property-wide system

Communicate these policies & procedures to all staff
Address and resolve employee concerns as they arise
File performance evaluation results in employee records

Hayes/Ninemeier


Performance Evaluation (continued)
Steps of performance appraisal system
Performance standards are established for each position
Policies (e.g., frequency of rating) are established
Data is gathered about employee performance
Raters must evaluate performance
Discuss performance evaluation with employees
Evaluation information is filed
Hayes/Ninemeier

The H.R. Department at Work: Compensation

Compensation:
All financial & non-financial rewards given to managers & nonmanagement staff in return for their work.
Direct financial compensation
Salary / wages
Indirect financial compensation

Benefits (health insurance, paid
vacations, etc.)
Effective compensation programs should be:

Legal / fair / balanced / cost effective / viewed as reasonable by staff
Establish pay for specific positions based on:

What other employers attempting to attract the same applicants pay.
What employees working on different jobs in the hotel are paid.
What other employees working on same jobs within the hotel are paid.
Hayes/Ninemeier


Employee Safety & Health
Work-related accidents & illnesses
Work to be done
Working conditions
e.g., cooks using knives
e.g., greasy floors in kitchen
H.R. staff assistance for health related activities

Developing and selecting programs to help employees cope with stress
Developing procedures applicable to workplace violence
Communicating updated info about HIV in the workplace
Providing info about cumulative trauma disorders
Hayes/Ninemeier


Workforce & Work Quality Improvement
Professional development
Cultural diversity
Continuous quality
improvement
Hayes/Ninemeier
T
E
C
H
N
I
Q
U
E
S
Improving
work
quality

Chapter 5:
The Controller

Hayes/Ninemeier

Accounting
Controller: individual responsible for recording, classifying, and
summarizing the hotel
sFacility
business
transaction.
Purpose of bookkeeping
Record and summarize financial data
Purpose of accounting
Development of systems to collect and report financial
information
Analyzing this same information
Making finance-related recommendations to assist
management decision making
Hotel
Hotel Operations
Operations Management,
Management, 1/e
1/e
Hayes/Ninemeier
Hayes/Ninemeier
2004
2004 Pearson
Pearson Education
Education
Pearson
Pearson Prentice
Prentice Hall
Hall
Upper
Saddle
River,
Upper Saddle River, NJ
NJ 07458
07458
Accounting (continued)
Centralized accounting systems
Financial management system that collects accounting data
from an individual hotel(s), then combines and analyzes the
data at a central site
Prevails in chain-operated or multiproperty hotel companies
Company will likely employ C.P.A. for data analysis
Decentralized accounting systems
Financial management system that collects accounting data
from an individual hotel site and combines and analyzes that
data at the same site.
G.M. and controller have larger role in preparing financial
documents
Hotel
Hotel Operations
Management, 1/e
1/e
Hayes/Ninemeier
Hayes/Ninemeier
2004
2004 Pearson
Pearson Education
Education
Pearson
Pearson Prentice
Prentice Hall
Hall
Upper
Saddle
River,
NJ 07458
07458
Revenue Forecasting: Rooms Revenue

Rooms revenue forecast should include at minimum:
Rooms available for forecasted period
Estimated rooms for the period
Estimated occupancy rate for period
Total rooms sold / total rooms available = Occupancy percent (%)
Estimated ADR (average daily rate) for period
- Total room revenue / total number of rooms sold = ADR
RevPar (revenue per available room) for forecasted period
- Occupancy % X ADR = RevPar
Hotel
Hotel Operations
Management, 1/e
1/e
Hayes/Ninemeier
Hayes/Ninemeier
2004
2004 Pearson
Pearson Education
Education
Pearson
Pearson Prentice
Prentice Hall
Hall
Upper
Saddle
River,
NJ 07458
07458
Revenue Forecasting: Food & Beverage Revenue

Number of guest rooms sold directly impacts amount of
F&B sales volume
Controller will forecast sales generated from:
- Room service
- Banquets
- Meeting room F&B revenue
- Audio visual equipment rental
- Service charges
Hotel
Hotel Operations
Management, 1/e
1/e
Hayes/Ninemeier
Hayes/Ninemeier
2004
2004 Pearson
Pearson Education
Education
Pearson
Pearson Prentice
Prentice Hall
Hall
Upper
Saddle
River,
NJ 07458
07458
Revenue Forecasting: Other Revenue

Typical examples of other revenue sources include:
Pay-per-view movies
Parking charges
Internet access charges
Gift shop sales of newspaper / cigarettes / candy / lotions / pop / etc
Telephone (local / long distance calling)
Guest laundry
Coat check fees
Golf fees
Tennis fees
Health club usage fees
Pool fees
Hotel
Hotel Operations
Management, 1/e
1/e
Hayes/Ninemeier
Hayes/Ninemeier
2004
2004 Pearson
Pearson Education
Education
Pearson
Pearson Prentice
Prentice Hall
Hall
Upper
Saddle
River,
NJ 07458
07458
Budgeting
Important function of budget
Allowing management to anticipate / operate for future business
conditions
Providing communication channel whereby hotel objectives are
passed to various departments
Encouraging department managers who have participated in
budget preparation to establish own operating objectives /
evaluation techniques / tools
Providing G.M. with reasonable estimates of future expense
levels and serving as tool for determining future room rates
Helping controller & G.M. to periodically evaluate hotel and its
progress toward financial objectives
Hotel
Hotel Operations
Management, 1/e
1/e
Hayes/Ninemeier
Hayes/Ninemeier
2004
2004 Pearson
Pearson Education
Education
Pearson
Pearson Prentice
Prentice Hall
Hall
Upper
Saddle
River,
NJ 07458
07458
Budgeting (continued.)
Long-range
budgets
Encompass relatively lengthy period,

generally 2-5 years or more
Useful for long-term planning, considering
wisdom of debt financing / refinancing and
scheduling of capital expenditures
Annual
budgets
Must be produced by individual hotels and

submitted to central office for review in large,
multiunit hotel companies
Developed to coincide with calendar year
Monthly
budgets
Helps determine whether maintaining progress

toward goals developed in annual budget
Great use for seasonal hotel
Refer to Figure 5.1 (Waldo hotel property
operations & maintenance department
operating budget for January)
Hotel
Hotel Operations
Management, 1/e
1/e
Hayes/Ninemeier
Hayes/Ninemeier
2004
2004 Pearson
Pearson Education
Education
Pearson
Pearson Prentice
Prentice Hall
Hall
Upper
Saddle
River,
NJ 07458
07458
Financial Statements: Income Statement

Key financial documents
Income statement
Balance sheet
Cash flow statement
Income statement
Known as profit and loss statement
Lists hotel
s revenues, expenses, GOP, & fixed charges for
specific time (month, fiscal quarter, or year)
In no case should this period exceed middle of next
reporting period
Hotel
Hotel Operations
Management, 1/e
1/e
Hayes/Ninemeier
Hayes/Ninemeier
2004
2004 Pearson
Pearson Education
Education
Pearson
Pearson Prentice
Prentice Hall
Hall
Upper
Saddle
River,
NJ 07458
07458

Figure 5.2: Income Statement Information
This period
s actual
Less
Equals
Less
Equals
Less
Equals
Revenues
Direct operating expense
Department operating income
Overhead (undistributed) expense
Net income (GOP)
Fixed expense
Income before taxes
G.M. can answer: How did hotel perform during this period?
Hotel
Hotel Operations
Management, 1/e
1/e
Hayes/Ninemeier
Hayes/Ninemeier
2004
2004 Pearson
Pearson Education
Education
Pearson
Pearson Prentice
Prentice Hall
Hall
Upper
Saddle
River,
NJ 07458
07458
Figure 5.3: Tricolumned Income Statement
This
period
s
actual
This
period
s
budgeted
Last year
same period
actual
Revenues
Less
Direct operating expense
Equals
Department operating income
Less
Overhead (undistributed) expense
Equals
Net income (GOP)
Less
Fixed expense
Equals
Income before taxes
G.M. can answer:

Hotel performance during this period?
Hotel performance compared with performance estimate (budget)?
Where did estimates vary significantly?
How did hotel perform compared with same period last year?
Where were significant changes from last year evident?
Hotel
Hotel Operations
Management, 1/e
1/e
Hayes/Ninemeier
Hayes/Ninemeier
2004
2004 Pearson
Pearson Education
Education
Pearson
Pearson Prentice
Prentice Hall
Hall
Upper
Saddle
River,
NJ 07458
07458

Functions of balance sheet
Provides a point-in-time statement of overall financial
position of hotel
Snapshotof financial health of hotel

Capture the financial condition of hotel on day it is produced
Not telling how profitable the hotel was in given accounting
period
Limitation of balance sheet
Of all assets, none consider relative value / worth of staff,
including the G.M, actually operating hotel
Value of experienced, well-trained staff is not quantified.
Hotel
Hotel Operations
Management, 1/e
1/e
Hayes/Ninemeier
Hayes/Ninemeier
2004
2004 Pearson
Pearson Education
Education
Pearson
Pearson Prentice
Prentice Hall
Hall
Upper
Saddle
River,
NJ 07458
07458
Financial Statements: Balance Sheet

Figure 5.9: Accounts receivable aging report
Assets
Cash
$75,000
Accounts receivable
50,000
Inventories on-hand
25,000
Prepaid expenses
10,000
Total assets
Property and equipment
(Less accumulated depreciation)
Net property and equipment
Total assets
Hotel
Hotel Operations
Management, 1/e
1/e
Hayes/Ninemeier
Hayes/Ninemeier
$160,000
$7,000,000
500,000
6,500,000
$6,660,000
2004
2004 Pearson
Pearson Education
Education
Pearson
Pearson Prentice
Prentice Hall
Hall
Upper
Saddle
River,
NJ 07458
07458
Financial Statements: Balance Sheet

Figure 5.9: Accounts receivable aging report (continued.)
Liabilities and Ownersequity
Current liabilities
Accounts payable
Wages payable
Total current liabilities
$75,000
25,000
$100,000
Long-term liabilities
Mortgage payable
$6,300,000
Total liabilities
$6,400,000
Ownersequity
260,000
Total liabilities and ownersequity

Hotel
Hotel Operations
Management, 1/e
1/e
Hayes/Ninemeier
Hayes/Ninemeier
$6,660,000
2004
2004 Pearson
Pearson Education
Education
Pearson
Pearson Prentice
Prentice Hall
Hall
Upper
Saddle
River,
NJ 07458
07458
Financial Statements: Statement of Cash Flows

It is critical that the hotel not only is profitable, but also that it
maintains solvency.
It shows cash effects of hotel
s operating, investing, and
financing activities.
Statement of cash flows can answer to the following:
How much cash was provided by hotel
s operation during
accounting period?
What was hotel
s level of capital expenditure for that period?
How much long-term debt did hotel commit to during that
period?
Will cash be sufficient for next few weeks or will short-term
financing be required?
Hotel
Hotel Operations
Management, 1/e
1/e
Hayes/Ninemeier
Hayes/Ninemeier
2004
2004 Pearson
Pearson Education
Education
Pearson
Pearson Prentice
Prentice Hall
Hall
Upper
Saddle
River,
NJ 07458
07458

Daily
Daily Operating Statistics:

Manager
s Daily Sales Report
Controller
s office should provide G.M. with a
timely recap of prior day
s rooms, F&B & other
revenues.
Prepared from data supplied nightly by PMS.
Daily includes the following:

For room
- Number of rooms available for sale / number of rooms sold / occupancy rate /
ADR / RevPar / Other room revenue info
F&B
- Restaurant sales / bar & lounge sales / meeting room rentals / banquet sales /
other F& B revenue
For other income

- Telephone revenue / in-room movie revenue / no-show billings / other income
The more detail you desire, the longer the Daily !

