Hotel organisation
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Topics
On completion of this unit, the students will able to :
1. Explain what a mission statement
2. Describe how goals, strategies, and tactics are used to
accomplish a hotel’s mission.
3. Create organization charts depicting the lines of
responsibility among positions, departments, and
divisions within a hotel.
4. Distinguish front-of-the-house areas from back-ofthe-house areas and revenue centers from support
centers.
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Topics
5. Describe the functions performed by departments
and positions within the rooms division.
6. Identify the functions performed by other divisions
and departments within a full-service hotel.
7. Describe the organization of the front office
department including traditional work-shifts,
alternative scheduling practices, and the purpose of
job descriptions and job specifications.
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Mission Statement
• A Mission is the unique purpose that sets one hotel or
motel company apart from others.
• The purpose of the organization and outlines the kinds of
activities performed for guests.
• Moreover, the mission statement gives meanings and
directions to hotel policies.
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• To define its mission a company should address
the classic questions: What is our business?
Who is the customer? What is of value to the
customer? Successful companies continuously
raise these questions and answer them
thoughtfully and thoroughly.
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Mission statement (continued)
• A hotel’s mission statement should address the interests
of its three main groups:
• Guests
• Management
• Employees.
• For example: “To provide the finest facilities and
services in the market while providing a good place to
work for its employees and a reasonable return on
investment to the owners.
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Cont.
• To achieve our mission we must have the followings:• Goals: Observable, measurable activities and standards
to achieve mission.
• Strategy: A method by which a department and division
plans to achieve its goals.
• Tactics: The day to day operating procedures that
implement the strategy
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Examples
• Goal: Operate the front desk efficiently and courteously
so that guests register within 2 minutes of arrival.
• Strategy: Pre-register guests with reservation
guarantees as room become available from the
housekeeping.
• Tactic: Pre-print registration cards for arriving guests
and separate the cards of all gusts with a reservation
guarantee.
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HOTEL ORGANIZATION
• In order to carry out its mission, global and departmental
goals and objectives, every company shall build a formal
structure depicting/outlining different hierarchy of
management, supervision, and employee (staff) levels
• Outlines the responsibility among positions, departments,
and divisions within a hotel.
• And representation of relationships between positions
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An Organisational Chart
General
Manager
Rooms
Division
Manager
Director
of
Sales
Food and
Beverage
Manager
Controller
Human
Resources
Manager
Front
Of fice
Manager
Reservations
Manager
Restaurant
Manager
Catering
Manager
Housekeeping
Manager
Sales
Manager
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Sales
Manager
Loss
Prevention
Manager
continued
• There are two types of relationships that might exist between any
two functions at any organization chart. These are:
• Solid Lines: (i.e.: ) This kind of relationship shows
Direct Line Accountability. To illustrate, if position A and B are
linked with a solid line, it means (for example) that A shall report to
B, that B shall tell A what to do, when to do, and how to it. Lastly,
B shall be liable (i.e. responsible) for A.
• Dotted Lines: (i.e. ---------) This kind of relationship entitles
both positions linked with dotted lines to have a high degree of
Cooperation and Communication but not a direct line
accountability. Usually in the hotel
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Basic Guest Needs
Safety
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Security
Cleanliness
Comfort
Courteous, professional, friendly service
Well-maintained facilities and equipment
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Hotel Divisions
The hotel is made of divisions:
· Rooms Division
· Food and beverage Division
· Sales and marketing Division
· Account & finance Division
Engineering and maintenance
· Security
· Human resources
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Revenue Centers
· Front office
· Food and beverage
· Spa and Treatment centres
· Retail stores
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Support Centers
· Housekeeping
· Accounting
· Engineering and maintenance
· Human resources
· Security
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Rooms Division Departments
· Front office
· Reservations
· Communications
· Concierge
· Housekeeping
Note: In many mid-size and larger properties, reservations may
be part of the sales department.
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Room Division Organisational Chart
Room Division
Manager
Guest Relations
Manager
Front Office
Manager
Reservation
Manager
Guest Service
Coordinators
Assistant
Manager
Reservation
Officers
Telephone
Operators
Senior Receptionist
Receptionists
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Front Office
• The most visible department in the hotel.
• Front office staff have more contact with guests.
• Front office the focal point of activities and
prominently located in the hotel’s lobby.
• Front office serves as the control centre for guest
requests and complaints.
• It plays a role as an emergency operational place.
