CHAPTER 1- BACKGROUND OF THE HOSPITALITY INDUSTRY

Today's lodging and restaurant industries are the result of social and cultural evolution
over many centuries. Comfortable, hygienic accommodation was once considered the
exclusive privilege of the wealthy, but it has been made accessible to the common
man. Progress in transportation allowed more people to travel longer distances at a
lower cost, and tourism developed around the globe. Due to the long distances they
had to stay and eat in inns. From humble beginnings, hospitality and tourism grew to
become the two largest industries in the entire world. Today, the hospitality industry is
complex and diverse. From the inns of biblical times to modern resort complexes, the
evolution of the lodging establishment has influenced, and in turn been influenced by,
social, cultural, economic and political changes in society.

Origins of the hospitality industry

Lodging, understood as service and attention, is something that has been known for
more than two thousand years. Evidence is preserved from ancient Rome, both in
paintings and writings, of the existence of inns called "Mansions", which were
strategically located on its road network, in order to receive officials on their trips and
thus attend to matters. of the government.

When ancient men first ventured out of their tribal settlements, there were no hotels in
which they could stay, so they pitched their tents wherever they wished. The first
travelers exchanged goods for lodging. Undoubtedly, hosting was one of the first
commercial enterprises, and hospitality was one of the first services in exchange for
money. The inns of biblical times offered little more than a bed in the corner of the
stable. Most of these establishments were houses or residences of the people of that
time who offered temporary accommodation for strangers. The rates were reasonable
but the company was rough, travelers sharing rooms with horses and cattle.

It was not until the Industrial Revolution in the 18th century that European taverns
began to combine lodging with food and drink service. Despite this, hygiene received
little attention. Travelers had to share beds and rooms with others, and the rates were
high. As inns and taverns were inadequate for aristocrats, luxurious structures were
erected for them, with private rooms, individual sanitation and all the comforts of
European castles. They adopted the word hotel and their rates exceeded the resources
of ordinary citizens.

During colonial times in the United States, inns were modeled after European taverns,
in which two or more guests shared rooms.

Throughout the 19th century, American innkeepers improved services and continued to
build larger properties and equip them more extensively. Such establishments were
located in ports and operated alongside taverns. The traveling tendency of Americans
produced constant inspiration in lodging houses.

The first American hotel, the City Hotel, opened in 1794 in New York City. The City
Hotel had 73 guest rooms, whose sole purpose was lodging.
The City Hotel inspired the construction of other pioneering hotels. The Exchange
Coffee House in Boston, followed by the Mansion House in Philadelphia and the
Adelphy Hotel in New York. These hotels became important social centers and, unlike
their European counterparts, welcomed anyone who could pay reasonable rates.
Meanwhile in Europe, hygienic accommodation continued to be considered a privilege
reserved for the aristocracy. On the other hand, in the United States, clean and
comfortable accommodations were available to any worker or middle-class family.

The Middle Ages and the Hospitality Industry

In this period, the War of the "Crusades" began, pilgrimages to Santiago de

Compostela, Mecca and trips to obtain new trade routes; bringing with it the existence
of inns on the roads to house travelers.

At this time a new type of travel emerges, religious pilgrimages. These had already
existed in ancient times but both Christianity and Islam would extend them to a greater
number of believers and the displacements would be greater. Since the year 814 AD,
pilgrimages throughout Europe were continuous, thus creating maps, inns and all kinds
of services for walkers.

The resurgence of commerce in the Middle Ages stimulated the extensive development
of inns and inns. Many of them operated in monasteries and other religious institutions.

In the 13th century, while Marco Polo was traveling to Mongolia, he surprisingly found
an extensive system of numerous residences converted to accommodate travelers.
Havens of rest and food, which offered assistance to those who served as postal
messengers. The same occurred in Islamic regions, where hostels were tactically
placed to serve merchants. In them, the owners acted semi-officially as guardians of
merchandise and money, for a modest additional commission.
Modern age

Pilgrimages continue during the Modern Age . In Rome, 1,500 pilgrims die due to the
bubonic plague.

It is at this time when the first accommodations with the name of hotel (a French word
that designated urban palaces) appear. As the great personalities traveled
accompanied by their entourage (increasingly numerous), it was impossible to
accommodate everyone in the palace, which is why these buildings were created.

This is also the time of the great maritime expeditions of the Spanish, British and
Portuguese that arouse curiosity and interest in travel.

At the end of the 16th century , the custom arose of sending young English aristocrats
to take the Grand Tour at the end of their studies in order to complement their training
and acquire certain experiences. It was a long-term trip (between 3 and 5 years) that
was made through different European countries, and that is where the words come
from: tourism, tourist, etc.

The Grand Tour is a trip motivated by the need for education of these young aristocrats
who in the future will govern their country. From “in situ” knowledge of the greatness of
Rome, Paris or Athens as well as from debates in the cafes of the great thermal
centers, travelers should learn how to take the reins of an Empire like the British. For
some authors this is the authentic founding phenomenon of modern tourism since it
emerges as a revolutionary phenomenon in parallel to the rest of the transformations
that occurred in the Enlightenment.

Also at this time there is a resurgence of the thermal baths, which had declined during
the Middle Ages. Not only are they attended on medical advice, but fun and
entertainment in thermal centers such as in Bath (England) is also becoming
fashionable. Also from this time dates the discovery of mud baths as a therapeutic
remedy, cold beaches ( Nice , Côte d'Azur ) where they went to take the baths by
medical prescription.

Contemporary age

Pleasure travel had its beginnings in the last years of the 19th century and the first
years of the 20th century . Great changes in society , in lifestyles , in industry and
technology altered the morphology of the community. The 19th century saw a major
economic expansion, followed by an even greater industrial and scientific revolution in
the second half of the 20th century . Tourism was one of the main beneficiaries,
becoming the largest industry in the world at the end of the 20th century.

With the Industrial Revolution, the bourgeoisie was consolidated and would once again
have economic resources and free time to travel. In the Contemporary Age, the
invention of the steam engine represents a spectacular reduction in transportation,
which until now was pulled by animals. Railway lines are spreading very quickly
throughout Europe and North America. The use of steam in navigation also reduces
travel time.
Health tourism and also mountain tourism are beginning to emerge. Famous European
sanatoriums and private clinics are built. It is also the time of cold beaches (Côte
d'Azur, English Channel,…).

In 1841 Thomas Cook organized the first organized voyage in history. In which he
realized the enormous economic possibilities that this activity could have, thus creating
the first travel agency in the world, Thomas Cook and Son, in 1851 .

In 1850, Henry Wells and William Fargo American Express, which was initially
dedicated to the transportation of goods and later became one of the largest agencies
in the world. Although Cook had already introduced them, American Express extended
the financing and issuance systems for traveler's checks, such as the traveler's check
(personalized money exchangeable for commonly used paper money that protects the
traveler from possible theft or loss).

In 1867 he invented the voucher, a document that allows the use in hotels of certain
services contracted and prepaid through a travel agency.

Cesar Ritz is considered the father of modern hospitality. From a very young age he
held every possible position in a hotel until he became manager of one of the best
hotels of his time. He improved all the hotel services, created the figure of the
sommelier, introduced the bathroom in the rooms, and revolutionized the
administration. (He turned decadent hotels into the best in Europe, which is why he
was called a “magician”).

At the outbreak of World War I in the summer of 1914, it is estimated that there were
approximately 150,000 American tourists in Europe. After the war ended, beaches and
rivers became the center of tourism in Europe, and coastal tourism began to acquire
great importance.

The Second World War absolutely paralyzed tourism in the world and its effects
extended until 1949 .

Between 1950 and 1973 people began to talk about the tourism boom. International
tourism is growing at a faster rate than it has ever done in history. This development is
a consequence of the new international order, social stability and the development of
leisure culture in the Western world. At this time, legislation on the sector began.

The economic recovery, especially in Germany and Japan , raises the income levels of
these countries and gives rise to a wealthy middle class that is beginning to become
interested in travel.

But the recovery raising the standard of living of more important sectors of the
population of Western countries. The so-called well-being society arises in which once
the basic needs are covered, the level of training and interest in traveling and learning
about cultures develop. On the other hand, the new labor legislation adopting paid
holidays, the English week of 5 working days, the reduction of the working day to 40
hours per week, the expansion of social coverage (retirement, unemployment,...),
greatly enhance development. of leisure and tourism.
All these factors and more lead tourism and hospitality to the era of standardization of
the tourism product. However, this stage is also characterized by a lack of experience,
which implies the following consequences such as lack of planning (it is built without
making any forecast of either the demand or the environmental and social impacts that
may be suffered with the massive arrival of tourists) and tourist colonialism (there is a
great dependence on American, British and German foreign tour operators mainly).

