Unit IV. HOTEL ORGANIZATIONS & FUNCTIONAL
DEPARTMENTS
GENERAL MANAGEMENT
ROOMS DIVISION
FRONT OFFICE DEPARTMENT
Front Desk
Reservations
Bell Service
Telephone Exchange
Airport Transport
Concierge
Functions of a Hotel
•
•
•
•
•
Provide lodging accommodations
Revenue centers
Cost centers
Serve and enrich society
Create profit for the owners
Executive Committee
• Makes all the major decisions affecting
the hotel
• Made up of key associates who head
major departments:
–
–
–
–
–
–
–
General Manager
Director of Human Resources
Director of Food & Beverage
Director of Rooms Division
Director of Marketing & Sales
Director of Engineering
Director of Accounting
Role of a General Manager
• Provide owners with a reasonable
return on investment
• Keep guests and employees happy
• Responsible for performance of
hotel and employees
• Accountable for the hotel’s level of
profitability
Figure 4-1 Executive Committee
Rooms Division
• Departments:
–Front office
–Reservations
–Housekeeping
–Concierge
–Guest services
–Security
–Communications
Figure 4-3 Guest Cycle
ROOMS DIVISION MANAGER
FRONT OFFICE
MANAGER
SECURITY/ LOSS
PREVENTION
EXECUTIVE
HOUSEKEEPER
FRONT OFFICE MANAGER
FRONT
DESK
SUPERVISOR
RESERVATIONS
SUPERVISOR
BELL
CAPTAIN
Reservations
Clerk
Doorman
CHIEF
TELEPHONE
EXCHANGE
CHIEF
AIRPORT/
TRANSPORT
ASSISTANCE
TelePhone
Operator
Airport/
Transport
Representative
CHIEF
CONCIERGE/
GUEST
RELATIONS
Desk/Info
Clerk
AM/PM
Swing Shifts
Night Audit
Bellboy
Accounting
Concierge
Clerk
Business
Center
Clerk
EXECUTIVE HOUSEKEEPER
ASSISTANT EXECUTIVE
HOUSEKEEPER
FLOOR
HOUSEKEEPER
HOUSEKEEPERS
CONTRACT
CLEANING
LAUNDRY
MANAGER
LAUNDRY
STAFF
HOUSEMEN
UNIFORM
SUPERVISORS
THE FRONT OFFICE DEPARTMENT
The Rooms Division consist of the
following department:
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12
THE FRONT OFFICE DEPARTMENT
3 MAIN FUNCTION
1. To sell rooms
2. To maintain balanced guest
accounts
3. To offer services and meet guest
expectation
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13
1. To sell rooms
 sales/reservation staff make
up room sales until the
evening before the guest
arrival. At 6:00 pm, when
the reservations
department closes, all the
expected arrivals and
available rooms are then
handed over the front desk
P.M. shift. All reservations
after 6:00 pm is handled by
the front desk
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• Up-selling occurs
when the guest service
agent/front desk clerk
suggestively sells the
features of a larger
room, a higher floor, or
perhaps a better view.
• Down-selling occurs
when an agent offers a
room with a higher rate
first and offers the less
expensive next.
14
1. To sell rooms
What is Revenue Management?
Revenue management is
used to maximize room
revenue at the hotel
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Revenue and Yield
Management
• Revenue management is used to maximize room revenue
at the hotel
– Based on supply (# of available rooms) and demand (# of people
needing a room)
DEMAND
SUPPLY
ROOM RATES
DEMAND
SUPPLY
ROOM RATES
Also:
> If a guest books and sends in a deposit in advance, guest will enjoy
a room rate discount
• Yield management allocates the right type of
room to the right guest at the right price
– Examines demand for rooms over a period
of a few years and determines the demand
for a particular room each night
Types of Room Rates Offered
by Hotels
1. Rack Rate
The highest room rate charged by the hotel, rate given to a guest that does
not fall in any category.
Used a benchmark quotation of a hotel’s room rate.
2. Corporate Rate
Room rates offered to business people staying in the hotel. This category
can also be sub-categorize to business people who are frequent quest
3. Commercial Rate
Room rates for business people who represent a company and have
infrequent or sporadic patterns of travel. A card is issued, which is validated
with each visit. After a specified number of visits, the guest is awarded a
free room night.
Types of Room Rates Offered by Hotels
4. Group Rate
Room rates offered to large group of people
visiting the hotel for a common reason. This is
usually negotiated by the sales dept. with the
travelling agency
5. Family Rate
Room rates offered to encourage visits by families with
children, are offered during seasonal or promotional
times. Ex. Children under a certain age are not charged.
THREE MAIN FUNCTION OF
THE FRONT OFFICE
II. To maintain balanced guest accounts
This begins with advance deposits, opening the
guest folio (account), and posting all charges from the
various departments.
Most hotels have a property management system
