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CHAPTER
5
Hotel Rooms Division Operation
Bring a calculator for this chapter
Functions of a hotel
Provide lodging accommodations
Revenue centers
Cost centers
Serve and enrich society
Create profit for the owners
Role of a General Manager
Ensure excellent guest service
Keep employees happy
Oversee operations
Increase profit for owners
http://www.iseek.org/sv/Careers?id=13000:100102
Qualities of Successful Managers
Leadership
Attention to detail
Follow through
People skills
Patience
Delegate effectively
Executive Committee
Makes major decisions affecting the hotel
Made up of key departments heads: General Manager
Director of Human Resources
Director of Food & Beverage
Director of Rooms Division
Director of Marketing & Sales
Director of Engineering
Director of Accounting
Executive Committee
Let’s start with Rooms Division!
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Rooms Division
Departments
Front Office
Reservations
Concierge
Guest services
Security
Communications
Housekeeping
Rooms Division Organizational Chart
The Guest CyclePre-arrival
Cashier
Front Desk /
Uniformed service
Night auditor
PMS
Rooms Division Organizational Chart
Let’s look at the responsibilities
of Front Office
Front Office
The hub of the hotel
Responsibilities:
To sell and up-sell rooms
To maintain balanced guest accounts
To offer services (handling mail, faxes, messages, local
and hotel information)
http://www.iseek.org/sv/Careers?id=13000:100103
Front Office
Front Office Manager
Enhance guest services by developing to exceed guest needs
Guest Service Associate
Greet guests as they arrive at the hotel, escort them to the front desk, personally allocate the room, and take the guest and luggage to the room
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Night Auditor
Posts charges
Closes the books (daily)
Balances guest accounts
Completes daily report (hotel occupancy & revenue statistics)
Occupancy Statistics
Occupancy % = Rooms Occupied
Total Rooms Available
Revenue Statistics
Average Daily Room Rate (ADR) is
Total Rooms Revenue
Total Number of Rooms Sold
Lets’ explore “Room rates”
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Source: Hospitality Advisors - Hotel Flash Report Source: Hospitality Advisors - Hotel Flash Report
e.g. Hotel on Oahu
Game
OccupiedRooms
Available Rooms
Occupancy % ADR $ Revenue
13,950 18,476 75.5% $62 $864,900
1255 1,530 82% $188.94 $237,119
7,398 9,734 76% $87 $643,626
12857 18,476 69.6% $76 $977,132
=
x
More practice
OccupiedRooms
Available Rooms
Occupancy % ADR $ Revenue
200 300 66.6% $62 $12,400
750 1,000 75% $200 $150,000
400 500 80% $80 $32,000
450 500 90% $75 $33,750
Property Management Systems (PMS)
Center of “information” processing
Relates to front and back office activities(improve guest service)
Examples of applications:
Room management (front office & housekeeping)
Guest accounting (report)
Check in services (self check-in & out)
Information sharing (among modules)
Internet access (high speed)
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Provides the tools a hotel staff needs for doing their day-to-day jobs
• handling reservations
• checking guests in and out
• assigning rooms and managing room inventory
• accommodating in-house guest needs
• handling accounting and billing
http://www.micros-fidelio.co.uk/products/opera/pms/
Revenue & Yield ManagementRevenue management is used to maximize room
revenue at the hotel Based on supply and demand
Yield management allocates the right type of room to the right guest at the right price
Examines demand for rooms over a period of a few years and
determines the demand for a particular room each night
Rev Par = Room Revenue
Number of Rooms Available Source: Hospitality Advisors - Hotel Flash Report
Source: Hospitality Advisors - Hotel Flash Report
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RevPar
RevPar
$41.3
$150
$64
$67.5
OccupiedRooms
Available Rooms
Occupancy %
ADR $ Revenue
200 300 66.6% $62 $12,400
750 1,000 75% $200 $150,000
400 500 80% $80 $32,000
450 500 90% $75 $33,750
Reservation Department
Headed by the reservations manager
Aim to exceed guest expectations when they make reservations
What information does the hotel need to take a reservation?
Reservation Record
Guest name & address
Telephone number
Group/company name
Person making reservation
Number in party
Special requirements
Expected arrival
Number of nights
Expected departure
Room rate
Reservation type
Guarantee method
Reservartion
Confirmed reservations are made with sufficient time for a confirmation slip to be returned to the client (guest
has a reservation)
• Guaranteed reservations are given when the person making the reservation wishes to ensure that the reservation will be held (hold by credit card / deposit, billed even
if no-show)
Where do Reservations come from?
