Hotel management and operations 5th edition pdf


This newly updated edition is a compilation of readings, divided into nine sections, each examining a specific hotel department or activity. Each topic is. Hotel Management And Operations 5th Edition pdf, txt, kindle, zip, word, and rar. . download hotel operations management (3rd edition) pdf. School of Hospitality Business Management. Washington Hotel management and operations / edited by Denney G. Rutherford, Ivar Haglund, and. Michael J. O 'Fallon. — 4th ed. p. cm. Includes bibliographical references and index. ISBN .

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Hotel Management And Operations 5th Edition Pdf

Locate the best Hotel Management And Operations Pdf for your needs. Read Online Now hotel management and operations 5th edition Ebook PDF at our. Download, Free Hotel Management And Operations 5th Edition Download Pdf, Free Pdf. Hotel Management And Operations 5th Edition Download. Hotel Management and Operations, Fifth Edition provides a practical, Hotel Management and Operations (Updated) 5th Edition by Michael J. successful time and life management hyrum w smith, what management is joan magretta pdf .

While there are many outstanding textbooks in the hotel management field that dealt with significant portions of operations, particularly housekeeping, front office, and food and beverage, there are very few that try to treat, in a balanced and indepth way, each department in the hotel. One frustration was that some texts that dealt with these departments spent an inordinate amount of time focused on one aspect of the hotel operationsusually either front of the house, food and beverage or marketing. Other departments, for better or worse, were treated as minor players. Consequently, students and readers of such texts were given only a cursory introduction to the intricacies of these minor departments, their management, their people, and their interactive functions in the overall hotel organization. Another frustration he encountered was using then currently available material to pro- mote the idea of critical thinking among students of hotel administration.

Like economist Milton Friedman, we reject that statement. If theory doesnt work in practice, it is lousy theory. What professors need to guide students in understanding is that theory, in the word of Friedman explains, predicts, or controls, and does this in different ways given different variables in different organizations.

This is another issue or frustration that subsequent editions have been designed to further address. We wanted to make sure the original idea behind this book did not get lost. By helping the reader gain an appreciation of what a variety of observers, thinkers, researchers, and commentators think about a topic, in this case, a hotel department, a student or hotel professional can feel better prepared to find ways to apply theory in a practical setting or situation.

In the final analysis, it is up to you to make the best use of HMO IV, because like we state above, none of us knows it all. Good luck, it is our pleasure to do this work for you. Enz, Louis G. Fried, Gil B.

Honeycutt Jr. Magnini, Ph. Rappole, University of Houston, Conrad N. Hilton College Louis B. Well, it hasnt. The challenges of continual improvementfinding challenging and interesting material, presenting it in interesting ways, and trying to choose material that will transcend unanticipated eventsget harder, not easier.

While making the book was a team effort involving a wide range of professionals, all of its flaws, and there probably are more than a few, are solely my responsibility. First of all, the authors of the various pieces included here who knowingly or unknowingly have contributed their thoughts, research, ideas, opinions, and expertise to this exercise in critical thinking about hotel departmental operations deserve recognition.

Without the rich mixture of interest and talent extant in the hospitality profession and its educational establishment today, this collection of readings would not have been possible. It is my great good fortune that my friends, colleagues, and former students could devote the time they did to contribute to this project.

My badgering, cajoling, begging, and bribing aside, I think were all still friends. I want to particularly salute those who crafted custom pieces for this edition and those professionals who contributed Day in the Life and As I See It pieces.

They have made this edition a richer and more userfriendly book. They also add a view of the real world that has been missing. The support and encouragement of my colleagues at Washington State University was critical. Terry Umbreit, Director of the School of Hospitality Business Management, and a whole bunch of students all contributed to the success of this project with advice, counsel, and suggestions. My good friend, colleague, and production assistant, Lillian Sugahara Jesse, helped me tremendously.

Her magic with the computer literally saved this project by translating many files created in Adobe PDF or PageMaker for xvii xviii Acknowledgments Macintosh to something I could edit in Word. Lillian, you are the greatest. Melissa Oliver, my editor at Wiley, provided needed support regarding material previously published by Wiley, and her willingness to discuss some of my off-the-wall ideas have truly made this a better project.

