Unit IV. HOTEL ORGANIZATIONS & FUNCTIONAL DEPARTMENTS5+-+Rooms+Division.pdf · Unit IV. HOTEL ORGANIZATIONS & FUNCTIONAL DEPARTMENTS GENERAL MANAGEMENT ROOMS DIVISION FRONT OFFICE

Unit IV. HOTEL ORGANIZATIONS & FUNCTIONAL DEPARTMENTS

GENERAL MANAGEMENT

ROOMS DIVISION

FRONT OFFICE DEPARTMENT

Front Desk

Reservations

Bell Service

Telephone Exchange

Airport Transport

Concierge

Functions of a Hotel

• Provide lodging accommodations

• Revenue centers

• Cost centers

• Serve and enrich society

• Create profit for the owners

Executive Committee

• Makes all the major decisions affecting the hotel

• Made up of key associates who head major departments:– General Manager

– Director of Human Resources

– Director of Food & Beverage

– Director of Rooms Division

– Director of Marketing & Sales

– Director of Engineering

– Director of Accounting

Role of a General Manager

• Provide owners with a reasonable return on investment

• Keep guests and employees happy

• Responsible for performance of hotel and employees

• Accountable for the hotel’s level of profitability

Figure 4-1 Executive Committee

Rooms Division

• Departments:

–Front office

–Reservations

–Housekeeping

–Concierge

–Guest services

–Security

–Communications

Figure 4-3 Guest Cycle

ROOMS DIVISION MANAGER

FRONT OFFICE MANAGER

SECURITY/ LOSS PREVENTION

EXECUTIVE HOUSEKEEPER


FRONTDESKSUPERVISOR

RESERVATIONSSUPERVISOR

BELLCAPTAIN

CHIEFTELEPHONEEXCHANGE

CHIEFAIRPORT/TRANSPORTASSISTANCE

CHIEFCONCIERGE/GUESTRELATIONS

Desk/InfoClerk

ReservationsClerk

Door-man

Bellboy

Tele-PhoneOperator

Airport/TransportRepresentative

ConciergeClerk

BusinessCenterClerk

AM/PMSwing ShiftsNight Audit

Accounting

EXECUTIVE HOUSEKEEPER

ASSISTANT EXECUTIVEHOUSEKEEPER

CONTRACT CLEANING

LAUNDRY MANAGER

FLOORHOUSEKEEPER

LAUNDRY STAFF

HOUSEKEEPERS HOUSEMEN UNIFORM SUPERVISORS

THE FRONT OFFICE DEPARTMENT

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The Rooms Division consist of the following department:

THE FRONT OFFICE DEPARTMENT

1. To sell rooms

2. To maintain balanced guest accounts

3. To offer services and meet guest expectation

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3 MAIN FUNCTION

sales/reservation staff make up room sales until the evening before the guest arrival. At 6:00 pm, when the reservations department closes, all the expected arrivals and available rooms are then handed over the front desk P.M. shift. All reservations after 6:00 pm is handled by the front desk

• Up-selling occurs when the guest service agent/front desk clerk suggestively sells the features of a larger room, a higher floor, or perhaps a better view.

• Down-selling occurs when an agent offers a room with a higher rate first and offers the less expensive next.

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1. To sell rooms

What is Revenue Management?

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15

1. To sell rooms

Revenue management is used to maximize room revenue at the hotel

As a Front Office Agent, how can you

apply revenue management?

In what way hotels apply revenue management?

In what way airlines apply revenue management?

let’s check your knowledge

If the demand for room is high and the supply of

room is low what happens to the room

rates?

If the demand is low and the supply

is high, what happens to the

room rate?

Why?Why?How many months is the peak season

here in Baguio?

Revenue and Yield Management

• Revenue management is used to maximize room revenue at the hotel

– Based on supply (# of available rooms) and demand (# of people needing a room)

DEMAND SUPPLY ROOM RATES

DEMAND SUPPLY ROOM RATES

Also:

> If a guest books and sends in a deposit in advance, guest will enjoy a room rate discount

• Yield management allocates the right type of room to the right guest at the right price

–Examines demand for rooms over a period of a few years and determines the demand for a particular room each night

Types of Room Rates Offered by Hotels1. Rack Rate

The highest room rate charged by the hotel, rate given to a guest that does not fall in any category.

Used a benchmark quotation of a hotel’s room rate.

