Financial Management
 Purpose of a Budget- Know what you have to spend and know where you plan on spending it.
 Revenue is money coming in.
 Expenses are where you are spending the money
 Profit is any money left over when revenue minus expenses.
 Loss is when expenses are more than revenue
 Revenue Management Concepts- Reacting/understanding consumer behavior in order to maximize revenue or
profits. Right room at the right price at the right time.
 RevPar (revenue per available room) os calculated by average daily room rate x occupancy rate, Occupancy Rate
(OR)- how many rooms are being used, Yield management- variable pricing strategy- similar to revenue
management concepts.
 Globalization in the hospitality industry- Learn more management approaches, high levels of uncertainty, be
ready for changing environment, link to international, affects organizational culture, structure, management
styles, etc. Be multilingual/have services for them, more knowledge about cultures, know about variety of foods,
more trade agreements, cultural barriers reduced.
 Economic trends in the industry- International travel is up, but staycations are down (staycations are done
when the economy is in a recession). Social media is up and direct booking has increased (less
hotels.com/expedia.com)
Legal and Ethical
Ethics are different for everyone. Your ethics are different than others because of your upbrining, religion, where your
from, and personal experiences.
Not being ethical can lead to write ups, poor evaluations, termination/being fired, being sued, and jail.
Common workplace issues- drug testing, hiring practices, safety, theft, harassment, substance abuse, discrimination,
privacy (all info on you must stay private), etc.
1. job discrimination laws - Civil Rights Act of 1964 (Title VII), the ADA, the ADEA, and their state
equivalent, the Texas Commission on Human Rights Act
2. health and safety laws - OSHA - employers must investigate problems and prevent future similar
problems; prevention of workplace violence - employers have a duty to investigate threats and
prevent acts of violence in the workplace to the extent possible
3. drug-free workplace laws - Drug-Free Workplace Act of 1988; DOT drug testing regulations
1. Usually done pre-employment, reasonable suspicion, post-accident, random testing
4. background and credit checks - in order to minimize liability for negligent hiring or negligent
retention, employers must sometimes investigate employees' backgrounds - Fair Credit Reporting
Act requirements apply

Ethics are your own personal/family/upbringing laws that you have created for yourself or society has
created for you to follow. Legal is what is allowed by law or policy/procedure.


Common legal issues in the industryFood & Beverage Liability cases, Franchise disputes and resolutions, how to avoid negative publicity
and liability by learning what "not to do, Fair Labor Standards Act (minimum wages, overtime pay, child
labor, equal pay for equal work), Discrimination, tip pool issues, guest privacy, contract disputes,
insurance matters, trademark and copyright violations, licensing requirements, spa lawsuits, insurance,
security, trademark/copyright, consumer protection, sex tourism, and more
Management and Leadership

Planning/Organizing, directing, staffing, and controlling




Time Management Strategies- create a schedule, set priorities, shut your door, avoid distractions, write things
down, create to do list, set goals for completion,
Policies and procedures- are needed to have a standard in the workplace. Everyone can be on the same page.
Effective Leader- problem solver, influences, motivates, enthusiastic, confident, gets in put, etc.
Integrity and professionalism- you are setting the example for your employees.
Sales and Marketing Functions
 e-commerce marketing- use social media, banners, email marketing, contests, pay per click, good site.
 Market segmentation- Target different groups because of their differences in preference within a target market.
 Target market- who is your product or service for (demographics, geographic, etc.)
 5 P’s- People, place, product, promotion, price
 Promotions- Advertising (commercials, print ads/magazine ads, billboards, social media, posters, YouTube),
public relations (story in the paper, helping out the community), sales promotions (sales such as coupons),
Direct sales (people ceiling phones in the mall, or door to door).
 Brand identification- Name, logo, history, slogans, image, etc.
 Features vs. Benefits….Features- 320GB Benefit- be able to store more videos and pictures…
Safety and Sanitation Standards
 Occupational Safety and Health Administration- Keeps employees safe. You can report to them. They can help
your business get safer. Avoid hazards.
 Risk management policies/procedures- help to let everyone know that the company is doing their best to keep
things safe and that they will investigate if some does get hurt.
 Be aware of safety policies-Electrical safety, slips/trips/falls, tools and equipment, hazardous substances, first
aid, fire and emergency response, food safety, violence,
- See it, assess it, fix it, evaluate it.
 HACCP is Hazard Analysis and Critical Control Points used to track and keep food safe.
Communication Skills and Customer Service
 Workplace is diverse because many immigrants have their first job in the hospitality industry
 Written skills- Memos (Short paper messages), business letters, resumes, cover letter (is a business letter), email
(use proper email),
 Listen, nod, and ask open ended questions…
 Communication Etiquette- Phone (speaker volume, don’t answer when with others, don’t place phone on the
table, let others know when they are on speaker phone), Email (professional email, use too many exclamation
points, click reply all when not necessary, use humor wisely), texting (be careful with abbreviations, don’t
change meeting times or venues in a text),
 Show respect, listen, be responsive, ask open ended questions, ask for feedback, be proactive, focus on the
guest, acknowledge a guest’s issue.
 Total Quality Management (TQM)- Max guest satisfaction through ongoing improvement
 Empathy- Putting yourself in their shoes.
 Customer retention- keeping guests as customers
 Customer recovery- brining guests back
 Listen, Respond, Act, Follow up
Event Planning
 Know what meetings, conventions, expositions, farmers market, weddings, birthday parties, etc.
 Destination Management Company (DMC)- Organization in charge of developing and implementing tourism
programs.
 Event Coordination requires- set goals and purpose, need space, marketing/invitations, food, people, how you
are going to pay,
Travel and Tourism
 We travel for Pleasure and Business
 World Tourism Organization- Promotes tourism in the world
 In Arizona we have Arizona Tourism and Travel and Tucson has the Metropolitan Conventions and Visitor’s
Bureau.
Recreation
 Includes amusements (Fiddlesticks, Disneyland), attractions (San Xavier Mission), gaming (Casino Del Sol),
 Jobs in Recreation- Gate attendant, ride attendant, ticket taker, casino dealer, casino slot attendant, bartender,
games manager, museum curator, nightclub manager, ride operator, snow maker, instructor,
Food and Beverage Sector
 Greeted by host, sat down and provided menus, server arrives and asks for drinks, appetizers, entrée, dessert,
food is prepared, and then check is presented, busser buses table.
 Front of house uses a Point of Sales system and includes all visible people
 Back of the house uses monitors to see what orders are coming up.
 Fine dining (Cheesecake Factory), Causal Dining (Apple Bee’s), and Quick Service/Fast Food (Wendy’s)
 Menu Components- Hours, Name of restaurant, beverages, appetizers, salads, desserts, entrées, and sides.
 Catering…can have their own venue like a hotel… or can travel
Lodging Sector
 Central Reservation System or Hotel Reservation System- Used to keep track of guests
 Property Management System- Used to manage multiple properties
 Organizational Cultures- Businesses have a way of doing things or a vibe. You’ll notice just by walking into an In
and Out burger vs. a McDonald’s that there is a clear culture difference.
 Mission Statement- Very organization creates a statement that is pretty much the purpose as to why they are in
business.
 Sustainability- Recycling, keeping the environment the same as much as possible.