ELECTIVE 5

HOSPITALITY OPERATIONAL MANAGEMENT

Prepared By:
RUBY DG. ELUMBRA, MAEd-HT
VIELL MARIAN T. BUMATAY
Module 3: The Lodging Industry
Learning outcomes:
_____________________________________________________________________
At the end of this chapter, the students should be able to:
 Determine the different classifications of hotels
 Distinguish between the Revenue and non-revenue Departments of
the Lodging Industry
Learning Content:
_____________________________________________________________________
 Categories of hotels
 Revenue Departments
 Non-revenue Departments
Module 3: The Lodging Industry
TERMINOLOGIES
HOSPITALITY
 derived from the Latin word “hospitare”, which means “to receive as
a guest”.
 It refers to the act of providing food and beverage, lodging and
services to travelers.

HOSPITALITY MANAGEMENT
 this involves the planning, organizing, directing and controlling of
human and
 material resources within the lodging, restaurant, travel, tourism,
institutional
 management, recreational management , and meeting and convention
planning industries.
 All of these separate yet related segments of the hospitality industry
are interrelated to
 deliver kind and adequate services to guests.

HOSPITALITY INDUSTRY
 this comprises of businesses that provide accommodations, food and
beverage,
 travel, as well as entertainment to the travelling public.

FRONT OF THE HOUSE – this refers to the department or personnel that

work with direct contact with guest.
Example: front office, f & b , Sales and marketing, security

BACK OF THE HOUSE – this refers to the department or personnel that

perform behind the scene.
Example: housekeeping, finance, engineering, human resources
THE LODGING SEGMENT
Hotel – is a place where a bona fide traveller can receive food and shelter
provided one is in a position to pay for it and in a fit condition to be received.
- Must provide food and lodging to travellers on payment and in turn
has the right to refuse the admission it the traveller is drunk, disorderly,
unkempt and is not in position to pay for the service

CATEGORIES OF HOTEL
I. According to LOCATION
o Downtown to LOCATION – are located at the centre of the city in busy
commercial and shopping districts.
 Close to government and private offices, shopping malls
and entertainment centers
 High hotel room rates as the price of land is expensive
 Meant for moneyed clientele
 Built upwards because of lack of space
o Suburban hotel – located on the outskirts of a city where land is
cheaper.
 have sprawling constructions with ample parking spaces.
 Attract cost-conscious clientele
 Ideal for training programs, conferences and seminars as
participants find a peaceful environment to learn
 Quick and efficient local transportation to make travel to
the city center and back
 Offer better room rates and facilities for groups
o Resort hotels – are located at natural and man-made sides
 Cater specifically to visitors of those sites
 Highly seasonal
 Provides heavy off season discounts to budget- conscious
traveller
  Main clients are the families, educational groups and
couples
o Airport hotels – located in the precincts of airport
 They cater to passengers with cancelled or delayed flights
 Cater to transient airline crews
 Have 24 hour coffee shop for quick meals
 Provide an all-purpose drug store and emporiums with
local arts and crafts for passengers
 have efficient wake –up calls services and a cybercafé
 provides shuttle coach service
 have simple structure possibly two floors
o Motels – are located at the highway and road junctions
 15-100 rooms for the automobile travellers
 Have direct access to their rooms from their car after
registering
 Low building
 Have ample parking spaces
 Guests can park their car in front of their rooms
 The rooms are equipped with tea/coffee kettles, creamers
and sugar for travellers to make their own hot beverage
 Have microwave oven for travellers to heat their own
food
 Most of the guest stay overnight only
o Camps - are located at trekking routes
 families hire caravans which are mobile homes and
move from camp to camp
 have common toilet and bath facilities
 guests would sleep on their own caravans
II. According to Number of Rooms
 small hotels – 25 rooms and rates
 - motels, lodges, bed and breakfast managed by individual families
and entrepreners
 medium hotels – 26 to 100 rooms
 large hotels – 101 to 300 rooms
 very large hotel – 301 to 1000 rooms
 mega hotels – 1000 and above
 Luncheons
 Weddings and other social functions
Set- ups:
- Theatre style
- Classroom style
- Horseshoe style

 Sole Proprietorship - is an individual- business person who uses

his/her own resources to set -up the business
 Partnerships - is the relation that subsist between persons carrying on a
business in common with a view of profit. Partners are limited to 20
persons only.
 Public limited Company - Are those companies that finance Mega
Hotels of 1000 rooms and above
 Franchising

