Chapter Summary

Chapter 3 focus on the duties and responsibilities of the executives and department heads of the room division operations. Explains the roles of the executive committee, hotel manager, front desk, housekeeping, reservations, and concierge services. This chapter talks about property management systems, and discuss yield management. Additionally, you learn how to  calculate occupancy percentages, average daily rate and potential rooms revenue.  Some of the most important key terms and concepts are described below.

Key Terms and Concepts

1.  Application Service Provider (ASP). My example: The General Manager at my new hotel will be reviewing bids from different companies, to secure a contract with an ASP provider for the long distance calls.
2.  Average Daily Rate (ADR). My example: Suppose that a hotel has 400 available rooms each day with a rack rate of $100. If all of the rooms were sold each day at this maximum rate, the maximum daily rate revenue sold would be $40,000.00.
3. Call Accounting Systems (CAS). My example: Is a software or hardware application that has the ability to capture, record and assign costs to all telephone usage within the hotel.
4. Catastrophe Plan. My example: It is a crucial plan among lodging executives for coping with floods, hurricanes, tornadoes and droughts.
5. Central Reservation Office (CRO). My example: The Central Reservations Office for Disney World Resort and Dining operates seven days a week with the following schedule: Monday thru Friday 7 a.m. to 10 p.m.; Saturday & Sunday 7 a.m. to 8 p.m.
6. Central Reservation System (CRS). My example: Is a computerized system that stores, and distributes information of a hotel, resort, or other lodging facilities making it easy for individuals to reserve rooms over the internet or telephone.
7. City Ledger. My example: The new hotel in Waters Place is currently looking for a city ledger; the main responsibilities would be to check all contracts and lines of credits; follow up on all outstanding accounts.
8. Concierge. My example: The concierge at the last hotel that I stayed in Orlando, helped me secured nice tickets to a dining experience by the bay.
9. Confirmed Reservations. My example: The Tropicana Hotel in Atlantic City, NJ; requested a valid email address to send me a confirmed reservation details page prior to my arrival.
10. Cost Centers. My example: Security, Accounting, Marketing and Sales, Engineering and Human Resources are among the best examples of cost centers in hotels, as they do not directly generate revenue.
11. Daily Report. My example: The front office manager at my new hotel requests a daily report, about the number of guests using the hotel’s valet parking services. He needs to make sure that the front office staff is properly promoting it.
12. Employee Right to Know. My example: As a responsible employer and to be in compliance with the law; I have my new staff attend a training session on the chemicals they may be exposed in the job.
13. Executive Committee. My example: Is a group of individuals within the hotel that consult with the general manager in a regular basis and are in charge of the sub-areas of the hotel. Global
14. Distribution System (GDS). My example: Every year global distribution systems allow me to purchase tickets from multiple different providers or airlines.
15. Guaranteed Reservations. My example: A guaranteed reservation for my hotel in Jamaica, was not issued to me until they secured the payment with a credit card.
16. Night Auditor. My example: As a night auditor I am responsible for performing basic front desk duties and ensuring that payments have been collected as necessary.
17. Occupational Safety and Health Administration (OSHA). My example: Is an agency of the United States Department of Labor. Its mission is to assure safe and healthful working conditions for working men and women by setting and enforcing standards and by providing training, outreach, education and assistance.
18. Productivity. My example: The productivity of the group’s effort surprised everyone, and increased dramatically since last year.
19. Property Management System (PMS). My example: They are computerized systems that facilitate the management of properties, personal property, equipment, including maintenance, legalities and personnel all through a single piece of software.
20. Revenue Management. My example: The Hilton Revenue Management’s experienced and talented teams are dedicated to helping their properties achieve superior market share and profitability.
21.  Revenue Centers. My example: Hotels may add a restaurant or banquet room as an additional revenue center for the business.
22. Revenue per Available Room. My example: A hotel calculation comparing the revenue generated by room rents to the total amount of rooms that are available for rent.
23. Room occupancy percentage (ROP). My example: The number of rooms occupied divided by rooms available.
24. Room Rates. My example: The standard room rate available for this coming week at the Ritz- Carlton New York, Central Park is $895 plus $136 for taxes and fees.
25. Room Division. My example: Room Division is responsible for the housekeeping, as well as for the front office staff in a hotel.
26. Uniformed Staff. My example: Employees who work in the uniformed service department of the hotel generally provide the most personalized guest service. Examples are bell attendants, door attendants, valet parking attendants and concierges.
27. Yield Management. My example: Peter is responsible for analyzing the yield management on all of their products at the hotel, to try and maximize revenue and profits.