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Hotel front office management
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HOTEL FRONT OFFICE MANAGEMENT
FIFTH EDITION
James A. Bardi, EdD, CHA
The Pennsylvania State University
John Wiley & Sons, Inc.
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This book is printed on acid-free paper.
Copyright © 2011, 2007, 2003 by John Wiley & Sons, Inc. All rights reserved.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
Published simultaneously in Canada.
No part of this publication may be reproduced, stored in a retrieval system, or transmitted
in any form or by any means, electronic, mechanical, photocopying, recording, scanning,
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Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their
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Library of Congress Cataloging-in-Publication Data
Bardi, James A., 1947-
Hotel front office management /James A. Bardi.–5th ed.
p. cm.
Includes bibliographical references and index.
ISBN 978-0-470-63752-4 (acid-free paper)
1. Hotel management. I. Title.
TX911.3.M27B35 2011
647.94’068–dc22
2010035007
Printed in the United States of America
10 9 8 7 6 5 4 3 2 1
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To Linda
Your love, patience, and encouragement made this book possible.
and
To Maria & Rob, Ryan & Jenni, and David
The joy of sharing this book with you makes it all worthwhile.
And now, the special delight in sharing this book with my grandchildren,
Ben and Sophia, and all my future grandchildren will provide much joy for this grandfather.
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Contents
Preface xi
Acknowledgments xvii
CHAPTER 1 Introduction to Hotel Management 1
Founders of the Hotel Industry 2
Historical Developments 5
Overview of the Hotel Industry 12
Types of Lodging Facilities 14
Market Orientation 17
Sales Indicators 17
Levels of Service 20
Business Affiliations 21
Trends That Foster Growth 27
Career Development 31
Solution to Opening Dilemma 35
Chapter Recap 35
End-of-Chapter Questions 36
Notes 38
Key Words 40
CHAPTER 2 Hotel Organization and the Front Office Manager 41
Organization of Lodging Properties 42
Organization Charts 43
Typical Job Responsibilities of Department Managers 50
Organization of the Front Office Department 59
Function of the Front Office Manager 62
Staffing the Front Office 69
Solution to Opening Dilemma 72
Chapter Recap 73
End-of-Chapter Questions 73
Key Words 76
CHAPTER 3 Effective Interdepartmental Communications 78
Role of the Front Office in Interdepartmental Communications 79
Front Office Interaction with Other Departments in the Hotel 79
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Analyzing the Lines of Communications 88
Solution to Opening Dilemma 94
Chapter Recap 94
End-of-Chapter Questions 94
Key Words 99
CHAPTER 4 Property Management Systems 100
Physical Structure and Positioning of the Front Desk 102
Selecting a Property Management System 104
Procedure for Performing a Needs Analysis 105
Other PMS Selection Considerations 113
Financial Considerations 115
PMS Applications 116
Solution to Opening Dilemma 130
Chapter Recap 130
End-of-Chapter Questions 131
Notes 133
Key Words 133
CHAPTER 5 Systemwide Reservations 135
Importance of a Reservation System 136
Overview of the Reservation System 137
Types of Reservation Systems 142
Sources of Reservations 143
Forecasting Reservations 148
Overbooking (Occupancy Management) 150
Revenue Management 153
Processing Guest Reservations 154
Process of Completing Reservations through a PMS 158
Solution to Opening Dilemma 167
Chapter Recap 168
End-of-Chapter Questions 168
Notes 171
Key Words 172
CHAPTER 6 Revenue Management 173
Occupancy Percentage 174
History of Yield Management 177
Use of Yield Management 177
Components of Revenue Management 181
Applications of Revenue Management 188
Solution to Opening Dilemma 189
Chapter Recap 189
End-of-Chapter Questions 189
vi CONTENTS
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Notes 192
Key Words 193
CHAPTER 7 Guest Registration 194
Importance of the First Guest Contact 195
Components of the Registration Process 196
Registration with a PMS 216
Solution to Opening Dilemma 228
Chapter Recap 228
End-of-Chapter Questions 228
