STUDY MATERIAL
COURSE
: B.Sc (Cs & Hm)
SEMESTER
: III
SUBJECT
: FRONT OFFICE OPERATIONS
UNIT
:I
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SYLLABUS
Introduction to the Hotel Industry : Classification of Hotels as per location, size,
clientele, length of stay, heritage hotels, all suite hotels, time share, condominiums,
casino hotels, convention hotels, conference hotels, star hotels.
The accommodation product – Type of guest room – as per number and size of beds,
décor, room size and view, executive floor, presidential suites.
Rates – Room rate, rack rate, corporate rate, commercial rate, airline rate, group rate,
children rate, package plan rate, back to back series rate, government rate, weekend
rate, half-day charges.
Meal Plans – EP, CP, AP, MAP
Type of Hotel guests – Pleasure travelers, DFIT, FFIT, GIT, Special intrest tours,
incentive tours, back to back series tours, business travelers, CVGR, convention and
conference guests.
The Front Office Department – Functions and components of front office
department. Organizational chart of a front office department (Large, Medium and
Small). Attributes of front office staff
INTRODUCTION TO HOTEL INDUSTRY:
Hospitality is treating people like you would want to be treated when you are
traveling. In other words, it means making a tourist feel totally welcome not only as
your guest, but also as the guest of the complete family of the hotel. Hospitality is
genuine smiling face.
Hospitality can be termed as a deliberate, planned and sustained effort to
establish and maintain mutual understanding between an organization and the public
ie., the business of making and keeping friends, and promoting an atmosphere of
better understanding. As per the oxford dictionary hospitality is defined as “reception
and entertainment of guests, visitors, or strangers with liberality and good will”. The
word hospitality is derived from the Latin word “Hospitalitias”
As per the hospitality activity is being attentive, alert, and cordial with the guest
without facing yourself and your ideas on him, and at the same time being very polite
and cooperative. All those working in hospitality industry have one common objective
–“Creating an image of friendly reception and treatment” for guests visitors.
Origin of hotel industry:
The hotel industry is, perhaps, one of the oldest commercial endeavours in the
world.The first inns go back to the sixth century B.C. and were the products of the
urge to travel, spurred by the invention of the “wheel”. The earliest inns were
ventures by husband and wife teams who provided large halls for travelers to make
their own beds and sleep on the floor. They also provided modest wholesome food,
thirst-quenchers like wine, port, ale, etc. and stabling facilities. The hosts’ wife or his
wench provided entertainment and recreation. The husband and wife team and his
family provided the entire cooking service, and recreation.
These conditions prevailed for several hundred years. The advent of the industrial
revolution in England brought ideas and progress in the business of innkeeping. The
development of railways and steamships made traveling more prominent. The
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industrial revolution also changed travel from social or government travel to business
travel. There was a nead for quick and clean service.
The lead in hotelkeeping was taken by the emerging nations of Erope, especially
Switzerland. It was in Europe that the birth of an organized hotel industry took place
in the shape of shalets and small hotels which provided a variety of services and
where mainly patronized by the aristocracy of the day.
In early England, public houses were normally called “inns” or “taverns”.
Normally, the name “inn” was reserved for the finer establishment catering to the
nobility and clergy. The houses frequented by the common man were known as
“taverns”. In france, a similar distinction was made with the finer establishments
known as “hotelleries” and the less pretentious houses called “cabarets”. The word
“hostel” was used after the Norman invasions derived from “host” .The “hostelers”
was the head of the hostel whereas the same position was called the “innkeeper” in
England. The word “hotel” was used in England in about 1760 after a passage of over
80 years. In America lodging houses were called “inn” or “coffee house”.
The real growth of the modern hotel industry yook place in the U S A
beginning with the opening of city Hotel in New York in 1794.This was the first
building specially erected for hotel purposes. This eventually led to great competition
between different cities and resulted in frenzied hotel buildings activity. Some of the
finest hotels of the USA were build in this era but the real boom in hotel building
came in the early 20th centuary.This period also saw the the beginning of chain
operations under the guidance of E.M.Statler .It involved big investments ,big profits
and trained professionals to manage the business .