In the 1970s, the energy crisis and the resulting inflation, especially felt in
transportation, caused a new period of crisis for the tourism industry that lasted until
1978 . This recession means a reduction in quality to reduce costs and prices, betting
on a massification of supply and demand.

In the 80s the standard of living rose again and tourism became the economic engine
of many countries. This is facilitated by the improvement of transportation (new and
better airplanes such as the Concorde and the Tupolev , high-speed trains and the
consolidation of charter flights, to the point of becoming a tough competitor for regular
companies that are forced to create their own. charter subsidiaries.

In these years, there has been a very marked internationalization of large hospitality
companies and tour operators, who are looking for new ways of using free time (theme
parks, sports, risk, health,...) and applying marketing techniques, since tourists It has
more and more experience and is looking for new products and tourist destinations ,
which creates strong competition between them.

Tourism enters as a fundamental part of the political agenda of numerous countries

developing public policies that affect promotion, planning and marketing as a key piece
of economic development. Training is improved by developing specialized educational
plans. The objective of achieving sustainable tourism development by attracting new
markets and regulating seasonality.

The golden age of hotels.

In 1829, architect Isaiah Rogers undertook the construction of a grand hotel in Boston.
The Tremont House was the first first-class hotel and the milestone towards the
revolution in hospitality. It was the first hotel to offer locked rooms. Each room had a
sink, jug, and bar of soap. Another of his innovations was to employ full-time staff.
Tremont House was the forerunner of a new generation of prestigious lodging
establishments.

In 1874, in San Francisco, Ralston took on the task of building the most luxurious hotel
in the world. His grandiose creation, the Palace Hotel, boasted 800 rooms and stood at
the height of 7 floors. This hotel became a symbol of San Francisco's transition from a
flourishing town to a prominent city of international stature. The Palace had its own
power plant, a water supply from deep wells, fire extinguishers and air conditioning.

The Palace and the first-class hotels that followed attracted the extremely wealthy and,
like European hotels of its class, were beyond the means of the average citizen.

A room and a bath for a dollar and a half

At the beginning of the 19th century, a new type of traveler entered the scene - the
businessman - for whom accommodation was a dilemma: large hotels were very
expensive and old-style inns were unhygienic. To accommodate this new type of
guests, a new type of establishment was invented: the commercial hotel. The first
opened in Buffalo, New York, in January 1908.

The concept of private and hygienic rooms was taken and the private bathroom was
added. The advertising slogan - a room and a bath for a dollar and a half - was well
known among American travelers in the early 20th century. His architectural designs,
his maintenance concepts, and his ideas about service became the foundation for all
subsequent lodging establishments, from motels to luxury resorts.

After World War I, many hotels were built in large cities and smaller suburban
communities. In 1927, the Stevens Hotel – later named the Conrad Hilton – was
established in Chicago and, for several decades, remained the largest hotel in the
world. Shortly thereafter, construction began on a new luxury hotel, the Waldorf-Astoria
in New York.

Conrad Hilton

After the stock market crash in 1929, 85% of American hotels went bankrupt. But
Conrad Hilton managed to stay afloat thanks to his investments in oil and gas.

As a teenager, Hilton offered the available bedrooms in her father's house for rent to
traveling salesmen. The nightly rate was $2.50, and included three meals. He bought a
hotel that had stopped operating in Texas, and after months of renovation he
transformed the operation into a productive company.

In 1942, Hilton acquired the Town House in Los Angeles and the Roosevelt and Plaza
hotels in New York and the Waldorf-Astoria. In the following years, the Hilton Hotel
Corporation, organized in 1946, purchased or built a large number of luxury hotels
around the world and engaged the two largest hotel chains of that time - Sheraton and
Statler - in fierce competition.

At the end of World War II, the hotel industry unexpectedly entered a new era of
prosperity. Americans began traveling like never before. With a car in each garage,
families began traveling across the country. For this new type of traveler, the formality
of the traditional hotel was inappropriate. Traveling families needed accommodation
that could be reached from highways and had ample parking spaces. By 1960, the
motor hotel or, as it is known today, the motel, became a permanent fixture influencing
the hospitality industry.

The first motels were small and had fewer than 50 rooms. As the hotel industry grew,
motels also expanded in size and quality. In 1960, the average motel consisted of 100
rooms with a separate parking space for each unit.

California was the site of the first motel revolution. Throughout the 1950s, the motel
trend spread throughout the western and southern United States, especially in Florida
and Texas. Two men, Kemmons Wilson and Howard Johnson, were early innovators in
the rise of the motel.
The largest intact industry

In 1952, Kemmons Wilson began building a chain of standard roadside hotels

throughout the United States.

The property had 130 guest rooms, each with a private bathroom, air conditioning and
telephone. Additional features were free ice, free parking, and kennels. Although these
amenities are considered normal in lodging establishments today, at the time they
revolutionized the hotel industry.

From humble beginnings, the Holiday Inn system grew to become the largest chain of
lodging establishments in the world.

In 1982, the company began construction of the first Embassy Suites and Crowne
Plaza hotels.

Howard Johnson

In 1925 Howard Johnson took out a $500 loan to buy a drugstore and soda fountain.
Experimenting with a hand-cranked freezer, Johnson created his own line of snow,
which made the soda fountain the most popular soup kitchen there. He added
hamburgers, hot dogs and sandwiches to the menu, and the soda fountain became
Howard Johnson's first restaurant in the world.

By 1954, Johnson had licensed 400 restaurants and decided to expand his business
into the hospitality industry. In 1959, Johnson handed the reins of his small business
empire to his son, who ran the chain's operations until 1980, when the company was
sold. Restaurants owned by the Jonson family were sold to the Marriott Corporation.

Willard Marriott

Another famous hotelier, Willard Marriott, started out as the owner of a fast food
restaurant. In 1928, Marriott converted its regional chain of beer stands into small
sandwich shops. Marriott branched out into lodging 20 years later and eventually built a
hotel empire. The chain ranks second in the world.

The emergence of the budget hotel

The Hilton, Sheraton, Holiday Inn, Howard Johnson and Marriott chains continue to be
successful. But in the 1960s, a new type of lodging establishment - the budget hotel -
came onto the scene. These new establishments sold only room space, without food or
drink service. In order to save construction costs, budget hotels were built on cheap
land and the staff was small, and there were no buttons. By minimizing costs, budget
motels offered much lower rates than their competitors.

The first successful budget hotel, Travelodge opened in 1956, but the chain did not
spread nationwide until 1966.

The first austere budget motel, Motel 6, was established in 1963; It offered a rate of
$6.66 for simple, clean accommodation, but without a television or telephone. In the
early 1970s, the idea of low-rate motels captured the imagination of investors as well
as travelers.

The era of competition

The largest budget hotel chain, Days Inn, was founded in 1970 by Cecil B. Day, who
opened six austere motels. Two years later, a Days Inn executive noticed intense
construction in the Orlando, Florida, area. Kessler convinced Day to start putting up
motels near the construction. The object of construction was Disney World-Epcot
Center, and, due to foresight, the Days Inns became the main provider of lodging for
visitors to one of the largest tourist attractions in the world. In 1990, the Days
organization became the largest budget motel chain in the United States.

To compete with these low-cost properties, mid-range hotel chains introduced their
own limited-service hotels, which combine some features of the full-service hotel with
the savings of budget hotels.

Upward expansion also took place during the 1970s and 1980s. The Holiday Inn chain
created Crowne Plaza hotels to attract businessmen who prefer high-end properties,
and Ramada Inn created Renaissance Inns to compete with first-class hotels.

Between 1970 and 1980, so many hotels had been built that the national occupancy
rate declined from almost 70% to just over 50%. This difficult situation inspired another
period of innovation in hotel design. From 1988 to 1990, the most rapid expansion
occurred in all-suite hotels, where the bedroom and living room are separated.

In the 80s the construction of lodging establishments was also rapid. In 1984, at the
behest of President Ronald Reagan, the United States Congress passed a sweeping
tax overhaul. The new law eliminated some tax exemptions, but left the investment
benefits in hotel construction intact. Throughout the 1980s thousands of small business
owners bought franchises to operate their own hotels with famous names such as
Holiday Inn, Travelodge, Hilton and Sheraton.

The rate of expansion of hotels in 1980 exceeded that of the expansion of the entire
travel industry. As a result, in the 1990s there were more hotel rooms available than
there were travelers to fill them.

The lodging trend in the 1990s is toward integrated services, combining the features of
full-service and limited-service hotels to create a new type of hotel, hoping to attract
guests away from traditional lodging options. The up-and-coming stars of the lodging
trade, namely all-suite hotels, add yet another dimension. But one premise will certainly
hold true throughout the 1990s and into the next century: Competition for customers
will be more intense than at any other time in history.

