Chapter 5
Rooms Division Operations
Walker: Introduction to Hospitality
Management, 2nd edition
© 2007 Pearson Education, Upper Saddle River,
NJ 07458. All Rights Reserved.
After Reading and Studying This
Chapter, You Should Be Able to:



Outline the duties and responsibilities of key
executives and department heads
Draw an organizational chart of the rooms
division of a hotel and identify the executive
committee members
Describe the main functions of the rooms
division department
Walker: Introduction to Hospitality
Management, 2nd edition
© 2007 Pearson Education, Upper Saddle River,
NJ 07458. All Rights Reserved.
After Reading and Studying This
Chapter, You Should Be Able to
(cont.):




Describe property management systems and
discuss yield management
Calculate occupancy percentages, average daily
rates, and actual percentage of potential rooms
revenue
Outline the importance of the reservations and
guest services functions
List the complexities and challenges of the
concierge, housekeeping, and security/loss
prevention departments
Walker: Introduction to Hospitality
Management, 2nd edition
© 2007 Pearson Education, Upper Saddle River,
NJ 07458. All Rights Reserved.
Functions of a Hotel
Lodging accommodations
 Revenue centers
 Cost centers
 Serve and enrich society
 Profit for the owners

Walker: Introduction to Hospitality
Management, 2nd edition
© 2007 Pearson Education, Upper Saddle River,
NJ 07458. All Rights Reserved.
Role of a General Manager
 Chief
Operating Officer (COO)
 Ensuring highest level of associate
and guest service
 Overseeing and coordinating
operations
 Increasing profitability
Walker: Introduction to Hospitality
Management, 2nd edition
© 2007 Pearson Education, Upper Saddle River,
NJ 07458. All Rights Reserved.
Qualities of Successful Hospitality
Leaders
Leadership
 Attention to detail
 Follow-through
 People skills
 Patience
 Ability to delegate effectively

Walker: Introduction to Hospitality
Management, 2nd edition
© 2007 Pearson Education, Upper Saddle River,
NJ 07458. All Rights Reserved.
Executive Committee
General manager
 Director of human resources
 Director of food and beverage
 Director of rooms division
 Director of marketing and sales
 Director of engineering
 Director of accounting

Walker: Introduction to Hospitality
Management, 2nd edition
© 2007 Pearson Education, Upper Saddle River,
NJ 07458. All Rights Reserved.
Figure 5-1
Executive Committee Chart
Walker: Introduction to Hospitality
Management, 2nd edition
© 2007 Pearson Education, Upper Saddle River,
NJ 07458. All Rights Reserved.
Rooms Division
Front office
 Reservations
 Housekeeping
 Concierge
 Guest services
 Security
 Communications

Walker: Introduction to Hospitality
Management, 2nd edition
© 2007 Pearson Education, Upper Saddle River,
NJ 07458. All Rights Reserved.
Figure 5-2
Rooms Division Organizational Chart
Walker: Introduction to Hospitality
Management, 2nd edition
© 2007 Pearson Education, Upper Saddle River,
NJ 07458. All Rights Reserved.
Front Office Manager
(FOM)
Enhance guest services
 Ensure the desired percentage of each
market segment is achieved
 Make and exceed budget forecasts

Walker: Introduction to Hospitality
Management, 2nd edition
© 2007 Pearson Education, Upper Saddle River,
NJ 07458. All Rights Reserved.
Basic Functions of the
Front Office








Review previous night’s occupancy/ADR
Review arrivals/departures/VIP rooms
Staffing adjustments/scheduling
Look over market mix
Meet with lead GSAs
Sell rooms
Maintain balanced guest accounts
Offer services such as faxes, mail, messages,
etc.
Walker: Introduction to Hospitality
Management, 2nd edition
© 2007 Pearson Education, Upper Saddle River,
NJ 07458. All Rights Reserved.
Figure 5-3
The Guest Cycle
Walker: Introduction to Hospitality
Management, 2nd edition
© 2007 Pearson Education, Upper Saddle River,
NJ 07458. All Rights Reserved.
Night Auditor
Posts charges
 Closes the books on a daily basis
 Balances guest accounts
 Completes daily report

Walker: Introduction to Hospitality
Management, 2nd edition
© 2007 Pearson Education, Upper Saddle River,
NJ 07458. All Rights Reserved.
Night Audit Process in Simple
Terms




Add yesterday’s closing balance of accounts
owed by guests
Less payments received today against
accounts
Plus all charges made today to guests’
account
Equals day’s closing balance of accounts
owed by guest
Walker: Introduction to Hospitality
Management, 2nd edition
© 2007 Pearson Education, Upper Saddle River,
NJ 07458. All Rights Reserved.
Hotel Occupancy Statistics

Occupancy statistics:

Percentage of Occupancy =
Rooms Occupied
Total Rooms Available
Walker: Introduction to Hospitality
Management, 2nd edition
© 2007 Pearson Education, Upper Saddle River,
NJ 07458. All Rights Reserved.
Hotel Occupancy Statistics
(cont.)