The depression in 1930 had a disastrous effect on the hotel industry .It was felt
that the hotel would never recover ; but the outbreak of world war – ii bought a
tremendous upserge This prosperity continued through the war years in to the
fifties when two new concepts emerged 1. Motels, 2. International Chain Operations.
CLASSIFICATION OF HOTELS:
Hotels may be categorized depending up on the factors such as:
1. Locations
2. Number of rooms
3. Type of plan room rates that are quoted
4. Type of clientele
5. Length of guest stay
6. Facilities that it offers
Categorization by locations
Downtown Hotel: It is located in the heart of the city within a short distance of the
center, shopping areas, theatres, public buildings, etc. rates in these hotels are
normally high due to their location advantage and also due to the fact that the rate of
return on investment (ROI) computed on these capital intensive hotels is substantially
high. Normally business clientele prefer such hotels.
Suburban Hotel:
Located in the suburbs, it has an advantage of quieter surroundings. Rates
quoted are moderate and low. Such hotels are ideal for budget travelers and also
organizations who find the quiet setting ideal for conferences, seminars, educational
programmers, etc.
Resort Hotel:
This type of hotel located in the hills or art beaches. It is mainly patronized by
vacationers. Basic facilities are provided and the rates offered are often on American
plan, i.e. Room plus all meals included
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Inns:
They are smaller in size with modest board and lodging facilities. They may be
located anywhere within or outside the city. They are the forerunners of the modern
motel.
Categorization by number of rooms:
The capacity of a hotel in terms of the number of rooms is a yardstick for the
categorization at the hotel by “size”. Hotels with 25 rooms and less may be termed
“small”. Those with 25 to 100 may be called “medium”. Those with 101 -300 are
called “Large”. Hotel with over 300 rooms which are very common these days may
be termed as “very large”.
Categorization by type of plan:
Hotels are categorized according to the type of plan which they offer. We thus
hotels on European plan, American plan, Continental plan and Modified American
plan. These plans are decided by the hotel on a variety of factors including the type of
clientele, length of stay and average customer preference.
Categorization by type of clientele:
We often hear in hotel parlance, the terms such as group hotel, commercial
hotel, family hotel, etc. this categorization is based on the type of patronage. Group
hotels cater to groups and thus their rates would be on American plan. Commercial
hotels cater to mostly businessman and are on European plan. A family hotel would
be again be on American plan. Such hotels are normally situated in resort cities.
Categorization by length of guest stay:
This categorization of hotels further be divided into three sub-groups: (1)
Transient hotels where a guest can register for a day or even less (airport hotels could
be termed thus) (2) Residential hotels where guest stay for a minimum period of one
month the hotel signed a detailed lease with the customer (3) Semi-residential hotels
which incorporate the features of both the transient and residential hotels.
Casino Hotels:
The focus in this type of hotels is on gambling and provision of casino. Casino
hotels are not seen in India but are very popular in America, particularly in Las Vegas
– Neveda. Top artistes come to hotel and give their life performances and entertain
the guests. These are high class hotels with luxurious rooms and other top class
services and amenities. Casino hotels are known primarily for the gaming facilities
they offer despite the fact that the guestrooms and food and beverage operations may
be luxurious. Casino hotels attract guests by promoting gaming and headliner
entertainment. They provide specialty restaurants and extravagant floor shows and
may offer charter flights for guests planning to use the casino facilities.
Target markets are distinctly defined groups of people which the hotel hopes to
attract or retain as its guests. Based on their target markets hotels may be classified as
commercial hotels, casino hotels, resorts etc.
Commercial hotels: (Star Hotels)
Target Market
: Mostly corporate business travelers. Tour groups, individual
tourists and small conference groups also patronize these hotels.
Location
: Located in the heart of the city or business district.
Reservation lead time: 2-3 days to a maximum of a week
Basis of charging room tariff: 12 noon check-in and check-out system
Duration of guest stay: usually not more than 2 - 3 days
Facilities provided: Most commercial hotels have conference rooms, guestroom
suites and banquet meal service. They may offer uniformed services as well.
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Swimming pools, health clubs, tennis courts, saunas and jogging areas may also be
provided.
