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00_fm_4612.qxp 1/11/06 3:25 PM Page i HOTEL FRONT OFFICE MANAGEMENT 00_fm_4612.qxp 1/11/06 3:25 PM Page iv 00_fm_4612.qxp 1/11/06 3:25 PM Page i HOTEL FRONT OFFICE MANAGEMENT 00_fm_4612.qxp 1/11/06 3:25 PM Page ii 00_fm_4612.qxp 1/11/06 3:25 PM Page iii 00_fm_4612.qxp 1/11/06 3:25 PM Page iv 00_fm_4612.qxp 1/11/06 3:25 PM Page v Contents Preface vii Acknowledgments xi CHAPTER 1 Introduction to Hotel Management 1 CHAPTER 2 Hotel Organization and the Front Office Manager 37 CHAPTER 3 Effective Interdepartmental Communications 73 CHAPTER 4 Property Management Systems 95 CHAPTER 5 Systemwide Reservations 129 CHAPTER 6 Revenue Management 165 CHAPTER 7 Guest Registration 184 CHAPTER 8 Managing the Financials 222 CHAPTER 9 Guest Checkout 237 CHAPTER 10 Preparation and Review of the Night Audit 261 CHAPTER 11 Managing Hospitality 308 CHAPTER 12 Training for Hospitality 336 CHAPTER 13 Promoting In-house Sales 362 CHAPTER 14 Security 381 CHAPTER 15 Executive Housekeeping 411 Glossary 437 Index 453 00_fm_4612.qxp 1/11/06 3:25 PM Page vi 00_fm_4612.qxp 1/11/06 3:25 PM Page vii Preface he fourth edition of Hotel Front Office Management remains the standard in addressing the demands of the hotel industry in the new T millennium. Educators who are preparing professionals for roles as front office managers and general managers in hotels are required to meet the challenges of operations, technology, training, empowerment, and interna- tional applications. This edition continues to encourage students to take an active part in applying these concepts to the exciting world of hotel opera- tions. A brand-new chapter on housekeeping reviews the role of the executive housekeeper, a member of the management team. The emphasis on management continues to be central to this fourth edition. The structure of the text will assist students as they prepare for positions as entry-level managers. The logical presentation of chapters in order of opera- tions—an overview of lodging hospitality, a tour of the front office, a review of the guest cycle, and an analysis of guest services—will give students insight into the front office manager’s role in the hotel. Students will also benefit from the discussions of other departmental managers, including security and house- keeping, and how they relate to the front office. Specific changes to the fourth edition include the following: Chapter 1, “Introduction to Hotel Management,” is updated with respect to the founders of hotel industry, including the late Kemmons Wilson, the founder of Holiday Inn; Ray Shultz, founder of Hampton Inn; nota- tion of the progress of the limited-service hotel chain Hampton Inn; and the impact of the events of September 11, 2001. A section on branding is included to help students classify the multitude of names of hotel properties in the marketplace. Chapter 2, “Hotel Organization and the Front Office Manager,” includes a detailed procedure for preparing a front office schedule of employees. 00_fm_4612.qxp 1/11/06 3:25 PM Page viii viii PREFACE Chapter 3, “Effective Interdepartmental Communications.” contains a new mini com- munication situation for students to analyze. Chapter 4, “Property Management Systems,” has expanded sections on choosing soft- ware and hardware. The term yield management is changed to revenue manage- ment. Intranet applications are included. Chapter 5, “Systemwide Reservations” (formerly “Reservations”), provides updates on the central reservations systems of Choice Hotels International, Intercontinen- tal Hotels Group (formerly Six Continents Hotels), and Carlson Hospitality World- wide. New discussion addresses global distribution systems (GDS) and the role of the Internet, including third-party websites. Chapter 6, “Revenue Management” (formerly “Yield Management”), presents new and pertinent examples of software applications. A new member of the front office staff, the revenue manager, is reviewed via a job listing. New buzzwords are defined: channel management of guest room sales by central reservation systems, GDS, third-party reservation system, toll-free phone number, travel agent, and so on are explored. Chapter 7, “Guest Registration,” has a new section on the latest self-check-in tech- nology. Chapter 8, “Managing the Financials” (formerly “Processing Guest Charge Pay- ments”), is consistent with the third edition, except for the title change. Chapter 10, “Preparation and Review of the Night Audit” (formerly “Night Audit”), includes sections on how to read the flash report and the night audit. Financial errors from the third edition are corrected. Chapter 11, “Managing Hospitality,” provides new insight into customer relationship management by integrating technology into delivering hospitality. Chapter 14, “Security,” describes changes since 9/11 to room key security and intro- duces biometrics, the measurement of voice, handprint, and facial characteristics. Each chapter is presented in smaller segments for greater ease in comprehension. The new chapter on housekeeping focuses on