ADHM 360 Lecture 1: Ch. 1
20 Jun 2018
School
Department
Course
Professor
U.S Lodging Industry Key takeaways
53,400+ properties with over 5 million rooms
○
$176 Billion in revenue
○
64.4% Average Occupancy Rate (AOR)
○
$74.12 Revenue Per Available Room
○
1.9 Million People Employed
○
•
Key Lodging Demand Factors
Overall Economy
○
Oil Prices
1% Increase in the price of crude oil results in .06-.09% decline in
lodging demand
§
Airline Ticket Prices
§
○
Population Demographics
People above 45 years of age tend to be the most intensive
consumers of lodging.
§
○
•
Typical Lodging Customers
Business Travelers 40%
Characteristics:
Primary Market for hotels
1.
More than 35 million people take business trips/year
2.
Male dominant, but increasing number of females
3.
Travel alone 68%
4.
Location is a key lodging selection factor
5.
Pays $129/ night
6.
§
○
Leisure Travelers 60%
Characteristics:
More price conscious than business travelers
1.
Travel by auto (81%)
2.
Two adults (50%)
3.
Less loyal than business travelers
4.
Pay $109/ night
5.
§
○
•
History of American Hotels
1794- First Hotel "City Hotel" New York City
○
1829- Tremont House "First Luxury Hotel" Boston, MA
○
1907- First Chain Hotel "Hotel Statler" in Buffalo, NY
Moderately priced rooms for the average traveler "A room and a
bath for a dollar and a half"
§
Late sold to Conrad Hilton's Hilton Hotel in 1954.
§
○
1919- First Hilton hotel "The Mobley" in Cisco, TX by Conrad Hilton
○
1922-First Collegiate program in HRM at Cornell University
○
1933-Great Depression: Lowest Average Occupancy rate 51%
○
1939 First referral chain-"quality courts (Later Choice Hotel"
○
1945-Listed on the NYSE "Sheraton Hotel"
○
1946-First Casino Hotel- The Flamingo
○
1952-Kemmons Wilson opened the first "Holiday Inn" in Memphis Tenn.
○
1957-Franchised the chain as "Holiday Inn of America"
○
1988-Was purchased by Bass PLC.
○
1954-Howard Johnson initiates first lodging franchise in Savannah, GA
○
1957-J.W. Marriott opened his first hotel "Twin Bridges Marriott Motor
Hotel in Arlington, VA
○
1962-First "Model 6" Opened in Santa Barbara, CA
○
1984-First all-suite hotel chain- "Embassy Suites Hotel" overland Park, KS
○
1988-First extended stay segment introduced "Residence Inns" &
"Homewood Suites"
○
1989- First hotel chain to introduce the 100% satisfaction guarantee-
"Hampton Inn"
○
1999-First Boutique segment introduced with the opening of "W"
○
•
Top 5 Hotel Companies in world
Marriott International &Starwood Hotels & Resorts 1.
Hilton2.
InterContinental Hotel Group3.
Wyndham 4.
Choice Hotels 5.
Others: Accor Best Western, Home Inns, Carlson, Hyatt6.
•
Marriott International
Acquired Starwood Hotels & Resorts and became the worlds largest hotel
company in 2016
○
4,000 properties in 80 countries
○
30 Hotel Brands: Ritz-Carlton, JW Marriott, renaissance, Marriot, Marriott
Executive Apartments, Marriot Vacation Club…
○
•
Hilton Hotels
First Hilton, The Mobley Cisco Tx 1929
○
•
InterContinental•
Wydham•
Choice Hotels
Built on foundation of "Quality inn" in
○
•
Top 10 Hotel Brands in U.S
Holiday inn Express1.
Marriott 2.
Courtyard Marriott3.
Days Inn4.
Hampoton inn5.
Motel 66.
Holiday inn7.
Quality inn8.
Super 89.
Hilton10.
