Front Office Operation

Hotel Front Desk Objective

• Explain that the primary function of front office staff is to coordinate guest
services, and review basic front office functions and responsibilities that allow
staff to meet guest standards.

• Describe how a front office department in a small, large, and mega hotel may
be organized.

• Review job tasks commonly found in management and non- management

• Consider basic human resources tactics applicable to recruiting, selecting,

Front Desk is a very important department in the hotel, making direct contact with guests. The main
function of this department is Reservation, Guest service, Check-in, Check-out, Telephone, Finance &
Cashiering, Foreign Exchange, Room Assignment, Inquiry etc.

The Front Office is also called the nerve centre of a hotel. It can be defined as a front of the housing
department located around the foyer and the lobby area of a hospitality property. As this department
is located around the foyer area of the hotel and is visible to the guests, patrons and visitors, they
are collectively called “Front Office”.
Should guests have any problems or require to appreciate or comment, they would normally go directly to
the Front Office, because it is convenient to contact and converse with other departments. Therefore, this
department is the direct delegate to link the work and report the consequence to other departments.

This department is one of the major operational and revenue-producing departments of the hotel which
generates two-thirds of the revenue earned by a hotel from the sale of the guest rooms. It involves in
providing valuable services to the guests during the entire guest cycle consisting of Pre-arrival, Arrival,
Occupancy and Departure.
Importance of Front Office Department:

Traditional Front Office functions include reservation, registration, room and rate assignment, guest
services, room status, maintenance and settlement of the guest account, and creation of guest history
records.

The Front Office develops and maintains a comprehensive database of guest information, coordinates
guest services, and ensures guest satisfaction. These functions are accomplished by personal in diverse
areas of Front Office Department.

The front office is also known as the face of the hotel. It is the first guest contact area and also the
nerve centre of the hotel. All the activities and areas of the front office are geared towards supporting
guest transaction and services.
The operational function of the Front Office Department:
• Guest Registration: Does all guest registration-related activities like Check-in, room assignment, welcoming,
room rate etc.
• Guest Service: Fulfils any Guest Services related activities.
• Guest History and records: Creates and maintains a guest profile, history, likes and dislikes, collect feedback etc.
• Guest Database: Develops & maintains a Comprehensive Database of Guest Information
• Updates Room Status: responsible to update the correct room status like CI, CO, DNCO, DND etc.
• Reservation: This section is responsible in registering the room reservation from various sources, with recordings,
filing of reservation records, and revise on the appropriate time to make sure that guests would have their rooms
upon entering the hotel.
• Postage and Parcels: This section is to facilitate guests pertaining to the posting of letters, telegrams, and
parcels.
• Telephone: This section is to facilitate guests pertaining to the telephone both internally and externally, and to
wake guests up in the morning upon request.
• Finance and Foreign Exchange: This section relates with the Accounting Department, through the collection from
guests through their services, and also give the foreign exchange service.
• Inquiry: This section is to answer questions and inquiries of guests. Therefore, this section would have to be alert
with all the movements of the hotel.
• Bell Desk and Concierge: Provide all services related to Bell desk and Concierge.
Staffing the Front Office Department:
In order to carry out its mission, goals and objectives, every company shall build a formal structure
depicting different hierarchy of management, supervision, and employee (staff) levels. This very
structure is referred to as an organization chart.

Moreover, the organization chart shows reporting relationships, the span of management, and staff/line
functions. The organization chart for the front office department differs as per the size of the hotel.

The Main Security Functions Of Hotel Front Office

The Main Security Functions of the Front Office is protecting the Guests and Property. They are 1)
People: Guests health, comfort or wellbeing. Employees & others. 2) Property - Hotel Equipment,
machinery, Hotel Room Supplies, fixtures & fittings, software, revenue, reputation etc.
Typical Staff positions under the Rooms Division Department:

• Front Desk Agent: Registers guests, and maintains room availability information.

• Cashier: Maintains and settles guest folios, and properly checks out guests.

• Night Auditor: Controls the job of the Accounts Receivable Clerk, and prepares daily reports to
management (ex: Occupancy Report and Revenue Report).

• Mail & Information Clerk: Takes Messages, provides Directions to Guests, and maintains Mail.

• Telephone Operator: Manages the Switchboard and coordinates Wake-up Calls.

• Reservation Agent: Responds to Reservation Requests and creates Reservation Records.

• Uniformed Service Agent: Handles Guest Luggage, escorts Guests to their Rooms, and assists guests
for any bit of information requested.
Typical Staff positions of Front Office in a Medium Hotel:

• Front Office Manager / Director Of Rooms: Directly supervises all front office personnel and ensures proper
completion of all front office duties.

• Assistant Front Office Managers: Responsible to assist the Front office manager in his day to operations and also
take charge when FOM is not available.

• Duty Manager: Directly supervises the Reception, Concierge, Telephone, Travel Desk and the Bell desk.

• Guest Relations Manager: Responsible for all the guest relations related activities in the hotel.

• Front Desk Agent: Registers guests, and maintains room availability information.

• Cashier: Maintains and settles guest folios, and properly checks out guests.

• Concierge: Responsible to assist guests by booking tours, making theatre and restaurant reservations, etc.

• Reservation Agent: Responds to Reservation Requests and creates Reservation Records.

