ACCOMMODATION OPERATIONS AND MANAGEMENT HOW AN OPERATIONS DEPARTMENT FITS INTO AN

(PRE-LIM) ORGANIZATION

CEO

HOTEL OPERATIONS MANAGEMENT Operations Finance IT Sales Marketing HR

WEEK 1

What is Operations Management? What is Operations Management?

Operations management is the area of
management that is responsible for designing
and managing the production of a good or
service in order to fulfill organizational goals.
The goal of operations management is to
support and fulfill the strategic goals of the
business while using the least amount of
resources available without sacrificing efficiency
or quality.
The four key areas of operations practices
include goods and services, process
management, supply chain and inventory and
quality control.
Operations management is the business
function responsible for managing the process
of creation of goods and services.
It involves planning, organizing, coordinating
and controlling all the resources needed to
produce a company’s goods and services.
Operations management is the central core
function of every company.
This is true regardless of the size of the
company, the industry it is in, whether it is
manufacturing or service, or is for-profit or not-
for-profit.
The transformation role of OM makes this
function the “engine room” of the organization.
As a result, it is directly responsible for many
decisions and activities that give rise to product
design and delivery problems.
The design and management of operations
strongly influence how much material resources
are consumed to manufacture goods or deliver
a service. Making sure that there is enough
inventory to produce the quantities that need
to be delivered to the customer, and ensuring
that what is made is in fact what the customer
wants.
All organizations can be broadly divided into
two categories: manufacturing organizations
and service organizations.
Although both categories have an OM function,
these differences pose unique challenges for
the operations function as the nature of what is
being produced is different. There are two
primary distinctions between these categories
or organizations.
First, manufacturing organizations produce a
physical or tangible product that can be stored
in inventory before it is needed by the
customer. Service organizations, on the other
hand, produce intangible products that cannot
be produced ahead of time.
Second, in manufacturing organizations
customers typically have no direct contact with
the process of production. Customer contact
occurs through distributors or sellers.
MANUFACTURING VERSUS SERVICE ORGANIZATIONS
MANUFACTURERS SERVICES
TANGIBLE PRODUCT INTANGIBLE PRODUCT
PRODUCT CAN BE PRODUCT CANNOT BE
INVENTORIED INVENTORIED
LOW CUSTOMER HIGH CUSTOMER
CONTACT CONTACT
LONGER RESPONSE TIME SHORT RESPONSE TIME
CAPITAL INTENSIVE LABOR INTENSIVE
HOTEL OPERATIONS
Hospitality is made up of two services: the
provision of overnight accommodation for
people travelling away from home, and
options for people dining outside their home.
 Hotels are typically referred to by hotel type or HOTEL CHARACTERISTICS BASED ON MARKET TYPE
category.
MARKET TRAVELLE CHARACTERISTICS
The type of hotel is determined primarily by the SEGMENT R TYPE
size and location of the building structure, and Commercial Business High-volume
then by the function, target market, service corporate accounts
in city
level, other amenities, and industry standards properties
Stronger demand
Monday through
Thursday
Summary of Hotel Types Most recession-
proof of the market
TYPE OF CLASSIFICATION EXAMPLE OF segments
CLASSIFICATION Lower average
SIZE (number of rooms) Under 50 rooms daily rate (ADR)
50-150 rooms than other
150-299 rooms segments
300-600 rooms Leisure Leisure Purpose for travel
More than 600 rooms include sightseeing,
recreation, or
LOCATION Airport hotel visiting friends and
Casino hotel relatives
City center hotel Stronger demand
Resort hotel Friday and
LEVEL OF SERVICE Economy/limited Saturday nights
service and all week during
Luxury service holidays and the
Mid-level service summer
Includes tour
MARKET AND FUNCTION] Airport hotel
groups in major
All-inclusive resort cities and
Bed and breakfast tourist attractions
Business hotel Metings Corporate Includes meetings,
Boutique hotel and Groups, seminars, trade
Casino Groups Associatio shows,
Conference center ns conventions, and
Convention center ,Smerf gatherings of over
Extended-stay hotel (social, 10 people
military, Peak convention
Resort hotel
educationa demand is spring or
Suite hotel l, religious, fall
Timeshare and and Proximity to a
condominium hotel fraternal conference center
OWNERSHIP AND Chain with a brand segment) and
AFFILIATION affiliation meeting and
Independent banquet space
AMENITIES Accessibility increase this
market
Airport
Exetended Business Often offers
Beach
Stay and kitchen facilities
Casino Leisure and living
City center room spaces
Childcare Bookings are more
Fitness club than five nights
Golf Often business
Pool related (corporate
Ski projects,
construction
Spa
projects)
Tennis
Leisure demand
Weddings driven by a variety
of circumstances
 including family The chief engineer is also responsible for
visiting relatives
preventive maintenance and resource
management programs.