Notes 230
Key Words 230
CHAPTER 8 Managing the Financials 232
Common Bookkeeping Practices 233
Forms Used to Process Guest Charges and Payments 234
Account Ledgers 235
Posting Guest Charges and Payments 237
Transferring Guest and City Ledgers to Accounts Receivable 241
Importance of Standard Operating Procedures for Posting and the Night Audit 243
Solution to Opening Dilemma 243
Chapter Recap 243
End-of-Chapter Questions 244
Key Words 246
CHAPTER 9 Guest Checkout 247
Organizing Late Charges to Ensure Accuracy 248
Guest Checkout Procedure 249
Determining Method of Payment and Collection 252
Assisting the Guest with Method of Payment 256
Obtaining Future Reservations 258
Filing Documents 259
Relaying Guest Departures to Other Departments 259
Removing Guest Information from the System 260
Transfer of Guest Accounts to the Back Office 260
Checkout Reports Available with a Property Management System 260
Guest Histories 262
Last Impressions of the Hotel 265
Solution to Opening Dilemma 266
Chapter Recap 266
End-of-Chapter Questions 267
Notes 269
Key Words 269
CONTENTS vii
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CHAPTER 10 Preparation and Review of the Night Audit 270
Importance of the Night Audit 270
The Night Auditor 271
The Night Audit Process 272
Goal of Preparing the Night Audit Report 278
Preparing the Night Audit Report 278
Reading the Flash Report 293
Reading the Night Audit 293
Solution to Opening Dilemma 296
Chapter Recap 296
End-of-Chapter Questions 297
Key Words 316
CHAPTER 11 Managing Hospitality 317
Importance of Hospitality 318
Managing the Delivery of Hospitality 320
Total Quality Management Applications 327
Developing a Service Management Program 328
Customer Relationship Management 338
Solution to Opening Dilemma 339
Chapter Recap 339
End-of-Chapter Questions 340
Notes 342
Key Words 343
CHAPTER 12 Training for Hospitality 344
Determining Employee Hospitality Qualities 345
Screening for Hospitality Qualities 346
Developing an Orientation Program 347
Policy and Procedure Manual 351
Administering the Orientation Program 352
Developing a Training Program 354
Steps in the Training Process 356
Administering a Training Program 361
Cross-training 362
Developing a Trainer 362
Training for Empowerment 364
Americans with Disabilities Act 365
Solution to Opening Dilemma 367
Chapter Recap 367
End-of-Chapter Questions 368
Notes 370
Key Words 371
viii CONTENTS
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CHAPTER 13 Promoting In-House Sales 372
The Role of the Front Office in Marketing and Sales 373
Planning a Point-of-sale Front Office 375
Theories of Motivation 380
Applying Motivation Theories 381
Training Programs for a Point-of-sale Front Office 382
Budgeting for a Point-of-sale Front Office 384
Feedback 384
Planning a Point-of-sale Front Office—An Example 386
Solution to Opening Dilemma 388
Chapter Recap 388
End-of-Chapter Questions 389
Notes 391
Key Words 391
CHAPTER 14 Security 392
Importance of a Security Department 393
Organization of a Security Department 395
Job Analysis of the Director of Security 395
In-House Security Departments versus Contracted Security 398
Room Key Security 401
Fire Safety 404
Emergency Communication 411
Employee Safety Programs 415
Safety Training Programs 418
Solution to Opening Dilemma 418
Chapter Recap 418
End-of-Chapter Questions 419
Notes 421
Key Words 422
CHAPTER 15 Executive Housekeeping 423
Importance of the Housekeeping Department 423
Role of Chief Engineer in a Lodging Property 446
The Greening of the Lodging Industry 450
Solution to Opening Dilemma 453
Chapter Recap 454
End-of-Chapter Questions 455
Notes 457
Key Words 459
Glossary 460
Index 475
CONTENTS ix
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T
he Fifth Edition of Hotel Front Office Management remains one of
the leading texts in addressing the demands for instructing future
leaders of the hotel industry. Educators who are preparing professionals for roles as front office managers and general managers in hotels are
required to meet the challenges of operations, technology, training, empowerment, and international applications. This latest edition of Hotel Front Office
Management continues to encourage students to take an active part in applying these concepts to the exciting world of hotel operations.