Thanks, Melissa. My wife and best friend, Sandy Sweeney, continues to provide the encouragement, support, and understanding she always does on big writing projects. Her understanding is particularly important when I disappear to work on the book when we could be doing other, more fun things. As with past editions, she does understand the rhythms of an authors life and endures losing me to the book with style and grace.

The last two times I did this, we were movingand surpriseit is happening again. I retired from Washington State University after 26 years in May We are in the process of building our retirement home in Port Townsend, Washington, and will be moving in July , shortly after the book is due at the publisher. Building a house long distance has its own challenges, and with the book, we have had to rely on Sandy for a lot of decisions.

I love you, Sandy. I also want to acknowledge the capable assistance of my colleague and former student, Michael OFallon. He is the author of the instructors manual. Michael will co-author this and the next edition, after which the project will be all his. Denney G. It should be noted that the word modern can be loaded with the potential of much misunderstanding. Hotels are changing and will continue to change. As a result, the techniques of management of modern hotels must adapt to changing circumstances.

Subsequent sections of this book are designed to help the student and practitioner discover information, methods, and techniques for dealing with these changing circumstances. People and industry have moved from the so-called rust belt to the sun belt.

The hotel business has been active in reborn and reconstructed central cities. The explosion of technology and information-based companies has concentrated human endeavor in technological corridors in California, Massachusetts, Washington, Texas, and North Carolina, to name a few such places.

Walker, Introduction to Hospitality Management, 5th Edition | Pearson

It can be safely said that where jobs are and major concentrations of economic activity occur, hotels will follow. Among other current and ongoing influencers of hotel design, construction, marketing, and operation are the following. Note: This list is neither exhaustive nor exclusive. Demographics play a major role and will continue to be influential in the foreseeable future. These facts will present new challenges and opportunities to all business managers.

Technologyin the form of computers, communication, personal devices, and laborsaving mechanical equipmenthas had and will have a major effect on the way in which hotels are managed and operated.

The speed with which information is accumulated, stored, manipulated, and transferred is such that today most travelers expect that the hotel rooms they rent will allow them to be as productive as they are in the office or at home.

Increasingly, with portable computing, personal data assistants PDAs , wireless communication, and virtually everything somehow connected to the Internet, hotels must provide services and access that allow guests seamless transition from the business, travel, or home environment to that of the hotel. Increasingly, entertainment must be fused with communication and productive processes.

The concept of market segmentation, or ever-increasingly finely tuned market definitions, will dictate hotel structures and organizations, and management tactics designed to address those market segments have become even more important to the management of hospitality service businesses.

With the increased power in the information and data manipulation realm, hotels have available to them everexpanding databases about guests and are creating new products to attract those markets. One of the effects of the aging demographic is the emergence of vacation re- sortsa modern incarnation of the timeshare properties of several decades ago.

Because these are being developed and operated by name hotel companies and are marketed to the affluent, healthy, well-educated population segment, resort managers have had to absorb new managerial realities. The well-documented change in the complexion of the national economy from one that emphasizes goods and, to a lesser extent, natural resources to one that emphasizes services has kindled new ideas about the way in which we manage the design and delivery of these services.

Hotels, restaurants, and travel services are now seen as unique entities that dictate special kinds of managerial techniques and strategies. Changes in peoples travel patterns have altered the way we manage our hotel properties.

Deregulation of the airlines has driven a change in the way millions of people travel each year, given the huband-spoke design of airline services.

Many hotel companies are now locating major hotel properties adjacent to hub air transport facilities, taking advantage of the fact that business travelers may not need to travel to a central business district CBD to accomplish their purpose in a given area.

Meetings and conferences can now be scheduled within a five-minute limousine ride from the air terminal, and the business traveler can be headed for his or her next destination before the day is over without having to stay overnight in a CBD hotel. New patterns of investment in hotel facilities have emerged in the last two decades, and more attention is now paid to achieving optimum return on investment.

Be- Section 1. Managers now must design tactics and strategies to achieve heretofore unanticipated financial goals. The same trend has also altered the complexion of management and organization of the modern hotel. This is especially true of publicly owned hotel firms, where Wall Street stock analysts heavily influence stock prices through expectations of quarterly revenues and profits.

