Hospitality and Tourism Management Program

Year 1 Hospitality and Tourism Management Program

Hospitality and Tourism Management Program i Disclaimer This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought.

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ii Hospitality and Tourism Management Program

Front_year1.indd 2 5/1/2013 10:35:42 AM Acknowledgements Subject Matter Experts Subject Matter Experts EI Educational Focus Group Hospitality and Tourism Industry

Darron Kirkley Britt Mathwich, CHA Hospitality and Tourism Management Teacher President North Central High School The Lodge Resort and Spa Cloudcroft, NM Kershaw, SC Frankie F. Miller, Ph.D. Douglas OFlaherty Hospitality, Culinary, Tourism Educational Consultant Director of Operations Retired Dean, Culinary Institute of Charleston, SC South Carolina Hospitality Association Columbia, SC Isaac W. Lewis, CHA General Manager Jillian Ely Comfort Suites® Hospitality and Tourism Consultant Little Rock, AR Jill A. Staples, MS CHA, CHE, CHS, Lisa Perras President Business and Hospitality Instructor North Star Hospitality, LLC Mountain View Academy White Mountains Regional High School Jordan Langlois, CHA Whitefield, NH Vice-President, Brand Management Vantage Hospitality Group, Inc. Patricia LeCompte Marketing/Hotel, Resort, & Tourism Management Marjorie O’Connor Instructor General Manager Certification, Monroe Career & Technical Institute Best Western International Bartonsville, PA General Manager BEST WESTERN PLUS Chelmsford Inn and Massachusetts Dept of Education, Hospitality Technical Assistance Management (9-14) License Hotel/Lodging Instructor Courtyard by Marriott® – Orlando Downtown Greater Lowell Technical High School Cheryl Seckman, General Manager Linda Korbel, CHA Jorge Vargas, Operations Manager Owner and Lead Designer/Facilitator Janett González, Housekeeping Supervisor Korbel Consulting

Carlos Lopez, Front Desk Representative Nick Trahair, CLM Courtney Cruz, Front Desk Representative General Manager Debra Rangoo, Guestroom Attendant AmericInn Traverse City, MI Maria Walker, Chef Robert Spitler, Facilities Maintenance Rocio Lopez, The Bistro EI Technical Team Dawn Nason, Writer Rosemary Albert, The Bistro Kathleen McDermott, Editor Zenaida Panora, Public Space Cleaner Liz Watkins, Graphic Design

Hospitality and Tourism Management Program iii Welcome to the NEW Hospitality and Tourism Management Program Congratulations on taking the first step in building a career in the hospitality and tourism industry. The U.S. lodging industry currently employs about 1.8 million people, while the American food service industry has about 13 million people working in restaurants. These two segments of the hospitality and tourism industry alone account for over 9 percent of the U.S. workforce. When you consider how vast the industry is, the potential career choices are huge. The Hospitality and Tourism Management Program has been designed to help you develop, and practice performing, the knowledge, skills, and tasks required for success as an employee in the hospitality and tourism industry. All you need to do is be willing to learn and put in the effort to achieve. If you are ambitious and want to have a future in this dynamic industry, you have made the right choice to seek career possibilities available to you in hospitality and tourism by enrolling in this exciting career development course of study.

iv Hospitality and Tourism Management Program Pineapple Fun Fact:

Throughout this textbook, a Pineapple Fun Fact box will highlight a piece of hospitality and tourism’s history to help you learn the rich heritage of the industry in which you are considering building a career. Pineapple Fun Fact Why the Pineapple? The pineapple originated in South America and was “discovered” by Columbus on his second voyage to the new world. He called it a piña because it resembled a pinecone. In 17th century America, sea captains would place a pineapple outside their front door as a symbol of a safe return. In the 18th and 19th centuries, pineapples became popular as a symbol of welcome. The image of the pineapple began being used to decorate furniture, table linens, and silverware, all for the purpose of making guests feel welcome when stopping for the night at an inn or hotel. Today the pineapple is the hospitality and tourism industry’s universal symbol of welcome to guests worldwide.

ADA Box

Throughout this textbook, an ADA box will highlight how federal requirements determine what the hospitality and tourism industry must do to meet the needs of guests with disabilities. ADA What is the purpose of the Americans with Disabilities Act (ADA)? The ADA is a Federal civil rights law that prohibits discrimination against people with disabilities in everyday activities. These requirements went into effect on January 26, 1992. Businesses that serve the public must modify policies and practices that discriminate against people with disabilities; comply with accessible design standards when constructing or altering facilities; remove barriers in existing facilities where readily achievable; and provide auxiliary aids and services when needed to ensure effective communication with people who have hearing, vision, or speech impairments.

Green Practices Box

Throughout this textbook, a Green Practices box will highlight the benefits of running a sustainable green hospitality and tourism business. Green Practices Why are green practices important? Today, every organization should participate in environmentally friendly or “green” practices to ensure that all processes, products, and workplace activities address current environmental concerns. This is known as running a sustainable green business. The hospitality and tourism industry was one of the first to recognize the value of sustainable green practices for protecting the future of its guests, employees, planet, and profits.

Hospitality and Tourism Management Program v Table of Contents

Unit 1 Introduction to Hospitality and Tourism Program...... 2 Chapter 1 Hospitality and Tourism...... 4 Section 1.1 Introduction...... 6 Section 1.2 History of Hospitality and Tourism...... 8 Section 1.3 Global View of Hospitality and Tourism...... 10 Section 1.4 Scope of the Industry...... 11 Section 1.5 The R.A.V.E. Principle: Respect and Value Everyone...... 12 Section 1.6 Guest Service on a Global Scale...... 13 Section 1.7 Types and Organization of Accommodations...... 16 Chapter 2 Careers in Hospitality...... 20 Section 2.1 Introduction...... 22 Section 2.2 The People of Hospitality and Tourism...... 23 Section 2.3 Exploring Careers in Hospitality and Tourism...... 24 Section 2.4 Types of Hospitality and Tourism Careers...... 25 Section 2.5 The Hospitality and Tourism Professional...... 28 Section 2.6 You As a Guest Service Professional ...... 29 Section 2.7 Career Goals: The Job Hunt, Résumé, and Portfolio ...... 32 Section 2.8 The Interview Process...... 36 Section 2.9 Ethics: Doing the Right Thing ...... 38 Section 2.10 Self-Esteem: Respect and Value Yourself ...... 39

vi Hospitality and Tourism Management Program Unit 2 Hospitality Soft Skills...... 42 Chapter 3 Guest Cycle...... 44 Section 3.1 Introduction...... 46 Section 3.2 Stages of the Guest Cycle...... 47 Section 3.3 Guests: Who Are They?...... 50 Section 3.4 Global Traveling Public...... 52 Chapter 4 Guest Experience Cycle ...... 56 Section 4.1 Introduction...... 58 Section 4.2 Follow the Experience: Stages of the Guest Experience...... 59 Section 4.3 Operations and the Guest Experience...... 60 Section 4.4 Guest Service GOLD®...... 62 Section 4.5 Guest Recovery...... 64 Section 4.6 Guest Service Measurement (GSM) ...... 67 Chapter 5 Financial Processes and the Guest Cycle...... 70 Section 5.1 Introduction...... 72 Section 5.2 Follow the Dollar...... 73 Section 5.3 Protect the Money...... 74 Section 5.4 Guest Service and the Bottom Line...... 76 Section 5.5 The Guest Cycle and Financial Opportunities...... 78

Hospitality and Tourism Management Program vii Chapter 6 Communication ...... 82 Section 6.1 Introduction...... 84 Section 6.2 Types of Communication...... 86 Section 6.3 Communicating Effectively With Guests...... 87 Section 6.4 Workplace Etiquette...... 89 Section 6.5 Written and Electronic Communication Skills...... 91 Section 6.6 Barriers to Effective Communication...... 92 Section 6.7 Interdepartmental Communication...... 94 Unit 3 Operational Areas...... 98 Chapter 7 Front Office Operations...... 100 Section 7.1 Introduction...... 102 Section 7.2 Rooms Division...... 104 Section 7.3 The Front Office Manager...... 106 Section 7.4 Front Office Positions...... 108 Section 7.5 The Front Desk Operation...... 110 Section 7.6 Guests and the Front Desk ...... 113 Section 7.7 The Financial Reporting Cycle...... 114 Section 7.8 Performance Standards...... 115 Section 7.9 Room Rate Systems...... 117

viii Hospitality and Tourism Management Program Chapter 8 Executive Housekeeping Operations...... 120 Section 8.1 Introduction...... 122 Section 8.2 The Executive Housekeeper...... 124 Section 8.3 Guestroom Cleaning Basics...... 126 Section 8.4 Housekeeping Positions...... 130 Section 8.5 Inventory ...... 132 Section 8.6 Managing Inventories...... 135 Section 8.7 Linen Inventory...... 138 Section 8.8 Housekeeping Green Practices...... 140 Chapter 9 Facilities Management...... 144 Section 9.1 Introduction...... 146 Section 9.2 Facilities Management and the Chief Engineer...... 147 Section 9.3 Maintaining Property Appeal...... 150 Section 9.4 Preventive Maintenance...... 152 Section 9.5 Routine and Emergency Maintenance ...... 156 Section 9.6 Emergency Preparedness Plan...... 157 Section 9.7 Facilities Green Practices...... 158

Hospitality and Tourism Management Program ix Chapter 10 Food and Beverage Services...... 162 Section 10.1 Introduction...... 164 Section 10.2 Types of Food and Beverage Operations...... 165 Section 10.3 Food and Beverage Guest Cycle...... 167 Section 10.4 Food and Beverage Financial Cycle...... 168 Section 10.5 Restaurants and the ADA...... 170 Section 10.6 Food Safety and Sanitation...... 172 Section 10.7 Restaurant Operations...... 174 Section 10.8 Kitchen Operations...... 177 Section 10.9 Responsible Beverage Operations...... 178 Section 10.10 Banquets, Catering, and Event Planning...... 180 Section 10.11 Food and Beverage Green Practices...... 183 Chapter 11 Resort Operations...... 186 Section 11.1 Introduction...... 188 Section 11.2 Resorts...... 189 Section 11.3 Cruise Lines...... 191 Section 11.4 Recreational Vehicles and Tent Camping...... 194 Section 11.5 Off-Site Partners...... 195 Chapter 12 Operational Finance...... 200 Section 12.1 Introduction...... 202 Section 12.2 Revenue Centers vs. Cost Centers...... 203 Section 12.3 Introduction to Night Audit...... 204 Section 12.4 Night Audit Calculations...... 211 Section 12.5 Yield Statistic...... 212 Section 12.6 Financial Impact of Green Practices...... 213 x Hospitality and Tourism Management Program Unit 4 Sales and Marketing...... 216 Chapter 13 Marketing...... 218 Section 13.1 Introduction...... 220 Section 13.2 Operational Role of Marketing...... 222 Section 13.3 Basic Four Ps of Marketing...... 224 Section 13.4 Lodging Market Segmentation...... 226 Section 13.5 Tools of Marketing...... 228 Section 13.6 Marketing Messages ...... 231 Section 13.7 Marketing Ethics: Honesty in Advertising...... 232 Section 13.8 Green Practices...... 233 Chapter 14 Sales...... 236 Section 14.1 Introduction...... 238 Section 14.2 Role of the Sales Department ...... 239 Section 14.3 Structure of the Sales Department...... 240 Section 14.4 Prospecting...... 242 Section 14.5 Types of Sales ...... 244

Hospitality and Tourism Management Program xi Unit 5 Safety and Security...... 248 Chapter 15 Operational Safety...... 250 Section 15.1 Introduction...... 252 Section 15.2 Occupational Safety...... 253 Section 15.3 Risk Management...... 254 Section 15.4 Occupational Safety and Health Administration (OSHA)...... 257 Section 15.5 Operational Safety...... 259 Chapter 16 Security...... 266 Section 16.1 Introduction...... 268 Section 16.2 Hotel Security...... 269 Section 16.3 In-House Security...... 270 Section 16.4 Key Control...... 272 Section 16.5 Operational Emergencies...... 273 Section 16.6 Emergency Preparedness...... 274 Glossary Year 1...... 280 Index Year 1...... 294 Photo Credits Year 1...... 298

xii Hospitality and Tourism Management Program Year 1 Hospitality and Tourism Management Program

Chapter 1 – Hospitality and Tourism 1 Unit 1 Introduction to Hospitality and Tourism Program

XXChapter 1 Hospitality and Tourism XXChapter 2 Careers in Hospitality

2 Unit Overview

ver the past 100 years, the hospitality and tourism O industry has experienced monumental changes due to improvements in transportation, accommodations, and new technologies. This has resulted in hospitality and tourism becoming one of the largest industries on the globe and impacting those changes was a shift in the world’s population; the traveling public’s desire to explore new places and cultures, and changing global business needs. The Internet has had a major influence on travelers by opening up the world of hospitality and tourism as a global marketplace where someone can experience new people, places, and things. Travelers can quickly measure the cost of each travel choice against the value that the item will deliver; giving technology the ability to impact decisions about travel spending, length of stay, and type of accommodation required. The types of businesses making up the industry, such as airlines, rental cars, hotels, restaurants, and attractions, have created a vast network of companies looking for talented people who wish to build a career in hospitality and tourism. The hospitality and tourism industry grew so quickly in the early 20th century that it was necessary for companies engaged in the same type of business to find a way to connect with one another. This resulted in the birth of professional organizations such as the American Hotel & Lodging Association (AH&LA) and the National Restaurant Association (NRA). The purpose of industry associations is to protect, educate, and promote the needs of the people and businesses belonging to the associations. Known as member services, some examples of what associations provide to members are communicating new business trends, updating changes in laws and government requirements, and lobbying on behalf of the membership in the halls of Congress. This unit will take a look at the history, size, and elements that, over time, have fused together hospitality and tourism into one industry. Also, this section will explore the types of careers and the cycles involved for those wishing to pursue a career in hospitality.