FOOD AND BEVERAGE DIVISION

GENERAL MANAGER AND DIRECTOR OF OPERATIONS
The general manager or hotel manager serves
as the head executive.
Division heads oversee departments including
managers,
administrative staff, and line-level supervisors.
The general manager’s role is to provide
strategic leadership and planning to all
departments so revenue is maximized,
employee relations are strong, and guests are
satisfied.
The Director of Operations is responsible for
overseeing the food and beverage and rooms
division.
This role is also responsible for providing
guidance to department heads to achieve their
targets and for directing the day-to-day
operations of their respective departments.
The director of operations also assumes the
responsibilities of the general manager when he
or she is absent from the property.
ACCOUNTING
The food and beverage director is responsible
for catering and events, in-room dining, and
stand- alone restaurants and bars.
The executive chef, the director of banquets,
and the assistant managers responsible for each
restaurant report to the director of food and
beverage.
The director assists with promotions and sales,
the annual food and beverage budget, and all
other aspects of food and beverage operations
to continually improve service and maximize
profitability.
HUMAN RESOURCES
The human resources department provides
guidance and advice on a wide range of
management- related practices including
recruitment and selection, training and
development, employee relations, rewards and
recognition, performance management, health
and safety.

The controller is responsible for overall

accounting and finance-related activities
ROOMS DIVISION
including accounts receivable, accounts
payable, payroll, credit, systems management, Front Office Housekeeping Reservations
> Reporting to the > The executive > Large full-service
cash management, food and beverage cost
director of rooms, housekeeper hotels typically
control, receiving, purchasing, food stores, yield the front office manages and have a reservations
management, capital planning, and budgeting. manager controls oversees department, and
the availability of housekeeping the reservations
rooms and the day- operations and manager reports
to-day functions of staff including the directly to the front
ENGINEERING AND MAINTENANCE the front office. housekeeping office manager.
manager,
The chief engineer is the lead for the effective > The front desk supervisor, house > The guest’s
agent reports to persons, and room experience starts
operation and maintenance of the property on the front office attendants. An with the first
a day-to-day basis, typically including general manager and works executive interaction a guest
maintenance, heating, ventilation and air in the lobby or housekeeper is has with a
reception area to responsible for property, often
conditioning, kitchen maintenance, carpentry, welcome the guests implementing the during the
and electrical and plumbing. to the property, operating reservation
process arrivals and procedures and process.
departures, standards. He or
 coordinate room she plans, > Reservations
assignments and coordinates, and agents convert calls OPERATIONAL ISSUES IN THE ACCOMMODATION
pre arrivals, and schedules the to sales by offering BUSINESS AND ORGANIZATIONAL STRUCTURE IN
responds to guests’ housekeeping staff. the guest the
THE HOTEL AND LODGING INDUSTRY
requests. opportunity to not
> Room audits and only make a room WEEK 2-3
inspections are reservation but also
completed book other
regularly to ensure amenities and
OPERATIONAL ISSUES IN THE ACCOMMODATION
standards are met. activities. BUSINESS

