The Hotel

Business
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DESINGED BY,
SUNIL KUMAR,
LECTURER
The Hotel Business
2
Chapter 4
The Hotel Business
Types of Lodging Businesses
Hotel Operations
The Hotel Business
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Classification of Facility
Lodging classification is based on four factors:
Section 4.1
Guest
type
Price Location
Style and
function
Classification of Facility
Section 4.1
Guest
Type
Price Location
Style and
Function
Business
Leisure
Budget
Midprice
Upscale
Resorts
Airport
Highway
Downtown
Conference
centers
All suite
Extended stay
Bed-and-Breakfast
(B&Bs)
Spas
Boutique
Vacation
Properties
Retreat centers
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The Hotel Business
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Classification of Facility
The four categories of guest
travel type or stay are:
transient guest an
individual traveler with
a reservation, staying
in a hospitality property
for a maximum of 30
consecutive days
Section 4.1
Walk-in guest
Transient guest
Corporate guest
Group guest
The Hotel Business
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Classification of Facility
The price of a room is based on a number
of factors:
Section 4.1
Location of property
Location of room
Amenities
Length of stay
Season
Types of guest
Meals
The Hotel Business
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Classification of Facility
Meal plan types include: meal plan a room rate
that includes meals
Section 4.1
European Plan (EP)
Continental Plan (CP)
Bermuda Plan (BP)
Modified American Plan
(MAP)
American Plan (AP)
The Hotel Business
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Classification of Facility
Hotels use yield
management to help
maximize revenue.
yield management a
system of maximizing
revenue through adjusting
room rates according to
demand
Section 4.1
The Hotel Business
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Classification of Facility
Calculation tools used in
yield management are:
average daily rate (ADR)
a rate based on total
sales for the day divided
by the total number of
sold rooms
Section 4.1
Average daily rate
(ADR)
The Hotel Business
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Classification of Facility
Calculation tools used in
yield management are:
occupancy percentage
(OCC%) a percentage
calculated daily and based
on the number of rooms
sold as a percentage of
the total number of rooms
available
Section 4.1
Occupancy percentage
(OCC%)
The Hotel Business
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Classification of Facility
Calculation tools used in
yield management are:
revenue per available
room (revPAR) a rate
that reflects a hotels
revenue per available
room
Section 4.1
Revenue per available
room (revPAR)
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For All Types of Travelers
Lodging accommodations come in all types and
sizes to suit the needs of many kinds of guests.

Travelers consider price, location, and style of a
property when making reservations.
Section 4.1
The Hotel Business
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What are three different types of hotel
properties?

What are the two categories of hotel guests?

What are three factors that can determine the
price of a room?
1.
2.
3.
Section 4.1
4.1
The Hotel Business
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Hotel Organization
The general manager of a
hotel is responsible for
both front-of-the-house
and back-of-the-house
operations.
front of the house
(lodging) the area in a
lodging facility that guests
view, such as the lobby
Section 4.2
back of the house
(lodging) the area in a
lodging facility where
support services take
place that guests
usually do not view
The Hotel Business
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The Rooms Division
The largest revenue center of a lodging facility is
the rooms division.

The rooms division includes the front desk,
reservations, housekeeping, guest or uniformed
services, and communications.
Section 4.2
The Hotel Business
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The Front Office
From a guest perspective, the front office is
considered the heart and soul of any property.

The primary functions of the front-desk staff are:
Section 4.2
Selling
rooms
Maintaining
accounts
Providing
guest services
The Hotel Business
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The Front Office
The sales division or the reservations staff sells
rooms during the day.

In the evening the front-desk staff assumes this
responsibility.
Section 4.2
The Hotel Business
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The Front Office
Many lodging facilities have property
management systems (PMS).

Sophisticated information technology allows the
front desk to provide better service while also
reducing costs for the property.
Section 4.2
The Hotel Business
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The Front Office
The most important task of the front-desk staff is
providing exemplary guest service.

During check-in, guests contact the front desk
with questions, requests, and special needs.
Section 4.2
The Hotel Business
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The Front Office
The night auditor is a
front-of-the-house
accounting position.
night auditor the hotel
staff member who does
the night audit and
balances the guests
accounts each evening
Section 4.2
guest service agent
(GSA) a hotel staff
member who performs all
the functions of a desk
clerk/agent, concierge,
and valet
Some properties may
employ a guest service
agent (GSA).
The Hotel Business
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The Front Office
Guests can often make reservations directly with
a property through a centralized reservation
system (CRS).
Section 4.2
The Hotel Business
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The Front Office
The housekeeping department directly affects a
guests perception of cleanliness, safety, and
security at a property.
Section 4.2
The Hotel Business
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The Front Office
Guest or uniformed
services staff members
wear the official uniform of
the hotel and are the first
people whom guests
approach upon arrival at
the property.
guests or uniformed
services staff members
in uniforms, including the
bell staff, valet, security
officers, concierge, and
door or garage attendants
Section 4.2
The Hotel Business
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The Front Office
The concierge position is
found at larger properties,
often in city or resort
locations.
concierge a hotel staff
member who helps guests
make arrangements for
transportation, restaurant
reservations, event
reservations, and
entertainment tickets, and
advises guests about
activities in the area
Section 4.2
The Hotel Business
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The Front Office
The communications department of a hotel is
another revenue center.

