Hotel Organization: Functional Areas or Divisions

1
Hotel Organization Functional Areas or Divisions

• Revenue centers generate income for the hotel
• Cost centers support revenue centers

2
Hotel Revenue Centers

• Rooms
• Food and Beverage
• Telecommunications
• Concessions, rentals, and commissions
• Fitness and recreation facilities

3
Rooms Division Departments

• Front Office
• Reservations
• Housekeeping
• Uniformed Service

4
Personnel

• Rooms manager
• Front desk manager and agents
• Concierge
• Cashiers
• Night auditor
• Bellpersons
• Parking valets
• Reservationists
• Executive housekeeper
• Laundry employees

5
Measuring Rooms Division Performance

• Average Daily Rate (ADR)
• ADR Rooms Revenue / Rooms Occupied
• Occupancy Percentage (OP)
• OP Rooms Occupied / Rooms Available x 100
• Revenue Per Available Room (REVPAR)
• REVPAR OP x ADR

6
Problems in Hotel FB Operations

• Long hours of operation
• Low check averages
• Too many facilities
• High turnover
• Costly entertainment (where applicable)
• Insufficient marketing

7
Hotel Cost Centers

• Marketing
• Engineering
• Accounting
• Human Resources
• Security

8
Americans with Disabilities Act

• Hotels must make themselves accessible to people
  with disabilities (employees as well as guests)
• Proper number of parking spaces for disabled
  people

9
Control Systems

• Owner/management goals
• Operating budgets
• Forecasting systems
• Financial controls
• Quality controls

10
Financial Controls

• Financial statements
• The Uniform System of Accounts for the Lodging
  Industry
• Statement of income, balance sheet
• Assets. liabilities, equity

11
Quality Controls

• Property/performance standards
• Properly selecting and training employees
• Guest feedback

12
Managing Quality Control

• Set standards
• Select employees
• Train employees
• Involve employees
• Evaluate
• Reward achievement