Resort Hotels
Resort hotels offer breathtaking scenery and a leisurely and relaxed atmosphere that
sets the apart from the other types of hotels.
Target Market
: Holiday makers, vacationers
Location
: In the mountains, on an island, or in some other exotic location
away from crowded areas.
Reservation lead time: varies from a few weeks to even unto a year in advance
Basis of charging room tariff: Most of these hotels use the 12 noon check-in and
check out system whilst some prefer the 24 hrs check in and check out system
Duration of guest stay: Usually 1-2 weeks.
Facilities provided: The recreational facilities provided are extensive. Most resort
hotels provide extensive food and beverage services. They also provide special
activities for guests such as golf, horseback riding, nature hikes etc.
Airport Hotels
Target Market
: Business clientele, airline passengers with overnight travel
layovers or canceled flights, and airline personnel.
Location
: In proximity to airports
Reservation lead time: Most guests are walk ins and hence the lead time may be 1-2
days to zero.
Basis of charging room tariff: These hotels are ideal candidates for the 24 hrs, check
in and check out system but most prefer using the 12 noon check in and check out
system as it is more lucrative.
Duration of guest stay: Ranges from a few hours to a day or two.
Facilities provided: The courtesy van facility between the hotel and airport is a facility
seen in almost all airport hotels. Conference rooms are a feature added to attract those
guests who travel to a meeting by air and wish to minimize ground travel. In the
Indian context, most airport hotels offer services similar to that of commercial hotels
and are directly in competition with them.
Bed and Breakfast Hotels
B & B hotels range from houses with a few rooms to small commercial buildings with
20 to 30 guestrooms.
Target Market: Budget conscious travelers looking for clean and comfortable
accommodation
Location: There is no specific characteristic as regards location
Reservation lead time: Mostly walk in guests
Basis of charging room tariff: mostly use the 12 noon check in check out system
Duration of guest stay: Mostly overnight stay
Facilities provided: The owner usually lives on the premises and is responsible for
serving breakfast to the guests. Meeting rooms, laundry, recreational facilities etc are
not offered. They offer lodging and limited food service and are hence able to price
their rooms at highly competitive rates.
Residential Hotels
Residential hotels provide long-term or permanent accommodations for mainly single
people in urban or suburban areas
Target Market: Mainly single people looking for long term accommodation.
Location: They are generally located in suburban areas.
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Reservation lead time: May be a month or even more since the stay is planned well in
advance.
Basis of charging room tariff: The charges for accommodation and other services
contracted are usually settled on a monthly basis.
Duration of guest stay: 6 months to a year or more.
Facilities provided: The accommodation usually consists of a sitting room, bedroom
and small kitchenette. Residents may choose to contract for some or all of the services
provide to guests in a commercial hotel. A residential hotel may provide daily
housekeeping, telephone, front desk, and uniformed services. A restaurant and lounge
may
All Suite Hotels
Target Market: People who are relocating, frequent travelers who do not like the idea
of staying in a single room, and vacationers who prefer the privacy and convenience
of non-standard hotel accommodations for extended stays. Professionals such as
accountants, lawyers, and executives find suite hotels particularly attractive since they
can work or entertain in an area besides the bedroom.
Location: All suite hotels are located in the heart of the city or business district.
Reservation lead time: similar to that of commercial hotels.
Basis of charging room tariff: 12 noon check in and check out basis.
Duration of guest stay: longer than that of commercial hotels but most often less than
that of residential hotels.
Facilities provided: They feature guestrooms with a living room or parlor area and a
separate bedroom. Some guest suites include a compact kitchenette with a refrigerator
and in-room beverage service. Some suite hotels offer complimentary evening
receptions, breakfasts, or evening hors d’oeuvre service. Suite hotels generally have
fewer and more limited public areas and guest services than other hotels.
Conference Centers
Conference centers are specifically designed to handle group meetings. Most fullservice conference centers offer overnight accommodations. Because meetings are
their focal point, conference centers typically place great emphasis on providing all the
services and equipment necessary to ensure a meeting’s success-for example, technical
assistance, high-quality audiovisual/equipment, business service centers etc.
Conference centers are often located outside metropolitan areas.
