2. Types of Lodging Businesses
Chapter 4
The Hotel Business
Types of Lodging Businesses
Hotel Operations

3. Chapter Objectives Identify the types of hotel classifications.
Differentiate between business and leisure guests.
Explain the importance of yield management.
Identify the front-office positions in the rooms division of a hotel.
Describe the guest services in the hotel industry.
Identify the support-staff positions in the back house of a hotel.

4. Lodging Businesses
According to the American Hotel and Lodging Association, the United States has more than 47,040 properties, generating 2 million jobs and $102.6 billion in sales.
Section 4.1

5. Classification of Facility
Lodging classification is based on four factors:
Guest type
Price
Location
Style and function
Section 4.1

6. Bed-and-Breakfast (B&Bs)
Classification of Facility
Guest Type
Price
Location
Style and Function
Business
Leisure
Budget
Midprice
Upscale
Resorts
Airport
Highway
Downtown
Conference centers
All suite
Extended stay
Bed-and-Breakfast (B&Bs)
Spas
Boutique
Vacation Properties
Retreat centers
Section 4.1 6

7. Classification of Facility
The four categories of guest travel type or stay are:
transient guest an individual traveler with a reservation, staying in a hospitality property for a maximum of 30 consecutive days
Walk-in guest
Transient guest
Corporate guest
Group guest
Section 4.1

8. Classification of Facility
The price of a room is based on a number of factors:
Location of property
Location of room
Amenities
Length of stay
Season
Types of guest
Meals
Section 4.1

9. Classification of Facility
Meal plan types include:
meal plan a room rate that includes meals
European Plan (EP)
Continental Plan (CP)
Bermuda Plan (BP)
Modified American Plan (MAP)
American Plan (AP)
Section 4.1

10. Classification of Facility
Hotels use yield management to help maximize revenue.
yield management a system of maximizing revenue through adjusting room rates according to demand
Section 4.1

11. Classification of Facility
Calculation tools used in yield management are:
average daily rate (ADR) a rate based on total sales for the day divided by the total number of sold rooms
Average daily rate (ADR)
Section 4.1

12. Classification of Facility
Calculation tools used in yield management are:
occupancy percentage (OCC%) a percentage calculated daily and based on the number of rooms sold as a percentage of the total number of rooms available
Occupancy percentage (OCC%)
Section 4.1

13. Classification of Facility
Calculation tools used in yield management are:
revenue per available room (revPAR) a rate that reflects a hotel’s revenue per available room
Revenue per available room (revPAR)
Section 4.1

14. For All Types of Travelers
Lodging accommodations come in all types and sizes to suit the needs of many kinds of guests.
Travelers consider price, location, and style of a property when making reservations.
Section 4.1

15. What are three different types of hotel properties?
4.1 1.
What are three different types of hotel properties?
What are the two categories of hotel guests?
What are three factors that can determine the price of a room? 2.
Quick Check Answers
Answers may include any three of the following: all-suite, extended stay, B&Bs, spas, boutique hotels, vacation properties, and retreat centers.
business guests and leisure guests
location of property, location of room, amenities, length of stay, and meal plans 3.
Section 4.1

16. Hotel Organization
The general manager of a hotel is responsible for both front-of-the-house and back-of-the-house operations.
front of the house (lodging) the area in a lodging facility that guests view, such as the lobby
back of the house (lodging) the area in a lodging facility where support services take place that guests usually do not view
Section 4.2

17. The Rooms Division
The largest revenue center of a lodging facility is the rooms division.
The rooms division includes the front desk, reservations, housekeeping, guest or uniformed services, and communications.
Section 4.2

18. Providing guest services
The Front Office
From a guest perspective, the front office is considered the heart and soul of any property.
The primary functions of the front-desk staff are:
Selling rooms
Maintaining accounts
Providing guest services
Section 4.2

19. The Front Office
The sales division or the reservations staff sells rooms during the day.
In the evening the front-desk staff assumes this responsibility.
Section 4.2

20. The Front Office
Many lodging facilities have property management systems (PMS).
Sophisticated information technology allows the front desk to provide better service while also reducing costs for the property.
Section 4.2

21. The Front Office
The most important task of the front-desk staff is providing exemplary guest service.
During check-in, guests contact the front desk with questions, requests, and special needs.
Section 4.2

22. The Front Office
The night auditor is a front-of-the-house accounting position.
night auditor the hotel staff member who does the night audit and balances the guests’ accounts each evening
Some properties may employ a guest service agent (GSA).
guest service agent (GSA) a hotel staff member who performs all the functions of a desk clerk/agent, concierge, and valet
Section 4.2

23. The Front Office
Guests can often make reservations directly with a property through a centralized reservation system (CRS).
Section 4.2

24. The Front Office
The housekeeping department directly affects a guest’s perception of cleanliness, safety, and security at a property.
Section 4.2

25. The Front Office
Guest or uniformed services staff members wear the official uniform of the hotel and are the first people whom guests approach upon arrival at the property.
guests or uniformed services staff members in uniforms, including the bell staff, valet, security officers, concierge, and door or garage attendants
Section 4.2

26. The Front Office
The concierge position is found at larger properties, often in city or resort locations.
concierge a hotel staff member who helps guests make arrangements for transportation, restaurant reservations, event reservations, and entertainment tickets, and advises guests about activities in the area
Section 4.2

27. The Front Office
The communications department of a hotel is another revenue center.
In-house communications can include voice mail, fax service, , message centers, and pagers.
Section 4.2

