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Institute of Hotel Management, Pusa, New Delhi
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This document provides an introduction to the travel and tourism industry, defining tourism and outlining its various aspects. It covers different types of tourism, including international and domestic tourism, and explores the historical context of hospitality.
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INSTITUTE OF HOTEL MANAGEMENT, PUSA, NEW DELHI PRE-MODULE GUIDED STUDY / STUDENT HANDOUT _________________________________________________________________________________ Unit-1: Introduction to Hospitality & Hotel Industry 1.0: Introduction to The Travel &...
INSTITUTE OF HOTEL MANAGEMENT, PUSA, NEW DELHI PRE-MODULE GUIDED STUDY / STUDENT HANDOUT _________________________________________________________________________________ Unit-1: Introduction to Hospitality & Hotel Industry 1.0: Introduction to The Travel & Tourism Industry Tourism is one of the fastest-growing industries that is a primary source of foreign exchange and also one of the largest employment generators in any economy. The word ‘tour’ is based on the Latin root ‘tornus’ which means a tool that is used for making a circle. In this context, tourism may be defined as the movement of people from their normal place of residence towards another place for a period between hours to six months with the purpose of business, leisure or any specific activity (medical visits or study excursions) with the intention to return to the original place. Based on these lines, the UNWTO defines tourists as ‘a tourist is a visitor who stays at least one night in a place outside their usual environment for leisure, business, or other purposes not related to the exercise of an activity remunerated from within the place visited’. (UNWTO, Madrid, Spain, 2008: Glossary of tourism terms) Traditionally, Indian hotel businesses have always stressed international tourists because of the greater paying propensity of foreign inbound tourists and the focus on attracting foreign exchange. However, with the onset of the COVID-19 pandemic and the consequent international border closures, hospitality and hotel companies around the world were compelled to recognize and capitalize on the available business generated at home. Thus, equal weightage was wrested on both forms of tourism: international and domestic. In reference to the above, it becomes clear that: International tourists refer to people who travel across international borders (foreign countries) for which documents such as a visa, passport, health clearance certificate, and foreign exchange certificates are necessary. In-bound: Tourists of another origin country visiting our country. For example: A French national visiting India. Outbound: Tourists travelling from the country of their origin (in this case, India) to another country. For example: An Indian national visiting France. Domestic tourists refer to people who travel within their own country. In this case, the travel is not preceded by the need to draft documents like passports and visas. In the year 1937, the League of Nations officially defined tourism as “people travelling abroad for periods of over 24 hours”. In 1942, Professors Hunziker and Krapf of Berne University attempted to define tourism as ‘a sum total of relationship and phenomena resulting from travel and stay of non-residents, in so far as stay does not lead to permanent residence and is not connected with any permanent or temporary earning activity’. The Tourism Society (the Institute of Tourism in Britain) in 1976 defined that “Tourism is the temporary short-term movement of people to destinations outside the places where they normally live and work, and undertake activities during their stay at those destinations; it includes movement for all purposes, as well as day visits and excursions.” According to Burkart and Medlik (1974), Tourism is deemed to include any activity concerned with the temporary short-term movement of people to destinations outside __________________________________________________________________________________ B.Sc. Hospitality & Hotel Administration Page 1 of 12 BMR103- Foundation of Rooms Division Operations-1-A INSTITUTE OF HOTEL MANAGEMENT, PUSA, NEW DELHI PRE-MODULE GUIDED STUDY / STUDENT HANDOUT _________________________________________________________________________________ the places where they normally live and work and their activities during their stay at these destinations. This widely accepted tourism definition has five conceptual characteristics: Tourism is an amalgam of phenomena and relationships rather than a single one. These phenomena and relationships arise from the movement of people to and from various destinations; there is a dynamic element (the journey) and a static element (the stay). The journey and stay are to and in destinations outside the normal place of residence and work, so tourism gives rise to activities which are distinct from those of the resident and working populations of the places through which tourists travel and of their destinations. The movement to the destinations is of a temporary and short-term character. Destinations are visited for purposes not connected to securing paid work – that is, not to take up employment. In 1993, the World Tourism Organization with endorsement by the Statistical Commission of the United Nations defined tourism as: “Tourism comprises the activities of persons travelling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business or other purposes.” This definition does not throw light on the “activities” undertaken, or the distance to be travelled by a tourist. 