Front Office

Operations and Management

For Emma and Ellie
[Page iv is Blank]
 FRONT OFFICE
OPERATIONS AND
MANAGEMENT

Ahmed Ismail

Australia Canada Mexico Singapore Spain United Kingdom United States

 Front Office Operations and Management
Ahmed Ismail

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ISBN 0-7668-2343-1
ALL RIGHTS RESERVED. No part of this work covered by the 1. Hotel front desk personnel. 2. Hotel management.
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Contents
Preface / xv
Acknowledgments / xvii
About the Author / xix

CHAPTER 1 Hotels—Past and Present . . . . . . . . . . . . . . . . 1

Historical Perspective / 2
Marketplace Consistency / 6
Lodging Management Association / 7
Revenue Sources / 11
Sleeping Rooms / 12
Meeting/Function Space / 12
Outlets/Ancillary Revenue Sources / 13
Profit Margin / 15
Room Cost / 15
Food Cost / 16
Opportunity Cost / 18
Captive Audience Quotient / 19
Industry Perspective: Usage of Function Space / 21
Chapter Review / 23
Case Study: Food Cost / 24
Case Study: Chain Histories / 25
Internet Resources: Hotel Web Site Home Pages / 26

CHAPTER 2 Hotel Classifications . . . . . . . . . . . . . . . . . . . . 30

Hotel Sizes / 31
Hotel Location Classifications / 31
Downtown / 32
Resort / 32
Airport / 34
Suburban / 35
Hotel Product Types / 36
Service Level / 36
Target Market / 39
Independent Hotel Ratings / 42
Chapter Review / 44
Case Study: Hotel Types / 45
vii
viii ● Contents

CHAPTER 3 The Hotel Guest . . . . . . . . . . . . . . . . . . . . . . . . . 47

Room Sales Differentiation / 48
Group Rooms / 48
Transient Rooms / 48
Transient Reservation Avenues / 50
Market Segmentation / 52
Group Market Segments / 52
Corporate Segment / 52
Association Segment / 52
Other Segment / 52
Transient Market Segments / 53
Business Segment / 53
Pleasure Segment / 54
Chapter Review / 55
Case Study: Market Segmentation / 57
Case Study: Theoretical Buying Decision / 59
Internet Resources: World Wide Web Travel Sites / 61

CHAPTER 4 The Guest Room . . . . . . . . . . . . . . . . . . . . . . . . 62

Categorizing the Guest Room / 63
Room Types / 63
Room Configurations / 64
Room Designations / 73
Room Numbering / 74
Room Status Reconciliation / 77
Guest Room Makeup / 79
Key Control Systems / 82
Industry Perspective: The Role of Architecture in Hospitality / 84
Chapter Review / 89
Special Feature: New Hotel Construction / 90
Internet Resources: Hotel Design Web Sites / 94

CHAPTER 5 Hotel Organization . . . . . . . . . . . . . . . . . . . . . 95

Hotel Organization / 96
Functional Departments / 96
Rooms Division / 97
Front Office / 98
Housekeeping / 99
Reservations / 99
The Unique Role of Reservations / 99
 Contents ● ix

Night Audit / 100

Loss Prevention/Security / 100
Food and Beverage / 101
Accounting / 101
Human Resources / 102
Engineering / 103
Sales/Marketing and Catering / 104
Group Résumés / 104
Practical Areas / 105
Organizational Deployment Example / 106
Top Level Management / 106
About My Job: General Manager / 107
The Executive/Leadership Team / 109
Rooms Division Manager/Resident Manager / 109
Director of Food and Beverage / 110
Director of Marketing / 110
Industry Perspective: Engineering / 111
Director of Human Resources / 112
Director of Engineering / 112
Controller / 112
Director of Grounds / 112
Director of Recreation / 113
Department Heads / 113
Rooms Division Department Heads / 114
Food and Beverage Department Heads / 115
Sales Department Heads / 118
Engineering and Human Resources Department
Heads / 119
Accounting Department Heads / 120
Resort Deployment Example / 121
Traditional versus Revenue-based Deployment / 122
Functional Department Management Teams / 123
Special Feature: Hotel Career Management / 126
Chapter Review / 130
Internet Resources: Hotel Career Web Sites / 133