•
Lodging Industry Classification
Classify the lodging industry Is not easy
○
It can be classified in several ways
Quality:
Hotel Rating Schemes
Wide variety of rating schemes around the world
(In U.S. Star rating and Diamond Ratings)
◊
A single public standard enforced by
governmental agencies
◊
Defined by hotel associations
◊
Defined by travel related organizations
◊
®
AAA
Diamonds:
. Mobile
Stars
Examples
Luxury5- . Deluxe Four Seasons, Ritz-
Carlton, Park Hyatt
Upscale4- . Superior Crowne Plaza, JW
Marriott, Double
Tree, Hilton
3-
Comprehens
ive
. First
Class
Hampton Inns,
Holiday Inns Four
points, Quality Inns
2-Modest . Moderat
e
Best Wester,
Howard Johnson,
Comfort Inns
1- . Motel 6, Super 8
®
AAA Diamond Rating:
Most popular
◊
A facility applies for evaluation voluntarily and
can receive 1 to 5 diamonds
◊
Based on the quality of the services and facilities
provided.
◊
34 basic criteria include
Style of operation
}
Guest rooms security
}
Housekeeping and maintenance
}
Room décor and furnishings
}
Bathroom fixtures
}
Amenities
}
◊
®
□
§
Properties By Location
Highway 30.8%□
Urban 20.8%□
Resort 20.8%□
Airport 6.4%□
Suburban 211%□
§
Customer Base
Business hotels□
Motels□
Condominium hotels□
§
Type of Service
Limited Service- Budget establishments with limited service□
Extended Stay- (Emerged in 1995) Provide more amenities of
furnished apartment style living with some of the services of a
full service hotel
□
Full Service- Deluxe, Luxury, upscale, and mid-scale with food
and beverage quality is higher
□
§
○
•
Organizing- To achieve organizational goals
Organizational design: developments in or changes to the structure
of an organization
§
Organizational structures: Framework for
Task allocation□
Coordination□
Supervision□
§
Organizational Chart: A schematic representation of the relationships
between positions within an organization
○
Elements of an organizational structure
Organizational structure can be established through
Job specialization- the process of focusing one's occupational
concentration on a specific area of expertise
Specialization increases worker productivity and
efficiency
®
Some concerns of over-specialization:
Lowered employee satisfaction, motivation, and
morale
◊
More need for managerial control and
coordination
◊
Reduction in service quality
◊
®
□
Departmentalization- As facilities grow in size, more need for
efficient control and coordination. Group certain jobs or
functions (Departmentalization)
Classifying functional areas:
Front of house vs. Back of house
◊
Revenue center vs support center
◊
Departments
◊
®
Functional Organizational Design
Pros:
Specialized skills and knowledge
}
Efficient and productive
}
Training becomes easier
}
Supervision is easier
}
◊
Cons
Functionality can exclude the totality
concept of activities to satisfy the guest in a
hotel
Coordination of service processes is
critical
–
}
◊
®
Rooms Division:
The front office
Most visible department
}
Guest reception
}
Registration
}
Room assignment
}
Tracking the status of rooms
}
Maintaining guest accounts and monitor
credit limits
}
Handling guest inquiries
}
Reservation
Receiving and processing reservation
requests
–
Managing the hotel's reservation
channels
–
Contributing to maximize occupancy
and room revenue
–
}
Telecommunications
Also called PBX (private branch
exchange)
–
Answering and distributing calls
–
Coordinating
–
}
Uniformed service
Provide the most personalized service
–
Bell attendants
–
Door attendants
–
Valet parking attendants
–
Concierges
–
}
House Keeping
Most important support function for
the front office
–
Cleaning occupied and rated rooms
–
Inspecting rooms before releasing
them for sales
Effective communication
between house keeping and
front desk is critical
w
–
}
Security
Security and safety problems by:
Guest
w
Employees
w
Uninvited intruders
w
–
Depending on the size of the facility,
security function may be handled by:
A fully staffed department
w
An outside security company