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Front office functions
• The Front Office organization chart shall be designed
according to Functions.
• Doing so not only enhances the control the Front Office
has over its Operations, but also provides guests with more
specialized attention.
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Front office positions
 Typical functions and positions under the Rooms Division
Department:
 Front Desk receptionist: Registers guests, and maintains
room availability information
 Cashier: Closes guest folios, and properly checks out guests
 Night Auditor: Perform auditing, and prepares daily
reports to management (ex: Occupancy Report and Revenue
Report)
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continued
 Telephone Operator: Manages the Switchboard and
coordinates Wake-up Calls
 Reservation Agent: Responds to Reservation Requests and
creates Reservation Records
 Concierge: Handles Guest Luggage, escorts Guests to their
Rooms, and assists guests for any bit of information
requested
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Front Office Functions
· Sell guestrooms
• Assign guestrooms
· Register guests
· Coordinate guest services/handle complaints
Provide information
· Track room status information
· Monitor guest accounts/credit
· Produce guest account statements
· Complete financial settlement
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Reservation & Communication dept.
• This could be the guests’ first contact with your
establishment.
• Responsible to provide friendly, professional service the
guest can expect from the establishment.
• Responsible for internal and external communication
between the establishment and the guests.
• Responsible for taking messages accurately for both internal
and external customers- wake up calls for guest and all
corresponding follow up actions.
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Reservation & Communication dept. (continued)
 Responsible for communications between the hotel
staff/other department
 The first contact for in times of danger/emergency.
 Responsible for offer information of the hotel as well as
outside surrounding area.
 Reservations:
 The reservation sales agent (RSA) is responsible for
accepting reservation from telephone, fax , letter, email
and direct from people who walk in to the hotel to
make reservation.
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continued
• Answering the guest accommodation inquiries.
• Selling the hotel guest rooms.
• Accepting guest requests for accommodation ( room type,
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arrival date, method of payment.
Explaining the hotel facilities and hotel policy.
Recording the reservation information accurately
Maintaining accurate internal records ( to achieve 100%
occupancy)
Assisting in forecasting / staffing and other pre arrival
activities.
Preventing overbooking of hotel guest room.
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Concierge Services Staff
· Bell attendants
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Door attendants
Valet parking attendants
Transportation personnel
Concierge
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Food and beverage Division
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According to U.S. Lodging statistics, F&B Department constitutes
the second largest revenue generator of a typical hotel with an
average of 23.1 for Food sales, and 8.6 % for Beverage sales. In a
five-star hotel, Food and Beverage outlets might have the following
forms:
 Room Service/Quick Service
 Specialty Restaurants
 Coffee Shops
 Bars
Lounges
 Clubs
 Banquets/Catering Functions  Wedding, Birthdays…
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CONT.
 Australia's 5,891 accommodation businesses generated
$9.9 billion in income during 2006-07, according to
figures released today by the Australian Bureau of
Statistics (ABS).
The main sources of income for these businesses, which
range from hotels to bed and breakfast establishments,
included takings from accommodation (66%); meals
(14%), and sales of liquor and other beverages (6%).
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Sales and marketing Division
• A typical hotel should usually have Sales & Marketing
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division. However, if the staff size, volume business, hotel
size, expected group arrivals is low enough, the hotel might
have marketing staff placed under the reservation
department (i.e. No need for a Sales & Marketing Division).
A typical Sales & Marketing Division is composed of four
different departments:
Sales
Convention Services
Advertising
Public Relations
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Accounting Division
• The Accounting Division monitors the financial activities of
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the property. Some of the activities that are undertaken in the
Accounting Division are listed below:
Pays outstanding invoices
Distributes unpaid statements
Collects amounts owed
Processes payroll
Accumulates operating data
Compiles financial reports
Makes bank deposits
Secures cash loans
Performs other control and processing functions
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Engineering and Maintenance Division
 This very department maintains the property's structure and
grounds as well as electrical and mechanical equipment.
 Some hotels might have this very division under different
names, such as maintenance division, property operation
and maintenance department…
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Security Division
• Security division personnel are usually screened from in•
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house personnel, security officers or retired police officers,
across certain physical skills, and prior experience.