2.0: Introduction to Hospitality One of the oldest commercial activities in the world is hospitality. Hospitality, as an industry, is incentivized by the Travel & Tourism industry. It also includes a wide range of travel-related services such as the modes of travel (aviation, railways, roadways), accommodation, food and beverage, recreational and cultural activities and other such facilities required by a traveller. Today, the hospitality industry in India is estimated at USD 23.50 billion in 2023 and is expected to reach USD 29.61 billion by 2028, growing at a CAGR (Compound Annual Growth Rate) of 4.73% during the forecast period (2023-2028). Hospitality implies the service relationship between the guest and the hotel. On an attitudinal level, hospitality simply refers to the act of being hospitable. A cordial reception and entertainment of guests, providing necessary products and furnishing anticipative service, all constitute the idea of hospitability. As an industry, it is multifaceted, with a vast portfolio of products and services on offer to the guest. In a globalised world, the essence of hospitality rests in creating an environment that fosters a sense of deep care and comfort, satisfaction and genuine connection. Etymology & The Business Consequence of Hospitality The term ‘hospitality’ is based on the Latin root ‘hospes’ which refers to both a host and guest. However, in a more contemporary and commercial world, hospitality is a __________________________________________________________________________________ B.Sc. Hospitality & Hotel Administration Page 2 of 12 BMR103- Foundation of Rooms Division Operations-1-A INSTITUTE OF HOTEL MANAGEMENT, PUSA, NEW DELHI PRE-MODULE GUIDED STUDY / STUDENT HANDOUT _________________________________________________________________________________ dynamic and intricate field which blends service, culture and management. According to Brotherton and Wood (2008), hospitality involves not only the provision of accommodation and food services but also the emotional and social experiences that guests encounter during their interactions with the host organization and its staff. Through the later part of the 20th century, hospitality plays a critical role in the economy. It is a significant contributor to tourism, has a job-multiplier effect, fosters cultural exchange and thereby acts as a driving force for economic growth and development in many regions. (Pizam and Mansfeld, 1996) Creating Memorable Experiences In the paradigm-shifting 1999 book called Experience Economy, authors Pine & Gilmore, that organizations must deliver beyond offering mere services; they should aim to stage unique and memorable encounters that engage all the senses. This approach not only enhances customer satisfaction but also fosters customer loyalty and advocacy, crucial factors in sustaining a successful hospitality business. Cultural Competence & Service Delivery Cultural competence refers to the fundamental skill that involves adapting services and interactions to cater to cultural backgrounds and guest preferences, ultimately leading to the creation of a more inclusive and welcoming enterprise. Sustainability in Operations Sustainability is a key operational element of any hospitality concern in the 21st century. The industry is at a unique threshold where it faces growing pressure to minimize its carbon footprint adopt greener practices and support local economies. Sustainable enterprises are not only ethically driven but also design their operations around environment-conscious clientele. As students on the way to becoming luxury hoteliers, you must assimilate a curiosity in the diverse and ever-evolving world of hotels and hospitality and understand the drivers of business management. By understanding the cornerstone principles that drive the industry forward, you embark on a journey to become proficient and responsible custodians of the industry to assume roles as tomorrow’s leaders. Throughout your studies, you will delve deeper into the intricacies of hotel management, cultural dimensions of service delivery, effective human resource management and guest satisfaction that will prepare you for an indeed rewarding career in the most dynamic industry. __________________________________________________________________________________ B.Sc. Hospitality & Hotel Administration Page 3 of 12 BMR103- Foundation of Rooms Division Operations-1-A INSTITUTE OF HOTEL MANAGEMENT, PUSA, NEW DELHI PRE-MODULE GUIDED STUDY / STUDENT