(PMS) and point-of-sale (POS) terminals, which are
online to the front office.
Property Management
Systems
• Center of information processing
• Relates to front and back office activities
• Examples of applications:
– Room management module – keeps the front office and
housekeeping informed about the status of rooms
– Guest accounting module – increases the hotel’s control over
guests accounts, makes it easily available anytime.
– Check in services module – program used by front desk clerk
during check in. Makes it easier to store guest information.
– Information sharing
– Internet access
How Hotels Count and Measure
• Occupancy Rate
 Occupancy rate measures the economic health
of the hotel industry.
 It reflects both supply and demand
 It analyses the relationship (or ratio) between
the number of rooms sold (demand) and the
number of rooms available (supply)
- FORMULA:
- Occupancy rate =
Number of rooms sold
___________________________
number of rooms available
for sale
How the Number of Rooms Available
for Sale is Estimated
YEAR
Rooms available at
the start of the year
Plus rooms
completed
Total
Less rooms removed
Rooms Available
(next year start)
2005
4,355
2006
4,400
2007
4,500
2008
4,600
2009
4,725
70
110
130
150
95
4,425
4,510
4,630
4,750
4,820
25
10
30
25
20
4,400
4,500
4,600
4,725
4,800
How the Number of Rooms Available
for Sale is Estimated
YEAR
Rooms available at
the start of the year
Plus rooms
completed
Total
Less rooms removed
Rooms Available
(next year start)
2005
1,500
2006
2007
2008
2009
50
50
50
50
50
20
20
20
20
20
Solving for Occupancy Rate
• Sample Problem:
• Hotel Sofitelia has a total of1,500 sleeping
rooms, 90 rooms are under renovation. Last
night, April 4, 2011, 600 rooms was occupied
by Korean tourists, 200 rooms was occupied
by Pfizer Company and 80 rooms was
occupied by Foreign delegates. What is the
occupancy rate last night?
How Hotels Count and Measure
• Sales Per Occupied Room (Average Daily Rate)
- the quality of business being done is measured by
the amount received for each room sold.
- Another way to measure the health of the hotel
business
- FORMULA:
room sales/revenue
- Sales Per Occupied Room = _____________________
number of rooms sold
Solving for Sales Per Occupied Room
(ADR)
• Sample Problem
• Hotel California has a total number of room of
2,500. Yesterday, April 4, 2011, the following
rooms were occupied:
200 standard room at $80/night
400 de luxe room at $120/night
150 executive suite at $210/night
What is the Sales Per Occupied Room yesterday?
How Hotels Count and Measure
• RevPar (Revenue Per Available Room)
 Used to be called average rate per available room
 Analyses the relationship between room revenue against
number of rooms available for sale.
 Usually follows Yield Management (supply and demand)
 Some hotels uses RevPar as the basis of manager’s
salaries and bonuses.
- FORMULA:
-
room sales/revenue
RevPar = _____________________
number of rooms available for sale
Solving for RevPar
• Sample Problem
• Hotel California has a total number of room of
2,500.Yesterday, April 4, 2011, the following
rooms were occupied:
200 standard room at $80/night
400 de luxe room at $120/night
150 executive suite at $210/night
What is the Revenue Per Available Room (RevPar)
yesterday?
Analysis of Hotel Statistics
How is business doing? What trends can we analyze from
the given data?
Year
2005
Occupancy Rate x Ave. Daily Rate = RevPar
%
$
$
68.7
94.57
64.97
2006
70.1
95.65
67.05
2007
69.6
95.92
66.76
2008
68.9
97.31
67.05
2009
68.1
97.75
66.57
2010
66.8
98.15
65.56
Approxiamte
Mean
68.8
95.60
65.77
How Hotels Count and Measure
• Break-Even Point
 To break-even is to have profit nor loss
 At the break-even point, inflows from revenues
exactly match outflow for costs
 Break-even point are important to assess because
there are no profit until that point is reached.
 Each dollar below break-even point is used to pay
expenses, each dollar after the break-even point
may be considered as profit.
Seatwork
• Hotel Sofitelia has a total sleeping rooms of 1,400. 10 rooms is
under construction to be converted into offices, 30 rooms are
under maintenance. Yesterday, 500 deluxe rooms are occupied by
foreign delegates, 80 executive suites rooms are occupied by
Korean tourists, 250 standard rooms are occupied by exchange
students on tour. These exchange students are given a group rate of
20% less from the rack rate.
• The following are the room rates:
• Standard room - $ 110
• Deluxe roomm - $ 160
• Executice suite - $ 210
• Compute for: occupancy rate, ADR, RevPar
VARIOUS UNITS AT THE FRONT OFFICE
1. FRONT DESK

