Hotel Organizational Structure

Hotel Organizational Structure

• A hotel now refers to lodging for customers in exchange for payment
• Hotels today face competition due to increased customer expectations for their services
• Hotels are organized with revenue and cost centers working together

Revenue and Cost Centers

• Revenue centers are income-generating departments called the "front-of-the-house"
• Examples of revenue centers: rooms, food and beverage, laundry
• Cost centers support income-generating departments and are called the "back-of-the-house"
• Examples of cost centers: accounting, human resources, and engineering

Key Hotel Executives

• A hotel's organizational structure depends on size, type, and service level
• General Manager (GM) deals with the business owner, responsible for overall hotel performance
• Resident Manager, also known as the hotel or house manager, manages daily operations and reports to the GM

Hotel Departments and Rooms Division

• Large hotels require various skills, so the workforce is separated into specialized departments
• Rooms division is responsible for managing rooms, the core product
• Rooms division is the "nerve center" for revenue generation
• Three major departments comprise the rooms division: front office, housekeeping, loss prevention and security

Front Office (FO)

• The front office is the "command center" or "communications hub"
• The front office is highly visible due to frequent guest interaction
• The front office has five sub-units: reservations, front desk, PBX, uniformed services, and night audit

Front Office Sub-Units

• Reservations, or transient room sales, maximizes revenue through room bookings
• Front Desk/Reception manages guest inflow/outflow and disseminates information
• Private Branch Exchange (PBX), or switchboard, handles guest calls, messages, and wake-up calls
• Uniformed Services, or guest services, assists guests with requests, including parking, valet, and concierge
• Night Audit reconciles daily transactions for reporting, typically working late at night

Front Office Manager (FOM)

• The Front Office Manager is the department head in charge of daily operations and uniformed services
• Responsibilities include training staff on the Property Management System (PMS)
• The department head also trains staff on hotel policies
• Budgetary guidelines are established with the rooms division director and resident manager
• The FOM reports to the Director of Rooms Division and supervises front office personnel

Front Office Staff Roles

• Reservations Manager/Supervisor: Manages staff schedules and booking decisions based on occupancy
• Reservations Clerk/Staff: Handles incoming reservations, maintains room inventory, and coordinates promotions
• Doorperson/Lobby Greeter: Greets guests, assists with entry, and hails taxis
• Valet Attendant: Parks and retrieves guest cars
• Parking Attendant: Manages the hotel parking garage
• Bell Staff: Assists guests with luggage
• PBX/Switchboard Operator: Manages phone communications
• Concierge Staff: Handles inquiries, guest needs, keys, mail, and other special requests, and provides security
• Guest Relations Officer (GRO): Builds relationships with guests, assists VIPs, and handles issues
• Front Desk Manager/Supervisor: Trains, supervises, and motivates front desk staff, and maximizes revenue.
• Front Desk Agent: Verifies reservations, registers guests, assigns rooms/keys, answers inquiries, and assists the housekeeping department
• Front Desk Cashier: Monitors guest history, posts charges, handles payments, and resolves minor disputes
• Night Auditor: Balances daily transactions, prepares reports, and acts as a desk clerk during the night shift

Guest Cycle Phases

• The front office is the "face" of the hotel, influencing first impressions
• The primary function is to support guest transactions and services
• The guest cycle includes pre-arrival, arrival, occupancy, and departure stages
• Interactions and transactions occur between guests and staff at each stage

Pre-Arrival Stage

• Guests make reservations via walk-in, phone, email, or the hotel's website
• Reservations ensure accommodation and enable better management of the guest experience
• Bookings must be recorded, and the front office needs a list of arrivals with relevant details

Arrival Stage

• Guests physically encounter the hotel, and arrival chronology categorizes the stages

1. Greeting: Uniformed services create a favorable impression
2. Registration: Fulfills requirements; front desk ensures guest satisfaction
   • The 10 x 10 rule: a guest’s impression is made within 10 minutes, and the front desk must greet guests from 10 feet away
3. Transition: Bell staff escorts guests, explains features, delivers items, and inspects the room

Occupancy and Departure Stages

4. Completion: Tasks such as updating records and opening billing accounts are done

• Occupancy is the period of the guest's stay, where the front office works as a liaison
• The hotel should aim to provide a home-like atmosphere and additional services
• Hotel follows hospitality duties: accommodation, additional services, guest care, and safety of belongings
• Departure: Guests check out, late charges are posted, and the objective is a quick account settlement
• A guest's departure experience will determine their lasting impression