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Chapter 10
Hotel and Lodging Operations
LODGING OPERATIONS
This module will focus on the function and
operation of hotels. Although hotels range in
size from under 100 rooms to over 5,000
rooms, functions remain essentially the same
Size does affect how responsibilities are
separated however (and staffing)
Hotels are generally divided into three major
functional areas
HOTEL OPERATIONS
Rooms Division
Includes Front Desk, Reservations, Uniform
Services (Security, etc.), and Housekeeping
Food and Beverage department
Includes Restaurants, Bars, Banquets and
Room Service
Staff and support departments
Includes Accounting, Engineering, Marketing,
Human Resources and Contracted areas
ROOMS DIVISION
The Rooms Division is the heart of the hotel
It is the main business of the hotel and the
main source of revenue
Rooms can contribute 70 percent or more to
overall revenue and even more to profit
ROOMS DIVISION
The Rooms Division is overseen by the
Resident Manager (or Assistant General
Manager) and various department heads
ROOMS DIVISION
The center of activity in the Rooms Division is
the Front Office
The Front Office is responsible for checking
guests in, checking them out, securing
payment, listening to complaints,
communicating with other departments,
determining room availability, and selling
additional rooms, among other
responsibilities
ROOMS DIVISION
The Reservations department is responsible
for taking reservations. Reservations can be
made by the guest via other methods but
many requests are still made through the
hotel’s reservation department
Reservations must maintain contact with
other departments as well as other
reservations channels to be able to forecast
available rooms
ROOMS DIVISION
The Reservations department attempts to
maximize (1) room rate and (2) occupancy
rate
This is known as Yield Management –
maximizing these two at any given time
Reservations departments must consider city
wide events, competition, minimum stays, etc.
HOUSEKEEPING
The essential requirement that guests have is
to be able to check into a clean room
The Housekeeping Department is responsible
for cleaning of guest rooms, stocking
essential supplies and amenities, laundry
(sometimes) and maintenance of public areas
Housekeeping is one of the largest
departments in the hotel (up to 50 % of all
employees)
HOUSEKEEPING
The Executive Housekeeper is the head of the
department
He or she must be adept at scheduling, coordinating,
managing people, etc. A primary responsibility is
overseeing room attendants
Room Attendants are responsible for cleaning of
individual guest rooms
Housekeepers work from a Rooms Report which
provides them with the status of all guest rooms from
which they can prioritize their work
HOUSEKEEPING
The Housekeeping Department must know at
any given time, the occupancy of the hotel,
the number of guests checking in, the number
of guests checking out, the number of guests
staying over, late check-outs, etc.
Rooms can take as little as 20 minutes or as
much as 1 hour to clean and prepare for the
next guest
Check-in and Check-out times are based in
large part on the time it takes to clean a room
UNIFORMED SERVICES
The Uniformed Services Department is
another important department in the Rooms
Division of a hotel
It consists of the Bell Staff, Valet, Security and
Concierge
The bell staff assists with luggage, acts as an
escort and answers questions
The valet assists with parking
UNIFORMED SERVICES
The Concierge is the resident expert in
activities, events, restaurants and attractions
The position of Concierge is becoming more
important as hotels try to offer a higher level
of guest services
There is an international association for
concierges (Les Chefs d’Or)
Sometimes this responsibility falls to the bell
staff or the front desk clerks in smaller hotels
SECURITY
This department as well is becoming more
important
Crime is increasing in many areas,
particularly downtown areas
Hotels are required to provide “reasonable
care” of their guests which includes general
security, locks and lighting and security of
guest belongings
SECURITY
New security measures that have been
introduced in recent years include:
In-room safes
Keyless locks (with magstrips)
Tighter security at the front desk
Redesigned hotels where guests (and others)
must pass through the lobby
FOOD AND BEVERAGE
The Food and Beverage department can
contribute 15 to 20 percent of overall revenue
It should be a profit center but does not
always make money for the hotel
This department is headed up by a Food and
Beverage Manager who oversees both Frontof-the-House and Back-of-the-House
functions
FOOD AND BEVERAGE
Banquets – are often profitable for hotels.
Can support meetings and conferences or
outside functions
Restaurants – hotels are changing their views
of their restaurants. Some are limiting what
they offer and others are outsourcing
Bars, room service, food production,
stewarding are other areas
STAFF AND SUPPORT
DEPARTMENTS
Sales and Marketing
Responsible for “creating customers”
Largely revolves around selling “blocks” of rooms
Can be a large department in convention hotels
specialized by market
Accounting
Role is moving beyond just bookkeeping
Includes overseeing the “house ledger” and the “city
ledger”
Also, includes the night audit
STAFF AND SUPPORT
DEPARTMENTS
Human Resources
Labor intensive industry requires progressive
H/R
Responsibilities include supporting line
departments in all H/R related activities (hiring
and recruiting, training, staffing, etc.)
Engineering
Oversees Heating, Cooling, Water, Lighting,
Telecommunications, Energy Management,
Electric, other
FINANCIAL MANAGEMENT
Income and Expenses
Revenue and profit
Changes in income and expenses over time
Outsourcing as a strategy to cut costs
Cost of maintaining a hotel
KEY OPERATING RATIOS
Occupancy percentage =
Rooms sold ÷ Total rooms available
Example: 500 room hotel sells 300 rooms
Average rate =
Dollar sales ÷ Number of rooms sold
Example: $18,000 in sales
KEY OPERATING RATIOS
Number of guests per occupied room =
Number of guests ÷ Number of occupied
rooms
Revpar – revenue per available room =
Rooms revenue ÷ Available rooms or Paid
occupancy percentage * ADR (Average Daily
Rate)
Average rooms cleaned per room
attendant day = Number of rooms occupied
÷ Number of eight-hour shifts
CAREER ENTRY POINTS
Front office
Accounting
Sales and marketing
Food and beverage