HANDOUT _________________________________________________________________________________ 2.1.: Hospitality & T&T: A symbiotic relationship As must be clear by now, travel & Tourism (T&T) and hospitality are closely intertwined with each other and act as business drivers for each other. This symbiotic relationship has fostered the growth and evolution of the industries. T&T and hospitality are based on a diverse array of services that cater to the holistic needs of travellers. Modes of travel such as aviation, railways, roadways and fundamental products like accommodation, culinary offerings, recreation, and cultural immersions, among others, are all elements in the creation of a seamless and uninterrupted travel experience. The heart of hospitality is warmth and sincerity in service delivery. Whether it’s a cordial welcome, engaging products or a genuine desire to fulfil all guest needs, all are basic parts of any hospitality operation. In the end, guests have to feel valued, comforted and well taken care of. Therefore, the realms of hospitality and T&T are intrinsically connected, leading to an inseparable alliance to shape and enrich truly global experiences. The industries grow in tandem, shaped by the ever-changing taste and preference patterns of the global traveller. Hospitality is, therefore, part of a larger enterprise known as T&T, which, in itself, is composed of a variety of businesses that sustain on a shared goal: provision of necessary and desired products and services to the discerning traveller and creating moments of WOW by anticipation of their needs. 2.1: Introduction to The Hotel Industry A hotel is defined as an establishment whose primary business is to provide lodging facilities to the guests, while also furnishing the services of food and beverage and/or housekeeping, concierge, uniformed services, laundry and dry cleaners, among others. A hotel works on a target audience and classifies itself based on the level of services it provides and the room inventory size. In India, a 5-star hotel or 5-star deluxe hotel is defined as an establishment with a minimum of 10 lettable rooms with the minimum size of a room (excluding bathroom) being 200 sq. ft. with 100% air conditioning and operational on all 7 days of the week. Additionally, it should necessarily have a 24-hour multi-cuisine restaurant/coffee shop, a speciality restaurant and round-the-clock room service. (In grade B cities, the provision of a speciality restaurant is desirable and not mandated. (HRACC, MoT, GoI) __________________________________________________________________________________ B.Sc. Hospitality & Hotel Administration Page 4 of 12 BMR103- Foundation of Rooms Division Operations-1-A INSTITUTE OF HOTEL MANAGEMENT, PUSA, NEW DELHI PRE-MODULE GUIDED STUDY / STUDENT HANDOUT _________________________________________________________________________________ 2.2: Origin of Hospitality – How the Concept of Hospitality Began to Take Shape The story of the genesis of the hotel industry is rooted in the era when travel was necessitated by the movement of people over long distances for a short amount of time. In this context, the necessity to travel was either predisposed by religious pilgrimages or by flourishing trade. 2.2.1.: Pilgrimage The first-ever tourists were the pilgrims in the Middle Ages who travelled across Europe for religious and mystical reasons. The Canterbury Tales, written at the end of the 14th century, were the first literary offering regarding travels in the Western world. When pilgrims took over an established route towards a site of pilgrimage, the first concept of inns or taverns took off. These inns were meant to serve the moving pilgrims and furnish the most basic accommodation (often, dormitory style) with or without the provision for meals. The inspiration behind such operations was to serve the pilgrims on their sacred journeys and, therefore, such establishments were not necessarily commercial in their nature. Another distinct feature that emerged as a consequence of this form of hospitality was the convergence of cultures, when pilgrims from distant and distinct lands met, a culture exchange flourished that led to the foundation of a key element in hospitality: cross-cultural exchange. Some of the examples that help understand how pilgrimages helped in the establishment of hospitality are as follows: Pilgrimage to Varanasi – Pilgrimage to the ghats and temples of Varanasi led to the establishment of dharmshala and sarais Pousadas in Italy - Santiago de Compostela, an Italian city that was birthed because of the pilgrimage to its 30 historic churches and cathedrals Minshukus and traditional Ryokans in Japan - An ancient network of pilgrimage trails in Japan led to traditional guesthouses called "minshuku" to provide lodging and meals to pilgrims. Hajj, Saudi Arabia – The most important pilgrimage in the Muslim world led to service providers for the transient pilgrims Cabarets in France: Cabarets in France historically provided entertainment, food, and drink to locals and tourists alike. While not directly tied to pilgrimage, cabarets played a role in the broader hospitality landscape by offering a space for socialization and leisure. 