Hotel Management

Hotel ManagementFinal AssignmentQuestion no. 1.

Explain the five different types of management association?

Answer:

The five different types of management association include.

1. Owner-operated2. Owner-managed

3. Independent

4. Franchised

5. Management contract

1. Owner-operated:

Owner-operated hotels are historically understood to have been the first type of lodging management association. A hotel that is run by an owner and the owners family is considered owner-operated. The currently popular bed and breakfast hotel is considered owner-operated because the owner cooks the meals, cleans the room and performs all such tasks. They are also called as MOM and POP hotels, owner-operated facilities are limited by the size of owners family.2. Owner-managed: Owner-managed hotels are those where the owner has hired non additional (non-family) personnel to help run the property. These hotels can be large or small. The overall management remains with the owner, but day-to-day operations can be in other hands. Many of the hotel chains we see today began with a single owner-managed property. From the first hotels, they grew using different affiliated chains, as that would alter its management association.3. Independent Hotels: Independent hotels are also not chain affiliated. In these hotels, the owner has no hold in management or day-to-day operations. An independent group of managers are responsible to the owner of for hotels performance. This is more common affiliation then the pervious two. In situations where a hotel is owned by a group of investors, an independently managed hotel eliminates any potential conflicts of interest.

4. Franchised Hotels Franchised hotels are independently owned hotels that affiliate themselves with a chain. In a franchise agreement, the owner (franchisee) pays a franchise fee to the chain (franchiser) in exchange for the rights to use their name. in addition to the name, the chain provides standard operating procedures and guidelines on administration so that a consistent level of quality and service is maintained. The franchised hotel also benefit from national marketing campaigns (utilizing television, print and radio media) that might be too cost prohibited for an individual hotel to undertake. Another benefit of franchising is access to a Central Reservation System (CRS). A central reservation system provides the consumer with an avenue to locate a hotel of choice in certain location.5. Management Contract

Management contract hotels are the most common types of hotels now-a-days in marketplace today. A hotel under management contract is similar to a franchise in that it is supplied with standard operating procedures as well as quality and service level targets. However, these hotels differ in that they are actually operated by the company supplied those standards remember, a franchise hotel can choose its own management.

The hotel chains offer most management contracts in addition to offering franchise agreements. Companies such as Hilton, Marriot and others offer management contracts in addition to offering franchise agreements. The management fee is often greater than the franchise fee from the same chain for this reason.

Question No. 2.

Explain the shared benefits of franchising versus management contract affiliation?Answer:The shared benefits of franchising versus management contract affiliation are as under.

FRANCHISINGMANAGEMENT CONTRACT

For the franchisee, franchising helps reduce risk

Proven operational methods are used

Franchisees and their financial capital expand the brand faster than franchiser could do solo

Management quality can be improved

Targeted expertise can be obtained

Documented managerial effectiveness is available

Payment for services can be tied to performance

Partnership opportunities are enhanced

Question No. 3. What is the referral organization? What do they offer?Answer:

Referral organizations are those organizations that just pay an initial fee for once and operate independently once they paid initial payment. Referral organization consists of independent hotels which have grouped together for some common purpose. They offer same amenities as other hotels do like sleeping rooms, meeting/function space, room services etc. BEST WESTERN INTERNATIONAL is one the best example of referral organization having 4000 hotels world wide.Question No. 3. List four types of hotel and what are their characteristics?

Answer:

The four main hotel types are: Downtown

Resort

Airport

Suburban

Downtown:Downtown hotels location types located in dense urban areas. This doesnt necessarily mean the city center but most often does. Hotels that have that have large clusters of corporate structures or office parks surrounding them can be considered downtown locations types regardless of exactly where in the city they are located. These hotels are located in the heart of the city and they are more expensive than suburban hotels. These hotels are patronized by business personnel and high income tourists.Resort: Resort location types can be classified as such only if they fulfill one of two main criteria.1. A resort can be located near some sort of special attraction that attracts guests for a reason other then hotel itself. An ocean, natural wonders, mountains, Amusements Park or golf course can be their attraction.

