This chapter focus on the functions of a hotel and the major departments that make sure that a customer received the best services and accommodation that a customer should receive during a stay in any hotel business. Some of the major department that are part of a hotel business are the rooms divisions director, the food and beverage director, the marketing and sales director, the human resources director, and the chief engineer accounting or controller, and the chief engineer or facility manager.

Key Words and Concepts:

1. Application Service Provide (ASP) – Example: Is a system in which you can book a hotel room online with a computer.
2. Average Daily Rate– Example: Is a formula that hotel implements to calculate the division of room revenues by the total number of room sold in a hotel business. Ex: computer database chart.
3.  Call Accounting Systems (CAS) – Example: Is a system that help monitor and track the customer’s phones charges. Ex. Computer database chart.
4.  Catastrophe Plans– Example: is a plan that the security staff developed to ensure the safety of guess and staff from any type of natural disaster. Ex: Hurricane, and earthquakes.
5.  Central Reservation Office (CRO) – Example: is the office where reservation are made by guesses.
6.  Central Reservation System (CRS) – Example: Is an online reservation system that help the guest to reserve a room at any chain hotel company.
7.  City Ledger– Example: Is the accounting of a company that has established credit with the hotel.
8.  Concierge – Example: is a secretary that help the guesses in a hotel with the services that are available during their visits.
9.  Confirmed Reservations – Example: Is a reservation in a hotel that is made by a guess with sufficient time and provide a clearly view of the room view and capacity and provide a confirmation number at the end of his or her transaction.
10.  Cost Centers – Example: The Human Resource department is an example of cost centers because they are responsible for managing the cost of a business for an incorporation, but are not responsible for the revenues or investment decisions.
11.  Daily Report – Example: Is a report that be need to be performed by the accounting at the end of every night shift.
12.  Employee Right to Know – Example: Is the awareness of dangerous chemical used in a business.
13.  Executive Committee – Example: The Executive management is responsible for all the major decision in a hotel business that could affect the business budget in decision making.
14.  Global Distribution Systems (GDS) – Example: is a software that help hotels to obtain reservations through online reservations.
15.  Guaranteed Reservations – Example: Is a type of transaction with the deposit of a credit card that guarantee the reservation of a hotel room, when a guess expected to arrive late or unable to show up.
16.  Night Auditor – Example: Is an accounting or clerk that verify and accurate the customers balanced at the end of the shift.
17.  Occupational Safety and Health Administration (OSHA) – Example: Is a law that require all employee to be safe and work in a healthy condition.
18.  Productivity – Example: Is the amount of product, good and services produce by an employee.
19.  Property Management Systems (PMS) – Example:
20.  Revenue Management – Example: Is an accouter that is responsible to analyzed and maximize the revenues business when it can be profitable and when the economic is weak by selling discount hotels room.
21. Revenue Centers – Example: The accounting department of a hotel or any business is responsible for the cost and profit of an organization.
22. Revenue Per Available Room (REV PAR) – Example: Is the total revenues that a hotel could get by the divisions of the total room that are available and not reserved in that night.
23. Room Occupancy Percentage (ROP) – Example – Is the total number of room occupy by guesses divided by the total room that are available in the hotel business.
24. Room Rates – Example: Is the various rates charge for a hotel room.
25. Rooms Division – Example: Is the operation of a hotel business that involved the security of a guest from the beginning of a hotel reservation and end with the guest satisfaction during their hotel journal reservation.
26. Uniformed Staff – Example: Are the hotel staff that work in the front desk with the uniform and greet guesses on a hotel. These includes door attendant, the bell person, housekeeping and security.
27. Yield Management – Example: Is the analytical study of a business that help an owner to analyze past reservation in attempt to maximize the profit of a business.