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Front Office Operations and Management
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Front Office
Operations and Management
For Emma and Ellie
[Page iv is Blank]
FRONT OFFICE
OPERATIONS AND
MANAGEMENT
Ahmed Ismail
Australia Canada Mexico Singapore Spain United Kingdom United States
Front Office Operations and Management
Ahmed Ismail
Business Unit Director:
Susan L. Simpfenderfer
Executive Editor:
Marlene McHugh Pratt
Acquisitions Editor:
Joan M. Gill
Developmental Editor:
Andrea Edwards
Editorial Assistant:
Lisa Flatley
Executive Production Manager:
Wendy A. Troeger
Production Manager:
Carolyn Miller
Production Editor:
Joy Kocsis
Technology Project Manager:
James Considine
Executive Marketing Manager:
Donna J. Lewis
Channel Manager:
Wendy E. Mapstone
Cover Image:
© (Pete Turner Inc.) Getty Images/
The Image Bank
Cover Design:
Joy Kocsis
Composition:
Lawrence J. O’Brien
COPYRIGHT © 2002 by Delmar, a division of Thomson Learning,
Inc. Thomson Learning™ is a trademark used herein under license
Printed in the United States of America
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Library of Congress Cataloging-in-Publication Data
Ismail, Ahmed.
Front office operations and management / Ahmed Ismail.
p.cm.
ISBN 0-7668-2343-1
1. Hotel front desk personnel. 2. Hotel management.
I. Title.
TX911.3.F75.I86 2001
647.94’068—dc21 2001047674
NOTICE TO THE READER
Publisher does not warrant or guarantee any of the products described herein or perform any independent analysis in connection with any
of the product information contained herein. Publisher does not assume, and expressly disclaims, any obligation to obtain and include
information other than that provided to it by the manufacturer.
The reader is expressly warned to consider and adopt all safety precautions that might be indicated by the activities herein and to avoid
all potential hazards. By following the instructions contained herein, the reader willingly assumes all risks in connection with such instructions.
The Publisher makes no representation or warranties of any kind, including but not limited to, the warranties of fitness for particular purpose or merchantability, nor are any such representations implied with respect to the material set forth herein, and the publisher takes no
responsibility with respect to such material. The publisher shall not be liable for any special, consequential, or exemplary damages resulting, in whole or part, from the readers’ use of, or reliance upon, this material.
Contents
Preface / xv
Acknowledgments / xvii
About the Author / xix
CHAPTER 1 Hotels—Past and Present . . . . . . . . . . . . . . . . 1
Historical Perspective / 2
Marketplace Consistency / 6
Lodging Management Association / 7
Revenue Sources / 11
Sleeping Rooms / 12
Meeting/Function Space / 12
Outlets/Ancillary Revenue Sources / 13
Profit Margin / 15
Room Cost / 15
Food Cost / 16
Opportunity Cost / 18
Captive Audience Quotient / 19
Industry Perspective: Usage of Function Space / 21
Chapter Review / 23
Case Study: Food Cost / 24
Case Study: Chain Histories / 25
Internet Resources: Hotel Web Site Home Pages / 26
CHAPTER 2 Hotel Classifications . . . . . . . . . . . . . . . . . . . . 30
Hotel Sizes / 31
Hotel Location Classifications / 31
Downtown / 32
Resort / 32
Airport / 34
Suburban / 35
Hotel Product Types / 36
Service Level / 36
Target Market / 39
Independent Hotel Ratings / 42
Chapter Review / 44
Case Study: Hotel Types / 45
vii
viii ● Contents
CHAPTER 3 The Hotel Guest . . . . . . . . . . . . . . . . . . . . . . . . . 47
Room Sales Differentiation / 48
Group Rooms / 48
Transient Rooms / 48
Transient Reservation Avenues / 50
