Functions of the Front Office Manager

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Subject : V0206 – Administrasi &

Operasional Kantor Depan

Year : 2009

Types of Hotel, Hotel Organization and

Front Office Organization

Week 1

BIBLIOGRAPHY

• James A. Bardi. (2007). Hotel Front Office Management. 4. John

Wiley & Sons. New Jersey.

• Peter Abbott and Sue Lewry. (1999). Front Office Procedures,

Social Skills, Yield and Management. 2. Butterworth Heinemann.

Oxford.

• Dennis L. Foster. (1993). Rooms at the Inn: Front Office

Operations and Administrations. McGraw Hill.

• Woods. (2007). Professional Front Office Management. Prentice

Hall. New Jersey.

• Sue Baker, Pam Bradley & Jeremy Huyton. (1996). Principles of

Hotel Front Office Operations. Hospitality Press Melbourne.

Melbourne, Victoria.

• Ilie Gabriel Wantah. (1998). Hospitality Guidelines Series: Front

Office. Gramedia Pustaka Utama. Jakarta.

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Subject

• Historical overview of the hotel industry

• Hotel classification system

• Hotel organization

• Organization of the front office department

• Staffing the front office

• Function of the front office manager

• Equipment and forms used at the front office department

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Objectives:

On completion of this lesson, the students will be able to:

- Explain the hotel classification system, sales indicator in a hotel, organization structure of front office department

- Identify the equipment and forms used in the front office department

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Founders of the Hotel Industry

• E. M. Statler

– 1863-1928

– First hotel was for Pan American Expo in 901 – “a simple structure of 5000 rooms to be torn down after the fair was over”

– Statler’s chain was sold to Hilton in 1954

• William Waldorf Astor and John Jacob Astor IV

– Cousins

– 1893 built hotel for their wealthy friends

– Moved from 34th to Park and Lexington between 49th and 50th Streets

– Waldorf Towers is a hotel within a hotel

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Founders of the Hotel Industry

• Conrad Hilton

• 1887-1979 (after WWI ) in Cisco, TX

• Purchased Mobley Hotel, 1919

Purchased Chicago Hilton, Palmer House, Plaza, and

Waldorf=Astoria hotels (after WWII)

• First major chain in 1954 when he purchased Statler

Hotels:

– Marketing, reservations, quality of service

– Food and beverage, housekeeping, accounting

– Brands:

• Hilton Garden Inns

• Doubletree

• Embassy Suites

• Hampton Inns

• Harrison Conference Centers

• Homewood Suites by Hilton

• Red Lion Hotels and Inns

• Conrad International

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Founders of the Hotel Industry

• Kemmons Wilson (died in Jan. 2003)

– Family trip in 1952

– Central reservation system HOLIDEX

• Ray Shultz

– Protégé of Kemmons Wilson

– Started Hampton Inn - 1984

– Limited service concept; cost consciousness

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Founders of the Hotel Industry

J.W. Marriott

• 1900-1985

• 1957 Twin Bridges Marriott Motor Hotel

• Brands include:

– Courtyard

– Residence Inn

– Renaissance Hotels & Resorts

– Fairfield Inn

– Spring Hill Suites

– Towne Place Suites

– Marriott Hotels, Resorts, and Suites

– JW Marriott Hotels & Resorts

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Founders of the Hotel Industry

Ernest Henderson and Robert Moore

• First Sheraton in 1937 was Stonehaven,

Springfield, MA

• First hotel chain to be listed on NY Stock exchange

• 1968 acquired by ITT Corp.

• Owned by Starwood Hotels

• Brands

– Sheraton

– Westin

– Four Points

– St. Regis

– The Luxury Collection

– W Hotels

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Historical Developments

1. Limited-service hotels

- 1980 targeted business market on a limited budget

– ex. Hampton Inn

- Features: spacious comfortable room, limited food & beverage, first to offer 100% satisfaction guarantee

3. Technological Advances

Recent additions to that list include:

1) applications of wireless technology for communication between departments;

2) guests can access email and other documents or printing those documents as needed from “hot spots”

– designated wireless transmission and reception areas in the hotel.