They provide extensive leisure facilities: golf courses, indoor and outdoor
swimming pools, fitness centers, spas, jogging and hiking trails, and more.
Conference centers typically charge meeting planners a single price, which includes
attendee guestrooms, meals, meeting rooms, audiovisual equipment, and other related
services. Guest amenities may not be as plentiful at conference centers since these centers focus more
on fulfilling the needs of meeting planners and organizers than on meeting the needs of program
attendees.
Convention Hotels
Convention hotels have a sufficient number of guestrooms to house all
the attendees of most conventions. Most of these properties house dining facilities
ranging from self-serve restaurants or cafeterias to elaborate formal dining rooms.
Convention hotels are primarily directed toward business travelers. A full line of
business services are generally available, including teleconferencing, secretarial
assistance, language translation, and facsimile machine. International examples of
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convention hotels are the Opryland Hotel in Nashville; and the Hyatt Regency in
Chicago.
Convention hotels usually attract the convention market for state, regional, national,
and international associations. They also attract regional, national, or international
corporate meetings. While most hotels book the majority of their group business
within two years of the meeting date, it is not uncommon for convention hotels to
book their business up to 10 years in advance. In some cases, convention hotels do
not have all the facilities needed, but are affiliated with a local convention center.
Convention centers not only have space for meetings and conferences, they also have
more than adequate space for exhibits and booths. Convention centers work with
nearby hotels to assure guestrooms are available for convention attendees. Hotels, in
turn, sell the convention center to appropriate markets to garner rooms business.
Time share Hotels
Time share properties involve individuals who purchase the ownership of
accommodations for a specific period of time- usually one or two weeks a year. These
owners then occupy the unit- usually a condominium (A unit consisting of a living
room, dining area, kitchen, bathroom and one or more bedrooms) - during that time.
Owners may also have the unit rented out by the management company which
operates the hotel. These hotels are very popular in resort areas. Time share owners
receive revenue from the rental of their units and pay the management company a fee
for advertising, rental, housekeeping and maintenance services.
Condominium Hotels
The difference between the time - share and condominium hotels lies in the type of
ownership. Units in condominium hotels (A condominium is a unit consisting of a
living room, dining area, kitchen, bathroom and one or more bedrooms) only have
one owner instead of multiple owners. In a condominium hotel, an owner informs the
management company of when he or she wants to occupy the unit. The management
company is free to rent out the unit of the remainder of the year. Condominium
owners receive revenue from the rental of their units and pay the management
company a fee for advertising, rental, housekeeping and maintenance services.
The Accommodation product
The sale of rooms is one of the main products to be provided by a hotel; it is also very
often the principal source of hotel revenue. It must be noted, however, that the
accommodation product consists of more than a room with a bed. A guest purchasing
accommodation also receives other facilities and benefits, such as ambience, décor
and security. While all hotels provide accommodation services for their guests, the
type of facilities and benefits associated with that service can often differ greatly, even
within the same hotel. The Accommodation product therefore does not just consist
of a guest-room – single or double – but also the additional facilities and services
which are applicable to that room. For example, does the room have a sea view? Is
there a mini-bar? Are there in-house movies? Can a guest dial direct from the room?
Is there room service? All these services, facilities and amenities may be included in
the accommodation product of a hotel.
Since the accommodation product normally cannot be examined before purchase,
guests are reliant upon the front office staff to be able to describe the product to them
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accurately. It is, therefore, particularly important for the front office staff to have full
knowledge of what is included in the accommodation package of a hotel.
Types of Guest-Rooms
Hotel guest-rooms can be classified in a number of ways. For example, one way is
according to the number of size of beds in the room; others are by the décor, the
room size or the view. In addition, some hotels may even offer special types of
accommodation for particular types of guest, e.g. the executive floor for business
people and presidential suites for VIPs.
Number and size of beds per room
Guest-rooms can be classified according to the number and size of beds in a room.