2. The second unique signature attraction created by the hotel is defined as an event, activity or facility that is defined with a specific hotel. Most resort hotels provide extensive food and beverage, valet and room service, sight seeing to vacationers. A more leisurely, relaxed atmosphere distinguishes most resort hotels from other types of hotels.Airport: The airport hotel location type is perhaps the easiest to identify. Most major airports in the world have one or more hotels located very close by. It can b said that the special attraction of an airport hotel is the airport itself. The airport provides the steady streams of travelers coming to and from the city at almost all hours.

Airport hotels commonly provide complimentary shuttle service to and from the airport to make it convenient for the travelers. The hours of operating in the restaurant, lounges and other facilities may be longer than at other location types in order to accommodate those travelers dealing with change in time zones and jet lag. Multilingual staff members are common at airport hotels in major gateway cities to assist international travelers.

Typical target market includes business clients, airline passengers with overnight travel layovers or canceled flights and air line personnel hotel own courtesy vans often transport guests between the hotel and the airport.Suburban: The suburban hotel type is perhaps the most common suburban hotel is generally considered to be those that do not fit into the other three located types; most of the hotels in the world have actually suburban location types. These hotels are not located in the downtown area or near airport. They have no special attraction to qualify them as resorts. They are common on nearly major roadways and near small office complex. Normally these hotels types are patronized by low budget tourists. Tourist who dont want to stay in the heart of city as they want to be away from the hustle and bustle of city, prefer these hotels. Usually writers, poets, low budget tourists etc prefer to stay in sub urban hotels. Question No. 5

List at least five services/ amenities identified with the full services hotel?

Answer:

SERVICES/AMINITIES

Restaurants

Room Service

Meeting Space Business Center

Health Club

Bell Staff

Gift shop

Lounge(s)/entertainment

Suites/upgraded rooms

Concierge lounge and services

Executive or business class floorsexpress/ video checkout ability In-room amenitiesSecurity/ loss prevention

Shuttle services

Question No. 6 What are the principles behind target market analysis?Answer: The principles behind target market analysis are based on number of markets in which guests are categorized. A target market can is a combination of market segment(s) the hotel wants to penetrate. The target market can be inherently tied to a product type or specifically designated by a marketer as new focus. In modern hotel the market there are vastly different target markets available. These markets contribute to each hotels available business mix. The target market is comprised of those consumers wanting a difference type of hotel room. The physical differences in the room itself do not differentiate between services-level product types. The standard target market itself does not differentiate room product types are the ones that will differ from the standard. The physical differences in the hotels set apart. These differences become apparent when looking at the target market that comprise those seeking different room types from the standards stay, extended stay and all suite markets.

The principle behind target market analysis is that to capture guest according to income level and guest preference. The customers who want to spend weekends to fresh up there minds will prefer to stay at extended stay and accordingly.Question No. 7 Name the departments which are considered front of the house and which are back of the house?Answer:FRONT OF THE HOUSE BACK OF THE HOUSE

Food and beverage (Services)Rooms Division

Sales/Catering Concierge Front OfficeEngineering Human Resources

Accounts

Laundry Food and Beverage ( Production )

Question No. 8Write down the responsibilities of:- House Keeping Manager Front Desk Manager

Concierge ManagerAnswer: 1. House Keeping Manager

Ahousekeepingmanager has the job of directinghousekeepingstaff members in their jobs, ensuring their cleaning duties are accomplished in a timely and orderly manner. A housekeepingmanagermay supervise staff in a hotel, school, or hospital, ensuring that staff members clean rooms effectively and leave them reasonably comfortable and attractive for those who must use them. An individual in this job may hire or screen and train staff members, assign them tasks and inspect their work. He may also buy and maintain housekeepingequipment and supplies.2. Front Desk Manager

The Front Office Manager is responsible for all duties of the front desk operation which includes: staff training, inter-department communications, and staff scheduling. The Front Office Manager y scheduled front desk shift and must be available to work any shift as needed. The Front Office Manager usually works a regularly scheduled front desk shift and must be available to work any shift as needed. The Front Office Manager should possess strong communication skills and demonstrate leadership abilities.3. Concierge Manager:-The responsibilities of Concierge Manager are to help and manage the Concierge Team. Therole will be completely involved inensuring all guests are given a warm, friendly, courteous, informative and efficient service as well as to supervise/manage the Concierge operation (including Transport) ensuring that standards are maintained and maximum guest satisfaction is achieved. Conduct monthly Buggy driving tests for staff working in the hotel as per the requirement. Prepare the weekly duty roster ensuring optimum coverage, monthly attendance sheet and annual vacation plan for all Concierge staff as well as control their pending vacation and lieu days. Review SOP's regularly and update them in DMS as and when required.Question No. 11Why communication is so important in the front office?