28. Systemwide Departments
Larger hotels maintain centralized systems for groups of units.
Employees are classified as line employees and staff employees.
Line employees are in daily contact with guests.
Staff employees support the front of the house; they do not interact much with guests.
Section 4.2

29. Support Staff Support staff in the back of the house include:
Engineers
Groundskeepers
Attendants
Sales and marketing staff
Human resources staff
Section 4.2

30. Support Staff Engineers Groundskeepers Attendants Sales and Marketing
Oversee the hotel’s physical plant, buildings, and grounds
Groundskeepers
Maintain and upgrades the exterior of the facility by landscaping the property
Attendants
Oversee recreational facilities such as pools, tennis courts, and golf courses
Sales and Marketing
Persuades guests to stay at a particular property or chain
Human Resources
Oversees recruiting, selecting, training, and compensating hotel employees
Section 4.2 30

31. Support Staff
The sales force of a lodging business may include different types of sales personnel:
Sales representatives
Technical-support staff
Sales assistants
Telemarketers
Section 4.2

32. Hotel Staffing Food & Beverage General Manager Food & Beverage
Restaurant
Lounge
Banquet
Room Service
Kitchen
Section 4.2 32

33. Executive Housekeeper
Hotel Staffing
General Manager
Front Office
Front Office
Uniformed Staff
Reservations
Front Desk
House- keeping
Security
Concierge
Reservations Manager
FD Manager
Executive Housekeeper
Door Attendants
Asst. FD Mgr.
Inspectors
Bell Captain
FD Clerk
Room Attendants
Security
Guest Service Agent
Laundry
PBX Operator
Night Auditor
Section 4.2 33

34. Hotel Staffing Support Staff General Manager Support Staff Marketing
Accounting
Human Resources
Engineering
Sales
Marketing
Section 4.2 34

35. Hotels Online
Hotels.com books rooms at over 4,500 hotels throughout the world. Similar hotel booking services have made it easier and cheaper for travelers to find accommodations. These Web sites feature photos and descriptions of rooms and amenities. Rating systems help guests know the level of quality they can expect in a particular destination.
Operating an e-tail business on an electronic channel—the Web—can be costly, due to design, delivery, returns, and operating expenses.
Though Many larger dot-com companies crashed in the 1990’s, small stores like Harris Cyclery of West Newton, Massachusetts, actually increase sales using a basic Web site. Today, a third of Harris’s bicycle business rides in on the Web to get hard-to-find parts and personal service.
Describe an e-business’s home page to your class after viewing one through marketingseries.glencoe.com.
Online reservation services also save travelers the hassle of calling and booking overseas rooms in different languages and time zones.
For more information, go to marketingseries.glencoe.com.
Section 4.2 35

36. What are three functions of the front office?
4.2 1.
What are three functions of the front office?
What are examples of three uniformed services positions?
What is the difference between line and staff employees? 2.
Quick Check Answers
selling rooms, maintaining accounts, and provide service to guests
bell staff, valet, security officers, concierge, and door or garage attendants
Line employees are in daily contact with the guests and are considered front-of-the-house employees. Staff employees support the front of the house but do not interact much with guests. 3.
Section 4.2

37. Checking Concepts
Name the factors used to classify lodging facilities.
Business guests are those traveling for business purposes. 3.
Categories used to describe guests by type of stay are business and leisure guests. 2.
The factors used to categorize lodging facilities are guest type, price, location, and style of service, and function. 1.
List the categories used to describe types of guests by type of stay.
Checking Concepts Answers
The factors used to categorize lodging facilities are guest type, price, location, and style of service, and function.
Categories used to describe guests by type of stay are business and leisure guests.
Business guests are those traveling for business purposes.
Describe a business guest.
continued

38. Checking Concepts
Identify three rates hotels use for yield management.
Properties identified by style and function are all-suite facilities, extended-stay facilities, bed-and-breakfasts, spas, boutique hotels, vacation properties, and retreat centers. 5.
The positions in the rooms division are front-office jobs at the front desk, in reservations, housekeeping, guest and uniformed services, and communications. 6.
Rates used for yield management are average daily rate (ADR), occupancy percentage (OCC%), and revenue per available room (RevPAR). 4.
Identify properties by type of style and function.
Checking Concepts Answers
Rates used for yield management are average daily rate (ADR), occupancy percentage (OCC%), and revenue per available room (RevPAR).
Properties identified by style and function are all-suite facilities, extended-stay facilities, bed-and-breakfasts, spas, boutique hotels, vacation properties, and retreat centers.
The positions in the rooms division are front-office jobs at the front desk, in reservations, housekeeping, guest and uniformed services, and communications.
List three positions in the rooms division.
continued

39. Checking Concepts Critical Thinking
Name the staff in uniformed services.
The importance of the sales and marketing staff is that they persuade guests to stay at a particular property or chain. Accept all reasonable answers that demonstrate an understanding of sales and marketing. 8.
Staff in uniformed services includes bell staff, valet staff, concierge, and security staff. 7.
Discuss the importance of the sales and marketing staff in the back-of-the-house lodging operations.
Critical Thinking
Checking Concepts Answers
Staff in uniformed services includes bell staff, valet staff, concierge, and security staff.
The importance of the sales and marketing staff is that they persuade guests to stay at a particular property or chain. Accept all reasonable answers that demonstrate an understanding of sales and marketing.

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