w
Assigned to designated staff
members or a department
w
–
}
Engineering & Maintenance
Typically responsible for
Preventive maintenance
Repair and replace
furniture, fixtures, and
equipment (FFE)
w
Ensuring uninterrupted
provision of utilities
w
w
–
}
Food & Beverage
Ranks second to rooms division in
terms of total revenue
–
Providing food and drink to hotel
guests through
Coffee shops, specialty
restaurants, poolside snack
bars, lounges, banquets,
nightclubs
w
–
}
Sales & Marketing
The size of the department can vary
widely depending on the hotel size
–
Major functions within the sales and
marketing department
Sales
w
Convention and meeting
services
w
Advertising
w
Public relations
w
–
}
Human Resources
Major responsibilities
Recruitment
w
Selection and placement
w
Training
w
Compensation management
w
–
}
Accounting
Major responsibilities
Recording financial transactions
w
Preparing and interpreting
financial statements
w
Providing other departments
with timely reports
w
–
Additional activities
Payroll preparation
w
Accounts receivable
w
Accounts payable
w
–
}
General Manager
Oversees all departments
–
Defines and interprets the policis
established by top management
–
Liaison to the owner or corporate
parent
–
Establish hotel wide goals and
strategy
–
Coordinate activates between
departments
–
Arbitrates interdepartmental disputes
–
Must posses great technical and
analytical skills
–
}
◊
®
□
Establishment of Patterns of authority
Chain of command
Formal channel of authority from top to bottom
◊
Formal reporting relationship
◊
®
Decentralization vs. Centralization of Authority
Decentralization
Distributing authority throughout an
organization
}
◊
Centralization
Retention of decision-making authority by a
high-level manager
}
◊
®
□
Span of Control
Number of people who report to one manager
Flat organization (Wide span of control)
A large number of employees report ton
one manager
}
◊
Tall organization (Narrow span of control)
A small number of employees report to one
supervisor
}
◊
®
Ideal # in a span of control depends on a variety of
factors such as:
Task similarity (High = Wide)
◊
Training and professionalism (High = Narrow)
◊
Task certainty ( High = Wide)
◊
Frequency of interaction (High = Narrow)
◊
®
□
§
○
•
Meetings & Committees
Enhance communication and ssit in completing projects
○
Various types of meetings:
Operations
§
Staff
§
Sales forecast and marketing
§
Departmental
§
Sub departmental
§
Safety, energy, etc.
§
○
•
Future Organization of hotels
Key organizational trends
○
Visionary leadership
○
Globalization
○
Diversity
○
Flexibility
○
Flat Structure
○
Customer focus….
○
•
Career Paths & Opportunities
Levels of management in the lodging industry
Top Management
§
Middle Management
§
First-line Management
§
○
Caret path in hotel business
Assistant manager of the reservations department
§
Reservations department manager
§
Rooms department manager
§
Resident manager
§
General manager
§
Regional manager
§
○
•
Ch. 1
Thursday, January 11, 2018
11:03 AM
U.S Lodging Industry Key takeaways
53,400+ properties with over 5 million rooms
○
$176 Billion in revenue
○
64.4% Average Occupancy Rate (AOR)
○
$74.12 Revenue Per Available Room
○
1.9 Million People Employed
○
•
Key Lodging Demand Factors
Overall Economy
○
Oil Prices
1% Increase in the price of crude oil results in .06-.09% decline in
lodging demand
§
Airline Ticket Prices
§
○
Population Demographics
People above 45 years of age tend to be the most intensive
consumers of lodging.
§
○
•
Typical Lodging Customers
Business Travelers 40%
Characteristics:
Primary Market for hotels1.
More than 35 million people take business trips/year2.
Male dominant, but increasing number of females3.
Travel alone 68%4.
Location is a key lodging selection factor5.
Pays $129/ night6.
§
○
Leisure Travelers 60%
Characteristics:
More price conscious than business travelers1.
Travel by auto (81%)2.
Two adults (50%)3.
Less loyal than business travelers4.
Pay $109/ night5.
