Chapter Summary

Chapter four focuses on food and beverage operations. Describes the duties and responsibilities of a food and beverage director and other key department heads. Some of the departments explained within the food and beverage division in this chapter are: Kitchen, restaurant, bars, stewarding, catering, and room service. It teaches how to do calculations using key food and beverage operating scales.

Key Words and Concepts

1. Banquet. My example: As a holiday tradition, the general manager arranged a Christmas banquet for the entire staff as a form of appreciation for their hard work.
2. Banquet Event Order (BEO). My example: The hotel catering manager prepared a banquet event order for the event manager who was organizing a fundraising gala in the main ballroom.
3.  Brigade. My example: The Brigade helps facilitate communication between staff and members. This is an organized system with the kitchen chef is in charge of supervising the rest of the line cooks.
4.  Capture Rate. My example: Capture Rate gives the general manager a predictable number on how many guests is to be expected.
5.  Catering. My example: The hotel was preparing a catering fundraiser gala for children with lupus.
6.  Catering Coordinator. My example: The catering coordinator showed the president of the fundraiser a list of foods and desserts he can choose for the fundraising gala.
7.  Catering Event Order (CEO). My example: The catering event order hired additional photographers and videographers for the gala. To insure the guest traveled home safely she hired additional transportation.
8. Catering Service Manager (CSM). My example: Overall the president of the fundraising was pleased with the hard work of the all the individuals which made the gala an absolute success. He gave a special thanks to the catering service manager for hiring such talented individuals.
9. Chef Tournant. My example: The chef tournant rotation through the stations was a major help to the station chef.
10. Chief Steward. My example: The chief steward had to call a meeting with the kitchen staff to discuss complaints being received about the waiting time for guests to receive their orders.
11. Classroom-Style Seating. My example: Classroom-style seating is optimal for the host, because it directs all the attention towards him/her.
12. Contribution Margin. My example: The general manager used the restaurant’s high contribution margin as proof to show that business was improving.
13. Dinner-Style Room Seating. My example: The chef used dinner-style room seating for his event, to ensure that everyone in attendance was being social.
14. Director Of Catering (DOC). My example: The Marriot Hotel manager searched desperately for a new director of catering. Only a good DOC knows how to prepare for an event ahead of time, so he/she is not scrambling last minute.
15. Director of Food and Beverage. My Example: As director of food and beverage, Helen always makes sure she designs a new menu for the holiday season.
16. Executive Chef. My Example: Being the new executive chef, John felt a lot of pressure on him to make sure everyone in the kitchen was performing.
17. Food Cost Percentage. My Example: Ben purchases water bottles for the hotel at $1.00 each, and then sells them for $2.00. This means his food cost percentage is 50%.
18. Food Sales Percentage. My example: The percentage of revenue generated through sale of food or drinks
19. Horseshoe-Style Room Seating. My Example: The customer service trainer requested a horseshoe-styled room seating to help the staff interact during the workshop.
20. Kitchen Manager. My Example: The kitchen manager at Sea Shore, makes sure all kitchen staff take safety procedures seriously to prevent any injuries.
21. Labor Cost Percentage. My Example: The Labor Cost Percentage for the new restaurant is 42%. This was calculated by dividing the employee labor cost ($15,000.00), by the total cost of doing business which is $35,000.00.
22. Perpetual Inventory. My Example: All modern kitchen managers use perpetual inventory software to know the exact amount of stock available.
23. Pilferage. My Example: Safes were introduced into the hotel industry to help prevent accusations of pilferage towards the room service staff.
24. Pour/Cost Percentage. My Example: Similar to food cost percentage, except used in beverage control.
25. Responsible Alcoholic Beverage Service. My Example: A bar’s failure to comply and uphold the standards of the responsible alcoholic beverage service can result in a lawsuit.
26. Restaurant Manager. My Example: To secure an effective establishment, sometimes restaurant managers have to make difficult decisions like firing an inefficient employee.
27. Room Service. My Example: One element that aided the success of the hotel industry was the offering of room service. Room service allows guests at a hotel to get up and get their day started, without having to worry about the upkeep of the room.
28. Shopper. My Example: People who are paid to use a bar as a regular guest would, except that they observe the operation closely.
29. Sous Chef. My Example: In stressful situations the head chef relies on the sous chef to aide in finding the solution.
30. Station Chef. My Example: To avoid chaos, the restaurant manager appointed several station chefs. These station chefs will each manage their own part of the kitchen, and share the responsibility.
31. Theater-Style Room Seating. My Example: Theater-style room seating is usually used for the gathering of larger groups or people.

