Hotel Operations Management

by Hayes, David K.; Ninemeier, Jack D.

• ISBN13: 9780131711495
• ISBN10: 0131711490
• Edition: 2nd
• Format: Paperback
• Copyright: 2005-12-30
• Publisher: Pearson

Summary

Describing in great depth and detail all areas of hotel administration, this accurate book provides an up-to-date and comprehensive examination of the responsibilities of a hotel general manager. It shares with readers the procedures effective managers use to ensure their hotel¿sand their ownultimate success.KEY TOPICSThis unique approach addresses all of the operating departments of a full-service hotelHuman Resources, Controller, The Front Office, Housekeeping, Food and Beverage, Safety and Property Security, Sales and Marketing, Facility Engineering and Maintenancefrom the viewpoint of the General Manager. It also explores franchise agreements and management contracts, purchasing a hotel, and career opportunities.For current and future hotel general managers, and hotel department headsi.e., executive housekeepers, directors of sales, controllers, and front office managers.

Table of Contents

Foreword	xi
Preface	xiii
The Hotel Industry: Overview and Professional Career Opportunities	1	(36)
Lodging Is Part of the Tourism Industry	3	(3)
The Tourism Industry	3	(1)
Lodging (Hotel) Sector	4	(1)
A Brief History of Hotels	5	(1)
Close Look at Lodging Organizations	6	(21)
Typical Lodging Guests	10	(1)
Lodging Industry Characteristics	11	(1)
Lodging Industry Overview	12	(1)
Largest Hotel Affiliations	12	(3)
World's Best Hotels	15	(2)
Hotel Ownership and Management	17	(3)
Hotel Organizational Structures	20	(1)
Small Hotel	20	(1)
Large Hotel	21	(1)
Mega Hotel	21	(5)
Hotel Departments	26	(1)
Line and Staff Departments	26	(1)
Revenue and Cost Centers	26	(1)
Lodging Is a Service Business	27	(1)
Current Issues Confronting Hoteliers	28	(5)
Operating Issues	29	(1)
Marketing Issues	30	(2)
Technological Issues	32	(1)
Economic Issues	33	(1)
Professional Lodging Career Opportunities	33	(2)
Alternative Management Positions	33	(1)
Get Started with Career Planning	33	(2)
Hotel Terminology at Work Glossary	35	(1)
Issues at Work	35	(2)
The Hotel General Manager	37	(23)
Responsibilities	38	(11)
Investor Relations	39	(1)
Brand Affiliation Management	40	(1)
Community Relations	41	(1)
Executive Committee Facilitation	42	(2)
Property Management	44	(1)
Planning	45	(1)
Organizing	46	(1)
Staffing/Directing	47	(1)
Controlling and Evaluating	48	(1)
Skills Development	49	(7)
Formal Education	49	(1)
Two-Year Degree	50	(1)
Four-Year Degree	51	(1)
Advanced Degrees	51	(1)
On-the-Job Training	52	(1)
Professional Development	52	(2)
Business Associations	54	(1)
Trade Associations	54	(1)
Trade Publications	55	(1)
General Manager's Job Descriptions	56	(3)
Hotel Terminology at Work Glossary	59	(1)
Issues at Work	59	(1)
Management, Supervision, and Service Skills for the GM	60	(32)
The GM Sets the Pace	62	(1)
GMs Must Manage	62	(4)
GM Functions	63	(1)
GM Skills	64	(1)
GM Relationships	64	(1)
GMs Manage in Times of Change	65	(1)
Evolution of Traditional Hotel Human Resources Practices	66	(1)
Management Basics	66	(12)
Planning	67	(1)
Decision Making	68	(3)
Organizing	71	(1)
Delegation	72	(1)
Flow of Communication	73	(2)
Motivation	75	(2)
Leadership	77	(1)
Discipline	77	(1)
Team Building Tactics	78	(2)
Employee Selection, Orientation, and Training	80	(3)
The GM and Quality Guest Service	83	(4)
Ingredients in a Quality Service Delivery System	84	(2)
A Goal of Zero Defects	86	(1)
GM Interactions	87	(3)
GM's Monthly ``Diary''	87	(2)
Employee and Guest Relationships	89	(1)
Hotel Terminology at Work Glossary	90	(1)
Issues at Work	91	(1)
Human Resources	92	(32)
The Role of Human Resources	94	(1)
Staffing the Human Resources Department	95	(2)
Legal Aspects of Human Resources	97	(10)
Employee Selection	97	(4)