Some of the functions of the security division are listed
below:
Patrols the property
Monitors supervision equipment
Ensures safety and security of guests, visitors, and
employees
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Human resources Division
• Some of the duties of the human resources division are
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listed below:
Responsible for external & internal recruitment
Calculates employees' salaries, compensation, and tax
withholding…
Administrates employees' paperwork, monitors
attendance…
Maintains good relations with Labor Unions
Ensures employees' safety and working conditions
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Other Divisions
• All the above mentioned departments and/or divisions
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should exist in a typical five-star hotel, however there might
be some revenue generators that are specific to certain
hotels but not existing in others. Below is a list of some
possible extra or other divisions that might exist in a hotel:
Retail Outlets (i.e.: Shops rented to outsiders or managed by
the hotel)
Recreation Facilities (ex: Fitness Center, Tennis Courts, and
Cinema Saloons…)
Conference Centers
Casinos
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Work shifts
• Work Shift:
• The Front Office Manager shall schedule his/her employees
according to seasonality, business volume, and available staff
in hand
• The most commonly used scheduling is the Traditional
Scheduling, which assumes that every employee shall work
40 Hours per Week. Moreover, the hotel shall ensure a 3
shifts per day, each of which lasts for 8 hours. A possible
example to traditional scheduling is shown below:
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Example
  Day Shift
  Evening Shift
  Night Shift
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7 a.m. - 3 p.m.
3 p.m. - 11 p.m.
11 p.m. - 7 a.m.
Work hours
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Flexible Work Hours or Flextime: This kind of alternative
scheduling entitles that employees might start work, for
example, one hour earlier, just to leave again one hour earlier.
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Compressed Work Schedule: Employees, instead of working
5 days per week, 8 hours per day, might work 4 days per week,
10 hours per day. Therefore, compressed work scheduling
means working all the 40 hours per week in less than the
standard 5 days per week.
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Job Sharing: This kind of scheduling entitles that two or
more part-timers occupy the job of one full timer.
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Job description
 Job description lists all tasks of a work position. it
outlines reporting relationships, responsibilities, working
conditions, equipment and materials to be used.
 All job descriptions shall be tailored and customized to
reflect the needs of each single hotel property, and work
position.
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Job Descriptions
Job Descriptions are used for following :
· Evaluate job performance
· Train/retrain employees
· Avoid duplication of duties
· Ensure tasks are performed
. Determine staffing levels
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Job Specification Factors
· A list of the personal qualities, skills and traits needed to
successfully perform the tasks outlined by a job description.
Formal education
· Work experience
· General knowledge
· Previous training
· Physical skills
· Communication ability
· Equipment skills
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Front Office Job Specifications
· Professional demeanor (behaviour)
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Congenial personality
Helpful attitude
Flexibility
Well-groomed appearance
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Front Office Terminologies
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Front Office terminology
• Occupied: A guest is currently registered to the room.
• Complimentary/FOC: The room is occupied, but the guest is
assessed no charge for its use.
• Stay over: The guest is not expected to check out today and will
remain at least one more night.
• On-change: The guest has departed, but the room has not yet
been cleaned and readied for re-sale.
• Do Not Disturb: The guest has requested not to be disturbed.
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continued
 Sleep-out: A guest is registered to the room, but the bed has
not been used.
 Skipper: The guest has left the hotel without making
arrangements to settle his or her account.
 Sleeper: The guest has settled his or her account and left the
hotel, but the front office staff has failed to properly update
the room’s status.
 Vacant and ready: The room has been cleaned and inspected
and is ready for an arriving guest.
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continued
 Out-of-order: The room cannot be assigned to a guest. A
room may be out-of-order for a variety of reasons including
the need for maintenance, refurbishing, and extensive cleaning.
The room is taken out from the inventory.
 Lockout: The room has been locked so that the guest cannot
re-enter until a hotel official clears him or her.
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Terminology
• Due out: The room is expected to become vacant after
today’s checkout time.
• Checkout: The guest has settled his or her account,
returned the room keys, and left the hotel.
• Late Check-out: The guest has requested and is being
allowed to check out later than the hotel’s standard checkout time.
• House Limit: A credit limit established by the hotel.
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Terminology
• Late Charge: A transaction requiring posting to a guest
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account that does not reach the front office system for
posting until after the guest has checked out./
( The guest had checked out but there are charges to be
charged to his account)
Registration Card: A printed form for a registration record,
a legal document between the guest and the hotel
MOP : Method of payment
FOC: Free of Charge
SOB: Source of Business
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Terminology
 Voucher: A Document detailing a transaction to be posted: used to
communicate information from an unconnected point of sale to
the front office system.