Hotel
Hotel Operations
Management, 1/e
1/e
Hayes/Ninemeier
Hayes/Ninemeier
2004
2004 Pearson
Pearson Education
Education
Pearson
Pearson Prentice
Prentice Hall
Hall
Upper
Saddle
River,
NJ 07458
07458

Detailed Room Revenue Statistics
Documentation & verification of night auditor
s report is an
important function of controller
s office.
Night auditor report provides wealth of info on room sales.
Detailed room revenue report include:
Rooms available
Total rooms occupied
Rooms occupied by guest type
Occupancy percent
Total ADR
ADR by guest type
Total RevPar
Hotel
Hotel Operations
Management, 1/e
1/e
Hayes/Ninemeier
Hayes/Ninemeier
2004
2004 Pearson
Pearson Education
Education
Pearson
Pearson Prentice
Prentice Hall
Hall
Upper
Saddle
River,
NJ 07458
07458

Adjustments & allowances
Allowance &
adjustments
Reduction in sales revenue credited to guests

because of errors in properly recording sales or to
appease a guest for property shortcomings.
Figure 5.7: Adjustment Voucher

(1)
ADJUSTMENT
NO
DATE (2)
(3)
NAME
(4)
(5)
EXPLANATION
200xx
ROOM OR
ACCT.NO.
348685
(6)
SIGNATURE
Hotel
Hotel Operations
Management, 1/e
1/e
Hayes/Ninemeier
Hayes/Ninemeier
11-09-0199
(7)
2004
2004 Pearson
Pearson Education
Education
Pearson
Pearson Prentice
Prentice Hall
Hall
Upper
Saddle
River,
NJ 07458
07458

Adjustments & allowances (continued.)
Importance of completion of allowance & adjustment voucher
Employee error in charge
- Employee training program, cash sales systems, or guest service techniques
Hotel-related problems
- Equipment inspection programs, guest service training
Guest-related problems
- Total monthly Allowance & Adjustments/ total room revenue = Room
allowance & adjustment %
- This percentage varies based on hotel age, quality of staff & training
programs, & type of guest typically served
Hotel
Hotel Operations
Management, 1/e
1/e
Hayes/Ninemeier
Hayes/Ninemeier
2004
2004 Pearson
Pearson Education
Education
Pearson
Pearson Prentice
Prentice Hall
Hall
Upper
Saddle
River,
NJ 07458
07458
Internal Controls: Cash

Credit card-related techniques to defraud guests
Changing guest
s credit cards for items not purchased, then
keeping money from erroneous charge
Changing totals on credit card changes after guest has left or
imprinting additional credit card charges and pocketing cash
difference
Mis-adding legitimate charges to create higher-than-appropriate
total, with intent to keep the overcharge.
Charging higher-than-authorized prices for products/services,
recording proper price, and keeping the overcharge
Giving/selling/credit card numbers to unauthorized individuals
outside hotel
Hotel
Hotel Operations
Management, 1/e
1/e
Hayes/Ninemeier
Hayes/Ninemeier
2004
2004 Pearson
Pearson Education
Education
Pearson
Pearson Prentice
Prentice Hall
Hall
Upper
Saddle
River,
NJ 07458
07458
Internal Controls: Cash

Methods of evaluating cash control systems
Cashier training programs
Sales revenue recording systems
Cash overage/shortage monitoring systems
Enforcement of employee disciplinary procedures for
noncompliance
Hotel
Hotel Operations
Management, 1/e
1/e
Hayes/Ninemeier
Hayes/Ninemeier
2004
2004 Pearson
Pearson Education
Education
Pearson
Pearson Prentice
Prentice Hall
Hall
Upper
Saddle
River,
NJ 07458
07458
Internal Control: Accounts Receivable

Accounts receivable (AR): money owed to hotel because of sales
made on credit
Direct bill: an arrangement whereby a guest is allowed to
purchase hotel Facility
services
and products on credit
Guest seeking credit would complete a
Direct Bill
Application(Refer to Figure 5. 8)
Hotel
Hotel Operations
Management, 1/e
1/e
Hayes/Ninemeier
Hayes/Ninemeier
2004
2004 Pearson
Pearson Education
Education
Pearson
Pearson Prentice
Prentice Hall
Hall
Upper
Saddle
River,
NJ 07458
07458

Controllersjobs to establish:
which guests are allowed to purchase goods/services on
credit.
how promptly those guests will receive bills.
what is total amount owed to hotel and how long have those
monies have been owed.
A controller together with a G.M. should establish credit policies
that maximize number of guests doing business with hotel, yet
minimize hotel
s risk ofFacility
creating
uncollectable accounts
receivable.
Hotel
Hotel Operations
Management, 1/e
1/e
Hayes/Ninemeier
Hayes/Ninemeier
2004
2004 Pearson
Pearson Education
Education
Pearson
Pearson Prentice
Prentice Hall
Hall
Upper
Saddle
River,
NJ 07458
07458

(continued.)
Figure 5.9: Accounts receivable aging report
Waldo Hotel: Accounts Receivable Aging Report For January,200X
Total amount receivable $100,000.00
Number of days past due
Less than 30
30-60
60-90
90+
$50,000
$30,000
$15,000
_____
_____
_____
_____
_____
_____
_____
_____
_____
Total
$50,000
$30,000
$15,000
$5,000
% of total
50%
30%
15%
5%
Hotel
Hotel Operations
Management, 1/e
1/e
Hayes/Ninemeier
Hayes/Ninemeier
$5,000
2004
2004 Pearson
Pearson Education
Education
Pearson
Pearson Prentice
Prentice Hall
Hall
Upper
Saddle
River,
NJ 07458
07458
Internal Control: Accounts Payable

Account payable (A.P.)
Charge for goods / services used by hotel, invoiced by
vendor, not yet paid
Sum total of all invoices owed by hotel to its vendors for
credit purchases made by hotel
Four major concerns in A.P. systems
Payment of proper amounts
Payments made in a timely manner
Payment records properly maintained
Payment totals assigned to appropriate departments
Hotel
Hotel Operations
Management, 1/e
1/e
Hayes/Ninemeier
Hayes/Ninemeier
2004
2004 Pearson
Pearson Education
Education
Pearson
Pearson Prentice
Prentice Hall
Hall
Upper
Saddle
River,
NJ 07458
07458
Internal Control: Accounts Payable

(continued.)
Payment of proper amounts
Ensure legitimate invoices are paid only for amount actually due.
Invoices and payments for those invoices should be checked by at least two
people
Payments made in a timely manner

Maintains good relations with vendors by prompt payment of invoices
Take advantage of discounts offered by vendors for prompt payment
Payment records properly maintained

Create system whereby total payments to vendors match vendor billings exactly
Payment totals assigned to appropriate departments

Use a system of coding to assign actual costs to predetermined cost centers
Implement functioning expenses coding system
Hayes/Ninemeier
Hayes/Ninemeier

Pearson
Pearson Prentice
Prentice Hall
Hall
Upper
Saddle
River,
NJ 07458
07458
Internal Control: Purchasing & Receiving

Ensuring payment is made to vendors only for goods /
services actually received
Payment should be withheld if all services have not been
performed.
Before A.P. invoice is paid, check terms of sale, product
prices quoted by vendor, & list of products against actual
vendor
s invoices.
Devising payment system ensuring members of property
mgt. Team has:
- Preauthorized work
- Confirmed cost of work
- Verified work is satisfactorily completed
Hotel
Hotel Operations
Management, 1/e
1/e
Hayes/Ninemeier
Hayes/Ninemeier
2004
2004 Pearson
Pearson Education
Education
Pearson
Pearson Prentice
Prentice Hall
Hall
Upper
Saddle
River,
NJ 07458
07458
Internal Control: Inventories

Secure accurate inventory from each department where
monthly inventories are taken (refer to monthly income
statement)
Beginning period value of towel inventory
+ Towel Purchase
= Cost of Towels Available
- Ending period value of Towel Inventory
Cost of Towels used in period
Hotel
Hotel Operations
Management, 1/e
1/e
Hayes/Ninemeier
Hayes/Ninemeier
2004
2004 Pearson
Pearson Education
Education
Pearson
Pearson Prentice
Prentice Hall
Hall
Upper
Saddle
River,
NJ 07458
07458
Internal Control: Payroll

Proper payment of employeessalaries and wages is an
important function of the controller
s office
Keep detailed, department-specific (individual) payroll info.

- important due to fluid nature of labor usage in hotel
Advice to G.M. about prevailing wage rates, worker

productivity, variation from budget, and future labor needs
Hotel
Hotel Operations
Management, 1/e
1/e
Hayes/Ninemeier
Hayes/Ninemeier
2004
2004 Pearson
Pearson Education
Education
Pearson
Pearson Prentice
Prentice Hall
Hall
Upper
Saddle
River,
NJ 07458
07458
Audits
Auditor: individual conducting independent verification
of financial records.
Internal audit
Independent verification of financial records

performed by organization operating hotel
Cost-effective in multiunit hotels
External audit
Independent verification of financial records

performed by accountants employed by
organization operating hotel
Hotel
Hotel Operations
Management, 1/e
1/e
Hayes/Ninemeier
Hayes/Ninemeier
2004
2004 Pearson
Pearson Education
Education
Pearson
Pearson Prentice
Prentice Hall
Hall
Upper
Saddle
River,
NJ 07458
07458
Chapter 6:
The Front Office
Front Office Function

Front Office Manager
(FOM)
Revenue
Management
Reservations
Desk
Staff
Hayes/Ninemeier
Guest
Services
Concierge
Night
Audit
Bell
Staff

Front Office Functions With Other Positions

Revenue manager
E st a b
Reservation manager
Desk staff
Concierge
Bell staff
Night auditor
Hayes/Ninemeier
Managin
lishin
g roo
m r a te
g the res
ervation
Guest registration
a
G u e s t i nf or m
process Front Office
Manager
tion
d
e
t
a
l
s
e
s
r
e
e
c
c
e
n
ic
ro
ista
f
s
p
f
s
a
t
n
O
s
t
io
t
n
Gue
c
o
r
e
l
e F ta col
h
t
g
n
da
i
g
d
a
n
Man nting a
u
o
c
c
a
Responsibilities of Front Office

Revenue &
reservation
management
PMS & its

management
Functional
areas
Management of
guest Services
Accounting for
guests
Data
management
Hayes/Ninemeier

Front Office: The PMS & Its Management

Guest histories
Room rates,
reservations, and
room assignments
Accounting
information
PMS:
Computerized
system
Reservations
Management
information
functions
Other selected
guest services
Hayes/Ninemeier

Front Office :
Revenue & Reservations Management
To maximize
hotel
s revenue
per available
room (RevPar)
Increase
Occupancy % &
Average Daily Rate
(ADR)
Occupancy % x ADR = RevPar

To improve RevPar:
Estimate (forecast) guest demand for rooms
Practice yield management
Control occupancy

Hayes/Ninemeier

Revenue & Reservations Management:

Forecasting Guest Demand For Rooms
Knowing demand for rooms is key !
When demand for rooms is high, drive ADR
(e.g., college football game: sell-out at a high ADR)
When demand for rooms is low, drive occupancy
(e.g., night before Thanksgiving: offer lower rate)
For forecasting demand, Front Office should:
keep accurate historical records to understand past demand
know of special events or circumstances that impact future
room demand
Hayes/Ninemeier


Practicing Yield Management
Yield
Management
A strategy using demand forecasts to maximize