Employee Turnover – It is the first common

SALES AND MARKETING
The sales and marketing director is responsible
for establishing sales and marketing activities
that maximize the hotel’s revenues.
This is typically accomplished by increasing
occupancy and revenue opportunities for the
hotel’s accommodation, conference and
caterings space, leisure facilities, and food and
beverage outlets.
The sales and marketing manager is responsible
for coordinating marketing and promotional
activities and works closely with other hotel
departments to ensure customers are satisfied
with all aspects of their experience.
CATERING AND CONFERENCE SERVICES
In large full-service hotels with conference
space, a hotel will have a dedicated catering
and conference services department.
The director of this department typically reports
to the director of sales and marketing.
The catering and conference services
department coordinates all events held in the
hotel or catered off-site.
Catering and conference events and services
range from small business meetings to high-
profile conferences and weddings.
operational issue in the hotel business
The phrase "around-the-clock" also refers to
employee availability. It's not your standard
employment with office hours from Monday
through Friday.
To serve the types of consumers that the hotel
industry draws, the staff must have the
appropriate personality.
Operating Costs
Hotels make an effort to stay current with
technological advances, but change increases
costs. To keep current, some hotel chains
mandate renovations at their properties every
two to four years.
Natural Disasters
It frequently happens in tourist destinations
like seasides or islands. Taking care of
passengers and the extensive clean-up period is
part of dealing with a disaster like an
earthquake or storm.
Sharing Economy – Is a relatively new economic
model where individuals rent beds, vehicles, boats,
and other unused assets from one another directly,
all arranged via the internet.
Airbnb is the most well-known application of this
approach. Without the need for any
documentation, it gives tourists a platform and
administers all part of the connection.
Distribution and Online Travel Agents and Online
Bookings
Online travel agencies are a crucial component
of online distribution and a useful marketing
and third party distribution resource for hotels.
OVERVIEW OF DISTRIBUTION CHANNELS AVAILABLE ORGANIZATIONAL OBJECTIVES
TO HOTELIERS
The organizational structure of a hotel is
DISTRIBUTION BENEFITS pointless without organizational objectives. In
CHANNELS order for the hotel to achieve the aims it sets
Hotel or Brand Consumers prefer to forth, both internal and external issues are
websites make direct
reservations with the
addressed in these objectives.
venue. Meetings per week with department heads to
Reduces or eliminates discuss operational issues could be an internal
booking fees. goal for a hotel.
Instills consumers with Goals for hiring seasonal employees and varying
the trust to book.
rates for weekdays and weekends are examples
Online Travel Agent Generates a billboard
effect of external objectives that can be found in an
Works successfully organizational structure for a hotel.
when online travel
agencies are the most
relevant channel for the
SPAN OF CONTROL
hotel's target market.
Mobile Necessary to capture The chain of command in a hotel organizational
last-minute bookings
structure is referred to as the "span of control."
Global Distribution Increasing awareness of
System (travel agents) using travel agencies Each department at a hotel with a broad scope of
Target customers who
responsibility is required to report directly to the GM.
stick with traditional
channels. Hotels using narrow spans of control delegate
Social Media Offers the chance to
management authority to assistant managers,
strengthen ties with
customers by reacting department heads and supervisors for day-to-day
to visitor complaints problems.
and ideas

ORGANIZATIONAL STRUCTURE IN THE HOTEL AND DEPARTMENT RESPONSIBILITIES

LODGING INDUSTRY
A hotel owner's detailed plan to outline the
duties and operations of each department is
known as the organizational structure of the
hotel.
Every facet of hotel operations, including the
front desk, room service, and human resources
division, are brought into order by this
structure.
To guarantee daily maximum profitability from
each room, restaurant, and bar, hotel
organizational structures are required.
The five departments that are listed in a hotel
organizational structure are Rooms; Food and
Beverage; Human Resources; Marketing; and
Accounting.
The Rooms department handles customer
service including laundry, housekeeping and
reservations.
F&B is responsible for the management of the
restaurant, bar, and room service operations.
The Human Resources department is
responsible for the task of managing employee
hiring, training, and benefits
Accounting is in charge of the hotel ledger.
The Marketing department is responsible of
Selling hotel advertising space and managing
promotions
ORGANIZATIONAL FLOW CHART
A hotel's position-by-position interactions can be the
topic of an organizational flow chart, which can be as
broad as a straightforward departmental overview.
A small hotel with a few employees can have a
two-level organizational chart with the
proprietor at the top and lines leading to
housekeeping, reservations, and maintenance.
A chain hotel needs add more layers of
management, such as an executive board and
regional managers, increasing the flow chart's
number of layers to at least four.
JOB DEFINITION AND RESPONSIBILITIES
An organizational structure ought to include a
thorough description of duties for each
position title.
Human resource managers in your hotel utilize
this list for job postings and employee reviews.
ORGANIZATIONAL STRUCTURE OF HOTELS
The majority of hotels employ a hierarchical
organizational structure with set departments
and duties.
Medium and low-level supervisors oversee
each individual department. They plan
employee activities, delegate work, oversee
daily operations, and keep tabs on the
department's overall effectiveness.
No two hotels are the same. The structure of
the hospitality industry depends on several
factors, including the establishment size, its
services and amenities, its budget and its
business goals.
ORGANIZATIONAL STRUCTURE OF HOTELS
OWNERS AND EXECUTIVE MANAGERS
The owner and general manager of the hotel
typically make up the executive level.
The hotel owner establishes the rules and
regulations for the establishment and gives the
general manager responsibility for carrying
them out.
The general manager is in charge of running
the day-to-day operations of the hotel and
supervising the activities of several departments
like food and beverage, laundry, and
housekeeping.
ASSISTANT MANAGERS SUPPORTING THE GENERAL
MANAGER
The assistant manager serves as the general
manager's right hand in many hotels and
assists with a variety of everyday duties. The
assistant manager's responsibility is to keep in
touch with all department heads and make
sure they are handling any issues that might
have an impact on the hotel's performance
criteria.
If the general manager is unwell, on vacation, or
otherwise absent, the assistant manager may
also assume the general manager's duties.
MID-LEVEL OR DEPARTMENTAL MANAGERS
The finance manager is in charge of the hotel's
bookkeeping, budget, and spending, while the
marketing manager is in charge of putting
promotional efforts into action to draw visitors.
The human resources hotel manager is
responsible for supervising hiring, training, and
development of all hotel workers. She also
makes sure that each employee is paid in
accordance with the hiring standards.
OPERATIONAL AND GUEST-FACING STAFF FRONT DESK

