Hospitality 1350 Test #3

What are some of the differences between a center-city hotel and a resort hotel?

A center-city hotel is located in the city center, built during the Great Depression to help drive jobs and stimulate the economy. During the 1960s many of these hotels were rebuilt/refurbished and many still operate the same as they did when they were first created. Resort hotels are typically found in destinations that are desirable vacation spots due to the climate, scenery, recreational attractions, or the historical interest. Resort hotels have been around since the Roman Empire, and are not dying out anytime soon. While many that were started America were summer-only operation they have since opened to a year-round business.

Management Company

A company that manages hotels for owners, typically in return for a combination of fees and a share of revenues. A management company may or may not have any of its own funds invested in a hotel that it manages.

Property Management Systems (PMS)

A computerized system that helps hotel managers and other personnel carry out a number of front-of-the-house and back-of-the-house functions. A PMS can support a variety of application software that helps managers in their data gathering and reporting responsibilities.

Housekeeping Department

A department of the rooms division responsible for cleaning the hotel's guestrooms and public areas.

Reservations Department

A department within a hotel's rooms division staffed by skilled telemarketing personnel who take reservations over the phone, answer questions about facilities, quote prices and available dates, and sell to callers who are shopping around.

Catering Department

A department within the food and beverage division of a hotel that is responsible for arranging and planning food and beverage functions for (1) conventions and smaller hotel groups, and (2) local banquets booked by the sales department.

Statement of Income

A financial statement of the results of operations that presents the sales, employees and their property, and the hotel itself.

Balance Sheet

A financial statement that provides information on the financial position of a hotel by showing its assets, liabilities, and equity on a given date.

Hotel Chain

A group of affiliated hotels.

Uniformed Service Department

A hotel department within the rooms division that deals with guests' luggage and transportation and provides concierge services. Also referred to as the guest service department.

Independent Hotel

A hotel owned by an individual or group of investors not connected with any hotel company.

Revenue Management

A hotel pricing system adapted from the airlines that uses a hotel's computer reservation system to track advance bookings and then lower or raise guestroom prices accordingly--on a day-to-day basis--to yield the maximum revenue. Before selling a room in advance, the hotel forecasts the probability of being able to sell the room to other market segments that are willing to pay higher prices.

What is the difference between a hotel revenue center and cost center?

A hotel revenue center generates income for the hotel through the sale and services of products to guests. A cost center is also known as a support center, it does not generate money directly, instead they support (spend money) the proper functioning of revenue centers.

All-Suite Hotel

A hotel that features units made up of two connected hotel rooms that sell for approximately the price of one, at lower prices than traditional hotel suites. One room is furnished as a typical hotel guestroom with a bed, the other with a fold-out sofa and/or table and chairs.

Front Office

A hotel's command post for processing reservations, registering guests, settling guest accounts, and checking guests in and out.

Average Daily Rate (ADR)

A key rooms department operating ratio; rooms revenue divided by the number of rooms sold Also called average room rate.

What are the differences between a lease and a manager contract?

A lease is when an owner would rent out a structure to a hotel company as a fully developed and furnished turnkey operation. While a manager contract typically has the management company owning a part of the hotel they are managing as well as having owners pay them for their services of managing (and typically staffing) the hotel.

Permanent Financing Loan

A long term mortgage loan for a hotel, usually up to twenty-five years. Long-term mortgage loans are obtained from institutions such as insurance companies, pension funds, and banks.

What are some factors a meeting planner must consider when choosing a facility?

A meeting planner must take into account the amount and type of people the meeting is being planned for. The meeting location must be compatible with the meeting attendees. A facility should also have all necessary accommodations such as ADA accessibility, computer and wifi connection, large meeting spaced, and many other factors.

Convention Services Manager (CSM)

A member of a hotel or resort's staff who is responsible for all aspects of a convention.

Segmenting

A method of categorizing hotels by the prices they charge.

Convention and Visitors Bureau (CVB)

A nonprofit service organization that promotes a destination and sometimes provides services for meetings and conventions.