RevPar.
Demand for rooms > supply, sell at
rack rate
Demand for rooms < supply, offer at discounts
Yield Management strategy based on room demand

Forecasted room demand
90-100% occupancy
70-90% occupancy
50 - 70% occupancy
Rate strategy
Offer no discounts
Offer discounts up to 10%
Less than 50% occupancy

Hayes/Ninemeier


Managing Occupancy
Room availability strategies
Closed to Arrival(CTA) : Hotel declines reservation for
guests attempting to arrive on this specific date.
Minimum Length of Stay(MLOS) : Hotel declines
reservations for guests seeking to stay for fewer days than
the minimum established by the hotel.
Example: Forecasted room demand (Hotel with 300 rooms)
Friday
Saturday
Sunday
Rooms left to sell
120
25
250
Identifying Saturday as day that is CTA & MLOS of two days
to Operations
maximize
total
Hotel
Management,
1/e weekend occupancy
Hayes/Ninemeier

Managing Guest Reservations:

By Types & Delivery Methods
By reservation type
Transient sales: rooms and services sold primarily via Front
Office & its staff
Group sales: rooms and services sold primarily via Sales &
Marketing department, and given to the Front Office for recording
and servicing.
By delivery method
Global distribution system: great use by travel agents worldwide.
Franchise 800 numbers: significant source of transient room
reservations.
Internet: accuracy of current info on web-site is important.
Hotel direct: effectiveness of the telephone sales effort is important.
Walk in:
curb appealis important.
Hayes/Ninemeier

Managing Guest Reservations:

Delivery Methods (Global Distribution System)
To Make Reservations:
GDS Users
Travel agents,
or Third-party
sites
to
GDSes
Worldspan,
Amadeus,
Sabre, or
Galileo
Switches
Pegasus or
WizCom
to
Hotels
Hotel
s
Reserv.system
to
To Confirm Reservations:
Hotels
Switches
Pegasus or
WizCom
Hotel
s
Reserv.system
to
to
GDSes
Worldspan,
Amadeus,
Sabre, or
Galileo
Information Flow of the GDS

Hayes/Ninemeier
to
GDS Users
Travel agents,
or Third-party
sites

Managing Guest Services

Variety Of Guest Services
Airport transportation
Parking cars
Handling luggage
Providing directions to local attractions
Making restaurant reservations
Taking guest messages
Routing mail
Newspaper delivery
Management of safety deposit boxes
Supplying directions for areas within the hotel
Setting wake-up calls
Providing guest security via careful dissemination of guestrelated information
Handling guest concerns and disputes
Hayes/Ninemeier

Managing Guest Services: Front Desk - Arrival

Pre-arrival
Printing reg cardfor guests scheduled to arrive next day
Reg card: legal contract existing between hotel and guest
(guest name / guest address / guest telephone number / arrival date / departure
date / # of adults in the room / rate to be paid / room type / form of payment)
Bell station
Assisting guests in getting baggage into hotel and their rooms
Explaining hotel services and guest room features to guests
Valet
Bell staff should be friendly, well groomed, properly uniformed,
and respectful of guest property
Hayes/Ninemeier

Managing Guest Services: Front Desk - Arrival

(continued)
Five-step registration process
Greeting guests
Minimize wait / make guests

feel welcome
Confirming the
info on reg card
Reg card serves as the record

of guest
s stay
Securing a form
of payment
Authorize (validate) the card

at time of registration
Room
assignment
Accommodate guest preference for room

types (location, view, bed type & amenities)
Issuance of keys
Control issue of guestroom keys for guest

safety

Hayes/Ninemeier

Managing Guest Service:

Front Desk- Guest Privacy
Guest information
Without a guest
s permission, never confirm or deny that he or she is in
fact registered.
Without a guest
s permission, never release info related to his or her stay.
Always be vigilant in informing guests of any third-party info requests
regarding their stay.
Room information
Without a guest
s permission, never reveal his or her room number to
any third party.
Never perform registration tasks in ways allowing guest room info to be
overheard by others
.
Never write room numbers directly onto keys.
Never issue a duplicate room key to anyone except a registered guests.
Hayes/Ninemeier

Managing Guest Service:

Front Desk - Stay & Departure
Guest satisfaction issues
When guestsissues are handled professionally and their
legitimate complaints are treated courteously, their
experience is enhanced.
The walked guests
Apologize to guest for any inconvenience.
Clearly explain hotel
s walk policy to guest.
Offer any reasonable assistance to minimize guest difficulties.
Hayes/Ninemeier

Accounting For Guests

Front office
s accounting related tasks
Accurately collect and post charges to the guest
folios
Maintain an accurate list, by room number, of guestroom occupants
Verify accuracy of the room rates charged to guests
Confirm the check-out dates
Billing to Folio
The detailed list of a guest
s room charges as well as other
charges authorized by the guest or legally imposed by the hotel.
Appropriate guest charges incurred are posted to the appropriate
guest
s folio.
All independent supporting documentation should be thoroughly
reviewed prior to posting.
Hayes/Ninemeier

Accounting For Guests:

Room Management / Assignment
At front desk check-in
Guests present themselves to begin registration process
Special check-in areas may be available, depending on level of service and
priority of guests.
Front Desk Agent confirms status of selected room prior to room
assignment
At shelf check-in, system should allow staff to:

verify and document identification of guest to whom room is rented.
assign guests, whenever possible, to requested room type.

assure that assigned room status is
clean & vacant
.
confirm rate guest pays, prior to issuing room keys.
confirm guest
s departure date, prior to issuing room keys.
secure acceptable form of payment from guest.
Hayes/Ninemeier

Accounting For Guests: Bucket Check

Bucket
Industry term for location of actual registration cards signed by
guests at check-in
Cross referencing method
Physically verifies that info. on a guest
s registration card is
complete and matches that in the PMS
Manual procedure for assuring accuracy of:
Guest
s actual room assignment / rate to be paid / departure date /
form of payment /any other accounting-related information
Bucket check helps reduce errors related to billing guest
s folio.
Hayes/Ninemeier

Accounting For Guests: Night Audit

Night audit function: eight keys item
Posting appropriate room tax and tax rates to guest folio
Verification of accurate room status (in PMS) of all rooms
Posting any necessary adjustments or allowances to guest folios
Verification that all legitimate, non-room charges have been
posted, throughout the day, to proper guest folio
Monitoring guest account balances (e.g., guest
s credit limit)
Balancing and reconciling Front Desk
s cash bank
Updating and backing up electronic data maintained by Front
Office
Producing, duplicating and distributing all management
mandated reports (e.g., ADR, occupancy %, business source,
in-house guest lists)
Hayes/Ninemeier

Accounting For Guests: Check Out

Two essential tasks accomplished by desk agent
Settlement of guest
s bill
Confirmation of guest
s identity
Checking for late faxes / messages not yet delivered to guest
Inquiring about and returning guest belongings in hotel
s
safety deposit boxes
Posting any final charges
Producing copy of folio for guest
s inspection
Processing guest
s payment
Revising room
s status in PMS to designate room as vacant
Re-booking of guest for a future stay (selling opportunity)
Hayes/Ninemeier

Data Management: Credit Cards

Accuracy
Processing guest credit cards
Commitment to security
Credit card acceptance & processing guidelines
Confirmation that name on card matches that of individual presenting the
card for payment
Examination of card for any signs of alteration
Confirmation that card has not expired
Comparison of signature on card with signature by guest paying with that
card
Documentation (usually initialing) by employee processing the charge
Balancing and reconciling credit card charges at conclusion of each Front
Office shift
Hayes/Ninemeier

Data Management: Locking / Security Systems

Recodable
locking
system
Managing a
recodable
lock system
Increasingly utilized to ensure guest safety

Installed cost is about $300 - $500 per guest
room
Independent & stand-alone (no wiring back to
PMS is necessary)
Be trained to issue duplicate keys only to
confirmed registered guests
Maintain an accurate data system that actually
identifies registered guests and their assigned room
numbers

Hayes/Ninemeier

Data Management: Telephones

Private Branch Exchange (PBX)
Hotel internal system to process incoming, internal, and
outgoing telephone calls
Call accounting system
Records time, length, and number called, of each
telephone call made within each guestroom
Posts phone charges directly to guest
s folio when
interfaced with PMS
Wake-up calls
Voicemail
Message on hold
Hayes/Ninemeier

Data Management: Point of Sale (POS)

Point of Sale (POS)
Any sales recording system not located at Front Desk (a
location, excluding Front Desk, at which hotel goods &
services are purchased)
Mostly interfaced with the PMS
Multiple POS systems in large hotel operations
restaurants / room service / lounges / laundry / valet / shops
/ fitness centers / business centers
Ensure all legitimate purchases & charged purchases are
posted to the correct guest or non-guest folio
Hayes/Ninemeier

Data Management: In-Room Services

Games
Movies
Pay-per-view
movie system
In-room mini-bars
Interfaced with the
PMS(automatically
posted to guest
s folio)
In-room
service
video
games on
television screen
in guest room
Safes
In-room safes
for guest use
Internet
connections
Pay-to-connect
basis in guest room
Hayes/Ninemeier

Data Management: Back Office System

Back office
accounting
system
System used by the controller to prepare hotel

s
financial documents such as Balance Sheet, Income
Statement, etc.
Back office accounting system should offer:

good underlying technology
strong company behind the product, including good leadership
compatibility with popular hardware products
sizable customer base
good customization capabilities
expandability
ease of use by non-technological staff
excellent support via telephone
excellent online support
potential for PMS interface
Hayes/Ninemeier

Chapter 7:
Housekeeping
Roles of Housekeeping Dept.: Guestrooms

Public
spaces
lobby areas / public restrooms / front desk areas /

management offices / game rooms / exercise areas /
pool & spa areas / employee break rooms & locker
rooms / selected meeting & food service areas
Major Executive Housekeeper responsibilities:

Decisions about required number of cleaning employees
Frequency of cleaning

Hayes/Ninemeier


Guestroom
areas
Elevators/ corridors/ stairwells/ guestrooms
Communication role to Front Desk staff (room status info) &

Engineering / Maintenance Department ( room maintenance
issues)
Room will be assigned, when:
Properly cleaned by Housekeeping
Verified as clean by second member of Housekeeping
Room
s status has been reported to Front Desk
Hayes/Ninemeier


(continued)
Room status terminology
Room vacant, has been cleaned and can be
Clean & Vacant
assigned to guest
Occupied
On-Change
Do not disturb
Sleep-out
Stay-over
Room registered to a current guest

Room vacant but not yet cleaned
Room is occupied but not yet cleaned, due to
guest request not to be disturbed
Room reported as occupied, but room was not
used, and guest may have left
Guest will stay in room at least one more night

Hayes/Ninemeier


(continued)
Room status terminology (continued)
Due-out
Check-out
Guest has indicated that is last day he/she will use

room
Guest has departed
Out-of-order Room is not rentable, thus not assignable

Lock-out
Late checkout
Guest
s items still in room, but guest will be denied
access until management approval of re-entry
Guest has requested and has been allowed an
extension of regular check out time

Hayes/Ninemeier

Roles of Housekeeping Dept: Laundry

Laundry
areas
laundry preparation areas/ laundry supply closets/

guest linen, terry and supplies storage areas
Laundry often represents one of the hotel

s largest expenses.
Housekeeping Dept. & Executive Housekeeper

s role
Managing
On Premise Laundry (OPL)and its effective
operation

Hayes/Ninemeier

Staffing the Department

Executive Housekeeper should:
have management skills (planning, organizing, directing and
controlling departmental activities).
have commitment to cleanliness and impeccable cleaning standard.
create an appropriate inspection checklist and revise it as necessary.
know about personal administration, budgeting, laundry sanitation,
fabrics & uniforms, room cleaning chemicals and routines.
be guest oriented.
Room Inspector
s major responsibilities:
Assess quality of room cleanliness
Point out deficiencies to room attendants, get those deficiencies
corrected, & report revision of room status to Executive
Housekeeper or Front Desk
Hayes/Ninemeier

Staffing the Department (Continued)

Approaches to build highly motivated, dedicated
Room Attendants:
Treat them at all times with respect
Ensure they are supervised by excellent supervisors
Have room cleaning assignment policies perceived by them as fair
Provide excellent, ongoing training
Provide a realistic career ladder for room attendants
Enforce Housekeeping Department policies consistently and
without favoritism
Ensure room attendant safety through training and appropriate hotel
policies
Provide benefit packages that are competitive for the area
Pay fair wages
Hayes/Ninemeier

Managing Housekeeping: Safety

Housekeeping employees are
one of the hotel
s largest groups
thus
Physical nature of jobs
this group
s accident
rates generally the
highest in the hotel.
Equipment & supplies

Rule
Housekeeping employees should handle only those

machinery items and supplies they are properly
trained to handle.