§
○
•
History of American Hotels
1794- First Hotel "City Hotel" New York City
○
1829- Tremont House "First Luxury Hotel" Boston, MA
○
1907- First Chain Hotel "Hotel Statler" in Buffalo, NY
Moderately priced rooms for the average traveler "A room and a
bath for a dollar and a half"
§
Late sold to Conrad Hilton's Hilton Hotel in 1954.
§
○
1919- First Hilton hotel "The Mobley" in Cisco, TX by Conrad Hilton
○
1922-First Collegiate program in HRM at Cornell University
○
1933-Great Depression: Lowest Average Occupancy rate 51%
○
1939 First referral chain-"quality courts (Later Choice Hotel"
○
1945-Listed on the NYSE "Sheraton Hotel"
○
1946-First Casino Hotel- The Flamingo
○
1952-Kemmons Wilson opened the first "Holiday Inn" in Memphis Tenn.
○
1957-Franchised the chain as "Holiday Inn of America"
○
1988-Was purchased by Bass PLC.
○
1954-Howard Johnson initiates first lodging franchise in Savannah, GA
○
1957-J.W. Marriott opened his first hotel "Twin Bridges Marriott Motor
Hotel in Arlington, VA
○
1962-First "Model 6" Opened in Santa Barbara, CA
○
1984-First all-suite hotel chain- "Embassy Suites Hotel" overland Park, KS
○
1988-First extended stay segment introduced "Residence Inns" &
"Homewood Suites"
○
1989- First hotel chain to introduce the 100% satisfaction guarantee-
"Hampton Inn"
○
1999-First Boutique segment introduced with the opening of "W"
○
•
Top 5 Hotel Companies in world
Marriott International &Starwood Hotels & Resorts
1.
Hilton
2.
InterContinental Hotel Group
3.
Wyndham
4.
Choice Hotels
5.
Others: Accor Best Western, Home Inns, Carlson, Hyatt
6.
•
Marriott International
Acquired Starwood Hotels & Resorts and became the worlds largest hotel
company in 2016
○
4,000 properties in 80 countries
○
30 Hotel Brands: Ritz-Carlton, JW Marriott, renaissance, Marriot, Marriott
Executive Apartments, Marriot Vacation Club…
○
•
Hilton Hotels
First Hilton, The Mobley Cisco Tx 1929
○
•
InterContinental•
Wydham•
Choice Hotels
Built on foundation of "Quality inn" in
○
•
Top 10 Hotel Brands in U.S
Holiday inn Express1.
Marriott 2.
Courtyard Marriott3.
Days Inn4.
Hampoton inn5.
Motel 66.
Holiday inn7.
Quality inn8.
Super 89.
Hilton10.
•
Lodging Industry Classification
Classify the lodging industry Is not easy
○
It can be classified in several ways
Quality:
Hotel Rating Schemes
Wide variety of rating schemes around the world
(In U.S. Star rating and Diamond Ratings)
◊
A single public standard enforced by
governmental agencies
◊
Defined by hotel associations
◊
Defined by travel related organizations
◊
®
AAA
Diamonds:
. Mobile
Stars
Examples
Luxury5- . Deluxe Four Seasons, Ritz-
Carlton, Park Hyatt
Upscale4- . Superior Crowne Plaza, JW
Marriott, Double
Tree, Hilton
3-
Comprehens
ive
. First
Class
Hampton Inns,
Holiday Inns Four
points, Quality Inns
2-Modest . Moderat
e
Best Wester,
Howard Johnson,
Comfort Inns
1- . Motel 6, Super 8
®
AAA Diamond Rating:
Most popular
◊
A facility applies for evaluation voluntarily and
can receive 1 to 5 diamonds
◊
Based on the quality of the services and facilities
provided.
