Hotel Room Division Operation

10/1/2009

C H A P T E R

Hotel Rooms Division Operation

Functions of a hotel  Provide lodging accommodations

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 Revenue centers  Cost centers  Serve and enrich society  Create profit for the owners Bring a calculator for this chapter

Role of a General Manager  Ensure excellent guest service  Keep employees happy

Qualities of Successful Managers  Leadership  Attention to detail  Follow through

 Oversee operations

 People skills

 Increase profit for owners

 Patience  Delegate effectively

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Executive Committee

Executive Committee

 Makes major decisions affecting the hotel  Made up of key departments heads:       

General Manager Director of Human Resources Director of Food & Beverage Director of Rooms Division Director of Marketing & Sales Director of Engineering Director of Accounting

Let’s start with Rooms Division!

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Rooms Division Organizational Chart

Rooms Division Departments 

Front Office



Reservations



Concierge



Guest services



Security



Communications



Housekeeping

Rooms Division Organizational Chart

The Guest Cycle Pre-arrival

Let’s look at the responsibilities of Front Office

Front Desk / Uniformed service

Cashier

PMS

Night auditor

Front Office

Front Office Front Office Manager

The hub of the hotel

 Enhance guest services by developing to exceed

guest needs

Responsibilities:  To sell and up-sell rooms  To maintain balanced guest accounts  To offer services (handling mail, faxes, messages, local and hotel information)

Guest Service Associate  Greet guests as they arrive at the hotel, escort

them to the front desk, personally allocate the room, and take the guest and luggage to the room

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Night Auditor  Posts charges  Closes the books (daily)

Occupancy Statistics Occupancy % =

Rooms Occupied Total Rooms Available

 Balances guest accounts  Completes daily report (hotel occupancy & revenue statistics)

Revenue Statistics

Lets’ explore “Room rates”

Average Daily Room Rate (ADR) is Total Rooms Revenue Total Number of Rooms Sold

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e.g. Hotel on Oahu

Source: Hospitality Advisors - Hotel Flash Report

Source: Hospitality Advisors - Hotel Flash Report

Game x Occupied Rooms

Available Rooms

Occupancy %

ADR $

Revenue

13,950

18,476

75.5%

$62

$864,900

=

1255

1,530

82%

$188.94

$237,119

7,398

9,734

76%

$87

$643,626

12857

18,476

69.6%

$76

$977,132

Property Management Systems (PMS)

More practice

 Center of “information” processing Occupied Rooms

Available Rooms

Occupancy %

ADR $

Revenue

200

300

66.6%

$62

$12,400

750

1,000

75%

$200

$150,000

400

500

80%

$80

$32,000

450

500

90%

$75

$33,750

 Relates to front and back office activities (improve guest service)

 Examples of applications:  Room management (front office & housekeeping)  Guest accounting (report)  Check in services (self check-in & out)  Information sharing (among modules)  Internet access (high speed)

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Provides the tools a hotel staff needs for doing their day-to-day jobs • handling reservations • checking guests in and out • assigning rooms and managing room inventory • accommodating in-house guest needs • handling accounting and billing http://www.micros-fidelio.co.uk/products/opera/pms/

Revenue & Yield Management Revenue management is used to maximize room revenue at the hotel 

Based on supply and demand

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

Rev Par =

Room Revenue Number of Rooms Available

Source: Hospitality Advisors - Hotel Flash Report

Source: Hospitality Advisors - Hotel Flash Report

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RevPar

Reservation Department

Occupied Rooms

Available Rooms

Occupancy %

ADR $

Revenue

RevPar

200

300

66.6%

$62

$12,400

$41.3

750

1,000

75%

$200

$150,000

$150

400

500

80%

$80

$32,000

$64

450

500

90%

$75

$33,750

$67.5

 Headed by the reservations manager  Aim to exceed guest expectations when they

make reservations

What information does the hotel need to take a reservation?

