Hotel Operations Management Chapter 1
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Questions and Answers

What is the definition of hoteliers?

  • Management company owners
  • Professionals who work in the hotel and lodging business (correct)
  • Tourism industry leaders
  • Traveling public

    • The tourism industry includes businesses that cater to the needs of the local population.

    False

    Who are Hotel Guests?

    A person who rents rooms and/or purchases food or beverages at a lodging property.

    What are the common hotel classifications based on price?

    <p>Upscale, Mid-price, Economy, Budget</p> Signup and view all the answers

    Match the department types in a hotel with their functions:

    <p>Line Department = Directly responsible for revenues and property operations Staff Department = Provides technical and supportive assistance to line departments Revenue Center = Generates revenue for the hotel Cost Center = Incurs costs in support of revenue centers</p> Signup and view all the answers

    What department is responsible for accounting for hotel assets and liabilities?

    <p>Controller</p> Signup and view all the answers

    What is the responsibility of the Director of Sales and Marketing (DOSM)?

    <p>Revenue production and hotel promotions</p> Signup and view all the answers

    The Chief Engineer is responsible for food and beverage production and service.

    <p>False</p> Signup and view all the answers

    The Executive Housekeeper is responsible for maintaining property ________.

    <p>cleanliness</p> Signup and view all the answers

    Match the following GM responsibilities with their descriptions:

    <p>Food and Beverage Director (F&amp;B Director) = Food and beverage production and service Director of Security = Guest, employee, and property safety and security Executive Housekeeper = Property cleanliness Chief Engineer = Upkeep of the hotel’s physical facility</p> Signup and view all the answers

    What is the focus of the General Manager in ensuring effective guest and property safety?

    <p>Ensure effective guest and property safety and security programs are in place and documented.</p> Signup and view all the answers

    What are the key skills that a General Manager needs to possess?

    <p>Technical Skills</p> Signup and view all the answers

    Match the following skills with their descriptions:

    <p>Conceptual Skills = Ability to collect, interpret, and use information logically Interpersonal Skills = Ability to understand and interact well with people Administrative Skills = Ability to organize and direct required work efforts Technical Skills = Ability to perform job-specific aspects</p> Signup and view all the answers

    GMs in contemporary management focus on team problem-solving and employee facilitation skills.

    <p>True</p> Signup and view all the answers

    On-boarding is the process by which a new employee is welcomed by and integrated into the _____.

    <p>hotel</p> Signup and view all the answers

    What are some factors affecting decisions according to the text?

    <p>All of the above</p> Signup and view all the answers

    Define delegation according to the text.

    <p>Delegation involves assigning specific duties and responsibilities to an employee, granting them sufficient authority to carry out the assignment.</p> Signup and view all the answers

    Grapevine is __________ communication that flows throughout a property.

    <p>informal</p> Signup and view all the answers

    Effective communication at a hotel can be encouraged by managing a professional environment.

    <p>True</p> Signup and view all the answers

    What are the Six Components of Quality in the Hospitality Industry?

    <p>Ingredient 1: Consider the guests being served, Ingredient 2: Determine what the guests desire, Ingredient 3: Develop procedures to deliver what guests want, Ingredient 4: Train and empower staff, Ingredient 5: Implement revised systems, Ingredient 6: Evaluate and modify service delivery systems</p> Signup and view all the answers

    GMs wear many hats, the individual responsible for final decision-making regarding property-specific operating policies and procedures. GM stands for _______.

    <p>General Manager</p> Signup and view all the answers

    What are the three elements that make up the concept of 'Value' in the context of guest service?

    <p>Guest's perception of price</p> Signup and view all the answers

    Moments of truth in guest service can only have a negative impact on a guest's impression of a hotel.

    <p>False</p> Signup and view all the answers

    Match the GM responsibility with its description:

    <p>Investor Relations = Communicate with investors and owners about performance and future needs Executive Committee Facilitation = Lead meetings for decision-making Standards Modeling = Set an example by adhering to high standards Brand Affiliation Management = Oversee the hotel's brand relationships Community Relations = Engage with the local community for positive impact</p> Signup and view all the answers

    What is the main responsibility of a controller?

    <p>Oversee the bookkeeping and accounting functions</p> Signup and view all the answers

    What are some revenue generation sources typically considered in revenue forecasts? (Select all that apply)

    <p>Transient guest rooms</p> Signup and view all the answers

    ______ is the price at which a hotel sells its guest rooms when no rate discounts of any kind are offered to guests.

    <p>Rack Rate</p> Signup and view all the answers

    An Annual Budget coincides with a calendar year.

    <p>True</p> Signup and view all the answers

    What are some examples of employment records typically maintained by an organization? (Select all that apply)

    <p>Employment Eligibility Verification (I-9)</p> Signup and view all the answers

    What is the main focus of internal recruiting?

    <p>Focusing on current staff for vacant positions</p> Signup and view all the answers

    External recruiting involves hiring from outside sources.