In-house communications can include voice
mail, fax service, e-mail, message centers, and
pagers.
Section 4.2
The Hotel Business
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Systemwide Departments
Larger hotels maintain centralized systems for
groups of units.

Employees are classified as line employees and
staff employees.
Section 4.2
Line employees are in daily
contact with guests.
Staff employees support the
front of the house; they do not
interact much with guests.
The Hotel Business
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Support Staff
Support staff in the back of the house include:
Section 4.2
Engineers
Groundskeepers
Attendants
Sales and marketing staff
Human resources staff
Support Staff
Section 4.2
Engineers
Groundskeepers
Attendants
Sales and
Marketing
Human
Resources
Oversee the hotels physical plant, buildings, and
grounds
Maintain and upgrades the exterior of the facility by
landscaping the property
Oversee recreational facilities such as pools, tennis
courts, and golf courses
Persuades guests to stay at a particular property or
chain
Oversees recruiting, selecting, training, and
compensating hotel employees
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The Hotel Business
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Support Staff
The sales force of a lodging business may
include different types of sales personnel:
Section 4.2
Sales representatives
Technical-support staff
Sales assistants
Telemarketers
Hotel Staffing
Section 4.2
General
Manager
Food & Beverage
Restaurant Lounge Banquet
Room
Service
Kitchen
Food & Beverage
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Hotel Staffing
Section 4.2
General
Manager
Front Office
Uniformed
Staff
Reservations Front Desk
House-
keeping
Security
Front Office
Concierge
Reservations
Manager
FD Manager
Executive
Housekeeper
Door Attendants Asst. FD Mgr.
Bell Captain FD Clerk
Security
Guest Service
Agent
PBX Operator
Night Auditor
Inspectors
Laundry
Room
Attendants
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Hotel Staffing
Section 4.2
General
Manager
Support Staff
Marketing Accounting
Human
Resources
Engineering
Support Staff
Sales
Marketing
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The Hotel Business
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Operating an e-tail business on an electronic channelthe
Webcan be costly, due to design, delivery, returns, and
operating expenses.

Though Many larger dot-com companies crashed in the
1990s, small stores like Harris Cyclery of West Newton,
Massachusetts, actually increase sales using a basic Web
site. Today, a third of Harriss bicycle business rides in on
the Web to get hard-to-find parts and personal service.

Describe an e-businesss home page to your class after
viewing one through marketingseries.glencoe.com.


Hotels.com books rooms at over 4,500 hotels throughout the
world. Similar hotel booking services have made it easier and
cheaper for travelers to find accommodations. These Web
sites feature photos and descriptions of rooms and amenities.
Rating systems help guests know the level of quality they can
expect in a particular destination.
Hotels Online
Online reservation services also save travelers the hassle of
calling and booking overseas rooms in different languages
and time zones.
Section 4.2
For more information, go to marketingseries.glencoe.com.
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The Hotel Business
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What are three functions of the front office?

What are examples of three uniformed
services positions?

What is the difference between line and staff
employees?
1.
2.
3.
Section 4.2
4.2
The Hotel Business
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1. Name the factors used to
classify lodging facilities.
The factors used to
categorize lodging
facilities are guest
type, price,
location, and style
of service, and
function.
1. Categories used to
describe guests by
type of stay are
business and
leisure guests.
2. Business guests
are those traveling
for business
purposes.
3.
continued
Checking Concepts
2. List the categories used
to describe types of
guests by type of stay.
3. Describe a business
guest.
The Hotel Business
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Checking Concepts
4. Identify three rates
hotels use for yield
management.
Rates used for yield
management are
average daily rate
(ADR), occupancy
percentage
(OCC%), and
revenue per
available room
(RevPAR).
4. Properties
identified by style
and function are
all-suite facilities,
extended-stay
facilities, bed-and-
breakfasts, spas,
boutique hotels,
vacation properties,
and retreat centers.
5. The positions in the
rooms division are
front-office jobs at
the front desk, in
reservations,
housekeeping,
guest and
uniformed
services, and
communications.
6.
continued
5. Identify properties by
type of style and function.
6. List three positions in the
rooms division.
The Hotel Business
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Checking Concepts
8. Discuss the importance
of the sales and
marketing staff in the
back-of-the-house
lodging operations.
Critical Thinking
Staff in uniformed
services includes
bell staff, valet
staff, concierge,
and security staff.
7.
7. Name the staff in
uniformed services.
The importance of
the sales and
marketing staff is
that they persuade
guests to stay at a
particular property
or chain. Accept all
reasonable answers
that demonstrate an
understanding of
sales and
marketing.
8.
The Hotel
Business
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The Hotel Business
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