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Historical Developments

4. Marketing emphasis – theme 1970’s- guest reservation/ single phone #

5. Total Quality Management (TQM) – a technique that helps managers look at process used to create products and services with a critical eye on improving those processes

• 1990’s (TQM); 2000’s – “quality assurance” and

“service quality”

• Note: Chap. 11; analysis of delivery of service and product with decision making at front-line – empowerment

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Historical Developments

6.

Major Reorganization

1987-88

• Passive losses on real estate no longer deductible

• Japanese wanted buy hotels -> value of hotels increased

• Recession increased and completed

7.

Hotel investment

• New incremental income streams – who manages hotels vs. who owns the hotel?

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Historical Developments

8 . September 11, 2001 Attack on the U.S.

• Decrease in the number of people willing to fly yields a decrease in number of rooms rented; this resulted in a banding together of tourism partners

• Review marketing plans of post-9/11 corporate traveler.

• Need to review security at front line of hotel who is coming into the hotel

• Community responsibility for security activities

• Review liability implications to repair facilities and guest security for effects of terrorism

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Overview of Lodging Industry

Types of lodging facilities –

• A. Hotels

– Marriott Wardman Park Hotel http://www.wardmanpark.com/

• B. Motels

• C. All-Suites example - Embassy Suites http://www.embassysuiteschicago.com/

• D. Limited – Service Hotels

• E. Extended Stay Hotels – continued high occupancy

– example - Homewood Suites http://www.homewoodsuitescharlotte.com/

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Lodging Overview

• Levels of Service –

Full-service

– ex. J.W.Marriott

• reservations

• on-premise dining

• banquet

• meeting facilities

• recreation facilities

• All-Suites – ex. Embassy Suites

• at-home atmosphere

• separate living and sleeping areas or working areas

• kitchenette

• wet bars

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• Limited Service ex. Hampton Inns

• continental breakfast

• sleeping room

• modest furniture

Lodging Overview

• Extended –Stay ex. Homewood Suites

• home-away-from-home

• fully equipped kitchen

• spacious bedroom

• living areas

• light breakfast or dinner

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Overview of Lodging Industry

• Market Orientation – types of properties and who they serve

• Residential

– Public dining

– Social activities

– Recreational facilities

• Commercial

– Computerized reservation systems

– Public dining

– Banquet service, lounge and entertainment areas

– Shuttle transportation to airports

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Lodging Overview

Sales Indicators :

A . Occupancy Percentage :

# rooms sold

# rooms available

50 = 50 %

100

B. Average Daily Rate : room revenue

# rooms sold

$4000_ = $80

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Lodging Overview

• Yield Percentage Facility’s success in selling its room inventory on a daily basis

Rooms sold x ADR

Rooms avail x Rack Rate

50 x $80 = $4,000

100 x $120 = $12,000 = 33.3 % Yield

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Lodging Overview

Revenue Per Available Room (RevPAR) Effectiveness of each room to produce a profit

Room Revenue = $ 4,000 = $ 40

# rooms available 100 or

Hotel occupancy % x ADR  50 % x $80 = $40

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Lodging Overview

Business Affiliations

• Chain affiliation

• provide operational and marketing services

– reservation systems

– advertising

– operations

– management development

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Lodging Overview

• Referral Property with a Chain

Assistance with management

– Assistance with marketing, advertising and reservation

• Company-owned Property

Hotel owned and operated by the chain company

• Management Contract Property

Operated by a consulting company that provides operational and marketing expertise and a professional staff

• Independent property

Hotel not associated with a franchise

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Trends That Foster Growth

• Leisure time

• 3-day weekends

• Paid vacations

• 40 hour work weeks

• Early retirement

• Me/pleasure concept

• Shift from thinking that recreation and leisure were a privilege for wealthy only

• Travel vs. isolated nature of many jobs

• Discretionary income money remaining after necessities of life are paid

• increase because of two in the family

• women in the workforce

• not a constant to depend upon:

– Unemployment

– low interest rate make the purchase of high ticket items more (homes, cars, boats) more desirable and make travel less likely