Capture Rate

A percentage of hotel guests who eat meals at the hotel.

Meeting

A planned event in which a group of people gather together to accomplish something.

Fee Structure Provision

A provision in a contract between a hotel owner and a hotel management company that outlines the fees the owner must pay to the management company for managing the property.

Occupancy Percentage

A ratio indicating hotel management's success in selling its main "product"--guestrooms. It is calculated by dividing the number of rooms occupied by the number of rooms available for a given period.

Construction Financing Loan

A short-term loan to be used while a hotel is being built, with repayment to be made in three years or less.

Revenue Per Available Room (REVPAR)

A statistic used by hotel managers to evaluate the performance of the rooms department. It is computed by dividing room revenue by the number of available rooms for the same period. It also can be determined by multiplying the occupancy percentage by the average daily rate for the same period.

Feasibility Study

A study commissioned by developers and prepared by consultants to determine the potential success of a purposed hotel on a purposed site.

What is a feasibility study and what does it cover?

A study that can help investors decide whether the hotel project that is being considered is economically viable. It will help determine the size and scope of the potential guest market for the new hotel. Includes questions such as: What kind of hotel is most likely to succeed in this location? What types of guests is it likely to attract? How much will these guests be willing to pay? etc...

Budget Hotels

A type of limited-service hotel. Budget hotels have low construction and operating costs, allowing them to charge between $45 and $60 per night.

Economy Hotels

A type of limited-service hotel. Economy hotels have the lowest construction and operating costs, allowing them to charge 25 percent less than budget hotels.

Ton

A unit of measuring the total cubic capacity of a cruise ship.

Management Contract

A written agreement between an owner and an operator of a hotel or motor inn by which the owner employs the operator as an agent (employee) to assume full responsibility for operating and managing the property.

Airline-Related Guests

Airplane crew members; airline passengers needing emergency accommodations are also included in this guest category.

What are some characteristics of all-suite hotels? Conference centers? Timeshare properties?

All suite hotels include a furnished room as a typical bedroom and another room that will have a foldout sofa in place of a bed. All suite hotels were built to mainly attract businessmen, although that do much more than that now, businessmen are the primary target. Conference centers are a type of hotel that mainly provides space for conferences. In order for a hotel to be classified as a conference center sixty percent of its total sales must come from conferences, and sixty percent of the meeting space must be devoted to meetings exclusively. Many have AV equipment that many hotels are not equipped with and a catering department. Timeshare properties are condominiums that are sold to multiple people for fractions of what it could for the original property, in exchange for the much lowered price buyers are allowed to visit the property for an extended amount of time per year (typically ranging from one week-one month).

Night Audit

An accounting task usually performed between 11:00pm and 6:00am after all of the hotel's sales outlets are closed. A night audit (a) verifies that guest charges have been accurately posted to guest accounts, and (b) compares the total of all accounts with sales reports of operating departments.

Trade Show

An exhibit of products and services that is usually closed to the public. Also called an exposition.

Meetings Industry

An industry that comprises meetings (small meetings, conventions, trade shows,etc.) meeting planners, meeting sponsors (associations, corporations, etc.), and meeting suppliers (facilitators as well as firms that supply services for meetings--audiovisual firms, exhibit design companies, and so on). Also referred to as the conventions, expositions, meetings, and incentive travel industry (CEMI).

Real Estate Investment Trust (REIT)

An investment instrument, somewhat like a mutual fund, that allows individuals to combine their resources to invest in income producing properties or lend funds to developers or builders.

How can hotel owner who is not a hotelier ensure that they property is managed effectively?

An owner who is not a hotelier can make sure the property is being managed effectively by leasing the property to a management company, who would come in and manage the company for them.

Where are association and corporate meetings typically held?

Association and Corporate meetings are typically held anywhere. There can be meetings at theme parks, event locations, movie theaters, cruise ships, hotels, football stadiums. Basically anywhere that can hold a large amount of people, meetings can be held in.

What types of meetings do associations typically hold?

Associations hold all sorts of meetings. For example some of them are: Trade Groups (AMA), Social groups (AARP), Labor unions (AFL-CO), and Service associations (Jaycees).