3 Chapter 1 Hospitality and Tourism

XXSection 1.1 Introduction XXSection 1.2 History of Hospitality and Tourism XXSection 1.3 Global View of Hospitality and Tourism XXSection 1.4 Scope of the Industry XXSection 1.5 The R.A.V.E. Principle: Respect and Value Everyone XXSection 1.6 Competencies Guest Service on a Global Scale 1. Describe the changes hospitality and tourism have experienced in modern times. XXSection 1.7 2. Explain how hospitality and tourism depend on Types and Organization of one another for success. Accommodations 3. Describe the social impact of global travel and business on hospitality and tourism. 4. Describe the scope of industry services available for today’s traveler. 5. Explain the need for respect and value for all guests by the hospitality and tourism industry. 6. Explain the purpose of quality guest service in the hospitality and tourism industry. 7. Identify the types of hotels available to hospitality and tourism guests.

4 Hospitality Profile

Joseph A. McInerney, CHA President & CEO American Hotel & Lodging Association Joseph A. McInerney, CHA, is president and chief executive officer of American Hotel & Lodging Association (AH&LA). As the head executive of the largest trade association representing the U.S. lodging industry, Mr. McInerney implements and directs AH&LA’s services as well as provides leadership to association members. He also works directly with the volunteer officers, board of directors, and partner state associations in determining the direction of the industry. Since his appointment, Mr. McInerney has reorganized the association to streamline efficiency and strengthen its core operations, including consolidating its two affiliates to form the American Hotel & Lodging Educational Foundation. The AHLEF is the only educational dollar-dispensing, not-for- profit premier organization for scholarships, professional certification, instructional material, and funding for key industry research. Additionally, Mr. McInerney spearheaded the changing of the membership structure from a federation to a dual-membership format, streamlined the board of directors, and clarified the organization’s mission.

Your Task: Use the information contained in the textbook’s profile about this industry professional to complete the Professional Profile Activity in the student workbook. You may need to conduct additional research of your own about the profile topic covered in the workbook as well.

5 Section 1.1 Introduction

he pace of change seemed to explode following 1945 and the end erms you T of World War II, and the impact of those changes altered the face T of hospitality and tourism forever. No longer was travel reserved for should know only the very wealthy. In the 1950s and 1960s, all forms of transportation became more accessible and affordable. This resulted in business travel Hospitality—the reception becoming a common practice, and the birth of the family vacation. and entertainment of guests, In the following decades, more and more people began to travel, not visitors, or strangers at just to visit family and friends, but for the pure pleasure of seeing the resorts; membership clubs, world. The result was tourism as we know it today. Hospitality and tourism conventions, attractions, have grown into a large industry, so much so that many countries, such special events; and other as the United States, Japan, Great Britain, and China, consider it to be a services for travelers and key business driver within their economies. tourists.

Tourism—tourist travel and the services connected with it, regarded as an industry combined with hospitality.

Pineapple Fun Fact

In 1907, E.M. Statler built the first modern hotel, the Statler, in Buffalo, NY, with private bathrooms and a radio in every room. Eventually, his chain of hotels had 5,300 rooms that could accommodate 6,700 guests a day. He is considered the father of the modern hotel.

6 Chapter 1 – Hospitality and Tourism The Traveling Public

The hospitality and tourism industry exists to meet the needs of the traveling public. The reasons for traveling are varied, with each person having personal criteria for making any journey. However, Business the reasons why most people travel can usually a need to be placed into one of five categories: conduct business, attend a conference, convention, or meeting.

Recreation a wish for rest, relaxation, sports, and entertainment.

Culture a desire to learn about different places and things of interest. Visits to family and friends a wish or need to spend time with loved ones. Health issues a need for diagnosis or treatment from a non-local medical facility.

The Internet also has a huge impact on hospitality and tourism. Not just because it is easier to find and book travel online, but because online information about the people, places, and things found around the globe has created a greater interest in visiting those destinations.

Chapter 1 – Hospitality and Tourism 7 Section 1.2 History of Hospitality and Tourism 2001 – he modern history of hospitality and tourism really began in 1910 Following the attacks of Terms you T when 60 hotel operators formed the American Hotel Protective 9/11, hotels know Association. Today, this association operates as the American Hotel & implement should Lodging Association (AH&LA) which acts as a moving force in ensuring new anti- that the hospitality and tourism industry continues to thrive and meet the terrorism and Lodging—to temporarily have 1953 – The American security needs of its global audience. Hotel Institute is measures. a room in a hotel, motel, inn, Throughout history, travel has always contained the aspects of launched; today it bed & breakfast, or hostel. operates as the exploration, discovery, and financial gain at its very core. It is no different American Hotel & today; people want to visit places they’ve never been to learn about the Lodging Educational 1981 – The boutique heritage, culture, and natural wonders found at those locales. Business Institute (AHLEI). hotel concept is born. travelers seek to buy and sell in a global economy while technology makes even the most remote places more accessible to the traveling public. 2007 – Smartphones and “apps” are embraced by the Today’s traveler wants to explore the Amazon rainforest, conduct business hospitality industry, with both in Dubai, walk the Great Wall of China, ride a gondola in Venice, watch 1957 – Hilton Hotels guests and employees utilizing kangaroos in the Australian outback, gaze across the Grand Canyon, and offer a direct-dial the variety of services these be amazed by the engineering of Stonehenge. Along with this desire is the telephone service in phones provide. guest’s expectation that the hospitality and tourism industry be ready and guestrooms. able to not only meet, but be capable of exceeding, his or her travel needs. 2008 – Flat-screen TVs become the new standard for guest- 1990 – The 1910 – The American Hotel rooms. The future of Americans with Protective Association is innovation and 1969 – Chain 1972 – Hotels Disabilities Act founded in Chicago and today change will continue hotels begin begin accepting (ADA) becomes law is known as the American 1926 – 1947 – The to globally drive the offering credit cards and hotels begin Hotel & Lodging Association Route 66 is Roosevelt hospitality and swimming pools to “guarantee” offering accessible (AH&LA). completed, Hotel is the tourism industry. as a way to guestroom guestrooms and linking Los rst to install 1943 – Travel by train becomes increase pro ts. reservations. amenities. Angeles and popular and hotels bene t from TVs in all Chicago. the increased guest traf c. guestrooms.

1939 – The rst ight is made by a jet airplane opening up a new option in travel.

1910 – Grand Old Hotel

1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020 Decade (10-year increments) 8 Chapter 1 – Hospitality and Tourism 2001 – Following the attacks of 9/11, hotels implement new anti- terrorism and 1953 – The American security Hotel Institute is measures. launched; today it operates as the American Hotel & Lodging Educational 1981 – The boutique Institute (AHLEI). hotel concept is born.

2007 – Smartphones and “apps” are embraced by the hospitality industry, with both 1957 – Hilton Hotels guests and employees utilizing offer a direct-dial the variety of services these telephone service in phones provide. guestrooms.

2008 – Flat-screen TVs become the new standard for guest- 1990 – The 1910 – The American Hotel rooms. The future of Americans with Protective Association is innovation and 1969 – Chain 1972 – Hotels Disabilities Act founded in Chicago and today change will continue hotels begin begin accepting (ADA) becomes law is known as the American 1926 – 1947 – The to globally drive the offering credit cards and hotels begin Hotel & Lodging Association Route 66 is Roosevelt hospitality and swimming pools to “guarantee” offering accessible (AH&LA). completed, Hotel is the tourism industry. as a way to guestroom guestrooms and linking Los rst to install 1943 – Travel by train becomes increase pro ts. reservations. amenities. Angeles and popular and hotels bene t from TVs in all Chicago. the increased guest traf c. guestrooms.

1939 – The rst ight is made by a jet airplane opening up a new option in travel.

1910 – Grand Old Hotel

1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020 Decade (10-year increments) Chapter 1 – Hospitality and Tourism 9 Section 1.3 Global View of Hospitality and Tourism

ospitality has to meet the needs of modern tourism by providing a erms you H “menu” of travel choices for finding, reaching, and staying at any T destination. This means the travel-based industries must depend on one should know another for success. For example, a business traveler has to make a sales call in a major city. It will take an airline, car-rental company, hotel, Infrastructure—the basic, restaurants, and other local services to ensure that one person is able to underlying framework or reach, sleep, eat, enjoy, and conduct business during their trip. If you features of a system or multiply that same total of travel needs by the number of people wishing organization. to travel to this one city for just one day, you begin to get the idea of how large the hospitality and tourism industry in one major city might be. Now, think about the number of people globally who choose to travel each day, and the type of infrastructure the hospitality and tourism industry must have in place, so the needs of such a diverse group of people can be met.

10 Chapter 1 – Hospitality and Tourism Section 1.4 Scope of the Industry

he scope of hospitality-related businesses required to meet the needs of a destination’s guests will T typically fall into one of the following groups:

Accommodations Transportation Hotels Airlines Resorts Cruise lines Motels Rail Hostels Car rentals Vacation rentals Tour/coach operators Vacation ownership Bus lines Bed & Breakfast properties Taxis Recreational vehicles and camping

Food and Beverage Attractions Restaurants Theme parks Full-service Zoos Fine dining National, state, and local parks Quick service Natural wonders Bars and lounges Heritage sites

Chapter 1 – Hospitality and Tourism 11 Section 1.5 The R.A.V.E. Principle: Respect and Value Everyone iversity is a complex concept and can be very challenging to learn. erms you D Typically, diversity requires hospitality and tourism employees to T be sensitive to differences such as race, gender, age, physical abilities, should know religion, and sexual orientation, but it is really much more than just those few items. Diversity really means each person you meet will be unique Diversity—the human quality and must be appreciated as a one-of-a-kind individual. This is not a tough of being different or varied. concept to understand but is a hard one to actually use at work each day.

Inclusive—not excluding any To make it a little easier to understand, let’s break diversity down into a very basic idea. Diversity means learning to Respect and Value particular groups of people. Everyone (R.A.V.E) for where they come from, the personal beliefs and life experiences they may have, and the expectations they will have, both at home and when traveling. For anyone working in hospitality and tourism, this means that an inclusive environment must be in place to show both guests and co- workers that they are valued and respected simply for being themselves. Anyone able to accept this simple rule of respecting and valuing everyone (R.A.V.E.) can find success in the hospitality and tourism industry. How? By knowing when to ask questions to find out what is needed in order Diversity to deliver personalized services.

Every living creature requires food, water, shelter, and space to survive. Those needs are provided to the traveling public by the hospitality and tourism industry, along with comfort, safety, and understanding for the diversity of a global audience.

12 Chapter 1 – Hospitality and Tourism Section 1.6 Guest Service on a Global Scale

uests arrive at every destination with G a set of expectations and requirements Terms you that need to be met by the people operating know that property, attraction, or restaurant. The should delivery of the services guests want and need is known as guest service. This sounds Tangible Services— simple, but really, guest service is one of services that provide for the most difficult skills anyone working guest expectations using in hospitality and tourism can master. the physical assets of the However, those who do master the skills property. will find working with guests to be exciting and rewarding. Intangible Services—items of value to guests such as So, if you had to define guest service, what might you say? A simple comfort, safety, and enjoyable definition would be thatguest service is meeting the needs of guests the way they want and expect them to be met. It is important to remember that guest experiences that meet expectations are not limited to one culture or country, but are universal their emotional needs and and desired by every person who travels. Consequently, guest service is expectations. considered to be a key component on which both hospitality and tourism stand. This also means anyone working in the industry will be expected to know, deliver, and meet guest expectations all day, every day, and to the very best of his or her ability. What are the basic skills of guest service? If you asked guests, they would say guest service must always include: 1. Safety—Make me feel safe. 2. Courtesy—Treat me as an individual by showing me I am valued and respected. 3. Show—Provide me with the best guest experience your property has to offer. 4. Efficiency—Meetmy needs quickly and to the very best level you and your property can provide. These guest service skills can take the form of a tangible service such as providing extra towels or pillows when requested, or intangible service such as seeing to the safety, comfort, and enjoyment guests experience during their stay.

Chapter 1 – Hospitality and Tourism 13 Destination Marketing Destination marketing organizations (DMOs) specialize in attracting guests to a specific destination where hospitality and tourism are big business. Locations such as Orlando, Las Vegas, and New York City depend on the local DMO to help market and bring in visitors. Based on location, many destination marketing organizations may operate under a different name such as: In the United States • Convention & Visitors Bureau • Convention & Visitors Association Internationally • Tourist Authority • National Tourist Office or Organization • Tourist Bureau • Tourism Commission Regardless of the organization’s name, the purpose is basically the same for all. The key role of all DMOs is to develop local economic growth, attract visitors and conventions to the local area, and globally market the availability of attractions, hotels, restaurants, and other services. For guests, DMOs are an important resource for information about where to stay, eat, and play while visiting that destination. DMOs also serve as the official point of contact for convention and meeting planners and tour operators, which are often a major source of income for local businesses. They benefit guests, meeting planners, and tour operators by: • Offering unbiased information about all types of services and facilities available to guests • Providing “one-stop” information service about all local tourism sites and attractions • Assisting in the creation of marketing materials, also known as collateral materials, to help in the sales of group tours, meetings, or conventions • Assisting with on-site logistic and registration services • Assisting in the coordination of local transportation, special tours, and special events Most service are provided by DMOs at little to no cost, which is one of the greatest benefits offered by a destination marketing organization.

