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Types of Hotel, Hotel Organization and Front Office Organization Week 1

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  1. Types of Hotel, Hotel Organization and Front Office OrganizationWeek 1 Subject : V0206 – Administrasi & Operasional Kantor Depan Year : 2009

  2. BIBLIOGRAPHY • James A. Bardi. (2007). Hotel Front Office Management. 4. John Wiley & Sons. New Jersey. • Peter Abbott and Sue Lewry. (1999). Front Office Procedures, Social Skills, Yield and Management. 2. Butterworth Heinemann. Oxford. • Dennis L. Foster. (1993). Rooms at the Inn: Front Office Operations and Administrations. McGraw Hill. • Woods. (2007). Professional Front Office Management. Prentice Hall. New Jersey. • Sue Baker, Pam Bradley & Jeremy Huyton. (1996). Principles of Hotel Front Office Operations. Hospitality Press Melbourne. Melbourne, Victoria. • Ilie Gabriel Wantah. (1998). Hospitality Guidelines Series: Front Office. Gramedia Pustaka Utama. Jakarta.

  3. Subject Historical overview of the hotel industry Hotel classification system Hotel organization Organization of the front office department Staffing the front office Function of the front office manager Equipment and forms used at the front office department

  4. Objectives: On completion of this lesson, the students will be able to: • Explain the hotel classification system, sales indicator in a hotel, organization structure of front office department • Identify the equipment and forms used in the front office department

  5. Founders of the Hotel Industry • E. M. Statler • 1863-1928 • First hotel was for Pan American Expo in 901 – “a simple structure of 5000 rooms to be torn down after the fair was over” • Statler’s chain was sold to Hilton in 1954 • William Waldorf Astor and John Jacob Astor IV • Cousins • 1893 built hotel for their wealthy friends • Moved from 34th to Park and Lexington between 49th and 50th Streets • Waldorf Towers is a hotel within a hotel

  6. Founders of the Hotel Industry • Conrad Hilton • 1887-1979 (after WWI ) in Cisco, TX • Purchased Mobley Hotel, 1919 • Purchased Chicago Hilton, Palmer House, Plaza, and Waldorf=Astoria hotels (after WWII) • First major chain in 1954 when he purchased Statler Hotels: • Marketing, reservations, quality of service • Food and beverage, housekeeping, accounting • Brands: • Hilton Garden Inns • Doubletree • Embassy Suites • Hampton Inns • Harrison Conference Centers • Homewood Suites by Hilton • Red Lion Hotels and Inns • Conrad International

  7. Founders of the Hotel Industry • Kemmons Wilson (died in Jan. 2003) • Family trip in 1952 • Central reservation system HOLIDEX • Ray Shultz • Protégé of Kemmons Wilson • Started Hampton Inn - 1984 • Limited service concept; cost consciousness

  8. Founders of the Hotel Industry J.W. Marriott • 1900-1985 • 1957 Twin Bridges Marriott Motor Hotel • Brands include: • Courtyard • Residence Inn • Renaissance Hotels & Resorts • Fairfield Inn • Spring Hill Suites • Towne Place Suites • Marriott Hotels, Resorts, and Suites • JW Marriott Hotels & Resorts

  9. Founders of the Hotel Industry Ernest Henderson and Robert Moore • First Sheraton in 1937 was Stonehaven, Springfield, MA • First hotel chain to be listed on NY Stock exchange • 1968 acquired by ITT Corp. • Owned by Starwood Hotels • Brands • Sheraton • Westin • Four Points • St. Regis • The Luxury Collection • W Hotels

  10. Historical Developments 1. Limited-service hotels - 1980 targeted business market on a limited budget – ex. Hampton Inn - Features: spacious comfortable room, limited food & beverage, first to offer 100% satisfaction guarantee 3. Technological Advances Recent additions to that list include: 1) applications of wireless technology for communication between departments; 2) guests can access email and other documents or printing those documents as needed from “hot spots” – designated wireless transmission and reception areas in the hotel.