Christine Delva
Professor Duchamp
October 26, 2015

CHAPTER FOUR
Summary
Chapter four is based on the major roles of division in food and beverage department. There are many operations that help the business goes smooth such as: catering, room service, restaurant, and etc by this will build a strong foundation. In the industry a successful business with a great operation must a great leader to lead the employees holding up their end of responsibilities. Paying attention and keeping tabs on every sales in business help know every gross revenue in your business. Guest satisfaction are main focus point and mandatory element in successful business.
Key Words
1)Banquet – My baby shower was held at Remsen Banquet Hall with full services caters.
2)Banquet Event Order- Sequencing and organizing are all important details to have successful banquet event order which will consist of menus, people attending, decorations and staffs.
3)Brigade- The brigade is a team of cooks working at different preparing different food.
4). Capture Rate- Sonia sweet sixteen at Crystal Manor are expecting maximum of 150 guests.
5)Catering- The Chen family had their daughter’s wedding catered by an excellent business that specialized in Asian cuisine.
6)Catering Coordinator- Majority engaged couples will hired catering coordinator to handle everything to have less stress and focus on the wedding.
7)Catering Event Order- They organized blueprints to show how the menus, seat arrangements and decorators should be done.
8)Catering Service Manager- The chief or boss of catering service department for any hotels or restaurants.
9)Chef Tournant- Is the chef reliever when the cook need a break from time to time.
10)Chief Steward- The chief steward is responsible for the back of the house to be spotless and control all inventories.
11)Classroom Style Seating- In business meeting or conventions chairs placement in classroom style seating facing podium.
12).Contribution Margin- The profitability of products from the selling price and food cost to provide the concept of contribution margin.
13)Dinner Style Seating-Private Catering events usually use dinner style seating for the parties to know number invitations to send out.
14)Director of Catering- the general manager for specially events making sure everything is order.
15)Executive Chef – We sat at the Sushi Restaurant and watch the executive operating and have control of the kitchen. Yet still manage to prepare few dishes for family and me.
16)Food Cost Percentage- The price of food and the time to make the food is how we get daily sale percentage.
17)Food Sale Percentage- Farmers laver cost and producing the world necessity to make a living helps determine the food sale percentage.
18)Horseshoes Style room Seating- Talent shows or performance would use horse style room seating for the audience to grasp a great view of everything.
19)Kitchen Manager- The kitchen Manager dictates how each operations within the kitchen should be run and what is expected from staff members.
20)Labor Cost Percentage- It’s the calibration of revenue and sales from the time consuming of work done which deliberate the right of labor cost percentage.
21)Perpetual Inventories- A system business use to help maintain control and structuring of the cost of food.
22)Pilfering- Travelers from all over the world staying in hotels have tendency to take lotions, towels or robes when they leaving the hotel to go back country.
23)Pour/Cost Percentage – The pour/ cost is base on the inventory of drinks whether in the bar or restaurant to determine the sale done for each month will give you the percentage made.
24)Responsible Alcoholic Beverage Service- Bartenders are in charge of to check for idenfication before service alcohol so he/ she won’t be responsible for anything that happen in place of business.
25)Restaurant Manager-the general manager of all the division and operation in the restaurant are followed by specific rules and regulations.
26)Room Service- People usually order room service because they don’t want to leave the room and they are requesting something.
27)Shopper- Manager Tonya is trying improve her business, she hires a shopper to view what changes can be made.
28)Sous Chef- When the head chef is on vacation, then sous chef become temporary head of kitchen until the head chef returns.
29)Station Chef-The station chef is responsible for particular specialty dish at the restaurant.
30)Theater Style Room Seating- Beautiful orchestra band perform above a theater style room seating.

This chapter focus on the different departments division that operate and are involved in the food and beverage operation. Some of the most common business that are involved in the food and beverage operation are the hotel, catering, restaurants, room service and bars. For each business to be successful in the industry of food and beverage division its must have a good leader that that know how to train and lead all the staff that work under his/her umbrella with their specific responsibilities in the food and beverage division.