14 Chapter 1 – Hospitality and Tourism Visitor’s Map of Paris

Your Key of Paris

Accommodations Transportation Food & Beverage Shopping Attractions

Chapter 1 – Hospitality and Tourism 15 Section 1.7 Types and Organization of Accommodations

hen traveling, people will carefully decide what type of accommodations to book for their temporary W home away from home. Aided by the Internet, recommendations from family and friends, and past experiences, guests will begin to narrow down the decision, using the process of elimination. The first decision will be to choose the type of hotel that best suits the reason for travel. A person traveling for business will have a very different set of needs than a family of four going on vacation. Because of the vast assortment of reasons people travel, the hospitality and tourism industry has developed a variety of hotel types to better meet guests’ travel needs. The types of hotels include:

Commercial Hotels—Located in downtown business districts, this type of hotel caters to business travelers, tour groups, small conferences, and the occasional tourist.

Airport Hotels—Air travel created the need for hotels located inside or near airports. Both business travelers and tourists benefit, not only from the convenient location, but also from the services offered, such as courtesy vans to and from the airport. Most offer meeting/conference room space and banquet services as a convenience to groups wishing to stay near an airport while conducting business.

All-Suite Hotels—Feature suites containing living rooms, kitchenettes, and bedrooms for guests with longer hotel stays or a wish for a more “homelike” stay. Frequent business travelers, family vacation groups, and those needing temporary living quarters all find this type of hotel very appealing.

Extended-Stay Hotels—This type of hotel is similar to all-suite hotels but usually offers full kitchens and guest laundromat. These amenities appeal to travelers staying longer than five days and who prefer less hotel- and more apartment-like services.

Residential Hotels—Residential hotels offer permanent or very long- term occupancy to guests who prefer hotel living because of the amenities such as daily housekeeping service, concierge, and uniformed services. The guest accommodations can range from a typical guestroom to a suite or condominium. This type of hotel is often known as a condo hotel.

16 Chapter 1 – Hospitality and Tourism Resort Hotels—Typically resort hotels are found in destination locations where vacationers and business groups can enjoy the property’s recreation, sports, and spa facilities along with the local area’s natural wonders and entertainment venues.

Vacation Ownership Properties—Many people prefer to vacation at the same time and same place every year, and it was this preference that led to the development of the vacation ownership property. A guest will purchase a specific number of weeks or points that are then applied to the type of accommodations the guest wishes to use. The guest then “owns” that guest unit for the same time period every year for however long the ownership is contracted to last.

Casino Hotels—Casino hotels attract guests who enjoy gaming, live entertainment, and other recreational activities such as golf, tennis, or spa facilities. They used to appeal only to vacation and leisure travelers, but today, convention and conference visitors account for a large portion of casino hotel business.

Conference and Convention Centers—This type of hotel can be as small or as large as the number of guest attendees the property wishes to attract. Guests attending an event in this type of hotel will likely spend the majority of their time at the property. Event organizers will expect the property to provide “one-stop” planning for everything. Attendees will expect the hotel to provide a range of items from guestrooms to convention space, to breakout meeting rooms, to audiovisual equipment, to meals and banquets, to live entertainment.

Bed and Breakfast Hotels—Better known as a B&B, this hotel is usually a private home that has been converted into a hotel business for overnight guests. The owner acts as the host or hostess and will welcome each guest as a temporary member of the family. Breakfast is always included in the room rate and guests expect the entire stay to feel both warm and welcoming.

Other Travel Accommodations—Hotels are not the only place travelers can stay overnight. Many people choose to go camping or travel in a recreation vehicle (RV), or stay in hostels, while others like to travel by water in yachts and sailboats.

Cruise Ships—Large, floating hotels that travel from destination to destination. Today’s ships provide the same type of accommodations, recreation, live entertainment, and amenities as land-based hotels and casinos. Cruises appeal to guests who prefer to unpack once, have their meals provided, have a choice of recreational/entertainment options and daily destinations to visit.

Chapter 1 – Hospitality and Tourism 17 Apply Your Learning

Section 1.1 1. In what time period did travel become more affordable for the average person? 2. What did affordable travel give birth to? 3. What is E.M. Statler considered the father of? 4. What do people choose to do if they travel? Section 1.2 1. How many years are in a decade? 2. What was the American Hotel & Lodging Association’s original name in 1910? 3. What do guests expect from the hospitality and tourism industry when they travel? 4. What year was the Americans with Disabilities Act (ADA) passed into law? 5. What year was Chicago linked by road to Los Angeles and what was the name of the road linking the two cities? Section 1.3 A family from Lima, Ohio, plans to take a vacation to San Francisco, California. What types of businesses need to form the infrastructure for the family’s visit? List businesses they will use during the trip. Section 1.4 What hospitality-related industries are included under: 1. Accommodations – What do all these businesses have in common? 2. Transportation – What do all these businesses have in common? 3. Food and Beverage – What do all these businesses have in common? 4. Attractions – What do all these businesses have in common? Section 1.5 1. What should an inclusive environment show guests and employees? 2. What four things does every living creature need to survive? 3. What does the term diversity mean? 4. Why is valuing people for their diverse background important?

18 Chapter 1 – Hospitality and Tourism Section 1.6 Guest Service 1. What is the definition of guest service? 2. What two things do all guests arrive at a destination with? 3. What are the four basic skills associated with guest service? Destination Marketing 1. What does the acronym DMO stand for? 2. What is the purpose of a DMO? Section 1.7 Match the guest to the type of accommodation best suited to their travel needs. 1. A guest needs to travel for business to Dallas, Texas. He will need to stay for at least six weeks to complete the job he has been hired to do. He hates staying so long in a typical hotel. What type of accommodations would be the best choices for his needs? 2. Two sisters are planning a trip together. They both want to visit a variety of different cities or countries on the trip but hate the thought of having to pack and unpack at each destination. What type of accommodations would be the best choice for the sisters’ needs? 3. A couple are planning their honeymoon trip. They would prefer a place that is quiet and romantic with a lot of character. They also want it to be small, warm, and welcoming. What type of accommodations would be the best choice for the honeymooners’ needs? 4. A family of four likes to take a vacation every year, during the same week of July. They always go to the same place and wish they owned a home at that destination. What type of accommodations would be the best choice for the family’s needs?

Chapter 1 – Hospitality and Tourism 19 Chapter 2 Careers in Hospitality

XXSection 2.1 Introduction XXSection 2.2 The People of Hospitality and Tourism XXSection 2.3 Exploring Careers in Hospitality and Tourism XXSection 2.4 Types of Hospitality and Tourism Careers XXSection 2.5 The Hospitality and Tourism Professional Competencies XXSection 2.6 1. Identify the type of person found working You As a Guest Service Professional in the hospitality and tourism industry. 2. Identify the importance of expertise XXSection 2.7 building through on-the-job experience. Career Goals: The Job Hunt, Résumé, and 3. Identify the type of potential careers Portfolio available in the hospitality and tourism industry. XXSection 2.8 4. Explain the various career paths available in the hospitality and tourism industry. The Interview Process 5. Explain the role of the hospitality XXSection 2.9 professional. 6. Explain the skills and responsibilities of a Ethics: Doing the Right Thing guest service professional. 7. Identify the steps required during the job XXSection 2.10 hunt and interview process. Self-Esteem: Respect and Value Yourself

20 Hospitality Profile

(Richard) Cody Stevens, CRDS Reservations Group Coordinator Trump International Beach Resort Miami (Richard) Cody Stevens, CRDS, is a past graduate of the Lodging Management Program. Due to his success with the program, Mr. Stevens was accepted to Johnson & Wales University to pursue his bachelor’s degree in Hotel & Lodging Management, with concentrations in Resort & Cruise Line Management. Graduating from Johnson & Wales is not his last educational endeavor, however, since he is eagerly waiting to begin his master’s degree, and eventually his doctorate. Since graduating from the Lodging Management Program, opportunities have always been within reach for Mr. Stevens. Beginning his career with the program’s internship at Great Wolf Lodge in the Pocono Mountains, PA, he found himself with an opportunity to work full time at the resort’s front desk. After graduation and moving to Miami, FL, to attend school, he accepted a position as a reservations agent at the Trump International Beach Resort to further his work experience, and, within months, received a promotion to be the resort’s Reservations Group Coordinator. “It has been four years since I graduated from the Lodging Management Program. I am thankful for all of the opportunities and experience this program provided me to develop an exciting, and successful career. I look forward to the future and know that there are no limitations to what I can accomplish.”

21 Section 2.1 Introduction

he hospitality and tourism industry offers a much wider choice of career options than most other T industries. No matter what a person wishes to do, chances are the job exists as a segment of the industry. This means the work is varied with many creative opportunities in areas such as advertising, sales promotions, and marketing. The hospitality and tourism industry is a “people” business where the day is spent satisfying guests, working with motivated co-workers, and dealing with suppliers of goods and outside services. The industry does not have jobs that offer a traditional nine- to-five work schedule, but it does offer positions with a wide range of schedules that are flexible and nontraditional. This has the advantage of allowing time for work, school, and play for those who wish to work while attending college. Today, many industry leaders tell a common story of getting an entry-level job at a hotel, going to college while working, and moving up the career ladder as they gained both knowledge and experience.

Pineapple Fun Fact

In 1849, Ben Holladay owned the Overland Mail and Express Company which transported people, packages, and mail over a 3,000-mile area. The company had 110 coaches, 15,000 employees, and received $365,000 a year from the U.S. Postal Service for providing mail service to towns along its routes. He sold the company to Wells Fargo and invested his money in railroads. Trains soon replaced stagecoaches as long-distance carriers but they remained a popular form of local transportation. Stagecoaches were the bus service and taxi cabs of the time. It was the invention of the automobile that finally brought an end to the stagecoach.

22 Chapter 2 – Careers in Hospitality Section 2.2 The People of Hospitality and Tourism

hose who work in hospitality and tourism know that it takes a special T type of person to fill the vast array of jobs available in the industry. erms you They also know that a successful hospitality and tourism operation must T utilize both art and science. In what way does this happen? For art, it should know is the employee’s ability to create a place where guests feel welcome, safe, and comfortable, while science involves the employee being able to Hard Skills—skills used to consistently provide guest accommodations and services that will meet follow established protocols, or exceeds guests’ expectations. Hospitality and tourism careers can be operate equipment, maintain exciting, sometimes challenging, and occasionally glamorous. facilities, and utilize Today’s guests are global travelers from all walks of life, a variety computer systems. of culture and religions, and have very high guest service expectations. Anyone considering a career in hospitality and tourism must be prepared Soft Skills—desirable to work with a diverse guest audience and be willing to develop the qualities for certain forms necessary job skills. The job skills required will be either hard skills such of employment that do as utilizing the various computer systems, or soft skills such as providing not depend on acquired a special guest experience that is interesting and enjoyable. knowledge. They include When exploring a potential career option, it is always a good idea common sense, the ability to learn as much as possible before making a final decision. Some of the to deal with people, and a questions people thinking of a career in hospitality and tourism should positive, flexible attitude. ask themselves: • What type of education do I need to get a job in hospitality and tourism? • What types of careers are available to me in the hospitality and tourism industry? • Do I have what it takes to work in hospitality and tourism? • What skills or abilities does a hospitality and tourism career professional need in order to be successful? • Is there a career path I could follow? • What tools do I need to achieve my career goals? • If I applied for a job, what would I need to do during the interview process?

Chapter 2 – Careers in Hospitality 23 Section 2.3 Exploring Careers in Hospitality and Tourism hy are the questions listed in the previous section of this chapter erms you W so important? Exploring career options is important because the T type of business people chooses for their first hospitality or tourism job should know will have a strong influence on the career path they will take. Why? Because those job skills that are first learned will make a Expertise Building— person feel comfortable in the job and at the same time provide a sense developing the knowledge of belonging in that sector of the industry. Typically, once a person feels and skills required to perform they belong somewhere doing something, they will naturally begin to on the job at the highest take “ownership” of job duties and responsibilities. Once this happens, level. and without even thinking about it, a career has been born and a career path chosen. Eventually, industry workers come to realize that most hospitality and tourism-related skills are interchangeable within the industry. They see the time invested in that industry segment as expertise building that will allow them to travel up the career ladder. What does this mean for anyone entering the workplace? It means it is important early on in the career process to take a good look at the various sectors of the hospitality and tourism industry to ensure the first job will take them along a career path that is a right fit for the next ten-plus years.

24 Chapter 2 – Careers in Hospitality Section 2.4 Types of Hospitality and Tourism Careers

t is estimated that more than 1.8 million people work in the U.S. lodging industry and an estimated I 13 million work in the food service industry. These two simple facts make it very clear that the opportunities for a long-term career in just those industries alone are very possible. Add to that the millions of other jobs available in the other industries involved in hospitality and tourism and the potential career options are nearly limitless. This graphic shows some of the types of businesses found in the four main operational categories of the hospitality and tourism industry. Just about any career you can think of will very probably be available in one or more of the four categories.