2.2.2.: Trade In studying the history of tourism and history, it is important to factor in the influence of trade. Trade led to some distinct civilisational changes, foremost among them was the flourishing commercial culture; people not only started having more disposable income but also led to the emergence of progressive commercial infrastructure that provided a further impetus to trade. The other changes involve cross-cultural interactions and fostering an __________________________________________________________________________________ B.Sc. Hospitality & Hotel Administration Page 5 of 12 BMR103- Foundation of Rooms Division Operations-1-A INSTITUTE OF HOTEL MANAGEMENT, PUSA, NEW DELHI PRE-MODULE GUIDED STUDY / STUDENT HANDOUT _________________________________________________________________________________ economic change that led to the emergence of tourism and hospitality as primary service providers. In this context, the Silk Route, an ancient network that connected the East and the West, saw merchants deal in not only trade but also stories and traditions. This led people to look forward to maiden experiences and new places and the desire to explore uncharted destinations and communities. With maritime developments in the 15th and 16th centuries, the age of explorations started when voyagers embarked on unmapped maritime routes to discover lands and cultures that could bolster trade and companionship. Such voyages usually meant that the sailors had to leave their homes for months, and even years. The travellers naturally made elaborate journals of their travel accounts and this led to the earliest travelogues that led to inspiring the general masses to travel. The 18th century brought with it the precursors of the earliest forms of modernism with the Industrial Revolution. Trains and steamships now conveyed thousands of people across larger distances and in shorter times. With this new-found accessibility and convenience in transportation and infrastructure, there was an imminent rise in leisure time and disposable income. This, naturally, led to tourism and hospitality becoming a mass phenomenon. In tandem with the growth of tourism, the hospitality industry evolved to cater to the needs of travellers. Hotels, inns, and restaurants sprang up to provide accommodations and meals, creating a symbiotic relationship with the tourism sector. As tourism continued to flourish, hospitality establishments adapted and innovated to meet the diverse expectations of travellers, leading to the sophisticated industry we know today. In conclusion, trade catalysed the emergence of modern-day tourism and hospitality. It fostered cultural exchange, ignited curiosity, and inspired exploration, ultimately laying the foundation for an industry that now connects people from all corners of the world, promoting understanding and enriching our global cultural tapestry. 2.3.: Origin & Evolution of the Hotel Industry The history of modern-day hotels is long and evolutionary. Innovation in hotels is an important aspect of the business culture and even today, hotel companies are spearheading innovation in design and service. While the concept of hotels is contemporary and modern hotel business can be said to have started only in the 19th century, the emergence of inn-keeping and the concepts of hospitality started with the need among populations to travel. In the beginning, this need to travel was borne by spiritual and sacred journeys or pilgrimages. Inns and taverns that were established to cater to pilgrims were not necessarily profit-oriented because the primary purpose was to serve the pilgrim and participate in his pilgrimage. Slowly as societies advanced and the concept of trade picked up, the different trade routes led to the creation of hospitality establishments to cater to the needs of the trading travellers. In Europe, the concept of organised hospitality started while modern-day hotels can be attributed to North America which sowed the seeds of a more commercial and competitive hotel business. From rudimentary inns with the provision of the most basic facilities to the modern state-of- the-art hotels that consider it a cardinal sin to turn any guest request away, the hotel industry __________________________________________________________________________________ B.Sc. Hospitality & Hotel Administration Page 6 of 12 BMR103- Foundation of Rooms Division Operations-1-A INSTITUTE OF HOTEL MANAGEMENT, PUSA, NEW DELHI PRE-MODULE GUIDED STUDY / STUDENT HANDOUT _________________________________________________________________________________ has certainly come a long way. For simplicity, let us divide the story of the evolution of our industry into the following periods: the Ancient Era, the Grand Tour and the Modern Era. 2.3.1.: Ancient Era The earliest civilisations in which the concept of lodging can be found are the Greek and Roman. In such early societies, travel was prevalent owing to religious and economic reasons. Soon, the urge to