This puts pressure on hotel companies and their operations managers to perform, on a quarterly basis, in a way contrary to many managers instincts. Most of the foregoing issues and influences still operate to a greater or lesser extent on the organizational structures and strategies of the modern hotel. Since the last edition of this book, however, other phenomena of an economic, cultural, and social nature have come to the fore, complicating our view of hotel management.

This furthers the argument that the hotel industry is a part of the greater economy and at the mercy of elements often completely out of its control.

The cyclical nature of the U. In early , for instance, employment growth was stagnant; corporate profits were low; the expansion of the gross national product GNP was only a marginal percentage above previous years; and travel in most segments was down due to corporate restructuring, downsizing, or reorganizing. Vast layoffs in the hundreds of thousands had been announced every month.

While fuel prices continued to be relatively stable, consumer spending patterns and high employment growth had not materialized, particularly in light of corporate layoffs and the ongoing nervousness of consumers about whether or not their financial wherewithal was safe.

Now consider late , when the third edition of this book was being written. Unemployment was at an all-time low; the Dow Jones Industrial Average was between 10, and 11,; hotel occupancies had stabilized nationally in excess of 70 percent; and the federal government was running a surplus for the first time in the memory of most.

Then what happened? The terrorist attacks in New York and Washington, D. Major airlines are in bankruptcy; hotels are struggling to achieve profitable occupancies; business travel is down; the high-tech stock market bubble burst; the country is at war in a number of locations; security has made travel more difficult, if not actually annoying; and people are nervous.

Join this with an imbalance of trade, the outsourcing of jobs, and the largest federal deficits in history, and the face of the economy is challenging. This translates directly not only to business travel but personal and recreational travel as well. Finding ways to operate profitably in such an environment is the job of the next generation of hotel operators.

Among the predictions I made in the preceding edition was that cultural diversity will play a role in the management and organizational structure of the modern hotel in the United States. As surely as living patterns, economic cycles, and market segmentation have influenced the hotel industry, so will the change in ethnicity of the workforce. The cultural backgrounds that an increasingly diversified workforce will bring to hotel operations Chapter 1 Overview may be seen as a problem or a challengeor both.

To most operators, it will be seen as an opportunity to demonstrate to an increasingly diverse clientele that hotel companies are committed to hiring and training a workforce structure that mirrors society. I see no reason to change that prediction now; if anything, acculturation of the hospitality business will accelerate.

The developer, on behalf of the owning entity, then approaches a number of lending institutions. The lending institutions analyze the deal and offer a proposed term sheet that answers all of the borrowers questions. This allows the borrowers to select the lending institution with which they wish to work. The lender then commissions an appraisal of the project by an independent appraisal company such as Hospitality Valuation Services HVS. Based on the appraisal, the lender issues a loan commitment for the project that usually offers up to 60 percent of the project cost.

The balance must be raised as equity from investors. The sum of these constitutes the total cost of the project for purposes of securing financing. With this information, the ten-year operating pro forma budget is updated to reflect actual costs.

Its now time to go to the money markets for construction financing. To pursue these, the developer prepares an offering solicitation document that meets current securities and exchange law. The nature of this document depends on the type of business entity that was formed. For limited partnerships or limited liability companies, a private placement offering circular and project description is prepared.

For S or C corporations, stock offerings are prepared for sale consistent with applicable federal and state securities laws. The developer now contacts money sources that have risk capital available to invest. Based on their study and evaluation of the reports, documents, and studies detailed above, they decide whether or not to offer funding to the developer. Once the loan is secured, the equity raised, and the building permit issued by the city, the land download option is exercised and the download is completed.

Then the month construction process begins. If the architects plans work as intended, if the general contractor has no problems with subcontractors, unions, or permits, if all the furnishings, fixtures, and equipment arrive on time, if the weather cooperates, and if the employment market is such that human resources are sufficient to open a hotel, then congratulations! The hotel will open on time. Often even before the construction activity commences, the owning entity selects an appropriate management company to manage the pre-opening, marketing and sales, selection and training of the opening staff, preparation of the operating budget, and day-to-day operations once the hotel is opened.

Management companies charge 35 percent of revenue for this service. In recent years, management companies have charged 34 percent of revenue and 23 percent of gross operating profit so they can be measured and evaluated on both sales and profitability. The franchise company may offer to provide management services to franchisees.