Employment Relationships	101	(1)
The Law in the Workplace	102	(1)
Sexual Harassment	103	(1)
Family and Medical Leave Act (FMLA)	103	(1)
Compensation	103	(2)
Employee Performance	105	(1)
Unemployment Issues	105	(1)
Employment Records	106	(1)
Human Resources in Action	107	(13)
Recruitment	107	(2)
Selection	109	(1)
Orientation	110	(2)
Training	112	(2)
Performance Evaluation	114	(1)
Compensation (Salaries and Wages)	115	(2)
Other Compensation (Benefits)	117	(1)
Employee Retention	118	(2)
Other Human Resources Activities	120	(2)
Planning for Human Resources	120	(1)
Employee Safety and Health	120	(1)
Workforce and Work Quality Improvement	121	(1)
Hotel Terminology at Work Glossary	122	(1)
Issues at Work	122	(2)
Accounting	124	(40)
The Accounting Function	126	(4)
Generally Accepted Accounting Principles	127	(1)
Uniform System of Accounts for Hotels	128	(2)
Accounting Systems	130	(2)
Centralized Accounting Systems	130	(1)
Decentralized Accounting Systems	131	(1)
Revenue Forecasting	132	(1)
Budgeting	133	(3)
Long-Range Budgets	134	(1)
Annual Budgets	134	(1)
Monthly Budgets	134	(2)
Financial Statements	136	(6)
Income Statement	137	(2)
Balance Sheet	139	(2)
Statement of Cash Flows	141	(1)
Daily Operating Statistics	142	(7)
Manager's Daily Sales Report	142	(2)
Detailed Room Revenue Statistics	144	(3)
Adjustments and Allowances	147	(2)
Internal Controls	149	(11)
Cash	149	(3)
Accounts Receivable	152	(4)
Accounts Payable	156	(1)
Payment of Proper Amounts	156	(1)
Payments Made in a Timely Manner	156	(1)
Payment Records Properly Maintained	157	(1)
Payment Totals Assigned to the Appropriate Department Area	157	(1)
Purchasing and Receiving	158	(1)
Inventories	159	(1)
Payroll	159	(1)
Audits	160	(3)
Internal Audits	161	(1)
External Audits	161	(2)
Hotel Terminology at Work Glossary	163	(1)
Issues at Work	163	(1)
Revenue Management	164	(57)
The Role of the Revenue Manager	166	(19)
Revenue Management	166	(3)
Room Rate Management	169	(3)
Room Rate Economics	172	(6)
Traditional Pricing Strategies	178	(4)
Web-Influenced Pricing Strategies	182	(3)
Revenue Management Essentials	185	(15)
Making Forecasts	185	(2)
Managing Occupancy	187	(3)
Managing ADR	190	(2)
Yield Management	192	(1)
Philosophy	193	(1)
Implementation	194	(1)
Techniques	195	(1)
Measures of Effectiveness	195	(1)
Occupancy Index	196	(1)
ADR Index	197	(1)
RevPAR Index	198	(2)
Distribution Channel Management	200	(19)
Historical Distribution Channels	202	(5)
Current Distribution Channels	207	(1)
Walk-Ins	207	(1)
Telephone	207	(2)
Facsimile (Fax)	209	(1)
E-Mail/Traditional Mail	209	(1)
Global Distribution System (GDS)	210	(1)
Central Reservation System (CRS)	211	(1)
Internet	212	(7)
Hotel Terminology at Work Glossary	219	(1)
Issues at Work	219	(2)
Sales and Marketing	221	(41)
The Role of Sales and Marketing	223	(4)
In the Hotel	225	(1)
In the Community	226	(1)
Segmentation of the Sales and Marketing Department	227	(9)
By Product Sold	228	(1)
By Market	228	(1)
Corporate	229	(1)
Leisure	229	(1)
Long-Term Stay	230	(3)
SMERF and Others	233	(1)
By Source	233	(1)
Drop-Ins	233	(1)
Meeting Planners	234	(1)
Travel Agents	234	(1)
Consortia	235	(1)
Internet	235	(1)
Sales and Marketing Activities	236	(24)
Sales Efforts	236	(1)
The Sales and Marketing Committee	236	(1)
The Sales Cycle	237	(3)
Trace Systems	240	(1)
Sales Leads/Cold Calling	241	(2)
Client Appreciation Activities	243	(1)
Marketing Efforts	243	(1)
Marketing Plan Development	243	(2)
Advertising	245	(1)
Promotions, Publicity, and Public Relations	245	(2)
E-Marketing	247	(1)
Internet Sales and Marketing	247	(1)
Online Reservation Systems	248	(1)
Property Web Sites	249	(2)
E-Mail Systems	251	(1)
Evaluating the Sales and Marketing Effort	252	(1)
The Pace Report	253	(2)
The STAR Report	255	(5)
Hotel Terminology at Work Glossary	260	(1)
Issues at Work	260	(2)
The Front Office	262	(49)