explore new lands to aid territorial expansions and economic growth led to the necessity for places to shelter and eat feast. In ancient Rome, "mansiones" were established along the extensive Roman road system. These "mansiones" were crucial for the Roman Empire's efficient administration and military movement. A well-known example is the ‘Taberna Meritoria’, which served as a roadside inn offering not only lodging but also food and facilities for travellers and their horses. The Roman "mansiones" laid the foundation for the later development of inns and hotels, emphasizing the importance of convenience and services for travellers. During the Middle Ages (5th-15th century), inns and taverns thrived along European trade routes, serving merchants, pilgrims, and travellers. Monasteries, like Saint Benedict's "Hospitale" in Monte Cassino, offered lodging, meals, and spiritual comfort in scenic locations. These facilities were pivotal for trade and culture in that era. Soon, the world saw advancements that were once considered impossible for humanity: steam engines powering bustling factories, electric light illuminating cities at night, telegraph wires connecting continents, and automobiles revolutionizing transportation. This period came to be called the Grand Tour. 2.3.2.: Grand Tour The hotel business changed upon the arrival of the Grand Tour. This was a significant period in time that revolutionized the laid the foundation of modern hospitality. This period ranged between the 17th and 19th centuries, wherein, a cultural and educational phenomenon was underway, mostly involving young aristocrats. The opportunity to explore and experience newer destinations in the European continent led to a surge in the demand for better and more upscale suitable services. Tourists usually started travelling through countries like France, Italy, Greece and Switzerland. Grand Tourists typically embarked on journeys through countries like France, Italy, Greece, and Switzerland. In Venice, Danieli Hotel enjoyed popular patronage among the elite due to its luxurious accommodations and awesome views of the lagoon. Cecil Hotel in London was another notable stop, renowned for hosting Grand Tourists as they explored the British capital. The Grand Tour was borne not only from a desire to explore and have adventures but also undertaken an educational journey, with travellers visiting cultural and historical sites, art collections, and attending social events. The Grand Tour played a pivotal role in the development of the hotel industry by creating a demand for lodging and services catering to elite travellers. Hotels often adapted to the preferences of Grand Tourists, offering luxurious amenities, fine dining, and opportunities to engage with local culture and art. __________________________________________________________________________________ B.Sc. Hospitality & Hotel Administration Page 7 of 12 BMR103- Foundation of Rooms Division Operations-1-A INSTITUTE OF HOTEL MANAGEMENT, PUSA, NEW DELHI PRE-MODULE GUIDED STUDY / STUDENT HANDOUT _________________________________________________________________________________ The legacy of the Grand Tour lives on in modern tourism, with travellers continuing to seek cultural enrichment and immersive experiences. Many of today's luxury hotels and boutique properties often draw inspiration from the grandeur and elegance associated with the Grand Tour era. Some other properties from the Grand Tour era are listed for your knowledge: Café de la Paix, Paris: Although not a traditional hotel, Café de la Paix in Paris, France, opened in 1862 and quickly became a popular gathering place for Grand Tourists. It was known for its luxurious ambience and proximity to famous landmarks like the Paris Opera. Hotel de Russie, Rome: The Hotel de Russie in Rome, Italy, has a rich history dating back to the early 19th century. It was a favoured choice among Grand Tourists for its elegance and a central location near the Spanish Steps and other attractions. Schweizerhof Hotel, Lucerne: The Schweizerhof Hotel in Lucerne, Switzerland, has been welcoming guests since 1845. Located in a picturesque setting, it attracted Grand Tourists seeking a comfortable and scenic retreat in Switzerland. Hotel d'Angleterre, Copenhagen: The Hotel d'Angleterre in Copenhagen, Denmark, was established in 1755. It was a popular stop for Grand Tourists exploring Northern Europe and was known for its opulent accommodations and fine dining. Hotel Grande Bretagne, Athens: The Hotel Grande Bretagne in Athens, Greece, has a history dating back to the mid-19th century. It was a favoured choice among Grand Tourists visiting Greece for its luxurious amenities and proximity to historical sites like the Acropolis. 