CHAPTER 6 Front Office Overview . . . . . . . . . . . . . . . . . . . 134

The Arrival Chronology / 135
Stage One—Greeting / 135
Stage Two—Transition / 136
About My Job: Doorman / 137
The Hotel Shuttle / 139
x ● Contents

Stage Three—Registration / 140

Check-in / 141
Determine Method of Payment / 142
About My Job: Front Desk Clerk / 145
Stage Four—Completion / 145
Concierge / 146
PBX (Private Branch Exchange) / 146
About My Job: Head Concierge / 147
About My Job: PBX Operator / 150
Guest Service Attendant—The Front Office
Hybrid / 150
Group Arrivals / 151
Departures / 154
Front Desk Checkout / 154
Guest-directed Computer Checkout / 155
Automated Checkout / 155
Front Office Operations / 156
Communications / 156
Staffing / 157
Value-added Services / 158
Safe-deposit Boxes / 158
Mail and Document Handling / 159
Operations Administration / 159
About My Job: Assistant Front Office
Manager / 161
Shift Checklists / 162
Chapter Review / 164
Case Study: Pass On Log / 166
Internet Resources: Trade Journals/Online
Resources / 168

CHAPTER 7 Room Rate Structure . . . . . . . . . . . . . . . . . . . . 169

Rate Structure / 170
The Hubbart Formula / 170
Cost Rate Formula / 174
Market Tolerance / 174
Room Rate Designations / 175
Rate Measurement Averages / 181
Chapter Review / 183
Case Study: Room Rate Structure #1 / 185
Case Study: Room Rate Structure #2 / 186
 Contents ● xi

CHAPTER 8 The Property Management System . . . . . . . 187

Selecting the PMS / 188
Guest Account / 190
Guest Registration Menu / 191
Guest Accounting Menu / 192
The Check-in / 194
Before PMS / 200
PMS Hierarchy / 202
PMS Systems Interface / 202
The Evolution of PMS / 204
Industry Perspective: Technology in Hospitality / 205
Chapter Review / 208
Internet Resources: Property Management Systems / 210

CHAPTER 9 Guest Accounting . . . . . . . . . . . . . . . . . . . . . . . 211

Accounting Basics / 212
Guest Accounting / 213
Guest Ledger / 214
House Account / 214
Guest Account / 214
Master Account / 214
Guest History Account / 215
City Ledger / 215
Accounting Entries / 216
Uncollected Receivables / 217
Accounting Documentation / 220
Guest Accounting and the Front Desk / 221
Foreign Exchange / 223
Shift Closing / 223
Chapter Review / 224
Internet Resources: Accounting Resources / 227

CHAPTER 10 Night Audit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 228

Night Audit Overview / 229
Night Audit Deployment / 229
Night Audit Reporting / 230
Trial Balance / 236
Night Audit Checklist / 237
Ancillary Night Audit Duties / 238
Guest Security and Incident/Accident Reporting / 238
About My Job: Night Audit Manager / 240
Chapter Review / 241
xii ● Contents

CHAPTER 11 Housekeeping . . . . . . . . . . . . . . . . . . . . . . . . . . 244

Room Assignment / 245
Housekeeping PMS Reports / 245
Housekeeper Allocation / 246
When Guests Overstay / 247
Housekeeping Operations / 248
Housekeeping Guest Room Standards / 249
Housekeeping Management / 251
Turndown Service / 251
Staffing / 253
Lost and Found / 254
Supply and Inventory Management / 255
Industry Perspective: e-Procurement in Hospitality / 257
Chapter Review / 261
Internet Resources: Web-based Purchasing / 263