IV. According to pricing Plan

o European plan- Room charges only
o American plan -Room plus all meals
o Modified American plan - Room plus breakfast plus lunch or dinner
o Continental plan -Room plus continental breakfast
o Bed and breakfast - Room plus English breakfast

V. According to type of guest

o Business Hotels- specializes in providing facilities and amenities for
business and corporate travelers.
o Business centers with meeting rooms, office automation,
secretarial services and modern Telecommunication facilities
and internet
o With private meals and the latest newspapers
o With high speed internet facilities
o Limousine service to and from the airport
o Concierge service
o Laundry service
o Health club
o Access to golf course

o Group Hotel - Are geared for volume traffic at any given time
o Large lobbies to welcome the group
o Separate registration counters
o Lobby staff equipped to handle volume baggage
o Separate baggage elevators
o Rooms with twin beds
o Large dining halls to seat several groups at a time
o Briefing rooms for tour groups
o Facilities for the handicapped
o Medical services for the aged

o Family Hotels- Are found mostly at resorts geared specifically for

families
o Interconnected rooms with kitchenette and basic cooking
facilities
o Entertainment lounges equipped with Television, Indoor game
and children play area
o Outdoor children parks
 o Jogging paths
o Independent barbeque area

o Conventional Hotels - Are specifically planned to hold large conventions

o Plenary halls
o Smalls meeting rooms for break-out sessions
o Administration office
o Large restoration office
o Rooms with twin bed
o Shuttle coach services from hotel to the airport

o Youth Hotels - Caters travelling youth

o Dormitory style accommodation
o Common toilet and shower area
o Large dining halls with simple food
o Gymnasium
o Game and courts and fields

VI. According to Length of Stay

o Transient Hotel- are type of accommodation where guest stay for
short duration with a maximum of 1 week.
 Comfortable and clean rooms with hot and cold
water
 In-room tea/coffee facilities
 Coffee shop or dinner
 Bar
 Room service
 Laundry service
 Quick check-ins and check outs
 o Residential Hotels- these are equipped to cater to guest on a
longer stay
 Examples are apartments
 Suites consisting of 2 rooms
 Fitted with kitchenette for personal cooking
 Rooms are cleaned by outsource housekeeping
service
 Security service with pass keys to enter the
building
 Convenient for long tenure executives who do not
want the hassle of running a home
 Guest may lease the accommodation for a period
of one year

o Suite Hotels- are similar to residential hotels but they are meant
for a guest on a shorter of 6 months.
 Ideal for families who need temporary
accommodation
 Suitable for traveling professionals
 Have all the facilities and amenities that may have
a coffee shop , bar and specially restaurant

o Furnished Apartment- an extended stay property with studio

rooms and open fully equipped kitchen.
 Lobbies for meeting visitors
 Outsources housekeeping services
 Swimming pool and gymnasium
 Ideal for single professionals who do not want the
hassle of running a home
VII. According to facilities offered
a. Star Rating Hotels- are organized by State Tourism Department
to guide travelers on the minimum facilities they can expect.
o Rooms of certain minimum dimensions with
bathroom supplying hot and cold water
o Bathrooms have bathtub
o Shopping arcade
o A coffee shop and other dining options
o Swimming pool and gymnasium
o Room service

b. Deluxe Hotel- is a luxury hotel with superior quality of facilities

and amenities
o The rooms are fitted with remote control windows,
gold plated taps
o Guests are transported to the hotel from the
airport by the hotel helicopter that lands on the
helipad on the rooftop of the hotel
o It has a restaurant under the sea or at the rooftop
that gives breathtaking aerial views
o Available only to those moneyed people who can
afford to stay
o Some deluxe hotels provide individual butters and
specialized cuisines

c. Palace Hotels- a royal palace converted into a hotel

o This is really an Indian concept where maharajas
converted their palace into hotels after they were
stripped off their princely privileges
o With a crystal fountain in the lobby and an array
of vintage cars in the private garage complex
o Palace are equipped with modern conveniences
 o Guest are exposed to rare art and artifacts that are
not found anywhere else in the world
d. Conference Hotel- hotels intended for holding conferences
o Have independent entrances and large parking
lots

e. Casino Hotels – one that provides accommodation and

gambling facilities.

 How gaming halls sometimes the size of the football field.

