Importance
PAT24
pg._76-83.docxGlencoe Marketing Series: I II. Hospitality and Tourism ! 4. The Hotel Business I ©The McGraw-Hill
Hospitality and Tourism Markets Companies, 2006
Chapter 4 The Hotel Business 81
meal plan a room rate that includes meals; some choices of meal plans are: European Plan, Continental Plan, Bermuda Plan, Modified American Plan, and American Plan
CONNECT
What type of meal plan do you think is most popular? Why?
yield management a system of maximizing revenue through adjusting room rates according to demand
average daily rate (ADR) a rate based on total sales for the day divided by the total number of sold rooms
occupancy percentage (OCC%) a percentage calculated daily and based on the number of rooms sold as a percentage of the total number of available rooms
revenue per available room (revPAR) a rate that reflects a hotel's revenue per available room
· Meals—Room rates, particularly in the United States, do not traditionally include meals. However, some all-inclusive resorts do include meals in their prices. A meal plan is a room rate that includes meals; some choices of meal plans are:
· European Plan (EP): no meals included, room only.
· Continental Plan (CP): continental breakfast included. Breakfast most often includes coffee/tea, rolls/toast, and jams.
· Bermuda Plan (BP): full breakfast, coffee/tea, juice, toast, eggs, and sometimes breakfast meats.
· Modified American Plan (MAP): full breakfast and lunch or dinner.
· American Plan (AP): also called full pension/full board, includes three meals per day.
YIELD MANAGEMENT The goal of any hotel is to maintain a high occupancy rate. Occupancy is based on the supply (number of rooms available) and the demand (the number of guests needing sleeping rooms). Guests want to get the best value for the dollar. Hotels balance this against their goal of achieving a high daily rate. Most properties do this through yield management. Yield management is a system of maximizing revenue through adjusting room rates according to demand. Hotels use various formulas to calculate their rates: (See Figure 4.1.)
· Average Daily Rate (ADR)—The ADR is a rate based on total sales for the day divided by the total number of rooms sold.
· Occupancy Percentage (OCC%)—The OCC is a percentage calculated daily. It is based on the number of rooms sold as a percentage of the total number of available rooms.
· Revenue Per Available Room (RevPAR)—RevPAR is a rate that reflects a hotel's revenue per available room. Room revenue is a good indicator of a hotel's performance.
·
Figure 4.1
Hospitality Yield Management
MAXIMIZING REVENUE Hotels keep track of various rates, including occupancy rates and revenue collected, to know what rates should be charged. What is the definition of yield management?
Total Available Rooms: Rooms Sold: Revenue:
ADR: revenue + rooms sold = ADR
0CC%
$56,250 450 = $125 0CC%: rooms sold + total available rooms:
50 + 500 = .90 or 90% RevPAR: revenue -5- total available rooms = RevPAR
$56,250 ■*■ 500 = $112.50
500 450 $56,250
76 Unit 2 Hospitality & Tourism Markets
Glencos Marketing Series: II. Hospitality and Tourism [ 4. The Hotel Business I I ©The McGraw-Hill
Hospitality and Tourism Markets Companies, 2006
Chapter 4 The Hotel Business 81
Location
It is said that you can change anything about a lodging property except its location. Therefore, location is a critical factor affecting the room rate that a property can charge its guests.
RESORTS Resort facilities are usually located in private or secluded areas. They provide a variety of recreational offerings to their guests, ranging from multiple pools, tennis courts, and golf courses to less-structured offerings, such as walking trails, beaches, and bike paths. Ski resorts specialize in winter sports, including snowshoeing, tobogganing, snowmobiling, and cross-country and downhill skiing. All resorts combine luxurious amenities, well-appointed guest rooms, dining options, and meeting or convention space with top-notch service. Resorts are destinations where guests may choose to remain for weekends or for more extended vacations.
AIRPORT Leisure travelers may use airport hotels the night before taking an early flight for an extended vacation. Business clients prefer airport properties as a central and convenient place for meetings and conventions. Airlines contract with airport properties for accommodations for their crews. Passengers, who may be stranded due to weather and other unforeseen circumstances, also use airport hotels.