◊
34 basic criteria include
Style of operation
}
Guest rooms security
}
Housekeeping and maintenance
}
Room décor and furnishings
}
Bathroom fixtures
}
Amenities
}
◊
®
□
§
Properties By Location
Highway 30.8%□
Urban 20.8%□
Resort 20.8%□
Airport 6.4%□
Suburban 211%□
§
Customer Base
Business hotels□
Motels□
Condominium hotels□
§
Type of Service
Limited Service- Budget establishments with limited service□
Extended Stay- (Emerged in 1995) Provide more amenities of
furnished apartment style living with some of the services of a
full service hotel
□
Full Service- Deluxe, Luxury, upscale, and mid-scale with food
and beverage quality is higher
□
§
○
•
Organizing- To achieve organizational goals
Organizational design: developments in or changes to the structure
of an organization
§
Organizational structures: Framework for
Task allocation□
Coordination□
Supervision□
§
Organizational Chart: A schematic representation of the relationships
between positions within an organization
○
Elements of an organizational structure
Organizational structure can be established through
Job specialization- the process of focusing one's occupational
concentration on a specific area of expertise
Specialization increases worker productivity and
efficiency
®
Some concerns of over-specialization:
Lowered employee satisfaction, motivation, and
morale
◊
More need for managerial control and
coordination
◊
Reduction in service quality
◊
®
□
Departmentalization- As facilities grow in size, more need for
efficient control and coordination. Group certain jobs or
functions (Departmentalization)
Classifying functional areas:
Front of house vs. Back of house
◊
Revenue center vs support center
◊
Departments
◊
®
Functional Organizational Design
Pros:
Specialized skills and knowledge
}
Efficient and productive
}
Training becomes easier
}
Supervision is easier
}
◊
Cons
Functionality can exclude the totality
concept of activities to satisfy the guest in a
hotel
Coordination of service processes is
critical
–
}
◊
®
Rooms Division:
The front office
Most visible department
}
Guest reception
}
Registration
}
Room assignment
}
Tracking the status of rooms
}
Maintaining guest accounts and monitor
credit limits
}
Handling guest inquiries
}
Reservation
Receiving and processing reservation
requests
–
Managing the hotel's reservation
channels
–
Contributing to maximize occupancy
and room revenue
–
}
Telecommunications
Also called PBX (private branch
exchange)
–
Answering and distributing calls
–
Coordinating
–
}
Uniformed service
Provide the most personalized service
–
Bell attendants
–
Door attendants
–
Valet parking attendants
–
Concierges
–
}
House Keeping
Most important support function for
the front office
–
Cleaning occupied and rated rooms
–
Inspecting rooms before releasing
them for sales
Effective communication
between house keeping and
front desk is critical
w
–
}
Security
Security and safety problems by:
Guest
w
Employees
w
Uninvited intruders
w
–
Depending on the size of the facility,
security function may be handled by:
A fully staffed department
w
An outside security company
w
Assigned to designated staff
members or a department
w
–
}
Engineering & Maintenance
Typically responsible for
Preventive maintenance
Repair and replace
furniture, fixtures, and
equipment (FFE)
w
Ensuring uninterrupted
provision of utilities
w
w
–
}
Food & Beverage
Ranks second to rooms division in
terms of total revenue
–
Providing food and drink to hotel
guests through
Coffee shops, specialty
restaurants, poolside snack
bars, lounges, banquets,
nightclubs
w
–
}
Sales & Marketing
The size of the department can vary
widely depending on the hotel size
–
Major functions within the sales and
marketing department
Sales
w
Convention and meeting
services
w
Advertising
w
Public relations
w
–
}
Human Resources
Major responsibilities
Recruitment
w
Selection and placement
w
Training
w
Compensation management
w
–
}
Accounting
Major responsibilities
Recording financial transactions
w
Preparing and interpreting
financial statements
w
Providing other departments
with timely reports
w
–
Additional activities
Payroll preparation
w
Accounts receivable
w
Accounts payable
w
–
}
General Manager
Oversees all departments
–
Defines and interprets the policis
established by top management
–
Liaison to the owner or corporate
parent
–
Establish hotel wide goals and
strategy
–
Coordinate activates between
departments
–
Arbitrates interdepartmental disputes
–
Must posses great technical and
analytical skills
–
}
◊
®
□
Establishment of Patterns of authority
Chain of command
Formal channel of authority from top to bottom
◊
Formal reporting relationship
◊
®
Decentralization vs. Centralization of Authority
Decentralization
Distributing authority throughout an
organization
}
◊
Centralization
Retention of decision-making authority by a
high-level manager
}
◊
®
□
Span of Control
Number of people who report to one manager
Flat organization (Wide span of control)
A large number of employees report ton
one manager
}
◊
Tall organization (Narrow span of control)
A small number of employees report to one
supervisor
}
◊
®
Ideal # in a span of control depends on a variety of
factors such as:
Task similarity (High = Wide)
◊
Training and professionalism (High = Narrow)
◊
Task certainty ( High = Wide)
◊
Frequency of interaction (High = Narrow)
◊
®
□
§
○
•
Meetings & Committees
Enhance communication and ssit in completing projects
○
Various types of meetings:
Operations
§
Staff
§
Sales forecast and marketing
§
Departmental
§
Sub departmental
§
Safety, energy, etc.