Key Words and Concepts:

Banquet – Example: I and my family enjoy to go to the Chinese buffet and enjoy the banquet with different kind of food.

Banquet event order (BEO) – Example: Is also known as the catering event order that provide the hotel personnel with essential information of successful event.

Brigade – Example: Is a chef that specialize in one task on the kitchen. Like sauce, fish, soup, cold lander and ect….

Capture rate – Example: Is an estimation of the numbers of expected guests that will visit the restaurant for any meal.

Catering – Example: Is the division in the hotel department that is responsible of the food and beverage.

Catering Coordinator – Example: Is responsible of planning a successful event in the hotel catering.

Catering event order (CEO) – Example: Is also known as the banquet event order that provide the hotel personnel with essential information of successful event.

Catering service manager (CSM) – Example: Is the head of the catering service department.

Chef tournant – Example: Anahis is my chef tournant in the restaurant that is capable of dismiss any chef from his station and take over his/her duties.

Chief steward – Example: The Chief steward is making sure that all the rooms in the hotel are cleaned.

Classroom-style seating – Example: The conference room look like a classroom with small tables and chairs for customers to take notes.

Contribution margin – Example: Is a system that help calculate the cost of a preparing item and its selling price.

Dinner-style room seating – Example: The reunion meeting was performed in a small room hotel with a capacity of 10 peoples that is arrange with a round table at the center in the room.

Director of catering (DOC) – Example: Yaniris is the director of catering at the Unique Bar’s Restaurant that is responsible for the success of each catering meeting and the customers’ needs with food and beverage that will generate a reasonable profit to my restaurant.

Director of food and beverage – Example: My friend Jazmin is the director of food and beverage department at the Unique Bar’s Restaurant and is responsible for the operation of the kitchen bar.

Executive chef – Example: One day, I will become the executive chef of my own restaurant.

Food cost percentage – Example: The food cost percentage is a formula that allow to calculate the total cost of food sold by the total of food sales.

Food sales percentage – Example: Is the percentage of the amount of convenience foods purchased versus those made from scratch.

Horseshoe-style room seating – Example: When I was at the conference in Miami, the room meeting was arrange for us to interact between each other. It has a black, flip chart, overhead project that were used for the workshop and training section.

Kitchen manager – Example: If I have an issue with the food, I will like to talk to the kitchen manager.

Labor cost percentage – Example – Is a formula to calculate the labor cost of an employee. (Labor cost/net sales *100 = )

Perpetual inventory – Example: The perpetual inventory software will always calculate the food cost per outlet and calculate the profit of the menu costing.

Pilferage – Example: Mike was fire from Bon Bars because he was stealing or tamper with liquor from the business.

Pour/cost percentage – Example: Is a system that calculate the efficiency of a business and help reduced labor costs.

Responsible alcoholic beverage service – Example: All my bar employees need to be train in Responsible alcoholic beverage service to prevent any type of liability that will damage the business with drunk and potential minor’s customers.

Restaurant manager – Example: The restaurant manager was calming an angry customers that was not satisfy with the waitress behavior at the table.

Room Service – Example: All the guests expected excellent services during their stay at the hotel.

Shopper – Example: Destiny and Bruce are professionals undercover to will go to the bars and watch the operation and the employee behavior in the business.

Sous Chef – Example: The sous chef is interviewing a potential hostess.

Station Chef – Example: The fish chef is cutting the fishes in his station.

Theater-Style room seating – Example: The room in the hotel was arrange like a theater with a big image projections and center room chairs.

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 – My 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.

This week I read an article about Crystal Cruises written by Shivani Vora. In this article, the author talks about this luxury cruise line that currently sails to all seven continents and that  recently announced an aggressive expansion plan for its 25th anniversary this year.  The cruise line Chief Executive Ms. Edie Rodriguez, gives details in an interview with the author, about the reasons behind their idea to expand and how it was motivated by their guests. She stated that about 50 percent are repeat customer and they were pushing them for more vacation options in their style.

Chief Executive Rodriguez is commissioning three new crafts to be built for Crystal’s core fleet. In this ambitious plan there will be a yacht making its first appearance this coming December with a trip around the Seychelles Islands. The yacht will have a submarine that will hold three people including the captain and that will go as deep as 1,000 feet underneath the water. For this adventure, they are going to offer 30 minutes excursions inside of it, and they are promising their customers a view of sea life in a way that they have never seen before. In 2017 they will launch a non water adventure, A Boeing 787 Dreamliner for 60 guests that will fly on 28- day itineraries to remote destinations around the world and a plane for 14 days trips.