the management of the housekeeping department. This chapter features the role of the executive housekeeper as a manager and discusses the many management concepts required to organize this department, includ- ing assignment/workload; training; room inspection; housekeepers report; communica- tion (English as a second language); inventory control (linens, guest supplies, cleaning supplies, furniture); cleaning control; in-house versus outsourced laundry; the Occupa- tional Safety Health Act (OSHA); material safety data sheets; going green; and profes- sional associations. The fourth edition maintains high pedagogical standards. Features include Opening Dilemmas, which present a mini case study problem to solve with the help of subsequent chapter presentation: a Solution to the Opening Dilemma is included at the end of each chapter. Hospitality Profiles present commentaries from hotel front office managers, gen- 00_fm_4612.qxp 1/11/06 3:25 PM Page ix PREFACE ix eral managers, and other department managers in hotels, adding an element of human relations to the text. International Highlights are articles of interest that accentuate the international workforce and international career opportunities for graduates and provide a forum for professors and students to discuss this aspect of hotel management. Frontline Realities present unexpected yet very realistic situations that students must develop a method for handling. Case Studies in each chapter allow students to apply theory. A Glossary defines terms introduced in each chapter (these appear in boldface in the text). A completely revised instructor’s manual is available for the fourth edition. Will you like the fourth edition of Hotel Front Office Management? I think you will. I would appreciate your comments ([email protected]). My very best to the future professionals of the hotel industry. 00_fm_4612.qxp 1/11/06 3:25 PM Page x 00_fm_4612.qxp 1/11/06 3:25 PM Page xi 00_fm_4612.qxp 1/11/06 3:25 PM Page xii 01_4612.qxp 1/11/06 3:27 PM Page 1 CHAPTER 1 Introduction to Hotel Management OPENING DILEMMA CHAPTER FOCUS POINTS ■ Historical overview of the A hospitality career fair is scheduled at the end of the week at your hotel industry ■ college or university. Your recent review of this chapter has enticed you Hotel classification system to explore the career opportunities in limited-service and full-service ■ Trends that foster growth and employment in the hotels. Your instructor has asked you to prepare a list of possible hotel industry ■ Career development questions to ask the recruiter. What would you include in that list? The mere mention of the word hotel conjures up exciting images: a busy lobby filled with international dignitaries, celebrities, community leaders, attendees of conventions and large receptions, businesspersons, and family vacationers. The excitement you feel in a hotel lobby is something you will have forever in your career. Savor it and enjoy it. It is the beginning of understanding the con- cept of providing hospitality to guests. As you begin to grasp the principles of a well-operated hotel, you will discover the important role the front office plays in keeping this excitement intact. The front office is the nerve center of a hotel property. Communications and accounting are two of the most important functions of a front desk operation. Effective communications—with guests, employees, and other departments of the hotel—are paramount in projecting a hospitable image. Answering guest inquiries about hotel services and other guests, marketing and sales department requests for information on guest room availability, and housekeeping depart- ment inquiries concerning guest reservations are but a few of the routine tasks 01_4612.qxp 1/11/06 3:27 PM Page 2 2 CHAPTER 1 ■ INTRODUCTION TO HOTEL MANAGEMENT performed almost constantly by a hotel front desk in its role as communications hub. Accounting procedures involving charges to registered and nonregistered hotel guest accounts are also important in the hospitality field. Itemized charges are necessary to show a breakdown of charges if a guest questions a bill. Services for which fees are charged are available 24 hours a day in a hotel property. Moreover, because guests may want to settle their accounts at any time of the day, accounts must be current and accurate at all times. Keeping this data organized is a top priority of good front office management. Founders of the Hotel Industry A history of the founders of the hotel industry provides an opportunity to reflect on our heritage. Learning about the founding giants such as Statler, Hilton, Marriott, Wilson, and Schultz, to name a few, allows a student of the industry to discover the interesting lin- eage of hoteliers. Studying the efforts of the innovators who carved out the modern hotel industry may help future professionals with their own career planning. E. M. Statler To begin to understand the history of the modern hotel industry, let’s look at its early entrepreneurs, who were motivated by wealth and fame on a grand scale.1 Ellsworth M.