4-Hospitality structure

HOSPITALITY STRUCTURE 1) ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ 2)

The Executive Committee

See organization chart (Excel – sheet 0) Ex of topics covered by the EC : Total quality management Occupancy forecasts Sales and marketing plans Renovations Ownership relations Recycling

Energy conservation Law legislation Capital expenditure Guest satisfaction Employee satisfaction Hotel General Manager

They must provide owners with a reasonable ROI

Held accountable fo the hotel’s level of profitability by the corporation of

owners/shareholders

Discuss forecast with CEE and Director

The GM is ultimately responsible for the performance of the hotel and the

employees

He is the leader of the hotel

To be successful, GMs need to have a broad range of personal qualities, among

those:

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Leadership Attention to detail

Follow-through – getting the job done People skills Patience

Ability to delegate effectively Rooms Division

See organization chart (Excel – sheet 1) Room Division Manager/Director

Held responsible by the GM for the efficient and effective leadership and

operation of all the rooms division departments

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Some concerns:

▪ Financial responsibility for rooms division ▪ Employee satisfaction goals ▪ Guest satisfaction goals ▪ Gest services ▪ Guest relations ▪ Security ▪ Gift shop ➢

Front Office Manager/Director (FOM)

Main duty: enhance guest services by constantly developing services to meet

guest needs

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The three main functions of the front office:

▪ Sell rooms

▪ Maintain balanced guest accounts • Advanced deposits

• Opening the guest folio (account)

• Posting all charges from the various departments • Using Property Management System (PMS)

▪ Offer services such as handling mail, faxes, messages, and local and hotel information ▪ People constantly approach the front desk with questions  FD is staffed with 3 shifts throughout the 24 hours

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Main duties performed

▪ Check night clerk report

▪ Review previous night’s average rate

▪ Look over market mix and determine what rooms to sell at what price ▪ Handle checkouts and check-ins ▪ Check complimentary rooms

▪ Verify group rooms to be picked up for the next thirty days ▪ Review arrivals and departures for the day ▪ Politely and efficiently attend to guest inquiries ▪ Review the VIP list and prepare preregistration

▪ Organize any room changes guests may request and follow up ▪ Arrange preregistration for all arrivals

▪ Attend rooms divisions and operations meeting ▪ Advise housekeeping and room service (flower, fruits…) ▪ Review arrivals and departures for the next day

▪ Make staffing adjustments needed for arrivals and departures ▪ Note any important thing in the log book

▪ Check issuing and control of keys ▪ Review scheduling ➢

The Property Management System (PMS)

▪ Centre of information processing in a hotel

▪ Computer-based lodging information system that relates to both the front- and back-office activities

▪ PMS may interact with many other modules and applications (softwares) • Room management module: keeps informed about the status of rooms

• Guest accounting module: increases the hotel’s control over guest accounts, makes them easily available at any time

• Other functions: electronic locking systems energy management systems (air conditioning), call accounting systems

• Can be part of an ERP (global software)

• As hotel guests expect their rooms to be a home away from home, an office, a retreat, and even a playroom, High-Speed Internet Access (HSIA) is becoming a necessity

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Call Accounting System (CAS) – track guest room phone charges Guest Reservation System (CRS)

▪ CRS can also be used as a chain or individual property marketing tool because guest information can easily be stored

▪ CRS can also provide yield management information for a hotel

▪ Hotels can use other forms of technology to facilitate reservation systems; ex: application service provider (ASP) environment that can deliver a complete booking system tied to the hotel’s inventory in real time via the Web

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Reminder: yield calculation

▪ A hotel with 300 rooms – rack rate of 150€

▪ Average number of rooms sold: 200 – average rate: 125€ ▪ Room occupancy % = 200 / 300 = 66,6% ▪ Rate achievement factor = 125€ / 150€ = 0,833 ▪ Yield = 0,666 x 0,833 = 55,5% ➢ ➢

Reservations Manager

In many hotels at the same level as the Front Office Manager

In this case he reports directly to the Director of Rooms Division or Director of

Sales and encompasses yield management

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The reservation department generally works from 8:00am to 6:00pm

In connexion with a great variety of sources: tel/fax/internet, travel agents,

meeting planners, tour operators, airport telephone, walk-in

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Concierge

A uniformed employee of the hotel who has her or his own separate desk in the

lobby or on special concierge floors

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The concierge assists guests with a broad range of services (tickets, table at a

restaurant, general advices on local possibilities…)

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Executive Housekeeper See chart (Excel)

The largest department in terms of the number of people employed Main qualities:

▪ Leadership ▪ Organization ▪ Motivation

▪ Commitment to maintaining high standards ➢

4 major areas of responsibilities:

▪ Leadership of people, equipment and supplies

▪ Cleanliness and servicing the guest rooms and public areas

▪ Operating the department according to financial guidelines prescribed by the GM ▪ Keeping records ➢

Security/Los Prevention

Providing guest protection an loss prevention is essential for any lodging

establishments regardless of size

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Protecting guests from bodily harm has been defined by the courts in most

countries as reasonable expectation from hotels

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A comprehensive security plan must include the following elements:

▪ Security officers: regular rounds of the hotel, observing suspicious behaviour and taking appropriate action, investigating incidents, cooperating with local law enforcement agencies, agents

▪ Equipment: close circuit television cameras (corridors, doorways, food, liquor, storage areas), smoke detectors and fire alarms (required by law in many countries), electronic key cards

▪ Safety procedures: security officers (gain access to guest rooms, store rooms and offices at all time)

▪ Development of “catastrophe plans” (review insurance policies, analyses physical facilities, evaluates possible disasters scenarios) – see also vulnerability matrix – strategy module

▪ Identification procedures (identification cards with photographs issued for all employees, name tags for employees in contact with guests)

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Trends in hotel and rooms division operations Diversity of workforce

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Increase in use of technology

Continued quest for increases in productivity Increasing use of revenue management Greening of hotels and guest rooms Security

Diversity of the guests (different cultures, more women travelling…) Compliance with laws/regulations Use of hotels’ web sites In-room technology

Food and Beverage Management See organization chart (Excel – sheet 2) Director of Food and Beverage

The skills needed by a F&B manager have grown enormously:

▪ Leadership ▪ Identifying trends

▪ Finding and keeping outstanding employees ▪ Training ▪ Motivation ▪ Budgeting

▪ Exceeding guests’ expectations ▪ Cost control

▪ Having a detailed working knowledge of the front-of-the-house operations ➢

Foods operations (reminder):

▪ Hotel restaurants are run by restaurant managers generally responsible for: • Exceeding guest service expectations

• Hiring, training and developing employees • Setting and maintaining quality standards • Marketing • Banquets • Coffee service

• In-room dining, minibars, cocktail lounge

• Presenting annual, monthly and weekly forecasts and budgets for the F&B Director ➢

Bars (reminder):

▪ Because the profit percentage on all beverages is higher than it is on food items, bars are an important revenue source for the F&B departments

▪ Normal cycle: ordering, receiving, storing, issuing, bar stocking, serving, guest billing ▪ Main responsabilities of a bar manager:

• Supervising the ordering process and storage of wines/spirits • Preparing a wine/spirit list • Overseeing the staff • Maintaining cost control

• Assisting guests with their wine selection • Proper service of wine

• Knowledge of beers, wines and liquor and their service

▪ Bar efficiency is measured by the pour/cost percentage (cost of depleted inventory – low level divided by sales over a period of time)

▪ The director of F&B must set strict policy and procedure guidelines and see to it that they are followed (must install and ensure responsible alcoholic beverage service  bar’s liability by Administration/authorities

▪ Another risk bars encounter is pilferage (theft)

• Dilute liquor with water of colored liquids • Sell additional liquor and pocket the money

•  you need a good control system, including shoppers (people paid to use the bar like regular guests and closely watching the operation) – Invité Mystère

▪ In large hotels there are several dins of bars: • Lobby bar • Restaurant bar • Service bar

• Catering and banquet bar • Pool bars • Minibars • Night clubs • Sports bars • Casino bars ➢

Catering Department (Excel – sheet 3)

▪ Catering includes a variety of occasions when people may eat at varying times ▪ Banquets and Catering are often used interchangeably ▪ The Director of Catering must be able to do the following: • Sell conventions, banquets • Lead a team of employees

• Together with input from team members, make up departmental goals objectives

• Set individual and department sales and cost budgets • Set service standards

• Ensure that the catering department is properly maintained

and

• Be extremely creative and knowledgeable about food, wine and service

• Be very well versed in the likes, dislikes and dietary restrictions of various ethnic groups (Jewish, Middle Eastern, European…)

▪ Catering services manager (CSM)

• He has the enormous responsibility of delivering higher-than-expected service levels to guests

▪ Mains duties:

• Directing the service of all functions

• Supervising the catering housepersons in setting up the room

• Scheduling the banquet chef to check menus and servicer arrangements • Checking that the client is satisfied with the room setup, F&B and service • Checking last-minute details

• Making out client bills immediately after the function

• Adhering to all hotel policies and procedures that pertain to the catering department • Calculating and distributing the gratuity and service charges for the service personnel

• Coordinating the special requirements with the DOC and catering coordinator ➢

Trends in lodging food and beverage operations

The use of branded restaurants instead of hotels operating their own

restaurants

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Hotels opting not to offer F&B outlets

Making restaurants and beverage outlets more casual Using themes for a restaurant

