Hotel Operations Exam 1

Examples of hotel companies for limited-service

*F&B service is limited to a complimentary breakfast or happy hour. No meeting/banquet rooms. Few amenities. Example: Midscale w/o F&B- Comfort Inn, La Quinta, Holiday Inn Express Economy- Days Inn, Travelodge Budget- Motel 6, Super 8, Econo Lodge

Examples of hotel companies for full-service deluxe

*Offers F&B service one or more restaurants/Room service typically offered/meeting & banquet rooms/guest services/business center/higher staff to guest ratio. Example: Ritz Carlton, Four Seasons, Fairmont

Examples of hotel companies for midscale lodging

*Offers F&B service one or more restaurants/Room service typically offered/meeting & banquet rooms/guest services/business center/higher staff to guest ratio. Examples: Holiday Inn, Best Western, Courtyard, Four Points, Howard Johnson

Examples of hotel companies for full-service upscale

*Offers F&B service one or more restaurants/Room service typically offered/meeting & banquet rooms/guest services/business center/higher staff to guest ratio. Examples: Radisson, Embassy Suites, Clarion, Double Tree

Examples of hotel companies for extended-stay

*Provides facilities for preparing meals in room. Location convenient. May provide exercise facilities/business center/premium guest room amenities Example: Residence Inn, Hilton Garden Inn

Four Cycle Stage

1.) Pre-arrival (Reservations) 2.) Arrival (Front Desk/Uniform Services) 3.) Occupancy (Front Office/PBX/Cashier 4.) Departure (Front Desk/Cashier/Uniformed Services)

The market value of a hotel can be reduced up to ___% by an adverse management contract

25%

What stipulates that an operator of the property is to act fully and completely as an agent of the owner and for the owner?

A management contract

Overbooking reservations

Accepting more reservations than rooms

How hotels target their market: airport hotels, suite hotels, and resort.

Airport Hotels: location near major travel centers Target business travelers and heavily utilized by leisure travelers Suite Hotels: comprise a separate bedroom and living room. Target temporary living quarters of business travels who are relocating or of leisure travelers who are not interested in standard lodging. Resort: planned destination of its guests. Target corporate meetings, conventions, or group meetings.

What are the two hotel rating systems in the United States?

American Automobile Association (AAA) a.k.a Five Diamond rating system. The Mobil Travel Guide a.k.a Five Star rating system.

Wash (down) group reservations

Blocking fewer rooms than requested by the group based upon past group history

Red Square

Boxed date- reservations and walk-ins for a boxed date cannot be accepted under any circumstances. When negotiating a reservation request, if the guest wants to stay through a boxed date, the guest must be informed that it is not possible due to capacity booking

Black X

Closed date- reservations and walk-ins cannot be accepted for closed dates. Arrivals prior to a closed date may stay through the closed date

Accounting Department

Combines staff functions and line functions, or those functions directly responsible for servicing guest. Traditional role is recording financial transactions, preparing and interpreting financial statements, and providing the managers of other departments with timely reports of operating results (line functions) Payroll preparation, accounts receivable, and accounts payable. Deals with various aspects of hotel operations, cost accounting, and cost control throughout the hotel.

Who introduced forecasting and control methods in the hotel?

Conrad Hilton

Cut-Off Date group reservations

Date when the rooms that are blocked return to room inventory

True or False: The Resort in Las Vegas would be considered an extended stay hotel because it offers full services amenities such as deluxe services, multiple food and beverage outlets, room service, valet parking, etc

False

True or False: There are five different fees when purchasing a franchise: Initial fee, reservation fee, advertising fee, monthly fee, and training fee.

False

Food & Beverage Department

Food Production, Food services, room services, Beverage manager, convention & catering, and stewarding

Rooms Division Department

Front Office/Reservations/Communications/PBX

Revenue Centers

Front office/F&B outlets/Room service/Retail stores

Division of Labor (Departmentalization)

Functional Departmentalization: Grouped by skills and work (front desk vs F&B) Product Departmentalization: Grouped by products (banquets vs meetings) Geographic Departmentalization: Grouped by location (restaurants vs snack bars) Customers Departmentalization: Grouped by customers (business vs pleasure)

No-Show reservation

Guest who made a reservation, but did not arrive (did not cancel either) and guaranteed reservations are still charged

What is not part of organizational design? a.) dividing tasks into jobs b.) delegating authority in each department c.) having meetings about each department

Having meetings about each department

Largest Hotel (franchise) company in the world (in terms of number of hotel properties and number of hotel rooms)

Hilton Worldwide (669,697 Rooms) Wyndham Worldwide (7,454 Hotels)

Guaranteed reservation

Hotel holds room for guest, credit card, advance deposit, corporate, guest is billed even if they do not use the room.

