Hospitality: answering each section

Journal #7

#07/A (MLO#01 - Distinguish between revenue centers and cost centers)

In typical hotels, revenue centers are areas that generate revenue, while cost centers involve expenses.

Examples of revenue centers:

· Rooms Department: This department is the main revenue center for most hotels, generating about 64.1 percent of total revenue. Since most of the hotel's floor space is devoted to rooms, their rent is the most significant source of revenue. It is important to note that for every dollar earned by this department, about 70% is available to cover overhead expenses after deducting operating costs.

· Food and Beverage Department: This department contributes 22.4 percent of the hotel's total revenue. It includes restaurants and bars, which not only generate direct sales but can also attract outside customers, further increasing revenue.

Examples of cost centers:

· Administrative and General Department: This cost center includes salaries and expenses for administrative staff, such as the general manager and support staff. It accounts for about 10 percent of total sales and includes essential functions such as accounting and human resources.

· Property Operations and Maintenance Department: This department deals with the maintenance and operations of the facility. Although it is critical to the operation of the hotel, it does not directly generate revenue, leading to significant costs that must be carefully managed.

If I were to become a hotel manager, I would be primarily concerned with the revenue centers, particularly the Rooms Department, since the revenue generated from rooms is crucial to the financial sustainability of the hotel. Every decision regarding room rates and reservation management can have a direct impact on the overall finances of the hotel.

#07/B (MLO#02 - Explain what a hotel must do to comply with the Americans with Disabilities Act)

To comply with the Americans with Disabilities Act (ADA), a hotel must make modifications to existing facilities and incorporate design features in new construction to ensure accessibility for people with disabilities. These people include those who use wheelchairs and those with sensory disabilities, such as blindness and deafness. The ADA applies to both employees and guests.

Measures that a hotel must take include:

· Accessible parking: At least 2 percent of parking spaces must be reserved for people with disabilities. Spaces must be wide enough to allow wheelchair access.

· Accessible entrances: There must be ramps and doors that allow easy entry.

· Reception: A section of the registration desk must be low to allow wheelchair users to see comfortably.

· Restrooms: They must have accessible cubicles that are spacious enough to receive assistance.

· Meeting rooms: Must have listening systems for people with hearing impairments and access ramps if platforms are present.

Personally, I have not noticed many specific accessibility measures in the various hotels, but I do know that many of them have access ramps and a lower reception area. Although I do not remember exactly which hotel I saw these features in, the ADA has influenced design and construction practices in the hotel industry by making spaces more inclusive for all guests.

#07/C (MLO#03 - Provide an example of financial controls used in hotels)

One example of useful financial control in a hotel is the Uniform System of Accounts for the Lodging Industry, a system that classifies hotel revenues and expenses by department. This system is critical for managers, as it allows them to monitor the progress of operations and ensure that financial goals are met.

Financial statements and operating ratios are essential tools, as they provide a clear view of total sales, expenses incurred, and resulting profit or loss. These tools help not only to understand the hotel's financial performance, but also to plan future strategies.

If I were the general manager of a hotel, I would review these controls weekly. This frequency would allow me to constantly monitor financial performance, identify any issues in real time, and make the necessary corrections to ensure the sustainability and success of the hotel. Careful management of finances is crucial in an industry where profit margins can be thin.

#07/D (MLO#04 - Describe the broad use of technology in hotels)

Technology is used in hotels in various ways to improve efficiency and guest experience. Here are three examples:

· Mobile keys: Many hotels have adopted mobile key technology, which allows guests to use their smartphones to unlock their room door. Through a mobile app, guests can tap a button or bring their phone close to the door to access their room. This system also provides access to other hotel facilities, such as the gym or garage, making the whole process more convenient.

· Personalized check-in system: Mobile apps allow guests to check in prior to arrival and even choose their room and floor. This eliminates the need to wait at the front desk to receive room assignments and allows hotels to reduce the administrative burden, focusing more on hospitality.

· Accounting and inventory management systems: Hotels use accounting systems to maintain records of all financial transactions, while inventory management systems monitor food and beverage quantities, generating reports for reorders. These systems help streamline operations and ensure effective resource management.

One of the most recent and influential technological innovations in improving guest satisfaction is the mobile key system. This system not only simplifies access to rooms, but also provides a more personalized and frictionless experience, helping to make guests' stay more enjoyable.