Ms. Rodriguez also mentioned that ships are spending more nights docked in ports to give travelers more time to explore and the addition of fewer midnight buffets with more healthier options.

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.

Christine Delva

HMGT 1101

10/12/15

Chapter 3

Summary

  In this chapter Hotels have many goals throughout their business but the main importance is satisfaction of both the guest and staff employees. Hotels are consists with many things such as corridors, parking lot and main lobby entrance, where you would be in the main floor also known as the central reservation office. Hotels are run by general manager and other committees. The hotel has different department such as room division, food and beverage and human resource.  Each department plays a role but the important part to me is Housekeeping. They have certain software to help their business grow because the hotel reflects on the general manager. Also the hotels must strategies and back-up plan to efficient business.  Hotel business interests are not only making profit. They want the visitor to their first priority is providing safety is important. By this the visitor will compare their stay from hotels. Also spread the good experience to other as well.

Key Words

1). Average Daily Rate- If a hotel has average daily revenue over a calendar of 26,000 and has 260 rooms available per day. The ADR would be $100.

2). Calling Accounting System-  In the Marriot hotel, every guest that stay at hotel has no limit on the amount calls, but thanks to CAS system in the company will be able to track and calculate the phone charge per room.

3). Central Reservation Service- The CRS connects the inventory and website so you as GM/ Front Desk Manager can promote or push  a range of room, rate and promotion to guest who book online.

4). Revenue Center- All hotels generate their revenue through sales of good and services such as room department and food /beverage department.

5). Catastrophe Plan- Airbnb on water or near water must have inflatable safety boats in case there is massive flood to ensure the guest safety.

6). Uniform Staff- Uniform company requirements for employees involved in service and delivery functions with customers and business partners

7). Executive Committee- In a business, executive committee empowered to exercise the authority of the full board when the board is not in session.  They have to act quickly in an emergency whenever and decisive action is called for.

8). Employee Right to Know- Every business all employees has the right to know the chemicals to which they may be exposed in their daily living.

9).Cost Center- The cost center contacted the administrator of the business to go over accounting standards useage only at normal day to day basis.

10).Room Division- Rooms Division is the department within a hotel that includes that has many branches under it as well where they work as one to control the function sales.

11). OSHA-Compliance with using OSHA in your business along with implementing and well-designed safety program can save money.

12). Productivity-A company can increase its own business productivity by making suitable changes in its business process and policies in order to improve the weak areas and capitalize on strengths for betterment.

13). Concierge-Concierge help the customers needs by providing services  such as: reservations for patrons, obtain tickets for events,  provide information about local features( shopping and recreational destinations).

14). Yield Management- Traveling to Haiti is amazing vacation. I usually take my vacation in August but I purchase my tickets in January to get better price rate rather buying tickets one month before departure date.

15). Room Rates- During peak season room rates increase rapidly compare to other months. In New York peak season are September to November.

16). Application Service Provider- It is a third party that provide service and solution to customers. Example = Vertical Market provide support to specific induitstry such as healthcare.

17). Central Reservation Office – The CRO handles calls from the from 1800  numbers which aallows the encounter sales of the room.

18). City Legder –  The city ledger in located at back of the house where the account department keep track who registered

19). Room Occupancy Percentage- The ROP provides an average number when divide the rooms booked to room not booked.

20). Confirmed Reservation- Lindsay’s Bridal Shower guest list confirmed reservation email was received time to make the day memorable.

21).Daily Report- All the room division departments managers are required yo provided daily report of daily agendas.

22). Global Distribution System – My family and I booked our hotel reservation through the GDS to make sure we were luxuruy suite.

23). Guaranteed Reservations -Airport usually advice their passenger to confirm their flight 24 hours before departure date so you can be guaranteed a seat.

24). Night Auditor- If you want to become a night auditor, you must have a minimum one year of hotel front desk supervisory experience, experience handling cash, accounting procedures, and general administrative tasks.

25). Property Management System- The PMS is the head system that hotel operations used to gather information from all minor system generating in the hotel business.

26). Revenue Management-  Many hotels have different prices for different seasons that’s because they want to reach the peak point between number of guest and amount money willing to spend.

