Transcript Ch. 3 The Lodging Industry - East Aurora School District 131

Ch. 3
The Lodging
Industry
Understanding Lodging
3.1
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A Brief History of Lodging in the
U.S.: Planes, Trains and
Automobiles
Lodging industry in the U.S. has always been
strongly influenced by changes in transportation.
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As stagecoach routes were established in the mid1600, coaching inns became popular
1700s Americans started combining lodging with food
1794 City Hotel in New York City, the first building in
the U.S. designed specifically as a hotel.
From that point on, throughout the 1800s lodging
properties began to flourish.
The Tremont House, the first of the grand hotels, was
built in Boston in 1828. (First hotel to offer private
rooms with locking doors)
History Continued
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1825 invention of the railroad, inns, taverns, and
foodservice facilities located near railway.
Near the turn of the century, Conrad Hilton, who was a
banker in New Mexico, purchased is first hotel.
Other famous hotels were build during the early part of
the twentieth century, including the Ritz Carlton in
Boston, Plaza in New York City, and the Stevens Hotel in
Chicago
During the Depression in the 1930s, several hotel
properties closed
During World Was II in the 1940s, the lodging industry
prospered. (Hotels experienced extremely high
occupancy rates – usually at least 90%)
1950s cross-country vacations became popular with the
automobile and freeway system
1958 –airlines became popular
Lodging Operations Organization
 Front-of-the-House
vs. Back-of-the-House
 Typical lodging operation can be divided
between its administrative departments
and service departments
• Administrative departments = manage the
business responsibilities such as accounting,
human resources and training, and marketing and
sales.
• Service departments = are responsible for serving
the guest directly.
Administrative Departments
General Management (GM) – person in charge
of lodging establishment (other managers report
directly to the GM)
 Accounting and Financial Management –
keeps track of overall profits, records sales, and
calculates costs
 Human Resources – hiring labor and evaluate
performance (resp. local labor laws)
 Marketing and Sales – make sure their lodging
facility suite their customers (sales, advertising)
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Service Departments
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Front Office – have to give good first
impression, good people skills, manage rooms
Housekeeping – maintaining property,
responsible for keep guest ready and rooms
prepared.
Engineering and Facility Maintenance – keep
physical building in good running order and
maintain the operation’s mechanical equipment
Security – protecting guest, employees and
property, developing and following all emergency
procedures
Food and Beverage – one of the most
demanding arrears
Questions
1.
2.
3.
4.
5.
Historically, the lodging industry has been closely
tied to the ________industry?
What mode of transportation was invented in the
early 1800s?
During which decade in the U.S. did the lodging
industry experience the closing of many hotels?
List the four arrears of administrative departments
and what they do?
List the five areas of service departments and
what they do?
Organization of the
Lodging Industry
3.2
Two Types of Travelers
 Guest
fall under one of two categories:
leisure travelers or business travelers
• Leisure travelers = often want to “get away from it
all” – lodging properties cater to specific leisure
travelers by offering services of activities
• Business travelers = stay at lodging for businessrelated reasons. They represent the majority of
guests – they might need fax machines, copies
personal computes etc.
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Most important factor considered when
selecting a lodging facility is room
cleanliness
At Your Service: Lodging
Establishments for All
 Lodging
properties can be classified in
many ways: by the level of service
provided, rate charged, amenities offered
 Amenity = service or facility within the
lodging operation that guests may use or
enjoy without having to leave the hotel
• Full-service properties = cater to travelers in
search of a wide range of conveniences. (offer
larger rooms, well-trained staff, plenty of
amenities)
• Luxury properties = hotels that offer top-of-the-line
comfort and elegance
At Your Service: Lodging
Establishments for All
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Economy lodging = offers clean, low-priced
accommodations primarily to traveling salespeople,
senior citizens,, and families with moderate income (sm.
