1. Hospitality Today Introduction to the Hotel Industry

2. What to know…… Competencies:
Explain how a hotel is organized, distinguish revenue centers from cost centers, and describe the rooms division.
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.
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.
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.

3. How is a Hotel Organized?
Organized by what the facility provides…
Food/Beverage Division
Room Division – reservations, check-in/out, housekeeping tasks, uniformed staff, telecommunications service.
General Manager
Front Office
Housekeeping
Food &
Beverage
Building
Maintenance
Page

4. Revenue Centers VS. Cost Centers
Rooms
Food and Beverage
Telecommunications
Concessions
Rentals
Commissions
Fitness/Recreation Facilities
Cost Centers
Marketing
Engineering
Accounting
Human Resources
Security

5. Two Main Revenue Centers
A. Room Division
Single largest source of revenue
Room revenue less operating expenses
For every $1.00 spent on guestrooms, 74 cents is available for general overhead after deducting the direct rooms division expenses. (See Exhibit 3 on Page 191 – next slide)
Organization of the Rooms Divisions (See Exhibit 4)
Front Office
Reservations
Housekeeping
Uniformed Service

8. Two Main Revenue Centers
A. Room Division
Front Office
The command post for processing reservations, registering guests, settling guest accounts (cashiering), and checking out guests.
Distribution of mail, keys, messages and information for guests.
Duties include: greeting guests, establishing a method of payment, assigning rooms that are unoccupied and have been cleaned, communicating hotel facilities and surrounding community, calling a bell person.

9. Two Main Revenue Centers
A. Room Division
Reservations
Should be staffed by skilled telemarketing personnel
Must be handled with skill and efficiency, provide immediate and correct information
The largest volume of customers comes from individuals or direct inquiry. The remainder are received through the following sources:
The hotel’s reservation system
Travel agents
Hotel representatives
The internet
Tour operators
Independent reservation systems
Airlines, cruise lines, and other transportation companies

10. Two Main Revenue Centers
A. Room Division
Housekeeping
Responsible for cleaning the hotel’s guestrooms and public areas.
Includes: Executive Housekeeper, Assistant Housekeeper, Room Inspectors, Room Attendants, House person crew, Linen room Supervisor and Attendants, Laundry Employees, Personnel in charge of employee uniforms
Duties include: removing soiled linen and towels and replacing them with fresh ones, checking the bed and blankets for damage, making beds, emptying trash, checking for any broken appliances, damage to shades or blinds, leaky faucets, checking closets and drawers for items forgotten, cleaning the room and bathroom, replacing bathroom towels and amenities
See Page 202

11. Two Main Revenue Centers
Room Division
Measuring the Performance of the Rooms Division
Average Daily Rate
Rooms Revenue divided by Rooms Occupied = Average Daily Rate
Monday $23, $140.00
Tuesday $30, $162.16
Wednesday $29, $162.92
3 Day Figures $82, $155.03

12. Two Main Revenue Centers
Room Division
Measuring the Performance of the Rooms Division
Occupancy Percentage
Rooms Occupied divided by Rooms Available = Occupancy Percentage
Monday %
Tuesday %
Wednesday %
3 Day Figures %

13. Two Main Revenue Centers
Room Division
Measuring the Performance of the Rooms Division
Revenue Per Available Room
Occupancy Percentage divided by Average Daily Rate = Revenue Per
Available Room
Monday 85.0% $ $119.00
Tuesday 92.5% $ $150.00
Wednesday % $ $145.00
3 Day Figures 88.8% $ $138.00

14. Two Main Revenue Centers
A. Room Division
Uniform Services
Also called guest service department. Includes bell persons, concierge, transportation/valet-parking employees, and door attendants.
Bell person moves luggage and guest to their rooms
Concierge is the main source of information about the hotel.
Measuring the Performance of the Rooms Division
See Page 200

15. Two Main Revenue Centers
B. Food and Beverage Division
May produce as much or more than room division
Is paramount to the success of the operation
Not just a convenience for guests anymore.
Capture rate – the percentage of guests who eat meals at the hotel – is measured regularly by many hotels.

18. Two Main Revenue Centers
B. Food and Beverage Division
Catering plans food for…
Conventions and smaller hotel groups
Local banquets
Room Service
Delivery time plays a role in quality
Food items must be charged more for

19. Two Main Revenue Centers
B. Food and Beverage Division
Support and control services
Receiving clerks verify quality
Storing supplies
Cashiers who control the payment
Costing and pricing menus
Conducting monthly inventory
Creating monthly and daily reports on food and beverage costs

20. Two Main Revenue Centers
B. Food and Beverage Division
Problems in Food and Beverage Operations
Long Hours of Operation
Low check Averages
Too many facilities
High turnover
Costly Entertainment
Insufficient Marketing

21. Other Revenue Centers Telecommunications Department
See Page 214 – Voice Mail, Beeper Service, Internet Service
Concessions, Rentals, and Commissions
See Page – Gift Shops, Newsstands, Flower Shops, Laundry,
Dry Cleaning Services, Beauty salons, Jewelry stores, Secretarial Services, and even Office space.
Fitness and Recreational Facilities
See Page – health clubs, spas, exercise facilities, rental bicycles, luxury spas.

22. Cost Centers Marketing and Sales Division
The mission of a hotel’s marketing and sales division is to…..
1. identify prospective guests for the hotel
2. shape the products and services of the hotel as
much as possible to meet the needs of those
prospects
3. persuade prospects to become guests

23. Cost Centers
The marketing and sales division is charged with the responsibility of keeping the rooms in the hotel occupied at the right price and with the right mix of guests. It accomplishes this through many activities, including:
Contacting groups and individuals
Advertising in print and on radio, television, and the Internet
Creating direct mail and public relation campaigns
Participating in trade shows
Visiting travel agents
Participating in community activities
Arrange familiarization tours

24. Cost Centers
Marketing Division See Page 218

25. Cost Centers Engineering Division
Takes care of the hotel’s physical plant and controlling energy costs are the responsibilities of the engineering division.
Slow a hotel’s physical deterioration
Preserve the original hotel image established by management
Keep revenue-producing areas operational
Keep the property comfortable for guests and employees
Preserve the safety of the property for guests and employees
Create savings by keeping repairs and equipment replacements to a minimum

26. Cost Centers Accounting Division
A hotel’s accounting division is responsible for keeping track of the many business transactions that occur in the hotel.
Forecasting and budgeting
Managing what the hotel owns and what money is due form guests
Controlling Cash
Controlling costs in all areas of the hotel – revenue centers as well as cost centers and payroll
Purchasing, receiving, storing, and issuing operating and capital inventory such as food and beverages, housekeeping supplies, and furniture
Keeping records, preparing financial statements and daily operating reports, and interpreting these statements and reports for mangement

27. Cost Centers Human Resources Division Security Division
Security Officers – rooms, parking areas, pool, bars, restaurants, shopping areas, etc.
Equipment – two-way radios, closed-circuit tv; motion sensors, elevators, smoke detectors, fire-alarms, interior/exterior lighting.
Master keys – to guestrooms, storerooms, and offices at all times.
Safety procedures – fire, bomb threats, terrorism, etc.
Identification procedures – photo identification for all employees, name tags, etc.