Internet
First area of guest contact
Sales person
Telephone skills
Central Reservations System (CRS)
Communications or PBX
Management of in-house, guest communications, and emergency center
Profit center
Hotels generally add a 50% charge to all long-distance calls placed from guest rooms
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Guest / Uniformed Service
Headed by a guest services manager
Include:
Door attendants (Hotel’s unofficial greeters)
Bell persons (Escort guests to their rooms, Transport luggage
Concierge
http://www.iseek.org/sv/Careers?id=13000:100015
A Typical day
7:30-8:00am
Stop by the Bell Desk see what’s happening with the bell service
Stop by the Guest Services desk. read the logbook, Daily Revenue report, memos/mail.
Go to office review reports, memos and mail, check & respond email
Debbie Murakami
Outrigger Waikiki, Guest Service Manager
8:30-10:30 a.m. - Guest Services desk
Prepare for the day Review entries from the night before, arrivals for the day.
Handle guests requests e.g. get shuttles/ rental cars;
mainland travel agents calling to order amenities for their in-house clients
early arriving guests trying to check in.
Most Interesting requests:
wrap & mail a huge wooden tiki
prep a honeymooner’s room with candles, champagne & rose petals
Arrange a male flamenco dancer to perform for a guest’s birthday
Talk to returned guests
Trouble shooting guests complaints
Solve problems
If a vendor is not able to come through for a guest, go off property to help (e.g. pick up that birthday cake, duplicate keys or drop off letter)
Administration Write newsletters, work on projects, attend staff meetings,
employee performance appraisals, payroll and schedules.
Spend time with employee
Ends at 5-5:15 p.m.
Concierge Elevates property’s marketable value
Typically in a luxury hotel
Handles guest needs
Should have knowledge of the city
Many speak several languages
Assists guests with restaurant reservations, directions,
tickets to shows, etc.
Housekeeping
Largest department (# people)
Executive keeper’s duties
Leadership (people, equipment, supplies)
Cleanliness & servicing (guest rooms, public
areas)
Operating the department according to
financial guidelines
Keeping records
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Before After
Average:
• 14- 19 rooms per housekeeper
• 20-30 minutes per room
In-House Laundry
Advantages:
24-hour service
Smaller stock of linen
Control over quality of laundered linen
Contract Laundry Service
Advantages:
No maintenance costs (for equipment)
No labor costs (training/staffing)
Lower overhead costs (energy/water)
Fixed projected expense
Security & Loss Prevention
Providing guest safety & loss prevention:
Includes:
Security officers
Equipment (i.e., smoke alarms, key cards, etc.)
Safety procedures
Identification procedures
Daily operations key card control, access and exit from the property
Medium range concerns Advanced planning for VIP arrivals,
Functions involving high levels of activity (parking, exhibits, deliveries, etc.).
Long range procedures financial investments, budgeting for capital investment
(refurbishing rooms, etc.).
Kris LeeHalekulani Hotel Security staff
Example:
Kris’s concept of security is “If you can’t see it, you can’t protect it.”
That’s why security staff are constantly on the move, covering areas inaccessible to camera surveillance, or where presence is believed to be important to guests.
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The Guest CyclePre-arrival
Cashier
Front Desk /
Uniformed service
Night auditor
PMS
Trends
Diversity of workforce
Increase in use of technology
Continued quest for increases in
productivity
Increasing use of revenue
management
Greening of hotels / guest rooms
Security
Diversity of the guest
Compliance of the ADA
Use of websites
In-room technology
Recap
1. Which departments are under Rooms Division?
Front Office, Reservations, Concierge,
Guest services, Security, Communications,
Housekeeping
* Understand the function & importance of each department
2. What role does the Front Desk play?
a. Inventory Control
i. Assign rooms
ii. Market rooms
iii. Upsell rooms
b. Yield Management
i. Upselling
ii. Reservations
iii. Sales
iv. Setting rate
3. Do you know how to calculate the following? Occupancy rate
ADR
RevPar
How are these hotel statistics related?
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Sustainable initiatives
Recycle
Reusable bags
Hybrid car
Conserve energy
Buy Local, In-Season and Organic
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