Hayes/Ninemeier

Managing Housekeeping: Safety

Areas of training concern
Chemical handling
Cleaning procedures
Correct lifting techniques
Properly entering guestrooms
Contending with guestrooms containing:
firearms/ uncaged animals/ individuals perceived as
threatening/ ill or unconscious guests/ drugs and drug
paraphernalia / blood and potential bloodborne pathogens
Guest service
Guestroom security
Lost & Found procedures
Hayes/Ninemeier

Managing Housekeeping: Employee Scheduling

Scheduling the number of room attendants depends on:
size of guestrooms / amenities in rooms / actual number of rooms
to be cleaned / amount, if any, of deep cleaning
How to establish room attendant schedules
Inexperienced Executive Housekeeper relies exclusively on
minutes per room
Total # of minutes worked by room attendants / total # of guestrooms
cleaned = Minutes per room
Experienced Executive Housekeeper relies on both minutes per

room and knowledge of guests and sales patterns
Hayes/Ninemeier

Managing Housekeeping: Inventory Management

Inventory items maintained by Executive Housekeeper:
sheets (all sizes)/ pillowcases/ bedspreads/ bath towels/ hand
towels/ washcloths/ soaps/ shampoos/ conditioners/ sewing kits/
glass cleansers/ furniture polish/ acid-based cleansers/ glassware/
cups/ coffee & filters/ in-room literature/ telephone books/ pens/
paper pads
Values of monthly inventories
Check how much of each item is in use, in storage, on order
Executive Housekeeper to compute monthly
product usage
reports
Hayes/Ninemeier

Managing Housekeeping: Inventory Management

(continued)
Waldo hotel product usage report
Housekeeping
King-sized Sheets
Department:_____________________
Item:__________________________
Prepared by: ____________________
Date: __________________________
For Period: ______________________
______________________________
January 1
Count on: __________________
850 units
Plus
Purchased in month
144 unitis
Total in service
994 unitis
February 1
Less
Count on: __________________
877 unitis
Total Monthly usage
117

Hayes/Ninemeier

Managing Housekeeping: Lost & Found

Three types of unclaimed property
Mislaid property
Lost property
Owner unintentionally has left item(s)

behind
Owner unintentionally has left item(s)
behind, then forgotten it/them
Abandoned property Owner intentionally has left item(s) behind

Law and/or policy requirements:
Hotel must safeguard mislaid property until rightful owner returns
Hotel must hold lost property until rightful owner claims it
Hotel not required to find abandoned property
s owner
Property left behind in room or found in lobby to be treated as mislaid or lost
Establish how long any mislaid/lost property to be held before disposing it
Hayes/Ninemeier

Managing Housekeeping: Lost & Found

(continued)
When item is found
When returned to rightful

owner, or disposed of
Date item is found

Description of item
Location where item is
found (room #, if
applicable)
Written
Name of finder
report
Supervisor who receives
item

Hayes/Ninemeier
Date item is returned

Owner
s name/ address/
phone
Housekeeping Manager
returning item
Method of return
Date property is declared
as abandoned
Name of hotel employee
receiving abandoned
property
Facility Care & Cleansing

Public space cleaning
Forms basis for a guest
s initial impression of property
Guestroom cleaning
Effective guestroom cleaning is heart of Housekeeping
Department
Determines long-term success or failure of property
Sleeping area: the first part seen by guest when entering
room
Bathroom area: closely inspected by guests for cleanliness
Hayes/Ninemeier

Facility Care & Cleansing (continued)

G.M.sroles in facility care and cleaning
G.M.s should know what to look for when inspecting the hotel
G.M.s must inspect public space, guestroom and laundry
operation areas regularly
G.M.s should not evaluate effectiveness of their
housekeeping departments based only on lower costs per
occupied room or fewer minutes per room cleaning
(these factors are not always better!)

Hayes/Ninemeier

Laundry
Operating an effective on-premises laundryis a multistep process
Collecting
Sorting
Watching
Drying
Finishing / Folding
Delivering
Hayes/Ninemeier

Laundry: Operating an Effective OPL

(continued)
Collecting
Sorting
Washing
Dirty linen and terry should never be used as guestroom

cleaning rags.
Bloodstained linen or terry must be placed separately in a
biohazard waste bag (pre-sort in guestroom).
Biohazard waste bag should be on every housekeeping cart.
Once in OPL, laundry is sorted both in terms of fabric type

& degree of staining.
This step is the most complex part.
Monitor a: washing times, b: wash temperatures, c:
chemicals, d: agitation length and strength

Hayes/Ninemeier

Laundry: Operating an Effective OPL

(continued)
Drying
Finishing/
Folding
Storing
Delivering
Drying is simply a process of moving hot air (140-145

degrees F.) through fabrics to vaporize & remove moisture.
Fabrics that are dried must have cool-down period in the
dryer before they are removed from it
Space for finishing laundry must be adequate

Many fabrics must
restafter washing & drying
24-hr rest time for cleaned laundry
Housekeeping Dept. should maintain laundry par levels of
three times normal usage
Storage areas containing these items should be locked

Hayes/Ninemeier

Chapter 8:
Food and Beverage
Similarities: Hotel & Restaurant Foodservices

Planning issues
Plan by focus on menu
Menu focus on guestswants,
needs & preferences
Menu impacts operational factors
- layout / equipment
- labor for production, service &
clean-up
- F&B products for purchase
Emphasis on consumers
Marketing concerns
Repeat business important to
financial success

Hayes/Ninemeier
Financial concerns
All foodservice operations must
assess financial status
- Operating budget
- income statement / balance
sheet / cash flow statement
Cost control procedures

Necessity for standard
operating procedures
- Purchasing / receiving / storing
/ issuing / pre-preparation /
preparation / serving / service
Standard Operating Procedures: Cycle of F&B Product

Control
Step 1: Purchasing
Step 2: Receiving
Step 3: Storing
Step 4: Issuing
Step 5: Pre-Preparation
Step 6: Preparation
Step 7: Serving
Hayes/Ninemeier
Step 8: Service

Cycle of F&B Product Control (continued)

Step 1:
Purchasing
Step 2:
Receiving
Develop purchase specification

Supplier selection
Purchasing correct quantities
No collusion between property and supplier
Evaluation of purchasing process
Development of receiving procedures
Completion of necessary receiving reports (e.g.,
addressing financial and security concerns)
Step 3:
Storing
Effective use of perpetual & physical inventory systems

Control of product quality
Securing products from theft
Location of products within storage areas
Step 4:
Issuing
Product rotation concerns

Matching issues (issue & usage)
Purchasing as inventory is depleted

Hayes/Ninemeier

Cycle of F&B Product Control (continued)

Step 5:
Pre-Preparation
Step 6:
Preparation
Mise-en-place
Minimizing food waste / maximizing nutrient retention
Use of standardized recipes
Use of portion control
Requirements for food and employee safety
Step 7:
Serving
Timing of incoming F&B orders

Portion control
Revenue management concerns
Step 8:
Service
Revenue control concerns

Serving alcoholic beverage responsibly
Sanitation and cleanliness
F&B server productivity

Hayes/Ninemeier

Personnel Requirement Similarities:

Hotel & Restaurant Foodservices
Practice of empowerment
Transferring some decision-making
responsibility and power to front-line
employees
Enhancing service to guests and
increasing profits for the organization
To meet unanticipated guest needs effectively

Staff must be trained in standardized procedures.
Managers must provide clear direction to employees.
Managers must provide necessary resources.
Hayes/Ninemeier

Profitability Differences:
Profitability = Revenue - Expenses
Profit amounts generated by restaurant F & B is relatively
easy to calculate.
The process of allocating revenues and expenses
applicable to F & B services in a hotel is more difficult.
Costs of F & B sales is generally higher in a restaurant
than in hotel.
Hotel
s
bottom lineprofit from F & B sales is likely to be
lower than a restaurant
s.
Payroll costs (or fixed labor costs) are higher than in a
restaurant.

Hayes/Ninemeier

Marketing-related Differences:
Location within
the community
Restaurants: locations easily accessible

to potential guests
Hotels: locations most accessible to guests
desiring lodging accommodations
Location within
a hotel
Restaurants: locations easily accessible

to potential guests
Hotels: locations most accessible to guests
desiring lodging accommodations
Menu
Hayes/Ninemeier
For hotels, F& B service is viewed as an

amenity or secondary
(sale of guestrooms is primary objective)
Room Service Operations:

Profitability Concerns
Why lose
money?
Relatively few properties generate profits from room service

Very high labor costs
High expenses incurred for capital costs
- delivery carts / warming devices
Why
offered?
Service to guests
- some guests select hotels based on room service availability
Impacts hotel rating
How to
offset losses?
High expenses incurred for capital costs

- Delivery
carts
/ warming devices
Offer hospitality
suite
business
Provide hosted events

Hayes/Ninemeier

Room Service Operations:

Menu Planning Factors
Quality
Concerns
CrossSelling
Menu
Language
Less likely to oversee room service food quality

Must offer products maintaining quality during
holding and transportation to guest room
(example: problems with omelet & French fries)
Advertising availability of other hotel services

- dinner menu providing info about Sunday brunch
Language barriers for international guests

- uses of pictures and multi-lingual menu descriptions
Clearly state ordering-requirements
- minimum order charges / mandatory tipping policies

Hayes/Ninemeier

Room Service Operations: Operating Issues

An inaccurate room service order cannot be corrected quickly.
A minor problem in room service may impact guest
s perceptions about the
entire lodging experience.
Communication
Guest placing order / order taker / room service productionservice staff / room service staff
Abbreviations should be clearly understood by order taker
and food production staff
Technology
Improving the accuracy of room service orders

- electronic cash register (ECR) / point-of-sale terminal /
remote printer
Upselling
Technique
Opportunities for upselling are overlooked

Upselling increases guest check average

Hayes/Ninemeier

Room Service Operations: Within-Room Service

Training issues for room service attendants
Explaining procedures to retrieve room service items
Asking guests where room service meal should be set up
Presenting guest check and securing payment
Opening wine bottles (where applicable)
Providing an attitude of genuine hospitality
Hayes/Ninemeier

Banquet Operations: Profit Opportunities

Well-planned banquets can be profitable!
Banquet menu has higher contribution margin.
- banquets frequently celebrate special events
Forecasting & planning production, service and labor are
relatively easy.
- formal guarantee is made
- less likelihood of overproduction of food with subsequent waste
Beverage sales from hosted or cash bars increase profit.