What unique characteristics did Carnival introduce to the cruise industry?

Carnival started to provide more activities and entertainment than competitors, renaming their ship "The Fun Ship". The trip shifted from being destination driven to making the ship the destination.

Timeshare Condominiums

Condominiums for which an owner can purchase a portion of time as the condominium--typically one month to one week--for one twelfth or one fiftieth of the condominium's price, and to share the condominium with other owners. Owners have the right to stay at the condominium during their assigned time or trade their slot with another owner.

What types of meetings do corporations typically hold?

Corporations typically hold management meetings, training seminars, sales meetings (regional and national), new product introductions, professional and technical meetings, incentive trips, stockholder meetings, and other corporate meetings.

Soft Costs

Development costs other than land; building; and furniture, fixtures, and equipment (FF&E) costs for a hotel or restaurant project. Soft costs include architectural fees, pre-opening expenses (for advertising and employee training, for example), and financing costs.

Cost Centers

Divisions or department within a hotel that do not directly generate income; they provide support for the hotel's revenue centers. Also known as support centers.

Revenue Centers

Divisions or departments within a hotel that directly generate income through the sale of products or services to guests.

Rentals

Enterprises such as offices or stores that pay rent to a hotel.

Operator-Reimbursable Expenses

Expenses a hotel management company's corporate office incurs in providing services (bulk purchasing services and national advertising campaigns, for example) to its managed properties. Each managed property reimburses the management company for its share of these costs.

Concessions

Facilities that might well be operated by the hotel directly, such as a beauty salon, or fitness club, but are turned over to independent operators. The hotel in turn receives a flat rate, a minimum fee plus a percentage of gross receipts over a specific amount of a percentage of total gross sales.

Technical Assistance Fees

Fees paid by a hotel owner to a management company covering the time and expertise of the company as a consultant in the design and plan of the facilities.

Basic Fees

Fees paid by a hotel owner to a management company for managing the property. In the case of a chain management company, the fees the owner must pay to the management company for managing the company.

Pre-Opening Management Fees

Fees paid by a hotel owner to a management company for work done before the opening of the hotel, including planning, staffing, training, marketing, budgeting, and other activities that the management company must perform before the property is ready to receive guests.

Familiarization (fam) Tours

Free or reduced-rate travel ratios, and other financial statistics that hotel managers can use to keep track of operations and make sure financial goals are being attained.

Airport Hotels

Full-service hotels built near airports

Center-City Hotels

Full-service hotels located in downtown areas.

Convention And Association Groups

Groups of businesspeople attending a convention or association meeting. The number of people attending can run into the thousands.

Regional Getaway Guests

Guests who check into a hotel close to home--with or without children--in order to enjoy a weekend away from daily responsibilities.

In terms of new hotel projects, what are hard costs? Soft costs?

Hard costs are things such as FF&E (furniture, fixtures, and equipment), the land the hotel will be built on, and the building of the hotel itself. The softs costs are the architectural fees, pre-opening expenses (training staff and advertising), and financing costs.

How can hotel guests be categorized?

Hotel guests can be placed into segments. The segments are: Corporate Individuals, Corporate groups, convention and association groups, leisure travelers, long term/relocation guests, airline-related guests, government and military travelers, and regional getaway guests.

Highway Hotels

Hotels built next to a highway. These hotels typically feature large property signs, an entrance where travelers can leave their cars as they check in, and a swimming pool. Parking space is plentiful and the atmosphere is informal.

What are some of the various ways hotels can be owned and operated?

Hotels can be independently owned and operated. Independently owned and leased to an operator. Owned by a single entity or group that has hired a hotel management company to operate the property. Owned and operated by a chain. Owned by an independent investor or group and operated by a chain. Or owned by an individual or group and operated as a franchise of a chain. The franchise holder may be an individual or a management company.

How can hotels be categorized by price?

