Hotel Operation Essentials

Objectives

1. To introduce the history and characteristics of the hospitality industry

2. Discuss the two main participants in the industry: the global hotelier and the hotel
guest
3. Identify and explain the interrelationship of various hotel departments
4. Discuss the cost and revenue centers of hotels
5. Discuss the hotel operating cycle essential in prioritizing tasks
6. Present an overview of job positions in a hotel
7. Discuss how viewing the hospitality industry in a unique dimension can consider
it as a product having perishability
8. Understand the change of the industry’s philosophy from a topdown approach to
a more participative management style.
9. Discuss the Seven Deadly Sins of Service

The Hospitality Industry

The hospitality industry is a service-oriented industry. It creates wealth for shareholders by

providing food and/or beverages, accommodation, entertainment, or all of it to satisfy people
who are away from their homes. More often than not, the products in this sector are intangible. It
is the method in which the product purchase is received that defines its perceived quality. The
hospitality industry is segmented into:

1. Hotels
2. Restaurants
3. Private Clubs
4. Managed food service
5. Event Planning
6. Tourism-related businesses
7. Travel Provider

Characteristics of the Hospitality Industry

The hospitality industry is quite challenging because of its unique nature of being service-
oriented and having a strong emphasis on human exchange during the delivery of service. The
characteristics of the hospitality industry are listed in the figure above. To further understand, we
will discuss the characteristics.

1. Product-Service Mix
Customers usually consume a mixture of products and services in the hospitality
industry. For example, a family who spends their weekend at a hotel pays for the room
and amenities but also for the services provided by the staff to ensure their satisfaction
during the stay. The amount they pay for covers both the tangible and intangible
experience of their stay in the hotel.

A successful hospitality business counts on both its products and services and how
these are delivered to the customer. The importance is often placed in the delivery of
service rather than the tangible products that make the hospitality experience
satisfactory.

2. Two-way communication

To achieve service excellence, the participation of both customers and staff is crucial in
the hospitality industry. Interactions with customers relay important information about
their needs and expectations which the staff has to comply with and find immediate
action to satisfy the customer. Interaction and teamwork between staff and inter-
department are also critical to the total experience and satisfaction of the customers.

3. Relationship Building

Repeated customers allow the hospitality industry to survive. Building long-term

relationships with customers benefit the business with stable revenues regardless of the
season. It also builds brand reputation through positive feedback or word-of-mouth of
repeat customers.

Developing brand loyalty through membership programs that entail privileges and
incentives to its members and frequent customers is a way of enticing customers to stay
with the business and prefer them over competitors.
Top management believes that informal ways of building “friendship” between front-line
staff and customers can win the loyalty of customers in the long run. Through a high
degree of personal attention and customization of their products and services,
customers will be highly satisfied with their experience and remain loyal.

4. Diversity in Culture
.
With the hospitality industry catering to customers with different culture, beliefs, values,
and backgrounds, conflicts and misunderstandings can easily arise. It is important that
staff remains open-minded and together find solutions to problems.
 For example, some customers abstain from meat due to their religious beliefs or lifestyle.
The staff should always cater to those needs and avoid serving pork for Muslims, red
meat for Pescatarians, and meat for Vegans.

The diversity of customers implicates that staff should know and understand different
cultures and lifestyles to provide flexibility in their service and allow a harmonious
experience for customers.

5. Labor Intensive
As discussed, the hospitality industry is service-oriented in nature and will require a huge
supply of labor. Especially for businesses that target high-ended customers such as 5-
star hotels or fine dining restaurants, these customers expect a high-degree of human
contacts and personalized service in their experience.

2 Major Players in the Industry: The global hotelier and the hotelier guest
The Global Hotelier
Described as the person who possesses the following characteristics:
1. Self-management Competency
The Global Hotelier should possess a sense of self-awareness and development to be
responsible for their role in the business and make a conscious effort to have a career
and personal growth. This entails that hoteliers should have a balanced work-life to cope
with stress and remain healthy.

Workers in this industry should have a high persona of integrity gained through mutual
respect for co-workers through honest work and keeping their word. They should also be
resilient, ethical, and motivated in order to function well and do a clean job.

2. Communication Competency
Effective communication in a multicultural workplace is a must. The Global Hotelier
should be able to communicate with and understand cultural, political, and economic
differences in order to relate well with colleagues and customers.

3. Multicultural Competency
Hotels are internationally managed and it is inevitable to have various nationalities as
guests. The ability to work well in a multicultural environment is a must. The Global
Hotelier should be able to communicate with and understand cultural, political, and
economic differences in order to consciously use universal words and body language in
facing guests.