Marriott International, Inc. Independent management companies manage the remaining hotels under long-term management contracts of up to ten years duration, often with several five-year renewal options. It has been described in a step-by-step process, but in reality, many of the steps are carried out concurrently to save time and money.

Nevertheless, the hotel development process takes about three years from original concep- Section 1. Only after the project is approved and all financing is in place can the developer start to recover upfront costs and collect development fees. Hotel development with its component parts of hotel feasibility studies, hotel appraisal, hotel real estate finance, and hotel management are all among the career opportunities available to hotel and restaurant administration graduates.

The land was previously contaminated with industrial pollutants that made the parcel unsafe for habitation and construction.

The City Development Commission used state, local, and federal grants to have the land decontaminated, created a master plan for the area, and then offered the parcel for sale and development. The RFP was sent to many major hotel companies and commercial real estate brokers, asking prospective downloaders to submit a download price bid along with a statement of the downloaders development history and ability to develop a hotel of the type envisioned by the Commission.

It listed a closing date by which all bids had to be submitted. An area commercial real estate broker contacted a hotel development and management company with a long history of developing and managing extended-stay hotels in the Pacific Northwest, including a property located in a similar setting to that being offered for sale. The commercial realtor offered to represent the developer in negotiations with the City Development Commission, which would be paying the real estate commission on the sale.

An agreement was reached with the commercial real estate broker to represent the downloader to the seller, and the developer went to work in preparing a proposal. The developer conducted a feasibility study to see all of the conditions in the marketplace that would be encouraging or discouraging to this development project. Studies were conducted to estimate how many room-nights were being sold within a five-mile radius, how many extended-stay room-nights were available in the market, how many hotel rooms existed, and how many were being planned over the following five years.

That provided the basis for a ten-year revenue estimate.

Hotel Front Office Management

The City Development Commission awarded the project to the developer, and work began. First, an ownership limited liability company LLC was formed as the ownership entity that would hold title to the hotel.

The LLC, in turn, entered into a development and construction management agreement with the development company to manage the arrangements for financing and construction of the hotel. The developer, as agent for the ownership LLC, also entered into a hotel management contract with a management company to manage the pre-opening marketing, preopening hiring and training, and the day-to- day operation of the hotel once it was opened.

The arrangements called for the management company to be paid 3 percent of revenue and 2 percent of the net operating income for management services. The ownership LLC then contacted a major hotel company and applied for a franchise to allow the development and operation of an extended-stay hotel.

This was to be followed by a 5 percent royalty and a 3 percent advertising fee once the hotel was open and operating. The developer, acting as agent for the owner, prepared a private placement memorandum document seeking investments from accredited investors.

Note: Additional entities may also be defined as accredited investors by the Securities and Exchange Commission. A group of initial investors retained the other 50 percent in exchange for putting the project together. This effort was successful in raising 40 percent of the total cost of the hotel in anticipation that a lender would provide the remaining 60 percent in the form of a construction loan.

In addition to the priority return, investors could expect to participate in any future capital gain realized should the hotel be sold.

The development company, continuing to function as agent for the owner, then sought a commercial bank to provide threeyear construction financing for the project. The size of the construction loan was above the lending limits of most small regional banks.

The terms allowed the developer, as agent for the owner, to draw down the loan every 30 days after providing proof that funds had been properly disbursed in the construction process.

The loan documents set an interest rate and also required that the ownership LLC seek a permanent mortgage prior to the three-year expiration date on the construction loan. The development company then negotiated with and selected a general contractor with significant hotel construction experience who acted on behalf of the developer, as agent for the owner.

The general contractor then selected design-build subcontractors and an interior designer to select colors, fabrics, furniture, fixtures, and equipment to meet the hotel franchise design requirements. Building permits were applied for, and the building design was presented to the City Development Commission for its approval, along with other groups with a stake in the appearance of the finished building in relation to the area and neighborhood.

With all of these approvals in place, construction commenced, and the hotel opened two years later. As a result, the hotel did not achieve the projected occupancy or average daily rate during the three-year construction loan period. The bank that had provided the construction loan notified the owners that they did not wish to provide permanent financing under these circumstances. The owners were forced to conduct a search for a new mortgage bank.