Answer:

The communication is very important in the front office because front office is considered as the heart of hotel. The front office is connected with many interdepartmental lines of communication that exist. These lines are based on the direction each department has been given to provide hospitality in the form of clean rooms, properly operating equipment, safe environment, well-prepared food and beverages, efficient table service, professional organization and delivery of service for a scheduled function as well as accurate accounting of guest charges, and the like. These general objectives help department directors organize their operations and meet the overall goal of delivering professional hospitality. However, in reality, it requires constant effort to manage the details of employees, materials, procedures, and communication skills to produce acceptable products and services. The front office staff interacts with all departments of the hotel, including marketing and sales, housekeeping, food and beverage, banquet, controller, maintenance, security, and human resources. These departments view the front office as a communication liaison in providing guest services. Each of the departments has a unique communication link with the front office staff. Marketing and Sales DepartmentThe marketing and sales department relies on the front office to provide data on guest histories, details concerning each guests visit. Some of the information gathered is based on zip code, frequency of visits, corporate affiliation, special needs, and reservations for sleeping rooms. It is also the front offices job to make a good .impression on the public, to relay messages, and to meet the requests of guests who are using the hotel for meetings, seminars, and banquets. The guest history is a valuable resource for marketing and sales, which use the guest registration information to target marketing campaigns, develop promotions, prepare mailing labels, and select appropriate advertising media. The front office staff must make every effort to keep this database current and accurate. The process of completing the booking of a special function (such as a wedding reception, convention, or seminar) depends on the availability of sleeping rooms for guests. The marketing and sales executives may have to check the lists of available rooms three, six, or even twelve months in the future to be sure the hotel can accommodate the expected number of guests.Housekeeping DepartmentHousekeeping and the front office communicate with each other about housekeeping room status, the report on the availability of the rooms for immediate guest occupancy. Housekeeping room status can be described in the following communication terms:

Available Clean, or Readyroom is ready to be occupied Occupiedguest or guests are already occupying a room Stay overguest will not be checking out of a room on the current day Dirty or On-Changeguest has checked out of the room, but the housekeeping staff has not released the room for occupancy Out-of-Orderroom is not available for occupancy because of a mechanical malfunction Housekeeping and the front office also communicate on the details of potential house keeping count (a report of the number of guests registered in the hotel), security concerns, and requests for amenities (personal toiletry items such as shampoo, toothpaste, mouthwash, and electrical equipment). These issues are of immediate concern to the guest as well as to supervisors in the hotel.Question No. 12Explain the different guest billing option?Answer: There are basically three billing options that are Credit cards, Cash, Direct billing. The credit card is obtained at the time of booking and is used as a guarantee for some forms of reservations. Most hotel computer systems can check to ensure that each card is valid and that sufficient amount of credits is available on the card. This is called obtaining a card approval. Based on the number of nights needed on the reservation and the rate that it was booked at the computer can calculate the approval based simply on the anticipated revenue.

The second method of billing method is cash. Guests choosing not to use a credit card may provide cash deposit prior to assigning the guest room. For security and frauds concerns, the hotel will require the full room rate, taxes and what is referred to as anticipated usage amount this usage amount is the cash deposit required to cover estimated use of hotel facilities and services e.g. ( in-room movies in-room phones, room service, etc ). Guests wishing to sign these and other services to their room must provide additional cash. Guests choosing not to do this may face their phones and movies being turned off; room service will require a payment at the time of delivery, and so on. The third method of payment is less reliant on the front desk but is a valid method of payment. Direct billing allows an individual or group to pay for goods/ services incurred during a stay or function at a later date. Within a hotel, guests and groups are routinely extended credit. Each time a guest checks in with a credit card as a method of payment, the hotel provides goods/services under the assumptions that the credit card company will reimburse it at a later date.Question No. 13 What are basic responsibilities of the Front Office Manager?