HIGHWAY Roadside properties attract transient guests traveling to a final destination. These travelers, who are often families, seek accessible locations, convenient food-and-beverage offerings, and limited recreational facilities, such as pools, game rooms, and vending-machine services. The typical length of stay for guests at a highway property is one night.
DOWNTOWN City properties located in downtown areas cater to business, convention, and leisure travelers. Most of these lodging facilities are in desirable locations near theater, office, shopping, and fine-dining sites. Services range from food-and-beverage, business, meeting, and concierge services.
· Business Services—Business centers or in-room facilities, such as faxes, modems, computers, and printers
* Meeting Services—Audiovisual (A/V) equipment rentals, modems, and special decor
· Concierge Services—Arrangements for transportation, restaurant reservations, event reservations, entertainment tickets, and activities in the area
CONFERENCE CENTERS Conference or convention-center properties cater to guests attending large meetings or trade shows. Many of these accommodations are attached to a conference or civic center. These facilities specialize in handling groups of 500 or more persons. They provide assistance with audiovisual equipment and technical support, a range of meeting-room space, and numerous food-service outlets and recreational facilities.
ETHICS & ISSUES
Water Waste
In the summer of 2000, South Carolina experienced a terrible drought that devastated farmers' crops. However, weeks of sunny days boosted business for local golf courses. One golf course in Charleston spent over $35,000 on irrigation to keep the grass green. Hotels and resorts around the world use a great deal of water to maintain elaborate landscaping that is not always appropriate to the ecology of the locale. Is it ethical for hotels to use water for fountains, swimming pools, and sprinkler systems for golf courses in water conservation areas?
MARKETING m
SEBiES ChUmF^r
Remember to check out this book's Web site for lodging classification information and more great resources at marketingseries.glencoe.com.
Chapter 4 The Hotel Business 81
Chapter 4 The Hotel Business 77
( Glencoe Marketing Series: I II. Hospitality and Tourism I 4. The Hotel Business ! I ©The McGraw-Hill Hospitality and Tourism Markets Compan ies, 2006 ) ( Section )
Chapter 4 The Hotel Business 81
Hotel Operations
Hotel Organization
A
ll lodging accommodations, regardless of size, maintain a delicate balance between generating profit and servicing the public. Both of these functions are critical. A property that makes a great deal of money but provides few comforts of home for its guests will not be a long-term success.
Hotels have many revenue centers, all overseen by a general manager (GM). Similar to the general manager of a restaurant, the GM of a hotel is responsible for both front- and back-of-the-house operations. Front of the house is the area in a lodging facility that guests view, such as the lobby. Back of the house is the area in a lodging facility where support services take place, which guests usually do not view. The hotel operating staff consists of three segments: food-and-beverage (see Chapter 3), front-office, and support staff. (See Figure 4.2 on page 83 for a complete staffing chart.)
The Rooms Division
T
he largest revenue center of a lodging facility is the rooms division. This center would include the front office, reservations, housekeeping, guest or uniformed services, and communications.
The Front Office
F
rom a guest's perspective, the front office is considered the heart and soul of any property. This is the first and last contact area for a guest. As part of the front office, it is critical for front-desk personnel to provide prompt, efficient, and friendly service to every guest. The primary functions of the front-desk staff are to sell rooms, maintain accounts, and provide guest services.
Selling Rooms
Depending on the size of the property, the sales division or the reservations staff sells rooms during the day. In the evening, the front-desk staff assumes this responsibility.
Maintaining Accounts
Many lodging facilities have property management systems (PMS). These automated systems help the front-desk staff to store and access information about guest reservations, special requests, and billing instructions. Sophisticated information technology allows the front desk to provide better service while also reducing costs for the property.
AS YOU READ ...
YOU WILL LEARN
· To identify the front-office positions in the rooms division of a hotel.
· To describe guest services in the hotel industry.
· To identify the support-staff positions in the back of the house of a hotel.
WHY IT'S IMPORTANT The lodging industry provides a variety of entry-level and management positions. Career opportunities are unlimited.