- capable of increasing alcoholic beverage sales
Increasing market share of the
community
s banquet business
Hayes/Ninemeier
Increasing property
s
profitability
Banquet Operations: Menu Planning

Factors / concerns for planning banquet menus
Guest preferences
Ability to deliver desired quality products
Availability of ingredients required to produce the menu
Production / service staff with appropriate skills
Equipment / layout / facility design issues
Nutrition issues
Sanitation issues
Peak volume production / operating concerns
Ability to generate required profit levels
Hayes/Ninemeier

Banquet Operations: Service Styles

Butler service
Appetizers and pre-poured champagnes can be served by

service staff at a reception while guests stand.
Buffet service
Quantities of food are pre-arranged on a self-service line;

guests pass along the line and help themselves
Family style
(English style)
Platters and bowls of food are filled in the kitchen and

brought to gueststables
French service
Meals are prepared or finished at tableside by service staff:

(e.g., tossing Caesar salad / flambing entre)
Platter service
Production staff plate food in the kitchen; service staff bring it

to the table to place individual portions on guestsplates
Plated service
(American service)
Production staff pre-portion food on plates in kitchen; service

staff serve to guests

Hayes/Ninemeier

Banquet Operations: Beverage Functions

Various ways to charge for beverage
Individual
drink price
Bottle charge
Collecting cash or a ticket when each drink is sold

Charging on a by-bottle basis for each bottle consumed /
opened
Per-person
charge
Charging a specific price for beverages based on attendance

at the event
Hourly charge
Charging the host a specific price for each hour of beverage

service
Specific perevent charge
Using hours of beverage service;

charging number of drinks / hour X number of guests

Hayes/Ninemeier

Banquet Operations: Banquet Room Set-Up

Size
Timing
Determined by :
Becomes critical when:

the same room to be used
same day for different
functions
number of expected guests

local fire safety codes /
ordinances
types and sizes of tables,
chairs, other equipment
number of seats per table
required space for aisles, dance
floors, band stands, other
entertainment, head tables, etc.
reception / buffet tables
Hayes/Ninemeier
Two
critical
concerns
when large evening event

precedes following day
s
large breakfast event in
same room

Banquet Operations:
Banquet Contracts & Billing Policies
Topics in banquet contract
Last date that banquet space will be held without signed contract
Time by when a guarantee of attendance must be received
Cancellation policies
Guarantee reduction policy
Billing: amount & schedule for guest payment
Information about service of alcoholic beverages
Other information applicable to specific event
Hayes/Ninemeier

Alcoholic Beverage Service in Hotels

Good training protects guests, public and hotel
from tragedies and lawsuits
Responsible service & consumption of alcoholic beverage is an
integral part of the responsibility of all F & B managers in all
types of operations.
Train for all staff in the hotel (i.e. including non-F&B positions,
e.g. front desk, housekeeping, maintenance and/or security
staff ) to recognize and respond to visible signs of guests(nonguests
) intoxication.
Develop and implement ongoing training for responsible service
of alcoholic beverages.
Hayes/Ninemeier

Chapter 9:
Safety and Property Security
Personal Safety:
Legal Liability & Guest Safety
Safety
Protection of an individual
s physical well-being and health
Security Protection of an individual or of businessproperty or assets

Hotels are not required to ensure guest safety.
However, must exercise reasonable care for guest and
employee safety.
Hotel may be held wholly or partially liable for resulting
loss or injury if it is found that a hotel has exhibited an
absence of reasonable care for guest safety.
Hotels are not required to ensure guest safety.
Hayes/Ninemeier

Personal Safety: Staffing for Security

Operation of Safety & Security Committee
Reinforces
that:
Guest safety and hotel security is the responsibility of every
manager, supervisor, & employee of the hotel.
Employee safety training
Training employees to 1) ensure guest safety, 2) work
safely, and 3) assist hotel
s security efforts.
Employee safety training is an ongoing process
Local law enforcement
Local law enforcement officials can provide no-cost safety
and security training for employees.
Hayes/Ninemeier

Personal Safety: Safety Resources

Recodable locks
Reduce chance for guests to be victimized in their rooms
by someone who had rented the same room on a prior night
Help reduce the incident of employee theft from rooms
Surveillance systems
Use of VCR
- Recording activity at front desk, in parking areas, and near cashiers
Use of CCTV (Closed-Circuit Television)
-In a multiple-entry property where management desires to monitor
activity outside each entrance
Hayes/Ninemeier


Alarm systems
Internal
alarms
Serve to deter criminal or mischief activity

Notify an area within the hotel if alarm is activated
Protect storage areas, hotel facilities (pools, spa, and
exercise areas), and hotel and perimeter
Contact
alarms
Notify (contact) an external entity such as fire

or police departments if alarm is activated
Both federal law and local building codes mandate hotel fire alarms
Hayes/Ninemeier


Emergency Plans: the identification of a threat to the safety and
security of the hotel & hotel
s planned response to the threat
Response to events in most hotelsemergency plans
Fire / power outages / severely inclement weather / robbery
/ death or injury to a guest or employee / bomb threat /
intense negative publicity by the media
An emergency plan must be a written document, including:
Type of crisis
Who should be told when the crisis occurs
What should be done and who should do it in the crisis
Who should be informed of the results or impact of the crisis
when it is over
Where practical, hotels should practice implementation of their plan !
Hayes/Ninemeier

Personal Safety: Special Safety Issues

Swimming pools
Figure 9.1 lists ten key practices for swimming pool safety
Spas
Figure 9.2 lists ten key practices for spa safety
Parking lots
Figure 9.3 lists ten key practices for parking lot safety
Always remember how to improve guest safety and minimize the
legal liability of the hotel!
Hayes/Ninemeier

Personal Safety: Documenting Safety Efforts

All hotels should document their safety and security related
efforts!
Prepare & complete MOD checklists for each critical area
of hotel
- Appropriate frequency, content and number of checklist
should be determined
Incident reports listing the
who, what, where, and how
should be filed and maintained
Document minutes from safety and security committee
meetings, general staff meeting
s notes relevant to safety
issues, records of employee training related to safety and
security, and safety seminars attended by employees
Hayes/Ninemeier

Personal Safety:
Occupational Safety & Health Administration
OSHA regulations ensure businesses:
Provide a safe workplace for employees by complying with
OSHA safety and health standards
Provide workers with only tools and equipment that meet OSHA
specifications for health and safety
Establish training programs for employees who operate
dangerous equipment
Report to OSHA within 48 hrs of any worksite accident that
results in fatality or requires hospitalization of five or more
employees
Maintain the
OSHA Log 200(an on-site record of workrelated injuries or illness) and submit it to OSHA once per year
Hayes/Ninemeier

Personal Safety:
The Occupational Safety & Health Administration
OSHA regulations ensure businesses (continued)
Display OSHA notices regarding employee rights and safety in
prominent places within the hotel
Provide all employees access to the Material Safety Data Sheets
that provide information about the dangerous chemicals they may
be handling during work
Offer no-cost hepatitis B vaccinations for employees who may
have come into contact with blood or body fluids
Compliance with OSHA standards
Results in
Fewer accidents
Hayes/Ninemeier
lower insurance costs
healthier workforce
Property Security: Threats to Asset Security

- Internal Threats
Hotels bond those employees in a position to embezzle funds
Methods of fraud related to cashiering
Charging guests for items not purchased, then keeping the
overcharge
Changing totals on credit card charges after the guest has left or
imprinting additional credit card charges and pocketing the cash
difference
Misadding legitimate charges to create a higher-than-appropriate
total with the intent of keeping the overcharge
Voiding legitimate sales as
mistakesand keeping the cash
amount of the legitimate sale
Charging higher-than-appropriate prices for hotel goods or
services, recording the
proper
price,
then keeping the overcharge 9
Facility
Engineering &
Maintenance
Hayes/Ninemeier


- Internal Threats (continued.)
Three noncash assets most subject to employee theft:
Time
Should have strong controls in place regarding time

cards.
Company
property
Carefully screen employees prior to hiring

Reduce theft opportunities by using effective security
Treat all proven cases of similar theft in a similar
manner
Services
Monitor long-distance telephone bills generated by

each administrative telephone extension number

Hayes/Ninemeier


- External Threats
Cash
Robbery is not the occasion to attempt the protection of
cash assets.
Robbery is the time to protect staff !
During a robbery, complying with robber
s demands and
observing the robber should be the employee
s sole
concern.
If no contact alarm is installed in the cashier
s cash drawer,
an employee who is robbed should, at the earliest safe
opportunity, contact local law enforcement officials as well
as others indicated in the robbery section of the hotel
s
emergency plan.
Hayes/Ninemeier


External Threats (continued.)
Other assets: security-conscious manager:
Hang all artwork in lobbies & guest rooms with lock-down
style hangers
Avoid placing valuable decorations & dcor pieces in areas
where they can be easily taken by guests
Train room attendants to alert management if excessive
amounts of in-room items go missing from stay-over rooms
Bolt televisions securely to guestroom furniture
Train all employees to be alert regarding loss of hotel
property & to report any suspicious activity
Hayes/Ninemeier


Department-Specific Threats to Asset Security
Front Office
Largest area of security concern is fraudulent selling of
rooms
Use housekeeping discrepancy report to detect room revenue
fraud
Housekeeping
Guest-theft of housekeeping supplies
Theft from guest rooms by room attendants or other
employees
- best policy is to report the incident to local law enforcement
Hayes/Ninemeier


Department-Specific Threats to Asset Security
Food & Beverage
Hotel suppliers such as silverware and glassware taken by guests
Employees accepting kickbacks from vendors or by purchasing,
then stealing, food and beverage items intended for the hotel
Sales & Marketing
Misstating mileage traveled, clients entertained, or sales trips
taken
Maintenance & Engineering
Employee theft of hand tools and supplies
Implementing a sign-in/sign-out program for tools
Hayes/Ninemeier

Chapter 10:
Sales & Marketing

Hayes/Ninemeier

Roles of Sales & Marketing

Sales
Marketing
Activities related directly to servicing consumer

demand & booking clients
Activities designed to increase consumer awareness
& demand by promoting & advertising hotel
Roles of Director of Sales & Marketing
Identify and cultivate clients

Manage hotel
s marketing efforts
Set rates to maximize RevPar
Negotiate sales contracts on behalf of hotel
Serve as a leader to hotel
s sales & marketing team
The Front Office
Hotel
Hotel Operations
Management, 1/e
1/e
Hayes/Ninemeier
Hayes/Ninemeier
2004
2004 Pearson
Pearson Education
Education
Pearson
Pearson Prentice
Prentice Hall
Hall
Upper
Saddle
River,
NJ 07458
07458
Roles of Sales & Marketing: In the Hotel

Front office
Influence
Transient rooms
Sales & Marketing
Influence
Group sale
Tasks of Sales & Marketing staff with their group sales focus
Planning hotel
s sales and marketing strategy
Preparing and issuing sales contracts in timely manner
Maintaining accurate sales records, forecast and histories
Coordinating and communicating special client requests
with affected hotel departments
Hosting clients during their stay
Conducting site tours
Hotel
Hotel Operations
Management, 1/e
1/e
Hayes/Ninemeier
Hayes/Ninemeier
2004
2004 Pearson
Pearson Education
Education
Pearson
Pearson Prentice
Prentice Hall
Hall
Upper
Saddle
River,
NJ 07458
07458
Roles of Sales & Marketing: In the Community

Two sales opportunities
Promotion
opportunities
When DOSM and Sales team are active members

of the business community (e.g., local Chamber of
Commerce), disseminating info about hotel
s
products and services is allowed.
Networking
opportunities
Development of personal relationships for

business-related purposes will result in increased
numbers of sales calls.
- Convention and Visitors Bureau
Hotel
Hotel Operations
Management, 1/e
1/e
Hayes/Ninemeier
Hayes/Ninemeier
2004
2004 Pearson
Pearson Education
Education
Pearson
Pearson Prentice
Prentice Hall
Hall
Upper
Saddle
River,
NJ 07458
07458
Segmentation of the Sales & Marketing Dept.