27). Revenue Per Available Room- RevPAR is an important metric because it provides a quick, simple overview of a company’s top-line operations in a form that incorporates both room rates and occupancy. 

Zhigang  Gao [Gina]                                        HMGT 1101  Chapter 3 summary

10/13/15                                                           Prof. Damien Duchamp

Chapter three focuses on discuss the functions and departments of a hotel.

1. Application service provider (ASP) def: is a company that offers individuals or enterprises access over the Internet to applications and related services that would otherwise have to be located in their own personal or enterprise computers. My example: Use application service provider’s system, help hotel save time and money. For this reason, the HR and Financial department no need exit in future.
2. Average daily rate- My example: The average daily rate used to increase when it is travel peak season.
3. Call accounting systems- My example: Hospitality is probably the biggest industry to utilize call accounting systems
4. Catastrophe plans- My example: the catastrophe plans include buy insurance to reduce the risk.
5. Central reservation office (CRO) – My example: Call central reservation office to book a room.
6. Central reservation system (CRS)- this system only used by the hotel and resort industry to take care customer’s order or booking.
7. City ledger – thecity ledger is the collection of accounts belonging to non-registered guests. This is distinct from the transient ledger (or front-office ledger, or guest ledger), which is the collection of accounts receivable for guests who are currently registered.
8. Concierge – My example: the concierge often had a small apartment on the ground floor.
9. Confirmed reservations-My example: if the hotel holding my credit payment, means my reservations confirmed.
10. Cost centers- Cost centers include research and development, marketing, help desks and customer service and contact centers.
11. Daily report- My example: shows how many rooms sold out today.
12. Employee right to know- My example: as an employee they have right to know their salary and profits.
13. Executive committee- executive’s duties is to make decisions and ensures that these decisions are carried out
14. Global distribution systems (GDS)-booking.com through these systems get information, in stance, how many rooms available.
15. Guaranteed reservations- My example: I book a room. But somehow the certain room not available, they give me double price back.
16. Night auditor- is a person who works at night at the reception of a hotel. They typically handle both the duties of the front desk agentand some of the duties of the accounting department. This is necessitated by the fact that most fiscal days close at or around midnight, and the normal workday of the employees in the accounting department does not extend to cover this time of day.
17. Occupational safety and health administration (OSHA) – which sets and enforces protective workplace safety and health standards.
18. Productivity- is an average measure of the efficiency of production. It can be expressed as the ratio of output to inputs used in the production process, i.e. output per unit of input. When all outputs and inputs are included in the productivity measure it is called total productivity. Outputs and inputs are defined in the total productivity measure as their economic values.
19. Property management systems (PMS) – also known as PMS or Hotel Operating System (Hotel OS), under business terms may be used in real estate of mind, manufacturing, logistics, intellectual property, government or hospitality accommodation management. They are computerized systems that facilitate the management of properties, personal property, and equipment, including maintenance, legalities and personnel all through a single piece of software essayer.
20. Revenue management- is the application of disciplined analytics that predict consumer behavior at the micro-market level and optimize product availability and price to maximize revenue growth.
21. Revenue centers- A revenue centre is one of the five divisions of a responsibility centre – Cost centre, Revenue centre, profit centre, contribution centre and investment centre.  Cost centers, like revenue centers, only monitor costs, thereby making them a counterpart to the revenue centre.Revenue centers only measure the output (in fiscal standings) and are therefore marketing establishments which are exempt from profit generation and accountability thereof.
22. Revenue per available room (REV PAR) – RevPAR, or revenue per available room, is a performance metric in the hotel industry that is calculated by dividing a hotel’s total guestroom revenue by the room count and the number of days in the period being measured.
23. Room occupancy percentage (ROP) – My example: let’s assume that Company XYZ owns an apartment building that has 300 units. Of those units, 275 are rented out. Using this information and the formula above, we can calculate that Company XYZ’s occupancy rate is: Occupancy Rate = 275/300 = 91.67%
24. Room rates- the rate charged daily for ahotel room, the room rates change every season.
25. Room’s division- The Rooms Division consists of two sub-departments, Housekeeping and Front Office. Housekeeping used to be considered “just a cleaning department”, but hotel surveys have shown again and again that cleanliness is at the top of the list of requirements of hotel guests.
26. Uniformed staff- some internship employees are uniformed staff. They got lower salary than other same level worker.
27. Yield management-  is a variable pricing strategy, based on understanding, anticipating and influencing consumer behavior in order to maximize revenue or profits from a fixed, perishable resource (such as airline seats or hotel room reservations or advertising inventory).