2.3.3.: Modern Era The modern era saw the world evolve in an unfathomable way. With evolving technology and modes of transport, frequent and longer trips were enabled. The introduction of Funiculars (ropeway) in Europe led to the accessibility of high-altitude mountains that promised the perfect location for a hotel and aspiring travellers. Bürgenstock and Giessbach were among the first hotels in Switzerland to develop around ropeway systems. The growth of hotels witnessed a pause with the two great wars of the twentieth century. Travel and leisure businesses were lackadaisical. However, with the development of aircraft and the success of commercial aircraft, the late 1950s saw improved travel across the globe while significantly augmenting the hotel business. Modern-day hotels owe their existence to visionary entrepreneurs in the United States. The City Hotel in New York started in 1794 was the first hotel to attract socialites and create significant room revenue for its 73-room inventory. This led to a race among hoteliers to improve their services and new hotels started coming up. The Exchange Coffee House in Boston, the Second City Hotel in Baltimore and the Mansion House in Philadelphia are all examples of hotels in the USA that led the charge. The Tremond House in Boston is another evolutionary hotel that is considered the frontrunner of luxury hotels in the USA. The 170- __________________________________________________________________________________ B.Sc. Hospitality & Hotel Administration Page 8 of 12 BMR103- Foundation of Rooms Division Operations-1-A INSTITUTE OF HOTEL MANAGEMENT, PUSA, NEW DELHI PRE-MODULE GUIDED STUDY / STUDENT HANDOUT _________________________________________________________________________________ room hotel was the first hotel to provide locks, plumbing, running hot water and amenities like soaps, bowls and pitchers. It was also the first hotel that is credited with the creation of the ‘Face of the Hotel’ with the Organised Front Office Department with bellboys and reception. The spree of luxurious hotels now started and throughout the 19th and 20th centuries, the competition was marked by larger and more affluent styles. The Grand Pacific, The Palmer House, and The Palace (with the first largest inventory at the time – 800 rooms) in San Fransisco. Trade picked up in the continent and America was already being heralded as the hum of economic revolution. Statler House, Buffalo, New York, was the first exquisite business hotel with an inventory of 450 rooms that pioneered the concept of business travel. Writing desks with dedicated electric lamps, radio (for news) and secretarial services were all features of this hotel. The Great Depression (1929-1939) led to the liquidation of most hotel companies, however, a few survived and emerged stronger. In the USA, the automobile revolution in the 1950s led to the motel culture which created another lucrative hotel market that continues to exist. The USA continued to be the home for some of the most trusted hotel companies that paved the way for a stronger and more resilient approach to hotel invocation and service delivery. Today, few places are left unexplored. The traveller is often looking for unique experiences now closer to dreams and fantasies. Hotels have, therefore, become a destination in themselves, whether natural or urban, a hotel is a destination with distinct attributes. For hotels, the challenges have just started: new ambiences need to be created, existing service designs need to be improved and augmented, and guest experience should always be infallible. They should, in all regards be institutions that curate themselves to become the most special place for their patrons, by their product as well as their service, whether they are in urban hubs or special retreats far away from the hustle and bustle of every day. From renowned designers to celebrated chefs, all are given carte blanche to create a hotel that will later become the creator of unforgettable experiences and deliver unparalleled happiness. 3.0.: Hotel Companies (International & Domestic) Please refer to your class notes to understand illustrated hotel companies. Additionally, please refer to the Annexure part at the end of this handout, to create a basic understanding of some major hotel companies. 4.1.: Revenue/Non-revenue Centres Hotels function on the same primary product: rooms. However, with time, the nature of hotel operations diversified and hotels started dealing with multiple products and services. For example, some hotels may compromise their lobby area to lease jewellery, cosmetics and artefacts. Similarly, another hotel may choose to supplement its total revenue with more speciality restaurants. Therefore, all hotels’ operations may be similar but they do not have identical sources of revenue. Any hotel is comprised of ‘cost centres’ and ‘revenue centres. The word ‘centre’ refers to the identification of a specific hotel operation department, while the words ‘cost’ and ‘revenue’ refer to what type of financial operations a department performs. __________________________________________________________________________________ B.Sc. Hospitality & Hotel Administration Page 9 of 12 BMR103- Foundation of Rooms Division Operations-1-A INSTITUTE OF HOTEL MANAGEMENT, PUSA, NEW DELHI PRE-MODULE GUIDED STUDY / STUDENT HANDOUT _________________________________________________________________________________ Any hotel operating department that