• Supervisors: Responsible to oversee and assists the duties and tasks of the respective staff work.

• Uniformed Service Agent: Handles Guest Luggage, escorts Guests to their Rooms, and assists guests for any bit of
information requested.
Typical Staff positions of Front Office in a Small Hotel:

• Front Office Manager / Director Of Rooms: Directly supervises all front office personnel and ensures
proper completion of all front office duties.

• Duty Manager: Directly supervises the Reception, Concierge, Telephone, Travel Desk and the Bell
desk.

• Guest Service Agent: Registers guests, handle telephone, maintain room availability, guest folio,
guest profiles and perform check-out.

• Reservation Agent: Responds to Reservation Requests and creates Reservation Records.

• Supervisors: Responsible to oversee and assists the duties and tasks of the respective staff work.

• Uniformed Service Agent: Handles Guest Luggage, escorts Guests to their Rooms, and assists guests
for any bit of information requested.
Front Office Functions for Guest Security
• The Front Desk staff should never disclose the information about the guest to anyone.

• Front office staff should prohibit the staff to provide any information about the guests to any caller or visitors.

• Should never give room number, room keys and messages or mail of the guest to anyone else.

• Screening of caller before connecting the call to the guest/ no connection of the call without the permission of
the guest.

• Should also inform the guests of personal precautions they may take.

• The bell boy should give instructions to the guest of equipment use.

• Flyers/ pamphlets of safety tips should be placed in the rooms.

• Front Office Staff also help protect guests’ personal property.

• Front Office staff also important to asset protection (charging guests for breakages etc.).
Front Office Functions for Property Security

• The building should be enclosed with a Fencing-High rise concrete wall, wired etc.
• Adequate lighting on all side of the property.
• Security guards/ manning of all entries/ exits.
• CCTV placed at all strategic locations inside and outside the buildings.
• X-ray machines for luggage scanning.
• Inverted Mirrors for scanning of the lower side of cars/ vehicles.
• Underground scanners for cars/ vehicles.
• Underground Tyre-cutters for cars/ vehicles.
• Door framed Metal detectors.
• Handheld scanners.
• Frisking of all guests/ visitors.
• Multi-purpose room keys (for the use of lift/ entry for adjacent mall etc.)
• Use of Sensors or Fire alarms.
List of KPI (Key Performance Indicators) Used in Hotel Front office
1. Average Room Rate (ARR/ADR):

Although room rates may vary depending on the market segment, many lodging property managers
calculate an average room rate (“ARR”). The average room rate reveals the average rate charged per
paid room occupied and is calculated by dividing rooms revenue by the number of paid rooms occupied,
as follows.
Average Room Rate (ARR or ADR) = Total Rooms Revenue / Number of rooms sold
Online Calculator for ARR/ADR

2. Average Rate Per Guest (AGR):

Provides the average revenue contribution by each guest occupied in the hotel, This rate is normally based on every
guest in the hotel including children. Some hotels take their AGR without considering children.
Average Rate Per Guest= Total Room Revenue / Total Number of guests
Average Rate Per Guest W/O Child = Total Room Revenue / Total Number of Adults
3. Bedroom Occupancy Rate:

This operating ratio compares the number of rooms sold to the number of rooms available. Managers rely on this
ratio in determining whether, or not, the premises are being utilised efficiently and whether expansion is
possible.

The bedroom occupancy rate is calculated by dividing the number of rooms sold by the number of rooms
available, as follows.

Bedroom occupancy rate = % of Number of rooms sold / Number of rooms available x 100

4. Revenue per available room (RevPAR)

This operating ratio compares rooms revenue to the number of rooms available. Revenue per available room
(“REVPAR”) is calculated as follows:

Revenue per available room = Total Room Revenue / Total Number of Available Rooms for sale
5. Cost Per Occupied Room

This operating ratio compares the cost of the rooms department to the number of rooms sold. Managers rely on
this ratio to determine whether, or not, room costs are reasonable. Occupied room cost is calculated by dividing
the cost of the rooms department by the number of rooms sold, as follows:

Cost per occupied room = Total rooms department cost / Number of rooms sold

6. Potential Average Rate Single and Double Rate:

One of the main computation involved in the front office or revenue management is to calculate the hotel's yield
statistics. Potential Average Rate provides the amount of revenue that would have been generated if all the
rooms were sold at their published or rack rate.

Potential Average Single Rate = Single Room Revenue at Published Tariff or Rack Rate / Number of Rooms sold as
singles
7. Room Achievement factor

The Room Achievement Factor is also known as Rate Potential Percentage of a hotel, is defined as the percentage of
the Rack Rate that the hotel actually receives by selling their rooms. Room Achievement factor is calculated by
dividing the Actual Average Rate (ARR or ADR) by the Potential Average Room Rate.

Additionally, depending upon the hotel's management policy the Actual Average Rate is either divided by the total
Rooms Sold or Occupied Rooms. Room Sold = (Occupied Rooms - Complimentary and House use)

Room Achievement Factor = Actual Average Rate / Potential Average Rate

8. Rooms labour cost

The rooms labour cost percentage is calculated by dividing room payroll and related expenses by total room
revenue, as follows:

Rooms labour cost = % Rooms Payroll & Related expenses x 100 / Room Revenue
End of our first half for our Prelim Topic