Title: Ch. 3 The Lodging Industry
1Ch. 3The Lodging Industry
2Understanding Lodging
3A 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)
4History 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
5Lodging 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.
6Administrative 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)
7Service 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
8Questions
- 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?
9Organization of the Lodging Industry
10Two 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
11At 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
12At 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
13Location, 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)
14Facility 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
15Questions
- 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?
16Career Opportunities in the Lodging Industry
17Developing 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
18Administrative
- 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.
19Accounting 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.
20Human 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
21Marketing 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)
22Front 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
23Housekeeping(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
24Engineering 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
25Security(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.
26Food 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
27Questions
- 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?
28Property Management Systems and Room Rates
29General 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
30Guests 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
31Rooms 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
32Reservation 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
33Yield 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
34Setting 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
35Hubbart 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
36Different Room Rates
- Complimentary
- Government rates
- Airline/agent
- Day rates
- Weekly rates
- Family rates
- Educational rates
- Local business rates
37Questions
- 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?