collects money directly for what it does is called a revenue centre. For example: the Front Desk (cashier), restaurants, lounges, and spas are revenue centres. Similarly, operating departments that incur costs but do not collect any direct money/revenue are called cost centres. For example, Engineering services, Housekeeping, Human Resources, and Training/Learning Services are examples of cost centres. To better understand, when a room is sold to a guest by the Front Desk, money is collected at the point of purchase. Therefore, the Front Desk has rendered revenue for the hotel, and, is, therefore, a revenue centre. However, when the guest is escorted to his room, he/she finds the room ready for use. Housekeeping and Engineering departments are responsible for the overall upkeep of the room. Thus, Housekeeping and Maintenance departments perform critical support services for the hotel’s revenue centres. An example of revenue generation in a hotel is illustrated below: Example of Hotel Revenue Generation Guest Room Sales Beverage Sales Food Sales Telephone & IT Rentals & Other Income Minor Operating Department 5.0.: Hotel Organisation Any organisation has a certain vision, mission, goals and objectives that it fulfils through its operational and non-operational activities. To achieve its multifarious goals, any organisation needs a formal organisational structure that can distribute the activities among themselves. Through this structure, the extent of authority and responsibility are established. Different organisations have different structures subject to multiple factors like size, objectives and strategies of the organisation. Based on the type of structure, the decision-making process can either be centralised or decentralized. In the former, decision-making power is restricted to the top management and monitored control is exercised across the divisions and departments. In the latter, __________________________________________________________________________________ B.Sc. Hospitality & Hotel Administration Page 10 of 12 BMR103- Foundation of Rooms Division Operations-1-A INSTITUTE OF HOTEL MANAGEMENT, PUSA, NEW DELHI PRE-MODULE GUIDED STUDY / STUDENT HANDOUT _________________________________________________________________________________ decision-making is distributed across departments/divisions with every department/role carrying a significant amount of autonomy. The need for an established organisation structure is more acute in hotels because of the nature of hotel operations and the significant number of people filling up the roles. The most common way to represent the organisation structure is through an organisation chart/organogram. Following are the organisation charts that are pertinent to understand in the context of Rooms Division Operations: 1. General – organisation chart for a commercial hotel 2. Front Office chart 3. Housekeeping organisation chart 4. Engineering/Maintenance organisation chart Please bear in mind that these charts are only indicative and every hotel adapts/adjusts their charts based on their specific requirements. Please refer to the Annexure section of this handout, at the end, to learn the different organisation structures. 6.0.: Reference Bardí, J. A. (2022). Hotel front office operations (7th ed.). John Wiley & Sons. Brotherton, B., & Wood, R. C. (2008). Hospitality and hospitality management: An introduction. In Handbook of hospitality management and marketing (pp. 1-21). Routledge. Kasavana, M. L. (2023). Effective front office operations (2nd ed.). Oxford University Press. Kleinfield, S. (2023). The Hotel: A Week in the Life of a Pioneer of the Hotel Industry. Simon & Schuster. Lashley, C., & Morrison, A. (2000). In search of hospitality: Towards a theoretical framework. International Journal of Hospitality Management, 19 (1), 3-15. Pine, B. J., & Gilmore, J. H. (1999). The experience economy: Work is theatre and every business a stage. Harvard Business Press. Pizam, A., & Mansfeld, Y. (1996). Tourism, crime and international security issues. Wiley. Tiwari, J. R. (2016). Hotel front office operations & management (2nd ed.). Oxford University Press. Tucker, E. (2023). A History of the Hotel Industry: Innovation, Adaptation, and Change. Routledge. Weaver, D. B., & Lawton, L. J. (2014). Twenty years on: The state of contemporary ecotourism research. Tourism Management, 45, 116-127. __________________________________________________________________________________ B.Sc. Hospitality & Hotel Administration Page 11 of 12 BMR103- Foundation of Rooms Division Operations-1-A INSTITUTE OF HOTEL MANAGEMENT, PUSA, NEW DELHI PRE-MODULE GUIDED STUDY / STUDENT HANDOUT _________________________________________________________________________________ 7.0.: Authorship This handout has been created under the mentorship of Mr. Anil Kumar Goyal, Head of Department, Rooms Division. Authored and compiled by Sankhaneel Dutta, Faculty, Institute of Hotel Management, Catering & Nutrition, Pusa, New Delhi __________________________________________________________________________________ B.Sc. Hospitality & Hotel Administration