 Block: An agreed-upon number of rooms set aside for members
of a group planning to stay at a hotel.
 Book: To sell or reserve rooms ahead of time.
 Cancellation hour: The hour after which a property may release
for sale all unclaimed non-guaranteed reservations, according to
property policy.
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Terminology
• No Show: A guest who made a room reservation but did not
register or cancel.
• .
• FIT: Free independent traveler, a traveler who is not part of
group.
• Floor limit: A limit a assigned to hotels by credit card
companies indicating the maximum amount in credit card
charges the hotel is permitted to accept from a card member
without special authorization.
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Terminology
 Due-out: Guests expected to check out on a given day who have
not yet done so.
 PIA :( Paid in advanced) A guest who pays his or her room charges
in cash during registration or reservation.
 Rack Rate: The standard rate established by a hotel for a
particular category of rooms.
 Walk in: A guest who arrives at a hotel without a reservation
 Walking/bump: turning away a guest who has reservation
because of a lack of rooms.
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Terminology
 Room rate: The price a hotel charges for a overnight
accommodation.
 Log book: A journal in which important front office events
and decisions are recorded for reference during subsequent
shifts.
 Registration Card: Legal document sign between a hotel and
its guest and it is also a collection of important guest
information.
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Terminology
 Guest Folio: It is a record of the charges incurred.
 POS: Point of sale systems, it allows guest account transactions
to be quickly transmitted from remote revenue centers to guest
account.
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Terminology
 Cancellation hour: The hour after which a hotel may release for
sale all unclaimed non-guaranteed reservation according to hotel
policy.// 6 PM release
 CRC: Central reservation centre.
 GDS: Global Distribution system. (It is a distribution channel for
reservations that provides worldwide distribution of hotel
reservation information and allows selling of hotel reservation
around the world.)
 Ledger: is a summary grouping of accounts.
 Account Receivable: Money owned to the hotel
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Terminology
• Guest Ledger: The set of guest account that correspond to
registered hotel guests.
• City Ledger: The non-guest ledger. (The guest account is not
settled in full at check out and the guest’s folio balance is
transferred from the guest ledger to city ledger for the account
dept. to collect.)
• Cash Bank/Float: is an amount of cash assigned to a
receptionist so that he/she can handle the various transactions
during the particular work shift.
• Cut off time: The hour usually 6pm after which a hotel may
release for sales all unclaimed non-guaranteed reservations with
an arrival time prior to 6pm.
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Terminology
 Overstay: A guest who stays on after their indicated departure
date.
 Stay over: A guest not checking out today and will remain at
least one more night.
 Tariff: Charge levied for accommodation, merchandise or
services rendered.
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Week 2
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ROOM TYPE DEFINITIONS
 The following room type definitions are common throughout
the lodging industry:
 Single: A room assigned to one person. May have one bed
 Double: A room assigned to one person or two peoples. May
have one bed
 Triple: A room assigned to three people. May have two or
more beds.
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ROOM TYPE DEFINITIONS
 Quad: A room assigned to four people. May have two or more
beds.
 Queen: A room with a queen-size bed. May be occupied by one or
more people. A bed approximately 60 inches by 80 inches.
 King: A room with a king-size bed. May be occupied by one or
more people. 78” X 80”
 Twin: A room with two twin beds. May be occupied by one or
more people.
 Double-double: A room with two double (or perhaps queen) beds.
May be occupied by one or more persons.
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ROOM TYPE DEFINITIONS
 Studio: A room with a studio bed-a couch, which can be converted
into a bed. May also have an additional bed.
 Mini-suite or Junior suite: A single room with a bed and a sitting
area. Sometimes the sleeping area is in a bedroom separate from the
parlor or living room.
 Suite: A parlor or living room connected to one or more beds.
 Connecting rooms: Rooms with individual entrance doors from
the outside and a connecting door between. Guests can move
between rooms without going through the hallway.
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ROOM TYPE DEFINITIONS
 Adjoining rooms: Rooms with a common wall but no
connecting door.
 Adjacent rooms: Rooms close to each other, perhaps
across the hall.
 Handicap Room : A room designed with special
features to cater for the handicapped guest.
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These pictures are taken from Swissotel Sydney
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King Size
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King Size/ Westin Hotel Sydney
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Double Double (Twin)
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Suite
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Junior Suite
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Kids Room
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