This illustrates the risk that developers face when entering into a hotel project. However, as hotel values historically peak and decline on about a ten-year cycle, the owners look forward to the option of selling the hotel on the next peak, which will allow them to capture the original projected return through capital appreciation. Hotel development and ownership is a high-risk, highreward enterprise. Peter Cass Dramatic changes have affected the hotel industry over the past 30 years.

These changes have had a disproportionately high bearing on the independent hotel owner, who, in the face of increasing pressure from large, wellfunded chains, struggles to maintain independence and to compete on the basis of distinctive hospitality and character. Several organizations provide independent hotels and resorts with reservations and sales services.

As competition has evolved and intensified, some of these organizations have modified their structure and enhanced their services to meet the changing needs of independent hotels and competitive market dynamics. Today, independent hotels may choose from among more than 20 such organizations delivering varying degrees of competitive advantage and ownership independence.

The rapid advancement and availability of technology. This includes internal hotel operating systems, revenue management, direct-to-consumer communications and booking technology Internet , marketing technology customer databases , and telecommunications and automated sales systems that enable central sales offices to become revenue producers.

The growth and importance of global brands. Recognized brand names and brand attributes are important in reaching diverse customer segments and in creating customer loyalty.

Hotel Front Office Management

Consolidation of multiple brands under a single global management. The management and leveraging of multiple brands use similar technology platforms and shared sales and marketing infrastructures to consolidate and direct consumer demand. Four factors contribute to this rapidly changing environment: The broadening and diversification of the global consumer market.

Both the demographic and psychographic characteristics of the global consumer market are growing and changing radically. Some established ways of doing businesslong-term, high-fee management contracts and franchises, a focus on traditional distribution channels, and traditional hospitality industry marketing techniquesare no longer effective in the new consumer-focused market.

More and more hospitality marketing budgets are being directed toward technologyenabled customer booking and communication; this shift away from traditional hospitality marketing techniques is expected to evolve Section 1. The independent hotel or resort and many small branded management companies may not be able to fund this requirement.

However, this shift will not affect all independent hotels and resorts simultaneously. The first wave of change will hit the global business and city hotel market. This is primarily because of brand competition and the fact that the business travel distribution network is more structured and driven by multinational corporations desiring lower and more predictable costs.

The second wave will affect the leisure market, and the changes could follow quickly. Leisure travel content, including packaging on the Internet, will increase rapidly as the presently fragmented leisure travel distribution network becomes more unified and efficient through consolidation.

The emergence of e-commerce modes in the hospitality industry is not eliminating the intermediary and empowering the individual property, as once thought; instead, it is creating new, more powerful intermediaries. Some of these evolve from the hospitality industry, while others are opportunistic e-commerce companies. The pressure to grow also fostered the development of the franchise concept and franchise system in North America.

The franchise differs from the management contract in that the owner is responsible for operations, including meeting the franchise standards. The growth of management and franchise contracts has been remarkable, and today, according to a recent study, 75 percent of the hotel rooms in North America are covered by some form of branded franchise or professional management agreement Travel Research International, These new business structures continued to threaten the traditional independent owner by accelerating the growth of the chains share of the lodging market.

While these additional offerings leveraged linkages to the global distribution systems and led to strong relationships with travel agents, the consumer was largely ignored, and the organizations did little to generate consumer brand awareness.

In the United States, strong consumer branded operators are attracting increasing amounts of capital to fund their growth at the expense of unbranded operators PricewaterhouseCoopers, In the s, hotel chains continued to evolve as the need for capital to invest in additional properties restricted growth opportunities. All-suites c. Limited-service d. Extended-stay V. Chain i. Franchise ii. Company-owned iii.

Referral iv. Management contract b. Independent typically stay overnight or a few days. Motels may be located near a freestanding restaurant. As one of only 17 hotels in North America to receive both the Mobil Five Star and AAA Five Diamond ratings, The Jefferson Hotel offers guests the highest level of products and services available, with a strong commitment to warm, genuine, and gracious service.

Longo obtained a B. Prior to becoming general manager of The Jefferson Hotel, Mr. The sales and marketing effort for this independently owned property requires aggressive sales and public relations strategies. Focus is placed not only on the guest rooms but also on the 26, square feet of function space and the two restaurants, one an AAA Five Diamond Award winner. Longo encourages students who are pursuing a hospitality management career to remember that, as innkeepers, your hotel is like your home, where all of your guests are made to feel welcome.

