hospitality today introduction to the hotel industry
TRANSCRIPT
Hospitality TodayIntroduction to the Hotel Industry
Competencies:
1. Explain how a hotel is organized, distinguish revenue centers from cost centers, and describe the rooms division.
2. Describe a hotel’s food and beverage division, and describe the following hotel revenue centers: telecommunications department; concessions, rentals, and commissions; and fitness and recreation facilities.
3. List hotel cost centers; describe the marketing, engineering, accounting, human resources, and security divisions; and give examples of what a hotel must do to comply with the Americans with Disabilities Act.
4. Describe hotel control systems, give examples of financial controls used in hotels, and summarize the need for (and give examples of) quality controls in hotels.
What to know……
• Organized by what the facility provides…– Food/Beverage Division– Room Division – reservations, check-in/out,
housekeeping tasks, uniformed staff, telecommunications service.
How is a Hotel Organized?
Page 188 - 189
General Manager
Front Office Housekeeping Food &
Beverage
Building
Maintenance
Revenue Centers VS. Cost Centers
Cost Centers
Marketing
Engineering
Accounting
Human Resources
Security
Revenue Centers
Rooms
Food and Beverage
Telecommunications
Concessions
Rentals
Commissions
Fitness/Recreation Facilities
Two Main Revenue Centers
A. Room Division
1. Single largest source of revenue2. Room revenue less operating expensesFor every $1.00 spent on guestrooms, 74 cents is available for
general overhead after deducting the direct rooms division expenses. (See Exhibit 3 on Page 191 – next slide)
Organization of the Rooms Divisions (See Exhibit 4)• Front Office• Reservations• Housekeeping• Uniformed Service
Two Main Revenue Centers
A. Room Division
Front Office1. The command post for processing reservations,
registering guests, settling guest accounts (cashiering), and checking out guests.
2. Distribution of mail, keys, messages and information for guests.
3. Duties include: greeting guests, establishing a method of payment, assigning rooms that are unoccupied and have been cleaned, communicating hotel facilities and surrounding community, calling a bell person.
Two Main Revenue Centers
A. Room DivisionReservations
1. Should be staffed by skilled telemarketing personnel2. Must be handled with skill and efficiency, provide
immediate and correct information3. The largest volume of customers comes from individuals
or direct inquiry. The remainder are received through the following sources:
• The hotel’s reservation system• Travel agents• Hotel representatives• The internet• Tour operators• Independent reservation systems• Airlines, cruise lines, and other transportation companies
Two Main Revenue Centers
A. Room DivisionHousekeeping
1. Responsible for cleaning the hotel’s guestrooms and public areas.
2. Includes: Executive Housekeeper, Assistant Housekeeper, Room Inspectors, Room Attendants, House person crew, Linen room Supervisor and Attendants, Laundry Employees, Personnel in charge of employee uniforms
3. Duties include: removing soiled linen and towels and replacing them with fresh ones, checking the bed and blankets for damage, making beds, emptying trash, checking for any broken appliances, damage to shades or blinds, leaky faucets, checking closets and drawers for items forgotten, cleaning the room and bathroom, replacing bathroom towels and amenities
See Page 202
Two Main Revenue Centers
A. Room Division
Measuring the Performance of the Rooms Division
Average Daily RateRooms Revenue divided by Rooms Occupied = Average Daily Rate
Monday $23,800 170 $140.00
Tuesday $30,000 185 $162.16
Wednesday $29,000 178 $162.92
3 Day Figures $82,800 533 $155.03
Two Main Revenue Centers
A. Room Division
Measuring the Performance of the Rooms Division
Occupancy PercentageRooms Occupied divided by Rooms Available =
Occupancy Percentage
Monday 170 200 85.0%
Tuesday 185 200 92.5%
Wednesday 178 200 89.0%
3 Day Figures 533 200 88.8%
Two Main Revenue Centers
A. Room Division
Measuring the Performance of the Rooms Division
Revenue Per Available Room• Occupancy Percentage divided by Average Daily Rate = Revenue Per
Available Room
Monday 85.0% $140.10 $119.00
Tuesday 92.5% $162.16 $150.00
Wednesday 89.0% $162.92 $145.00
3 Day Figures 88.8% $155.03 $138.00
Two Main Revenue Centers
A. Room Division
Uniform Services1. Also called guest service department. Includes bell
persons, concierge, transportation/valet-parking employees, and door attendants.