staff, simple rooms)
Mid-price facilities = between full-service and economy
sectors
All-Suite properties = fastest growing segment, offer
apartment style facilities
Resorts = (spares no expense), feature extensive
facilities for vacationers who are looking for recreational
activates and entertainment
Bed and Breakfast = guest who enjoy quaint, quiet
accommodations with simple amentias (private-owned)
 Page 159, ex. Of hotels and what service bracket they fit into
Location, Location, Location
 Location
is one of the most influential
factors contributing to the success of
lodging facility
• Airport facilities
• Downtown (primarily for business travelers, tend to
charge higher rates)
• Suburban properties (travelers who wanted to
attend downtown events but didn’t want to spend
the night in the city)
• Roadside motes (meet the needs of vacation and
business travelers)
• Resorts (vacation arrears)
Facility Rating Systems
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Several organizations rate quality of lodging
establishments (AAA – diamonds and Mobil
Travel Guides rate with stars)
 AAA – most widely recognized
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One diamond – functional accommodations
(minimum standards)
Two Diamonds – noticeable enhancements (décor
and or quality of furnishing)
Three Diamonds – upgrade in services and comfort,
with additional amenities
Four Diamonds – excellent properties offering high
level of service and a wide variety of amenities
Five diamonds – exceptional establishment,
providing the highest level of luxury and service
Questions
1.
Indicate which type of traveler – business (B) or leisure (L)
would find the features listed below important.
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2.
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5.
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3.
5.
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Meeting rooms
2. Programs for children
Near shopping areas
4. Location close to airport
Shuttle bus to theme park 6. Kiddie swimming pool
Shuttle to convention center8. Twenty-four hr. room service
What type of hotel is most likely to provide conference and
meeting rooms.
Florist shop that operates in a hotel's lobby is known as a…?
__________facilities are often constructed far from cities and
transportation routes.
Since hotels primarily relies on business travelers, which hotel
typically experience low occupancy rates on the weekdays?
Career Opportunities in
the Lodging Industry
3.3
Developing a Career in the Lodging
Industry
 Certificates
and diploma programs are
offered by high schools and business.
• Work experience, associations and professional
trade organizations offer programs and events that
can help you further your career.
• While most lodging establishments perform the
same basic functions, the number and type of
employees at each property will depend on
property size and other factors
Administrative
 GM
= responsible for overall lodging
establishment, have a bachelor’s degree and at
least 10 years work experience
 Assistant General Manager = helps carry out
the GM’s plans and serves as a liaison between
management and staff. Reports to GM
 Resident Manager = supervises front office
operations and reservations and is responsible
for emergencies twenty-four hours a day when
the GM is not on duty.
 Executive Assistant Manager = responsible
for all room rentals.
Accounting and Financial
Management “Back Office”
 Controller
= manages the accounting
department, participates in long-term financial
planning, and provides daily financial reports to
management. Smaller facilities often share the
accounting responsibilities among the GM.
 Management Information Systems (MIS
supervisor = computer specialist responsible
for solving computer-related problems and
making sure computer systems are running as
efficiently as possible.
Human resources
 HR
= responsible for interviewing,
selecting, recruiting, training, and
evaluating performance of the operation’s
staff.
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Motivating staff
Providing pay increases
Establishing employment policies
Administration of labor laws
Marketing and Sales
(Sell rooms and facilities by creating contracts with guest,
business and people involved in the travel industry)
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Marketing director = responsible for generating
new business, organizing special events and
conducting market research.
 Convention manager = plans meetings,
determines rates, and sells the facility’s banquet
service.
 Convention sales manager = brings in the
business by promoting the establishment as a
site for conferences, seminars, and meetings.
(larger properties also have positions such as
tour and travel sales manager and corporate
sales manager)
Front Office
Front office is the heart of all lodging properties. It has four main
responsibilities. 1. check-in 2. reservations 3. information 4. checkout
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Front desk manager = (heading the department) He or she
prepares budgets, maintains cost-control systems, and forecast
room sales. A good communicator and supervisor, oversees a
team of people
Desk clerk = greets and registers guests, and performs all
check-in functions (including blocking rooms, verifying
information and providing details of room rates and availability)
Reservations manager = oversees the reservations function
and managers a number of full-time reservations
Bell captain = managers an number of employees, including
bellhops, door attendants and valet parking
Concierge = specializes in providing a wide range of
information services (answer questions, books restaurant
reservations, make arrangements for car rentals, obtains
theater tickets and more)
Night auditor = works the evening shift, posting changes not
reordered during earlier shifts and balancing daily financial
transactions
Housekeeping
(One of the most important departments, often the largest, works
closely with front office personnel and maintains public areas)
 Executive
housekeeper = oversees the
department by hiring, training, scheduling,
and directing staff; purchasing and
maintaining an inventory of cleaning
supplies and equipment and setting
cleaning priorities
 Room attendants = employees who
actually clean guest rooms
Engineering and Facility Maintenance
(ensures that all mechanical systems are safe and in proper working order)
 Chief
engineer = plans and organizes the
tasks to be carried out by the department
(administrative duties include budgeting,
coordinating and supervising repair and
maintenance orders, and negotiating
contracts – oversees the maintenance)
• Often train other employees to conserve energy
and save on utility costs
• Provide advice about equipment maintenance and
environmental control
Security
(Emphasis is on preventing problems, protect guests, large
establishments, hire off-duty police officers)
 Security
chief = extensive law
enforcement training, work with the
director of human resources, goal is to
minimize theft
• Provides on-going training
• Train security officers
• Some security officers dress in plain-clothes other
offices place guards in visible locations where they
can see everyone who enters and leaves the
facility.