Hotels can be segmented by price. The different segments are: luxury (Ritz Carlton), full service (Marriott Hotels), upper moderate (Courtyard), and moderate (Fairfield Inn)

Suburban Hotels

Hotels located in suburban areas. Suburban hotels typically belong to a major hotel chain and have 250 to 500 rooms as well as restaurants, bars, and other amenities found at most downtown hotels.

Limited-Service Hotels

Hotels that do not offer the full range of services customarily associated with hotels. For example, they do not have restaurants or bars. Types of limited service hotels include budget and economy hotels.

Mid-Price Hotels

Hotels that offer facilities and services similar to those at first-class/luxury hotels, but at average rates. They have restaurants and bars, and many have meeting space. Average prices may vary.

First Class/ Luxury Hotels

Hotels with high room rates and exceptional service and amenities.

How has the hotel industry changed in recent decades?

In the 1960s the development of new locations fueled the expansion of the US hotel industry. Before that time hotels were just built in city centers and resort areas. In the 1970s hotel chains started to differentiate in order to draw a wider variety of guests and to separate themselves from the competition. Guest pampering started in the 1980s, mouthwash, shampoo, soaps, and other care items were given to the guest at check-in. In the 1990s quality service was what differentiated hotel chains.

Referral Systems

Independent hotels or small hotel chains that do not share common operating systems, decor, purchasing systems, etc., but are linked by (1) a common reservation system, and (2) a common marketing strategy. The reservation system and marketing campaigns are funded by the hotels in the referral system.

Long-Term Stay/ Relocation Guests

Individuals or families relocating to an area who require lodging until permanent housing is found.

Corporate Individuals

Individuals traveling for business purposes.

Why is it important for large associations to select meeting sites your advance?

Large associations select meeting sites in advance to ensure there are enough accommodations for the meeting (ie. hotel rooms and airline seats available).

Seniors Housing

Long-term living facilities for senior citizens.

What are some of the tasks meeting planners should be able to perform?

Meeting planners should be able to: establish a meeting objective, select meeting sites and facilities, negotiate with facilities, budget, handle reservations for housing, food, and beverage issues, and chose transportation options for attendees.

Liabilities

Obligations of a business--largely indebtedness related to the expenses incurred in the process of generating income.

What three provisions are common to almost every management contract?

Operating term, fee structure, and reporting requirement are the three items that almost all management contracts have.

Cruise Director

Oversees a staff responsible for managing a ship's entertainers, children's counselors, and guest activities, including selling and coordinating shore excursions.

How is planning an association meeting different from planning a corporate meeting?

Planning an association meeting requires years of advanced planning while corporate meetings can be planned much closer to the event. Association meetings also require advertising while corporate meetings are mandatory, so they require no advertising.

Card Keys

Plastic cards, resembling credit cards, that are used in place of metal guestroom keys. Card keys require electronic locks.

What is an incentive fee?

Portion of the management fee that is based on the percentage of a negotiated level of profitability.

Franchise

Refers to (1) the authorization given by one company to another to sell its unique product and service, or (2) the name of the business format or product that is being franchised.

Assets

Resources available for use by a business, i.e., anything owned by the business that has monetary value.

Commissions

Retailers located off the hotel site (such as gift shops, car rental agencies, and photographers) that pay a commission to the hotel based on a percentage of their gross sales to guests.

What four major cruise lines were born in the mid-1960s to early 1970s?

Royal Caribbean Cruise Lines (International), Norwegian Caribbean Line (Norwegian Cruise Line), Princess Cruise Lines, and Carnival Cruise Lines.

Seniors housing can consist of what types of units/ facilities?

Seniors-housing can consist of: independent-living units (these are for people who can function independently, and have little to no health problems); congregate communities (rental units with tie-in services like meals, housekeeping, and transportation); assisted-living facilities (facilities with private bedrooms and kitchenettes for seniors who need help with ADLs but don't require continuous help); or continuing-care retirement communities (CCRC) (full service long term care, such as home care and independent-living facilities).

Corporate Groups

Small groups of people traveling for business purposes, usually to attend conferences or meetings.

What are some of the travel and tourism careers associated with the meetings industry?

Some careers in the meeting industry are: event planning, convention sales manager, catering manager, and wedding planner.