    <p>True</p> Signup and view all the answers

    Orientation programs aim to reduce new employee ____, improve morale, and provide consistency.

    <p>anxiety</p> Signup and view all the answers

    Match the following with their descriptions:

    <p>Direct Compensation = Salaries, Bonuses, Wages, Commissions Indirect Compensation = Health Insurance, Paid Vacation Managing a Benefits Program = Determine objectives, Communicate benefits' value, Monitor Costs</p> Signup and view all the answers

    What are some duties of a Line Manager in Human Resources? (Select all that apply)

    <p>Providing departmental-specific orientation</p> Signup and view all the answers

    What are Line Managers responsible for? (Select all that apply)

    <p>Performance evaluation</p> Signup and view all the answers

    HR personnel are responsible for assisting in hotel operations by developing HR policies.

    <p>False</p> Signup and view all the answers

    What do job descriptions in Human Resources typically include?

    <p>A list of tasks that an employee must be able to effectively perform in a specific position.</p> Signup and view all the answers

    Bona Fide Occupational Qualifications include qualifications judged reasonably necessary to safely or adequately perform all tasks within the job, such as language skills and __________.

    <p>Previous experience</p> Signup and view all the answers

    What is the formula for the Balance Sheet?

    <p>Assets - Liabilities = Owners' Equity</p> Signup and view all the answers

    What does the Balance Sheet report detail?

    <p>Assets, liabilities, and owners' equity</p> Signup and view all the answers

    Assets represent the amount of ______ and property owned by a business.

    <p>cash</p> Signup and view all the answers

    Liabilities are the amount a business owes to others.

    <p>True</p> Signup and view all the answers

    Study Notes

    The Accounting Systems

    • The controller's main responsibility is to oversee bookkeeping and accounting functions, including developing systems for collecting and reporting financial information, analyzing financial data, and making finance-related recommendations.

    The Accounting Function: Uniform System of Accounts for Lodging Industry

    • Centralized Accounting System: a financial management system that collects accounting data from individual hotels, combines and analyzes it at a central site.
    • Decentralized Accounting System: a financial management system that collects accounting data from individual hotel sites, combines and analyzes it at the same site.

    Accounting Tasks

    • The controller manages various accounting tasks, including:
      • Revenue forecasts
      • Budgets
      • Internal controls and reports
      • Financial statement preparation and analysis
      • Audits

    Accounting Tasks: Revenue Forecasts

    • Revenue generation sources include:
      • Transient guest rooms
      • Guest laundry
      • In-room movies
      • Telecommunications
      • Food
      • Beverage
      • Business centers
      • Meeting and conference room rentals
      • Group guest rooms
      • Tennis/Pro shop
      • Golf course/Pro shop
      • Health club/Spa
      • Casino/Gaming outlets
      • Retail outlets
      • Salons (Barbershops/Beauty parlors)
      • Parking garage

    Accounting Tasks: Budgets

    • Budgets assist hotels by:
      • Allowing management to anticipate and prepare for future business conditions
      • Providing a communication channel for hotel objectives
      • Encouraging department managers to establish operating objectives and evaluation techniques
      • Providing the GM with reasonable estimates of future expense levels and serving as a tool for determining future room rates and price structures
    • Types of budgets include:
      • Long-range budgets (2-5 year period) for long-term planning
      • Annual budgets that coincide with a calendar year
      • Monthly budgets that help determine progress toward annual budget goals

    Accounting Tasks: Internal Controls and Reports

    • Internal controls and reports include:
      • Cash handling procedures to prevent fraud
      • Accounts Receivable management, including direct bill and credit purchases
      • Accounts Payable management, including payment of proper amounts, timely payment, proper record-keeping, and assignment to appropriate departments
      • Daily Operating Statistics, including:
        • Manager's Daily Sales Report
        • Property Management System (PMS) for managing rooms revenue, room rates, and reservations
      • Detailed Room Revenue Statistics, including:
        • Night Auditor review and summary of guest transactions
        • Allowances and adjustments for errors or guest appeasement
        • Room revenue report with data on rooms available, occupied, and occupancy percent
        • Average Daily Rate (ADR) and RevPar by guest type### Overview of the Hotel Industry
    • Hotel industry is part of the tourism industry, which is one of the top 10 largest industries in 49 of the 50 states in the US.
    • Tourism industry segments include hospitality (lodging operations and food & beverage operations), retail (shopping stores), transportation services, and destination (activity) sites.

    Lodging Is Part of the Tourism Industry

    • Lodging industry offers a range of property alternatives, including destination resorts, full-service hotels, select-service hotels, and hostels.
    • Other types of lodging properties include private clubs, casinos, cruise ships, time-share condominiums, campground lodges, all-suites, extended-stay, and bed and breakfast (B&B).

    Close Look at Lodging Organizations

    • Lodging properties can be classified as upscale, mid-price, economy, or budget.
    • Guests can be categorized as business travelers (41%) or pleasure travelers (59%).
    • Lodging industry characteristics include emphasis on safety, cleanliness, and service, inseparability of manufacture and sales, perishability, repetitiveness, and labor intensity.