KEY TERMS
· front of the house (lodging) ' back of the house (lodging)
· night auditor
guest service agent (GSA) - guest or uniformed services
· concierge
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, which guests usually do not view
PREDICT
What might be the definition of uniformed services?
Glencoe Marketing Series: Hospitality and Tourism
II. Hospitality and Tourism Markets 4. The Hotel Business
©The McGraw-Hill Companies, 2006
Chapter 4 The Hotel Business 81
THE M Electronic^
CHANNEL
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. Online reservation services also save travelers the hassle of calling and booking overseas rooms in different languages and time zones.
•••Visit an online hotel booking service and look at three different hotel options in the same city. Make a list of the information through marketingseries.glencoe.com .
night auditor the hotel staff member who does the night audit and balances the guests' accounts each evening
guest service agent (GSA) a hotel staff member who performs all of the functions of a desk clerk/agent, concierge, and valet
CONNECT
What work shift would you prefer if you were a front-desk clerk? Why?
Guest Services
Perhaps the most important task of the front-desk staff is providing exemplary guest service. Particularly during check-in, guests contact the front desk with questions, requests, and special needs. Clerks, or agents, and managers need to be familiar with the lodging property itself, the local attractions of the destination, and other services available for guests.
Positions
The front desk is staffed by a front-desk manager who oversees daily operations. Larger properties may also have an assistant front-desk manager to assist with these responsibilities, which include checking reports, reviewing occupancy and ADR, preparing for daily arrivals and departures, and checking staffing and scheduling requirements.
DAY-SHIFT POSITIONS Most properties have an a.m. and p.m. shift for front-desk staff. The day shift is responsible for handling guests during check-out. This includes notifying the housekeeping staff that guests have departed and designating which rooms are vacant. Clerks, or agents, on the day shift also monitor special requests for arriving guests such as VIPs.
EVENING-SHIFT POSITIONS The evening-shift staff is responsible for checking in guests as they arrive.
· Clerks, or agents—Like clerks working the day shift, these staff members answer questions from walk-in guests relating to the sale of rooms.
· Night auditor—The night auditor is the hotel staff member who does the night audit and balances the guests' accounts each evening. Night auditors post all charges, run reports, balance guest accounts, and create a daily report for the front-desk manager. Typically, the night auditor is part of the accounting department, but the position is the only front-of-the-house accounting position.
GUEST SERVICE AGENT Some properties may also employ a guest service agent (GSA), a hotel staff member who performs all of the functions of a desk clerk/agent, concierge, and valet. A GSA greets the guest upon arrival, assigns a room, and escorts the guest to a room.
Reservations
Depending on the size of the property and its possible chain affiliation, guests can make room reservations directly with the property or through a centralized reservation system (CRS). For example, guests may telephone the property's reservation department or make arrangements for special events, such as conventions, through travel agents, meeting planners, or tour operators using a CRS.
82 Unit 2 Hospitality & Tourism Markets
Glencoe Marketing Series: ! II. Hospitality and Tourism I 4. Ths Hotel Business I ©The McGraw-Hill
Hospitality and Tourism Markets Companies, 2006
Figure 4.2
Hotel Staffing
HOSPITALITY ORGANIZATION From resorts to B&Bs, lodging establishments must have staff to perform all the necessary tasks expected by guests. How
many employees might be needed for the front office of a beach resort hotel?
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Chapter 4 The Hotel Business 83
T
1
Chapter 4 The Hotel Business 83
Food & Beverage
Front Office
Support Staff
Chapter 4 The Hotel Business 83
Restaurant
Room
Service
Uniformed Staff
Reservations
Front Desk
Concierge
."i
Door Attendants
Bell Captain & Staff
L Security
Reservations Manager
- FD Manager
· Asst. FD Mgr.
FD Clerk
Guest Service Agent
· PBX Operator Night Auditor
Marketing
Accounting
Human Resources
Sales Marketing
Chapter 4 The Hotel Business 83
Chapter 4 The Hotel Business 83
Housekeeping
Executive Housekeeper
Security
Inspectors Laundry
Room
ants
Attend;
Chapter 4 The Hotel Business 83