CHAPTER 12 Reservations and Forecasting . . . . . . . . . . . . 264

Determining Occupancy and Availability / 265
Availability Factors / 265
Current Number of Reservations / 265
Historical Factors / 265
House Count / 268
Overselling / 268
Yield Management / 270
Rate Availability Restrictions / 273
Length of Stay Restrictions / 274
Closed to Arrival Restrictions / 275
Minimum Length Stay Restrictions / 275
Modified Length Stay Restrictions / 275
Rate Averaging / 276
Yield Management for Groups / 276
Reservations Management / 277
Forecasting / 278
Forecasting Factors / 280
Completing Forecasts / 288
Forecasting Frequency / 289
Forecasting Importance / 290
Reservation Sales Management / 290
Staffing / 290
Training / 292
Reservation Evaluations / 293
 Contents ● xiii

Call Management / 294

Motivation / 295
Sales Strategy / 299
Industry Perspective: Yield Management in Practice / 301
Chapter Review / 303
Case Study: Rooms Inventory and Forecasting #1 / 304
Case Study: Rooms Inventory and Forecasting #2 / 306
Case Study: Rooms Inventory and Forecasting #3 / 307
Case Study: Rooms Inventory and Forecasting #4 / 307

CHAPTER 13 Measuring Hotel Performance . . . . . . . . . . . 308

Quantifiable Analyses / 309
Rev-par / 309
Market Share / 311
Qualifiable Analyses / 314
Industry Perspective: Economic Impact of Hotels / 315
Chapter Review / 316
Case Study: Rev-par / 318
Internet Resources: Measuring Hotel Performance / 318

CHAPTER 14 Guest Service . . . . . . . . . . . . . . . . . . . . . . . . . . . 319

Service Standards / 320
Verbal Means / 320
Visual Means / 322
Guest Conflict Resolution / 323
Empowerment / 325
Diversity Awareness / 325
International Guests / 326
Management’s Role in Guest Service / 327
Guest Service Training / 328
Service Mission Statement / 328
Motivating for Guest Service / 329
Industry Perspective: Six Sigma and Customer Loyalty / 331
Chapter Review / 333
Internet Resources: Hotel Training Web Sites and
International Resources / 336

Glossary / 337
Index / 349
[Page xiv is Blank]
Preface

INTRODUCTION
This text introduces concepts of organization, communication,
ethics, and policy within a hotel. The primary focus is the front
office, housekeeping, reservations, and night audit departments.
Other departments are discussed to provide an understanding
of how these departments relate to the front office and how
they operate to enhance the guest experience. An introduction
of basic analyses, techniques, and trends both in policy and
technology will be reviewed as they relate to management and
the guest. This text is intended to give students a “real world”
perspective of the hotel industry. Front Office Operations and
Management balances the need to see where hotels have been,
and where they are going.

WHY THIS TEXT?

As an instructor, and hotel industry veteran, I felt the need to
write a text on the front office that portrayed the nature and
operation of hotels as they exist today, a text that revealed the
inner workings of a hotel in a way that both promoted learn-
ing and interest in the reader. This text prepares the student for
what to expect in the current and future hotel market. The
Property Management System has changed the way hotels
operate, therefore this text devotes extensive time to this tech-
nology. Because the hotel industry will always be about and for
people, this text devotes chapters to both the hotel guest and
hotel employee. The arrival chronology is discussed from
arrival to departure. Additional chapters feature analysis of the
physical makeup of hotels, yield management, and operational
techniques. Performance measurements and analysis of what
makes a truly successful hotel are discussed in detail.