2. Corporate Rate

Room rates offered to business people staying in the hotel. This category can also be sub-categorize to business people who are frequent quest

3. Commercial Rate

Room rates for business people who represent a company and have infrequent or sporadic patterns of travel. A card is issued, which is validated with each visit. After a specified number of visits, the guest is awarded a free room night.

Types of Room Rates Offered by Hotels

4. Group Rate

Room rates offered to large group of people visiting the hotel for a common reason. This is usually negotiated by the sales dept. with the travelling agency

5. Family Rate

Room rates offered to encourage visits by families with children, are offered during seasonal or promotional times. Ex. Children under a certain age are not charged.

THREE MAIN FUNCTION OF THE FRONT OFFICE

II. To maintain balanced guest accounts

This begins with advance deposits, opening the

guest folio (account), and posting all charges from the various departments.

Most hotels have a property management system (PMS) and point-of-sale (POS) terminals, which are online to the front office.

Property Management

Systems

• Center of information processing

• Relates to front and back office activities

• Examples of applications:– Room management module – keeps the front office and

housekeeping informed about the status of rooms

– Guest accounting module – increases the hotel’s control over guests accounts, makes it easily available anytime.

– Check in services module – program used by front desk clerk during check in. Makes it easier to store guest information.

– Information sharing

– Internet access

How Hotels Count and Measure

• Occupancy Rate Occupancy rate measures the economic health

of the hotel industry. It reflects both supply and demand It analyses the relationship (or ratio) between

the number of rooms sold (demand) and the number of rooms available (supply)

- FORMULA: - Number of rooms sold- Occupancy rate = ___________________________

number of rooms available for sale

How the Number of Rooms Available for Sale is Estimated

YEAR 2005 2006 2007 2008 2009

Rooms available at the start of the year

4,355 4,400 4,500 4,600 4,725

Plus rooms completed

70 110 130 150 95

Total 4,425 4,510 4,630 4,750 4,820

Less rooms removed 25 10 30 25 20

Rooms Available (next year start)

4,400 4,500 4,600 4,725 4,800

How the Number of Rooms Available for Sale is Estimated

YEAR 2005 2006 2007 2008 2009

Rooms available at the start of the year

1,500

Plus rooms completed

50 50 50 50 50

Total

Less rooms removed 20 20 20 20 20

Rooms Available (next year start)

Solving for Occupancy Rate

• Sample Problem:

• Hotel Sofitelia has a total of1,500 sleeping rooms, 90 rooms are under renovation. Last night, April 4, 2011, 600 rooms was occupied by Korean tourists, 200 rooms was occupied by Pfizer Company and 80 rooms was occupied by Foreign delegates. What is the occupancy rate last night?


• Sales Per Occupied Room (Average Daily Rate)

- the quality of business being done is measured by the amount received for each room sold.

- Another way to measure the health of the hotel business

- FORMULA:

- room sales/revenue

- Sales Per Occupied Room = _____________________

number of rooms sold

Solving for Sales Per Occupied Room (ADR)

• Sample Problem

• Hotel California has a total number of room of 2,500. Yesterday, April 4, 2011, the following rooms were occupied:

200 standard room at $80/night

400 de luxe room at $120/night

150 executive suite at $210/night

What is the Sales Per Occupied Room yesterday?


• RevPar (Revenue Per Available Room)

Used to be called average rate per available room

Analyses the relationship between room revenue against number of rooms available for sale.

Usually follows Yield Management (supply and demand)

Some hotels uses RevPar as the basis of manager’s salaries and bonuses.

- FORMULA: - room sales/revenue

- RevPar = _____________________number of rooms available for sale

Solving for RevPar

• Sample Problem

• Hotel California has a total number of room of 2,500.Yesterday, April 4, 2011, the following rooms were occupied:

200 standard room at $80/night

400 de luxe room at $120/night

150 executive suite at $210/night

What is the Revenue Per Available Room (RevPar) yesterday?

Analysis of Hotel Statistics How is business doing? What trends can we analyze from the given data?

Year Occupancy Rate x Ave. Daily Rate = RevPar% $ $

2005 68.7 94.57 64.97

2006 70.1 95.65 67.05

2007 69.6 95.92 66.76

2008 68.9 97.31 67.05

2009 68.1 97.75 66.57

2010 66.8 98.15 65.56

ApproxiamteMean

68.8 95.60 65.77


• Break-Even Point

To break-even is to have profit nor loss

At the break-even point, inflows from revenues exactly match outflow for costs

Break-even point are important to assess because there are no profit until that point is reached.