4. Teamwork Competency
 Create a healthy environment that encourages teamwork. Global Hoteliers are team
players and promote cooperation and collaboration among employees to avoid
confusion

The Hotelier Guest

The hotel and resort industry is faced with the challenge of being proactive in knowing what their
guests want. The global traveler in the 21st century is changing, and below are 4 of their many
characteristics.
1. Technology Driven
In this age, almost everyone’s lifestyle is dependent on technology. Whether in business
or leisure, global travelers use gadgets and equipment to fast track daily activities.
Hotels invest in internet-friendly systems to enhance their processes and offer facilities
making it convenient for both the management and the traveler.

2. Budget-Conscious
Global travelers know what they want by browsing through reviews and blogs online to
seek hotel rooms with high-tech facilities that are less pricey compared to five-star
hotels. These travelers barely stay in hotels so they book lower-end ones that can offer
close to the same comfort and services that high-end ones have.

3. Detail-Oriented
Smooth check-in and out and quality service are two general things that global travelers
want. Hotels cater to these by offering highly personalized services in detail to achieve
customer satisfaction.

4. Youthful Travelers
As the demographic continues to grow, more generation X, Y, and Z can be seen
traveling and checking-in the hospitality industry.

Interrelationship of Various Hotel Departments

The Different Departments of the Hotel and its hierarchy are shown in the diagram. To know
more about each, continue to the following slides

General Manager

Paired with an executive committee, the general manager runs large hotels and heads the 7
major departments: Room Division, Food and Beverage, Marketing and Sales, Human
Resources, Chief Accountant, Engineer/Facility Management, and Security.

Executive Committee
Holds a major responsibility in developing and executing plans made by the owner, the general
manager, and other members of the management team. Assumes responsibilities for the daily
operations and management of the hotel including checking on operations, providing feedback
and offering assistance when needed. He/she is also responsible for completing, reviewing, and
summarizing statistical reports and share them with the general manager.

Rooms Division
A rooms division director is responsible for the effective management of all the rooms division
departments including financial responsibility, employee/guest satisfaction goals, guest services
and relations, security, and gift shop. The room division consists of:
1. Front Office
2. Reservations
3. Housekeeping
4. Concierge
5. Guest Services
6. Security
7. Communications

Front Office
Creates a critical positive first impression to the client which can make or break their
experience. At the front desk, you should be personable, confident, patient, and be able to
multitask. An average day of the front office manager performs the following duties:
1. Check the night clerk report and review the previous night’s occupancy and average
rate.
2. Note any important thing in the logbook.
3. Attend team meetings of room departments.
4. Look over the market and determine what rooms to sell and at what price.
5. Review arrivals/departures of the day and handle checkouts and check-ins.
6. Arrange preregistrations for all arrivals.
7. Check complimentary rooms
8. Review VIP list and prepare registration and advise housekeeping for flower/fruit
arrangements.
9. Verify group rooms to be picked up for the next 30 days.
10. Politely and efficiently attend to the needs of the guests like organizing room changes
that guests may require.
11. Check issuing and control of keys.

Reservations Department
Display exceptional telephone manners and telemarketing skills to sell the hotel emphasizing its
advantages over its competitors and exceed expectations when making reservations for guests.
Achieve the goal of selling all rooms for maximum rates and at the same time avoid possible
guest resentment of being overcharged. Important details to record when making reservations:
1. Confirmed Reservations
Generated by the computer printer indicating confirmation number, dates of arrival and
departure, type of room, number and names of guests, number of beds, type of bed, and
special requests.
2. Guaranteed Reservations
 Applies to situations where the guest arrives late. The hotel takes credit card which
guarantees the payment in cases where the guest will not show up or the hotel may
require a deposit especially during peak seasons like summer or Christmas.

Guest Service/Uniformed Service

The first impression of the guest is very important therefore the guest service (door attendants,
bellpersons, and concierge) has a special responsibility.

Housekeeping
The executive housekeeper is responsible for managing his/her people, equipment, and
supplies. Maintaining the cleanliness and servicing guest rooms and public areas are a priority.
Operating the entire housekeeping department according to financial guidelines and keeping
records of activities.

Revenue and Cost Centers of Hotels

Revenue Centers
Known as the “Front of the House,” it is the income-generating departments of the hotel that
usually have direct interaction with customers.
1. Rooms Department
Made up of the front office and housekeeping team.
2. Food and Beverage Department
Includes the outlets, room service, and banquets team.
3. Other Departments
Encompasses fitness and recreation facilities and other income-generating units outside
of rooms, sales, and food and beverage.

