Accommodation and Front Office Foundation –I BHM-103T UNIT: 1 ACCOMMODATION SECTOR Structure 1.1 Introduction 1.2 Objectives 1.3 Organisation Structure of Hotel 1.4 Classification of Hotels 1.4.1 Star Classification 1.4.2 Classification on the basis of location of hotel 1.4.3 Classification on the basis of clientele 1.4.4 Classification on the basis of length of guest stay 1.4.5 Classification on the basis of size 1.4.6 Classification on the basis of plan 1.4.7 Classification on the basis of ownership & affiliation 1.4.8. Other types of hotels 1.5 Leading Hotel Chains 1.5.1 Indian Hotel Chain 1.5.2 Foreign Hotel Chains 1.7 Summary 1.8 Key Terms 1.9 Bibliography 1.10 Terminal Questions 1.1 Introduction The hospitality industry is part of a larger enterprise known as the travel and tourism industry. The travel and tourism industry is vast group of businesses with one goal in common: providing necessary or desired products and services to travelers. Hospitality can be termed as a deliberate, planned and sustained effort to establish and maintain mutual understanding between an organization and the public i.e., the business of making and keeping friends, and promoting an atmosphere of better understanding. As per the Oxford Dictionary Hospitality is defined as: ‗Reception and entertainment of guest, visitors or strangers with liberality and goodwill.‗ The word hospitality is derived from the Latin word ‗Hospitalitias‘. The travel and tourism industry can be segregated into five main parts and further it shows the various sub components of each part. The hospitality industry consist of lodging and food and beverage operations – plus institutional food and beverage services which do not cater to the travelling public. Lodging operations stand apart from other travel and tourism businesses since they offer overnight accommodations to their guests. Many lodging properties provide food and beverage service, recreational activities and more. For many, the hospitality industry holds a certain glamour and sophistication. This is partly due to the image most hotels choose, refine, and project to the public. Much of this image is created through architecture and design. Yet a building is really only bricks, mortar, steel, glass and furnishing. The property‗s architecture and style may be important in setting the theme, but other factors are also important in differentiating Uttarakhand Open University 1 Accommodation and Front Office Foundation –I BHM-103T one hotel from another. These factors can include the property location, variety and quality of food service, special features and amenities, and perhaps most important, a staff that puts all of this together with service to create the overall image and competitive position. Front office personnel are literally on the front line in creating that image. Reservations agents are often the first to have contact with the guest, while front desk agents, Concierges, bell attendants, and door attendants are among the first needed to satisfy guest needs make front office work interesting and rewarding. And since no two guest, two hotels, or – for that matter – two days are even the same, front office work can‗t help but be exciting and challenging. This chapter will outline some basics about the hospitality industry, as well as show how hotels can be classified by size, market, level of service, and ownership. 1.2 Objectives After reading this chapter you will be able to understand: Origin and Growth of Hospitality Industry Organisation Structure of Hotel Classification of Hotels . Star Classification . Classification on the basis of location of hotel . Classification on the basis of clientele . Classification on the basis of length of guest stay . Classification on the basis of size . Classification on the basis of plan . Classification on the basis of ownership & affiliation . Other types of hotels Leading Hotel Chains . Indian Hotel Chain . Foreign Hotel Chains 1.3 Organisation Structure of Hotel The people authorized by a hotel‗s owner to represent his or her interests are called hotel management. In small properties, hotel management may be represented by one person. Management guides the operation of the hotel and regularly reports the general state of the hotel‗s financial health to its owner. The major duties of a hotel management team include planning, organizing, coordinating, staffing, directing, controlling, and evaluating hotel activities and /or personnel. Management performs its duties to reach specific objectives and goals. These duties involve the activities of various hotel division and departments. The top executive of a property is usually called the managing director, general manger or innkeeper. For discussion purpose, the top executive is referred to as the general manager in this text. The general manager of an independent hotel manager supervises all hotel divisions, either through a resident or assistant manger, or through division heads. Chain organizations usually have a district, area, or regional executive supervising the general managers located at the properties within his or her jurisdiction. Uttarakhand Open University 2 Accommodation and Front Office Foundation –I BHM-103T An organization requires a formal structure to carry out its mission and goals. A common way to represent that structure is the organization chart. As organization chart is a schematic representation of the relationship between positions within an organization. It shows where each position fits in the overall organization, as well as where division of responsibility and lines of authority lie. Solid lines on the chart indicate direct-line accountability. Dotted lines indicate relationships that involve a high degree of cooperation and communication, but not a direct reporting relationship. An organization chart should be flexible. It should be reviewed and revised yearly or more often if business conditions significantly change. Employee responsibilities may change as individuals assume more duties, depending on their qualifications and strengths. Some organizations list each employee‗s name on the chart along with his or her title. A copy of the property‗s organization chart should be included in the employee handbook distributed to all employees. Figure: 1.1 Organizational Chart of Chain Hotel Figure: 1.2 Organizational Chart of Five-Star Hotel with 500 Rooms Uttarakhand Open University 3 Accommodation and Front Office Foundation –I BHM-103T Figure: 1.3 Organization Chart of Three – Star Hotel with 150 Rooms A full-service property that offers both lodging and food and beverage service will probably have an extensive organizational structure. Figure 1.1 shows an organization chart outlining the management-level positions in a large full-service property. All but two of the lines on the chart are solid, indicating reporting relationships. The dotted lines connecting the sales director to the catering director and the reservations manager represent the close working relationship needed among these positions. Some hotels may lease food and beverage outlets to another company. This means that the food and beverage operations and guestroom operations are separately owned and managed. When another company operates food and beverage, it is essential the both companies communicate closely, as their goals may not be shared at all times. Figure 1.2 shows a typical organization chart for a hotel withleased food and beverage operations. In this example, informal consulting relations exist between the managers and owners of the two businesses. The restaurant manger and the hotel‗s sales department manager must also work closely together. These relationships are indicated by dotted lines. Figure 1.3 present a possible organizational structure for a hotel without a restaurant. These organization charts illustrate some of the many organizational variations that are possible among lodging properties. Uttarakhand Open University 4 Accommodation and Front Office Foundation –I BHM-103T CHECK YOUR PROGRESS-I Q. 1 What do you mean by organisation chart? _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ ___________________________________________________________________ Q. 2 Draw the organisation chart of a five star hotel. _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ ___________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________