What are the advantages and disadvantages of management contracts, from both the owner's and operator's points of view?

Some of the advantages of a management contract are: they buy the services of an established hotel operator with a proven track record and a good reputation. The potential for profit is increased. Another advantage is that an owner can control a large number of properties with a relatively little investment. Some disadvantages are: the owners are still required to carry all/most of the financial burden. And they are still responsible for funding their properties.

Exhibit Designer

Someone who designs a display booth or area to show products or services to prospective buyers.

Meeting Planner

Someone who plans meetings for an association, a corporation, or some other group.

Why do some food and beverage divisions lose money?

Sometimes the food and beverage divisions lose money because of room service. Because restaurant servers can take care of many more people than room service personnel the revenue generated is typically not sufficient to cover the costs.

Short Excursions

Speciality arranged trips, tours, and activities that occur off the ship. They are a significant part of onboard revenue for any cruise line.

Conference Centers

Specialized hotels, usually accessible to major market areas but in less busy locations, that almost exclusively book conferences, executive meetings, and training seminars. Some conference centers provide extensive leisure facilities.

Quality Controls

Standards of operation, quality assurance programs, and other controls that seek to establish and maintain hotel products and services at quality levels established by management.

What are some of the characteristics of suburban hotels? Highway hotels? Airport hotels?

Suburban Hotels are hotels that were built in the suburbs. Businesses moved out of the city after the great depression and hotels followed in suit. These were extremely popular due to the short-term stay they offered for traveling businessmen and people of the like. Parking was able to be expanded due to lower city costs and other amenities were able to be offered that center-city hotels could not give. Suburban hotels are typically smaller, chain affiliated, offer sports and health facilities, and will host many main events. Highway Hotels are located along highway exits. Many are chain affiliated. Most boast a large sign that can be seen from the highway and have large parking lots available for travelers. Many have a low number of employees and provide fewer services. Airport Hotels are hotels that are located near airports. Many are chain affiliated. Many have the largest occupancy rate among hotels due to the increase guest amount during the work week.

What are four types of fees owners pay to operators?

Technical Assistance Fee, Pre-opening management fees, basic fees, and operator-reimbursement expenses and the four types of fees owners pay to operators.

Which division provides the largest source of revenue for most hotels?

The Rooms division provides the largest source of revenue for hotels. Followed by the food and beverage, telecommunications, concessions, rentals, commissions, fitness, and recreation facilities.

What do the "approval" and "termination" provisions of a management contract cover?

The approval provisions in a management contract cover the areas of approval that are necessary. For instance, most contracts require the owners approval of the general manager, sales manager, and controller. The termination provision in a management contract covers the situations in which the owner can cancel the contract with the management company.

Chief Officer

The captain's second in command and deputy. Also called the staff captain on some cruise lines.

What important duties are overseen by the chief housekeeper? The cruise director? The physician?

The chief of housekeeping oversees: the cleaning and general maintenance of all cabins and interior areas on the ship. They control the inventory of beds and cleaning supplies and bath linens, soaps, etc. They also are responsible for laundry and dry cleaning. They also oversee lifeboat drills, wheelchair accessibility, pressing the clothes of the passengers, and turnaround day. The cruise director is in charge of entertainment for the ships voyage. They direct all of the entertainment that the ship has to offer. The physician in responsible for making sure that ill passengers are treated. There is state of the art equipment at their disposal and a nurse to assist with any duties.

Exhibitor

The company or organization sponsoring an exhibit booth.

What were some of the early beginnings of the cruise industry?

The cruise industry started as a way to transport people transatlanticly and grew into something much more. The cruise industry began in the mid nineteenth century.

What are some of the responsibilities of a cruise ship captain? A cruise ship's hotel manager?

The cruise ship captain is responsible for the ship's operation and the safety of all of the passengers on board. It it the job of the captain to see that all policies are being followed as well as national and international laws. The hotel manager's job is to create the vacation experience for the cruise ship passengers. They are responsible for the food and beverage services and housekeeping, they may be incharge of health care and engineering depending on the size of the ship.