Accommodations All-suite hotels Casino hotels Conference centers Full-service hotels Limited-service hotels Resorts Retirement communities Food Service Commercial cafeterias Education food service Employee food service Full-service restaurants Health care Lodging food service Quick-service restaurants Recreational food service Social caterers Transportation Airlines Bus lines Car rental companies Cruise ships Tour/Coach operations Attractions/Other Campgrounds Fitness centers Country clubs State and national parks Tourist merchandise operations Theme parks Zoos

Chapter 2 – Careers in Hospitality 25 Hospitality and Tourism Career Path Terms you The starting point of any career path will depend on a person’s should know educational background. This will determine whether he or she has the qualifications to bypass entry- or line-level positions. Educational qualifications are closely linked to work experience in that segment of Entry-Level—first-level the industry. However, most people entering the hospitality and tourism employment in a hospitality industry will typically start as line-level employees and go up the career firm which usually requires ladder from that point. Personal progress will depend on the employee a HS or equivalent level of developing and mastering the desired job position’s required tasks, education, training, and knowledge, and skills. experience qualifications. It gives a recruit the benefit A Typical Career Path Line- level of a gainful occupation, Entry-level and Skilled-level provide Entry-level opportunity to learn and gain services directly to guests: Skilled- experience, and serves as a Skilled-level • Hourly position that requires no level stepping-stone for higher- experience except willingness to level jobs. develop. Skilled-Level—the next step • Hourly position requiring previous in developing specific skills experience and mastery of specific and capabilities that can be job skills. transferred from one position • Oversees front line operation to another. Supervisory Supervisory and Management levels are

Supervisory—the level responsible for departmental operations: Management where experience, training, • Manages hourly and supervisory and initiative are combined level employees. to create the ability to lead • Responsible for administrative or employees and satisfy guests. higher level of a company, business, Management—the or hotel. Executive experience, education, and Executive positions provide: skills combined to provide the leadership to a department • Financial, operational, and or segment of a business leadership required for a business to function efficiently, effectively, and operation. profitably. Executive—a leader given How long it takes to achieve each step on career path will depend on your: the responsibility to manage the affairs of an organization • Ability to set personal goals and the authority to make • Willingness to learn decisions within specified • Ability to build good habits boundaries. • Work experience • Self-motivation • Self-discipline • Willingness to take risks

26 Chapter 2 – Careers in Hospitality Elevator to Career Success

Executive Certified Hotel Administrator (CHA)

Department Head Certified Rooms Division Executive (CRDE) Certified Food and Beverage Executive (CFBE) Certified Hospitality Housekeeping Executive (CHHE) Certified Engineering Operations Executive (CEOE) Certified Lodging Security Director (CLSD)

Managerial Certified Hospitality Revenue Manager (CHRM)

Supervisor Certified Hospitality Supervisor (CHS) Entry-Level Front Desk Representative Restaurant Server Guestroom Attendant Maintenance Employee

Chapter 2 – Careers in Hospitality 27 Section 2.5 The Hospitality and Tourism Professional

hen should someone begin developing themselves into an industry professional? The answer is, W right now. Those who choose to develop the skills required by hospitality and tourism professionals are setting themselves up, early on, for success. You As a Hospitality and Tourism Professional What, exactly, does a hospitality and tourism professional look like? Here’s a list of behaviors and practices that all hospitality and tourism professionals have in common: • Must be a people person with a pleasant personality • Willing to put in the effort/high energy • Willing to provide excellent service to guests • Have great communication skills (verbal and written) • Maintain a professional appearance (clean, neat, and tidy) • Creative problem solver/think on their feet • Willing to learn and develop new skills The hospitality and tourism professional needs to be able to put all these behaviors and practices to use but the challenge is how to accomplish this. Most companies and businesses have employee job responsibilities and expectations that state how each task should be done and when it needs to be completed. So how does a person complete required tasks while focusing on guest needs? This is possibly the toughest part of guest service to master. One way to do it is to: • Think of a plan for how you could interact with guests while performing certain tasks. Then test your plan on a friend to see how it would work with a guest. • Learn how to balance it all. For example, learn when employee responsibilities and company expectations outweigh guest service expectations or when guest service is the most important task to perform. • Know when to initiate customizing the service you provide to individual guests—for example, when you want a guest to feel special or important

28 Chapter 2 – Careers in Hospitality Section 2.6 You As a Guest Service Professional

fter mastering the basic skills of the hospitality and tourism A professional, the next step is to develop the soft skills needed to you professionally deliver guest service. The best place to start is by learning Terms to use the basic standards for guest service. should know There are four main components of any guest interaction and they are the same no matter the person’s personal background. This raises the Performance Standards— questions: what is the professional guest service performance standard? a list used to provide the What does it mean? How is it used by the hospitality and tourism industries? employee with specific The four main components of the guest service performance standard are performance expectations for related to the R.A.V.E. model in chapter 1. Each one is simple and easy each major duty. They are to understand. the observable behaviors and • Make the guest feel special. actions that explain how the • Treat the guest as an individual. job is to be done. • Treat the guest with respect. • Let every guest know he or she is a VIG (Very Important Guest). After becoming comfortable with using the guest service performance standard, the next step to becoming a guest service professional would Guest be to learn the basic soft skills everyone in hospitality and tourism must Service master. No matter what industry or business a person may build a career Gold in, these simple soft skills should always be in use. The industry expects a guest service professional to always: • Make eye contact and smile. • Greet and welcome each and every guest. • Seek out guest contact. • Provide immediate guest service recovery (this will be discussed in A training program from chapter 4). EI that teaches hospitality and tourism professionals • Display appropriate body language at all times. how to engage and • Protect the guest experience from negative influences. connect with their guests to deliver service that goes • Thank each and every guest. above and beyond the call of duty.

Chapter 2 – Careers in Hospitality 29 Here is how the guest service basics are applied to train new employees. Adopting these basic approaches as other career skills are being learned will provide a strong foundation for anyone wishing to work in hospitality or tourism. To make it easy to remember, the performance basics have been put into phrases for use when interacting with guests to make certain nothing is forgotten. The phrases to remember are: I project a positive image and energy when I: • Smile • Look approachable • Look happy and interested • Keep conversations positive I am courteous and respectful to all guests, including children, when I: • Make eye contact and smile • Engage in guest interaction • Treat guests as individuals • Greet and welcome each guest • Thank all guests and invite them back I appear professional when I: • Provide excellent service and remember safety is important • Perform my role efficiently by reducing guest hassles and inconveniences I go above and beyond when I: • Anticipate guest needs and offer assistance • Create surprises and delight my guests • Provide immediate service recovery and make it right for my guests

Your Responsibilities to Guests Guest service professionals understand they have a responsibility to meet and exceed guests’ expectations to ensure the quality of their stay is exceptional. They also understand the need to make things right for guests by actively listening to guest requests, concerns, or complaints. Never allow a guest to walk away feeling no one was listening to them. That is no way to treat a guest. The standard phrase in hospitality and tourism is to always “meet and exceed guest expectations,” which starts by learning the basic responsibilities and expectations every guest has for employees of the industry.

30 Chapter 2 – Careers in Hospitality What are the basic responsibilities and expectations a hospitality and tourism employee has for guests? The correct way to handle guests is to Terms you provide: should know • A clean, safe place to stay, dine, and/or play • A place that is welcoming Property Service • A staff that is knowledgeable Standards—the standards • Short wait times for services set to ensure consistent quality guest service in areas • A place and staff that can keep its guest service promises such as safety, cleanliness, courtesy, and efficiency that all employees are expected to Meeting Guest Expectations use. + Exceeding Guest Expectations Exceptional Guest Service

How is this done? By making a professional commitment to: • Learning and following your property’s service standards • Developing exceptional guest service skills • Delivering the type of service your guests expect

Chapter 2 – Careers in Hospitality 31 Section 2.7 Career Goals: The Job Hunt, Résumé, and Portfolio earching for a job takes a lot of patience and time. People who are National Travel/Event Terms you S serious about getting a job, need to be dedicated, organized, and Zoo Museum know always on the hunt for an available position. Scheduling time into each Park Planners should day to search for job openings, submittingrésumés , building a portfolio, and completing applications is extremely important, especially for Résumé—a brief written students looking to launch their careers while still in school or following account of personal, graduation. Theme Cruise educational, and professional The job hunt begins with a person researching the various segments Restaurant qualifications and experience, of the industry to determine which are a right fit for his or her job skills, Park Line for use by an applicant when training, education, and experience. applying for a job.

Portfolio—the contents of Job Hunt Sequence a case, such as a three-ring 1. Select a segment of the industry Car Rental Hotel Airline binder, that demonstrate • Hotel Agencies HotelHotel recent work or school • Restaurant experiences, specialized training, skills, certifications, • Attraction and awards. ₋₋ Theme park ₋₋ Zoo ₋₋ National park ₋₋ Museum • Airline • Cruise line • Support segments ₋₋ Car rental agencies ₋₋ Travel/event planners 2. Select a specific job position 3. Prepare a résumé 4. Begin filling out applications/sending in résumés 5. Prepare a portfolio to use during interviews 6. Prepare to be interviewed

32 Chapter 2 – Careers in Hospitality National Travel/Event Zoo Museum Park Planners

Theme Cruise Restaurant Park Line

Car Rental Hotel Airline Agencies HotelHotel

Chapter 2 – Careers in Hospitality 33 Purpose of a Résumé The most common tool used to find a job is the résumé. It should be a brief one- or two-page document that summarizes all qualifications, work experience, education, and achievements. Think of a résumé as an advertisement that is sent to companies trying to “sell” them on a person’s qualifications and skills. Sample Résumé: An Advertisement of Skills

Qualifications List of skills and abilities that make a person qualified for the job

Excellent people and sales skills Outstanding computer skills Strong communication skills

Great writing skills

Work Experience Hometown Inn 2010—present Front Desk Representative

Captain Anchor’s Seafood Grill 2009—2010 Server

Education Learnersville Community College 2010—present Seeking an AA Degree in Hospitality Management

Morgantown Career and Technical Institute 2008—2010 Hospitality and Tourism Management Program

High School Diploma—June 2010

Achievements Winner of the 2010 National Hospitality and Tourism Management Competition—one of a four-person team Dean’s List for Academic Performance for past two semesters

34 Chapter 2 – Careers in Hospitality Purpose of a Portfolio Portfolios are meant to impress and persuade employers to hire the job applicant. A portfolio should contain real examples of previous school and employment experiences that demonstrate the qualifications listed on a résumé. The goal is to show a commitment to the job, profession, and industry segment. How Does a Portfolio Work? The portfolio should contain visual examples of previous projects, tasks, training, and educational experiences. It should be a “living” document—meaning every time something new is achieved or experienced, an example of that experience should be added to the portfolio. The materials can be contained in a notebook with print copies of examples, or stored on electronic media such as a CD, DVD, USB drive, or other common media storage tools. Portfolio Ideas Portfolios should contain items such as: • Letters of recommendation • Awards and honors • School transcripts • Diplomas or degrees • Licenses and certifications • Community service • Military records, awards, or medals • Reports • Brochures • Presentations • Publications • List of references (personal and professional) ₋₋ Three to five people ₋₋ Full name, address, phone, and e-mail ₋₋ Will be asked about your strengths, abilities, and experience

Chapter 2 – Careers in Hospitality 35 Section 2.8 The Interview Process

ow you look, act, dress, behave, and perform on the job is extremely important to anyone wishing H to build a career in the hospitality and tourism industry. This is true when looking for any type of job and becomes even more important when applying for a position where guest service, the guest experience, and guest expectations are key job responsibilities. Simply put, no one wants to hire a dirty, rude person who thinks poorly of him- or herself, and isn’t sure what is the right thing to do. To prevent any or all of those things from affecting a person’s career-building efforts, the hospitality professional hopeful must learn: Professional Grooming: Dress to Impress The hospitality and tourism industry has high expectations for employee grooming and appearance. These expectations are based on guest expectations and each company’s guidelines. The basic grooming guidelines: • Be neat and clean (clothes and body) • Wear an assigned uniform correctly • Wear a nametag at all times • Maintain a professional appearance at all times This is also important when applying for a job. It is important to arrive at an interview dressed to impress. This shows potential employers that a responsible, professional person has applied for the job.

36 Chapter 2 – Careers in Hospitality Professional Behavior: Use Good Manners The hospitality and tourism industry depends on its employees to use good manners in order to provide a warm welcome to guests. Showing good manners during a job interview allows potential employers to see professional behavior in action. Professional behavior guidelines include: • Acting confident and self-assured • Making eye contact • Smiling and using positive body language • Having good posture • Being warm and welcoming • Addressing the person by name • Being fun and friendly • Being knowledgeable • Being willing to look for answers to guest questions • Being willing to provide great guest experiences These are the types of things potential employers will be looking for during an interview and are the behaviors you need to display to show you are ready and prepared to fill the position.

Chapter 2 – Careers in Hospitality 37 Section 2.9 Ethics: Doing the Right Thing

t is important to be honest on the job. Why? Because it is the right thing erms you I to do. The way to decide what is right from wrong on the job involves T something known as ethics. Ethics are the set of rules used to determine should know which actions are right and which are wrong. Behaving ethically is just as important as using good manners, but the rules are not as easy to Ethics—the rules or learn and follow. Sometimes ethics means following the letter of the law standards governing the while at other times it means following your heart, which tells you it is conduct of a person or the the right thing to do. This is often known as following your own morals. conduct of the members of a During a job interview, it is important to answer all questions honestly, profession. especially when it come to job skills. Employers would rather teach an honest person the skills they need to do the job than find out the person Morals—generally accepted they hired did not tell the truth about their abilities. customs of conduct and right living by a society, or an Using a Moral Compass individual’s lifetime-learned The person conducting the interview is looking for answers to questions personal practices of what is that show not only that the interviewee is capable of doing the job, but right or wrong. also that they will act appropriately on the job. During an interview, follow this compass: • Be honest and tell the truth • Show a willingness to learn new skills • Be consistent • Show the ability to treat everyone the same • Show an understanding of the importance of following all company policies and guidelines

38 Chapter 2 – Careers in Hospitality Section 2.10 Self-Esteem: Respect and Value Yourself

elf-esteem is important to anyone wishing to have a positive attitude S toward life and build a successful career. Why? Because it is important erms you to respect and value yourself and allows you to see what you are capable T of achieving. Most importantly, it prevents you from giving up. Those should know who respect and value themselves will find making career decisions easier to do. This is particularly important when hunting for a job. To land the Self-Esteem—a person’s career-starting job will require a lot of self belief and direction during the overall evaluation of his or job hunt. When you believe in yourself and understand that your point of her own self worth, which can view is valuable, you will be more likely to follow your convictions and be either positive or negative. make good career choices. Convictions—fixed or firm No one is born with strong self-esteem; it is developed from the actions, comments, and attitudes of the people surrounding a person as he or she personal or business beliefs grows into an adult. However, this doesn’t mean someone who thinks not easily changed without they have low self-esteem is stuck that way for life. Instead, it means he good reasons provided by or she will need to learn what must be done to raise their self-esteem from other people or situations. a low level to a high level using self-improvement tools and methods. It will take time, but the success achieved always makes it well worth the effort. In the hospitality and tourism industry, guests depend on employees who have a lot of confidence about themselves, their actions, and their job performance. Self-esteem is necessary for a person to be able to meet this guest expectation. Map for Building Positive Self-Esteem • Always focus on the positive • Learn to feel good about yourself Achievement Learn • Focus on what you like about Be Prepared Positive yourself • Walk and talk with confidence Focus • Always smile and stand up straight Smile Con dence

