Ch. 1-3 Review Exam 1
Rooms manager
a lot of the same responsibilities as a general manager.
ROP (room occupancy percentage)
# of rooms occupied / # of rooms available
All-Suite Extended Stay
-25% more space in form of lounge and possibly kitchenette
Role of Food and Beverage Management
-Director of Food and Beverage reports to the general manager and is responsible for the efficient and effective operation of the following departments: --Kitchen/catering/banquet --Restaurants/room service/mini-bars --Lounges/bars/stewarding --8am-8pm
Housekeeping management
-Executive Housekeeper duties: --Leadership of people, equipment, and supplies. --Scheduling and evaluation of employees. --Cleanliness and servicing the guest rooms and public areas. --Operating the department according to financial guidelines. --Substantial record keeping: *Scheduling and evaluation of employees *Inventory of guest rooms and furnishings of public areas. *Maintenance work orders. *Inventory of amenities, cleaning supplies, and linens.
Computers in the lodging industry
-First hotel to use a computer was the New York Hilton in 1963. -It used a punch card system.
Statistics for Lodging Industry
-Lodging generated $41 billion in pretax income. -Average room rate in 2013 was $110.35 -41% of people traveled for business -59% of people traveled for leisure
Executive Committee
-group of directors/staff --Rooms Division Director --Food & Beverage Director --Marketing & Sales Director --Human Resources Director --Controller --Chief Engineer -controller is the head accountant -review revenue & expenses to create a budget -major responsibility to communicate up & down authority line
Banquets
-groups of people who eat together at the same time and in one place
Largest hotel companies
-intercontinental hotel group -hilton hotels -marriott international -wyndham hotel group -choice hotels -accor group -starwood hotels & resorts -best western -home inns -Carlson Rezidor Hotel Groups
Largest lodging expense
-labor
Peter Drucker
-(1909-2005) father of the application of management principles. -known for his writing how humans are organized across business, government, and non-profit
PMS (Property Management Systems)
--Center of information processing --Relates to front and back office activities *Examples of applications: -Room management -Guest accounting -Check in services -Information sharing -Energy management systems -Internet access
Marriott's Origins
-9 stool root beer stand, then restaurant then hotel
Freeway Hotel and Motel
-A convenient place to stay, reasonably priced, and with few frills (flaws)
AAA Five Diamond Award
-Inspecting and rating the nation's hotels since 1977. -Less than 2% are 5 Diamond -AAA uses descriptive criteria to evaluate the hotels that it rates annually in the United States, Canada, Mexico, and the Caribbean and only 12 properties received both designations.
Airport
-business, group, and leisure travelers -generally in the 200 to 600 room size and are full-service.
Airports
-business, group, and leisure travelers generally in the 200 to 600 room size & are full service
Sales
-the one thing we all do everyday in hospitality -can be exciting career choice *beer *liquor *wine *retail *food
Guest Cycle
reservation >> room assignment and payment >> guest incurs charges >> rooming the guest/post guest charges >> verification night audit >> more guest charges/checkout confirmation
Occupancy %
rooms occupied/rooms available
Average Daily Rate (ADR)
rooms revenue / number of rooms sold
Cesar Ritzs
-"customer is always right" -teamed up with frances premiere chef in 20th century -inventor of "brigade system" in a kitchen: a chef was in charge of each section of the kitchen
Guest Service Association (GSA) "bell hop"
-Greet guests as they arrive at the hotel, escort them to the front desk, personally allocate the room, and take the guest and luggage
Extended Stay
-guest usually stay 5+ days
Housekeeping duties
-have to clean 15-20 rooms each day
Lodging
-hotels -motels -resorts
Full Service
-offers a range of facilities, service, and amenities
Forecasting Techniques
-rooms available x occupancy % x average daily rate -rooms available x total rooms x 365 days
City Center
-targets business or leisure travelers and offers a variety of accommodations
Concierge
- a separate department. Luxury hotels have them and they will assist you with a wide variety of requests. --Should have knowledge of the city --Many speak several languages --Assists guests with restaurant reservations, directions, airline tickets, shows, and VIP messages and requests. --Clefs d' Or (pronounced clays-dor) is the concierges' organization for professional and ethical standards.