Each dollar below break-even point is used to pay expenses, each dollar after the break-even point may be considered as profit.

Seatwork• Hotel Sofitelia has a total sleeping rooms of 1,400. 10 rooms is

under construction to be converted into offices, 30 rooms are under maintenance. Yesterday, 500 deluxe rooms are occupied by foreign delegates, 80 executive suites rooms are occupied by Korean tourists, 250 standard rooms are occupied by exchange students on tour. These exchange students are given a group rate of 20% less from the rack rate.

• The following are the room rates:

• Standard room - $ 110

• Deluxe roomm - $ 160

• Executice suite - $ 210

• Compute for: occupancy rate, ADR, RevPar

VARIOUS UNITS AT THE FRONT OFFICE

1. FRONT DESK

Looks after the registration of hotel guests and serves as communication and information center

The hub or nerve center of the hotel

Makes a first impression on the guest and one that the guest relies on throughout his or her stay for information and service


BASIC FUNCTION: Plans, Organizes, directs and controls all areas of Front office operations

SPECIFIC DUTIES:

1. Prepares forecast of room occupancy

2. Prepares budget for front office operations

3. Monitors the performance of Front Office staff and calls their attention for whatever deficiencies noted

4. Personally meets and attends to VIP’s and other important events

5. Attends to guest’s complains, inquiries and requests

FRONT DESK SUPERVISOR

BASI FUNCTION: Oversees Front Desk Operations, particularly the handling of registration of guests.

SPECIFIC DUTIES:

1. Gives instructions to the desk clerk regarding arrangement for bookings, blocking of guestrooms and other front desk activities.

2. Assists the desk clerk in attending to the registration of house guests

3. Checks the daily arrival list and sees to it that the rooms assigned to those on the list are made up and set up as indicated in the instructions of the reservations clerk

4. Attends to the registration and reception of VIP’s and other guests with special booking arrangement

5. Coordinates with the Housekeeping Office for the preparation of check-out rooms for immediate occupancy

FRONT DESK CLERK

BASIC FUNCTIONS: Attends to the registration of guests and provides information assistance.

SPECIFIC DUTIES:

1. Allocates rooms for incoming arrivals, check inns, special request rooms and VIPs; checks whether requirements are prepared prior to arrival

2. Updates data in the room status indicator or room status chart

3. Prepares guest folio of guest who are about to check out

4. Coordinates with the housekeeping unit for the reconciliation of room status, in executing room transfer and preparing special amenities for VIPs

5. Performs the duty of the telephone operator and front office cashier if not available

List provides the facilities to develop custom Room inspection lists for each type of room in your hotel. The check lists are printed with the work order for each room when the maintenance tasks for that room are scheduled. The check list itself can be as brief or as detailed as your situation requires.

RESERVATIONS SUPERVISOR

BASIC FUNCTION: Directs and oversees operations pertaining to room sales and reservations

SPECIFIC DUTIES:

1. Coordinates with superior regarding room rates, discounts, etc.

2. Plans, organizes and implements marketing strategies

3. Gives instructions to reservations clerk regarding booking arrangement

4. Coordinates with the Housekeeping Supervisor and Front Office regarding room status to prevent double bookings

5. Double checks with Front Desk regarding the blocking of rooms with reservations


1. FRONT DESK

Looks after the registration of hotel guests and serves as communication and information center

The hub or nerve center of the hotel

Makes a first impression on the guest and one that the guest relies on throughout his or her stay for information and service

ROOM STATUS INDICATOR

o OD – Occupied and Dirty

o CO – Check Out

o OO - Out of Order

o DND – Do Not Disturb

o VR – Vacant and Ready

o VC – Vacant and Clean

o VD – Vacant and Dirty

o OR – Occupied and Ready

o OC – Occupied and Clean


2. RESERVATIONS SECTION

Handles inquiries and reservations for room bookings

Contact may be by telephone so exception telephone manners and telemarketing skills and required

Generally works from 8am-6pm

RESERVATION CLERK

BASIC FUNCTION: Attends to room sales and reservations

SPECIFIC DUTIES:

1. Responds to inquiries on room rates and bookings

2. Receives, processes and confirm room reservations.

3. Files reservations cards according to arrival dates and makes an Arrival List a day prior to arrival date

4. Goes on sales “blitz” and implements marketing strategies

5. Makes follow up of clients accounts as well as “no show” bookings


3. BELL SERVICE

Also called as the Guest Service

Department and Uniformed Staff

Headed by Guest Services Manager who may also happen to be the bell captain

Responsible in escorting guests during check in and check out

Does errands for the Front Desk

DOORMAN

BASIC FUNCTION: Responsible in escorting guests during check in and check out. Does errands for the Front Desk

SPECIFIC DUTIES:

• Hotel’s unofficial greeters, dressed in impressive uniforms.