2. Bell person moves luggage and guest to their rooms
3. Concierge is the main source of information about the hotel.
Measuring the Performance of the Rooms Division
See Page 200
Two Main Revenue Centers
B. Food and Beverage Division
1. May produce as much or more than room division
2. Is paramount to the success of the operation
3. Not just a convenience for guests anymore.
Capture rate – the percentage of guests who eat meals at the hotel – is measured regularly by many hotels.
Two Main Revenue Centers
B. Food and Beverage Division
Catering plans food for…– Conventions and smaller hotel groups
– Local banquets
Room Service– Delivery time plays a role in quality
– Food items must be charged more for
Two Main Revenue Centers
B. Food and Beverage Division
Support and control services– Receiving clerks verify quality
– Storing supplies
– Cashiers who control the payment
– Costing and pricing menus
– Conducting monthly inventory
– Creating monthly and daily reports on food and beverage costs
Two Main Revenue Centers
B. Food and Beverage Division
Problems in Food and Beverage Operations– Long Hours of Operation
– Low check Averages
– Too many facilities
– High turnover
– Costly Entertainment
– Insufficient Marketing
Other Revenue Centers
Telecommunications Department
See Page 214 – Voice Mail, Beeper Service, Internet Service
Concessions, Rentals, and Commissions
See Page 214-215 – Gift Shops, Newsstands, Flower Shops, Laundry,
Dry Cleaning Services, Beauty salons, Jewelry stores, Secretarial Services, and even Office space.
Fitness and Recreational Facilities
See Page 215 - 216 – health clubs, spas, exercise facilities, rental bicycles, luxury spas.
Cost Centers
Marketing and Sales Division
The mission of a hotel’s marketing and sales division is to…..
1. identify prospective guests for the hotel
2. shape the products and services of the hotel as
much as possible to meet the needs of those
prospects
3. persuade prospects to become guests
Cost Centers
The marketing and sales division is charged with the responsibility of keeping the rooms in the hotel occupied at the right price and with the right mix of guests. It accomplishes this through many activities, including:
1. Contacting groups and individuals
2. Advertising in print and on radio, television, and the Internet
3. Creating direct mail and public relation campaigns
4. Participating in trade shows
5. Visiting travel agents
6. Participating in community activities
7. Arrange familiarization tours
Cost Centers
Marketing Division See Page 218
Cost Centers
Engineering Division
Takes care of the hotel’s physical plant and controlling energy costs are the responsibilities of the engineering division.
– Slow a hotel’s physical deterioration
– Preserve the original hotel image established by management
– Keep revenue-producing areas operational
– Keep the property comfortable for guests and employees
– Preserve the safety of the property for guests and employees
– Create savings by keeping repairs and equipment replacements to a minimum
Cost Centers
Accounting Division
A hotel’s accounting division is responsible for keeping track of the many business transactions that occur in the hotel.
– Forecasting and budgeting
– Managing what the hotel owns and what money is due form guests
– Controlling Cash
– Controlling costs in all areas of the hotel – revenue centers as well as cost centers and payroll
– Purchasing, receiving, storing, and issuing operating and capital inventory such as food and beverages, housekeeping supplies, and furniture
– Keeping records, preparing financial statements and daily operating reports, and interpreting these statements and reports for mangement
Cost Centers
Human Resources Division
Security Division• Security Officers – rooms, parking areas, pool, bars,
restaurants, shopping areas, etc.
• Equipment – two-way radios, closed-circuit tv; motion sensors, elevators, smoke detectors, fire-alarms, interior/exterior lighting.
• Master keys – to guestrooms, storerooms, and offices at all times.
• Safety procedures – fire, bomb threats, terrorism, etc.
• Identification procedures – photo identification for all employees, name tags, etc.