§
○
•
Future Organization of hotels
Key organizational trends
○
Visionary leadership
○
Globalization
○
Diversity
○
Flexibility
○
Flat Structure
○
Customer focus….
○
•
Career Paths & Opportunities
Levels of management in the lodging industry
Top Management
§
Middle Management
§
First-line Management
§
○
Caret path in hotel business
Assistant manager of the reservations department
§
Reservations department manager
§
Rooms department manager
§
Resident manager
§
General manager
§
Regional manager
§
○
•
Ch. 1
Thursday, January 11, 2018 11:03 AM
U.S Lodging Industry Key takeaways
53,400+ properties with over 5 million rooms
○
$176 Billion in revenue
○
64.4% Average Occupancy Rate (AOR)
○
$74.12 Revenue Per Available Room
○
1.9 Million People Employed
○
•
Key Lodging Demand Factors
Overall Economy
○
Oil Prices
1% Increase in the price of crude oil results in .06-.09% decline in
lodging demand
§
Airline Ticket Prices
§
○
Population Demographics
People above 45 years of age tend to be the most intensive
consumers of lodging.
§
○
•
Typical Lodging Customers
Business Travelers 40%
Characteristics:
Primary Market for hotels1.
More than 35 million people take business trips/year2.
Male dominant, but increasing number of females3.
Travel alone 68%4.
Location is a key lodging selection factor5.
Pays $129/ night6.
§
○
Leisure Travelers 60%
Characteristics:
More price conscious than business travelers1.
Travel by auto (81%)2.
Two adults (50%)3.
Less loyal than business travelers4.
Pay $109/ night5.
§
○
•
History of American Hotels
1794- First Hotel "City Hotel" New York City
○
1829- Tremont House "First Luxury Hotel" Boston, MA
○
1907- First Chain Hotel "Hotel Statler" in Buffalo, NY
Moderately priced rooms for the average traveler "A room and a
bath for a dollar and a half"
§
Late sold to Conrad Hilton's Hilton Hotel in 1954.
§
○
1919- First Hilton hotel "The Mobley" in Cisco, TX by Conrad Hilton
○
1922-First Collegiate program in HRM at Cornell University
○
1933-Great Depression: Lowest Average Occupancy rate 51%
○
1939 First referral chain-"quality courts (Later Choice Hotel"
○
1945-Listed on the NYSE "Sheraton Hotel"
○
1946-First Casino Hotel- The Flamingo
○
1952-Kemmons Wilson opened the first "Holiday Inn" in Memphis Tenn.
○
1957-Franchised the chain as "Holiday Inn of America"
○
1988-Was purchased by Bass PLC.