Tourism in the Dominican Republic

Tourism in the Dominican Republic can be classified among the main tourist
destinations in the Caribbean region and Latin America . Tourism in the country begins
with the first visit of the Spanish to the island, in 1492 with Christopher Columbus and
according to some people, this visit is classified as the first known external visitors to
the island of Santo Domingo . In this way, it can be stated that the first visitors to set
foot on this land were Columbus and his companions on his first trip to America , thus
beginning what is formally Tourism in America and also beginning the history of tourism
in the country. According to historians, other foreigners who visited the country were
American adventurers at the beginning of 1854 .

It should be noted that during all those years, tourism in the country occurred very
slowly until 1930 , when Rafael Leonidas Trujillo took power, it can be said that tourism
in the country began to take another direction, although during that decade 1930 , it
was quite weak. During the 1940s , Trujillo gave instructions to promote tourism in the
country, in this way the first tourist promotions of the country to other international
countries began to be carried out, this being the first concrete step to attract tourists to
the country. .

In 1944 the Malecón de Santo Domingo was inaugurated, along with the city's first
luxury hotel, the Hotel Jaragua . After this step, new hotel chains were opened, with the
clear profile of increasing tourism in the city, which is why later, in the 1950s, several
hotels were inaugurated, some of these were in the interior of the country.

It can be said that from this period, in which several tourist and hotel complexes were
built, a before and after began in Dominican tourist history. The hotel facilities in the
country, at that time, comprised more than 1000 hotel rooms.

In 1955 , Trujillo held the so-called " Fair of Peace and Brotherhood of the Free
World" , which was an international event held in Ciudad Trujillo , today Santo Domingo
de Guzmán ; with this event, Trujillo sought to show its great advances in physical
constructions and show the world that the Dominican Republic actually lived in a
climate of peace and brotherhood.

During the periods that cover the years between 1944 and 1958 , it can be said that
they mark the stage of growth of tourism in the Dominican Republic. The invasion of
Constanza, Maimón and Estero Hondo , the crime of the Mirabal Sisters and the death
of Trujillo, caused many foreign tourists not to come to vacation and even make their
investments in the country. The political instability and social upheavals that culminated
in the civil war of 1965 and the subsequent military occupation by the North American
Marines turned the history of tourism in the country black.

In 1966 , when Dr. Joaquín Balaguer was elected, he was in charge of producing the
economic policies necessary to make tourism a sector with its own name and surname.
During this period, tourism in the country increased even more.

In 1968 , tourism legislation was produced that declared tourism development of

national interest. In 1969 , the National Directorate of Tourism was created, which later
became the Secretary of State for Tourism.

Experts on the subject tell us that starting in the 1970s marks what is called the period
of development of tourism in the Dominican Republic. Since then, tourism is the
economic sector that generates the most foreign currency for the country, far
exceeding all the foreign currency generated by the export sector of traditional and
non-traditional goods.
NAMELY:

Hospitality and accommodation:

1.- Movement of ancient men who set up their rest tents

2.- Posada: places where people stay with animals
3.- Albergatori Maggori: First guild of lodging service providers
4.- Hospitals: comes from the Latin root “hosped” = guest, its purpose was to serve
pilgrims
5.- Monastery: religious order without financial remuneration, later it becomes an inn.

6.- Inns: All types of travelers emerged in Spain, the humble ones slept with animals
and the richest ones slept in the upstairs rooms.

7.- Sales: constructions that were on the way

8.- Taverns: middle ages public accommodation, underground alcoholic beverages
and upstairs rooms

CHAPTER 2 - THE HOSPITALITY INDUSTRY TODAY

Lodging industry segment.

Viewed as a separate sector of the U.S. economy, the lodging industry ranks seventh
among U.S. industries. When combined with food and beverage service, lodging and
hospitality come second. Americans are the most traveled population in the world.

A portion of the industry that is characterized by a particular trait or series of traits is

called a segment. Segments of the lodging industry evolved as a result of competition
and are separated according to the commercial emphasis of each property. In the USA
the five main segments are the following:

• Budget or limited service hotels

• Mid-range hotels

• Suite Hotels

• First class hotels for executives

• Luxury hotels

Budget or reduced service hotels

The budget or limited service hotel provides private rooms with bathroom, functional
and hygienic. Early budget hotels did not have televisions or telephones in the rooms,
but these amenities are now the norm at most properties. There will probably be no
food and beverage service. Room rates range from $30 to $70 per night.
To keep rates lower, limited-service budget hotels are located in cheap real estate and
built at a relatively low cost. Operating costs are kept low by eliminating food and
beverage service and employing a small number of people.

Ex: Days Inn; Hampton Inn; Travellodge; Super 8; Knights Inn; Red Carpet; Motel 6;
Regal 8; Scottish Inn

Mid-range hotel

The modern mid-range hotel is a descendant of the first commercial hotel conceived by
Statler in 1908. In addition to having comfortable accommodations with private
bathrooms, the traditional mid-range hotel offers food and beverage service and porter
service on its premises.

Called tourist-class or standard hotels in the United States, mid-range properties offer
higher-than-average luxury and comfort, professionally designed décor, and on-site
food and beverage service. The accommodation may have a picturesque view or a
convenient location. In the USA rates vary between $50 and $200 per night, depending
on the area, location and type.

EX: Holiday Inn, Ramada Inn, Hilton, Sheraton, Howard Johnson, Courtyard, Park
Square Inn

suite hotel

The all-suite hotel was created to compete with first-class hotels by offering above-
average facilities at a mid-range hotel cost. The all-suite hotel typically offers separate
sleeping and living areas, along with other perks such as a kitchenette and stocked
minibar.

EJ: Embassy Suites, Residence Inn, Marriott Suites, Hilton Suites, Sheraton Suites,
Hyatt Suites

A variant of the suite hotel, the condominium hotel or “condotel”, is a complex of

equipped apartments that rent accommodation for a minimum period of one week. The
typical condominium hotel is located in a rest area.-

First class or executive hotel

The typical first-class hotel is luxurious or near-luxury, with exceptional comfort and
décor, highly trained staff, and usually above-average food and beverages. Also called
executive or first-class hotels, first-class hotels often have luxury suites, two or more
dining rooms, and a cocktail bar. Many of the accommodations have excellent views,
refrigerators and stocked canteens. Rates typically range from $60 to $300 per night.

EJ: Marriott; Hyatt; Hilton, Sheraton

Luxury hotels

Luxury hotels represent the highest standard of excellence 4 in the level of luxury and
comfort. They are characterized by their neatness and functionality; staff specialization,
competence and courtesy; diversity and quality in food and beverage service. The
luxury hotel and two or more dining rooms. Almost all accommodations have
outstanding views, locations or atmosphere. Rates range from $100 to $2,000 per
night, depending on market, location, and accommodation type.

EX: Paris Hotel Ritz; Mansion on Turtle Creek

Types of establishments

Within each industry segment there are various types of establishments aimed at
different travel markets. Hotel establishments in the United States are of six basic
types:

• Traditional hotels

• Motels

• Resorts

• Convention Hotels

• Residential Hotels

• Bed and Breakfast Inns

Traditional Hotels

The traditional hotel is designed based on the fundamental concept of private rooms
with bathroom, reception, porter and food and beverage services in the same facilities.
It may or may not have parking available. Most mid-range, first-class, or luxury hotels
fall within this range.

Motels

The motel features convenient access to a main road and ample guest parking; They
generally do not offer food and beverage or bell service.

Resorts

To meet the changing needs of leisure travelers, traditional hotels adopted a variety of
amenities, such as swimming pools. Tennis courts, golf courses, exercise facilities and
health clubs. As services expanded, a new type of lodging establishment was born: the
resort.

As air travel spread, resorts in Hawaii and the Caribbean, including the Virgin Islands,
began reaping America's largest share of dollars. The most popular American tourist
attractions, according to the number of visitors, are, in order: Disneyworld in California;
DisneyWorld Epcot Center in Orlando, Florida. Not surprisingly, hotels, motels and
resorts located near these attractions enjoy the highest average occupancy rates
among American properties.
Social and business trends have had a powerful influence on the American resort
industry. In the last two decades, two highly productive categories emerged: SPA
hotels and convention centers.

Spa Hotels:

The health and fitness trends of the 1970s and 1980s created a demand for spa hotels
that specialized in weight management, exercise regimens, and cosmetic surgery. A
large number of Spa hotels emerged on both coasts of the USA, with specialized
services and facilities.

Convention or conference hotels:

As more and more conventions and meetings are held today, more convention or
conference centers or hotels have been built. For convention groups, the resort has
become the ideal environment to eliminate the distractions of the city and focus on
business within a relaxed and comfortable atmosphere. Conventions are typically
scheduled during the off-season.

Many of these complexes are built with financing from local governments that want to
attract conventions and tourists to their cities. In support of a large convention center, a
city must have an airport of such magnitude that it can receive a considerable volume
of passengers.

The typical conference hotel may offer secretarial services and equipment such as
photocopiers, fax machines and computers.

