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Ch. 3 The Lodging Industry

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The Lodging Industry Understanding Lodging 3.1 A Brief History of Lodging in the U.S.: Planes, Trains and Automobiles Lodging industry in the U.S. has always been ... – PowerPoint PPT presentation

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Title: Ch. 3 The Lodging Industry


1
Ch. 3The Lodging Industry
2
Understanding Lodging
  • 3.1

3
A Brief History of Lodging in the U.S. Planes,
Trains and Automobiles
  • Lodging industry in the U.S. has always been
    strongly influenced by changes in transportation.
  • As stagecoach routes were established in the
    mid-1600, coaching inns became popular
  • 1700s Americans started combining lodging with
    food
  • 1794 City Hotel in New York City, the first
    building in the U.S. designed specifically as a
    hotel.
  • From that point on, throughout the 1800s lodging
    properties began to flourish.
  • The Tremont House, the first of the grand hotels,
    was built in Boston in 1828. (First hotel to
    offer private rooms with locking doors)

4
History Continued
  • 1825 invention of the railroad, inns, taverns,
    and foodservice facilities located near railway.
  • Near the turn of the century, Conrad Hilton, who
    was a banker in New Mexico, purchased is first
    hotel.
  • Other famous hotels were build during the early
    part of the twentieth century, including the Ritz
    Carlton in Boston, Plaza in New York City, and
    the Stevens Hotel in Chicago
  • During the Depression in the 1930s, several
    hotel properties closed
  • During World Was II in the 1940s, the lodging
    industry prospered. (Hotels experienced extremely
    high occupancy rates usually at least 90)
  • 1950s cross-country vacations became popular with
    the automobile and freeway system
  • 1958 airlines became popular

5
Lodging Operations Organization
  • Front-of-the-House vs. Back-of-the-House
  • Typical lodging operation can be divided between
    its administrative departments and service
    departments
  • Administrative departments manage the business
    responsibilities such as accounting, human
    resources and training, and marketing and sales.
  • Service departments are responsible for serving
    the guest directly.

6
Administrative Departments
  • General Management (GM) person in charge of
    lodging establishment (other managers report
    directly to the GM)
  • Accounting and Financial Management keeps track
    of overall profits, records sales, and calculates
    costs
  • Human Resources hiring labor and evaluate
    performance (resp. local labor laws)
  • Marketing and Sales make sure their lodging
    facility suite their customers (sales,
    advertising)

7
Service Departments
  • Front Office have to give good first
    impression, good people skills, manage rooms
  • Housekeeping maintaining property, responsible
    for keep guest ready and rooms prepared.
  • Engineering and Facility Maintenance keep
    physical building in good running order and
    maintain the operations mechanical equipment
  • Security protecting guest, employees and
    property, developing and following all emergency
    procedures
  • Food and Beverage one of the most demanding
    arrears

8
Questions
  • Historically, the lodging industry has been
    closely tied to the ________industry?
  • What mode of transportation was invented in the
    early 1800s?
  • During which decade in the U.S. did the lodging
    industry experience the closing of many hotels?
  • List the four arrears of administrative
    departments and what they do?
  • List the five areas of service departments and
    what they do?

9
Organization of the Lodging Industry
  • 3.2

10
Two Types of Travelers
  • Guest fall under one of two categories leisure
    travelers or business travelers
  • Leisure travelers often want to get away from
    it all lodging properties cater to specific
    leisure travelers by offering services of
    activities
  • Business travelers stay at lodging for
    business-related reasons. They represent the
    majority of guests they might need fax
    machines, copies personal computes etc.
  • Most important factor considered when selecting a
    lodging facility is room cleanliness

11
At Your Service Lodging Establishments for All
  • Lodging properties can be classified in many
    ways by the level of service provided, rate
    charged, amenities offered
  • Amenity service or facility within the lodging
    operation that guests may use or enjoy without
    having to leave the hotel
  • Full-service properties cater to travelers in
    search of a wide range of conveniences. (offer
    larger rooms, well-trained staff, plenty of
    amenities)
  • Luxury properties hotels that offer
    top-of-the-line comfort and elegance

12
At Your Service Lodging Establishments for All
  • Economy lodging offers clean, low-priced
    accommodations primarily to traveling
    salespeople, senior citizens,, and families with
    moderate income (sm. staff, simple rooms)
  • Mid-price facilities between full-service and
    economy sectors
  • All-Suite properties fastest growing segment,
    offer apartment style facilities
  • Resorts (spares no expense), feature extensive
    facilities for vacationers who are looking for
    recreational activates and entertainment
  • Bed and Breakfast guest who enjoy quaint, quiet
    accommodations with simple amentias
    (private-owned)
  • Page 159, ex. Of hotels and what service bracket
    they fit into