Guest Folios
-considered master bill in hotel and also known as guest account card. -contains all transactions occurred by each resident
Global Distribution System (GDS)
-first used in airline industry -electronic market for airline travel, hotel, car rental, and activities bookings
lodging sales
intangible (cant be touched)
Night Auditor
-A hotel is one of the few businesses that balances its accounts at the end of each business day. --Posts charges. --Starts the audit process around 1 a.m. --Closes the books on a daily basis. --Balances guest accounts. --Completes daily reports using the statistics...(ADR, ROP)
Howard Johnson
-Began franchising his restaurant during depression (1932) -400 restaurants when started franchising hotels (1954) -1000 restaurants & 500 motels (1975) -first person to understand importance of franchising
Frachisee
-Buys the franchise. --granted the rights to use trademarks, operating procedures, and other business procedures. BENEFITS: *Plans & specifications *Professional expertise and training *National advertising *Centralized reservation system *Participation in volume discounts *Listing in franchisor's directory *Low credit card fees DRAWBACKS: *High fees *CRS is only 17-26% of business *Conforming to and maintaining franchisor's standards
Energy Management Systems
-Controlling energy use of: gas, water & electricity -Passive infrared motion sensors and door switches can reduce energy consumption by 30% or more. -ESCO's (Energy Service Companies) -Additional features include: --Room occupancy status reporting --Automatic lighting controls --Minibar access reporting --Smoke detector alarm reporting --Central electronic lock control --Guest control amenities
Revenue Management
-Developed by Smith Travel Research -- tracks supply and demand data for the hotel industry and provides market data. -distributes the right type of room at the right price to maximize revenue per available room. --Its purpose is to increase profitability. -The basis is supply and demand; meaning prices rise when demand is strong and drop when demand is weak.
Kemmons Wilson
-Founded Holiday Inn in 1952 in Memphis, Tennessee and went international in 1960. -Franchising began in 1957 and there were: *1958 - 50 locations *1959 - 100 locations *1964 - 500 locations *1968 - 1000 locations *1972 - 1400 locations -Success was due to being one of the first companies to move into the mid-price lodging segment.
Hotel Shifts
-Hotels use 3 shifts to cover the 24 hour operation of a hotel. --7 a.m. to 3 p.m. --3 p.m. to 11:00 p.m. --11:00 p.m. to 7 a.m. -Evening shift duties include: --Check the log book for special items. --Check on room status --Handle check-ins --Take reservations
Hotel Remodels
-It is difficult for a new property to be profitable for a few years because of higher construction costs and the need to become known and gain market share. -An existing hotel has the cost of remodeling and higher operating costs for energy and maintenance. -These tend to cancel each other out. -Remodels take place about every 7 years (many larger lodging projects are "mixed use"- near a convention center or attraction; or employ retail space or residential use)
Forbes Five Star Award
-Oldest travel (1958) guide with only 60-70 lodging properties receiving the 5 star award. -2012 Mandarin Oriental properties
General Manager
-Provide owners with a reasonable return on investment. -Keep guests and employees happy. --Hoteliers always remember they are hosts! -Responsible for performance of hotel and employees. -Accountable for the hotel's level of profitability. --Leadership --Attention to detail --Follow through --People skills --Patience --Ability to delegate
Convention
-Provides facilities and meets the needs of groups attending and holding conventions. -Generally exceed 500 rooms
Total Quality Management (TQM)
-Quality control through statistical analysis to improve the design and production processes. -It is the constant improvement of quality of products and services, thus decreasing costs, capturing markets, providing jobs, and increasing dividends. -Employees must understand the reason for the transformation that is necessary for survival. -Management and labor partnership. -William Edwwards Deming, father of TQM
The Baldrige Award
-Recognizes U.S. organizations in the business, healthcare, education, and nonprofit sectors for performance excellence. -It is the only formal recognition of performance excellence of both private and public sectors awarded by the President. -Ritz-Carlton (Only 2 time winner)
Franchisor
-Sells a means of doing business BENEFITS-*Increased market share *Up-front fees DRAWBACKS- *Need to be careful in selection of franchisees *Difficulty in maintaining control of standards
Front Office
-The hub, nerve center, or "lightning rod" of the hotel. Another term is the "shooting gallery" of the hotel -Responsibilities: 1) To sell and up-sell rooms. 2) To maintain balanced guest accounts. 3) To offer services such as handling mail, faxes, messages, and local and hotel information.