Residential Hotels

Residential hotels have been designed primarily for extended stays. Almost all offer
reduced weekly, monthly or seasonal rental rates. Some residential hotels contract with
local businesses, industrial zones or schools to provide temporary residence for
executives, contractors, employees or students. Residential hotels commonly offer
suites or private rooms with bathroom, reception, bellman and security service. They
have fully equipped kitchens.

Bed and Breakfast Inns

It originated as a private residence that offered rooms for temporary stays in a homely
atmosphere, and included a meal at no additional cost. Bed and breakfast inns are
usually located in scenic areas, historic residences, and even lighthouses.

Classifications and categories

The Michelin travel guides, published in France, began the practice of classifying and
assigning categories to lodging establishments. Andre Michelin, the founder of the tire
company, wrote the first travel guide in 1900. Currently, The Michelin Green Guides for
Hotels, Motels and Resorts are published annually in March with categories from one
to four stars. This classification is based on facilities, comfort, service and creativity.
In the USA, the US Bureau of the Census classifies lodging establishments by size,
based on the total number of rooms. The differences between types of hotels and
motels have become less and less noticeable.

Class

In most travel information sources, lodging establishments are grouped by class: the
overall quality of the accommodations and services. The European system for
assigning categories, as exemplified by the Michelin Green Guides, groups hotels into
three classes. Broad and determine the category using a scale of one to four stars.
Luxury hotels are in the highest category, followed by first class and, finally, tourist
class. Four-star European hotels have restaurants and bars; Some three-star hotels
have food and beverage service on-site, but two-star hotels generally do not.

The AAA (American Automobile Association) assigns one to five “diamonds” to indicate
the quality of hotels. One diamond represents compliance with the minimum
requirements, while five diamonds indicate the highest level of luxury and service.

Some government systems rely exclusively on price to assign categories to hotels.

However, most systems use the following criteria to evaluate properties:

• Number and type of rooms

• Elegance and comfort of surroundings

• Hygiene

• Number and specialization of staff

• Service level

• Services to reserve

• Quality and diversity in food service

• Drinking and canteen service

• Accessibility to entertainment and activities

• Transportation available, such as shuttle train or bus.

• Courtesy and spirit of the staff.

Chapter 3- Ownership and management

Ownership and management methods

Many lodging establishments, especially motels and bed and breakfast inns, are
managed by their own owners; But it is also common for a hotel to be owned by one
person or persons and managed by others. The relationship between owner and
administrator can be of three main types:

• managed by the same owner

• Franchise

• Management contract

Managed by the same owner

It is the direct possession of one or more properties by a person or company. Small

motels owned and operated by a couple or family are common examples of this type of
ownership. Larger properties owned by a major hotel company like Marriott or Hilton
also fall into this category.

A chain is a group of hotels owned or managed by one company. Generally, three or

more units constitute a chain, but major hotel chains have 300 to 5,000 properties. In
the ownership chain all hotels belong entirely to a single company. Marrito, which owns
the hotels that carry its trademark, is an example of this type of chain

In a co-ownership chain, ownership of individual properties is shared by a hotel

company and independent investors. Investors finance the construction of the hotels
and the hotel company (such as the Hilton or Sheraton) manages them.

Statler and Hilton were the first hotel builders to use the chain concept. They
developed their chains by building new properties and acquiring existing hotels.

The chain owner has certain competitive advantages over the independently owned
hotel. For example, hotel chains receive large discounts on the purchase of materials
and supplies through volume purchase contracts. The hotel chain also benefits from
national advertising campaigns that independent operators cannot finance. Also, the
well-known chain can make money more easily.

Consumers prefer products that are well known to them. The most famous chain
attracts travelers who recognize and trust the brand name.

Franchise

Not all hotels with the same name belong to a chain with the same owner. A different
type of chain - the franchised chain - comprises properties that have the same name
and design, but are owned by different owners.

A franchise is the authorization given by a company, or franchisor, to use the

company's ideas, methods and trademarks for a business. By paying a fee, the private
investor or franchisee can obtain a trademark license for architectural plans, blueprints,
designs, training and methods of operation. The franchisee is responsible for financing
the construction of the property.

The franchisee can be an individual, a partnership, a small corporation, or a group of

investors and must be guided by the quality standards and product specifications
established by the franchisor, but the franchisee is the legal owner of the business.

The franchise agreement, a contract between the franchisor and the franchisee,
describes the obligations of the latter. The operation manuals cover topics such as
accounting practices, maintenance procedures, sales and marketing advertising,
personnel hiring and training, and inventory control.

The franchisee pays an initial fee when signing the franchise contract. Initial hotel
franchise fees range between $10,000 and $50,000. Franchisees also pay royalties
based on the hotel's total revenue. For example, the Holiday Inn franchisee earns
$800,000 from room sales in one month, he must pay $32,000 to the Holiday
Corporation. The franchisor may charge additional fees for advertising, access to
computerized reservation systems and other services.

Operating standards are important in a franchise organization. The franchisee who fails
to meet quality standards may lose the franchise and all the rights and privileges that it
entails.

In addition to Holiday Inns, other chains that operate on a franchise basis are Days Inn,
Ramada Inn, Hilton Inn, Sheraton

Management contract

Through a management contract, a property owner contracts with an APRA hotel

management company to operate the establishment. The management company must
present periodic financial reports to the owners and comply with policies regarding the
operation, administration, maintenance, staffing and appearance of the hotel.

Management contracts free the extensive chain from the difficulties of managing
hundreds of properties in various locations. The local management company typically
has the best knowledge of the market, economic conditions, best locations, real estate
prices, and salary scales in the area.

Reference organizations

Some travelers confuse chains with landmark organizations, which is an independent

property that is a member of a cooperative association; It belongs to the partners and
they operate it. The primary function of the association is to direct advertising and send
clients to member properties.

The referral organization promises travelers that they will find certain standards of
service and hygiene in the facilities of member properties. By meeting these standards
and paying annual fees to the organization, property owners benefit from brand name
recognition, national or regional advertising, and customer referrals from the
association's central reservation system.

Best Western is the largest reference organization in the USA.

Like referral organizations, hotel representatives also operate central reservation
services on behalf of independent properties. A representative is a company that
provides advertising services and places reservations at independent hotels. The
representative receives a fee or commission for each reservation they place. Unlike
referral organizations, representatives do not impose quality levels on participating
properties. Utell is one of the main hotel representatives.

Reservation systems

Chains, franchises, and referral organizations all operate a central reservation system
through which customers can reserve hotel space by telephone, generally at no
charge. The information is stored in a computerized system.

For example, Holiday Inn reservations are stored in the Holidex system, which links the
chain's establishments. Each chain or organization operates its own computerized
system.

The travel agent can use an airline CRS to make hotel reservations. Major airline
reservation systems include Sabre, Apollo, and Worldspanm. The main reservation
system is Galileo.

When a travel agent places a reservation for a major chain or representative through a
CRS, the reservation is transmitted directly to the chain's own reservation system. For
example, when an agent makes a reservation at the Holiday Inn using the Galileo
system, they then transmit the information to the Holidex system.

In March 1990, eleven major chains formed a central reservation system called
Ultraswitch. This new system provides a single link between hotel reservation systems
and the airline systems used by travel agents.

The function of property

The owner of a hotel can be a proprietorship, a partnership or a corporation. Property is

the simplest type of business, since it belongs to an individual. The liabilities (debts,
taxes and other obligations) of the business are the personal liabilities of the owner. All
profits from the property are considered the personal income of the owner or proprietor.

A company is jointly owned by two or more individuals. The partners each share in
equal proportion of the profits, liabilities and assets (real estate, possessions and other
items of value. A limited partnership is a special type of partnership owned jointly by
general partners and limited partners. General partners are responsible for managing
the business and assume responsibility for the debts and liabilities of the business.
Limited partners have no liabilities but share in the profits.

A Corporation belongs to shareholders who are represented by a board of directors.

The directors assign officers such as president, vice president, and treasurer to
manage the business. Unlike ownership or a corporation, the corporation is considered
to have its own identity, separate from that of the shareholders. The corporation is
responsible for all debts and other liabilities of the business. Profits are distributed to
shareholders in the form of dividends.
Whether the hotel is a chain, franchise, or independently owned property, the owners
of most hotels are organized into a corporation.

The main function of the owners is to finance the construction of the hotel and operate
it, with the goal of receiving financial benefits, usually in the form of profit.

A secondary function of the owners is to provide jobs and other benefits to community
members. Hotels are major employers around the world, in both rural and urban
locations. Lodging establishments are essential to the thriving tourism trade and also to
supporting local industries by providing temporary accommodation to salespeople,
executives and other business travelers. Business centers and resorts will benefit the
community by attracting visitors who will leave their money at restaurants.

