Hotel Management Flashcards
What is a company’s mission statement?
Underlying philosophy that gives meaning and direction to hotel policies and a sense of purpose. Three main groups: guests, management and employees.
Revenue vs. support centre
Revenue centre sells goods and services to guest and generates revenue for the hotel e.g. F&B, FO, Catering
Support centres (cost centres) – housekeeping, accounting, engineering and HR.
Explain the triangle of Business Goals, Strategy and Tactics
- Business Goals: The big picture of your business
- Strategy: A plan to meet the identified goals and is audience and goal focused.
- Tactics: Specific ideas and actions used to meet the goals of a strategy and achieve the objective
Guest cycle:
Reservations -> Arrival/Check-In -> Guest uses the outlets -> Post guest charges -> Night Audit -> Check-Out
Tasks of accounting
- Receiving and paying money
- Monitors the financial activities of the property
- Payment method
- Proactively advise and guide a hotel to increase profitability
- Is not responsible for the budget, S&M is responsible for cost overview
What are the financial activities?
o Paying outstanding invoice o Distribute unpaid statements o Collecting amounts owed o Processing payroll o Accumulating operating data o Financial reports o Making bank deposits o Securing cash loans o Sending a request for the deposit and arranging the final bill (Banqueting sales makes the final bill)
Examples of advise and guidence for a hotel to increase profitability:
o accounts payable – paying incoming bills
o accounts receivable – receiving payments
o payroll – paying the hotel employees
o credit manager – works with groups and events for billing arrangements and approves the people who can by on credit
Sales and marketing functions in a large hotel
- Sales
- Revenue management
- Convention services
- Advertising
- PR
Who fills al the S&M roles in a small hotel?
The GM
HR is responsible for:
o Employment (external recruiting and internal reassignment) o Training o Employee relations (quality assurance) o Benefits o Administration o Labour relations and safety
What is part of HR planning?
o Recruiting o Hiring o Compensation o Training o Evaluation o Benefits
Enineering and maintenance are responsible for:
- Maintaining the property’s structure and grounds, electrical and mechanical equipment
- Swimming pool sanitation, parking lot cleanliness, fountain operations and operation of safety equipment
- Event: if there is a big event requiring a lighting, they are in charge of that
What is Security and Loss Prevention and what are they responsible for?
- They are the law enforcement, fire and EMS () for a hotel
- Guest safety
- Loss prevention
- Security and safety of equipment
- Keys
- Safety procedures – first aid
- Identification procedures
Rooms Division consists of:
- Consists of Front Office, Housekeeping, Concierge, Security and Communications
- Guest relation
Front Office Functions
- Check-Out and History
- NIGHT AUDIT
- Reservations
What does FO do during Check-Out and History
o Calculation house limit
o CC = authorisation
o cash/debit = payment
o Example: 500$ per night, room tax for 2 night -> charge at least $1000 + extra expanses = amount the guest spend on average per room/night on extras
150$/night for extra => 1300/stay+extra = the guest sale at check-out
What is needed for a Night Audit and what do you do?
• PMS is needed
• FO runs audit during the night and the time for that depends on two things
o All the outlets are closed
o All of our guests are checked-in
o 24/7 room service – POS need to be closed to
o All the guests are not checked-in yet – we hypothetically check them in
• Why? – we need to check revenue in all outlets and how are they payed the day before
Reservations:
- Tasks
- Relationship with FO and Revenue Manager
- Guaranteed: arrival and departure dates, contact details, credit card details
- Non-guaranteed: arrival and departure dates, contact details
- Prepayment guaranteed reservation: arrival and departure dates, contact details, full payment
- Advanced deposit guaranteed reservation: arrival and departure dates, contact details, partial payment
- All in relation to the concept of overbooking
Example overbooking (reservations)
• Afternoon shift, we are overbooked by 5 rooms
o We check availability with competitors, and we make a reservation under the hotel name
o Late checked- out and check-in
o Around 6-7pm in situation of overbooked – cancel 3 non-guaranteed reservations, now we have only 2 overbooked rooms, so if they arrive we send them away to the hotel that we booked (we pay for their transportation, accommodation, invite them for a dinner
What does FO consist of?
Front desk + Back office
COMMUNICATIONS OR OPERATOR responsibilities:
- Call accounting system (PMS)
- Guestroom phones
- Pay phones
- Pagers/cell phones/radios in the hotel for staff
- Internet access for guests
- Faxes for guests or staff
- Messages for guests or staff
- Emergency Center
- Voicemail service for guests or staff
- Wake-up service for guests – either automated or personal
Housekeeping responsibilities:
- They clean hotel rooms, meeting rooms, public areas
- Usually more staff than other departments
- Executive housekeepers need to be responsible, show leadership (which can be difficult with people from different nationalities), cleanliness, keeping record
- Keep track of daily reports and tasks (stayover, check-out, pick-up)
- Check the workers, check with maintenance (via online system)
- Housekeeping status report, occupancy report, room status discrepancy
What are uniformed services?
- Bell attendants
- Door attendants
- Valet parking attendants
- Transportation personnel
- Congierges
What does a Property Management System (PMS) do?
- Accept, store and handle guest reservations, history, billing and requests
- Daily reports
- Software packages support reservations management, rooms management and guest account management
Tasks and responsibilities of
Revenue Management
• The right rates for the right time (e.g. room division)
High or low season
• Events in the city
• Occupancy
• Establish the prices for hotel rooms
• Purpose: increase/maximize the profit/revenue
• Rack rate (highest rate) is not always possible due to discounts or special deals with companies or groups
• Hotels can sell rooms to individual travellers at a higher price (groups get discounts and spend less)
• Groups book way in advance and individuals book around 15 days in advance (figure page 134)
• Revenue management program will handle the demand and supply and recommend the number of rooms to sell to groups in advance and to “hold back” for individuals
Tasks and responsibilities of the Congierge
- Tickets, special requests, shopping, advice on and reservations for restaurants, bars or clubs
- Knowledge of hotel and surrounding
Tasks and responsibilities of the bell attendants
- Carry luggage
- Make guest familiar with hotel and surrounding
- Deliver mail or packages
- Pick up laundry/dry cleaning
What is Security/Loss prevention?
- Security guards watching over guest floors, public areas and parking facilities, observe suspicious behaviour and take action if necessary
- Security equipment (video surveillance, smoke detector and fire alarm systems, room security via electronic key cards)
- Safety Procedures (crisis management and trained staff)
- Identification made easy with name tags or photo ID cards
- Security officers
- Equipment
- Safety procedures – first Aid
- Identification procedures
- Increases at entrances and loading docks, garages, unattended bags/cars
How to use SOPs
- Plan SOPs for specific results
- Use an inclusive process, everyone needs to buy in to them
- Monitor performance and provide feedback to everyone
- Create a “culture of continuous improvement”