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Trends That Foster Growth

• Family size/household size

– Smaller families are more likely to have more discretionary income

• Business travel

– Oil/fuel oil prices/airfare

– Fear

– Business economy

– Conf. call, PicTel

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Trends That Foster Growth

Female business travel

Increasing segment

Amenities/safety

Female travelers

Travel as an experience

Education – to follow-up what they have learned

Culture – visit art, theatre, music, opera, ballet, museums

Sports and nature

Personal development/hobbies

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Career Development

1. Establishing Career Goals

Know where you want to go

2. Educational Preparation

Associate

Baccalaureate

Distance Learning

Life-long Learning

3. Work Experience

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Professional Memberships

American Hotel & Lodging Association http://www.ahla.com/

Certified Hotel Administrator (CHA) http://www.ei-ahla.org/certification_cha.asp

Certified Rooms Division Executive (CRDE) http://www.ei-ahla.org/certification_crde.asp

Hospitality Sales and Marketing Association International http://www.hsmai.org/

National Restaurant Association http://www.restaurant.org

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Career Development

Ports of entry

• Marketing and sales

• Front office

• Food and beverage

• Controller

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Departmental Managers

• Assistant General Manager

• Food and Beverage Director

• Plant Engineer

• Executive Housekeeper

• Human Resources Manager

• Marketing and Sales Director

• Front Office Manager

• Controller

• Director of Security

• Parking Garage Manager

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Functions of the Front Office Manager

Elements that enable the front office manager to effectively supervise.

• Employees (training)

• Equipment (PMS)

• Inventory (rooms to be sold)

• Budgeted finances

• Sales opportunities

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Staffing the Front Office

• Step 1: Estimate or forecast the needs department for a certain time period through review of the sales history of previous events, current functions, current reservations, anticipated walk-ins, stay overs, and check-outs for that time period to determine their impact upon labor requirements.

• Step 2: Meet the needs of the lodging establishment and the needs of the employee.

• Step 3: Calculate the anticipating payroll, requires the front office manager to go back and price-out each category of employee.

• Step 4: Prepare a summary of costs by category to compare projected income for weekly room sales and weekly payroll.

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Equipment & Forms

• Types of Software: Mayo, Maxial, Fidelio, Opera

• Currency exchange board

• Petty cash box

• Computer and printer

• Key rack (manual key)

• Docket rack

• Reservation form

• Reservation confirmation form

• Expected arrival list

• Arrival list

• Expected departure list

• Departure list

• Registration form

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Equipment & Forms

• Guest card

• Breakfast voucher

• Welcome drink voucher

• Rebate slip

• Cash receipt

• Miscellaneous form

• Currency exchange form

• Bellman control

• Bellboy errand card

• VIP list

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Review Questions 1

1. Market orientation of a hotel refers to which of the following?

a. The ability of the hotel to attract guests b. The stores surrounding the hotel c. The type of guests attracted to a hotel d.

The geography of the hotel’s location

2. This concept measures a hotel manager’s efforts in achieving maximum occupancy at the highest room rate possible.

a. Occupancy percentage b. Average rate c. Yield percentage d. Franchise agreement

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Review Questions 1

3. If a hotel sells 300 rooms in one night and has 400 rooms available to sell, and attracts 600 guests for that night, the single occupancy for that night is?

a. 75% b. 100% c. 50% d. 35%

4. The double occupancy rate for the night listed in question number

3 is which of the following?

a. 75% b. 100% c. 50% d. 35%

5. A hotel has collected $10,000 in revenue for the night. They sold

200 rooms. What is the average room rate?

a. $100 b. $50 c. $75 d. $85

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Review Questions 1

6. Levels of service of a hotel are indicated by which of the following?

a. Full-service, all suites, limited-service, extended-stay b. Franchise and independent services c. Luxury, independent, top rated d. Franchise, referral, limited-service

7. This type of property is a hotel which is operated by a consulting company that provides operational and marketing expertise and a professional staff. a. Management contract b. Franchise c. Limited-service d. Full-service

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THANK YOU AND

HAVE A GOOD DAY

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