Standardized menus for all hotel restaurant in a chain

Many hotels are converting one of the beverage outlets into sports-themed bar

➢ Technology is being used to enhance guest services and control costs in all

areas of a hotel, including guest ordering and payment, food production, refrigeration, marketing, management control, communication

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More low-fat low-carb menu items (ecology, dietetics…) Restaurants, Managed services an Beverages Trends in the restaurant business

Demographics: as the baby boomers move into middle age and retirement, a

startling statistic is emerging:45 to 65 years olds – age with the highest income – will make up almost 1/3 of the population of major developed countries  one of the largest (the largest in some countries) demographic group will have the most money and will offer opportunities for restaurants that meet their needs

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Branding: restaurant operators are using the power of branding, both in terms

of brand-name recognition from a franchising viewpoint and in the products utilized

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Alternative outlets: restaurants face increased competition from convenience

stores (c-stores) and home meal replacement outlets

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Globalization: continued transnational development of restaurants crossing

borders ( glocalization)

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Diversification: continued diversification within the various dining segments Shared locations: more twin and multiple locations – restaurants such as Pizza

Hut and KFC will share locations

➢ stations)

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Trends in the restaurant operations More flavourful food

Increased takeout meals, especially at lunch, and more home meal replacement Points of service: more points of service needed and developed (ex at gas

for dinner

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Increased food safety and sanitation

Guests becoming more sophisticated and needing more things to excite them More food court restaurants in malls, movie theatre complexes, and colleges

and universities where guests line up (similar to cafeteria), select their food and pay at cashier

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Steak houses becoming more popular

With more restaurants in each segment, the segments increasingly split into

upper, middle and lower tiers

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Twin and multirestaurant locations

Quick-service restaurants (QSRs) in convenience stores (c-stores) Difficulty in finding good employees (in many countries) Work laws in France (number of hours, work on Sunday…) Trends in managed services

College and university foodservice managers face increasing challenges: the

reduction of revenues from board-plan sales in addition to increased costs such as food and utilities

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Increased use of smart cards, contact less card/devices, cards at vantage points

to provide services to users

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Increased use of food-to-go

24 hour foodservice for those clients who need round-the-clock service Increased business in health care and nursing homes

Proliferation of branded concepts in all segments of managed services,

including military, school and college, business and industry, health care, and airports

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Development of home meal replacement options in each segment of the

managed services sector, as a way to increase revenue

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Increasing use of fresh product. People are more health conscious and want

healthy produce

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Trends in the beverage industry The comeback of cocktails Designer bottled water

Microbreweries (craft breweries that produce up to 15,000 barrels of beer a year

– local beers with various flavours

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More wine consumption, but good wines, at fair price New countries coming into the market Increase in coffeehouses and coffee intake

Increased awareness and action to avoid irresponsible alcoholic beverage

consumption

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An increase in beverages to attract more female participation An increase in the number and variety of “energy drinks” Recreation, Theme Parks, Clubs and Gaming Entertainment Trends in recreation and leisure An increase in all fitness activities A surge in travel and tourism

In addition to a continuation of traditional recreation and leisure activities,

special programs targeted toward at-risk youths and latchkey children are also being developed (especially in USA)

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Several additional products in the commercial sector

Additional learning and adventure opportunities for the elderly Trends in the gaming entertainment industry

➢ Gaming entertainment is depending less on casino revenue and more on room,

food and beverage, retail and entertainment revenue for its profitability and growth

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The gaming entertainment industry and lodging industry are converging as

hotel room inventory is rapidly expanding in gaming entertainment properties

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Gaming entertainment, along with the gaming industry as a whole, will

continue to scrutinized by government and public policymakers as to the net economic and social impact of its activities

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As the gaming entertainment industry becomes more competitive, exceptional

service quality will become an increasingly important competitive advantage for success

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The gaming entertainment industry will continue to provide management

opportunities for careers in the hospitality business

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Meetings, Conventions and expositions

Trends in meetings, conventions and expositions More people are going abroad to attend meetings

Competitiveness has increased among all destinations. Convention centers will

expand and new centers will come online

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The industry needs to be more sophisticated. The need for fiber optics is

present everywhere

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Shows are growing at rate of 5 to 10% per year

Compared to a few years ago, large conventions are not as well attended, and

regional conventions have more attendees

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Worldwide crisis, new technologies (internet, web conference) are changing the

way of managing large companies  less conference and meeting replaced by video conferences and intranet messages

Trends in special event industry

➢ The special event industry is forecast to grow because clients want ever more

spectacular events

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Events are increasingly more complex involving multimedia presentations,

elaborate staging, and frequently upscale food and beverage service

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Technology presents both an opportunity and a challenge, an opportunity in

that it can facilitate event planning and management, and a challenge in that new software programs must be mastered