The role of administration

Whether the hotel is managed by the owner or the franchisee or a management

company, the primary function is to produce profits for the owner. To perform this
function, the administration must carry out the following activities. :

• Short and long term planting

• Maintain good quality service

• Maintain maximum room occupancy through advertising, promotion and

accurate sales forecasting

• Maintain effective communication between hotel departments

• Ensure that the hotel is adequately staffed and that staff are properly trained,
motivated and supervised

Except for very small independent properties, management is the responsibility of a

team, headed by an executive director or general manager. Department managers and
personnel supervisors carry out the director's plans, goals, policies, and procedures. In
every aspect of hotel operations, management goals should always be top of mind for
employees.

Manage occupancy

One of the most important functions of management is to maintain statistics regarding

room sales and operating costs. Room occupancy is one of the most important
statistics. One way to measure it is the proportion of occupied rooms in relation to the
total number of available rooms. A proportion is a relationship between two numbers
that can be expressed as a percentage. When a ratio is used to measure room
occupancy, the measure is called occupancy percentage.

The primary administrative goals are to maintain maximum occupancy and control
operating costs. In addition to keeping accurate statistics, management must be able to
attract customers by maintaining a good quality image and satisfying existing guests
through good quality service. The hotel must also be able to control the supplies,
equipment and running costs required to operate the hotel.
The instrument of all these functions, goals and activities is the word quality. It is the
responsibility of all employees to ensure that each guest has a good quality experience
during their stay at the hotel.

Chapter 4 - Organization

A city within another

The full-service hotel is often described as a city within a city, where virtually every
convenience of modern living is within reach. For guest convenience, the hotel may
operate a restaurant, social lounge, tobacco shop, gift or clothing store, nail salon,
fitness center with showers, and travel agency.

The operations of a typical lodging establishment correspond to four basic

departments:

• Accounting: handles the business aspects of running a hotel and performs all
activities required to maintain accurate records, determine profits and losses, control
costs, and plan for the future.

• Reception: The room division department is responsible for managing rooms and
making reservations, reception operations, and housekeeping subdepartment activities.

• food and beverages: responsible for managing and maintaining buildings and floors.
Environmental control, reception, maintenance and security.

• Maintenance: is responsible for managing and maintaining buildings and grounds,

environmental control, reception, repair, maintenance and security.

Organization of a hotel

Several factors influence the organization of a lodging establishment, including the

following:

• Location and market: often dictate how the hotel will be staffed and organized.
Hotels near airports are organized for the rapid movement of guests, while resorts are
more suited to the passage of free time. Hotels in convention cities are organized more
to support large groups and meetings, but properties in small rural areas tend to focus
on older individuals.

• Type of management: ownership has a strong influence on both the number

and personality of the staff. The proprietary chain or franchised hotel will be designed,
equipped and staffed in accordance with headquarters dictates.

• Establishment size: Hotel staff varies in direct proportion to the size of the hotel.
For example, a hotel with several rooms requires a large number of housekeepers to
clean the mines.

type of property: The design of the property is related to the organization and the
number of personnel; For example, an integrated resort or convention center almost
always maintains a large body of unified staff to transport guests' luggage, while
roadside motels rarely have this service.
• Guest service: The extent of guest services a hotel provides also influences the
number and complexity of staff. For example, if the hotel has a beauty salon, a group of
stylists should be hired, and if the gift shop is open 24 hours a day, employees should
be hired to cover all three shifts.

• Working capital: is the amount of money available for construction, expansions,

maintenance and operating expenses. Available working capital sets the limits for the
size and complexity of any lodging establishment.

All these factors are interrelated. A change affecting one factor, such as ownership
type or extent of services, often dictates a change in others, such as working capital or
establishment size.

To get a broad perspective of how a hotel is organized, let's examine three cases in
which the organization and staff vary.

The first is a family-owned, limited-service motel with 35 rooms. It does not operate
food and beverage services, but there is a cafeteria near the hotel that can be reached
on foot. The rooms have only the basics, but are tastefully furnished. They have private
bathrooms, air conditioning units, telephones and color televisions. The parking lot has
space for 42 cars.

The second lodging establishment is a mid-range hotel, with 192 rooms in a three-story
building. Room service is available although limited. The hotel has a games room, a
tobacco shop and a sports court. The three banquet and meeting rooms can
accommodate groups of 10 to 100 people. The typical room has individually controlled
air conditioning, telephone, color television, and daily maid service.

The third case is a full-service resort complex. It has 853 rooms and offers food and
beverage service in two restaurants, a cocktail lounge and a lobby bar. Groups of up to
3,000 people can be accommodated in the 25 meeting rooms. The hotel offers a golf
course, there is a professional store with golf equipment and tennis courts. Guest
accommodations include well-appointed rooms and suites with air conditioning, remote
control color television, AM/FM radios and in-room movie projection. All suites and part
of the rooms have refrigerators stocked with drinks. There is daily maid service.

Limited Service Hotel Organization

A notable feature of this limited-service establishment is that overhead costs are low.
Overhead expenses are the total of all operating costs that come with keeping the
motel running. To keep construction costs low, prefabricated materials were used. To
minimize the use and cost of materials, the size of the structure was kept as small as
possible. Some budget motels keep rates low because they don't install phones in the
rooms. Most motels offer at least one free parking spot per room. The limited-service
hotel staff is also kept as small as possible. The organization consists of four main
areas: administration, room division, maintenance and housekeeping.

Administration

The owner who is also a manager oversees all hotel operations, assisted by an auditor
or assistant manager. The auditor is primarily responsible for accounting, billing, and
keeping financial records. The assistant manager acts as the hotel manager when the
owner is away. An administrative assistant or clerical specialist may also be employed
to maintain records, file, and perform document processing functions.

quarter division

In a small property, the owner manager and assistant manager may also perform all
the duties of the rooms department employees. The primary duties of these employees
are to take reservations, check guests in and out of the hotel, answer questions over
the phone, and assist guests as required. Room division employees may also present
accounts and handle guest payments at check-out. Most limited-service hotels do not
have bell service, so guests must carry their luggage to the room.

maintenance department

This is a specialist responsible for the maintenance of the building who is responsible
for plumbing, electricity, simple repairs and maintenance of the gardens. In a small
motel, the owner-manager may perform simple routine maintenance and hire
electricians or plumbers for extraordinary repairs.

Housekeeper department

It is made up of a housekeeper responsible for cleaning the rooms and public areas.
The housekeepers of a small hotel are usually chambermaids supervised by the
owner-manager.

The larger the property, the greater the number of full-time and part-time specialists
needed in each department.

Organization of a mid-range hotel

The staff is organized by function into departments consisting of many units. In addition
to the four basic areas, departments are added to handle security, food and beverage,
guest services, and marketing. The example hotel has eight main departments:
administration, rooms division, food and beverage service, guest services, marketing
and sales, accounting, security and maintenance.

Administration

The administration is headed by an executive director or a manager. The executive

staff consists of a deputy director or assistant manager and several office work
specialists. The heads of the hotel's various departments work under the supervision of
the executive director or deputy director.

Room Division Department

It consists of three units: reception, housekeeper and uniformed staff. Front desk staff
are responsible for reservations, check-in and check-out functions, and handling guest
messages, mail, and inquiries. The front desk manager keeps a book called a log,
where the events that happen during each shift such as guest complaints, reported
maintenance problems, etc. are recorded. The housekeeper is responsible for the daily
cleaning of the rooms. The department is supervised by an executive housekeeper
who coordinates the cleaning of the rooms, prepares reports on the status of the
rooms, and supervises a group of housekeepers and supervisors. Many mid-range
guests provide laundry and dry cleaning services on-site, while others use outside
services.

The uniformed personnel department is made up of a captain or supervisor and the

group of bellboys. The main responsibility of this department is to greet clients upon
arrival and once they have registered, transport their luggage to the rooms.

Food and beverage department

The example hotel has moderate food and beverage service, called “A&B” by
managers and employees. To keep this service productive, the dining room and social
room are open from the street and from inside the hotel. This measure encourages
other consumers - people who are not staying at the hotel - to use the restaurant and
bar, to increase revenue through food and beverage operations. The heads of the
various units of the food and beverage department work under the supervision of the
manager or suggester. The manager's most important responsibility is to ensure that
F&B operations remain productive.

The food and beverage department of a typical mid-range hotel is divided into five
units: food purchasing, food production or preparation, food service, beverages, and
room service. The food purchasing department is responsible for purchasing food
products used by the kitchen staff.

The food preparation department, or kitchen staff, is made up of an executive chef who
is assisted by other cooks. This department is responsible for preparing all menu items.

The food service department is made up of waiters, waitresses and busboys, who are
responsible for serving guests food.

The beverage department is responsible for preparing drinks for the bar, restaurant and
room service. This department is managed by a beverage manager and a bartender,
whose role is to supervise.

The room service department is responsible for filling and delivering food and beverage
orders that guests request to their rooms.