Overview of the Front Office	264	(11)
Responsibilities of the Front Office	266	(1)
The PMS and Its Management	267	(3)
Revenue and Reservations Management	270	(1)
Forecasting Guest Demand for Rooms	270	(1)
Practicing Yield Management	271	(1)
Management of Guest Services	272	(1)
Accounting for Guests	273	(1)
Data Management	273	(2)
Managing Guest Reservations	275	(13)
Guest Request Information	277	(2)
By Reservation Type	279	(1)
Individual Reservations	280	(1)
Group Reservations	280	(1)
By Delivery Method	281	(1)
Global Distribution System	281	(4)
Franchise Toll-Free Numbers	285	(1)
Internet	286	(1)
Telephone	287	(1)
Walk-In	287	(1)
Managing Guest Services	288	(6)
Front Desk: Arrival	289	(1)
Prearrival	289	(1)
Bell Station	290	(1)
Valet	290	(1)
Registration	290	(2)
Concierge	292	(1)
Front Desk: Guest Privacy	292	(1)
Guest Information	292	(1)
Room Information	293	(1)
Front Desk: Stay and Departure	293	(1)
Guest Satisfaction Issues	293	(1)
The Walked Guest	293	(1)
Accounting for Guests	294	(5)
Rooms Management/Assignment	294	(1)
Front-Desk Check In	294	(1)
Self Check In	295	(1)
Bucket Check	296	(1)
Billing the Folio	296	(1)
Night Audit	297	(1)
Check Out	298	(1)
Data Management	299	(10)
Payment Cards	299	(2)
Locking/Security Systems	301	(1)
Telephones	302	(1)
Call Accounting	302	(1)
Wake-Up Calls	303	(1)
Voice Mail	303	(1)
Message on Hold	303	(1)
Point of Sale (POS)	304	(1)
In-Room Services	304	(1)
Movies	305	(1)
Games	306	(1)
In-Room Minibars	306	(1)
Safes	306	(1)
Internet Connections	307	(1)
Back-Office Accounting Systems	307	(2)
Hotel Terminology at Work Glossary	309	(1)
Issues at Work	309	(2)
Housekeeping	311	(31)
The Role of the Housekeeping Department	313	(5)
Public Space	313	(1)
Guest Rooms	314	(3)
Laundry	317	(1)
Staffing the Department	318	(4)
Executive Housekeeper	318	(1)
Room Inspectors	319	(1)
Room Attendants	320	(2)
Additional Housekeeping Staff	322	(1)
Managing Housekeeping	322	(9)
Safety	323	(1)
Equipment and Supplies	323	(1)
Training	324	(2)
Employee Scheduling	326	(2)
Inventory Management	328	(2)
Lost and Found	330	(1)
Facility Care and Cleaning	331	(5)
Public-Space Cleaning	332	(1)
Guest Room Cleaning	332	(1)
Sleeping Area	333	(2)
Bathroom Area	335	(1)
Laundry	336	(4)
Collecting	336	(1)
Sorting/Repairing	337	(1)
Washing	337	(1)
Drying	338	(1)
Finishing/Folding	338	(1)
Storing	339	(1)
Delivering	339	(1)
Hotel Terminology at Work Glossary	340	(1)
Issues at Work	340	(2)
Food and Beverage	342	(40)
Overview of Hotel Food and Beverage Operations	344	(15)
Similarities: Hotel and Restaurant Food Services	345	(1)
Operational Similarities	346	(1)
Personnel Requirement Similarities	347	(3)
Differences: Hotel and Restaurant Food Services	350	(2)
Profitability Differences	352	(2)
Marketing-Related Differences	354	(2)
Other Differences	356	(3)
Room Service Operations	359	(5)
Profitability Concerns	360	(1)
Menu Planning Factors	361	(1)
Operating Issues	362	(1)
Within Guest Room Service	363	(1)
Banquet Operations	364	(14)
Profit Opportunities	366	(1)
Menu Planning	367	(1)
Service Styles	368	(5)
Beverage Functions	373	(1)
Labor and Other Charges	374	(1)
Banquet Room Setup	375	(1)
Banquet Contracts and Billing Policies	375	(3)
Alcoholic Beverage Service in Hotels	378	(2)
Hotel Terminology at Work Glossary	380	(1)
Issues at Work	381	(1)
Facility Engineering and Maintenance	382	(31)
Role of the Engineering and Maintenance Department	384	(5)
Engineering	385	(1)
Maintenance	386	(1)
Design and Renovation	387	(2)
Staffing the Department	389	(2)
Chief Engineer	390	(1)
Maintenance Assistants	390	(1)
Managing Maintenance	391	(10)
Routine Maintenance	391	(1)
Exterior Maintenance	392	(1)
Interior Maintenance	392	(2)
Preventive Maintenance	394	(2)
Public Space	396	(1)
Guest Rooms	396	(2)
Food Service	398	(1)
Laundry	398	(1)
Other Equipment	398	(1)
Emergency Maintenance	399	(1)
Technology and Maintenance	399	(2)