Turnaround Day

The day when a cruise ship finishes one cruise and starts another.

Lido Deck

The deck that contains a cruise ship's main swimming pool. It is usually a center for many onboard activities.

Room Service

The department within a food and beverage division that is responsible for delivering food and beverages to guests in their guestrooms. May also be responsible for preparing the food and beverage.

What are some of the duties of a front desk agent?

The duties of a front desk agent are: processing reservations, registering guests, settling guest accounts (cashiering), and checking out guests. They also handle the distribution of guestroom keys and mail, messages, or other information for guests. Lastly they: establish a method of payment for the guestroom--credit cart, debit card, or direct billing, they also inform guests about the room location and special hotel facilities along with answering any questions about the property and surrounding community.

What are the elements of a good hotel security program?

The elements of a good hotel security program are:security officers (people the make regular rounds of the premises and observing for suspicious activity within the hotel), equipment (two way radios, closed-circuit television, and motion sensors), master keys (a key that will allow access to all guestrooms, storerooms, and all offices at all times), safety procedures (well designed plan for evacuation in case of an emergency), and identification procedures (Name tags and photo ID badge).

Flag of Convenience

The flag of the country where a cruise ship is registered and under whose laws it must operate.

Tourist Courts

The forerunners of motels built along highways in the 1920s and 1930s. Typical tourist courts consisted of a simple row of small cabins that often have no private baths.

Franchisor

The franchise company that owns the trademark, products, and/or business format that is being franchised.

Purchasing Department

The hotel department responsible for buying, receiving, storing, and issuing all the products used in the hotel.

Telecommunications Department

The hotel department responsible for providing telephone, internet, and other communications services to hotel guests.

Marketing Division

The hotel division responsible for identifying prospective guests for the hotel, conforming the products and services of the hotel as much as possible to meet the needs of those prospects, and persuading prospects to become guests.

Accounting Division

The hotel division responsible for keeping track of the many business transactions that occur in the hotel and managing the hotel's finances.

Food and Beverage Division

The hotel division responsible for preparing and serving food and beverages within the hotel. Also includes catering and room service.

Human Resources Division

The hotel division responsible for recruiting, hiring, orientating, training, evaluating, motivating, rewarding, disciplining, developing, promoting, and communicating with hotel employees.

Engineering Division

The hotel division responsible for taking care of the hotel's physical plant and controlling costs.

Security Division

The hotel division responsible for the protection of guests and their property and the hotel itself.

How is a typical housekeeping department organized?

The house keeping department is usually organized with the executive housekeeper as the leader, followed by the assistant housekeeper, linen room supervisor, and the laundry and valet manager. Lastly those are followed by: housepersons, room inspectors (room attendants), linen room attendants, and seamsters.

Franchisee

The individual or company granted a franchise.

Hard Costs

The land; building; and furniture, fixtures, and equipment (FF&E) costs that are basic to hotel and restaurant development.

Rooms Division

The largest, and usually most profitable, division in a hotel. It typically consists of for departments: front office, reservations, housekeeping, and uniformed service.

Asset Manager

The owner's representative monitoring the operation of the hotel.

Take-Out

The permanent financing secured for a new hotel.

Captian

The person on a cruise ship who is responsible for its operation and the safety of all those onboard. The captain sees that all company policies and rules, as well as national and international laws, are followed.

Food and Beverage Manager

The person on a cruise ship who is responsible for providing quality food and beverage service to passengers and crew members. Typically reports to the hotel manager.

Chief Housekeeper

The person on a cruise ship who is responsible for the cleaning and general maintenance of all cabins and interior areas on the ship. The chief housekeeper is also responsible for passenger laundry and dry cleaning, as well as cleaning cabin linen and table linen, towels, and the crew's uniforms. Also called the chief steward.

Physician

The person on a cruise ship who is responsible for the medical care of passengers and crew members; he or she typically has a state of the art medical facility in which to work and one or two nurses to assist in the care of the patients.