Cost Centers
1. Marketing Department
Tasked to promote the hotel and its activities.
2. Engineering Department
In charge of preventive maintenance management of the entire hotel.
3. Accounting Department
Accountable for billings of guests and revenue and cost monitoring of the hotel.
4. Human Resources
Responsible for recruiting, selecting, orienting, training, and disciplining all employees.
5. Security
Assures the safety of all the people in the hotel and addresses all cases of threats and
emergencies.
6. Sales Department
Includes room and food and beverage sales teams and is responsible for saturating
markets for room occupancy and functions and events of clients to be held at the hotel.
 7. Administration or Executive Office
The hotel general manager’s office.

The Cycle
The operations of the hotel can be easily understood by knowing the hotel’s operating cycle.
The cycle is presented in operations briefing; thus every hotelier is expected to know it by heart.
Hotel operations can be divided into five phases as follows:

1. Pre-Arrival Phase
Guest contact occurs prior to the guest’s arrival in the hotel. Under this phase, the guest
inquires and books a room or a banquet hall in the hotel.

The hotel personnel tries to impress the potential guest through product knowledge of
the facilities and services of the hotel, and outstanding human relations and
communication competencies.

Sample tasks:
a. Room reservation
b. Banquet reservation
c. Answering the telephone
d. Answering potential guest inquiries

2. Arrival Phase
The first direct guest contact occurs and the guests are welcomed to the hotel. Most of
the tasks in this phase are performed by the front office team.

This phase is crucial as the hotel’s first impression is imprinted in the mind of the hotel
guest. A disastrous first impression is hard to recover as the guest will have a notion that
all services will be bad from the start.

Sample tasks in this phase include:

a. Guest pick-up at the airport
b. Welcoming the guest
c. Carrying the guest’s luggage
d. Guest’s registration
e. Escorting the guest in the room
 3. In-Stay (Duration)
This phase focuses on tasks performed in the entire duration of the guest’s stay. All
services are performed to make the guest’s stay in the hotel highly satisfying. Majority of
the work during the guest’s stay is done by the housekeeping team.

Sample tasks in this phase include:

a. Room cleaning
b. Turndown service
c. Accepting guest inquiries and request
d. Room service

4. Departure
In this phase, all the guests’ requirements are settled prior to his/her departure. The
billing is double-checked for accuracy to avoid any guest complaints. Future guest
bookings are also asked.

5. Post Departure
Upon guest departure, the hotel checks any lost items by the guest. Then, all necessary
guest preference during his/her stay is inputted in the Property Management System.
This is also the phase where administrative work is done.

Overview of Job Positions in a Hotel

Regardless of its size, a hotel must have an organizational structure that services its customers
most effectively. Although the number of staff may change in a big hotel, typically, the structure
remains the same, and the chain-of-command and the roles and responsibilities of each
department are essential to maintaining a well-functioning organization.

Owners and Executive Managers

The executive level of a hotel usually consists of the hotel owner and the general
manager. The hotel owner sets the standards and policies of the hotel and delegates the
implementation of these standards and policies to the general manager. The general
manager’s responsibility is to manage the hotel’s day-to-day activities and to oversee the
functions of various departments such as food and beverage, laundry, and
housekeeping.
 Assistant Managers Supporting the General Manager
In many hotels, the assistant manager is the general manager’s right hand and provides
support for a number of daily tasks. For example, it’s the assistant manager’s job to
communicate with all department heads and ensure that they are handling any and all
issues that could affect the performance standards of the hotel.

Mid-Level or Departmental Managers

Mid-level hotel managers are a tier below assistant managers, and usually include
positions such as the front desk manager, food and beverage manager, sales manager,
housekeeping manager, marketing manager, financial manager, and human resources
manager. The front desk manager’s duties include handling reservations, handling guest
complaints, and ensuring that the proper department handles guest requests. The food
and beverage manager is responsible for handling room service, catering, and the daily
activities of a hotel’s bar and restaurant. The housekeeping manager oversees all
aspects of cleaning and maintaining the appearance of the hotel. The marketing
manager is responsible for implementing promotional campaigns to attract guests, and
the financial manager handles hotel accounting, budget, and expenses. The human
resources hotel manager oversees the recruiting, training, and development of all hotel
staff, and also ensures that each staff member is compensated according to the hiring
protocols. HR hotel managers must also ensure that the hotel adheres to legal safety
policies as well as employment practices that comply with the law.