Market Segmentation / 52
Group Market Segments / 52
Corporate Segment / 52
Association Segment / 52
Other Segment / 52
Transient Market Segments / 53
Business Segment / 53
Pleasure Segment / 54
Chapter Review / 55
Case Study: Market Segmentation / 57
Case Study: Theoretical Buying Decision / 59
Internet Resources: World Wide Web Travel Sites / 61
CHAPTER 4 The Guest Room . . . . . . . . . . . . . . . . . . . . . . . . 62
Categorizing the Guest Room / 63
Room Types / 63
Room Configurations / 64
Room Designations / 73
Room Numbering / 74
Room Status Reconciliation / 77
Guest Room Makeup / 79
Key Control Systems / 82
Industry Perspective: The Role of Architecture in Hospitality / 84
Chapter Review / 89
Special Feature: New Hotel Construction / 90
Internet Resources: Hotel Design Web Sites / 94
CHAPTER 5 Hotel Organization . . . . . . . . . . . . . . . . . . . . . 95
Hotel Organization / 96
Functional Departments / 96
Rooms Division / 97
Front Office / 98
Housekeeping / 99
Reservations / 99
The Unique Role of Reservations / 99
Contents ● ix
Night Audit / 100
Loss Prevention/Security / 100
Food and Beverage / 101
Accounting / 101
Human Resources / 102
Engineering / 103
Sales/Marketing and Catering / 104
Group Résumés / 104
Practical Areas / 105
Organizational Deployment Example / 106
Top Level Management / 106
About My Job: General Manager / 107
The Executive/Leadership Team / 109
Rooms Division Manager/Resident Manager / 109
Director of Food and Beverage / 110
Director of Marketing / 110
Industry Perspective: Engineering / 111
Director of Human Resources / 112
Director of Engineering / 112
Controller / 112
Director of Grounds / 112
Director of Recreation / 113
Department Heads / 113
Rooms Division Department Heads / 114
Food and Beverage Department Heads / 115
Sales Department Heads / 118
Engineering and Human Resources Department
Heads / 119
Accounting Department Heads / 120
Resort Deployment Example / 121
Traditional versus Revenue-based Deployment / 122
Functional Department Management Teams / 123
Special Feature: Hotel Career Management / 126
Chapter Review / 130
Internet Resources: Hotel Career Web Sites / 133
CHAPTER 6 Front Office Overview . . . . . . . . . . . . . . . . . . . 134
The Arrival Chronology / 135
Stage One—Greeting / 135
Stage Two—Transition / 136
About My Job: Doorman / 137
The Hotel Shuttle / 139
x ● Contents
Stage Three—Registration / 140
Check-in / 141
Determine Method of Payment / 142
About My Job: Front Desk Clerk / 145
Stage Four—Completion / 145
Concierge / 146
PBX (Private Branch Exchange) / 146
About My Job: Head Concierge / 147
About My Job: PBX Operator / 150
Guest Service Attendant—The Front Office
Hybrid / 150
Group Arrivals / 151
Departures / 154
Front Desk Checkout / 154
Guest-directed Computer Checkout / 155
Automated Checkout / 155
Front Office Operations / 156
Communications / 156
Staffing / 157
Value-added Services / 158
Safe-deposit Boxes / 158
Mail and Document Handling / 159
Operations Administration / 159
About My Job: Assistant Front Office
Manager / 161
Shift Checklists / 162
Chapter Review / 164
Case Study: Pass On Log / 166
Internet Resources: Trade Journals/Online
Resources / 168
CHAPTER 7 Room Rate Structure . . . . . . . . . . . . . . . . . . . . 169
Rate Structure / 170
The Hubbart Formula / 170
Cost Rate Formula / 174
Market Tolerance / 174
Room Rate Designations / 175
Rate Measurement Averages / 181
Chapter Review / 183
Case Study: Room Rate Structure #1 / 185
Case Study: Room Rate Structure #2 / 186
Contents ● xi
CHAPTER 8 The Property Management System . . . . . . . 187
Selecting the PMS / 188
Guest Account / 190
Guest Registration Menu / 191