Managing Utilities	401	(8)
Electricity	401	(1)
Lighting	402	(2)
HVAC	404	(1)
Reducing Electricity Consumption	405	(1)
Natural Gas	406	(1)
Water	407	(1)
Solid Waste	407	(2)
Managing ``Green'' Hotels	409	(1)
Maintenance and Other Service Contracts	409	(2)
Hotel Terminology at Work Glossary	411	(1)
Issues at Work	411	(2)
Safety and Property Security	413	(33)
Personal Safety	415	(20)
Legal Liability and Guest/Employee Safety	415	(1)
Staffing for Security	416	(1)
Employee Safety Training	417	(1)
Local Law Enforcement Agencies	417	(1)
Safety Resources	418	(1)
Recodable Locks	418	(1)
Alarm Systems	419	(1)
Surveillance Systems	420	(1)
Emergency Plans	421	(1)
Hotel Emergency and Security Tactics	422	(1)
Disturbances	423	(1)
Medical Emergencies	423	(1)
Guest Notification	424	(2)
Hotel Fires	426	(1)
Bomb Threats	427	(1)
Other Emergencies	428	(1)
Special Safety Issues	429	(1)
Swimming Pools	429	(1)
Spas	430	(1)
Parking Lots	431	(1)
Documenting Safety Efforts	432	(2)
The Occupational Safety and Health Administration (OSHA)	434	(1)
Property Security	435	(9)
Threats to Asset Security	435	(1)
Internal Threats	435	(3)
External Threats	438	(1)
Departmental-Specific Threats to Asset Security	439	(3)
Hotels and Terrorism	442	(2)
Hotel Terminology at Work Glossary	444	(1)
Issues at Work	445	(1)
Franchise Agreements and Management Contracts	446	(35)
The Hotel Franchise Relationship	448	(17)
Hotel Franchising	448	(1)
Origin and Structure	449	(2)
Governmental Regulations Related to Franchises	451	(2)
The Franchise Agreement	453	(1)
Major Elements	453	(2)
Advantages to the Franchisee	455	(1)
Advantages to the Franchisor	456	(1)
Selecting a Franchisor	456	(1)
Basic Considerations	457	(3)
The Franchisor Questionnaire	460	(1)
The Product Improvement Plan (PIP)	460	(3)
Negotiating the Franchise Agreement	463	(2)
The Hotel Management Company Relationship	465	(14)
Management Companies	465	(1)
Origin and Purpose	466	(2)
Hotel Management Company Structures	468	(2)
The Management Operating Agreement	470	(1)
Major Elements	470	(1)
Advantages to the Hotel Owner	471	(1)
Disadvantages to the Hotel Owner	472	(1)
Issues Affecting the GM	473	(1)
Managing the Franchise Relationship	474	(2)
Managing for a Management Company	476	(3)
Hotel Terminology at Work Glossary	479	(1)
Issues at Work	479	(2)
Purchasing a Hotel	481	(29)
Selecting a Property	482	(5)
Buying an Existing Property	484	(1)
Buying Performance	485	(1)
Buying Potential Performance	486	(1)
Buying a Property to Be Built	486	(1)
Securing Hotel Financing	487	(16)
Establishing Property Market Values	490	(2)
Applying for the Loan	492	(1)
Liability for Repayment	493	(1)
Funding Sources	494	(9)
Hotel Start-Up	503	(5)
Selected Preopening Responsibilities of the GM/Owner	504	(3)
Selected Postopening Responsibilities of the GM/Owner	507	(1)
Hotel Terminology at Work Glossary	508	(1)
Issues at Work	508	(2)
Managing in the Global Hotel Industry	510	(23)
Managing in the Global Hotel Industry	512	(4)
The Hotel Industry Is Global	514	(1)
Managing and Living in Another Country	515	(1)
Political Environment	515	(1)
Economic Issues	515	(1)
Cultural Factors	515	(1)
Personal Factors in Expatriate Manager's Success	516	(2)
Other Factors in Expatriate Manager's Success	518	(4)
The Selection Process	519	(1)
Transitional Training Programs	520	(1)
Before-Arrival Training	520	(1)
After-Arrival Training	520	(2)
The Expatriate in the New Culture	522	(1)
Hotel Employment Concerns	522	(1)
Nonwork Factors	522	(1)
Case Study: Advice from an Experienced Expatriate Manager	522	(2)
And Now the International Assignment Begins!	524	(7)
Managing on the Job	524	(4)
Details Make a Difference!	528	(1)
Communication Is Critical	528	(3)
In Conclusion	531	(1)
Hotel Terminology at Work Glossary	532	(1)
Issues at Work	532	(1)
Glossary	533	(24)
Photo Credits	557	(2)
Index	559