Operational and Guest-Facing Staff

The operational staff of a hotel includes all the people that work in the different hotel
departments such as food and beverage; housekeeping; the front desk; the bar; and the
restaurant. Staff positions include chefs, cooks, dishwashers, guest room attendants,
laundry room attendants, room service waiters, porters, and customer representatives
that greet guests, guide them to their rooms, and relay special requests to the front desk.

Viewing the hospitality industry in a unique dimension: hospitality as a product having

perishability

In the hospitality industry, product is not just a tangible object. The product definition is extended
to include the following: experiences, people, places, organizations, information and ideas.

Hospitality is focused on intangible products: it is not like a new shirt you purchased at
an outlet mall. It's not something you can touch, feel, or wear. The hospitality industry
sells an experience or a feeling that is desirable.

Also, perishability is one of the most important characteristics of the hospitality industry.
The products/services are consumed as they are produced. Hotel rooms and banquet
 halls cannot be warehoused for future sales. When a hotel room is not booked tonight,
you cannot take ‘tonight’ and sell it tomorrow.

Hence, services cannot be stored, saved, returned, resold once they have been used. Once
rendered to a customer, the service is completely consumed and cannot be delivered to another
customer.

The change of the industry’s philosophy from a top-down approach to a more participative
management style

Top-Down Management
Top-down management occurs when goals, projects, and tasks are determined among
your organization’s senior leaders, usually independently of their teams. These goals,
projects, and tasks are then communicated to their teams.

The advantage of this is that top-down management is the most common approach to
organizational management and most employees are familiar with this style. However,
employees may feel disconnected from your business’s mission and values, since
they’re not involved in aligning goals to the business.

Participative Management
Participative management, encourages the involvement of stakeholders at all levels of
an organization in the analysis of problems, development of strategies, and
implementation of solutions. Employees are invited to share in the decision-making
process of the firm by participating in activities such as setting goals, determining work
schedules, and making suggestions.

A participative management style offers various benefits at all levels of the organization.
By creating a sense of ownership in the company, participative management instills a
sense of pride and motivates employees to increase productivity in order to achieve their
goals.

Why change?
Managers who use a participative style find that employees are more receptive to
change than in situations in which they have no voice. Changes are implemented more
effectively when employees have input and make contributions to decisions.
Participation keeps employees informed of upcoming events so they will be aware of
potential changes. The organization can then place itself in a proactive mode instead of
a reactive one, as managers are able to quickly identify areas of concern and turn to
employees for solutions.
 Moreover, creativity and innovation are two important benefits of participative
management. By allowing a diverse group of employees to have input into decisions, the
organization benefits from the synergy that comes from a wider choice of options. When
all employees, instead of just managers or executives, are given the opportunity to
participate, the chances are increased that a valid and unique idea will be suggested.

The Seven Deadly Sins of Service

Customers only need one reason to get upset and walk away. Unfortunately, businesses
provide them with a lot of these reasons. They’re often called the “7 Sins of Service,” and many
companies unknowingly let them happen. Here are the “sins” to avoid:

1. Apathy. Customers’ questions and issues are important to them, and they expect that
those questions and issues will be important to the people they do business with. When
employees don’t seem to care, customers will be upset.
2. The Brush-off. This often comes in the form of phone trees, where customers can’t dial
through to a person. In other situations, it’s when one front-line rep passes a customer
onto someone else for help. The person who hears customers first should almost always
make sure they’re happy to the end.
3. Coldness. In this situation, an employee might fail to acknowledge that a customer has
brought up a legitimate problem or might address it as if it’s a nuisance. Front-liners
need to stay warm and focused on one person at a time.
4. Condescension. When employees use jargon, acronyms or language that doesn’t sound
like what customers use, they’re condescending. Front-line employees want to mimic
customers’ language and rate of speech, and avoid company and industry jargon.
5. Robotism. This is often displayed in a customer service pro who starts interactions by
asking for account numbers, phone numbers or other generic information, rather than
trying to make conversation. Employees want to ask at least one personalized question
before going to task.
6. Rule books. When employees just follow the rules, rather than common sense or their
hearts, they come across as cold and uncaring. That might be OK for routine
transactions, but complex, emotional and special situations always call for
thoughtfulness.
7. Runaround. Employees might give customers the runaround when they continually
suggest customers look at a website, fill out paperwork or make another call. Many
times, employees need to walk them through what they need to do.

References

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