Guest Accounting Menu / 192
The Check-in / 194
Before PMS / 200
PMS Hierarchy / 202
PMS Systems Interface / 202
The Evolution of PMS / 204
Industry Perspective: Technology in Hospitality / 205
Chapter Review / 208
Internet Resources: Property Management Systems / 210
CHAPTER 9 Guest Accounting . . . . . . . . . . . . . . . . . . . . . . . 211
Accounting Basics / 212
Guest Accounting / 213
Guest Ledger / 214
House Account / 214
Guest Account / 214
Master Account / 214
Guest History Account / 215
City Ledger / 215
Accounting Entries / 216
Uncollected Receivables / 217
Accounting Documentation / 220
Guest Accounting and the Front Desk / 221
Foreign Exchange / 223
Shift Closing / 223
Chapter Review / 224
Internet Resources: Accounting Resources / 227
CHAPTER 10 Night Audit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 228
Night Audit Overview / 229
Night Audit Deployment / 229
Night Audit Reporting / 230
Trial Balance / 236
Night Audit Checklist / 237
Ancillary Night Audit Duties / 238
Guest Security and Incident/Accident Reporting / 238
About My Job: Night Audit Manager / 240
Chapter Review / 241
xii ● Contents
CHAPTER 11 Housekeeping . . . . . . . . . . . . . . . . . . . . . . . . . . 244
Room Assignment / 245
Housekeeping PMS Reports / 245
Housekeeper Allocation / 246
When Guests Overstay / 247
Housekeeping Operations / 248
Housekeeping Guest Room Standards / 249
Housekeeping Management / 251
Turndown Service / 251
Staffing / 253
Lost and Found / 254
Supply and Inventory Management / 255
Industry Perspective: e-Procurement in Hospitality / 257
Chapter Review / 261
Internet Resources: Web-based Purchasing / 263
CHAPTER 12 Reservations and Forecasting . . . . . . . . . . . . 264
Determining Occupancy and Availability / 265
Availability Factors / 265
Current Number of Reservations / 265
Historical Factors / 265
House Count / 268
Overselling / 268
Yield Management / 270
Rate Availability Restrictions / 273
Length of Stay Restrictions / 274
Closed to Arrival Restrictions / 275
Minimum Length Stay Restrictions / 275
Modified Length Stay Restrictions / 275
Rate Averaging / 276
Yield Management for Groups / 276
Reservations Management / 277
Forecasting / 278
Forecasting Factors / 280
Completing Forecasts / 288
Forecasting Frequency / 289
Forecasting Importance / 290
Reservation Sales Management / 290
Staffing / 290
Training / 292
Reservation Evaluations / 293
Contents ● xiii
Call Management / 294
Motivation / 295
Sales Strategy / 299
Industry Perspective: Yield Management in Practice / 301
Chapter Review / 303
Case Study: Rooms Inventory and Forecasting #1 / 304
Case Study: Rooms Inventory and Forecasting #2 / 306
Case Study: Rooms Inventory and Forecasting #3 / 307
Case Study: Rooms Inventory and Forecasting #4 / 307
CHAPTER 13 Measuring Hotel Performance . . . . . . . . . . . 308
Quantifiable Analyses / 309
Rev-par / 309
Market Share / 311
Qualifiable Analyses / 314
Industry Perspective: Economic Impact of Hotels / 315
Chapter Review / 316
Case Study: Rev-par / 318
Internet Resources: Measuring Hotel Performance / 318
CHAPTER 14 Guest Service . . . . . . . . . . . . . . . . . . . . . . . . . . . 319
Service Standards / 320
Verbal Means / 320
Visual Means / 322
Guest Conflict Resolution / 323
Empowerment / 325
Diversity Awareness / 325
International Guests / 326
Management’s Role in Guest Service / 327
Guest Service Training / 328
Service Mission Statement / 328
Motivating for Guest Service / 329
Industry Perspective: Six Sigma and Customer Loyalty / 331
Chapter Review / 333
Internet Resources: Hotel Training Web Sites and
International Resources / 336
Glossary / 337
Index / 349
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