13
Location, Location, Location
  • Location is one of the most influential factors
    contributing to the success of lodging facility
  • Airport facilities
  • Downtown (primarily for business travelers, tend
    to charge higher rates)
  • Suburban properties (travelers who wanted to
    attend downtown events but didnt want to spend
    the night in the city)
  • Roadside motes (meet the needs of vacation and
    business travelers)
  • Resorts (vacation arrears)

14
Facility Rating Systems
  • Several organizations rate quality of lodging
    establishments (AAA diamonds and Mobil Travel
    Guides rate with stars)
  • AAA most widely recognized
  • One diamond functional accommodations (minimum
    standards)
  • Two Diamonds noticeable enhancements (décor and
    or quality of furnishing)
  • Three Diamonds upgrade in services and comfort,
    with additional amenities
  • Four Diamonds excellent properties offering
    high level of service and a wide variety of
    amenities
  • Five diamonds exceptional establishment,
    providing the highest level of luxury and service

15
Questions
  • Indicate which type of traveler business (B) or
    leisure (L) would find the features listed below
    important.
  • 1. Meeting rooms 2. Programs for children
  • 3. Near shopping areas 4. Location close to
    airport
  • 5. Shuttle bus to theme park 6. Kiddie swimming
    pool
  • 7. Shuttle to convention center 8. Twenty-four
    hr. room service
  • What type of hotel is most likely to provide
    conference and meeting rooms.
  • Florist shop that operates in a hotel's lobby is
    known as a?
  • __________facilities are often constructed far
    from cities and transportation routes.
  • Since hotels primarily relies on business
    travelers, which hotel typically experience low
    occupancy rates on the weekdays?

16
Career Opportunities in the Lodging Industry
  • 3.3

17
Developing a Career in the Lodging Industry
  • Certificates and diploma programs are offered by
    high schools and business.
  • Work experience, associations and professional
    trade organizations offer programs and events
    that can help you further your career.
  • While most lodging establishments perform the
    same basic functions, the number and type of
    employees at each property will depend on
    property size and other factors

18
Administrative
  • GM responsible for overall lodging
    establishment, have a bachelors degree and at
    least 10 years work experience
  • Assistant General Manager helps carry out the
    GMs plans and serves as a liaison between
    management and staff. Reports to GM
  • Resident Manager supervises front office
    operations and reservations and is responsible
    for emergencies twenty-four hours a day when the
    GM is not on duty.
  • Executive Assistant Manager responsible for all
    room rentals.

19
Accounting and Financial Management Back Office
  • Controller manages the accounting department,
    participates in long-term financial planning, and
    provides daily financial reports to management.
    Smaller facilities often share the accounting
    responsibilities among the GM.
  • Management Information Systems (MIS supervisor
    computer specialist responsible for solving
    computer-related problems and making sure
    computer systems are running as efficiently as
    possible.

20
Human resources
  • HR responsible for interviewing, selecting,
    recruiting, training, and evaluating performance
    of the operations staff.
  • Motivating staff
  • Providing pay increases
  • Establishing employment policies
  • Administration of labor laws

21
Marketing and Sales(Sell rooms and facilities by
creating contracts with guest, business and
people involved in the travel industry)
  • Marketing director responsible for generating
    new business, organizing special events and
    conducting market research.
  • Convention manager plans meetings, determines
    rates, and sells the facilitys banquet service.
  • Convention sales manager brings in the business
    by promoting the establishment as a site for
    conferences, seminars, and meetings. (larger
    properties also have positions such as tour and
    travel sales manager and corporate sales manager)

22
Front OfficeFront office is the heart of all
lodging properties. It has four main
responsibilities. 1. check-in 2. reservations
3. information 4. checkout
  • Front desk manager (heading the department) He
    or she prepares budgets, maintains cost-control
    systems, and forecast room sales. A good
    communicator and supervisor, oversees a team of
    people
  • Desk clerk greets and registers guests, and
    performs all check-in functions (including
    blocking rooms, verifying information and
    providing details of room rates and availability)
  • Reservations manager oversees the reservations
    function and managers a number of full-time
    reservations
  • Bell captain managers an number of employees,
    including bellhops, door attendants and valet
    parking
  • Concierge specializes in providing a wide range
    of information services (answer questions, books
    restaurant reservations, make arrangements for
    car rentals, obtains theater tickets and more)
  • Night auditor works the evening shift, posting
    changes not reordered during earlier shifts and
    balancing daily financial transactions

23
Housekeeping(One of the most important
departments, often the largest, works closely
with front office personnel and maintains public
areas)
  • Executive housekeeper oversees the department
    by hiring, training, scheduling, and directing
    staff purchasing and maintaining an inventory of
    cleaning supplies and equipment and setting
    cleaning priorities
  • Room attendants employees who actually clean
    guest rooms