To the Student
The emphasis on management continues to play a central role in Hotel Front
Office Management, Fifth Edition. The text’s structure will assist you as you
prepare for positions as entry-level managers. The logical presentation of
chapters in order of operations—overview of lodging hospitality; tour of the
front office, review of the guest cycle, and analysis of guest services—allows
you to gain insight into a front office manager’s role in the hotel. Reviews and
analysis of other departments and how they relate to the front office include
security and housekeeping.
To the Instructor
Instructors will find text material presented in a logical manner to develop lesson
plans. Features include Chapter Focus Points; Opening Dilemmas to encourage students to relate to practical information; figures, tables, and photos that
Preface
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represent current industry trends; International Highlights, which encourage diversity;
End-of-Chapter Questions that support content presented in the text; and three welldeveloped Case Studies per chapter to facilitate student discussion.
A list of Key Words can be found at the end of each chapter, and an excellent Glossary
at the end of the text is provided to assist instructors as they develop classroom activities
and exams. Faculty will also find PowerPoint Slides and a well-developed Instructor’s
Manual with Test Bank on the web site.
Text Features
The Fifth Edition of Hotel Front Office Management has maintained its high standards
of pedagogical features, including:
■ Opening Dilemmas present students with a mini-case-study problem to solve with
the help of subsequent chapter presentations; a Solution to the Opening Dilemma
is included at the end of each chapter.
xii PREFACE
OPENING DILEMMA
The group leader of a busload of tourists approaches the front desk for check-in. The
front desk clerk acknowledges the group leader and begins the check-in procedure,
only to realize no clean rooms are available. The desk clerk mutters, “It’s 4:00
P.M., and you would think someone in housekeeping would have released those
rooms by now.” The group leader asks, “What’s holding up the process?”
■ Hospitality Profiles feature selected commentaries from hotel front office managers, general managers, and other hotel department managers; these contribute a
human relations element to the text.
■ International Highlights include articles of interest that accentuate the international
workforce and international career opportunities for hospitality graduates. Additionally, they provide a forum for instructors and students to discuss this aspect of
hotel management.
HOSPITALITY PROFILE
?
Eric O. Long, general manager
of the Waldorf=Astoria in New
York City, has been employed by
Hilton Corporation for 30 years.
He has served in various management positions at
the Hilton Short Hills, Chicago Hilton and Towers, Hilton Walt Disney Village, Fontainebleau ?
Hilton Resort, and the Palmer House.
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WHAT’S NEW AND REVISED IN THIS FIFTH EDITION xiii
■ Front-line Realities present unexpected yet realistic situations. Students are asked
to discuss a method of handling these situations.
What’s New and Revised in This Fifth Edition
Chapter 1 Introduction to Hotel Management
■ “Select-service” lodging terminology is introduced to reflect current usage; “limitedservice lodging” was used previously.
■ Technological advances, including social media, guest room technology, IT infrastructure, surviving a tough economy with help from technology, and demystifying Web
2.0 are now included in the technological list of advances of the lodging industry.
■ The importance of the Internet is emphasized for its role in marketing.
■ A section on the economic downturn of the late 2000s is included to encourage students
to address this challenge as they face their career and future management horizons.
■ Additional metrics allow students to maintain their currency in the lodging market
GOPPAR (Gross Operating Profit per Available Room).
Chapter 2 Hotel Organization and the Front Office Manager
■ Updates include organizational charts of a large, full-service hotel, a medium-sized
lodging property, and a select-service lodging property.
INTERNATIONAL HIGHLIGHTS
I
nternational translation cards, which assist foreign guests in translating travel phrases of their
native language into English, are frequently kept at front desks. International visitors and uhotel desk clerks find these cue cards helpful.
F R O N T- L I N E R E A L I T I E S
A future guest has called the hotel and wants to arrange a small dinner party for his guests
on the first day of his visit. The marketing and sales office is closed for the day, and the
banquet manager has left the property for a few hours. What would you suggest the front desk q
clerk do to assist this future guest?
■ There are now three Case Studies at the end of each chapter.
■ A Glossary, which appears at the end of the book, summarizes terms introduced in
each chapter (and appearing in italics in the text).
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