 Most rooms are large and fitted with twin queen sized bed or with
bathroom that have separate bathing, shower and toilet areas.
f. Business Hotels – one that cater to the business and corporate traveler.
g. Sport Hotel – those located beside stadiums to serve sports persons and
officials.
 Dormitory style accommodation with single room for sports
officials
 Gymnasium
 Health clubs
 Swimming pool
 Large dining area
h. Budget Hotels – an economic lodging with minimal services.
 Rooms with bucker beds
 A sink in the room for washing purposes.
 Common toilets
 A wall mounted television
 Dispensers for hot and cold food.
i. Bed and breakfast – these are usually small business . A family may
have an extra set of rooms in their home that they let out to tourist.
 The family takes the responsibility of providing comfortable rooms
with their dining rooms serving as the breakfast revenue.
  Breakfast is sumptuous English breakfast with a full array of cereals,
meats breads and tea or coffee.
j. Time-share-hotels – a lodging in which the rooms or apartments are
owned by several people who occupy the facility on mutual time
agreement.
 These are located on dreams sites, beaches ski slopes, hill resorts
waterfalls.
 Have fully furnished rooms with kitchenette.
 Have dining hall with a bar.
 They outsource expertise such as guides, boatmen, ski instructors.
k. Condominiums – are another type of accommodation here the owner
of the unit which is a room or an apartment in a complex such
accommodations furnishes it to his/her taste and informs the
management of the times he/she will occupy the apartment.
Revenue Department is Hotel
 Rooms Division – responsible in sales and maintenance of hotel guest
rooms
a. Front Office – hub/ nerve center of hotels
- makes the first impression of the guest.
- it is where guests relies for information.

i. Check-in process by which people become guests.

ii. Information- about guests identify and goods and services
offered by the hotel.
iii. Check-out – terminate status as guest.
. Surrender keys
.Verify accuracy of bills
. Settle accounts.
b. Reservation/ Sales Marketing – refers to arrangement by which
lodging operators hold accommodation for guests who will be
arriving some time later.
 Sources
. Phone
. Travel agents
. Internet
. Meeting planners
. Tour operators
. Airport representative

Types
- Confirmed – made with sufficient time for confirmation slip to
be returned by the client through mail/fax.
- Guaranteed – client pays for the first night prior to arrival.
- Regular/ non guaranteed – not paid in advance.

c. Telephone Exchange
. In-house communication
. Guest communication
. Voice mail
. Faxes
. Messenger
. Emergency Center

d. Guest Services / Uniformed Services

. Door attendants
. Bell man

e. Concierge – separate from front office

i. Information about the city, restaurants and attractions.
 f. Housekeeping – cleanliness appearances and condition of entire
hotel.

g. Security/ Loss Prevention – maintaining and protects the

personal property of guest, employees and hotel itself.

B. Food And Beverage Department

a. Kitchen – it is where food are being prepared.

b. Hotel Restaurants
i. Specialty Restaurants
ii. Coffee Shop
iii. Snack Bars
iv. Cafeterias
c. Bars – for cocktails and mock tails
Kinds
- Lobby Bars
- Restaurant Bars – holding area for hotel signature restaurant.
- Service Bar – service all bars
- Catering and banquet bars – catering and banquet need
- Pool bars – exotic cocktail around the pool
- Night Club Bars -evening entertainment and dancing
- Mini Bars – small refrigerated bar in guest room
d. Stewarding
e. Room service- in room dining
- Bring dining experience to the room with quality food and
beverage service
- Higher prices.
Challenges
- Delivery on time
- Profitable food and beverage department
 - Avoids complaints and excessive charges
f. Catering and Banquet
Most frequent events
- Meeting
- Conventions
- Conferences
- Luncheons
- Weddings and other social functions
Set-ups
- Theater style
- Classroom style
- Horseshoe style

NON- REVENUE DEPARTMENTS IN HOTELS

A. HUMAN RESOURCE DEPARTMENT – This department is responsible
for the hiring, maintenance and exit of staff
- Its objective is to maximize the return on investment from the
organizations human capital.
Functions:
Hiring
Compensation
Evaluation of management
Promotion
Managing relations
Planning
Training
 HUMAN RESOURCE MANAGEMENT AND DEVELOPMENT PROCESS

Task Analysis Job description Productivity Advertising

standards

Orientation Selection Recruitment

Training Performance
Development
appraisal

 Task analysis and job analysis examine the tasks necessary to perform
the job; when approved and listed these tasks become job description
 Job description – a detailed description of the detailed activities and
outcomes expected of the person performing the job
 Productivity standards- this may be established for each position
within the organization. They are determined by measuring or timing
how long it takes to do a given task.
 Recruitment and selection – are the process of finding the most suitable
employee for an available position
 Orientation – all employees should be given a suitable orientation to be
organization prior to their first day of work.