• Plan and prepare for all upcoming tasks Con dence • Focus on achieving new knowledge and skills • Don’t mistake confidence for being competitive • Don’t wait until the last minute to get tasks done • Never focus on the negative

Chapter 2 – Careers in Hospitality 39 Apply Your Learning

Section 2.1 1. What must anyone planning a career in hospitality and tourism be prepared to do? 2. Why is gaining knowledge and experience important to someone building a career in hospitality and tourism? 3. What non-traditional item does the hospitality and tourism industry offer its employees? Section 2.2 1. What should an employee be able to consistently provide to guests? 2. What employee ability is an art form? 3. List two types of hard skills a hospitality and tourism employee must be able to do. 4. List two types of soft skills a hospitality and tourism employee must be able to do. Section 2.3 1. Why will your first job in hospitality or tourism have such a strong influence on your future career choices? 2. What is time working in hospitality or tourism seen as and why is it important? 3. Do the choices you make today affect what you will be doing in 10 years? Give two examples of why you believe your answer to be correct. Section 2.4 1. What three things does an executive have to be an expert at? 2. What does an entry-level position contribute to your career development? 3. What does a manager have to provide to his or her employees? 4. What is the starting point of any career path? 5. What are three things your career will depend on for success? Section 2.5 1. Why is having a pleasant personality important to hospitality professionals? 2. What is required to maintain a professional appearance? 3. Scenario: A newly-hired employee is receiving on-the-job training but seems unwilling to talk to guests, has shown up in the wrong shoes, and seems to avoid making eye contact with guests. He has also been late getting to work every day and is grumpy to everyone for the first four hours of his work shift. ₋₋ What are your opinions about this person as a hospitality and tourism professional? ₋₋ How could you act as a role model of what a hospitality and tourism professional should look like, act with guests, and perform job duties?

40 Chapter 2 – Careers in Hospitality Section 2.6 1. What are the four components used in the guest service performance standard? 2. What are two of the basic soft skills a guest service professional must master? 3. How can you project a positive image? 4. How do you show courtesy and respect to all guests? 5. What should you do to appear professional? 6. What can you do to go above and beyond with your guests? 7. What does the phrase “meeting and exceeding” guest expectations mean you should do? Section 2.7 1. What are the first steps in the job hunt process? 2. Why is narrowing the job search down to a specific position important? 3. What four things should every résumé cover? 4. What is the purpose of a portfolio? 5. What can you use to hold or store your portfolio? Section 2.8 1. What do guests and employers expect from hospitality and tourism employees? 2. What do you need to do to be dressed to impress during a job interview? 3. Why is how you behave during a job interview so important? 4. What is the number one thing a potential employer will be looking for from you during a job interview? Section 2.9 1. What is the meaning of the term ethics? 2. What can help you know you are doing the right thing? 3. Why is being honest during a job interview so important? Section 2.10 1. Why is it important to value and respect yourself? 2. List four self-esteem characteristics that help to map out your career.

Chapter 2 – Careers in Hospitality 41 Unit 2 Hospitality Soft Skills

XXChapter 3 Guest Cycle XXChapter 4 Guest Experience Cycle XXChapter 5 Financial Processes and the Guest Cycle XXChapter 6 Communication

42 Unit Overview

his unit focuses on the types of soft skills Tdemonstrated during various levels of the guest cycle and the types of activities that occur during each stage of the cycle. Additionally, the communication skills required for a successful career in hospitality and tourism will be covered. Every guest checking into a hotel, cruise ship, or other type of overnight accommodations goes through a sequence of four steps that make up a process known as the guest cycle. Each step in the cycle can be divided into levels that deal with: 1. Employee task responsibilities 2. Guest experience 3. Financial soft skills 4. Communication components This unit breaks down each stage of the guest cycle into individual chapters to show how the processes, tasks, and transactions are handled by employees to guarantee a seamless guest experience.

43 Chapter 3 Guest Cycle

XXSection 3.1 Introduction XXSection 3.2 Stages of the Guest Cycle XXSection 3.3 Guests: Who Are They? XXSection 3.4 Global Traveling Public

Competencies 1. Identify the tasks performed during pre-arrival, arrival, occupancy, and departure stages of the guest cycle. 2. Identify how a seamless guest experience is managed by employees and the property. 3. Identify how the emotional engagement of guests is influenced by each stage of the guest cycle. 4. Explain how to determine guests’ wants and needs in order to meet and exceed expectations with the global traveling public.

44 Hospitality Profile

Jerry South Founder & CEO Towne Park Towne Park is a provider of hospitality staffing and parking solutions for hotels, casinos, hospitals, and other companies throughout the United States. Jerry South, founder and CEO, believes in learning through living. He’s a self-taught, savvy businessman and entrepreneur. “Every day I learn,” Mr. South shared in a recent industry article. “That’s the beauty of it. You must use each and every day as a lesson for tomorrow because you’ll need it.” It is this belief that enabled him to gain the trust of over 400 businesses nationwide over the past twenty years. Mr. South is passionate about “providing opportunities for people to do more than they ever thought was possible.” He believes talented people at all levels within the organization are the foundation of Towne Park’s success and is strategically involved in attracting and cultivating executive talent. “I have a lot of philosophies by which I live. One of them is that you can’t be afraid to hire people smarter than you.” In addition to his duties as Towne Park’s CEO, Jerry South is also the chairman of Towne Holdings, Inc.’s Board of Directors. He also participates in Towne Park’s Communications Council and is a member of Towne Park’s Executive Committee and Strategic Planning Group.

45 Section 3.1 Introduction

he flow of business can be divided into a four-stageguest cycle that you T has been traditionally associated with the hotel industry. However, Terms in recent years other segments of the hospitality and tourism industry should know have adopted the four stages of the guest cycle. The goal is a seamless guest experience during the stages of pre-arrival, arrival, occupancy, Guest Cycle—the step-by- and departure. This enables employees to efficiently serve guests with step process the guest goes a clear understanding of the flow of a guest’s personal and business through during a hotel stay. needs during each stage of the guest cycle. It also guarantees all financial transactions occur at the correct time and are processed accurately. This Seamless Guest chapter’s focus is on following the guest through the cycle and how each Experience—the smooth stage influences guest thoughts and decisions. flow of each guest activity from one to another without disruption, resulting in an overall positive feeling of satisfaction.

Pre-Arrival Arrival Occupancy Departure Hotel Room Reservation Check In Hotel Stay Check Out Restaurant Dining Reservation Be Seated Dining Experience Pay Bill Rental Car Reservation Pick Up Use of Car Return Car Theme park Ticket Order Enter Main Gate Time in the Park Leave the Park

Pineapple Fun Fact

The Willard InterContinental Washington Hotel was built in 1816 by Colonel John Tayloe, III, and is located within a block of the White House. This historic property has played host to many famous figures. It was the place where Dr. Martin Luther King, Jr. finished writing his “I have a Dream” Speech and where Julia Ward Howe wrote “The Battle Hymn of the Republic” during her stay.

46 Chapter 3 – Guest Cycle Section 3.2 Stages of the Guest Cycle Pre-Arrival Pre-arrival includes all the things a guest does before leaving home. Terms you It is the stage when the guest makes plans, reservations, and important should know financial decisions. Typically, what the guest accomplishes during the pre-arrival stage will include decisions such as: Moments of Truth—critical moments when guests Destination where they plan to go and staff interact, offering Departure date when they plan to leave Return date when they plan to return home opportunities for staff to Transportation how they plan to travel there and back make a favorable impression, Length of stay how long they plan to stay correct mistakes, and win Activities what they plan to do during the stay repeat customers. Budget how much they plan to spend Price the cost for each item and if it ts in the budget Pre-Arrival Method of payment how they plan to pay for everything

Pre-arrival is very important to the success of any business because this is when advertising and marketing need to attract the guest’s attention and influence the choices made at this time. Hotel companies recognized this need and began using a variety of marketing and advertising tools during this part of the guest cycle. The goal was to convert guest stay inquiries into actual guestroom bookings. The function of these tools, such as websites and brochures, is to help a guest get answers to questions about the property. Then, using this information, the guest can to go from undecided to confirming a reservation. Arrival Arrival, as the name implies, is the time when the guest arrives at a destination expecting to receive the type of services requested or decided on during the pre-arrival stage of the cycle. For many businesses it is a “moment of truth” because it is the time when the business must be capable of delivering what was promised to guests through advertising, marketing, and direct contact efforts. Now that the guest is on-site, making a lasting impression is critical. Why? Because this is when the guest will make the crucial decision to like or dislike the employees, the services provided, and the business as a whole. Likewise, it is the moment that establishes the overall feeling of how the guest experience will be during the entire time they are staying at the hotel, dining at the restaurant, or visiting the attraction. Often, it is during the arrival stage that a guest will decide if he or she will do repeat business with the company or merely “survive” this single experience. The arrival stage depends heavily on well-trained employees to provide guests with positive and problem-free experiences. Because guest

Chapter 3 – Guest Cycle 47 decisions happen at the speed of light, the lack of appropriate response by employees can have significant impact on the business’s ability to build a loyal following of guests. The loss of a single guest’s future business can have a huge financial impact on the company. Again, you may ask why? Because guests who are loyal also act as free marketing when they share their experiences with family and friends. This is also true of occupancy, the next guest cycle stage to be discussed.

Speed of Guest Thoughts

Experience Employee: Property: Personality, Ef ciency, Attitude Appearance, Staff Professionalism, Ambiance

Positive–Guest likes Negative–Guest dislikes Positive–Guest likes Negative–Guest dislikes Arrival Occupancy The stage of occupancy begins when the guest enters the guestroom, is seated in the restaurant dining room, drives away in the car, or walks into the first guest area of the attraction. This is the time when the guest expects to be immersed in the experience so they may see, do, eat, and explore. The most important thought for all employees and the business is to deliver on the guest experience promises made during the pre-arrival and arrival stages. Exceptional guest service must be delivered to ensure the guest’s thoughts and decisions continue to be positive and focused on how much they “like” everything. It only takes one “dislike” to cause the guest’s thoughts to take a negative turn. Sadly, once a guest begins to focus on a negative experience during the occupancy stage, and loses trust in the employee’s ability to meet his or her expectations, it is almost impossible for employees and the business to recover the situation. What does this mean? It means employees must be well trained, skilled at their jobs, and have a strong understanding of the importance of providing exceptional guest service at all times. For the business, it means providing the training, equipment, and managerial support to employees so they will be able to meet and exceed guest expectations.

Occupancy: Lost Guest Loyalty The flow of each step in the departure stage should combine business with the guest’s happy memories. A guest should never think, feel, or say to themselves or others, things such as:

• My server took way too long coming to take my order. • Why wasn’t my room cleaned this morning? It’s almost 4 p.m. • Why isn’t there a wait time posted? I’d like to know how long it will take to get on this ride. • I need help with my bags; where’s the valet? • I’d like more coffee; am I invisible? Occupancy: • Quit talking to your buddy and help me. I’m a paying guest. The Dark Side • This bathroom is dirty; for what it cost to come here, I expected it to be clean. • What do you mean “you don’t know?” You work here. You’re supposed to know!

Lost guest loyalty equals lost business; it is the responsibility of every employee to send departing guests away with only the very best experiences and stories to share with family and friends.

48 Chapter 3 – Guest Cycle Departure The departure stage, again as the name implies, is when guests conclude their business or experience followed by leaving that location. Curiously, this stage of the guest cycle is most likely to receive the least amount of effort by a business’s employees. Most people make the mistake of seeing departure strictly as the time to collect payment and send the guests on their way. However, this is not true. Settling the guest’s bill is only the start of the departure stage of the guest cycle. There are still a number of things that need to occur as part of this stage. Guests will also be looking for closure on the experience itself—documentation showing bill settlement, a warm goodbye, and, in some situations, a follow-up from the business to make sure the guest was satisfied with the services received. Departure has two components—one is getting the business of payment completed and the other is to emotionally engage the guest about the memories they have of the experience. Thanks for the Memories The flow of each step in the departure stage should combine business with the guest’s happy memories.

Collect payment Ask guest about experience Settle bill Ask guest to share a fond memory Provide guest with bill documents Give warm goodbye Give guest a moment to shift into departure mode Departure Follow up with guest to ensure satisfaction Look for marketing opportunity Departure is the time when employees have a chance to form a strong bond between the guest and the service received by encouraging the guest to focus on happy memories. It is also the time to influence current guests into committing to come back some time in the future. This is done by encouraging guests to share their experiences as the bill settlement process is being completed. Influencing guests into becoming repeat customers is extremely important in the hospitality and tourism industry and essential to the success of every business. Why? Because these businesses have learned that if they can bring just a small percentage of their previous guests back again, it will significantly increase profits by reducing the cost of advertising and marketing. How? By taking advantage of the word-of-mouth advertising provided by former guests when sharing their thoughts and memories with family and friends. Guest follow-up supports this idea by allowing guests to process the experience, come to a conclusion, and become receptive to the idea of using the services of the hotel, restaurant, attraction, ortransportation provider again and again. An example of this is sending out an e-mail to every guest within 48 hours of departure, thanking them for their business and asking for any feedback they might wish to share. The e-mail acts not only as a thank you, but as a way to proactively “discover” guest concerns or issues that occurred during arrival or occupancy but were never resolved to the guest’s satisfaction. The business now has a second chance, through follow-up, to make it right and resolve the situation.

