B.H.M.S.

YOUR BHMS GUEST LECTURER

Swiss/Australian
International Hotel and Education experience
THE CASE
 Academic Writing and Research
 This document is an Newspaper extract. You are invite
to do a research project on the India hotel and tourism
market – as a small group project (4-6 per group).
 Discuss
 What are the issues in Thailand
 Why are these issues
 Understanding the issue is the key before you answer
THE PROJECT
 You need to do:

 1. Define the points in Thailand case

 2. Understand the issues and relevance of the points
 3. See how they apply to India, and find research
material to support your findings
 4. Write the document, and hand it in to the teacher
 5. You will get the project back, with comments and
marks (out of 10)
NOW BACK TO INTRODUCTION TO HOSPITALITY

 We analysed organisational design, structures and reasons why we

departmentalise within hotels
 We made an overview of the people, the departments, the outcomes of
each department
 This overview is not complete, it is an introduction.
 Its now up to you to find and see the scope of our industry and the
variety of skills, knowledge and people required
 Do not ignore any text and handout – all information you receive is
relevant – the more you know, the better manager you will become
 Most students tend to ignore readings – don’t do it – it will make
the difference in your career
WE NEED TO KNOW ALL JOBS TO DO THIS
 Hotel staffing systems
 Job description
 Every job needs to be described, structured and documented, and
then implemented.
 Job redesign
 Work processes need bettered, hence re design is taking place all
the time. See and keep eyes open
 Performance evaluation
 This is also used to see, whether you are doing the job, following
the job description and whether you job needs to be adjusted (re-
designed)
WE NEED TO KEEP IN MIND
 TQM
 As discussed that the TQM concept (also ISO concept) is
designed to improve. It is every persons task to improve
 Example – if you can make suggestions, you are in the spotlight
 Revenue objective
Revenue enhancement is the major task
If you can improve revenues by 1%, then you are in the spotlight (1% of a daily
$1000 revenue is $30000 more revenue per year
 Efficiency
 Outcome versus system – effective and efficient
THE 2 KEY DEPARTMENTS
 We discussed the Food and Beverage and Rooms Division
departments
 It is now essential that you read texts, and watch, and observe
operations, whenever you are visiting a hotel
 You should visit hotels anyway, to see, to feel, to observe
 No hotel is alike, no text will cover exactly the Indian situation, or the
Dubai situation.
 Early observations, thinking and comparing makes a good manager
 CNN had a report on successful manager – all of them engrossed
themselves into the field of their interest, early and ongoing – they
know every details of their field
 If they can do it, so why not you?
OTHERS
 Accounting and Finance
 Finance (CFO) – the most powerful person in a hotel
 Accountant
 Bookkeepers, Night Audit
 Cost Control
 Sales and Marketing
 Sales and Marketing Manager
 Sales external (Accounts Managers)
 Sales Internal (juniors)
EXECUTIVE
 Most hotels are managed by a team (not the General Manager). The
Executive consists of 6 managers (sometime 8). They meet every week and
make the decisions for the hotel.
 Agendas are distributed a day before. Each of the Executive prepares
reports, which are read before the meeting and then the issues are discussed

 General Manager
 Human Resources Manager
 Chief Finance Officer
 Room Division Director
 Food and Beverage Director
 Sales and Marketing Director
LEVELS OF MANAGEMENT
 Executive Managers
 6 to max 8 senior managers
 Senior Managers
 In charge of a major department (engineering, restaurants,
housekeeping etc)
 Middle Managers
 In charge of minor department, assistant to major department
heads
 Junior Managers
 Supervisory level, assist Middle Managers
TYPICAL CAREER MOVES
 To get an Executive position
 Need to get exposure and experience in all key Divisions
 Need to get multi national experience, pref internationally
 Good education, degrees are increasingly demanded
 Languages are essential at this level
 To get a Middle Management position
 Experience in the Division, and departments within the division
 Example – Front Office Manager has experience in Porters desk, in
Housekeeping, in Sales etc
 Experience in large and small hotels
SUMMARY
 We have analysed together the Hospitality Industry (a
overview of the Industry)
 You have received some reading materials which are important
to consolidate knowledge, and prepare for the examination
 You should now understand that a hotel is a business and you
prepare to be a business person in a hotel and/or the service
industry
 Now its up to you to continuously learn, analyse, discuss and
ask lots of questions – learning is not what the teachers gives
you, but what you find and see and experience yourselfes
THE REST OF THE SUBJECT
 You will receive much more information from your
class teacher
 The next classes will deal with Restaurant Business
 Classifications
 Restaurant operations
 Front of House
 Back of House
 Type of Staff
 Operational Trends
THE RESTAURANT BUSINESS
 The trends in this areas
 There are massive changes happening
 The competition from new small restaurant groups
 Many graduates make themselves self employed, and make money