Segmentation based on:
By product(s)
sold
product designations becoming

sales specialty areas
By market
(market segment)
type of guests (clients) who buy

the product
By distribution
network
howthe hotel
s sales (products)
are made (distributed)
Hotel
Hotel Operations
Management, 1/e
1/e
Hayes/Ninemeier
Hayes/Ninemeier
2004
2004 Pearson
Pearson Education
Education
Pearson
Pearson Prentice
Prentice Hall
Hall
Upper
Saddle
River,
NJ 07458
07458

Catered event
Group guest
rooms
Conferences
By
product sold
Meetings
Conventions
Hotel
Hotel Operations
Management, 1/e
1/e
Hayes/Ninemeier
Hayes/Ninemeier
Weddings and
special events
2004
2004 Pearson
Pearson Education
Education
Pearson
Pearson Prentice
Prentice Hall
Hall
Upper
Saddle
River,
NJ 07458
07458

Corporate
Business travelers (who
pay highest room rates)
Leisure
Vacations, weddings, visits
by friends and family, or
non-work related reasons
Heavy reliance on travel
By market agentsadvice
(market
segmentation) SMERF & Others
Long-term stay
Guaranteed occupancy,
ease of cleaning their
rooms, relatively
uncomplicated billing
Rooms often sold at very
low daily rates
Hotel
Hotel Operations
Management, 1/e
1/e
Hayes/Ninemeier
Hayes/Ninemeier
Social, military,
educational, religious, or
fraternal organizations
2004
2004 Pearson
Pearson Education
Education
Pearson
Pearson Prentice
Prentice Hall
Hall
Upper
Saddle
River,
NJ 07458
07458

Meeting planners
Travel agents
Representative of corporations,
groups and organizations
Using comparison-shopping
techniques
By
Influence on hotel
s
reputation
distribution
Retailers, wholesalers or both

Using Global Distribution
System
Receiving commission
(5 20 %) from hotel
networking
Consortia
Largest customers of many
hotels
Negotiated rate / blackout
dates / pick-up
Internet
Fastest growing distribution
channel
Creating homepages and
linking them to other sites
Drop-ins
Potential guest who arrives at hotel
without an appointment
Hotel
Hotel Operations
Management, 1/e
1/e
Hayes/Ninemeier
Hayes/Ninemeier
2004
2004 Pearson
Pearson Education
Education
Pearson
Pearson Prentice
Prentice Hall
Hall
Upper
Saddle
River,
NJ 07458
07458
Sales & Marketing Activities: Sales Efforts

Sales & marketing
committee
Harmonizes efforts across
department lines
Engages in long-term
planning
Ensures cooperation of all
in sales and marketing
process
Hotel
Hotel Operations
Management, 1/e
1/e
Hayes/Ninemeier
Hayes/Ninemeier
Trace
systems
Maintain record (e.g.,
demographic data) of
hotel
s past, current and
prospective clients
Help department maintain
its sales records, meet
deadlines, and plan future
activities
2004
2004 Pearson
Pearson Education
Education
Pearson
Pearson Prentice
Prentice Hall
Hall
Upper
Saddle
River,
NJ 07458
07458

The sales cycle
Pre-sale phase
Invite client to a site tour

Submit a bid
Sales phase
Complete
Request for Proposaland submit on time
Establish room rates
Prepare group contract (attrition and cancellation policy)
Forward Direct Bill application to Group
Establish group block
Detail client
s contracted requirements
Monitor client
s block
Attend pre-event sales meeting of hotel staff
Post sale phase
Write thank you note to each group

Review the final bill
Include that group in the hotel
s preferred client database
File all written reports
Hotel
Hotel Operations
Management, 1/e
1/e
Hayes/Ninemeier
Hayes/Ninemeier
2004
2004 Pearson
Pearson Education
Education
Pearson
Pearson Prentice
Prentice Hall
Hall
Upper
Saddle
River,
NJ 07458
07458

Sales lead effective DOSM should discuss the followings:
New leads uncovered since last meeting
Realistic sales potential of these leads
Who in the department is following up on leads
How leads will be pursued
What, if anything, G.M. can do to help cultivate prospect
Any sales resulting from leads discussed previously
Reserve adequate time for cold calling!
Make a sales visit / presentation to potential client without
having previously set an appointment to do so
Visit / call quality prospective clients for hotel
s rooms / services
Hotel
Hotel Operations
Management, 1/e
1/e
Hayes/Ninemeier
Hayes/Ninemeier
2004
2004 Pearson
Pearson Education
Education
Pearson
Pearson Prentice
Prentice Hall
Hall
Upper
Saddle
River,
NJ 07458
07458

Client appreciation activities
Goals
Solidify business relationship
with current clients (allow
hotel to express gratitude to
clients for current business)
Communicate to potential
clients the seriousness with
which the hotel views the
hotel / client relationship
Hotel
Hotel Operations
Management, 1/e
1/e
Hayes/Ninemeier
Hayes/Ninemeier
Examples
Gala client appreciation
event
Golfing, sporting events,
concerts, theater tickets
Gift giving
2004
2004 Pearson
Pearson Education
Education
Pearson
Pearson Prentice
Prentice Hall
Hall
Upper
Saddle
River,
NJ 07458
07458

Marketing plan development: format of marketing plan
A review of market competition
Occupancy trends /ADR trends / performance of own hotel
Competitive analysis of your competitor
Strengths / weaknesses / price structure
Competitive analysis of your own hotel
Strengths / weaknesses / price structure
Forecast of future market conditions
Estimated market growth or contraction / performance goals and objectives for
own hotel / timeline for achieving these goals and objectives
Determination of specific marketing strategies & activities
Advertising / public relations / promotions
Preparation of a marketing budget
Development of measurement & evaluation tools
Hotel
Hotel Operations
Management, 1/e
1/e
Hayes/Ninemeier
Hayes/Ninemeier
2004
2004 Pearson
Pearson Education
Education
Pearson
Pearson Prentice
Prentice Hall
Hall
Upper
Saddle
River,
NJ 07458
07458

Advertising
Types of advertising
Exterior signage
In-hotel and in-room signage and
materials
Radio or television commercials
Direct mailing
Internet banners
E-mail message
Yellow pages
Franchiser-supplied advertising
vehicles (directories, co-ops, etc.)
Billboards
Personal contact
Hotel
Hotel Operations
Management, 1/e
1/e
Hayes/Ninemeier
Hayes/Ninemeier
Effective advertising
Eye or ear catching
Memorable
Sell the hotel
s features
Cost effective
Does not become quickly outdated
Reflect positively on hotel
s image
Can be easily directed to the hotel
s
core client groups
2004
2004 Pearson
Pearson Education
Education
Pearson
Pearson Prentice
Prentice Hall
Hall
Upper
Saddle
River,
NJ 07458
07458

Promotion
Publicity
Public
Relations
(PR)
Specialpackaging of products or services

Promoted and disseminated by advertising and
publicity
Information about hotel, media-distributed free of
charge
Costs the hotel nothing
May be either good or bad
Activities ensuring hotel has a positive public image
(good citizen of the community)
Hosting charity events, contributing cash or in-kind
services, donation of hotel staff time for worthy cause
Hotel
Hotel Operations
Management, 1/e
1/e
Hayes/Ninemeier
Hayes/Ninemeier
2004
2004 Pearson
Pearson Education
Education
Pearson
Pearson Prentice
Prentice Hall
Hall
Upper
Saddle
River,
NJ 07458
07458
Internet Sales & Marketing

Online reservation system
Teaming of GDS with Internet
Impact
Travel agents: check availability, compare prices and

book hotel on-line
Online booking sites are fastest growing source of

reservations in hotel industry
Hotel
Hotel Operations
Management, 1/e
1/e
Hayes/Ninemeier
Hayes/Ninemeier
2004
2004 Pearson
Pearson Education
Education
Pearson
Pearson Prentice
Prentice Hall
Hall
Upper
Saddle
River,
NJ 07458
07458
Sales & Marketing Activities: Websites

Effective hotel websites should:
be easy to navigate.
have some level of interactivity.
be linked to appropriate companion sites (demand generator).
allow for online booking.
balance guest privacy needs with hotel
s desire to build a
customer base.
update and revise room rates easily on the website.
include a virtual tour of the property.
complement other marketing efforts.
be in language(s) of potential clients.
have website address easy to remember.
Hotel
Hotel Operations
Management, 1/e
1/e
Hayes/Ninemeier
Hayes/Ninemeier
2004
2004 Pearson
Pearson Education
Education
Pearson
Pearson Prentice
Prentice Hall
Hall
Upper
Saddle
River,
NJ 07458
07458
Internet Sales & Marketing : E-mail Systems

Traditional
communication methods
Direct mailing, telephone, fax
Emerging
communication methods
E-mail system
Advantages of e-mail systems

Inexpensive to send to many current and potential clients.
Has attachment feature function to move documents quickly.
Automatically updates user database
Can disseminate special rate, promotion, new hotel feature to
its client list
The Front Office
Hotel
Hotel Operations
Management, 1/e
1/e
Hayes/Ninemeier
Hayes/Ninemeier
2004
2004 Pearson
Pearson Education
Education
Pearson
Pearson Prentice
Prentice Hall
Hall
Upper
Saddle
River,
NJ 07458
07458
Evaluating Sales & Marketing Department:

Pace Report
Pace report
Is a document summarizing confirmed (group) sales made by
Sales and Marketing dept.
Can be prepared based on number of rooms sold, value (in
dollars) of sales made, or both
Can also include any period of time in the future
Tells hotel
s owner and management the potential sales volume
generated by Sales and Marketing department
However, does not indicate what actual sales volume should be
(STAR report does!)
Hotel
Hotel Operations
Management, 1/e
1/e
Hayes/Ninemeier
Hayes/Ninemeier
2004
2004 Pearson
Pearson Education
Education
Pearson
Pearson Prentice
Prentice Hall
Hall
Upper
Saddle
River,
NJ 07458
07458

Sample Pace Report
Waldo Hotel Group Rooms Pace Report for January, 200x
Sold this month
Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
25
450
550
650
875
1,100
1,350
1,700
500
300
850
200
Total
8,550
Hotel
Hotel Operations
Management, 1/e
1/e
Hayes/Ninemeier
Hayes/Ninemeier
Total sold YTD
Sold same month

last year
Total sold last

YTD
750
1,550
1,550
1,175
1,400
2,250
2,900
700
800
1,150
550
150
250
330
550
650
800
1,100
1,500
750
550
300
125
550
1,250
1,350
1,050
1,700
2,150
1,900
1,750
1,050
600
225
14,775
7,055
13,575
2004
2004 Pearson
Pearson Education
Education
Pearson
Pearson Prentice
Prentice Hall
Hall
Upper
Saddle
River,
NJ 07458
07458

The Smith Travel Accommodations Report (STAR)
STAR working process and preparation
Hotel voluntarily submits financial data to Smith
Smith maintains confidentiality of all individual hotel data
Combine operating data submitted by selected competitors
An individual hotel
s operating performance is compared to that
of its competitive set (understanding the competitive set is key
component of understanding STAR!)
Who are the STAR interest groups?
Hotel owners, management companies, property management,
franchisers, appraisers, financial community
Hotel
Hotel Operations
Management, 1/e
1/e
Hayes/Ninemeier
Hayes/Ninemeier
2004
2004 Pearson
Pearson Education
Education
Pearson
Pearson Prentice
Prentice Hall
Hall
Upper
Saddle
River,
NJ 07458
07458