Non-Guaranteed reservation

Hotel holds room until 4 pm or 6 pm and not accepted as hotel nears full occupancy

Confirmed reservation

Hotel verifies that a guest has a reservation and can be guaranteed or non-guaranteed

Blue X

Housing bureau (convention reservations that are being made through the Convention and Visitors Bureau) Rooms blocks that have been assigned to a housing bureau to accommodate citywide events

What does job specialization do?

Increases worker production and job efficiency

Centralization

Is the retention of decision-making authority by a high-level manager

Which is NOT true about AAA?

It uses the Star rating system

What type of Advertising technique is most frequently used when franchising?

Joint Advertising

Daily Analysis Report

List number of reservations, arrivals, no-shows, and walk-ins by source and by room rate

Revenue Forecast Report

Multiple projected occupancy by room rates

Examples of hotel companies for luxury

Offers F&B service one or more restaurants/Room service typically offered/meeting & banquet rooms/guest services/business center/higher staff to guest ratio. Marriott, Sheraton Hotel, Hyatt, Hilton, Westin, Omni, Wyndham

No symbol

Open date-reservations or walk-ins may be accepted for all open dates

PBX

Private Branch Exchange: monitoring channel in the house, transfer incoming calls, good to know second languages

Decentralization

Process of distributing authority throughout an organization. In a decentralized organization, an organization member has the right to make a decision without obtaining approval from a higher-level manager

Green Circle

Restricted date- a certain type of accommodation is no longer available for a particular day. There is a rate restriction for that day. Except for group block, the hotel is booked to capacity

Walk reservations

Send a guest with a guaranteed reservation to another hotel and usually pay for room, cab, and phone call

Human Resources Department

Serves NO customers, books no business, and prepares no meals. The director is also expected to be an expert on federal and state labor laws and to advise managers in other departments on these topics. Major challenge is in its interactions with other hotel departments. They recruit, interview, and screen prospective employees, the final hiring decision rests within the department in which the potential employee will be working.

What is a general manager?

Serves as the liaison between the hotel's owner or corporate

True or False: Tourism is the 3rd largest retail industry following automotive and food stores. Also, is the largest service industry

TRUE

Which is one of the lodging industry classifications? Guest and Services Hotel Visits Target Market Qualifications of Faculty and Services

Target Market

True or False: There are two types of management companies.

True

True or false: the chain of command is the authority that can be distributed throughout an organization or be placed with a few select people

True

Non-group Displacement group reservations

Turning away transient guests for lack of rooms due to group business

Block Group reservations

a number of rooms set aside for a group

Out of Order

a savvy front desk agent also checks rooms listed as "out of order" (rooms that have not been rented due to mechanical problems) to see if they are suitable to rent

All of the following services provided by hotels expect: a.) Limited Services b.) AAA c.) extended stay d.) full service

b.) AAA

What is not one of the department structure in a lodging and hotel business? a.) rooms b.) sales c.) marketing d.) F&B

b.) sales

Engineering Department

department responsibilities include preventive maintenance: repairs, replacement, improvement and modification to furniture, fixtures, and equipment

Marketing and Sales Department

generally much smaller than the food and beverage department. Primary responsibility of the sales managers who make up the marketing and sales department is sales, or the selling of the hotel facilities and service to individuals and groups. Sales managers sell rooms, food, and beverages to potential clients through advertising, attendance at association and conference meetings, and direct contact

VIP report

includes the names and requirements of guests arriving on a particular date who will receive special gifts and services

Arrivals Report

includes the number of guests arriving by date and the type of room(s) each has requested

Departures Report

number of guests checking out on a particular date

General Manager

oversees audit, front desk, housekeeping, maintenance, sales, assistant general manager

Span of Control

refers to the number of people who report to one manager or supervisor. A wide span of control results in a flat organization-that is, a large number of employees reporting to one supervisor. A narrow span of control results in a tall organization, in which a small number of employees report to a supervisor, necessitating a larger number of supervisors. NO formula exists for determining the ideal span of control. Task similarity, training and professionalism, task certainty, frequency of interaction, task integration, and physical dispersion

Chain of Command

reporting relationships for each person

Booked group reservations

rooms actually reserved by group members and reservation agents should ask guests if they are associated with a group

Two areas of central concern to the accounting department are:

rooms and F&B

Availability Board

this is used to avoid overbooking

Turnaway Report (regret report)

tracks number of reservations refused because rooms were not available