This involves providing all guests with the basics of hospitality: a comfortable room, exceptional food, and a friendly staff to serve them. He adds that hospitality is a diverse business, offering a unique work experience each day. The size of the operation can range from 50 to more than units. This type of property is usually found in center-city, suburban, and airport locations. The length of guest stay can be overnight, several days, or long-term. Although this type of hotel may seem new, many downtown, center-city hotels have offered this type of accommodation with in-room kitchenette and sitting rooms since the early s.

Now with mass marketing—advertising products and services through mass communications such as television, radio, and the Internet—this type of hotel is considered new. Limited-Service Hotels Limited-service hotels appeared on the hotel scene in the mids. The range of accommodations and services may include reservations, minimal public dining and meeting facilities, cable television, personal computers, personal services valet and laundry , and ground transportation to and from an airport.

The size of the property can range from to more than rooms. Limited-service hotels are found in center-city, suburban, and airport locations. They are usually located near restaurants for guest convenience. These properties sometimes specialize in catering to the business traveler and offer special business technology centers.

Extended-stay hotel room supply in the United States increased more than 50 percent in over There will be more economy-price than upscale extendedstay rooms before the end of Projected extended-stay hotel supply will be more than half a million rooms through At this level, extended-stay hotel rooms will represent some 12 percent of total lodging inventory. He began his career at the Hampton Inn in Alexandria, Virginia, as a front desk clerk and progressed to guest services manager there.

Then he took a position as sales manager at the Hampton Inn in Fairfax, Virginia, and then as director of sales at the Hampton Inn in Alexandria, Virginia. He was on board as director of sales prior to the opening of the Homewood Suites in Alexandria, Virginia. Gellad said his market for guests includes those persons who are going to be in town for an extended period of time because of government contracts, special projects, training, or relocation in the military or in the private sector.

Relocation is the common characteristic with this market. He says that when you become a supervisor of people, those people want to be treated as individuals, but you have to do so by being fair in interpreting the polices to everyone. He also extends his hope that you will develop a balance between work and a personal life. This business can be very time consuming, but you have to take time to develop a life outside the hotel. He also stresses that a manager has to impress the importance of extending courtesy to employees.

Most of the guests at the Holiday Inn Express are transient leisure travelers, although some are business travelers.

Those guests are looking for cleanliness, a good and convenient location, and amenities such as a continental breakfast, a pool and a spa, and a business center. He started in the hotel business in at the Riverside Inn in Grants Pass, Oregon, doing accounting and taxes and then serving as general manager.

Corporations are taking advantage of the availability of these facilities for training, relocation and temporary assignments at all levels. Additional hotel services include a business center, an exercise room, and a pool. This hotel concept also structures its room rates to attract the long-term guest. Market Orientation Market orientation in the hotel industry is categorized into two segments: 1 residential hotels, which provide guest accommodations for the long term; and 2 commercial hotels, which provide short-term accommodations for traveling guests.

Residential properties include hotels, all-suites, limited-service, and extended-stay properties. Services may include but are not limited to public dining, recreational facilities, social activities, and personal services.

These hotels are usually located in center-city and suburban areas where other activities shopping, arts and entertainment, business services, public transportation are available to round out the living experience. Commercial properties service the transient guest, whose stay is short in duration. They may be located almost anywhere. It is essential to note the very gray areas in using these two types of categories.

A commercial lodging establishment may have a certain percentage of permanent residents. Likewise, a residential hotel may have nightly rentals available.

Sales Indicators Sales indicators, including hotel occupancy and average daily rate, are another means for describing hotels. Occupancy percentage is the number of rooms sold divided by the number of rooms available. Average daily rate ADR is the total room revenue divided by the number of rooms sold.

Once the daily sales opportunity has presented itself, it cannot be repeated excluding the opportunity to sell a room at a half-day rate. Occupancy percentage is also used by investors to determine the potential gross income, which is the amount of sales a hotel might obtain at a given level of occupancy, average daily rate, and anticipated yield.