The Smith Travel Accommodations Report (STAR)
Operating
comparison criteria
Goals
Hotel
Hotel Operations
Management, 1/e
1/e
Hayes/Ninemeier
Hayes/Ninemeier
Occupancy, ADR, RevPar, market share,

historical trends, to-date performance, state
or region
Assess performance of Sales &
Marketing department as well as the
entire property
Know the strength of hotel and Sales and
Marketing staff
s sales results, in
comparison with selected competitors.
2004
2004 Pearson
Pearson Education
Education
Pearson
Pearson Prentice
Prentice Hall
Hall
Upper
Saddle
River,
NJ 07458
07458
Chapter 11
Role of E&M Department

Goals of E&M department
Protecting and enhancing financial value of building and grounds for
hotel
s owners
Supporting efforts of all other hotel departments through timely
attention to their E&M needs
Controlling maintenance and repair costs
Controlling energy usage
Increasing pride & morale of hotel staff
Ensuring safety of those working and visiting the hotel

Hayes/Ninemeier

Role of E&M Department: Engineering

Engineering: Designing and operating the building to ensure
safe and comfortable atmosphere
Goals of E&M department
Underpowered (or overpowered) equipment
Increased building deterioration
Excessive energy usage
Higher-than-necessary operating costs

Hayes/Ninemeier

Role of E&M Department: Maintenance

Maintenance: activities required to keep a building
(physical property) & its contents in good repair.
Effective hotel maintenance must be:
Planned
Implemented
Recorded
Hayes/Ninemeier

Role of E&M Department:

Design & Renovation
Building
s
original design,
size and facilities
Quality of
construction used
in building
Finishes and
equipment specified
for installation
Affect
Property Operation & Maintenance (POM) related costs

Hayes/Ninemeier


Design & Renovation (continued.)
Building age
Building characteristics and requirements
1-3 years
Low maintenance costs incurred
3-6 years
Maintenance costs increase
6-8 years
Refurbishment required; average maintenance costs incurred
8-15 years
Minor renovation and refurbishment required
15-22 years
Major renovation as well as refurbishment required
22+ years
Restoration required; high-maintenance costs incurred
Renovation and refurbishment normally one via establishment of

an FF&E reserve
Hayes/Ninemeier


Design & Renovation (continued.)
Restoration: returning a hotel to its original (or better than original) condition
Facts:
Refurbishment and minor renovation is ongoing process in
most hotels
Major renovation should occur every six to ten years
Restoration every 25 to 50 years, typically
If restoration is not undertaken when needed, the hotel
s
revenue-producing potential will likely decline
Hayes/Ninemeier

Staffing the Department

Chief engineer
Head of E&M
In smaller hotels, hands-on role in the maintenance effort
In larger hotels, more administrative role
Maintenance Assistants
Individuals with varying degrees of skills in:
engineering / mechanics / plumbing / electricity / carpentry
/ water treatment / landscaping / grounds maintenance
Hayes/Ninemeier

Managing Maintenance:
Routine Maintenance
Day-to-day upkeep of both exterior and interior of buildings
Exterior
Lawn care, landscaping, leaf and snow removal,

window cleaning, and painting
Maintaining hotel
s exterior impacts curb appeal,
operating costs, & ultimately the building
s value
Interior
Indoor plants, interior window washing, floor

and carpet cleaning
Guestroom and public space related items

Hayes/Ninemeier

Routine Maintenance (continued.)
Two ways for implementation
Replace as
needed
Replacement plan that delays until the original part

fails or is near failure
e.g., maintenance of refrigeration compressors
Systematic
total
replacement
Replacement is based on a predetermined

schedule
e.g., maintenance of light bulbs in high-rise
exterior highway signs

Hayes/Ninemeier

Routine Maintenance (continued.)
Work order
Waldo Hotel Work Order
Work Order Number: ____(Preassigned)___ Initiated By: _______________
Date: ______________Time: ____________ Room or Location: __________
Problem Observed: ______________________________________________
Received On: ____________________ Assigned To: ___________________
Date Corrected: ___________________ Time Spent: ___________________
E&M Employee Comments: _______________________________________
Chief Engineer Comments: ________________________________________
In a well-managed hotel,
any staff seeing an area of concern can initiate a work order
chief engineer keeps a room-by-room record of replacements
or repairs made
Hayes/Ninemeier

Preventative Maintenance
Effective preventative maintenance can reduce:
Long-term repair costs by prolonging equipment life
Replacement parts costs because purchases of these can be
planned
Labor costs by allowing PM to be performed in otherwise slow
periods
Dollar amount of refunds and charge-backs due to guest
dissatisfaction
Costs of emergency repairs by minimizing their occurrence
PM is not a repair program!
Hayes/Ninemeier

Preventative Maintenance (continued.)
Sample PM task list for laundry area dryer
Daily
Monthly
Daily
Clean lint trap

Wipe down inside chamber with mild detergent
Clean and wipe dry the outside dryer shell
Vacuum the inside of dryer (upper and lower chambers)
Tighten, if needed, the bolts holding dryer to floor
Check all electrical connections
Check fan belt for wear, replace if needed
Lubricate moving parts
Check pulley alignment
Adjust rotating basket if needed
Lubricate motor bearings
Lubricate drum bearings if needed

Hayes/Ninemeier

Public space
Windows, HVAC units, furniture, lights, elevators, carpets
Carpet care is one of the most challenging PM areas
Guest room
Most important and most extensive areas for PM
Critical to sales effort, to retain guests, and to maintain the
asset
s monetary value
Hayes/Ninemeier

Food Service
Back-of-house equipment
- ovens, ranges, griddles, fryers, other production equipment
Dining space used by guests
- chairs and booths, self-serve salad or buffet areas, lighting fixtures,
guest check processing equipment
Meeting and conference rooms and equipment
Landry
Washers, dryers, folding equipment, water supply lines, drains, lighting
fixtures, temperature control units
Chemical dispenser maintenance should be an important part of the
laundry PM program.
Other equipment
Pools and spas, front desk equipment, electronic locks, exterior door
locks, motor vehicles, and in-hotel transportation equipment
Hayes/Ninemeier

Emergency Maintenance
Emergency maintenance
is unexpected
threaten to negatively impact hotel revenue
require immediate attention to minimize damage
require labor and parts that may need to be
purchased at a premium
The stronger the routine and PM programs, the fewer

dollars spent on emergency repairs!
Hayes/Ninemeier

Managing Utilities
80% of total utility costs for hotel are actually fixed
Energy costs present 3 - 10% of total operational costs,
depending on hotel
s location
E&M department should be concerned with conserving
energy and controlling utility costs
Energy management: specific policies and engineering,
maintenance, and facility design activities intended to
control and reduce energy usage.
Hayes/Ninemeier

Managing Utilities: Electricity

Electricity is most common and usually most expensive
form of energy used in hotels.
Lighting
Light levels measured in foot-candle
-The more foot-candles, the greater the illumination
In candescent lights
-Inefficient, short-life, but easy to replace
Electric discharge lights
-Longer lives, higher efficiency and low operating costs
Lighting maintenance (lamp repair, bulb change, and
fixture cleansing) must be an integral part in PM program.
Hayes/Ninemeier

Managing Utilities: Electricity (continued.)

Heating, ventilation, & air conditioning (HVAC)
Heating components
-Electricity is not cost-effective in cold climates
-Use natural gas, LPG, steam, or fuel oil
Cooling components
Effectiveness of cooling system dependent on
Original air temperature & humidity of room to be
cooled
Temperature & humidity of chilled air entering room from
HVAC
Quantity of chilled air entering room
Operational efficiency of air-conditioning equipment
Hayes/Ninemeier

Managing Utilities:Natural Gas

Usages of natural gas
Heating water for guest rooms
Powering laundry area clothes dryers
Powering plants to provide heat to guest rooms and public
space
Cooking (rapid heat production and great degree of
temperature control)
Managed properly, natural gas is an extremely safe source of
energy!

Hayes/Ninemeier

Managing Utilities: Water / Waste

Conserving water:
Reduces the number of gallon of water purchased
Reduces the amount the hotel will pay for sewage
In the case of hot water, reduces water-heating costs
because less hot water must be produced
Waste
Hotels encourage manufacturers to practice source reduction
& to implement creative programs to reduce solid waste
Reduce waste disposal costs by: recycling minimizing waste
generation & wise purchasing
Hayes/Ninemeier

Chapter 12
Franchise Agreements and
Management Contracts
The Hotel Franchise Relationship

What is franchising?
A business strategy allowing one party (the brand) to use
the logo, trademarks and operating systems of another
business entity in exchange for a fee
A network of interdependent business relationships
allowing a number of people 1) to share brand
identification, 2) to develop a successful method of doing
business, and 3) to establish a strong marketing and
distribution system.
Franchise benefits
For the franchisee, franchising helps reduce risk
-Proven operational methods are used
Franchisees and their financial capital expand the brand
faster than franchiser could do solo
Hayes/Ninemeier

Hotel Franchising: Origin & Structure

History of hotel franchising is relatively short
- First significant hotel franchising arrangement began in 1950s with
Kemmons Wilson and his Holiday Inn chain
Today hotel owners increasingly affiliate their hotels with

other hotels under a common brand name.
Company administering and directing the brand itself is
not an owner of hotels, but rather a franchise company.
Majority of franchise companies do not actually own the
hotels operating under their brand names.
-Those companies have right to sell brand name & determine brand
standards
Conflict can arise between hotel owners and brand

managers
- G.M. should balance legitimate interests of hotel and brand

Hayes/Ninemeier

Hotel Franchising:
Origin & Structure (continued.)
Figure 12.1: Ten Largest Brands
Brand
Properties
Rooms
1. Best Western International
4,008
304,664
2. Holiday Inn
1,576
295,252
3. Days Inn Worldwide
1,947
164,023
4. Marriott Hotels, Resorts & Suites
433
160,540
5. Comfort Inns and Comfort Suites
2,065
159,619
399
133,200
2,092
127,533
971
118,114
9. Hampton Inn / Hampton Inn and Suites
1,175
120,589
10.Holiday Inn Express
1,351
109,186
6. Sheraton Hotels & Resorts

7. Super 8 Motels
8. Ramada Franchise Systems

Hayes/Ninemeier

Hotel Franchising:
Governmental Regulations Related to Franchises
Federal Trade Commission (1979):
Franchise Rule requires that franchisers:
Supply potential franchisees with disclosure document at either the
first face-to-face meeting or ten business days before any money is
paid by franchisee to franchiser
Provide evidence, in writing, of any earning claims or profit forecasts
made by franchiser
Disclose number and % of franchisees achieving earnings rates advertised
in any promotional ads that include earnings claims
Provide potential franchisees with copies of basic franchise agreement
used by franchiser
Refund promptly any deposit monies legally due to potential franchisees
who elected not to sign a franchise agreement with franchiser
Do not make claims orally or in writing that conflict with written
disclosure documents provided to franchisee
Hayes/Ninemeier

Hotel Franchising:
Governmental Regulations Related to Franchises
Franchise Offering Circular (FOC) include
Name of franchiser and type of franchise it offers for sale
Business experience of franchise company
s officers
Fees & royalties that must be paid
Initial investment requirements
Rights & obligations of franchiser & franchisee
Territorial protection offered by franchiser
Required operating policies
Renewal, transfer, and termination procedures
Earnings claims
A sample franchise agreement
Specific info required by each state in which FOC is to be filed
Name and address of legal representative of franchiser
Hayes/Ninemeier