Answer:The responsibilities of the Front Office Manager are listed below,

1. Maintain a high morale and productivity as well as good communication within the Front Office as well as between other departments.2. Develop colleagues, Team Leaders and Managers by delegating tasks and then empower and coach them making sure they achieve the desired results.3. Monitor the level of service provided by the department (i.e. by analyzing the Guest Satisfaction Reports) and constantly working on improving it through investigation, analysis and corrective action.4. Handle customer complaints and feedback.

5. Put measures in place to achieve or exceed the budgeted profit.6. Work in partnership with Reservations, Sales & Housekeeping to ensure guests needs are determined and met in regard to room requirements.7. Communicate to colleagues the importance of meeting customer as well as regulatory & statutory needs.8. Ensure the availability of resources in order to run a smooth operation.9. Ensure customer requirements are determined & met.10. Actively promote an awareness of customer requirements throughout the organization.11. Ensure that responsibilities and authorities are defined and communicated within the organization.12. Determine the necessary competence for colleagues and provide training or other actions to satisfy these needs.13. Maintain appropriate records of education, training, skills and experience.14. Provide constant coaching, counseling and discipline to colleagues to ensure their capability to meet the needs of the customer and the organization.15. Ensure manning and competence level of selected colleagues is sufficient for the department to meet the needs of the organization and customer.Question No. 14What do you know about? Rock Rate

Corporate Rate

Seasonal Rate

Advanced Purchased RateWalk in Rate

Package Rate

Answer:

ROCK RATE:

The rack rate is understood to be the highest published rate a hotel can charge for a specific room. Rack rates can differ between room types, configuration and designation. On the back of most hotel doors, a tariff sheet will be posted. This tariff sheet will list the rack rate for that particular room. In most cases, hotels must adhere to the rate structure posted on the tariff sheet. Certain states allow for exceptions during unusually high demand events, such as yearly sporting competitions. The hotels that can change their rack rates for these events must post that information on the in-rooms tariff sheets well in advance.CORPORATE RATE: This designation is designed to promote the corporate market segment. It is offered generally to any guest who knows to ask for it. Typically the corporate rate reflects a 10 t0 20 percent discount off of the rack rate. The corporate rate is widely accepted as the transient rate for most hotels. The target rate is simply an average rate goal a hotel sets to achieve for certain day or market segments. Both the group and transient room sales teams have their own targets rates, which they strive to reach. Understanding that some rates will be lower and some higher, the targets rate serves as the predetermined average goal.SEASONAL RATE:

Resorts and other location types that see a fluctuation in demand due to weather or the operation of a nearby attraction will vary their rates accordingly. Offering a different rate for in-season and out-of-season (off-season) allows the hotel to alter their rate structure to compensate for this cyclical demand. A seasonal rate designation can apply to other rates as well. In-season corporate rates for example, will definitely be higher than out-of-season corporate rates.WALK IN RATE:

This types of rate designation may vary from night to night. It is set each night by the front office or rooms manager based on the remaining unoccupied rooms in hotel. A walk-in is a hotel guest who arrives without a reservation. Literally walking in off the streets these guests can help fill any remaining hotel rooms with few remaining rooms, the walk-in rate may be set fairly high to maximize room revenue. An empty hotel may reduce the walk-in rate significantly.ADVACNED PURCHASED RATE: A relatively new trend in hotel rate structures, an advanced purchases rate offers a greater discount based on the number of days in advance it is booked. A 7-, 10- or 21- day advance purchase rate will have a corresponding lower price. How far in advance a hotel set its advance purchase rates depends largely on its booking cycle. As was reviewed previously, the individual booking cycle is the time between when an individual reservation is made and when an individual reservation is due to arrive. The booking cycle can be anywhere from a few days to few months. The transient demand is low outside the traditional booking cycle and increase drastically within it. A hotel wishing to lengthen that booking cycle (and hence getting more reservations booked farther in advance) will offer advance-booking rates with greater discount further out. The advance purchase rate concept was copied from the airline industry. Similarly, they are often nonrefundable and can carry a penalty for any change.PACKAGE RATE:A hotel package combines one or more hotel products or services to make the new entity more attractive called bundling, a hotel will package the room (and its rate) with another services or amenity. Often this entails pricing the package below the cost pf purchasing the items separately. Most traditional hotel package combine a room with a meal (e.g. breakfast). The perceived benefit to the guest can be monetary savings, convenience or both package rates can incorporate nonhotel items as well. Variation on the hotel package can consist of:1. MEAL PACKAGES: The most common are the American Plan (AP) which includes three meals a day with the room. (Not to be confused with all inclusive rates, which resorts often incorporate into their rate structure. An all-inclusive rate will bundle all meals, drinks, activities and gratuities into the room rate.) The Modified American Plan (MAP) includes two meals (typically breakfast and dinner) and the room. The Continental Plan (CP) includes continental breakfast and a room. The All-Suit Plan (SP), a relatively new package rate, combines the room with breakfast and cocktails in the evening. This rate is the standard plan for all-suite properties.3. VACATION PACKAGE: These bundle room rates and one or more of the following: airline tickets, transportation, tickets to local attraction include or shows and themed amenities. Themed amenities could include sunglasses and suntan lotion for a fun in the sun package. Honeymoon package could include champagne and strawberries with the room. A night on the town package might include a limousine ride and dinner. Shopping package may include discount coupon to local shop and a foot massage for the tired feet. A concept package includes a ticket to a show and the musical artists latest compact disk in addition to the room. Savvy hotels have even bundled their sleeping rooms with sought-after items. Tickets to a sold-out show that are bundled with a hotel room virtually guarantee a sale (whether the guest stays there or not).4. MEETING PACKAGE: These can be valuable for the busy meeting planner. A complete meeting package (or CMP) rate typically includes coffee breaks, lunches, dinners, and/or audiovisual equipment the cost of the meeting room and a sleeping room all bundled together. Some times referred to as a comprehensive meeting package, the CMP rate is often offered at conference centers with sleeping rooms. Variation of the meeting package may not always include the sleeping room. The DMP or Day Meeting Package includes everything the CMP rate did except for the sleeping room. Question No 15:

How you manage the account of the individual?

Answer: We manage the account of the individual by two accounts which are Guest Account and Master Account.

GUEST ACCOUNT:

The guest account is created at some point between the creation of a room reservation and the actual arrival of a hotel guest. Each individual guest account will track debits and credits incurred prior to and during a stay in Advanced deposit for the individuals are placed or posted to the guest account. Posting is the act of applying a debit or credit to an account. Room rates and outlet/ancillary charges are also posted to the guest account as they are incurred. The guest account must be created prior to check-in so that the front desk will be prepared for arrival.MASTER ACCCOUNT: The master account closely mirrors the individual guest account. The main difference is that a master account encompasses registration/accounting information for an entire group, not individual attendees. Individual guest charges related to a specific group based on billing arrangements (i.e. room/tax, catering, etc.) are routed to the master account as applicable. Routing is the process where credits/debits incurred by one account are manually or automatically transferred to another account.

Question No 15: What is shift closing?Answer:Shift closing is important duty for front office managers is to verify the individual banks of desk agents. Each desk agent will provide run a report from the PMS called an employee shift closing report. The employee shift closing report. The employee shift closing report outlines each transaction the agent completed within the guest ledger. All guest registration and guest accounting transactions are noted. Each employee is assigned an identification number within the PMS to track his/her transactions, regardless to computer terminals. The PMS shift closing will list exactly how cash, checks, credit card receipts, posting and paid outs were conducted by the agent based on that identification number. As was reviewed earlier, the most employees must submit tier banks to the general cashier for deposit fir audit. Money (cash, checks, credit card receipts) collected in the excess of the bank balance are dropped to the general cashier for deposit. Because of the amount of money some agents collect in a day, the managers should assist in verifying this dropped amount.