Occupancy statistics (cont.):

Double/Multiple Occupancy Percentage =
Total # of Guests – # of Rooms Occupied
# of Double-Occupied Rooms
Walker: Introduction to Hospitality
Management, 2nd edition
© 2007 Pearson Education, Upper Saddle River,
NJ 07458. All Rights Reserved.
Hotel Revenue Statistics

Revenue statistics:

Average Daily Room Rate (ADR) =
Total Rooms Revenue
Total Number of Rooms Sold
Walker: Introduction to Hospitality
Management, 2nd edition
© 2007 Pearson Education, Upper Saddle River,
NJ 07458. All Rights Reserved.
Property Management Systems
(PMS)

Computer-based applications:

Reservations management
 Rooms management
 Guest account management
 General management
Walker: Introduction to Hospitality
Management, 2nd edition
© 2007 Pearson Education, Upper Saddle River,
NJ 07458. All Rights Reserved.
Revenue Management



Increases room revenue by using demandforecasting technique
Based on the economics of supply and
demand
Pricing is based on:
 Trends
of demand
 Type of room to be occupied

Rev Par =
Room Revenue
Number of Rooms Available
Walker: Introduction to Hospitality
Management, 2nd edition
© 2007 Pearson Education, Upper Saddle River,
NJ 07458. All Rights Reserved.
Reservations
Internet
 First area of guest contact
 A sales position
 Telephone skills
 Central Reservations System (CRS)

Walker: Introduction to Hospitality
Management, 2nd edition
© 2007 Pearson Education, Upper Saddle River,
NJ 07458. All Rights Reserved.
Reservation Definitions
Confirmed reservation
 Guaranteed reservation
 Advance deposit/advance payment
 No show
 6 PM release

Walker: Introduction to Hospitality
Management, 2nd edition
© 2007 Pearson Education, Upper Saddle River,
NJ 07458. All Rights Reserved.
Communications or PBX
Public Branch Exchange
 Profit center
 Includes many types of communication:

Faxes
 Messages
 Pagers and radios
 Emergency center

Walker: Introduction to Hospitality
Management, 2nd edition
© 2007 Pearson Education, Upper Saddle River,
NJ 07458. All Rights Reserved.
Guest Services Uniformed Service
Bell captain or guest services manager
 Door attendants:



Hotel’s unofficial greeters
Bell persons:

Escort guests to their rooms
 Transport luggage
Walker: Introduction to Hospitality
Management, 2nd edition
© 2007 Pearson Education, Upper Saddle River,
NJ 07458. All Rights Reserved.
Concierge
Part of guest/uniformed services
 Elevate properties’ marketable value
 Typically in a luxury hotel
 Unique requests
 Knowledge of city
 Ability to speak several languages
preferred

Walker: Introduction to Hospitality
Management, 2nd edition
© 2007 Pearson Education, Upper Saddle River,
NJ 07458. All Rights Reserved.
Housekeeping
Largest department in terms of people
 Executive housekeeper
 Cleanliness is the key to success

Walker: Introduction to Hospitality
Management, 2nd edition
© 2007 Pearson Education, Upper Saddle River,
NJ 07458. All Rights Reserved.
Duties of the Executive
Housekeeper
Leadership of people, equipment, and
supplies
 Cleanliness and servicing the guest rooms
and public areas
 Operating the department according to
financial guidelines
 Keeping records

Walker: Introduction to Hospitality
Management, 2nd edition
© 2007 Pearson Education, Upper Saddle River,
NJ 07458. All Rights Reserved.
Other Duties of Housekeeping
Turndown service
 Hotel laundry
 Laundry and dry cleaning for guests
 General hotel cleaning
 Linen room

Walker: Introduction to Hospitality
Management, 2nd edition
© 2007 Pearson Education, Upper Saddle River,
NJ 07458. All Rights Reserved.
In-House Laundry

Advantages:

24-hour anytime laundry service for
guests
 Smaller par-stock of linen
 Full control over quality of laundered
linen
Walker: Introduction to Hospitality
Management, 2nd edition
© 2007 Pearson Education, Upper Saddle River,
NJ 07458. All Rights Reserved.
Contract Laundry Service

Advantages:

No maintenance costs for equipment
 No labor costs for training/staffing
 Lower overhead costs of energy/water
 Fixed projected expense
Walker: Introduction to Hospitality
Management, 2nd edition
© 2007 Pearson Education, Upper Saddle River,
NJ 07458. All Rights Reserved.
Security and Loss Prevention

Providing guest safety and loss
prevention:

Security officers
 Equipment
 Keys
 Safety procedures
 Identification procedures
 ADA compliance
Walker: Introduction to Hospitality
Management, 2nd edition
© 2007 Pearson Education, Upper Saddle River,
NJ 07458. All Rights Reserved.
Trends





Diversity of workforce
Increase in use of technology
Continued quest for increases in productivity
Increasing use of revenue management to
increase profit by effective pricing of room
inventory
Greening of hotels and guest rooms
Walker: Introduction to Hospitality
Management, 2nd edition
© 2007 Pearson Education, Upper Saddle River,
NJ 07458. All Rights Reserved.
Trends (cont.)
Security
 Diversity of the guest
 Compliance with the ADA
 Hotel companies are trying to persuade
guests to book rooms via the company
website instead of an Internet broker
 Hotels are upgrading in-room technology

Walker: Introduction to Hospitality
Management, 2nd edition
© 2007 Pearson Education, Upper Saddle River,
NJ 07458. All Rights Reserved.
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Chapter 4 Rooms Division