Food and Beverage
 Food
and beverage director =
supervises the most labor-intensive
department of a full-service lodging
operation
• Manages the formal dining room, coffee shop and
lounge, manager also directs the hotel’s banquet,
catering and room service
• Executive chef works with a sous chef and other
chefs to provide quality meals and refreshments
for hotel's guests
Questions
1.
The following list, please tell me the job
function of each lodging position.
2.
assistant general manager chief engineer
chief engineer
night auditor
room attendant
human resources
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4.
director
5.
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4.
convention manager
Tell me what an executive housekeeper is in
charge of?
Tell me the four main responsibilities of a front
office operations.
Tell me what a concierge is?
Property Management
Systems and Room Rates
3.4
General Management
 Property
management systems = are
computer software programs that are designed
to specifically for the lodging industry.
• PMS computer program eliminates the need to perform
the same tasks over and over.
• For a manager a PMS provides fast and accurate
information and allows for improved control over the
operation
• PMS can connect accounting systems, reservations and
registration databases, housekeeping room status
records and marketing research
Guests Account Management
 Customer
service and satisfaction are the
goals of every lodging establishment
 Guest folio = record of guest charges and
payments (chares added to account)
 Lodging operations now feature electronic
checkout systems that allow guests to use
their in-room television remotes to review
their folios, or slip a bill under the door
Rooms Management
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To lodging property departments
• Front office operations
• Housekeeping
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Room Status
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Reservations If a room is available it will read open,
confirmed indicates room has been reserved, guaranteed
rooms are usually prepaid, repair means the room is
unavailable
Housekeeping occupied, available, stay over, on charge
(guest have been checked out, but room not cleaned), out of
order
Reservation Management
reservation system (CRS) – guest
call with toll free #, sometimes hooked up
with airlines
 Room inventory (total number of rooms
that a property has to sell)
 Central
• Block rooms – room unavailable
• Rooms forecast – order to anticipate room
inventory levels, managers ask for a forecast
• No-shows
• Overbook rooms
• Under stays – guests who leave before their
anticipated date of departure
Yield Management
Management – allows managers to
change room rates
 Yield
• High Demand – raise rates, limit cheaper rooms,
block out rooms to ensure minimum stay
• Low Demand – lower rates, seek business,
promote
Setting Room Rates
 Room
rates vary considerably depending
on a variety of factors, including
construction, real estate cost, level of
luxury, type of bedding and time of year
 Many methods for setting room rates, rule
of thumb method suggest that room rates
should be set at $1 for every $1,000 of
construction cost
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Ex. If a new hotel is built at $50,000 per room, rat should
initially be $50.00
Hubbart Formula
(Setting Room Rates Formula)
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Operating expenses – which are the costs of running the
establishment
Desired return on investment (ROI)– which is the money a
business hopes to make
Other income – which is earned in various department (food,
catering)
Projected room sales – forecasting
(operating expense + desired (ROI)) – other income
Projected room sales
= room rate
Ex. Operating expense are $3,000,000; desired ROI $2,00,00; additional income
$300,00; projected room sales $100,00 what should the room rate be??
($3,000,000 + $2,000,000) - $300,000
$100,000
= $47.00
Different Room Rates
 Complimentary
 Government
rates
 Airline/agent
 Day rates
 Weekly rates
 Family rates
 Educational rates
 Local business rates
Questions
1.
Use the hubbart formula to set a room rate
given the following information
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Projected room sales: $100,000
.Desired return on investment: $3,000,000
Operating expenses: $4,000,000
Other income: $600,000
Which rate category would most likely apply to
vacation travelers reserving a hotel room
during the high season?
A guest uses his in-room TV remote to check
out. This convenient checkout procedure is
made possible through the lodging property's
what?