Chapter 3 – Guest Cycle 49 Section 3.3 Guests: Who Are They?

very business needs clients and customers to buy its goods, products, or erms you E services. But the terms “client” or “customer” have a very businesslike, T cold feeling about them that does not fit in well with the concept of guest should know service. Consequently, the hospitality and tourism industry has chosen to refer to those they provide goods, products, or services to as “guests.” Quality Guest Service—a series of enhanced Guest Concept experiences provided to What is the idea behind the guest concept? The idea is simple; the a guest by a hospitality business and its employees should act as caring hosts to each and employee to raise the level of every guest. This will remove the cold, formal feeling from all business the guest’s satisfaction. interactions and raise them to a higher level known as quality guest Job Performance service, which should make the guest feel: Standards—a measurable set • Welcome of goals, objectives, and other • Appreciated elements that can be applied • Valued by an employer to determine the level of performance • Respected achieved by each employee. • Important Quality guest service is considered by hospitality and tourism to be the entry-level form of guest service. It sets a baseline expectation for the types of guest service soft skills needed by all employees in the industry to meet the most basic of job performance standards. Guest service on the very highest level requires employees to develop soft skills that go above and beyond the basic and deliver exceptional service. The elements needed for exceptional guest service will be discussed in Chapter 4 of this textbook.

50 Chapter 3 – Guest Cycle Hosting Guests The concept of being a guest is a universal one, meaning that no matter where a person travels globally, the basic skills of acting as a host by hospitality and tourism employees are the same. This has been an important factor in the amazing growth of international travel over the past 50 years as well. So how does the concept of hosting work? That depends on the category a business falls under:

Term Description

Accommodations where you will welcome guests into their “home away from home” for the night.

Food and where you are inviting guests to dine at your “place.” Beverage

Transportation where you are offering to make certain guests can get from one place to another.

Attractions where you are inviting guests to share and enjoy a day’s or night’s entertainment with you.

Chapter 3 – Guest Cycle 51 Section 3.4 Global Traveling Public

nternational travel is one of the fastest-growing economic I sectors of the hospitality and tourism industry. Today, the business volume of tourism equals or surpasses the export of oil, food products, and automobiles in countries such as Japan, China, and the United States. This means that job growth worldwide is an estimated 5 percent per year and growing. This is a good sign for anyone wishing to build a career in hospitality and tourism. However, the economic strength of global tourism depends heavily on the quality of the guest service and guest experience received by the traveling public. Today’s traveling public is vastly different from that of 50 years ago. Those working in hospitality and tourism must have a strong understanding of the diverse background and needs of guests.

52 Chapter 3 – Guest Cycle Guest Diversity Respecting and valuing the diversity of today’s traveling public can Terms you be complicated. To make it easier to manage requires an understanding should know of the country or region of the world the guest is arriving from and the purpose of the visit. Using those two pieces of information allows the Discretionary Income—the person delivering services to guests the opportunity to balance the items money left after necessities the guest is seeking with what is actually available. such as food, housing, and Apples to Oranges Comparison clothing have been paid for Guests have their own expectations based on a number of diverse that can be spent for luxury factors such as their: items and vacations. • Personality • Life Experiences • Education • Discretionary Income Employees assisting with decisions concerning types of accommodations, dining experiences, transportation needs, and available attractions need to listen carefully to what the guest expects. This will allow the employee to get a better feel for who the guest is and his or her likes and dislikes when traveling. Then, using the information gained from active listening, the employee must attempt to match, as closely as possible, the guest expectation to what is actually available at a specific destination. For example, the guest expects to stay in a small, family-run bed and breakfast but the destination is a safari park in Tanzania. The accommodations available for this location will be either a rustic safari lodge or savannah campsite. Does the guest expectation match what is actually available? No, it isn’t a perfect match. Because this is the case, it is the responsibility of the employee involved to make the guest aware of the choices available and help to select an option that will be suitable, if not exactly what the guest expected. This way, on arrival the guest has a realistic expectation of what will be waiting. Simply put, if the guest expects an apple but only an orange is available, make sure he or she knows what type of fruit is in the fruit bowl.

Chapter 3 – Guest Cycle 53 Balancing the Familiar with Unfamiliar The process involved in finding a balance between the familiar and the unfamiliar, so a guest has the best possible experience, can be a challenge. However, the solution is very simple. First, guest service professionals must be fully knowledgeable about all things available to guests at their location. Then they should use probing questions to help discover what is familiar to the guest to establish a better understanding of what the guest is used to experiencing and expects to experience during their visit. Next, they should use descriptions of the unfamiliar with references to the familiar in order to bridge the gap so the guest can begin to envision the guest experience at the destination.

For example: a guest wants to visit an exotic destination and stay in a five-star spa resort but no five-star properties exist at that location. The guest service professional assisting the guest will need to determine what that guest finds desirable aboutspa resorts. Using that information, the professional can then attempt to match what the guest desires to what is available, describe the types of accommodations available at the locale and answer the guest’s questions about the accommodations so he or she may come to some type of decision. It is important during this conversation to focus on providing honest descriptions of what is actually available so that the guest knows precisely what is being offered.

54 Chapter 3 – Guest Cycle Apply Your Learning

Section 3.1 1. What stage of the guest cycle deals with collecting payment for services received? 2. What occurs during the pre-arrival stage of the guest cycle? 3. How does occupancy differ between a hotel and a theme park? 4. Do food and beverage operations experience the arrival stage of the guest cycle? Explain your answer. Section 3.2 1. How do the pre-arrival activities impact what the guest experiences during occupancy? 2. What can happen during arrival that can cause the entire guest experience to be a poor one? 3. During occupancy, why should employees make sure guests only have positive thoughts? 4. Is collecting payment the only important activity to happen during the departure stage? Explain your answer. Section 3.3 1. Why is the term “guest” used by the hospitality and tourism industry? 2. What do you think of when the term “customer” is used? 3. What is involved in hosting guests at a hotel, restaurant, or attraction? Section 3.4 1. How does a guest service professional find out what type of services a guest is familiar with receiving? 2. What does a guest service professional need to know in order to match guest needs with actual services available? 3. Is it possible to help set a guest’s expectation of services available and, if so, how is setting the expectation accomplished?

Chapter 3 – Guest Cycle 55 Chapter 4 Guest Experience Cycle

XXSection 4.1 Introduction XXSection 4.2 Follow the Experience: Stages of the Guest Experience XXSection 4.3 Operations and the Guest Experience XXSection 4.4 Guest Service GOLD® Competencies XXSection 4.5 1. Identify the reason for encouraging repeat Guest Recovery guest business. 2. Identify the stages of the guest experience XXSection 4.6 cycle and the activities associated with each Guest Service Measurement (GSM) stage. 3. Identify the purpose for providing seamless guest experiences. 4. Identify the components used in above-and- beyond guest service. 5. Explain the role of guest recovery during the handling of guest complaints, issues, or problems. 6. Explain how and why guest satisfaction measurements help a business to run smoothly and profitably.

56 Hospitality Profile

David Kong President & CEO Best Western International Growing up in Hong Kong, Mr. Kong’s parents would take him to hotels for dinner or brunch and it was from those experiences that his interest in a career in hotels was born. He started as a busboy and dishwasher and still feels a special appreciation for people in those jobs. He has also worked as a waiter, front desk representative, and PBX operator (an older type of hotel switchboard phone system). He credits his desire for knowledge, intellectual curiosity, openness to embrace change, and his parent’s work ethic as the reasons for his success. Before Best Western, Mr. Kong’s career includes managerial experience with top hotel brands including Hyatt Hotels, Omni International, Regent International, and Hilton Hotels. He came to Best Western from KPMG Consulting’s hospitality and real estate practice. As a long-time active member of AH&LA, Mr. Kong has played a vital role in the association’s governance restructuring task force which resulted in the restructuring of the AH&LA bylaws, transitioning the association from a federation to a dual-membership organization in 2005. Today, Mr. Kong maintains his strong voice within AH&LA through involvement on the CEO Council, and his position as officer liaison to the Technology & E-Business Committee, Risk Management Committee, and Small and/or Independent Properties Advisory Council (SIPAC), among others.

57 Section 4.1 Introduction

or increased financial success, hospitality and tourism depend heavily erms you F on guest loyalty as a source of repeat business. The challenge has T always been finding ways to develop the type of lasting relationship with should know each guest that is necessary for that person to feel a sense of loyalty to a company or brand. Depending on the business or industry, this is often Brand—a particular product known as brand or guest loyalty. Today, the majority of businesses in or company associated with the hospitality and tourism industry have some type of loyalty program a name, logo, or unique that rewards guests when they do repeat business with that company or characteristic that serves brand. The rewards can range from free airline miles to free nights in a to identify that particular hotel or exclusive dining offers. Regardless of the reward, the outcome product or company. is the same, increased business and higher profits. However, before guest loyalty can be built, the company or brand must provide guests with something worth remembering. This something is known as the guest experience. It is a fact that, no matter the reason a person chooses to bring their business to a company or brand, one expectation is always the same. Every person wants to have a positive experience while staying with, dining at, traveling on, or being entertained by that business. This knowledge gave birth to the concept of the guest experience and the basic guidelines for what it takes to convert a guest into a loyal repeat customer of the business’s services.

Pineapple Fun Fact

The Stratosphere Casino, Hotel & Tower, at more than 1,100 feet, is the tallest freestanding observation tower west of the Mississippi. The tower offers a 360-degree view of the Las Vegas Valley and hosts the world’s highest thrill rides such as the Big Shot which shoots riders 160 feet to the top of the tower’s mast before dropping into a free-fall descent.

58 Chapter 4 – Guest Experience Cycle Section 4.2 Follow the Experience: Stages of the Guest Experience he guest cycle discussed in Chapter 3 is used to explain and train hospitality and tourism employees T on what is involved in a guest’s visit from the business or operational perspective. To guests themselves, the guest cycle means nothing. They see everything in the guest cycle as one seamless experience. As guests process through the guest cycle, they are experiencing more than just the business- related activities of pre-arrival, arrival, occupancy, and departure. They are also involved in the guest experience cycle at the same time. It is important to realize that attached to each stage of the guest cycle is a piece of the guest experience cycle that must be integrated with the others in order to provide a complete experience to the guest. The Two Cycles Work Together Employees have to be able to conduct the business of the guest cycle and, at the same time, provide an exceptional guest experience. Employees need to be able to see the experience from two different viewpoints and it’s the employee’s responsibility to realize these two perceptions are running parallel to each other and try to make them match as much as possible. The two viewpoints are: 1. The employee’s perception of what is being provided 2. The guest’s perception of what is being received The goal is for the guest cycle to be the same for all guests while the guest experience cycle will vary by guest based on the personal choices made during his or her stay. Imagine the guest cycle and the guest experience cycle are traveling down a parallel timeline with each item happening at the same time but with a different experience being delivered to each guest. Why does each experience differ? This will occur because of the difference in each person’s personality, background, and interests. It will also be due to the personal choices each guest will make during his or hers stay. Taking these individual differences into account, employees must find ways to consistently perform their job tasks during each stage of the guest cycle in order to meet and exceed each person’s guest experience expectations.

During each stage of the two cycles, the guest will: Guest Idea Decide Participate Advocate Experience Form opinion Cycle Show interest Commit to idea Be engaged (yes/no) about loyalty

Guest Cycle

Pre-Arrival Arrival Occupancy Departure

Chapter 4 – Guest Experience Cycle 59 Section 4.3 Operations and the Guest Experience

he phrase “seamless guest experience” is based on the simple idea of making certain that guests T cannot tell when they shift from one part of the cycle to the next. It should all flow from start to finish as smoothly as possible. People who experience hiccups or glitches during their guest experience are more likely to remember those incidents over the positive ones. One golden rule of guest service often used by hospitality employees is to never forget it only takes one bad moment to spoil everything for the guest. This means every seamless guest experience must be positive as well. The Positive Experience So, how does a guest service professional accomplish providing a seamless guest experience? The process includes four steps:

Be outstanding 1 at your job.

Project a positive 2 image and energy.

Provide above-and- 3 beyond service.

Show respect and 4 value for everyone.

These four simple steps will communicate to guests more than words and have a major impact on their overall experience. It is important to keep in mind guests usually remember the last thing that happens during their visit, so each guest experience must be a good one.

60 Chapter 4 – Guest Experience Cycle The Right Thing The hospitality and tourism industries were one of the first to embrace and provide for guests with special needs to show they respect and value everyone (R.A.V.E.). Why? Because it is the right thing to do. Additionally, in 1990 the Americans with Disabilities Act was signed into law. This law was created to provide a clear and comprehensive national mandate for the elimination of discrimination against individuals with disabilities. The hospitality and tourism industry responded to the ADA law by finding new methods to provide guests with disabilities experiences designed to meet their special needs and personal expectations. ADA

By Law, the Americans with Disabilities Act (ADA) requires all businesses to make reasonable accommodation for customers with special needs.

A Global View of the Guest Experience Meeting the multi-faceted needs of a diverse guest audience has become an established goal in all areas of the hospitality and tourism industry. Guest diversity can mean they are international travelers, special needs guests, business travelers, vacationers, honeymooners, or infrequent travelers, just to name a few. Ecotourism, archeological tours, and heritage travel have all become popular trends, as has discovery travel with guests wishing to visit regions of the world that were previously inaccessible to tourism and travel. Hotels and transportation providers saw the change in what guests were seeking and began to create the infrastructure guests would need to travel according to their personal preferences. This resulted in an explosion of international travel options, destinations, and guest services. The travel options range from very luxurious to most basic, the destinations range from exotic to nearby, and guest services can be had on any level a guest desires. It is up to the guest to decide what options, destinations, and services he or she wishes to select during the pre-arrival stage of the guest experience cycle. Once the guest has chosen, the hospitality provider has accepted responsibility for providing those items promised to guests. Making Guests Feel Comfortable Guests arriving at any destination must be made to feel welcome, but they must also feel comfortable. This is particularly important with a diverse guest audience. Items that typically make international, special needs, or infrequent travelers feel uncomfortable are: • Language barriers, not speaking the location’s language • Change in diet, lack of knowledge about local cuisine • Transportation concerns, making arrangements to visit the local area Guest service professionals must be prepared to step in and provide guests with the knowledge, expertise, and answers they will need in order to raise their comfort level. Once a guest realizes the hospitality employee cares and wants to make their guest experience positive and seamless, they will relax, enjoy, and remember the person who made them feel comfortable in their new surroundings.