○
1954-Howard Johnson initiates first lodging franchise in Savannah, GA
○
1957-J.W. Marriott opened his first hotel "Twin Bridges Marriott Motor
Hotel in Arlington, VA
○
1962-First "Model 6" Opened in Santa Barbara, CA
○
1984-First all-suite hotel chain- "Embassy Suites Hotel" overland Park, KS
○
1988-First extended stay segment introduced "Residence Inns" &
"Homewood Suites"
○
1989- First hotel chain to introduce the 100% satisfaction guarantee-
"Hampton Inn"
○
1999-First Boutique segment introduced with the opening of "W"
○
•
Top 5 Hotel Companies in world
Marriott International &Starwood Hotels & Resorts 1.
Hilton2.
InterContinental Hotel Group3.
Wyndham 4.
Choice Hotels 5.
Others: Accor Best Western, Home Inns, Carlson, Hyatt6.
•
Marriott International
Acquired Starwood Hotels & Resorts and became the worlds largest hotel
company in 2016
○
4,000 properties in 80 countries
○
30 Hotel Brands: Ritz-Carlton, JW Marriott, renaissance, Marriot, Marriott
Executive Apartments, Marriot Vacation Club…
○
•
Hilton Hotels
First Hilton, The Mobley Cisco Tx 1929
○
•
InterContinental
•
Wydham
•
Choice Hotels
Built on foundation of "Quality inn" in
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Top 10 Hotel Brands in U.S
Holiday inn Express
1.
Marriott
2.
Courtyard Marriott
3.
Days Inn
4.
Hampoton inn
5.
Motel 6
6.
Holiday inn
7.
Quality inn
8.
Super 8
9.
Hilton
10.
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Lodging Industry Classification
Classify the lodging industry Is not easy
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It can be classified in several ways
Quality:
Hotel Rating Schemes
Wide variety of rating schemes around the world
(In U.S. Star rating and Diamond Ratings)
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A single public standard enforced by
governmental agencies
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Defined by hotel associations
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Defined by travel related organizations
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®
AAA
Diamonds:
.
Mobile
Stars
Examples
Luxury
5-
.
Deluxe
Four Seasons, Ritz-
Carlton, Park Hyatt
Upscale
4-
.
Superior
Crowne Plaza, JW
Marriott, Double
Tree, Hilton
3-
Comprehens
ive
.
First
Class
Hampton Inns,
Holiday Inns Four
points, Quality Inns
2-Modest . Moderat
e
Best Wester,
Howard Johnson,
Comfort Inns
1- . Motel 6, Super 8
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AAA Diamond Rating:
Most popular
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A facility applies for evaluation voluntarily and
can receive 1 to 5 diamonds
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Based on the quality of the services and facilities
provided.
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34 basic criteria include
Style of operation
}
Guest rooms security
}
Housekeeping and maintenance
}
Room décor and furnishings
}
Bathroom fixtures
}
Amenities
}
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□
§
Properties By Location
Highway 30.8%□
Urban 20.8%□
Resort 20.8%□
Airport 6.4%□
Suburban 211%□
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Customer Base
Business hotels□
Motels□
Condominium hotels□
§
Type of Service
Limited Service- Budget establishments with limited service□
Extended Stay- (Emerged in 1995) Provide more amenities of
furnished apartment style living with some of the services of a
full service hotel
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Full Service- Deluxe, Luxury, upscale, and mid-scale with food
and beverage quality is higher
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§
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Organizing- To achieve organizational goals
Organizational design: developments in or changes to the structure
of an organization
§
Organizational structures: Framework for
Task allocation□
Coordination□
Supervision□
§
Organizational Chart: A schematic representation of the relationships
between positions within an organization
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Elements of an organizational structure
Organizational structure can be established through
Job specialization- the process of focusing one's occupational
concentration on a specific area of expertise
Specialization increases worker productivity and
efficiency
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Some concerns of over-specialization:
Lowered employee satisfaction, motivation, and
morale
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More need for managerial control and
coordination
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Reduction in service quality
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Departmentalization- As facilities grow in size, more need for
efficient control and coordination. Group certain jobs or
functions (Departmentalization)
Classifying functional areas:
Front of house vs. Back of house
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Revenue center vs support center
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Departments
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Functional Organizational Design
Pros:
Specialized skills and knowledge
}
Efficient and productive
}
Training becomes easier
}
Supervision is easier
}
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Cons
Functionality can exclude the totality
concept of activities to satisfy the guest in a
hotel
Coordination of service processes is
critical
–
}
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Rooms Division:
The front office
Most visible department
}
Guest reception
}
Registration
}
Room assignment
}
Tracking the status of rooms
}
Maintaining guest accounts and monitor
credit limits
}
Handling guest inquiries
}
Reservation
Receiving and processing reservation
requests
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Managing the hotel's reservation
channels
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Contributing to maximize occupancy
and room revenue
–
}
Telecommunications
Also called PBX (private branch
exchange)