Looks after the registration of hotel
guests and serves as communication
and information center

The hub or nerve center of the hotel

Makes a first impression on the guest
and one that the guest relies on
throughout his or her stay for
information and service
FRONT OFFICE MANAGER
BASIC FUNCTION: Plans, Organizes, directs and controls all areas of Front office
operations
SPECIFIC DUTIES:
1. Prepares forecast of room occupancy
2. Prepares budget for front office operations
3. Monitors the performance of Front Office staff and calls their attention for
whatever deficiencies noted
4. Personally meets and attends to VIP’s and other important events
5. Attends to guest’s complains, inquiries and requests
FRONT DESK SUPERVISOR
BASI FUNCTION: Oversees Front Desk Operations, particularly the handling of
registration of guests.
SPECIFIC DUTIES:
1. Gives instructions to the desk clerk regarding arrangement for bookings,
blocking of guestrooms and other front desk activities.
2. Assists the desk clerk in attending to the registration of house guests
3. Checks the daily arrival list and sees to it that the rooms assigned to those on
the list are made up and set up as indicated in the instructions of the
reservations clerk
4. Attends to the registration and reception of VIP’s and other guests with special
booking arrangement
5. Coordinates with the Housekeeping Office for the preparation of check-out
rooms for immediate occupancy
FRONT DESK CLERK
BASIC FUNCTIONS: Attends to the registration of guests and provides
information assistance.
SPECIFIC DUTIES:
1. Allocates rooms for incoming arrivals, check inns, special request rooms and
VIPs; checks whether requirements are prepared prior to arrival
2. Updates data in the room status indicator or room status chart
3. Prepares guest folio of guest who are about to check out
4. Coordinates with the housekeeping unit for the reconciliation of room
status, in executing room transfer and preparing special amenities for VIPs
5. Performs the duty of the telephone operator and front office cashier if not
available
List provides the facilities to develop custom Room inspection lists for each type of room in
your hotel. The check lists are printed with the work order for each room when the
maintenance tasks for that room are scheduled. The check list itself can be as brief or as
detailed as your situation requires.
RESERVATIONS SUPERVISOR
BASIC FUNCTION: Directs and oversees operations pertaining to room sales and
reservations
SPECIFIC DUTIES:
1. Coordinates with superior regarding room rates, discounts, etc.
2. Plans, organizes and implements marketing strategies
3. Gives instructions to reservations clerk regarding booking arrangement
4. Coordinates with the Housekeeping Supervisor and Front Office regarding
room status to prevent double bookings
5. Double checks with Front Desk regarding the blocking of rooms with
reservations
VARIOUS UNITS AT THE FRONT OFFICE
1. FRONT DESK

Looks after the registration of hotel
guests and serves as communication
and information center