Chapter 4 – Guest Experience Cycle 61 Section 4.4 Guest Service GOLD®

uest service is a key element in both hospitality and tourism. It is considered an essential soft skill G to anyone wishing to have a long and successful career in either segment of the industry. It starts by learning how to apply the guest service basics of: • Wear a smile and be polite • Make eye contact • Use the guest’s name • Wear your name tag at all times • Present a professional appearance • Treat guests as individuals • Make guests feel special • Meet and attempt to exceed guest expectations Once the basics are mastered, the next step is developing the skills required to deliver above-and- beyond guest service. It was the need for hospitality professionals to have the tools and skills necessary for exceeding guest expectations that led the American Hotel & Lodging Educational Institute (EI) to develop the Guest Service GOLD® training and certification program. Guest Service GOLD® focuses on seven key elements necessary for delivering the very highest levels of guest service on an ongoing basis. The goal is to make providing above and beyond guest service a routine part of the guest service professional’s day. Why? Because it is a well-known fact that providing the best guest service possible will have a positive impact on the company, the employees, and most importantly, the guests.

62 Chapter 4 – Guest Experience Cycle The seven elements of Guest Service GOLD® are:

Authenticity: Keep It Intuition: Read the Need Empathy: Use Your Heart Champion: Be a Guest Real Hero

Delight: Provide a Delivery: Follow Through Initiative: Make the Surprise Effort

Professional Certification Part of career development in any industry is to seek a professional certification designation from the appropriate certifying organization. Why? Because a professional certification shows that the recipient has completed the coursework and passed a difficult exam that tests for the required knowledge, skills, and expertise needed to receive the designation. In the case of hospitality and tourism, the certifying organization is the American Hotel & Lodging Educational Institute (EI). EI recommends that the one certification every person in hospitality and tourism should hold is the Certified Guest Service Professional (CGSP) designation. Depending on the structure of the Hospitality and Tourism Management program in this school, it may be offered as part of the course work. If not, the training is available by contacting the EI Professional Certification department at www.ahlei.org.

Chapter 4 – Guest Experience Cycle 63 Section 4.5 Guest Recovery

uest loyalty cannot be bought; it has to be earned by eliminating any erms you G sources of dissatisfaction. This is particularly important during a guest T complaint situation. The source of the issue must be quickly identified, should know investigated, and a solution suggested. This is known as providing guest recovery following a negative situation and is a very important part of Advocacy—the action of guest advocacy. supporting a cause, situation, There can be three types of outcomes during a guest recovery situation: or need based on the facts and feelings of those involved.

Compensation—something given or received as an equivalent for loss of services or guest inconvenience.

The goal is to create a win-win outcome for everyone. This means finding the source of the issue, problem, or complaint so it can be removed, then finding a workable solution everyone can agree on. Typically, the solution is some type of apology or compensation depending on severity of the issue.

64 Chapter 4 – Guest Experience Cycle Make It Right A common model used for achieving win-win outcomes to guest Terms you complaints is the L.A.T.E. model. It is a four-step process for handling should know any challenging situation, whether it is with a guest or a coworker. The acronym stands for: Liability—the fault imposed against a business for injuries that occurred on the business’s property or as a result of negligent activities by employees.

Why Apologize? During the second step of the LATE model, it is important to acknowledge the guest’s feelings and inconvenience through the use of an apology. The apology should be limited to the employee showing an understanding of the emotions the guest is feeling at that moment and should demonstrate the employee is actively listening to the guest’s concerns. However, the apology should never admit to any fault on the part of the employee or business. Accepting fault for situations such as guest accidents, thefts, or other negative incidents, can be seen as the employee accepting liability for them and could lead to the guest taking legal action against the employee and the business.

Chapter 4 – Guest Experience Cycle 65 Advocacy Traditionally, the word advocacy means a person has become the champion of something or someone, such as personal beliefs. In hospitality and tourism, advocacy stands for guests promoting the company or brand to others. To those employed in the industry, it represents the services they protect and safeguard for guest enjoyment. Advocacy has two components: 1. The advocacy of a loyal guest who brings in repeat or new business. 2. The advocacy of the employee acting on behalf of the guest and their employer. The first type of advocacy occurs when the guest experience is problem-free. The guest will be quick to share the details of the exceptional guest experience with family and friends. It is very likely the guest will advocate visits by others, either when asked for a personal recommendation or when sharing a positive memory from the experience. This type of guest advocacy is incredibly valuable to all hospitality and tourism industry businesses. The second type of advocacy happens when a negative guest situation is corrected to everyone’s satisfaction. Typically, negative guest situations will require an employee to use the L.A.T.E. model to achieve a win-win guest recovery solution. In this instance, the employee has the opportunity to convert the guest into a loyal guest by handling the situation correctly and reaching a solution that works for everyone involved. If the employee fails to achieve a win-win solution, then chances are the guest will leave dissatisfied and never become a loyal guest. Lost guest loyalty is often referred to as a lost opportunity in hospitality and tourism. Why? Because a dissatisfied guest has the ability to share that lack of satisfaction with family and friends, which can result in lost business to the company or brand. So, the opportunity was there to fix the problem but it did not happen, hence the lost opportunity label. People who learn this early on, and begin using the LATE model to achieve a positive outcome during every guest recovery situation, will grow guest loyalty alongside their career.

66 Chapter 4 – Guest Experience Cycle Section 4.6 Guest Service Measurement (GSM)

ospitality and tourism businesses have long recognized the need to measure how successful they H are in meeting and exceeding guest expectations. The tool most commonly used to measure guest satisfaction is the Guest Service Measurement (GSM). Regularly providing guests with the chance to give feedback about their guest experience is the best method of determining success or the need for change. This can be done using comments cards, sending a link to an online survey, making a follow- up phone call, or having a feedback section available on the website. Once the information is received, the guest experience provider can do one of two things with the GSM; they can choose to: Take action and make necessary changes in response to:

Negative guest feedback indicated by a low GSM score • Failure to make changes could result in: ₋₋ Loss of business ₋₋ Lower profit

Not take action and leave the experience as it is due to:

Positive guest feedback indicated by a high GSM score • A high score indicates: ₋₋ Guests are very satisfied with the experience ₋₋ No changes are currently needed

Guest Service Measurements (GSMs), when conducted regularly with guests, will provide the information any business needs to make good decisions impacting the guest experience. Why? Because, any negative impact on guests can also have a negative impact of revenue and profits. Consequently, successful hospitality operations know that a happy guest is likely to visit often, spend more, and will recommend others do the same. The GSM process tells guests the company or brand is listening and cares about their opinions. Another benefit of allowing guests to rate their experiences is the ability to determine the value guests place on various services. This information about which services should be kept long term and which ones should be discontinued due to lack of guest interest or satisfaction can help to make a company or brand more profitable. Keeping guest experiences that are profitable can be very important when the property is using outside vendors or suppliers to provide services such as guest transportation, tours of local attractions, and on-site entertainment. Measuring guest satisfaction can ensure the guest experience is memorable and cost effective for both the business and the guest.

Chapter 4 – Guest Experience Cycle 67 Apply Your Learning

Section 4.1 1. What does the term branding mean when used in the hospitality and tourism industry? 2. Why is building guest loyalty so important to businesses involved in the hospitality and tourism industry? 3. Why is active listening an important career skill? Explain your answer. Section 4.2 1. How can an employee use the two different viewpoints to ensure a positive guest experience? 2. Why is the guest experience cycle not the same for every guest? 3. Should the business of guest arrival be the only thing a hospitality employee should focus on? Why? Section 4.3 1. Why is providing a seamless guest experiences so important? 2. Why does one bad guest experience have a major impact on guests? 3. Why is making reasonable accommodation for special needs guests so important? Explain your answer. Section 4.4 1. List four of the guest service basics and explain why you believe each one should be an automatic part of the guest experience. 2. Select one of the seven Guest Service GOLD® elements and write a paragraph about why you think it is an important part of excellent guest service. 3. Why is gaining professional certification an important part of career development? Explain your answer.

68 Chapter 4 – Guest Experience Cycle Section 4.5 1. Why is a win-win solution to guest issues important? 2. List two things you must do to show you are listening to guests? 3. What type of action should you take when solving a guest problem or complaint? 4. Write a phrase you could use to apologize for a guest’s inconvenience due to the electricity being off for an hour? Section 4.6 1. What is the purpose of asking guests for feedback about their guest experience? 2. Why is it important for all hospitality and tourism businesses to continuously monitor guest satisfaction? Explain your answer. 3. What could happen if a company or brand fails to measure guest satisfaction?

Chapter 4 – Guest Experience Cycle 69 Chapter 5 Financial Processes and the Guest Cycle

XXSection 5.1 Introduction XXSection 5.2 Follow the Dollar XXSection 5.3 Protect the Money Competencies 1. Identify the need for protecting the guest’s XXSection 5.4 right to privacy. Guest Service and the Bottom Line 2. Identify the need to protect guests against identity theft and fraud. XXSection 5.5 3. Explain the financial transactions that The Guest Cycle and Financial occur during the guest cycle. Opportunities 4. Identify the financial processes used to protect guest privacy. 5. Identify the type of sensitive guest information at risk during a financial transaction. 6. Explain the financial purpose of an employee code of conduct. 7. Identify the financial opportunities for employees to influence guest spending during the guest cycle.

70 Hospitality Profile

Ashli Johnson Hospitality Consultant

Born into a military family, Ashli Johnson has lived internationally throughout her life and quickly learned that the world would be her classroom. After completing a Bachelor’s degree in Hospitality, Resort & Spa Management at the University of West Florida, Ms. Johnson has been privileged to work under the tutelage of industry leaders at some of the country’s premier hotels, including the Walt Disney World Resort, Loews Hotels, WaterColor and WaterSound Resorts, Doubletree Hotels, The Fontainebleau Miami Beach, and Hyatt Hotels & Resorts. A sought after speaker, Ms. Johnson has been invited to speak at various industry conferences and top hospitality programs including Johnson & Wales University, Eastern Carolina University, Temple University, the University of Central Florida, and Bethune Cookman University. An engaged, servant leader in the hospitality industry, Ms. Johnson is proud to be involved in organizations such as the National Society of Minorities in Hospitality, ConNEXTions Worldwide, The National Association of Black Hotel Owners, Operators & Developers and also serves as Vice Chair of The American Hotel & Lodging Association’s Gateway Council. Ms. Johnson holds a Master’s degree in Hospitality and Tourism Management from Florida International University and is an independent hospitality consultant for Urbane Hospitality Group.

71 Section 5.1 Introduction

ne of the most intricate tasks hospitality and tourism employees erms you O have to do is communicate with guests about financial transactions. T This requires the use of a specific set of financial processes designed should know to protect the guest’s right to privacy. Guests must feel their personal financial information is safe and secure when having a financial transaction Payment Cards—group term discussion with an employee. Since financial transactions will occur during used for credit, debit, and every stage of the guest cycle, employees must learn the correct methods, cash cards used for all types processes, and procedures required to protect everyone involved. of financial transactions. Protecting a guest’s personal and private information is a necessary and Fraud—refers to all types sensitive part of anyone’s job in hospitality and tourism. Consequently, of crime in which someone learning how to responsibly complete job duties involving cash, credit wrongfully obtains and uses cards, or checks will require the employee to learn the specialized processes and procedures used when completing a transaction. This is due to the another person’s personal issue of guest privacy as well as the legal implications involved when data in some way that personal financial information is being discussed or processed. Both the involves criminal activity employee and the company he or she represents can be held liable if the or deception, typically for guest’s right to privacy is not protected. This is especially true with any economic gain. Information type of payment cards or other credit information. Also, to protect against obtained is then used to payment card fraud and identity theft, there are some specific rules about commit illegal purchases or how, what, and when payment card information can be discussed. other financial transactions This chapter will discuss without the consent of the various financial processes the person to whom the and procedures and how they information legally belongs. are used to protect guest privacy, and protect against Identity Theft—the term theft and fraud. Guests should used for a crime in which an feel the property is working imposter obtains key pieces to protect their personal of personal information, such information. as Social Security or driver’s license numbers, in order to impersonate someone else.

72 Chapter 5 – Financial Processes and the Guest Cycle Section 5.2 Follow the Dollar

large part of what occurs during the guest cycle has to do with money. It may involve the use of Aa credit card to guarantee a reservation or book a plane ticket, or obtain cash to purchase tickets to an attraction or pay for a meal. Consequently, every stage of the guest cycle will involve some sort of financial transaction. Anyone wishing to build a career in hospitality and tourism will need to learn the processes and procedures necessary to handle those transactions appropriately. Let’s follow the guest dollar and see where it’s spent during each stage of the guest cycle. Some examples of financial transactions during each stage include:

Send a deposit or Purchase Pay for meals, local Settle bill for hotel room guarantee hotel attraction transportation, or nights or buy a plane room nights tickets purchase souvenirs ticket home

Financial Transaction Guest Cycle

Pre-Arrival Arrival Occupancy Departure

Pineapple Fun Fact

In 1942, during the height of World War II, the Atlantic Hotel in Hamburg, Germany, had its own way of dealing with the threat of daily bombardments. The hotel’s restaurant placed the following request on the menu: “The possibility of an air raid compels us to ask our honoured guests for immediate payment.”