Reservation Record

Reservartion

 Guest name & address

 Expected arrival

 Telephone number

 Number of nights

 Group/company name

 Expected departure

 Person making reservation

 Room rate

 Number in party

 Reservation type

making the reservation wishes to ensure that the reservation will be held (hold by credit card / deposit, billed even

 Special requirements

 Guarantee method

if no-show)

Where do Reservations come from?  Internet  First area of guest contact

 Confirmed reservations are made with sufficient time

for a confirmation slip to be returned to the client (guest has a reservation)

• Guaranteed reservations are given when the person

Communications or PBX  Management of in-house, guest

communications, and emergency center

 Sales person  Telephone skills  Central Reservations System (CRS)

 Profit center 

Hotels generally add a 50% charge to all long-distance calls placed from guest rooms

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Guest / Uniformed Service  Headed by a guest services manager

Include:  Door attendants (Hotel’s unofficial greeters) 

Bell persons (Escort guests to their rooms, Transport luggage



Concierge

A Typical day

Debbie Murakami Outrigger Waikiki, Guest Service Manager

7:30-8:00am  Stop by the Bell Desk 

see what’s happening with the bell service

 Stop by the Guest Services desk. 

read the logbook, Daily Revenue report, memos/mail.

 Go to office 

review reports, memos and mail, check & respond email

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8:30-10:30 a.m. - Guest Services desk  Prepare for the day  Review entries from the night before, arrivals for the day.

 Talk to returned guests  Trouble shooting  

 Handle guests requests  e.g. get shuttles/ rental cars;  mainland travel agents calling to order amenities for their inhouse clients  early arriving guests trying to check in.



guests complaints Solve problems If a vendor is not able to come through for a guest, go off property to help (e.g. pick up that birthday cake, duplicate keys or drop off letter)

 Administration 

Write newsletters, work on projects, attend staff meetings, employee performance appraisals, payroll and schedules.

Most Interesting requests:  



wrap & mail a huge wooden tiki prep a honeymooner’s room with candles, champagne & rose petals Arrange a male flamenco dancer to perform for a guest’s birthday

Concierge  Elevates property’s marketable value  Typically in a luxury hotel  Handles guest needs  Should have knowledge of the city  Many speak several languages

 Spend time with employee  Ends at 5-5:15 p.m.

Housekeeping  Largest department (# people)  Executive keeper’s duties 

Leadership (people, equipment, supplies)



Cleanliness & servicing (guest rooms, public areas)



 Assists guests with restaurant reservations, directions,

tickets to shows, etc.

Operating the department according to financial guidelines



Keeping records

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In-House Laundry Advantages: Before

After

 24-hour service  Smaller stock of linen

Average: • 14- 19 rooms per housekeeper • 20-30 minutes per room

 Control over quality of laundered linen

Contract Laundry Service

Security & Loss Prevention Providing guest safety & loss prevention:

Advantages:  No maintenance costs (for equipment)

Includes:

 No labor costs (training/staffing)



 Lower overhead costs (energy/water)

 

 Fixed projected expense



Security officers Equipment (i.e., smoke alarms, key cards, etc.) Safety procedures Identification procedures

Example: Kris Lee

Daily operations 

Halekulani Hotel Security staff

key card control, access and exit from the property

Medium range concerns  

Advanced planning for VIP arrivals, Functions involving high levels of activity (parking, exhibits, deliveries, etc.).

Kris’s concept of security is “If you can’t see it, you can’t protect it.” That’s why security staff are constantly on the move, covering areas inaccessible to camera surveillance, or where presence is believed to be important to guests.

Long range procedures 

financial investments, budgeting for capital investment (refurbishing rooms, etc.).

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The Guest Cycle Pre-arrival Front Desk / Uniformed service

Cashier

PMS

Night auditor

Recap

Trends  Diversity of workforce

 Security

 Increase in use of technology

 Diversity of the guest

Front Office, Reservations, Concierge,

 Continued quest for increases in

 Compliance of the ADA

Guest services, Security, Communications,

 Use of websites

Housekeeping

productivity  Increasing use of revenue

 1. Which departments are under Rooms Division?

 In-room technology

management  Greening of hotels / guest rooms

* Understand the function & importance of each department

2. What role does the Front Desk play? a. Inventory Control   

i. Assign rooms ii. Market rooms iii. Upsell rooms

3. Do you know how to calculate the following?   

Occupancy rate ADR RevPar

b. Yield Management    

i. Upselling ii. Reservations iii. Sales iv. Setting rate

How are these hotel statistics related?

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Sustainable initiatives  Recycle  Reusable bags  Hybrid car  Conserve energy  Buy Local, In-Season and Organic

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