  11. Historical Developments 4. Marketing emphasis – theme 1970’s- guest reservation/ single phone # 5. Total Quality Management (TQM)– a technique that helps managers look at process used to create products and services with a critical eye on improving those processes • 1990’s (TQM); 2000’s – “quality assurance” and “service quality” • Note: Chap. 11; analysis of delivery of service and product with decision making at front-line – empowerment

  12. Historical Developments 6.Major Reorganization 1987-88 • Passive losses on real estate no longer deductible • Japanese wanted buy hotels -> value of hotels increased • Recession increased and completed 7. Hotel investment • New incremental income streams – who manages hotels vs. who owns the hotel?

  13. Historical Developments 8. September 11, 2001 Attack on the U.S. • Decrease in the number of people willing to fly yields a decrease in number of rooms rented; this resulted in a banding together of tourism partners • Review marketing plans of post-9/11 corporate traveler. • Need to review security at front line of hotel who is coming into the hotel • Community responsibility for security activities • Review liability implications to repair facilities and guest security for effects of terrorism

  14. Overview of Lodging Industry Types of lodging facilities – • A. Hotels • Marriott Wardman Park Hotel http://www.wardmanpark.com/ • B. Motels • C. All-Suites example - Embassy Suites http://www.embassysuiteschicago.com/ • D. Limited – Service Hotels • E. Extended Stay Hotels – continued high occupancy • example - Homewood Suites http://www.homewoodsuitescharlotte.com/

  15. Levels of Service – Full-service – ex. J.W.Marriott reservations on-premise dining banquet meeting facilities recreation facilities All-Suites – ex. Embassy Suites at-home atmosphere separate living and sleeping areas or working areas kitchenette wet bars Lodging Overview

  16. Limited Service ex. Hampton Inns continental breakfast sleeping room modest furniture Extended –Stay ex. Homewood Suites home-away-from-home fully equipped kitchen spacious bedroom living areas light breakfast or dinner Lodging Overview

  17. Overview of Lodging Industry • Market Orientation – types of properties and who they serve • Residential • Public dining • Social activities • Recreational facilities • Commercial • Computerized reservation systems • Public dining • Banquet service, lounge and entertainment areas • Shuttle transportation to airports

  18. Sales Indicators: A. Occupancy Percentage: # rooms sold # rooms available 50 = 50 % 100 B. Average Daily Rate: room revenue # rooms sold $4000_ = $80 50 Lodging Overview

  19. Lodging Overview • YieldPercentageFacility’s success in selling its room inventory on a daily basis Rooms sold x ADR Rooms avail x Rack Rate 50 x $80 = $4,000 100 x $120 = $12,000 = 33.3 % Yield

  20. Lodging Overview • Revenue Per Available Room (RevPAR)Effectiveness of each room to produce a profit Room Revenue = $ 4,000 = $ 40 # rooms available 100 or Hotel occupancy % x ADR  50 % x $80 = $40

  21. Lodging Overview Business Affiliations • Chain affiliation • provide operational and marketing services • reservation systems • advertising • operations • management development

  22. Lodging Overview • Referral Property with a Chain • Assistance with management • Assistance with marketing, advertising and reservation • Company-owned Property Hotel owned and operated by the chain company • Management Contract Property Operated by a consulting company that provides operational and marketing expertise and a professional staff • Independent property Hotel not associated with a franchise

  23. Leisure time 3-day weekends Paid vacations 40 hour work weeks Early retirement Me/pleasure concept Shift from thinking that recreation and leisure were a privilege for wealthy only Travel vs. isolated nature of many jobs Discretionary income - money remaining after necessities of life are paid increase because of two in the family women in the workforce not a constant to depend upon: Unemployment low interest rate make the purchase of high ticket items more (homes, cars, boats) more desirable and make travel less likely Trends That Foster Growth