• Greet Guests at the front door of the Hotel

• Assist in opening /closing automobile doors, removing luggage from the

trunk.

• Hailing taxis

• Keeping the hotel entrance clear of vehicles.

• Giving guests information about the hotel and the local area in a courteous

and friendly way

BELLMAN/BELLBOY

BASIC FUNCTION: Responsible in escorting guests during check in and check out. Does errands for the Front Desk

SPECIFIC DUTIES:

Explains the services of the hotel and points out the features of the room

A bellhop, also bellboy or bellman, is a hotel porter, who helps patrons with

their luggage while checking in or out. Bellhops often wear a uniform


4. TELEPHONE EXCHANGE

Handles and operates the switchboard or the telephone Communication System.

TELEPHONE OPERATOR

BASIC FUNCTION: Attends to all incoming and outgoing calls in the Telephone Exchange Section

SPECIFIC DUTIES:

1. Answering all incoming in accordance with standard procedures

2. Receives and disseminates messages received by phone

3. Transfer calls to guests after screening their calls

4. Attends to wake up call requests of guests

5. Receives updates of events in the hotel for proper dissemination when an inquiry is recieved

OLD SCHOOLSWITCHBOARD!!!

NEW TELEPHONECOMMUNICATING SYSTEM


5. CONCIERGE/GUEST RELATIONS ASSISTANCE

A uniformed employee of the hotel who has his or her own separate desk in the lobby

Attends to various forms of guest request

CONCIERGE OFFICER

BASIC FUNCTION: Attends to any request for guest assistance especially for VIP

SPECIFIC DUTIES:

1. Coordinates with the front desk regarding arrangement for the arrival of VIPs and special groups with special arrangement

2. Personally welcomes and recieves, especially VIPs

3. Maintains logbook and record of VIP arrivals

4. Attend to guest with special problems and concerns like lost passport, lost ticket, airline booking, tour and travel assistance

5. Assists the guest with a broad range of services such as tickets to the hottest shows in town s, restaurant reservations, attractions, airlines tickets and reconfirmation of flights, handle business affairs


8. AIRPORT / TRANSFER ASSISTANCE

HANDLES THE TRANSPORT OF GUEST TO AND FROM THE AIRPORT OR OTHER TRANSPORT TERMINAL

AIRPORT/TRANSPORT REPRESENTATIVE

BASIC FUNCTION: Transports guests to and from the airport/other terminal; sells hotel services to prospective patrons at the airport.

SPECIFIC DUTIES:

1. Checks availability and conditions of vehicles needed to transport guests

2. Looks after the preventive and corrective maintenance of vehicles

3. Fetches arriving guests, welcomes them and brings them to the hotel

4. Coordinates with tour coordinator


9. BUSINESS CENTER

Handles special services like computer service, fax, email, photocopy, souvenir items, etc.

SEQUENCE OF FRONT OFFICE SERVICE

Recieving/processing and documenting guest’s reservations

Welcoming/greeting the guest, opening the door of his vehicle, unloading the luggages

Attending to guest registration

Settlement of guest bill

Escorting guest to his room, carrying his luggage, explaining room facilities

Updating room status, preparing guest folio

Attending to all service request of guest, extending various forms of assistance like wake up calls, delivery of messages, etc

ReservationsClerk

Doorman/bellboy

Desk Clerk

Front OfficeCashier

Bellboy

Desk Clerk/Night Auditor

ConciergeTelephone OprtrDesk Clerk

SEQUENCE OF FRONT OFFICE SERVICE

Updating guest account, preparing billing statement; settlement of balance

Assisting guest for check out

Bill settlement, giving clearance for check out

Bidding goodbye, thanking guest for patronage

Cont…

Cashier/Night Auditor

Bellboy/Housekeeping

Desk Clerk/Cashier

All staff

Documents

Unit IV. HOTEL ORGANIZATIONS & FUNCTIONAL DEPARTMENTS5+-+Rooms+Division.pdf · Unit IV. HOTEL ORGANIZATIONS & FUNCTIONAL DEPARTMENTS GENERAL MANAGEMENT ROOMS DIVISION FRONT OFFICE