Carlos Amaro – Chapter 3 Summary

In the third chapter, title “Rooms Division Operations” , the text details the primary departments that that constitute a hotel¬†and there various functions. The chapter begins by discussing the managerial structure of a typical hotel. Here it focuses on the preeminent¬†position of general manger. It stresses the importance of the role by mentioning how the general manger is seen as the representative of their respective hotels, and are ultimately responsible profitability of¬†the enterprise they govern.¬†It goes on to say that general¬†managers typically run a hotel in tandem with a complimentary executive committee. According to the text, the executive committee consist of heads of the major departments in a¬†hotel. These departments include rooms division, food and beverage, marketing and sales, and human resources. Afterwards, the chapter delves into the centrality of the front desk. It elaborates on how the front desk is the place where rooms are sold, and where the daily balancing of guest accounts occurs. The¬†chapter devotes a sections to the arduous but integral housekeeping department and its key role in maintaining quality guest accommodations. In addition, the text delineates how certain organizational tools, such as PMS, centralized reservations, and yield management, are assisting both financially and in terms of quality of service. In conclusion, the text remarks currents trends in internal hotel operations along with advice on potential career paths in hotel management.

Key Terms

1.Application service provider (ASP)- Textbook def: Delivers a complete booking system tied to the hotel’s inventory in real time via the internet. My example: Application service providers¬†allow for¬†an efficient way for hotels to outsource sales operations.

2. Average daily rate(ADR)- My example: A hotel manager will utilize the average daily rate forecast the revenue for a particular time of the year.

3.Call accounting systems(CAS)- My example: Even though telephone charges are a dying revenue center in modern hotels, call accounting systems are utilized to help bring what little that can still be made from them.\

4.Catastrophe plans- My example:  Every hotel should have catastrophe plan in the event a natural disaster strikes.

5.Central Reservation office(CRO)- My example: Large hotel chains tend to have a central reservation office, so they can more efficiently process reservations from their various properties.

6.Central reservation system(CRS)- My example: Central reservation systems allow hotels in referral associations to assist each other when one is in need of occupancy.

7.City ledger- My example: Hotels can provide credit to a large corporate client with the use of a city ledger.

8.Concierge- My example: If a guest wants tickets to a sold out concert, their best bet is to speak with the concierge of the hotel.

9.Confirmed reservations- My example: A guest will always have proof if they have a confirmed reservation.

10.Cost centers- My example: Utilities are a basic cost center of any business.

11.Daily report- My example: A general manager relies on a daily report to make informed decisions about the operations of their hotel.

12. Employee Right to Know- My example: Employees are obligatorily informed about the risk of their occupation as result of the Employee Right to Know.

13.Executive committee- My example: A general manager uses meetings with the executive committee to stay informed about the happenings of different hotel departments.

14.Global distribution systems (GDS)- My example: International hotel chains rely on global distribution systems to stay operational in their various markets.

15.Guaranteed reservation- My example: A hotel can face litigation if it does not honor a guaranteed reservation.

16.Night auditor- My example: The night auditor will be the first to know how much revenue a property brought in on a given day.

17. Occupational Safety and Health Administration (OSHA)- My example: Employees are ensured by OSHA that will work in a safe environment.

18.Productivity- My example: A general manager is the one who is ultimately responsible for keeping a hotel’s productivity high.

19.Property management systems (PMS)- My example: Billing a guest correctly is made infinitely more easy with the use of a PMS.

20.Revenue management- My example: Room rates are primarily determined through revenue management.

21.Revenue center- My example: Food and beverage provision is a growing revenue center for many hotels.

22.Revenue per available room (REV PAR)- My example: In the hotel industry REV PAR is customarily used to rate a properties’ competitiveness.

23.Room occupancy percentage (ROP)- My example: ROP is integrated into daily reports so concerned parties can see how many rooms were bringing in revenue on a given day.

24.Room rates РMy example: Room rates fluctuate based on supply.

25.Room divisions- My example: Most hotel are organized along the lines of rooms division.

26.Uniformed staff- My example: Uniformed staff are always the first ones to encounter guest at a hotel.

27.Yield management- My example: Decisions about room rates are usually reached using yield management.




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