The Franchise Agreement
A hotel franchise relationship exists with a franchise agreement.
Franchise agreement: legal contract between hotel owners

(franchisee) and brand managers (franchiser), which
describes duties & responsibilities of each in the franchise
relationship
Hayes/Ninemeier

The Franchise Agreement: Major Elements

Franchise agreement includes:
Names of parties signing agreement
-Name of legal entity representing the brand as well as corporation,
partnership, or sole proprietor owning hotel
Detailed definitions
- Any definitions subject to misinterpretation by parties to the
agreement are defined.
License grant
- Description of how the owner is allowed to use the brand
s logo,
signage, and name in operating the hotel.
Term (length of agreement)

- The most common franchise agreements are written for 20 years.
- Also include windows at fifth, tenth, & fifteenth years with early outs.
Hayes/Ninemeier


Franchise agreement includes: (continued.)
Fees
- Affiliation fees / royalty fees / marketing fees / reservation fees
Reports
- Room revenue generated, occupancy levels, & occupancy taxes & ADR
Responsibilities of franchiser
- Inspection schedules, marketing efforts, & brand standards enforcement
Responsibilities of the franchisee

- Signage requirements, operational standards & payment schedules
Assignment of agreement
- Ownership transfer & its affect upon the agreement
Hayes/Ninemeier


Franchise agreement includes: (continued.)
Termination or default
- Events that permit a termination, or define a default, by either party
Insurance requirements
- Owner should provide types & amounts of required insurance
- Proof of general indemnification policies, automobile insurance, &

mandatory workerscompensation insurance
Requirements for alteration

- Rights of the franchiser to change the agreement
Arbitration and legal fees

- Responsibilities of each party related to legal disputes
Signature pages
-Authorized representative of the brand & owners of the hotel will

sign the franchise agreement
Hayes/Ninemeier

The Franchise Agreement:

Advantages to the Franchisee / Franchiser
Advantages
to franchisee
Allowing hotel owners to acquire a brand name with

regional or national recognition
Connecting the hotel to the GDS
Increasing hotel
s sales, thus its profitability
Affecting ability of hotel
s owner to secure financing
Assistance with on-site training, advice on
purchasing furnishings & fixtures, reduced operating
costs, & free interior design assistance
Advantages
to franchiser
Increasing fee payments to the brand

Growing the business (brand spread)
Helping pay for fixed overhead of operating that
brand

Hayes/Ninemeier


Selecting a franchiser
Basic considerations for a selecting a franchise brand:
Quality and experience of the brand managers
- Hotel owners, not brand managers, bear financial risk of poor brand
management
Perceived quality / service level of the brand

-Travelers associate some brands with higher quality, service levels,
and costs, than other brands.
-Franchisers offer brands at a range of quality and guest services
The amount of fees paid to franchiser

- Fees paid to a franchiser are a negotiable part of franchise agreement
Direction of the brand
Hayes/Ninemeier


Selecting a franchiser (continued.)
Clues to future success of the brand
Number of hotels currently operating under the brand name
Percent of hotels, on an annual basis, that elected to leave the brand
in the past five years
Number of new properties currently being built under the brand
s
name
The number of existing hotels converting to the brand (if
conversions are allowed)
ADR trend for the last five years in comparison to ADR trend for the
industry segment in which the brand competes
Occupancy rate trend for the last five years in comparison to the
occupancy rate trend for the industry segment in which the brand
competes
Percent of total hotel room revenue contributed by the brand
s
reservation system and percent of hotels within the brand that achieve
that average rate of contribution
Hayes/Ninemeier

Selecting a Franchiser: Franchiser Questionnaire

Figure 12.2: Franchiser Survey
Contents in franchiser questionnaire
1. Application fees
2. Area of protection
3. Recurring fees
4. Standards
5. Mandatory service programs
6. Operating performance
7. FOC
8. Fair franchising
9. Financing assistance
10. Termination
Hayes/Ninemeier

Selecting a Franchiser:
The Product Improvement Plan (PIP)
A brand conversion = reflagging
Process of changing a hotel
s flag from one franchiser to another
Conversion will always require some facility modification.
When a potential franchiser inspects a hotel property whose
owners are interested in a conversion, a PIP (product
improvement plan) will be prepared.
Estimating expenses to implement PIP is the hotel ownersjob.
PIP: document detailing property upgrades and replacements
required if a hotel is to be accepted as one of a specific
brand
s franchised properties.
Hayes/Ninemeier

Selecting a Franchiser:
Negotiating the Franchise Agreement
Franchise agreement is negotiable.
Franchise agreement tends to be written in franchiser's favor.
Owners should evaluate all components of proposed franchise
agreements.
Hotel owners have demanded that impact studies, prepared by
an independent party, be undertaken and paid for, when
appropriate, by franchiser.
G.M.s must become adept at operating hotels in best interests of
their owners, as well as in compliance with their owners
franchise agreement.
Hayes/Ninemeier

Hotel Management Company Relationship:

Management Companies
Management contract: agreement between hotel owners and hotel
management company under which, for a fee, the management
company operates the hotel.
Management companies will:
Secure, and if it has closed, reopen the hotel
Implement sales and marketing plans to maximize hotel
s
short- & long-term profitability
Generate reliable financial statements
Establish suitable staffing to maximize customer and
employee satisfaction
Show hotel to prospective buyers
Report regularly to owners about hotel
s condition
Hayes/Ninemeier

Hotel Management Company Relationship:

Management Companies (continued.)
Figure 12.3: Ten largest management companies
Properties
Get annual revenues (in

millions of $)
1. Interstate Hotels and Resorts

(with 2002 MeriStar merger)
357
2,800.0
2. Destination Hotels & Resorts
29
545.0
3. Tishman Hotel Corp.
17
521.8
4. Prime Hospitality Corp.
198
485.0
5. Lodgian
106
448.0
6. John Q. Hammonds
56
436.7
7. Kimpton Hotels & Restaurant Group
34
400.0
8. Outrigger Enterprise
39
400.0
9. Ocean Hospitalities
93
339.0
10.Sunstone Hotel Investors
52
293.0
Brand

Hayes/Ninemeier

Management Companies: Origin & Purpose

Management companies will :
Reflag hotel from lower quality brand to higher one
Reflag hotel from higher quality brand to lower one
Manage / directing major renovation of hotel
Operate hotel in a severely depressed market
Handle bankruptcy / repossession of hotel
Manage hotel that is slated for permanent closing
Manage hotel when G.M. unexpectedly resigns
Manage hotel extendedly time for owners who elect not to
become directly involved in day-to-day operations
Hayes/Ninemeier

Management Companies:
Hotel Management Company Structures
How to examine the management company
Are they first tier or second tier
By number of hotels they operate
Participation in actual risk and ownership of the hotels
they manage
- The management company is neither a partner in nor owner of hotels
it manages
-The management company is a partner (with others) in the ownership
of hotels it manages
-The management company only manages hotels it owns
-The management company owns, by itself, some of hotels it manages,
and owns a part, or none, of others it manages
Hayes/Ninemeier

Management Operating Agreement

Major elements of management agreement include:
Length of the agreement
Procedures for early termination by either party
Procedures for extending contract
Contract terms in the event of hotel
s sale
Base fee to be charged
Incentives fees earned or penalties assessed related to operating
performance
Management company investment required or ownership
attained
Exclusivity (Is the management contract company allowed to
operate competing hotels?)
Reporting relationships and requirements
Insurance requirements of the management company
Status of employees
Hayes/Ninemeier

Management Operating Agreement:

Advantages / Disadvantages to Hotel Owners
Advantages
Disadvantages
Management quality can be improved

Targeted expertise can be obtained
Documented managerial effectiveness is available
Payment for services can be tied to performance
Partnership opportunities are enhanced
The owner cannot control selection of the on-site
G.M. & other high-level managers
Talented managers leave frequently
The interests of hotel owners and the management
companies they employee sometimes conflict
The costs of management company errors are borne
by the owner
Transfer of ownership may be complicated
- High cost of buyout limits the number of potential buyers

Hayes/Ninemeier

Issues Affecting G.M.s:

Managing the Franchise Relationship
Franchise agreement will affect G.M.
s relationship with:
Hotel owner
Hotel
s franchise service director (FSD)
- Responsible for day-to-day relationship between franchiser & franchisee
- Assisting hotel
s sales effort
- Monitoring and advising about hotel
s use of reservation system
- Advising franchise on availability and use of franchiser resources
Brand (managers)
Staff
- Brand standards will affect every department in hotel.
Guests
Hayes/Ninemeier

Issues Affecting G.M.s:

Managing for a Management Company
G.M.schallenges
Career management challenges
- Long-term career advancement with management company conflicts
with desires of the hotel owners
Dual loyalty issues (owners vs. management company)

- Hotel owner
s best course of action works against the best interests of own
company.
Strained EOC relationships

Affected and concerned employees
- A new management company implements its benefit, pay, seniority,
and related employment policies in place of those of a previous
management company
Conflicts with brand managers

Hayes/Ninemeier


Hotel Management PDF

Transféré par

Informations du document

Description originale:

Titre original

Copyright

Formats disponibles

Partager ce document

Partager ou intégrer le document

Options de partage

Avez-vous trouvé ce document utile ?

Ce contenu est-il inapproprié ?

Droits d'auteur :

Formats disponibles

Hotel Management PDF

Transféré par

Droits d'auteur :

Formats disponibles

Hotel Management

Hotel Operations Management, 1/e

2004 Pearson Education

Lodging is Part of Tourism Industry:

2004 Pearson Education

Lodging is Part of Tourism Industry:

Figure 1.2: Range of lodging property alternatives

Hotel Operations Management, 1/e

2004 Pearson Education

Lodging is Part of Tourism Industry:

Fewer than 10,000 hotels

10,000 U.S. hotels

Hotel Operations Management, 1/e

2004 Pearson Education

Lodging is Part of Tourism Industry:

Hotel Operations Management, 1/e

Lodging is Part of Tourism Industry:

Hotel Operations Management, 1/e

2004 Pearson Education

Lodging is Part of Tourism Industry:

Hotel Operations Management, 1/e

2004 Pearson Education

Close Look at Lodging Organizations

2004 Pearson Education

Close Look at Lodging Organizations:

are transient business travelers

are attending a conference/group meeting

are traveling for other reasons (for example,

Hotel Operations Management, 1/e

2004 Pearson Education

Close Look at Lodging Organizations:

2004 Pearson Education

Close Look at Lodging Organizations:

2. BASS HOTELS&RESORTS, INC.

4. CHOICE HOTELS INTERNATIONAL

5.HILTON HOTELS CORPORATION

These five represent some 28 % (14,884 / 53,500 properties) of all

2004 Pearson Education

Close Look at Lodging Organizations:

Hotel Operations Management, 1/e

2004 Pearson Education

Close Look at Lodging Organizations:

Hotel Operations Management, 1/e

2004 Pearson Education

Close Look at Lodging Organizations:

Close Look at Lodging Organizations:

Hotel Operations Management, 1/e

2004 Pearson Education

Close Look at Lodging Organizations:

Those directly involved in the

Hotel Operations Management, 1/e

2004 Pearson Education

Close Look at Lodging Organizations:

A hotel department that generates revenue

Hotel Operations Management, 1/e

2004 Pearson Education

Lodging is a Service Business

2004 Pearson Education

Lodging is a Service Business (continued.)

2004 Pearson Education

Current Issues confronting Hoteliers:

2004 Pearson Education