These are commonly known as; Single rooms (With a single bed), Twin rooms (With
two single beds), Double rooms (With one large bed), Suites, i.e. two distinct areas,
one for sleeping and one a lounge area
Number and sizes of beds
Types of No.of beds Size of bed No.of people
room
per room
per room
Single
1
3’0”
1
Twin
2
3’0”
2
Double 1
4’6”
2
Queen
1
5’0”
2
King
1
6’0”
2
Suites differ considerably from one hotel to another and from one suite to another in
the same hotel. Sometimes the lounges and bedrooms may be separated, whereas in
the case of studio suites and bedroom is or partitioned from the living area. Very
often suites have a king-size double bed,
Décor, room size and view
Hotel guest-rooms amy be grouped into standard, superior or deluxe rooms according
to their décor, i.e. the furniture and fittings, as well as by size and situation. Table
below is an example of how such a categorization of guest-room may be made.
Categories of guest-rooms
Type
Size (sq m)
View
Décor
Standard single
23.5
Town view
Pine furniture
Superior single
23.5
Sea view
Pine furniture
Deluxe single
25.5
Sea view
Rosewood
furniture
Deluxe double
28.6
Sea view
Rosewood
furniture
Suite
105.9
Sea view
Antique furniture
Some hotels have guest-rooms which are connected to each other. This means that
two or more rooms are joined together by private inter-leading door, which permits
access between the rooms without passing through a public corridor. These rooms are
particularly popular with families. The studio room is another type of guest-room; this
type of room has beds which fold away into the wall so that the room can be used for
meetings during the day.
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Executive floors and presidential suites
In some hotels, special types of accommodation may be provided for a particular type
of customer. For instance, if the market of a hotel is mainly business travelers, then a
section of the accommodation may be used exclusively as executive floors. The
standard and style of the rooms and the facilities offered, as well as services provided,
are suited to the special needs of the business clientele. For example, executive floors
may provide separate check-in desks, meeting-room space and in room fax facilities,
cellular phones and sometimes separate lounge and bar areas.
To accommodate the wishes of the growing numbers of people who do not smoke,
many hotels now have non-smoking floors; this prevents furnishings from absorbing
any tobacco smells, causing a staleness of odour in the room. Similarly, to look after
the special needs of female executives, numbers of hotels have women-only rooms.
The ‘presidential’ type of suite is a special form of accommodation geared to the
needs of VIPs and wealthy people. It is usual for the rooms to be very much larger
than a normal room. The furnishing and fixtures are both exotic and expensive and
the services offered are often unique to that suite of rooms.
Room Rates
The room rate refers to the price at which a hotel sells its rooms. The type of
accommodation, size, décor, and view from the room will influence the room rate
charged to the guest. As the guest’s needs for accommodation become more
sophisticated, there is an increase in the variation of room rates. Many hotels have
room rate tariffs which fluctuate according to the class of business, time of year, and
services included. Some commonly used room tariffs are illustrated in the table below.
Standard room rack rate
The standard rate for the room, with
no meals, discounts or reductions
Corporate rate
The standard rate charged for
executive personnel from businesses
and industrial corporations, whi are
regular guests
Commercial rate
The rate which is agreed upon by a
company and hotel for all individual
room reservations
Airline rate
The rate negotiated between the
individual airline and the hotel, based
on the volume of business the hotel
gets from the airline
Group rate
Specific room rate for group, agreed
by hotel and group in advance
Children rate
As either free of charge, or at a
nominal rate if they share the same
room as their parents. Each hotel has
an agreed age limit for the child up to
which this rate applies.
Package plan rate
The rate includes a compete package
of guest’s stay like travel, food, tour
plan etc.
Back to back : Series rate
Where a company or travel agent
books a series of rooms. As one group
checks out of their rooms, another
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group will check into them after
cleaning
Normally less charged for the
government meetings and official
stays, sometimes not charged
Rate applicable for leisure hotels and
clubs- higher than the normal rate
Rate which charged for a guest who
stays less than a day – transit hotels
Government rate
Weekend rate
Half-day charges
Meal plans
Rate (UK)
Room only
Rate (US)
European plan
Rate (French)
Room and
breakfast
Continental plan
Half-board
Modified
American plan
Demi-pension
Full board
American plan
En pension
Explanation
The rate quoted is
for the room
only. This can be
on a per person
or per room basis
This rate includes
breakfast as well
as the
accommodation
The rate includes
room, breakfast
and one meal,
usually dinner
All meals are
included with the
accommodation,
i.e. breakfast,
lunch and dinner.