 Special restaurants – ethnic

 Fine Dining
 Fast Food
 Hotel Coffeeshops
 Hotel Restraurants

 Hotel Emerald Restaurants

MANAGED SERVICES
 We also call this Industrial Catering – note many of these jobs are good
because good salary, and fixed working hours (structured shifts)

 Airline Catering
 Military
 Educational Catering
 Example BHMS School Catering
 Hospitals, Age Care Facilities
 Home Catering
 Cruise Ships

 The same management and operational concepts apply – except we use different
processes and sharper calculations
BEVERAGES
 Why is knowledge important in these areas?
 20% of revenue in many hotels come from Beverage, and profit
margins are very high
 Bar Management and the Law
 There are strict laws, especially in USA
 Product knowledge
 Wines
 Beers
 Spirit
 Non Alcoholic
 Tea and Coffee
ASSEMBLY MANAGEMENT
 Recreational Parks, Theme Parks
 Example Dream World Gold Coast
 Catering for Family, Children, Handicapped, Elderly
 Clubs
 Gambling Clubs
 Sport Clubs
 Recreation Clubs
 Lion Club Brisbane
MEETING MARKET – EVENT INDUSTRY
 Exhibitions, Trade Fairs
 A major part of our industry, often not hosted in hotels
 Many hotel school graduates joint the event Industry
 Conventions
 Academic, Scientific, Trade
 Meeting Planners, Convention Offices
 Seminars
 Meetings, Forums
 Special Events
 Sport, Celebration, Weddings
 Commonwealth Games in Delhi, Olympic Games, Tennis Tournament in Chennai
MANAGEMENT IN THE HOTEL INDUSTRY
 The core management processes are thereafter introduced
 Management processes are a structured process of events
which take place when managers “manage”
 Leadership and Management
 Leaders
 Leadership styles
 Modern leaders
 Old Leaders
 Trends in Leadership
 What is management
MANAGEMENT PROCESSES
 Planning
 There are many plans
 Organising
 Organising is a process
 Leading
 Different events and people need different leadership
 Controlling
 Without control no management process works
 Communication
 Decision Making
 Motivation
SUMMARY
 I want you to understand that you are future managers with great
potential, and graduating at a time when India is starting a major
management change – there will be great opportunities for you
 This has some responsibilities for you
 Don’t wast time, don’t ignore preparing for it
 Management is not learned when you are a manager, but when you are
learning to be a manager - Now

 The Exam – details

 Questions and essays and statements (writing short, precise answers is the key)
 Think before you write
ECONOMICS
 Macroeconomics – large, analyses the economy
as a whole, both nationally, and internationally
 Micro economy is the study of the micro units
of market economy of supply & demand of goods
& services that are market forces to determine
price of a commodity or service
 Example Petrol price in India
 Example – Onion prices in India
ECONOMICS
 We will learn
 Understand a range of economic terms used in the
media and how these factors relate to the hotel
industry

 Predict how the demand for hotel and airline products

by different groups of consumers will be effected by
price changes for these products
ECONOMICS
 Apply the theory of supply and demand to the
hospitality industry

 Analyze how changes in the industry and the economy

may effect the demand for and supply of hotel products

 Evaluate what sort of competitive pressures apply to

hotels

 Evaluate how a hotel can react to competition in the

industry
NOW THE REAL APPLICATION
 Macro
 What does unemployment do to labour supply in
hotels
 How can inflation benefit or damage a hotels business
 National wage increases gives hotels more business,
or not?
 New Taxes are enforced, is this good for hotels?
 India Economy
THE REAL APPLICATION
 Micro
 The Coffee harvest has been poor – impact in India
 You want to increase the room rates – how much
 The currency is declining
 Supply and demand
 Elasticity
 Daily application
THE END

 Thank you for the opportunity to be

your teacher, I genuinely enjoyed
being part of your class

 I look forward being back, I want to

come back