    Hotel Ownership, Management, and Organizational Alternatives

    • Hotel ownership alternatives include independent ownership, franchise company (franchisor) ownership, and management company ownership.
    • Hotel management alternatives include independent management, franchise company (franchisor) management, and management company management.
    • Hotel property affiliation alternatives include franchise affiliation, non-franchise affiliation, and no affiliation.

    Hotel Organizational Structures

    • Small hotels typically have a manager, executive housekeeper and staff, front office manager and staff, maintenance chief and staff, and a bookkeeper/accountant.
    • Large hotels typically have an administrative assistant, general manager (GM), food and beverage director, human resources manager, director of sales and marketing, executive housekeeper, chief engineer, and assistant to the GM.

    Hotel Departments

    • Line departments are directly responsible for revenues and include front office, food and beverage, housekeeping, and maintenance.
    • Staff departments provide technical, supportive assistance to line departments and include purchasing, human resources, and accounting.
    • Revenue centers are departments that generate revenue, including front office and food and beverage departments.
    • Cost centers are departments that incur costs in support of a revenue center, including marketing, maintenance, accounting, human resources, and security departments.

    Current Industry Challenges

    • Management and operating challenges include labor shortages, cost containment, and increased competition.

    • Marketing and sales challenges include increased market segmentation, brand overlap, increased sophistication of guests, and increased number of amenities.

    • Technology challenges include recent innovations such as interactive reservation systems, data mining technology, room-rate management, social media technology, and cloud-computing.

    • Economic challenges include the impact of economies on the financial success of lodging organizations and the effects of pandemics or fear of pandemics on the lodging industry.### GM Responsibilities

    • Executive Operating Committee (EOC) comprises department heads responsible for departmental leadership and property administration

    • Members of the EOC include:

      • Assistant GM (AGM) - tasks as assigned by the GM
      • Controller - accounting for hotel assets and liabilities
      • Human Resource Manager - hotel staffing needs
      • Director of Sales and Marketing (DOSM) - revenue production and hotel promotions
      • Front-Office Manager (FOM) - guest services and sales
      • Revenue Manager (RM) - rooms pricing and rooms inventory allotment
      • Executive Housekeeper - property cleanliness
      • Chief Engineer - upkeep of the hotel's physical facility
      • Food and Beverage Director (F&B Director) - food and beverage production and service
      • Director of Security - guest, employee, and property safety and security

    GM Facilitation

    • To manage EOC facilitation successfully, GMs must exhibit:
      • Good listening skills
      • Ability to evaluate and implement managerial training and development programs
      • Assistance in professional improvement and growth of the EOC team

    Property Management

    • GMs are responsible for:
      • Planning - establishing goals and objectives
      • Organizing - maximizing deployment of resources
      • Staffing/directing - providing leadership
      • Controlling/evaluating - measuring and evaluating results

    Performance Measurement

    • Key performance indicators:
      • Average Daily Rate (ADR) - total rooms revenue divided by total number of rooms sold
      • Revenue per Available Room (RevPAR) - rooms revenue divided by rooms available for sale

    GM Talents

    • Organizational and coaching skills
    • Analytical and financial analysis skills
    • Ability to anticipate guest needs
    • Competitive spirit and high attention to detail

    Standards Modeling

    • High personal standards of ethical behavior
    • Even temperament
    • Real commitment to guest service

    Brand Affiliation Management

    • Property-level brand management includes:
      • Continually monitoring operational standards
      • Communicating with the franchise about marketing and sales programs
      • Improving profitability by using services and programs offered by the brand
    • QA Scores - the result of annual inspections conducted by a franchise company to ensure brand standards are met

    Community Relations

    • Opportunities to assist the local community:
      • Attracting new businesses
      • Expanding tourism opportunities
      • Providing input regarding local business community needs
      • Holding charity events and fundraisers at the hotel
    • GM talents required:
      • Outgoing personality
      • Well-developed social skills
      • Effective public speaking and presentation skills

    GM Skills Development

    • Formal education:
      • Hotel Administration
      • Hospitality Business
      • Hotel and Restaurant Management
      • Hospitality Administration
      • Restaurant, Hotel, and Institutional Management
      • Hospitality Management
      • Tourism Administration
      • Culinary Arts
    • On-property training:
      • OJT (on-the-job training) - learning activities designed to enhance skills of current employees
      • OJT trends/focuses for hotel GMs:
        • Impact of advancing technology
        • Impact of a changing workforce
    • Professional development:
      • Business associations:
        • Membership benefits/activities
        • Networking opportunities
        • Timely publications and seminars
      • Trade associations:
        • Serve certification, educational, social, and legislative needs of their members
        • Hold monthly and annual gatherings
        • Offer educational seminars/workshops
        • Hold trade shows
        • Trade publications

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    Description

    This quiz covers the basics of the hotel industry, including its components and tourism industry overview. It's based on Chapter 1 of the 3rd Edition of Hotel Operations Management.

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