The individuals who operate in the various hotel
departments, such as food and beverage,
housekeeping, the front desk, the bar, and the
restaurant, are referred to as the operational
staff of a hotel.
Staff members who meet visitors, show them to
their rooms, and transmit specific requests to
the front desk include chefs, cooks,
dishwashers, guest room attendants, laundry
room attendants, room service waiters, porters,
and customer reps.
The hotel front office (hotel front desk) is one
of the first touchpoints your guests have with
your hotel. The primary focus of the hotel front
office is handling check-ins and check-outs and
assigning proper guest rooms.
The hotel front office usually handles a whole
host of other front office operations from
taking care of guest requests and complaints to
selling add-ons and services at the best rates to
help increase hotel revenue.

WHAT ARE THE MAIN SECTIONS UNDER THE FRONT

OFFICE DEPARTMENT?

Reservation Department
Registering room reservations
Filing reservation records
Reception
HOTEL ROOMS DEPARTMENT AND FUNCTIONS
Completing check-ins and check-outs
WEEK 4-5
Explaining the available payment methods to
the guest
A. Hotel Rooms Department and Function Responding to complaints
Hotel comprises several businesses or revenue Telephone Operator
centers and cost centers. It consists of different Answering internal and external phone calls
departments, and each specialty area requires Making wake-up calls, when requested.
dedication and a quality commitment to get Bell Desk
little things right all the time and provide a high Handling and delivering guest’s luggage
standard of service to the guests that gives Escorting guests to their rooms
satisfaction and convenience to them. Collecting room keys
Concierge
Arranging excursions upon request
B. Rooms Division Department Organization Chart Recommending places to visit and popular
activities
Arranging errands like laundry

THREE MAIN FUNCTIONS OF FRONT OFFICE

1. To sell rooms – Sales or reservations staff make up

room sales until the evening before the guest’s
arrival.
2. To maintain balanced guest accounts – This begins
with advance deposits, opening the guest folio
(account), and posting all charges from the various
departments.
3. To offer services such as handling mail, faxes,
messages, and local and hotel information –
People constantly approach the front desk with
questions. Front-desk employees need to be
knowledgeable about the various activities in the
hotel

RESERVATIONS

Reservations refer to the act of booking or

reserving something in advance, such as a
hotel room, a flight ticket, or a table at a
restaurant. In the hotel industry, a reservation
is an arrangement to hold a room for your use
at a later date. A room availability contract is
between the hotel and the guest. It ensures
that the guests will have a room available when
they arrive at the hotel.

Concierge

A concierge is a specialized customer service

agent who works in the hospitality sector. They
are also known as guest relations managers or
residential concierges. They are there to make
sure that visitors or customers have a good time
and can access any resources or services they
might require.

HOTEL CONCIERGE DUTIES AND RESPONSIBILITIES

Responsible for greeting and welcoming guests

Act as the point of reference
Understand customer’s needs and provide them
with personalized solutions
Acquire extensive knowledge of the premises
and the nearby venues and businesses
Arrange events, excursions, transportation etc.
Answer the phone and make reservations, take
and distribute messages or mail and redirect
calls
Respond to complaints and find the appropriate
solution