CAS (Call Accounting Systems)
-Tracks guest room phone charges -Software is used to monitor where calls are made from and which phones on the property. -CAS works in conjunction with PBX (telephone) and PMS -Offers different rates for off peak times. -Services provided: --Wake up calls --Client ID --Guest welcoming --TV --Control of room status --Minibar control --Billing integration
Knowledge worker
-a person whose job involves handling or using information
Catering
-a variety of occasions when people may eat at a variety of times
"moment of truth"
-an expression used to describe a guest and an associate meeting—as when a guest walks into a restaurant --Front of the House --Heart of the House
Guest
-anyone who benefits from someone's work -person who is the recipient of hospitality in the form of entertainment
Mixed use hotel development
-can be apart of major urban or resort development, may include buildings, convention centers, sporting facilities, or shopping malls -maybe used for employ retail space or residential use
Casino Hotels
-coming into the financial main stream -making more money from gaming than rooms
Vacation Ownership
-for a one-time purchase price & payment of a yearly maintenance fee, purchasers own their vacation either in perpetuity (forever basically) or for a predetermined number of years -$14,800 - $18,500 average cost to consumer
Management Contracts
-form a partnership with owners and developers who do not have the ability or desire to operate hotels -Responsible for the hotel industry's rapid boom since the 1970s -Little or no up-front financing or equity involved -Provides operational expertise, marketing, and sales clout, often in the form of a centralized reservation system (CRS) -Allows the hotel company to manage the property for a period of 5, 10, or 20 years -A 2+2 management fee is for a percentage of sales and a percentage of profitability. Management fees are decreasing because of increased competition.
Guaranteed reservations
-given when person making the reservation wishes to ensure that the reservation will be held (leaves card info)
Central Reservation System (CRS)
-houses the electronic database in the central reservation office (CRO)
REIT (Real Estate Investment Trusts)
-is a company that owns, and in most cases, operates income-producing real estate. -own many types of commercial real estate, ranging from office and apartment buildings to warehouses, hospitals, shopping centers, hotels and even timberlands. -Some also engage in financing real estate. -The REIT structure was designed to provide a real estate investment structure similar to the structure mutual funds provide for investment in stocks.
Resort
-leisure and recreation where guest can often be a captive audience. -The biggest challenge is seasonality. -Menus can be on a 14-21 day cycle and buffets are popular.
Confirmed Reservations
-made with sufficient time for a confirmation slip to be returned to the client
Restaurant Business
-makes money faster -biological need of eating -desire for socialization and entertainment
Rack Rate
-official or advertised price of hotel room, discount is usually negotiable
Yield Management
-originated in airline industry where demand also fluctuates
Bed and Breakfast
-owner lives on premises or nearby -clean place and breakfast -25,000 in US
Managed Services
-provide services to airlines, military facilities, schools, health care operations, business and industry --Dual challenge of meeting the needs and wants of both the guests and the clients.
Symbolsim in Hospitality
-rich and romantic heritage as symbol of welcome, friendship, and hospitality. -Pineapples were brought back from the West Indies by early European explorers during the seventeenth century. -From that time on the pineapple became the favored fruit of royalty and the elite. -Today, it is globally recognized as a symbol of hospitality.
Burj Al Arab
-self proclaimed 7 star hotel, one of the largest -Symbol of success on an iconic scale -built in the shape of a sail boat
Heart of the house/Back of the House
-serving someone in the front of the house, who is serving the guest -staff members that supports those who come in direct contact with guest
Referral Associations
-similar benefits to franchises at a lower cost. -shared centralized reservation system & a common image, a logo, or advertising slogan
Franchising
-used to rapidly expand businesses. -Franchising can be done by outlets or territory. -Fees for lodging are generally 3-4% of room revenue. -Major Challenges are: *Maintenance of quality standards. *Avoidance of financial failure of the franchisee.
Total U.S. lodging sales
163 billion (41 billion in pretax income)
Cost of labor and food
46.7 %, most expensive
Average Occupancy Rates
66.6% highest in revenue
Floor to never stay above
8th floor
City Ledger
is the collection of accounts belonging to non-registered guests.