Hotel Manager

The person on a cruise ship who runs the hotel division. Besides being ultimately responsible for food and beverage services and housekeeping services, the hotel manager may oversee medical care, entertainment, shore excursions, casino operations, the beauty salon, the health spa, gift shops, photography services, and more--in short, everything that helps create the vacation experience that the cruise line offers.

Incentive Fee

The portion of the management fee (paid by the hotel owners to the hotel management company) that is based on a percentage of income before fixed charges (also known as gross operating profit), or on a written percentage of cash flow after debt services.

Operating Expenses Provision

The provision in a hotel management contract that outlines the expenses the management company will pass on to the hotel owner.

Operator Investment Provision

The provision of a hotel management company contract outlining the details of the operator's investment in the property.

Approval Provision

The provision of a hotel management contract specifying which operator decisions require management approval. The mechanism for settling owner/operator disputes is sometimes included in this provision.

Operating Term Provision

The provision of a hotel management contract that defines the length of the initial contract and its renewal options.

Reporting Requirements Provision

The provision of a hotel management contract that stipulates the types of reports the management company must provide to the owner and how often they must be submitted.

What are the purser's responsibilities? The food and beverage manager?

The purser is responsible for being the ships' banker, information officer, human resources director, and complaint handler. The purser tends to act as the right hand man to the hotel manager. They are second in command of the hotels division whenever the hotel manager is off ship. The food and beverage manager is responsible for feeding the passengers and crew members, while representing many different cultures.

What are the marketing division's challenges and responsibilities? The engineering, division's? Accounting division's?

The responsibility of the marketing department is to identify the prospective guests for the hotel, shape the products and services of the hotel as much as possible to meet the needs of those prospects, and to persuade prospects to become guests. The challenges the marketing department faces are: marketing and gaining customers to a new hotel over an established one. Funding is also seen as a challenge for many new hotels. The responsibility of the engineering department is: to take care of the hotel's physical plant and controlling energy costs. The challenges of this department are: hiring the properly trained individuals for each position and funding. The responsibility of the accounting department is: to keep track of the many business transactions that occur in the hotel. The challenges with this department are hiring the properly trained people for the positions needed and communication with other areas of business within the hotel.

What roles do civic and government organizations play in the meeting industry?

The roles that civic and government play in the meetings industry include assisting in location selection, providing meeting planners and salesmen, assisting in accommodations and organizational recreation.

Purser

The second in command within the hotel department and a cruise ship's banker, information officer, human resources director, and complaint handler.

Galley

The shipboard equivalent to a kitchen.

Sitting

The time allotted for serving on complete meal to a group of diners.

What are the various types of trade shows?

The types of trade shows are: Industrial, wholesale and retail, professional or scientific, and public or consumer.

Guest Mix

The variety or mixture of guests who stay at a hotel or patronize a restaurant.

What are some of the industry-wide changes responsible for the the evolution management contracts?

There have been many changes over the years dealing with managing contracts. Typically the management company would come in and get paid for their services, now they will typically own a fraction of the hotel as well as get paid to manage it. Also, there has been an increase in competition among operators and the more active role of owners in managing their investments.

Government and Military Travelers

Travelers in government or the military on a fixed per diem allowance who typically are reimbursed for hotel and other travel expenses.

What are two of the most important types of controls for hotel managers and how are they used?

Two of the most important controls for hotel managers are: financial and quality. Financial controls are financial statements such as the balance sheet and the statement of income that will allow the manager to see how the hotel is doing financially and to see if it is operating at its maximum capacity. Quality controls help to standardize the quality of a manufactured product. This helps managers give guests the best visit possible.

Resort Hotels

Usually located in desirable vacation spots, resort hotels offer fine dining, exceptional service, and many amenities.

Leisure Travelers

Vacationing travelers--often entire families--who typically spend only one night at a hotel unless the hotel is their destination.

In negotiating a management contract, which party prefers a long-term contract and which party prefers a short-term contract? Why?

When negotiating a contract the management company wants a long term agreement while an owner wants a short term agreement. If signing a long term agreement the owner is agreeing to use and pay the management company's services for that amount of time.