However, it is also important not to assume that occupancy is standard each night. Variations occur on a daily basis and by season. Average Daily Rate The average daily rate sometimes referred to as average room rate is also used in projecting room revenues—the amount of room sales received—for a hotel.

These expectations have been extensively capitalized upon by major hotel chains, by developing different properties to meet the expectations of various segments of the hotel market, as discussed earlier in the chapter. Yield percentage forces managers to think in more active terms. However, the food and beverage aspect of the hotel industry is essential in attracting some categories of guests who want conference services.

The increase in current year RevPAR was attributable primarily to a 9. By releasing these numbers, we are not intimating that similar RevPAR increases will be achieved for the balance of the year. Nonetheless, our January statistics provide strong evidence that our strategy of focusing on occupancy more than on room rates can yield meaningful revenue growth. There is a great deal of overlap among these divisions, and much confusion, some of which occurs because leaders in the hotel industry do not agree on terminology.

Others welcome the label because it appeals to those travelers who are looking for basic accommodations at very inexpensive rates. These services include, but are not limited to, reservations, on-premise dining, banquet and meeting facilities, and recreational facilities. As discussed earlier, all-suites indicates a level of service for a guest who will desire a more at-home atmosphere. Services include separate sleeping and living areas or working areas, kitchenette facilities, wet bars, and other amenities at the midprice level.

This concept appeals to the business traveler as well as to families. Marriott Suites and Embassy Suite Hotels are examples of all-suite hotels.

It is interesting to note that this concept is also employed in older center-city commercial hotels, in which adjoining rooms alongside the bedroom and bath have been remodeled into living rooms and kitchenettes to create suites.

Limited service emphasizes basic room accommodations, guest amenities, and minimal public areas. The guest has the opportunity to trade the public meeting room for free in-room movies, the dining room for free local phone calls.

Hampton Inns and Ramada Limited are examples of limited-service hotels. A fully equipped kitchenette allows international guests to prepare foods that provide comfort in a new environment. Also, the spacious bedrooms and living areas provide work and recreational areas.

Light breakfast and evening meals are also included. The Merry Manor is a full-service hotel with guest rooms, 6 meeting rooms, and a restaurant. Guest amenities include a year-round outdoor heated pool, an foot indoor hot tub with a therapeutic waterfall, and a kiddie pool.

Goforth has a degree in hotel and restaurant management from the University of New Hampshire. He says that guests are looking for the basic comforts of home—clean, comfortable, wellequipped rooms with everything in working order.

He has noticed a trend toward added amenities in the rooms. Irons, ironing boards, and hair dryers are now considered necessities, and having breakfast available is a must. Business-friendly rooms with a large desk, in-room fax machines, and easy and fast Internet access are also a necessity for attracting a corporate clientele.

Goforth indicates that the occupancy in the Portland market has remained fairly consistent. Growth in occupancy has barely kept up with the constant increase in supply. Chain Affiliation When asked to name several chain operations a group of hotels that follow standard operating procedures such as marketing, reservations, quality of service, food and beverage operations, housekeeping, and accounting , most people would probably mention Holiday Inn, Marriott, Sheraton, Days Inn, Hyatt, Hilton, or Econo Lodge.

Students should stay up to date regarding developments in the industry, such as acquisitions, restructuring, and other changes in these organizations. This information, which will be important to know when making career decisions, can be obtained from trade journals such as Hotels published by Cahners, Des Plaines, Illinois , whose annual July issue includes a listing of hotel chains, addresses, and number of rooms; the Wall Street Journal; and other newspapers, magazines, and Web sites.

Franchise corporations offer support to the franchisee, who is the owner of the land and building, in the form of reservation systems, advertising, operations management, and management development. Perhaps because of a lack of experience in operating a hotel or motel or a lack of business acumen, a poor credit rating, or limited knowledge of real estate development, this type of entrepreneur may need to seek the guidance of others.

Hotel Management and Operations, 5th Edition

He or she can receive direction from a corporation, such as Days Inn, Sheraton, or Hilton, concerning land, building, and management development. Referral Property Sometimes a hotel organization will choose to become a referral property, a hotel operating as an independent that wishes to be associated with a certain chain.

Likewise, the fees are based on services required. The hotel company developer operates the hotel property in competition with all other properties in the area.

It uses its own expertise in site selection, property development, marketing and advertising, and operations management.

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