  24. Trends That Foster Growth • Family size/household size • Smaller families are more likely to have more discretionary income • Business travel • Oil/fuel oil prices/airfare • Fear • Business economy • Conf. call, PicTel

  25. Trends That Foster Growth Female business travel Increasing segment Amenities/safety Female travelers Travel as an experience Education – to follow-up what they have learned Culture – visit art, theatre, music, opera, ballet, museums Sports and nature Personal development/hobbies

  26. Career Development 1. Establishing Career Goals Know where you want to go 2. Educational Preparation Associate Baccalaureate Distance Learning Life-long Learning 3. Work Experience

  27. Professional Memberships American Hotel & Lodging Association http://www.ahla.com/ Certified Hotel Administrator (CHA) http://www.ei-ahla.org/certification_cha.asp Certified Rooms Division Executive (CRDE) http://www.ei-ahla.org/certification_crde.asp Hospitality Sales and Marketing Association International http://www.hsmai.org/ National Restaurant Association http://www.restaurant.org

  28. Career Development Ports of entry • Marketing and sales • Front office • Food and beverage • Controller

  29. Assistant General Manager Food and Beverage Director Plant Engineer Executive Housekeeper Human Resources Manager Marketing and Sales Director Front Office Manager Controller Director of Security Parking Garage Manager Departmental Managers

  30. Functions of the Front Office Manager Elements that enable the front office manager to effectively supervise. • Employees (training) • Equipment (PMS) • Inventory (rooms to be sold) • Budgeted finances • Sales opportunities

  31. Staffing the Front Office • Step 1: Estimate or forecast the needs department for a certain time period through review of the sales history of previous events, current functions, current reservations, anticipated walk-ins, stay overs, and check-outs for that time period to determine their impact upon labor requirements. • Step 2: Meet the needs of the lodging establishment and the needs of the employee. • Step 3: Calculate the anticipating payroll, requires the front office manager to go back and price-out each category of employee. • Step 4: Prepare a summary of costs by category to compare projected income for weekly room sales and weekly payroll.

  32. Equipment & Forms • Types of Software: Mayo, Maxial, Fidelio, Opera • Currency exchange board • Petty cash box • Computer and printer • Key rack (manual key) • Docket rack • Reservation form • Reservation confirmation form • Expected arrival list • Arrival list • Expected departure list • Departure list • Registration form

  33. Equipment & Forms • Guest card • Breakfast voucher • Welcome drink voucher • Rebate slip • Cash receipt • Miscellaneous form • Currency exchange form • Bellman control • Bellboy errand card • VIP list

  34. Review Questions 1 • Market orientation of a hotel refers to which of the following? • The ability of the hotel to attract guests • The stores surrounding the hotel • The type of guests attracted to a hotel • The geography of the hotel’s location 2. This concept measures a hotel manager’s efforts in achieving maximum occupancy at the highest room rate possible. a. Occupancy percentage b. Average rate c. Yield percentage d. Franchise agreement

  35. Review Questions 1 • 3. If a hotel sells 300 rooms in one night and has 400 rooms • available to sell, and attracts 600 guests for that night, the single • occupancy for that night is? • a. 75% b. 100% c. 50% d. 35% • 4. The double occupancy rate for the night listed in question number • 3 is which of the following? • a. 75% b. 100% c. 50% d. 35% • 5. A hotel has collected $10,000 in revenue for the night. They sold • 200 rooms. What is the average room rate? • a. $100 b. $50 c. $75 d. $85

  36. Review Questions 1 • 6. Levels of service of a hotel are indicated by which of the • following? • a. Full-service, all suites, limited-service, extended-stay • b. Franchise and independent services • c. Luxury, independent, top rated • d. Franchise, referral, limited-service • 7. This type of property is a hotel which is operated by a consulting • company that provides operational and marketing expertise and a • professional staff. • a. Management contract • b. Franchise • c. Limited-service • d. Full-service

  37. THANK YOU AND HAVE A GOOD DAY