Page 12 of 12 BMR103- Foundation of Rooms Division Operations-1-A IHM PUSA | 2023 I N T E R N AT I O N A L H O T E L C O M PA N I E S Paul Dubrule & Gérard Jay Pritzker Founder Curt Carlson Conrad Hilton Pélisson Started In 1967 1962 1919 1957 Portfolio- 6100 800 5300 1600 Global Portfolio- 40 120 100 60 India B M R 1 0 3 - F O U N D AT I O N O F R O O M S D I V I S I O N O P E R AT I O N S - 1 - A HQ Paris, France Minneapolis, Beverly Hills, Chicago, Illinois, Minnesota, USA California, India USA IHM PUSA | 2023 I N T E R N AT I O N A L H O T E L C O M PA N I E S Keith Williams, David Michels, and Peter J. Willard Marriott Robert Kuok Founder Isadore Sharp Gordon Started In 1979 1927 1916 1963 Portfolio- 120 33 6000 8000 Global Portfolio- 0 160 230 20 India B M R 1 0 3 - F O U N D AT I O N O F R O O M S D I V I S I O N O P E R AT I O N S - 1 - A Denham, Maryland, USA Toronto, Ontario, Hong Kong HQ Buckinghamshire, Canada England IHM PUSA | 2023 I N D I A N H O T E L C O M PA N I E S Rai Bahadur Yogesh Chander Capt. C. P. Krishna Mohan Singh Deveshwar Jamshedji N. Tata Surrendra Paul Oberoi Nair 1903 1965 1988 1934 1975 160 27 16 32 100 ~ 85 ~ 0 22 B M R 1 0 3 - F O U N D AT I O N O F R O O M S D I V I S I O N O P E R AT I O N S - 1 - A Civil Lines, New Kolkata Kolkata Mumbai Mumbai Delhi IHM PUSA | 2023 GENERAL HOTEL ORGANISATION Hotel General Manager Sales & Marketing Food & Beverage Food & Beverage Human Resources Front Office Housekeeping Service Production Learning & Discussed Control Desk Restaurants Garde Development Subsequently Manger Linen & Bars Rotisserie Engineering & Uniform Banquets Maintenance Room Potage Sewing Room Room Service Finance Poisson / IRD Laundry Bakery & Purchase/Procurement Banquets & Patisserie Landscaping/ ODC Sauces Security / Loss Gardening Prevention BMR103- FOUNDATION OF ROOMS DIVISION OPERATIONS-1-A (THEORY) Speciality Unit 1 Part 2 Kitchens IHM PUSA | 2023 FRONT OFFICE ORGANISATION – BROAD FRAMEWORK Front Office Information Travel Reservations Reception Cashier Communication Desk Desk Uniformed Service Bell Desk Concierge BMR103- FOUNDATION OF ROOMS DIVISION OPERATIONS-1-A (THEORY) Unit 1 Part 2 IHM PUSA | 2023 TYPICAL FRONT OFFICE ORGANISATION STRUCTURE General Manager Front Office Manager Assistant Front Office Manager Hotel Manager / Resident Manager Guest Relation Lobby Manager Executive Rooms Division Manager Supervisor Supervisor Supervisor Reservation Information Telephone Supervisor Supervisor Supervisor Reception Bell Desk Cash & Bill (Receptionist) (Sr. Bell (Head Cashier) Captain) Reservation Information Sr. Telephone Assistant Assistant Operator Cashier Receptionist Bell Captain Telephone Trainees Operator Trainees Trainees Bell Boys BMR103- FOUNDATION OF ROOMS DIVISION OPERATIONS-1-A (THEORY) Trainees (Page Boys) Trainees Unit 1 Part 2 IHM PUSA | 2023 HOUSEKEEPING ORGANISATION Executive Housekeeper Assistant Housekeeper Deputy Housekeeper(s) Head Florist Linen/Unifor Control Desk Public Area Floor Supervisor Night Supervisor Horticulturist m Room Supervisor Supervisor Supervisor Florist Room Night Room Tailor Storekeepers Attendant Head Attendants Head Cloak Room Upholstery Valets Horticulturist Housepersons Attendant Attendant/ Housepersons Horticulturist Maid Housepersons (Gardener) BMR103- FOUNDATION OF ROOMS DIVISION OPERATIONS-1-A (THEORY) Unit 1 Part 2 IHM PUSA | 2023 HOUSEKEEPING ORGANISATION Continued – Executive Housekeeper Contract Service Laundry Manager Provider Laundry Contract Service Supervisor Supervisor Washers, Contract Service Pressmen, Spotters Worker BMR103- FOUNDATION OF ROOMS DIVISION OPERATIONS-1-A (THEORY) Unit 1 Part 2 IHM PUSA | 2023 MAINTENCANCE/ENGINEERING DEPARTMENTAL ORGANISATION Importance of Engineering department in the context of Front Office 1. Communication between the departments is based on the Room Status & Maintenance Requests 2. Maintenance employees must know the occupancy status of a room before attending to plumbing, heating, or air-conditioning problems. 3. If the room is reserved, the two departments work out a time frame so the guest can enter the room on arrival or be assigned to another room. 4. Maintenance of the room is imperative but cannot interfere with the act of delivering hospitality. 5. Requests from guests for the repair of heating, ventilating, and air-conditioning units, plumbing, televisions, and other room furnishings are directed to the front desk, which relays them to the maintenance department. 6. The front desk clerk must keep track of the repair schedule, as guests want to know the repair schedule. BMR103- FOUNDATION OF ROOMS DIVISION OPERATIONS-1-A (THEORY) Unit 1 Part 2 IHM PUSA | 2023 MAINTENCANCE/ENGINEERING DEPARTMENTAL ORGANISATION Chief Engineer Assistant Engineer Electrical Engineer Mechanical Engineer Civil Engineer HVAC Engineer Supervisor Supervisor Supervisor Supervisor Generator & Elevator Transformer Maison Engineer Mechanic Swimming HVAC Electrician Plumber Mechanic Pool Mechanic Electronic Boiler Carpenter Mechanic Mechanic BMR103- FOUNDATION OF ROOMS DIVISION OPERATIONS-1-A (THEORY) Unit 1 Part 2