Sometimes
afternoon tea is
also included
Types of Hotel Guest
Different guests have different preferences in their selection of accommodation. In
the following sections, we shall investigate how hotel guests are categorized.
It is always beneficial to understand the needs and wants of the guests who use your
accommodation. The more information a hotel can gain about its guest, the better it
can anticipate what they want, and so be able to offer quality service.
This information is also of special value when: analyzing and trying to satisfy guest
requirements; determining the facilities and service expected; and evaluating the
hotel’s pricing policy. In general hotel guest can be classified according to: their
purpose of visit (pleasure travelers); numbers (independent or group travelers); and
their origin (local or travelers from overseas).
Pleasure travellers (otherwise known as tourists) are people who travel for pleasure
(e.g sightseeing or entertainment). Their arrivals are highly seasonal and are attracted
by special festivals, sports or other cultural events. Pleasure travelers are generally
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price sensitive. Their personal income is an important factor in determining their
particular needs.
DFIT – Domestic Free Individual (or Independent) Traveller (local people who stay
at a hotel for weekends, special functions and activities)
FFIT - Foreign Free Individual (or Independent) Traveler; international tourists, who
make their own travel arrangements and purchase their accommodation
independently. This type of group is not usually looking for an accommodation
package (i.e full board or half borard); they normally require accommodation only.
GIT – Group inclusive tours; groups of tourists who travel together on package tours.
Their expenditure is very often lower because they tend to budget their spending
allowance. Accommodation and sometimes meals are usually booked well in advance,
by the tour agency.
Special interest tours (SITs); groups of people who visit a place once, usually with a
special interest in mind.
Incentive tours – Tours planned with the consideration of vacation, official
allowances and special discounts of hotels
Back to back Series tours – tours arranged by travel agent with continuous plans for
the entire tour.
Business travelers are people who travel for the sole purpose of conducting business.
Business travelers are the largest source of demand for accommodation. This demand
exists all the year round, whit the exception of public holidays, but can also decrease
during summer holiday months. Business travelers often require accommodation at
short notice and, for this reason, they prefer to establish close ties with a particular
hotel so that they can use the accommodation services on a regular basis and not be
inconvenienced by lengthy reservation procedures.
Types of business travelers
Individual business travelers who travel alone,
Corporate business travelers who companies make frequent bookings (and who
usually receive reduced room rates)
Conference/Convention participants (whose accommodation usually reserved by a
company or the conference/convention organizer before their arrival)
Trade delegates (who may receive reduced room rages because of block booking)
Function of Front office department
The guest Cycle
The main function of the front office department is to support and facilitate guest
transactions and services. Therefore, the operation of the front office department is
largely determined by the type and number of guest transactions which take place
during the different stages of a guest’s stay.
A typical hotel stay can be divided into four distinct phases, namely: Pre-arrival,
arrival, occupancy, departure
These four phases constitute of guest cycle, as mentioned in below table. In each
phase of the cycle there are certain standard transactions which occur between the
guest and the hotel.
Guest transactions/Services
Phase
Transaction/Services
Interacting person
Pre arrival Reservations
Reservation Office
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Arrival
Doormen and porters
Registration, Room assignment,
Issuing of keys, baggage
handling
Occupancy Currency exchange, safe
deposits, maintaining guest
accounts, mail and information,
telephone calls, transportation
Departure Check-out, bill settlement,
baggage handling, transportation
Reception/Bell boy/Mail
and information
Front desk
cashier/Telephone
operator/Mail and
Information/Bell boy
Front office cashier/Bell
boy/travel desk
As mentioned in the above table, there are different types of guest transactions and
services which are involved in the different phases of the guest cycle. These services
and transactions are handled by the front office department.
Suggested questions
1. What are the classification of hotels as per length of stay, heritage hotel and casino
hotel?
2. What are the types of guest room?
3. Explain about the Executive floor and presidential suite?
4. What do you mean by Meal plan & its types?
5. What are the types of hotel guest?
6. Draw organizational chart of small, medium, large hotel.
7. Explain about the functions and components of front office department
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