Guest Services Department

The typical mid-range hotel may have a beauty salon, gift shop, and valet and laundry
services, organized within the guest services department.

Some hotels own and operate their own gift shops and beauty salons, but others rent
space to independent vendors to provide this service.

The concierge or guest services manager may be hired to serve as a reservation agent
for various outside services requested by guests, such as theater tickets, tours, ground
transportation, airline reservations, car rentals, etc. Some mid-range hotels rent desk
space to a travel agent, airline agent, or car rental agent instead of or in addition to the
concierge.
Marketing and sales department (Marketing)

The marketing and sales department oversees all aspects of promotion and group
sales. This department consists of three units: advertising, group sales and banquet
sales.

The advertising unit is responsible for planning, developing and implementing

promotions for the hotel. The advertising manager usually works with an outside
advertising agency to create campaigns and design promotional materials.

The group sales unit works with companies to negotiate group discounts and rates.
This department is also responsible for setting rates or discounts for tour wholesalers
who resell accommodations as part of advertised tour packages.

Caterers work with community organizations such as schools, churches, clubs,

wedding planners and companies to sell services to you. Banquets are an important
source of income. The food and banquet sales manager determines quotas,
coordinates the management of banquet services sold to the public; and also
coordinates the food served at the hotel's meetings and conventions.

accounting department

The accounting department of a typical mid-range hotel consists of two units: general
cash and accounts payable. The general cash department performs all accounting
related to the hotel's revenue (profit). The cashier handles all cash transactions,
including check cashing, guest payment, and billing. The auditor keeps track of the
money owed to the hotel by both guests and groups; convention or corporate clients
with established credit.

The accounts payable department performs all accounting related to money owed to
the hotel by suppliers and employees.

Security Department

The security department is responsible for maintaining alarm security systems and
protecting guest and hotel personal property.

maintenance department

The maintenance department of a typical mid-range hotel consists of two units:

environmental control, and repair and maintenance. The environmental control
department is responsible for maintaining the heating, lighting and electrical systems
throughout the hotel. Fire prevention and control is also another of its responsibilities.

The repair and maintenance department hires a group of carpenters, painters,

plumbers, electricians and repair specialists to keep the hotel's facilities, decoration
and furniture in good condition.

Organization of a large hotel

The various facilities of the resort form a very complete package of modern living.
Managing and operating this complex residential system requires a large staff
organized into many departments. It has the same eight basic departments as a mid-
range hotel, but the number of units and the number of staff are greater.

Administration

The resort is managed by an executive director who is assisted by a director or general

manager and a group of assistant directors or assistant managers.

The human relations department is part of an administration that is responsible for

recruiting and hiring employees, implementing in-service training programs, and
enforcing personnel policies and procedures.

Room division department

It has a large staff at reception, housekeeper and uniformed staff. The front desk is
subdivided into smaller, separate departments such as reservations, room control, and
guest communication. The housekeeping department is further divided into two
subdepartments, room cleaning and laundry. The uniformed personnel department is
headed by a supervisor or captain.

Food and beverage department

In addition to everything a mid-sized hotel has, it operates a specialty restaurant, a

casual café and a bar, to offer guests optional food and beverage services; It also
operates an employee cafeteria.

Guest Services Department

In addition to everything that a mid-sized hotel has, it has several stores operated by
independent concessionaires (business owners who rent space from the hotel).

Marketing and sales department (marketing)

The marketing and sales department of a large hotel may consist of five units. In
addition to the advertising, sales, and catering sales departments, a full-time
convention sales manager and convention manager may be hired to sell and
coordinate, respectively, these services. The convention sales manager is responsible
for planning meetings and determining rates. The convention manager coordinates the
services of the various divisions or departments, such as food and beverage service,
uniformed staff service, and maintenance, while the convention is in progress.

Accounting department (ditto medium-sized hotel)

Security Department

The resort has a head of security who supervises a group of full-time security guards,
house detectives and security systems specialists.

maintenance department

The extensive maintenance department of a large property is supervised by the

maintenance director who hires a group of mechanics, plumbers, carpenters, and
carpet and upholstery specialists.
Employment Outlook

A look at the property organizational charts in the examples above reveals the great
diversity of staff required to keep the hospitality industry running. Many positions are
highly specialized—particularly those in food and beverage, accounting, and
maintenance—but many others—such as reception, sales, and supervisory positions—
require more general skills with an emphasis on communication and contact with the
public.

Opportunities for advancement exist in all departments. Perhaps in no other field are
there such vast opportunities for every employee, at every level, not just within the
hotel but across the global hospitality industry.

Chapter 5 - Front Office Operations

Functions of the Quarter Division Department

In the lodging business, the word room is essential. Rooms are the main product sold
by the hotel and therefore it is not surprising that most of the activities of the hotel staff
are focused on the functions of the rooms division department. The CEO is responsible
for room occupancy and forecasting, while the reservations department handles guest
requests and determines room availability. The process of checking in newly arrived
guests is called rooming. Front desk employees manage the “rack” or room control and
take care of keys, and the housekeeping department performs room counts and
determines the status of the rooms.

The functions of the quarter division department are divided into three basic areas:

• Front office operations

• Housekeeping Department Operations

• Guest services

The reception

The front desk is often called the “nervous system” of the hotel. It is the staff in this
area who establishes the first contact between the hotel and the guests. From initial
reservation to check-out, most hotel guests may have little or no contact with other staff
except members of the front desk. Guest opinions about the hotel and its staff are
formed largely by the impression made by the receptionists.

Reception operations are divided into four general functions:

• Reservations

• Check-in and check-out (check in/check out)

• Communications

• Cashier services
• The first function covers the management of advance room orders received by
telephone, computer, TV or fax.

• Check-in and check-out duties include greeting and checking in newly arrived
guests, managing room availability, assigning rooms, providing laundry, and checking
out guests.

• The third function includes the management of correspondence - received and

issued - as well as various messages and information. Generally, as part of their
responsibilities, front desk staff communicate hotel services, activities, and programs to
guests.

• The normal responsibilities of the cashier are to maintain guest accounts,

determine credit status, present the account during check-out, and handle guest
payments.

In addition to the above duties, front desk staff may be required to compile statistics on
room occupancy and reservations, maintain communication with the housekeeping
department, and determine daily book balances.

Organization of the reception

The following sections outline the functions of each position.

Front Desk Manager

The manager has overall responsibility for supervising staff, setting departmental goals,
and implementing front office policies and procedures. This manager coordinates front
office operations, assigns tasks, and supervises and supports staff members. In
meetings, evaluate staff performance; discusses operational issues and programs and
ensures that staff members understand and follow hotel policies as well as operating
procedures. Additionally, assists front desk employees during peak operating hours.

The reservations department is under the supervision of the manager, who is

responsible for planning and implementing goals and policies regarding reservations.

The manager must maintain efficient communication with all departments within the
hotel, in case a guest has any needs or complaints; but, especially, with the
housekeeping department. You must also prepare a written report on the activities,
which will then be submitted to the executive director.

Front Office Assistant Manager

Is responsible for executing the goals, policies and procedures established by the
manager; Must be able to actively assist in all operational areas of the front desk. May
have responsibility for coordinating front office operations, training staff, overseeing
accounts.

The Reservations Department

Responsible for receiving, documenting and analyzing all guest reservations. It is made
up of different positions, depending on the size of the hotel.
Receptionist

Responsible for greeting and checking in arriving guests, verifying reservation and
identification information, credit authorization, assigning a room, and distributing keys.
May handle guest requests, take reservations, and direct phone calls to reservations
department; prepare and verify the final account and receive payment. He receives
complaints and as soon as the rooms are vacated he must notify the housekeeping
department and update it in the rack.

Night auditor

It performs two important functions: the balance of all transactions from the previous
day, and it executes the tasks of the receptionist. As an extra, review the credit status
and verify accounts that exceed the authorized limit, prepare lists of accounts that must
be paid, calculate credit sales for billing, and review rooms for the next day. A very
important function, also, is the preparation of a mechanized balance sheet, or
mechanized balance, which is a report that compares daily departmental totals with the
total of all accounts or checks posted to guest accounts.

Receptionist and cashier

Receptionists are responsible for handling check-ins and communications. Cashiers, all
guest payments.

Reservations

Their role is to receive, document and analyze guest reservations. The act of reserving
a room is called “selling rooms” and its basic instrument is the reservation system. The
telephone is also an important means of reservations. In most hotels they overbook
(overbook) due to their percentage of cancellations and no-shows. Once the
reservation is confirmed, a confirmation number is given to the customer.

A deposit, credit card number, or arrival by 6 p.m. may be required to secure a guest's
reservation. (6 p.m. Show).

The Rack is a numbered strip of paper that represents the rooms; All the information
about them is noted in it.

