Chapter 4: Rooms Division Operations

Chapter 4 Rooms Division Operations Functions and Departments Role of the Hotel General Manager Executive Committee Rooms Division Property Management Systems Energy Management Systems Call Accounting Systems Guest Reservation Systems

Chapter 4 Rooms Division Operations Revenue and Yield Management Reservations Communications CBX or PBX Guest Services/Uniformed Services Concierge Housekeeping Security/Loss Prevention Trends

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 Provide owners with a reasonable return on investment Keep guests and employees happy Responsible for performance of hotel and employees Accountable for the hotel’s level of profitability Personal Qualities

Executive Committee Makes all the major decisions affecting the hotel Made up of key associates who head major departments: General Manager Director of Human Resources Director of Food & Beverage Director of Rooms Division Director of Marketing & Sales Director of Engineering Director of Accounting

Figure 4-1 Executive Committee

Rooms Division Departments: Front office Reservations Housekeeping Concierge / Bellman Guest services Security Communications

Figure 4-3 Guest Cycle

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

Front Office The hub or nerve center of the hotel Responsibilities: To sell and up-sell rooms To maintain balanced guest accounts To offer services such as handling mail, faxes, messages, and local and hotel information

Night Auditor Posts charges Closes the books on a daily basis Balances guest accounts Completes daily reports using the statistics on the following slides

Occupancy Statistics: Hotel Statistics Occupancy Statistics: Percentage of Occupancy = Rooms Occupied Total Rooms Available Revenue Statistics: Average Daily Room Rate (ADR) = Total Rooms Revenue Total Number of Rooms Sold

Property Management Systems Center of information processing Relates to front and back office activities Examples of applications: Room management Guest accounting Check in services Information sharing Internet access

Energy Management Systems Extends guest in-room comfort Examples: Passive infrared motion sensors Room occupancy status reporting Automatic lighting controls Minibar access reporting Smoke detector alarm reporting Central electronic lock control Guest control amenities

Call Accounting Systems Tracks guest room phone charges Monitors where calls are made from and from which phones CAS works in conjunction with PBX (telephone) and PMS Offers different rates

Guest Reservation Systems Global distribution systems (GDS): Electronic markets for travel, hotel, car rental, and attraction bookings A central reservation system (CRS) houses the electronic database in the central reservation office (CRO) Hotels provide rates and availability information to the CRO—usually by data communication lines

Figure 4–6: The Sequence and Relationships of a Hotel Guest Reservation

Revenue and Yield Management Revenue 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

Reservations Department is headed by the reservations manager Desired outcome of the reservations department is to exceed guest expectations when they make reservations Confirmed reservations are made with sufficient time for a confirmation slip to be returned to the client Guaranteed reservations are given when the person making the reservation wishes to ensure that the reservation will be held

Communications CBX 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

Guest/Uniformed Services Uniformed staff is headed by a guest services manager Consists of door attendants, bell persons, and the concierge

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 in terms of people Executive Housekeeper duties: Leadership of people, equipment, and supplies Cleanliness and servicing the guest rooms and public areas Operating the department according to financial guidelines Keeping records

Security and Loss Prevention Providing guest safety and loss prevention Includes: Security officers Equipment (i.e., smoke alarms, key cards, etc.) Safety procedures Identification procedures

Trends Diversity of workforce Increase in use of technology Continued quest for increases in productivity Increasing use of revenue management Greening of hotels and guest rooms Security Diversity of the guest Compliance of the ADA Use of websites In-room technology

Chapter 1 Key Terms / Thoughts Front of the House Back of the House Moments of Truth Service is Intangible Inseparability of product and service Perishable Product Guests not customers Empowerment NRA

Chapter 2 Key Terms / Thoughts Railway / Car / Cruise /Air Developments Cruise Markets Southwest and Jet Blue impact on big carriers Load Factor Hub and Spoke System Support ___% of Global Workforce Travel Agent / Tour Operators WTO

Chapter 3 Key Terms / Thoughts AAA and Mobil Ratings Hotels classifications Airport / Resort / Casino Company recieves a fee, % of gross sales and / or net profit Bed and Breakfast Largest hotel in the world? Purchase a condominium for blocks of time Franchising / Partnership CFHLA

Chapter 4 Key Terms / Thoughts Executive Committee members GM Personal Characteristics Average Daily Rate Occupancy Percentage Revenue Management Yield Management Confirmed reservations Guaranteed reservations

The End