1. © 2007, Educational Institute Chapter 7 Hotel Organization and Management Hospitality Today: An Introduction Sixth Edition (103TXT or 103CIN)

2. © 2007, Educational Institute 1 Competencies for Hotel Organization and Management 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. (continued)

3. © 2007, Educational Institute 2 (continued) 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. Competencies for Hotel Organization and Management

4. © 2007, Educational Institute 3 Hotel Revenue Centers Rooms Food and beverage Telecommunications Concessions, rentals, and commissions Fitness and recreation facilities

5. © 2007, Educational Institute 4 Rooms Division Departments Front office Reservations Housekeeping Uniformed service

6. © 2007, Educational Institute 5 Measuring Rooms Division Performance Average Daily Rate (ADR) ADR = Rooms Revenue ÷ Rooms Occupied Occupancy Percentage (OP) OP = Rooms Occupied ÷ Rooms Available x 100 Revenue Per Available Room (REVPAR) REVPAR = OP x ADR

7. © 2007, Educational Institute 6 Problems in Hotel Food and Beverage Operations Long hours of operation Low check averages Too many facilities High turnover Costly entertainment (where applicable) Insufficient marketing

8. © 2007, Educational Institute 7 Hotel Cost Centers Marketing Engineering Accounting Human resources Security

9. © 2007, Educational Institute 8 Managing Quality Control Set standards Select employees Train employees Involve employees Evaluate Reward achievement