24
Engineering and Facility Maintenance(ensures
that all mechanical systems are safe and in
proper working order)
  • Chief engineer plans and organizes the tasks to
    be carried out by the department (administrative
    duties include budgeting, coordinating and
    supervising repair and maintenance orders, and
    negotiating contracts oversees the maintenance)
  • Often train other employees to conserve energy
    and save on utility costs
  • Provide advice about equipment maintenance and
    environmental control

25
Security(Emphasis is on preventing problems,
protect guests, large establishments, hire
off-duty police officers)
  • Security chief extensive law enforcement
    training, work with the director of human
    resources, goal is to minimize theft
  • Provides on-going training
  • Train security officers
  • Some security officers dress in plain-clothes
    other offices place guards in visible locations
    where they can see everyone who enters and leaves
    the facility.

26
Food and Beverage
  • Food and beverage director supervises the most
    labor-intensive department of a full-service
    lodging operation
  • Manages the formal dining room, coffee shop and
    lounge, manager also directs the hotels banquet,
    catering and room service
  • Executive chef works with a sous chef and other
    chefs to provide quality meals and refreshments
    for hotel's guests

27
Questions
  • The following list, please tell me the job
    function of each lodging position.
  • assistant general manager chief engineer
  • chief engineer night auditor
  • room attendant human resources director
  • convention manager
  • Tell me what an executive housekeeper is in
    charge of?
  • Tell me the four main responsibilities of a front
    office operations.
  • Tell me what a concierge is?

28
Property Management Systems and Room Rates
  • 3.4

29
General Management
  • Property management systems are computer
    software programs that are designed to
    specifically for the lodging industry.
  • PMS computer program eliminates the need to
    perform the same tasks over and over.
  • For a manager a PMS provides fast and accurate
    information and allows for improved control over
    the operation
  • PMS can connect accounting systems, reservations
    and registration databases, housekeeping room
    status records and marketing research

30
Guests Account Management
  • Customer service and satisfaction are the goals
    of every lodging establishment
  • Guest folio record of guest charges and
    payments (chares added to account)
  • Lodging operations now feature electronic
    checkout systems that allow guests to use their
    in-room television remotes to review their
    folios, or slip a bill under the door

31
Rooms Management
  • To lodging property departments
  • Front office operations
  • Housekeeping
  • Room Status
  • Reservations If a room is available it will read
    open, confirmed indicates room has been reserved,
    guaranteed rooms are usually prepaid, repair
    means the room is unavailable
  • Housekeeping occupied, available, stay over, on
    charge (guest have been checked out, but room not
    cleaned), out of order

32
Reservation Management
  • Central reservation system (CRS) guest call
    with toll free , sometimes hooked up with
    airlines
  • Room inventory (total number of rooms that a
    property has to sell)
  • Block rooms room unavailable
  • Rooms forecast order to anticipate room
    inventory levels, managers ask for a forecast
  • No-shows
  • Overbook rooms
  • Under stays guests who leave before their
    anticipated date of departure

33
Yield Management
  • Yield Management allows managers to change room
    rates
  • High Demand raise rates, limit cheaper rooms,
    block out rooms to ensure minimum stay
  • Low Demand lower rates, seek business, promote

34
Setting Room Rates
  • Room rates vary considerably depending on a
    variety of factors, including construction, real
    estate cost, level of luxury, type of bedding and
    time of year
  • Many methods for setting room rates, rule of
    thumb method suggest that room rates should be
    set at 1 for every 1,000 of construction cost
  • Ex. If a new hotel is built at 50,000 per room,
    rat should initially be 50.00

35
Hubbart Formula(Setting Room Rates Formula)
  • Operating expenses which are the costs of
    running the establishment
  • Desired return on investment (ROI) which is the
    money a business hopes to make
  • Other income which is earned in various
    department (food, catering)
  • Projected room sales forecasting
  • (operating expense desired (ROI)) other
    income
  • Projected room sales room rate
  • Ex. Operating expense are 3,000,000 desired
    ROI 2,00,00 additional income 300,00
    projected room sales 100,00 what should the room
    rate be??
  • (3,000,000 2,000,000) - 300,000
  • 100,000 47.00

36
Different Room Rates
  • Complimentary
  • Government rates
  • Airline/agent
  • Day rates
  • Weekly rates
  • Family rates
  • Educational rates
  • Local business rates

37
Questions
  • Use the hubbart formula to set a room rate given
    the following information
  • Projected room sales 100,000
  • .Desired return on investment 3,000,000
  • Operating expenses 4,000,000
  • Other income 600,000
  • Which rate category would most likely apply to
    vacation travelers reserving a hotel room during
    the high season?
  • A guest uses his in-room TV remote to check out.
    This convenient checkout procedure is made
    possible through the lodging property's what?
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