Group Reservations

Group reservations must be made in advance. The group sales representative

reserves or “locks” the estimated number of rooms; In exchange, ask for a guarantee
and set a deadline to receive reservations.

Guest folios

The guest folio is a sheet that contains all their information; So, when a guest checks
in, the reservation data is transferred to the folio. The data entered is some such as
name, address, arrival and departure dates, company to which it belongs, etc. The
charges are also recorded in this folio, as well as all the movements made by the guest
within the hotel.
Reception statistics

The reception keeps statistics about arrivals and departures, room occupancy, charges
owed to the hotel. It is done in order to inform the administration about the status of the
hotel and that allows accurate availability forecasts to be formulated.

Room status report

Reception and housekeeper maintain close communication regarding the status of

each room. The floor supervisors inform the housekeeping department about the status
of the rooms, and they communicate it to the reception.

High balance report

When a guest registers, an account is opened for them. Daily and additional charges
are added to it. A high pay report is used to monitor guest accounts that exceed: the
credit allowance (maximum amount the credit card company has authorized) or the
house limit (fixed credit limit, set by the hotel). ).

Room forecast

Front Desk is responsible for keeping accurate statistics on early departures, extended
stays, early arrivals, cancellations, counter customers and no shows. The reservations
department creates the room forecast (showing the estimated number of rooms
available on a given date).

Chapter 8 - Food and Beverage Operation

Functions of the food and beverage division

Providing food and beverages is one of the oldest services in lodging establishments.
Part of the department is organized like a restaurant, with divisions for the preparation
and service of food and beverages. Other parties may handle room service and
banquet service.

Often, an independent operator who rents the hotel restaurant provides food and
beverage service.

The food and beverage division has four main functions:

• Generate additional profits for the hotel

• Provide food and beverage service to guests

• Provide food and beverage service to the town

• Control costs

Many travelers judge the quality of the hotel by this service. If the service is good, local
residents will also be customers of the dining room.

Food and beverage organization

The food and beverage department is divided into five areas:

• Food purchase

• Food production or preparation

• Food service

• Beverage service

• Banquets and home service

The food purchasing staff is responsible for purchasing products for the kitchen. The
production staff is responsible for developing menus and preparing the food to be
served, and may be made up of an executive chef, assistant chefs and several
“steward” cooks.

The food staff greets, serves and attends to customers or guests and is made up of a
restaurant manager (Hostess or host) and a waiter's captain, waiters and bussers.

The beverage service staff serves drinks and consists of a bar manager, a sommelier,
and the head bartender, and several bartenders and helpers.

The banquet staff provides food at meetings and conventions and consists of a
banquet manager, a sales manager, and a service manager. The overall administration
of these specialized bodies may be the responsibility of the food and beverage
manager.

Food and beverages manager

The food and beverage manager coordinates and inspects the activities of staff in
various areas, plans budgets, controls kitchen, dining room and bar costs, and reports
to the hotel's executive director or assistant manager. The position is usually filled by a
person with knowledge of food and beverage production. Generally, they also have
knowledge of accounting and administration to be able to keep control of costs, a factor
considered important.

Food production staff

He is responsible for the preparation, preparation and cost management of the food
served in the hotel dining room. May be supervised by the executive chef or a food
production manager. The chef has culinary training, while the production manager may
not be trained in this task, but has the necessary experience to perform this job. In
addition to the executive chef, the regular food production staff consists of one or more
assistant chefs, cooks, and stewards.

The chef creates the menu and supervises its preparation, in the hands of the cooks.
The warehouse manager is responsible for filling requisitions, controlling stock and
keeping a record of products. Dishwashers are responsible for cleaning, although
automatic washing machines are used in hotels.

Food service staff

Responsible for serving food to guests, the highest executive is the food service
manager, who supervises the restaurant and room service staff. This works under the
orders of the food and beverage manager and his function is to set goals and direct the
staff, as well as coordinate functions, devise and implement procedures for the
operation of the dining room and evaluate the performance of the staff. The waiters and
waitresses, in charge of the Hostess, are responsible for explaining the menus to
customers, taking orders, collecting food from the kitchen and serving it at the
appropriate table. When the place is large, the waiter is only responsible for delivering
the food, while a person is in charge of the other functions. Each waiter is assigned a
“station,” and must serve the customers within it; It also has a “side” station where it
always keeps supplies for the table such as napkins, tablecloths, cutlery, etc. stocked.

Busboys help the waiter and clean and set the tables. While the client eats, they can
take care of serving drinks and removing dirty dishes from the table, as the guest
finishes eating.

Beverage service staff

Almost all hotels make more profits from drinks than from food. Without beverage
service, this division would not be productive. The beverage manager is responsible for
directing staff, coordinating beverage operations, and implementing cost control
measures. The bar manager manages the operation of the bar and supervises the
bartenders and cocktail/drink servers. The banquet beverage manager supervises a
separate staff of bartenders and servers who are hired especially for banquets.

In a busy bar, two or more bartenders may be available to assist the bartender or head
bartender. Bartenders are the ones who clean the bar and its equipment, replenish
supplies, etc.

In a small division, the sommelier is dedicated to keeping the hotel's wine cellar
stocked, and the head bartender manages the bar. In an even smaller operation both
tasks fall to the head bartender.

Other functions of the sommelier are: searching for wines, negotiating purchases,
keeping the cellar stocked, etc. The Head Bartender oversees the maintenance of the
beverage area and supervises cocktail servers ensuring efficient service to lounge
patrons.

banquet staff

The banquet staff is responsible for selling, coordinating and serving activities such as
business lunches, conventions, receptions, dances, etc. The maximum authority is held
by the banquet manager, who, in addition to stating the requirements of the activity,
coordinates the food service and controls costs. In a large department it is your job to
sell the hotel's food services, develop menus and determine food requirements. Also
plan how to set the table and waiters during the activities.

Food and beverage cost control

It is one of the most important tasks and includes everything from simple storage and
requisition procedures to the use of high-precision scales and automatic distribution
devices. An example is the use of standard portions where each portion is weighed and
this helps avoid waste and allows for a greater number of foods produced with kitchen
ingredients. Effectively controlling food and beverage costs requires a process of
analyzing information and making adjustments to procedures. The inventory method
was the first type of cost control used, in which total food costs are compared with total
sales.

Almost every hotel hires a food and beverage controller whose responsibility is to
predict the division's operating costs and make the budget. Although this responsibility
usually falls to the accounting department, whose accountant will be in charge of
making budgets, forecasts and cost analysis, supervising quality tests, setting menu
prices and keeping records; In addition to designing cost control systems, he
supervises their effectiveness and reports to the executive director.

Cost factors in food and beverages

Food and beverage operating costs are influenced by several factors: food costs, staff
size, and methods of purchasing, receiving, storing, and delivering supplies.

Purchase controls

Food and beverages can be ordered up to six months before use. Hotels hire various
suppliers to supply them with ingredients necessary to make their food and beverages.
Suppliers are chosen according to price and quality comparisons and a market report is
prepared in which the prices of different types of supplies are compared. Many times
samples are purchased to test. Through performance analysis they determine the
quantity and cost of edible or individual portions that can be obtained.

Receiving, storage and delivery of supplies

Items must be inspected immediately to verify they meet hotel specifications. Product
storage is an important factor for cost control, and a problem is caused by petty theft by
employees, so access to warehouses should be restricted only to authorized
personnel. The orders from the different divisions of the hotel are delivered to this and
must be done with a period of advance to ensure that there are no shortages of
supplies when providing service. These requisitions are recorded in a book and at the
end of each day, with these data, the total cost of all the items delivered by the
warehouse is calculated to determine the gross cost of the food consumed. This is
compared to the total cost of the requisitions to ensure that the totals add up.

Control of food production costs

To maximize profits, standard recipes and portions are used. The standard recipe is a
set of instructions for preparing each dish on the menu that is usually printed on cards
that are given to staff so they can follow the instructions precisely. The standard
serving is the pre-established amount of each ingredient that should be used in each
individual serving of each dish. It can be set by weight, or size and number. Beverages
can be controlled through the use of automated pouring measuring devices.

Cost control in food service

Errors made during service (serving cold food, spilling drinks, getting the order or the
customer wrong) increase costs without increasing sales. It is normal for them to occur
but they should be kept to a minimum to help control costs.

Chapter 9- Marketing and Sales

Hospitality Industry Markets

A market segment is a group of potential customers for a product, service, or company.

The hospitality industry market is divided into two broad categories: commercial market
and leisure market. The commercial or business market includes businessmen, such
as sales representatives, executives, and attendees at conventions, banquets, and
meetings. The leisure or tourism travel market is made up of people who travel for
recreation, sports or personal enrichment, such as vacationers, people who want to
travel to places of interest and adventurers.

Although all hotels have customers from both markets, most establishments have been
designed and promoted specifically to attract either one market or the other. But even
within each market segment, customer needs vary.