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Answering and distributing calls
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Coordinating
–
}
Uniformed service
Provide the most personalized service
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Bell attendants
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Door attendants
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Valet parking attendants
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Concierges
–
}
House Keeping
Most important support function for
the front office
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Cleaning occupied and rated rooms
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Inspecting rooms before releasing
them for sales
Effective communication
between house keeping and
front desk is critical
w
–
}
Security
Security and safety problems by:
Guest
w
Employees
w
Uninvited intruders
w
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Depending on the size of the facility,
security function may be handled by:
A fully staffed department
w
An outside security company
w
Assigned to designated staff
members or a department
w
–
}
Engineering & Maintenance
Typically responsible for
Preventive maintenance
Repair and replace
furniture, fixtures, and
equipment (FFE)
w
Ensuring uninterrupted
provision of utilities
w
w
–
}
Food & Beverage
Ranks second to rooms division in
terms of total revenue
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Providing food and drink to hotel
guests through
Coffee shops, specialty
restaurants, poolside snack
bars, lounges, banquets,
nightclubs
w
–
}
Sales & Marketing
The size of the department can vary
widely depending on the hotel size
–
Major functions within the sales and
marketing department
Sales
w
Convention and meeting
services
w
Advertising
w
Public relations
w
–
}
Human Resources
Major responsibilities
Recruitment
w
Selection and placement
w
Training
w
Compensation management
w
–
}
Accounting
Major responsibilities
Recording financial transactions
w
Preparing and interpreting
financial statements
w
Providing other departments
with timely reports
w
–
Additional activities
Payroll preparation
w
Accounts receivable
w
Accounts payable
w
–
}
General Manager
Oversees all departments
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Defines and interprets the policis
established by top management
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Liaison to the owner or corporate
parent
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Establish hotel wide goals and
strategy
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Coordinate activates between
departments
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Arbitrates interdepartmental disputes
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Must posses great technical and
analytical skills
–
}
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Establishment of Patterns of authority
Chain of command
Formal channel of authority from top to bottom
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Formal reporting relationship
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Decentralization vs. Centralization of Authority
Decentralization
Distributing authority throughout an
organization
}
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Centralization
Retention of decision-making authority by a
high-level manager
}
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Span of Control
Number of people who report to one manager
Flat organization (Wide span of control)
A large number of employees report ton
one manager
}
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Tall organization (Narrow span of control)
A small number of employees report to one
supervisor
}
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Ideal # in a span of control depends on a variety of
factors such as:
Task similarity (High = Wide)
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Training and professionalism (High = Narrow)
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Task certainty ( High = Wide)
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Frequency of interaction (High = Narrow)
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Meetings & Committees
Enhance communication and ssit in completing projects
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Various types of meetings:
Operations
§
Staff
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Sales forecast and marketing
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Departmental
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Sub departmental
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Safety, energy, etc.
§
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Future Organization of hotels
Key organizational trends
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Visionary leadership
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Globalization
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Diversity
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Flexibility
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Flat Structure
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Customer focus….
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Career Paths & Opportunities
Levels of management in the lodging industry
Top Management
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Middle Management
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First-line Management
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Caret path in hotel business
Assistant manager of the reservations department
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Reservations department manager
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Rooms department manager
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Resident manager
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General manager
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Regional manager
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Ch. 1
Thursday, January 11, 2018 11:03 AM