Chapter 3 focuses on the roles and responsibilities of the various employees from an entry level to manager roles.It breaks down the departments involved in running a successful hotel. It also dives into how to manage room occupancy and calculating revenues. It talks about the various components of housekeeping as well as offering suggestions as to getting a headstart for pursuing the manager positions while still in college.

Key Terms

1. Application Service Provide (ASP) – Delivers a complete booking system tied to the hotel’s inventory in real time via the Internet. Ex.Hotels.com; expedia.com; trivago.com
2. Average Daily Rate– One of the key operating ratios that indicates the level of a hotel’s performance. The ADR is calculated by dividing the dollar sales by the number of rooms rented. Ex. Sales/ # of rooms rented
3. Call Accounting Systems (CAS) – A system that tracks guest room phone charges Ex. Computer database chart.
4. Catastrophe Plans– A plan to maximize guest and property safety in the event of a disaster. Ex. Earthquake, Tsunami, Katy Perry’s “Firework”
5. Central Reservation Office (CRO) – The central office of a lodging company, where reservations are processed. Ex. Front Desk
6. Central Reservation System (CRS) – A reservation system that is commonly used in large franchises to connect their reservation systems with one another; enables guests to call one phone number to reserve a room at any of the chain properties.
7. City Ledger– A client whose company has established credit with a particular hotel. Charges are posted to the city ledger and accounts are sent once or twice monthly. Ex. Is the accounting of a company that has established credit with the hotel.
8. Concierge – A uniformed employee of a hotel who works at a desk in the lobby or on special concierge floors and answers questions, solves problems,etc. Ex.A private secretary for hotel guests.
9. Confirmed Reservations – A reservation made by a guest that is confirmed by the hotel for the dates they plan to stay. Ex. Confirmation number after booking room
10. Cost Centers – Centers that cost money to operate and do not bring in revenue. Ex. Human Resource Department.
11. Daily Report – A report prepared each day to provide essential performance information for a particular property to its management. Ex. Sales goals for the day
12. Employee Right to Know – Per U.S. Senate Bill 198, information about chemicals must be made available to all employees. Ex. Harsh chemicals that can harm us.
13. Executive Committee – A committee of hotel executives from each of the major departments within the hotel. Ex.The GM, Marketing director, HR director, accounting director, etc.
14. Global Distribution Systems (GDS) – A system that can distribute the product or service globally. Ex. Reserving a Hilton in the US or reserving one in Europe.
15. Guaranteed Reservations – If rooms are available on guest demand, the hotel guarantees the guest rooms on those days. Ex. Walk-ins book a room if its available.
16. Night Auditor – The individual who verifies and balances the guest’s accounts. Ex. A cashier counting out their register.
17. Occupational Safety and Health Administration (OSHA) – Purpose is to ensure safe and healthful working conditions, set mandatory job safety and health standards, conduct compliance inspections, and issue citations for noncompliance. Ex. Child labor laws
18. Productivity – The amount of product, goods or services produced by employees. Ex.A good nights sleep usually leads to higher productivity.
19. Property Management Systems (PMS) – A computerized system that integrates all systems used by a lodging property, such as reservations, front desk, housekeeping, food and beverage control, and accounting. Ex. Electronic bookkeeping
20. Revenue Management – The management of revenue. Ex. Understanding what the money coming in means, adjust for busy/down times.
21. Revenue Centers – Centers that produce revenue. 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) – Total rooms revenue for period divided by total rooms available during period.
23. Room Occupancy Percentage (ROP) –The number of rooms occupied divided by rooms available; a key operating ratio for hotels.
24. Room Rates – The various rates charged for a hotel room. Ex. $40 per night
25. Rooms Division – The department that makes up the rooms division.
26. Uniformed Staff – Front of house staff. Ex. Door attendant, the bell person, housekeeping and security.
27. Yield Management – The practice of analyzing past reservation patterns, room rates, cancellations, and no-shows in an attempt to maximize profits and occupancy rates and to set the most competitive room rates. Ex. Educated guessing as to how many rooms will be filled regardless of how many are reserved.