The commercial market tends to be constant throughout the year while the leisure
market is mainly seasonal. The regular period of high occupancy is called high season;
and the low occupancy period, low season. The transition period between a high
season and a low season is called the bridge period.

Marketing and sales staff

The marketing director

Also called sales director, he is the highest-ranking executive in the division.

Responsible for supervising, coordinating and evaluating staff performance, also
planning marketing activities and approving promotions carried out by other
departments. Works closely with the hotel's CEO to formulate short-term and long-term
plans.

The marketing director hires and trains new staff members. Create activities to attract
new guests, and evaluate the effectiveness of the hotel's marketing programs.

Executives from the rooms and food and beverage divisions meet regularly to keep the
marketing director informed of actual and potential sales in these areas.

The travel and excursion manager

The job of the travel and excursion manager is to generate sales from groups and
charter operations. This manager is responsible for developing and maintaining
contacts in the travel industry, including travel agencies, tour operators, and having
experience negotiating rates and promoting tours. It is also responsible for negotiating
commissions with travel agencies and special rates and discounts for members of the
industry.

The group and convention sales manager

He is responsible for seeking new business in the convention segment. This key
position requires close coordination with large organizations and groups. It is the
manager's job to develop and maintain contacts with these organizations and to
promote the hotel as the likely venue for annual conventions, conferences, meetings
and seminars.

Convention planting is done well in advance of the opening date.

The convention services manager

The convention services manager can support the convention sales manager by
planning group activities. In this position you have the primary responsibility of
managing and coordinating the various services required to carry out a meeting,
seminar or convention.

When a convention sale has been made, the convention services manager formulates
the final plan and takes care of the details. He is the main contact between the client
organization and the various hotel departments that will be involved in the activity. He
must possess both the technical knowledge necessary to identify and coordinate
appropriate services and the important ability to communicate with the client.

The advertising manager

The advertising manager is responsible for planning, implementing and determining

advertising and public relations programs. In many hotels, the advertising manager
works with advertising agencies to develop promotional strategies and develop
advertising programs such as newspaper or magazine ads, radio and television
commercials, and sign design.

The advertising manager's duty is to identify the most effective means of

communication to promote the hotel to the most promising customers, and to purchase
the services of magazine publishers, radio stations, and advertising companies. The
advertising manager approves designs for advertisements, posters, menus, napkins,
and other printed materials used by the hotel. Other tasks include preparing advertising
budgets, evaluating the effectiveness of promotional programs, and holding regular
meetings with the executive director and other department managers to ensure that the
hotel's advertising needs are being met effectively.

Account Executives
An account executive is responsible for marketing the hotel through the opening of
corporate accounts. Negotiate special rates with corporate clients and manage APRA
small group sales. Often the primary contact with the customer, examining complaints
and issues and following up to resolve them.

The account executive may also be responsible for maintaining ongoing

communication with previous guests, usually by correspondence or telephone, to
encourage new deals and business. Other tasks include researching the potential
market (or target market), identifying potential clients, and performing public relations
activities, such as public speaking, giving press conferences, and appearing at charity
events.

Internal sales

The responsibility for promoting the hotel and marketing its services does not
correspond exclusively to the marketing and sales division. When customers register at
the hotel, they become a potential audience for all the services and facilities that the
hotel sells. An important goal of inside sales is to motivate guests to obtain as many
services available at the hotel as possible.

Employees who have personal contact with guests are responsible for promoting food
and beverage services, entertainment, recreational facilities, laundry, valets and any
other revenue-generating activities. Front desk staff, bellhops, manicurists, waiters, and
gift shop employees, among others, must be fully informed about the hotel's services
and facilities and trained to promote them when the opportunity arises.

Chapter 10 - Finance Division

Functions of the accounting department

If the front desk is the “nervous system” of a hotel, the finance department is the
“brain.”

Accounting tools

The main documents and accounting books used by the finance office are the
following:

either Guest accounts, invoices and receipts

either Cash receipts journal

either Accounts Receivable Journal

either Cash Expense Journal

either Purchase orders

either Accounts Payable Journal

either payroll diary

either Sales reports

Bills

When checking out, each guest receives an invoice, also called the guest account. It
lists and adds up the charges the guest incurred during their stay. When a guest
charges the item to their room account, it is posted to the appropriate account either
manually in the guest ledger, or automatically in a computer file. Each night, the day's
charges are posted to the accounts.

An invoice is a request for payment. The customer is asked to settle the account, that
is, pay the balance, or total amount. Once the account has been settled, you will be
given a payment receipt, which is a duplicate of the account confirming that the
balance has been settled in full.

household income

Cash receipts (not to be confused with payment receipts) are the income that the hotel
receives from any source. Income from direct sales is recorded in a cash receipts
journal.

Accounts receivable

Hotel accounts receivable are amounts charged to customer accounts with authorized
credit, usually corporate accounts. The accounts receivable journal, also called the
local ledger, is used to document money owed to the hotel. When a debit is posted, the
current amount is added to the previous balance to calculate the current balance.
When a credit is posted, the amount is subtracted from the previous balance to
calculate the current balance.

Cash outlays

It is any payment that the hotel makes as an operating expense, most of them are
checks to pay, payments for loans, taxes, services, etc. Cash disbursements are used
to record payments to suppliers and other beneficiaries.

Purchase orders

When the hotel purchases a product or service, a purchase order is issued to the
supplier, specifying the products or services to be purchased, and providing information
on shipping and prices. Purchase orders must be authorized and signed by a
supervisor or manager. A signed order is a contract between the hotel and the supplier.
When items are shipped, a shipping order is also provided to the hotel indicating the
quantity shipped, unit price, and length of each item.

Accounts payable

They are the money that the hotel owes to suppliers when a purchase order is issued.
The amount incurred is recorded in the accounts payable journal.
Payroll journal

Salaries and salaries paid to employees are recorded in a payroll journal, as well as
taxes, deductions, compensation, and union dues.

Sales reports

Every night the sales from the previous day are concentrated. On a small property, a
sales concentration is prepared indicating revenue by department and summarizing
front office statistics.

At a large property, sales and statistics are summarized in a daily occupancy and gross
revenue report, which is used to analyze the hotel's sales and occupancy and to
compare this information with the room sales forecast. Managers consult the report to
evaluate staff performance. The report allows each manager to see the impact of their
department or division on the hotel's total revenue.

Financial reports and forecasts

In addition to accurate accounting, financial reports are prepared. These serve to

determine the state of the company and make precise decisions regarding the future.
The finance office produces four important reports:

either Balance sheets

either Operating States

either Sales forecasts

either Operating budgets

Balance sheets

Also called the financial statement, it lists the hotel's assets and liabilities. An asset is
any value that contributes to the value of the company, while a liability is any value that
detracts from the value of the company. Balance sheets are prepared each year and
are divided into three parts: liabilities, assets and stockholders' equity. Stockholders'
equity is determined by subtracting total liabilities from total assets and indicates what
would be left if the assets were liquidated and all liabilities were paid.

Operating States

It is a report that shows the hotel's profits and losses during a certain period. In most
hotels they are prepared monthly, quarterly and annually. This report is divided into
three basic sections: Income, expenses and profits. The income section breaks down
the hotel's income by department, the expenses section breaks down the hotel costs
by each department. Each item of income and expenses is expressed both in dollars
and as a percentage of gross sales. The percentages allow management to see the
relationship between expenses and sales to estimate the future costs of doing
business.

Sales forecasts
Sales forecasting uses estimated sales and budgeted expenses to predict future profits
and losses. Sometimes it looks like the income section of an operating statement.
Future income is estimated based on statistics, examining past operating data at
different times of the year, which then allows sales to be predicted for the following
year.

Operating budget

It is a prediction of future expenses. If sales are forecast appropriately, expenses can

also be predicted with reasonable accuracy. Expenses are of two types: Fixed, which
are the same each month, and Variable, which fluctuate in relation to sales. Variable
expenses are forecast based on corresponding percentages of total revenue shown in
previous operating statements. Managers prepare sales forecasts and budgets for their
department or division and submit them to the business office to be combined, or
consolidated, into the consolidated operating budget.

Automation in the hospitality industry

The computer has benefited the functions of accounting in some way. Three types of
systems are used in hotels: reservation systems, sales systems, and property
management systems. Some hotels also link their systems with those of airlines and
travel agencies.

The reservation system is used to document room reservations. This can display room
availability and rates, place reservations, print strips for the rack (board), enter charges
and prepare arrival reports.

The point of sales system is a system used at front desks to record customer payments
and manage accounts receivable. The computer records all guest payments and
automatically adjusts the accounts receivable journal, and is also used to print
accounts receivable reports and sales concentrates.

The property management system is used to handle the accounting function of all hotel
departments. The system can also be used to determine expenses for operating
expenses and salaries.