The hub or nerve center of the hotel

Makes a first impression on the guest
and one that the guest relies on
throughout his or her stay for
information and service
ROOM STATUS INDICATOR
o OD – Occupied and Dirty
o CO – Check Out
o OO - Out of Order
o DND – Do Not Disturb
o VR – Vacant and Ready
o VC – Vacant and Clean
o VD – Vacant and Dirty
o OR – Occupied and Ready
o OC – Occupied and Clean
VARIOUS UNITS AT THE FRONT OFFICE
2. RESERVATIONS SECTION
 Handles inquiries and reservations for
room bookings
 Contact may be by telephone so
exception telephone manners and
telemarketing skills and required
 Generally works from 8am-6pm
RESERVATION CLERK
BASIC FUNCTION: Attends to room sales and reservations
SPECIFIC DUTIES:
1. Responds to inquiries on room rates and bookings
2. Receives, processes and confirm room reservations.
3. Files reservations cards according to arrival dates and makes an Arrival
List a day prior to arrival date
4. Goes on sales “blitz” and implements marketing strategies
5. Makes follow up of clients accounts as well as “no show” bookings
VARIOUS UNITS AT THE FRONT OFFICE
3. BELL SERVICE
 Also called as the Guest Service
Department and Uniformed Staff
 Headed by Guest Services Manager
who may also happen to be the bell
captain
 Responsible in escorting guests during
check in and check out
 Does errands for the Front Desk
DOORMAN
BASIC FUNCTION: Responsible in escorting guests during check in and check out.
Does errands for the Front Desk
SPECIFIC DUTIES:
• Hotel’s unofficial greeters, dressed in impressive uniforms.
• Greet Guests at the front door of the Hotel
• Assist in opening /closing automobile doors, removing luggage from the
trunk.
• Hailing taxis
• Keeping the hotel entrance clear of vehicles.
• Giving guests information about the hotel and the local area in a courteous
and friendly way
BELLMAN/BELLBOY
BASIC FUNCTION: Responsible in escorting guests during check in and check out.
Does errands for the Front Desk
SPECIFIC DUTIES:
 Explains the services of the hotel and points out the features of the room
 A bellhop, also bellboy or bellman, is a hotel porter, who helps patrons with
their luggage while checking in or out. Bellhops often wear a uniform
VARIOUS UNITS AT THE FRONT OFFICE
4. TELEPHONE EXCHANGE
 Handles and operates the
switchboard or the telephone
Communication System.
TELEPHONE OPERATOR
BASIC FUNCTION: Attends to all incoming and outgoing calls in the Telephone
Exchange Section
SPECIFIC DUTIES:
1.
2.
3.
4.
5.
Answering all incoming in accordance with standard procedures
Receives and disseminates messages received by phone
Transfer calls to guests after screening their calls
Attends to wake up call requests of guests
Receives updates of events in the hotel for proper dissemination when an
inquiry is recieved
OLD SCHOOL
SWITCHBOARD!!!
NEW TELEPHONE
COMMUNICATING SYSTEM
VARIOUS UNITS AT THE FRONT OFFICE
5. CONCIERGE/GUEST
RELATIONS
ASSISTANCE
 A uniformed employee of the
hotel who has his or her own
separate desk in the lobby
 Attends to various forms of guest
request
CONCIERGE OFFICER
BASIC FUNCTION: Attends to any request for guest assistance especially for VIP
SPECIFIC DUTIES:
1. Coordinates with the front desk regarding arrangement for the arrival of
VIPs and special groups with special arrangement
2. Personally welcomes and recieves, especially VIPs
3. Maintains logbook and record of VIP arrivals
4. Attend to guest with special problems and concerns like lost passport, lost
ticket, airline booking, tour and travel assistance
5. Assists the guest with a broad range of services such as tickets to the
hottest shows in town s, restaurant reservations, attractions, airlines tickets
and reconfirmation of flights, handle business affairs
VARIOUS UNITS AT THE FRONT OFFICE
8. AIRPORT / TRANSFER
ASSISTANCE

HANDLES THE TRANSPORT OF
GUEST TO AND FROM THE AIRPORT
OR OTHER TRANSPORT TERMINAL
AIRPORT/TRANSPORT REPRESENTATIVE
BASIC FUNCTION: Transports guests to and from the airport/other terminal; sells
hotel services to prospective patrons at the airport.
SPECIFIC DUTIES:
1. Checks availability and conditions of vehicles needed to transport guests
2. Looks after the preventive and corrective maintenance of vehicles
3. Fetches arriving guests, welcomes them and brings them to the hotel
4. Coordinates with tour coordinator
VARIOUS UNITS AT THE FRONT OFFICE
9. BUSINESS CENTER
 Handles special services like
computer service, fax, email,
photocopy, souvenir items, etc.
SEQUENCE OF FRONT OFFICE SERVICE
Recieving/processing and documenting guest’s reservations
Welcoming/greeting the guest, opening the door of his vehicle,
unloading the luggages
Attending to guest registration
Settlement of guest bill
Escorting guest to his room, carrying his luggage, explaining room
facilities
Updating room status, preparing guest folio
Attending to all service request of guest, extending various forms of
assistance like wake up calls, delivery of messages, etc
Reservations
Clerk
Doorman/bellboy
Desk Clerk
Front Office
Cashier
Bellboy
Desk Clerk/Night
Auditor
Concierge
Telephone Oprtr
Desk Clerk
SEQUENCE OF FRONT OFFICE SERVICE
Cont…
Updating guest account, preparing billing statement; settlement of
balance
Cashier/Night
Auditor
Assisting guest for check out
Bellboy/
Housekeeping
Bill settlement, giving clearance for check out
Bidding goodbye, thanking guest for patronage
Desk Clerk/
Cashier
All staff