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xvi ● Preface

SPECIAL FEATURES
This text is organized logically so that each chapter builds on the previous one.
Considerable effort was made to ensure that Front Office Operations and
Management was presented in a way that promotes learning and discussion.
Several unique features are incorporated to provide learning tools that
encourage thinking “outside the box.” These features include:
● “Industry Perspectives.” Industry professionals wrote this feature ele-
ment. They reinforce concepts and introduce new points of view.
Cutting-edge trends in the industry are discussed.
● “About My Job.” This feature, written by actual employees, relates
real-life viewpoints on various job roles.
● “Internet Resources.” This feature gives students Web sites to research
topics covered, either on their own time or as class projects. Numer-
ous opportunities are presented to incorporate the Internet into class
discussion.
● Numerous case studies, exercises, and critical thinking discussion
questions end each chapter. In addition, all chapters have ample re-
view questions.
● Dozens of photos, charts, and graphs illustrate and reinforce con-
cepts throughout the text.

INTERNET DISCLAIMER
The author and Delmar affirm that the Web site URLs referenced herein were
accurate at the time of printing. However, due to the fluid nature of the
Internet, we cannot guarantee their accuracy for the life of the edition.

INSTRUCTOR’S GUIDE
The Instructor’s Guide gives educators state-of-the-art tools to teach with, in
keeping with the timely nature of the text. The features of the guide include:
● Answers/talking points to discussion questions and exercises
● Suggestions for additional exercises, lecture topics, guest speakers,
and hotel tours
● Answers to end of chapter review questions.
● A test bank of additional questions (with answers) for each chapter,
as well as completed sample tests and quizzes.
Acknowledgments
The author wishes to thank the professionals who gave of their time, expertise, and knowl-
edge in the planning and writing of this textbook.

Sarah Suggs Jill Reyes

KSL Resorts Corporate Meeting Services
Jamie Doyle Pete VanOverwalle
Indianapolis Marriott North Westin Indianapolis
Rick Shuffitt Wendy Hensley
Adams Mark Hotels Crowne Plaza Union Station
Douglas Reddington Dominic Russo
BSA Design Omni Hotels and Resorts
Thomas Roth Jeff Beck
Indianapolis Marriott Downtown Columbia Sussex Hotels
Glenda Arnold Kathy Bannasch
Indianapolis Marriott North Embassy Suites Hotels
John Pohl Carol McCormack
Lexington Convention and Visitors Bureau Omni Severin Hotel
Linda Brothers, Ph.D. Ted Stumpf
IUPUI Omni Los Angeles Hotel
Malcolm Jennings Thomas Errigo
Hyatt Hotels and Resorts Marriott Hotels and Resorts
Stacia Howard Erik Olsen
Seattle Marriott Sea-Tac VingCard
Mecheal Johnson Clark Williams
Execu/Tech Systems TPE Research
Jason Bean Richard Haberman
Michelle Quick Lori Harris
Jeff March Darlyne Freedman
Stephany Brush Kristin Wunrow
Penny Woodruff Jackie Schult

xvii
xviii ● Acknowledgments

Delmar and the author also wish to express their thanks to the content
reviewers. Their input and expertise added greatly to this text.

Patrick Beach Robert McMullin

William Rainey Harper College East Stroudsburg University
Palatine, Illinois East Stroudsburg, Pennsylvania

Maria McConnell David Hanson

Lorain County Community College Idaho State University
Elyria, Ohio Pocatello, Idaho

Deanne Williams Tim Hill

Bethune-Cookman College Central Oregon Community College
Daytona Beach, Florida Bend, Oregon

For additional hospitality and travel marketing resources, visit our Web site
at <http://www.Hospitality-Tourism.delmar.com>.
About the Author
Ahmed Ismail is an acknowledged authority in the hospitality
industry. Currently serving as a university instructor and work-
ing in the meetings industry, he received his Bachelor of Arts in
international management from Gustavus Adolphus College in
St. Peter, Minnesota. His professional experience spans many
years in hotel operations, sales, catering, and marketing with
the Marriott, Hyatt, and Renaissance Corporations. He is cur-
rently considered a pioneer in the field of meeting consolida-
tion technology. He is a sought after speaker and has received
numerous awards for leadership and innovation. He is also the
author of Hotel Sales and Operations and Catering Sales and Conven-
tion Services (Delmar/Thomson Learning).

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