Chapter 5 – Financial Processes and the Guest Cycle 73 Section 5.3 Protect the Money

t has become necessary for those working in the hospitality and tourism Terms you I industry to recognize the need to protect the flow of cash, payment know card information, and guest privacy during the guest cycle. This protects should the company, employee, and the guest from theft and fraud. This is true whether the transaction is in person and payment changes hands or when Point of Sale (POS)—the technology is involved such as a payment made over the Internet. device or location where a sale or financial transaction Most financial transactions will take place in high-traffic, public areas where cash registers known as Point of Sale (POS) systems are located. occurs. It is also the most likely place for someone wishing to steal sensitive Sensitive Information—a information for criminal use to attempt illegal access. Since it is hard to person’s information that is know who is watching and listening, employees must know the processes confidential and not available and procedures to follow when handling a guest transaction. This includes to the public, such as knowing: Social Security Number, • What general information is safe to ask for verbally a driver’s license number • What sensitive information is never to be asked or state identification verbally card number, bank • How to protect guest privacy account numbers, or credit/debit card • How to protect guest sensitive information against numbers. criminal use • How to properly collect payment to protect his or her company against fraud This is a huge responsibility but one that can be easily accomplished by: • Following company policy • Being in control of the financial transaction process • Moving guests to private, secure locations when discussing sensitive information when necessary • Keeping cash and sensitive guest information safe and secure

74 Chapter 5 – Financial Processes and the Guest Cycle As guests pay for services or purchase a variety of items, the employee involved is expected to understand the sensitive nature of handling cash, processing credit or debit cards, managing sales receipts, and other financial processes. Most often, these interactions involve communicating with a guest in person, by phone, or e-mail. But it is typically during an on-site transaction that financial processes and procedures are used. This is when employees put everything they know to use by following the rules and acting responsibly when conducting a financial transaction. Why? The guest expects guaranteed protection against identity theft and payment card fraud from any place of business during a financial transaction. In order to prevent having to deal with the negative impact on everyone involved when either identity theft or payment card fraud has occurred, most businesses take protecting guests against both crimes very seriously. Remember, the security of money in any form, paper or plastic, is a part of everyone’s job in hospitality and tourism. Some examples of financial transactions involving sensitive information are: • Accepting payment, deposit, or prepayment • Collecting overdue payments • Declining of a credit card Some examples of sensitive guest information in need of protection are: • Guest name and other personal information • Credit and debit card account information • Bank account information • Guest hotel and guestroom number

Chapter 5 – Financial Processes and the Guest Cycle 75 Section 5.4 Guest Service and the Bottom Line

uests do business with companies capable of protecting sensitive Terms you G information during financial transactions. Having financial should know procedures in place helps to build guest confidence in the employees’ ability to protect private information. Any loss of confidence in this Bottom Line—the last line area impacts the company’s profits and bottom line. Guest confidence is increased when employees directly involved in financial transactions of a financial statement that show they are well-trained and able to appropriately handle cash, credit/ shows the net profit or loss of debit cards, and checks. a company or organization.

Emotional Engagement—the Use of nancial procedures = emotional connection that an Guest peace of mind + Leads to guest loyalty employee feels for his or her job, that causes him or her to Improved bottom line for company perform the job to the highest standard. A company’s bottom line depends heavily on employee job performance. Profit and Loss (P&L) Consequently, employees must have a sense of responsibility and a feeling Report—a financial statement of belonging to the company. This is known as emotional engagement that summarizes the on the job. But, how does an employee accomplish this? revenues, costs, and expenses Employees who become emotionally invested in their jobs and incurred by a business during company also have a stronger commitment to the guests they service. a specific period of time. Guests can spot invested, engaged, and committed employees. They begin to build their loyalty to the company based on the employees’ ability to safeguard sensitive information, willingness to protect guest privacy, and commitment to their jobs. All these factors improve the quality of guest service provided and make the company profitable. Those profits show up on the bottom line of the profit and loss (P&L) report and lead to the company’s success. It does not take a lot of thought to realize that working for a successful company is a good career choice. However, never forget it is the employees who contribute a lot of effort toward that success.

76 Chapter 5 – Financial Processes and the Guest Cycle Chapter 5 – Financial Processes and the Guest Cycle 77 Section 5.5 The Guest Cycle and Financial Opportunities he guest experience must be a memorable one if the property wants to be a popular destination T and financially successful as a company. Employees must always be looking for an opportunity to increase profits by influencing guest spending through suggesting additional experiences for the guest to enjoy. This is particularly important during the occupancy stage of the guest cycle when guests will ask employees for ideas and opinions on places to visit, dine, or shop. How this will be accomplished will depend on the type of hospitality or tourism business involved, for example, if the business is a:

Hotel Employees can: • Encourage membership in guest loyalty programs • Encourage repeat guest stays • Encourage guests to spend their entire visit at the property (sleep, dine, and use on-site recreation and amenities) • Encourage guests to send family and friends to stay at the property

Transportation Employees can: • Encourage repeat use of services • Encourage recommending services to family, friends, and business associates

Attraction Employees can: • Encourage repeat visits • Encourage guests to promote the attraction to family and friends

Food and Beverage Facility Employees can: • Encourage repeat dining experiences • Encourage guests to recommend dining experience to family, friends, and business associates

78 Chapter 5 – Financial Processes and the Guest Cycle Protecting guest privacy, conducting financial transactions correctly, and increasing guest spending depends heavily on each employee performing his or her job correctly. It also involves employees knowing they are responsible for following all company financial processes and procedures. Employees who combine the various concepts of this chapter during any financial guest interaction will be able to build guest confidence leading to a profitable bottom line. This means employees using the correct processes and procedures will: Show guests they can: • Provide outstanding guest service • Protect guest privacy • Prevent identity theft and payment card fraud Show the company they work for they can: • Be committed to both the guests and their job • Control the financial transaction • Protect guest privacy • Follow company policies • Represent the company culture correctly

Chapter 5 – Financial Processes and the Guest Cycle 79 Apply Your Learning

Section 5.1 1. What is one of the most intricate tasks a hospitality employee might be asked to perform? 2. Why is identity theft a crime? 3. What type of cards are included in the term payment card? 4. Why do you think making a guest feel comfortable discussing financial information is important to a business? 5. What does the term “fraud” mean? 6. Why is it important to prevent fraud from occurring? Section 5.2 1. When in the guest cycle is a guest most likely to go shopping or make other purchases? 2. What kinds of financial transactions might occur during the arrival stage? 3. How might a guest spend money during the departure stage? Section 5.3 1. What does the acronym POS stand for? 2. Is it acceptable for an employee to ask a guest to verbally share sensitive information such as a Social Security Number? Explain your answer. 3. List three types of sensitive guest information employees must protect from theft or fraud. 4. For what illegal purpose could criminals use sensitive guest information? 5. Explain why you believe guests and companies consider the handling of money to be an important employee job responsibility.

80 Chapter 5 – Financial Processes and the Guest Cycle Section 5.4 1. List two employee actions that build guest confidence in the employee’s ability to correctly handle a financial transaction. Explain your answer. 2. What happens in level 5 of the employee engagement cycle? 3. What will guests do if they see an employee is invested, engaged, and committed to his or her job? Explain your answer. Section 5.5 1. Which stage in the guest cycle is a good time for employees to influence guests’ spending? Explain your answer. 2. List three things an employee using approved processes and procedures will demonstrate to guests. Explain why each is important. 3. List the five things an employee using the correct processes and procedures will demonstrate to his or her company. Explain why each is important.

Chapter 5 – Financial Processes and the Guest Cycle 81 Chapter 6 Communication

XXSection 6.1 Introduction XXSection 6.2 Types of Communication XXSection 6.3 Communicating Effectively With Guests Competencies 1. Identify the purpose of implementing effective XXSection 6.4 communication systems. Workplace Etiquette 2. Explain the role of tact and diplomacy in effective communication. XXSection 6.5 3. Identify the various forms of communication. Written and Electronic Communication 4. Explain the reasons for communicating clearly and Skills effectively with guests. 5. Explain the effect of verbal and nonverbal XXSection 6.6 communication on guests and co-workers. Barriers to Effective Communication 6. Explain the importance of office etiquette to the hospitality and tourism industry. XXSection 6.7 7. Identify the rules of written and electronic Interdepartmental Communication communication skills. 8. Identify the seven barriers to effective communication. 9. Identify the purpose of interdepartmental communication methods. 10. Identify the purpose of a Comm Center in hospitality and tourism operations.

82 Hospitality Profile

Nancy Johnson Executive Vice President & Chief Development Officer Carlson Hotels Nancy Johnson, executive vice president, development, Carlson Hotels—the Americas, has served as both vice chair (2011) and chair (2012) of AH&LA. As the executive vice president, Ms. Johnson is responsible for all business development efforts for Carlson Hotels’ select service hotel brands in the Americas including Country Inns & Suites By Carlson® and Park Inn®. Ms. Johnson also serves as brand leader for these same Carlson brands of hotels in the Americas. Additionally, Ms. Johnson is responsible for brand culture; serving as the key contact for franchisee and partner relationships; serving as the brand champion; leading orientation, training and field service; and developing brand systems, processes, and standards.

83 Section 6.1 Introduction

ommunication is essential to the hospitality and tourism industry. In some ways, it is the element C on which most guest-related activities are dependent. Hospitality and tourism employees must be excellent communicators. Because hospitality and tourism focus on the guest experience, the employee communicating directly with guests must develop strong communication skills early in his or her career. It is particularly important for employees to be prepared to answer the same or similar questions repeated throughout each and every day. It is a natural part of the guest service process. Never forget, what is your one-hundredth answer to the same inquiry is the first time for that guest. Develop the ability to always project positive, professional body language that communicates your willingness to provide exceptional guest service. Another aspect of effective communication is to think carefully about feelings involved, both your own and the other person’s. Rushing in and saying the first thing that comes to mind or immediately becoming defensive is not a good tactic in any situation. This is particularly important in the work environment. Using appropriate communication methods with co-workers is just as important as it is with guests. A successful career in hospitality and tourism depends on the use of effective and appropriate communication methods in all situations involving guests and co-workers. What does this mean? It means learning to be tactful with everyone and using diplomacy at all times. A good rule to follow is to choose your words wisely and never speak without thinking first. Read the Guest Not all guests arrive at a destination with the same purpose in mind. The range of reasons behind a guest’s hospitality and tourism choices is wide and varied. Employees should learn to read what a guest may be communicating, not just in words but by their behavior as well. Reading the guest is one skill that industry employees know helps determine what a guest wants or needs through simple observation.

84 Chapter 6 – Communication Examples of Reading the Guest • Is the guest wearing a suit and seems to be in a hurry? Chances are this a business traveler rushing to a meeting or appointment. • Is the guest dressed in dark colors and appears somber and quiet? This guest may be traveling to attend a funeral. • Is the guest wearing bright, fun colors and seems to be very chatty and relaxed? This person is most probably on vacation. By reading the guest, employees are able to match the guest’s mood and situation during each interaction and communicate more effectively. Effective communication skills involve:

Formula for Reflection: Think Before You Speak

Chapter 6 – Communication 85 Section 6.2 Types of Communication

here are three methods of communication. They are written, verbal, erms you T and nonverbal. Written communication can take a variety of forms T from a formal business letter to a brief e-mail. Verbal communication is should know the use of words, phrases, and sentences during a spoken conversation. Nonverbal communication involves things people say without words Jargon—the vocabulary such as body language. peculiar to a particular Let’s take a closer look at each form. industry, profession, or work group.

Written Verbal Nonverbal communication: communication: communication: Use correct grammar, Know your audience Speak without words spelling, and (who are you speaking punctuation with) Can change the meaning of the words Be brief and to the Listen first, speak spoken point second Never invade a Write for easy reading Ask questions for person’s personal clarification space Provide accurate information and facts Repeat the facts back Use eye contact/ to the other person movements carefully Use to keep a record of (could be seen as what is said and done Stay focused on the disrespectful) topic being discussed Send to those who need Use touch carefully to be involved Be respectful and speak (could be seen as in a professional tone of disrespectful) voice Use body language Avoid slang or that always shows unfamiliar jargon respect and value for everyone

86 Chapter 6 – Communication Section 6.3 Communicating Effectively With Guests

uest communication involves providing a variety of information including giving directions, G answering questions, solving problems, and dealing with issues. Learning how to accomplish each one is necessary to anyone wanting a successful career in hospitality and tourism. No matter the position a person holds, effective communication skills are a must. The two main styles of communication skills send a specific piece of information to others known as a signal. This signal can have either a negative or positive effect on what you are attempting to communicate. Consequently, it is important to remember that the signals you send should produce a sense of trust and understanding and avoid causing a sense of distrust or confusion. The hospitality and tourism industry depends on employees able to build a strong sense of trust and caring in guests and co-workers through the strong use of the two communication styles. Impact of Each Communication Style: • Verbal Communication = 38 percent of what others understand when you communicate. ₋₋ Verbal messages—choose your words wisely. ₋₋ Active listening—tells others that you care about what they have to say. • Nonverbal Communication = 62 percent of what others understand when you communicate. ₋₋ Body language (contributes 55 percent of what is communicated nonverbally) ₋₋ Vocal quality (contributes 7 percent of what is communicated nonverbally)

Pineapple Fun Fact

In the 1950’s, Booth One at Chicago’s famous Pump Room restaurant was the most coveted seat by celebrities. This booth was unique because it hosted a dedicated phone line at the table which allowed diners to make overseas calls while eating.

Chapter 6 – Communication 87 Nonverbal Body Language and Vocal Quality Nonverbal communication, or body language, is a vital form of communication. When someone interacts with others, he or she will continuously send wordless signals. These are all known as nonverbal signals and they typically include the gestures we make, the way we sit, how fast or how loud we talk, how close we stand, and how much eye contact we make. Each one sends a strong message to guests and co-workers. Often, the words being spoken get lost because the person’s body language shows he or she is not being sincere. For example, an employee is saying “welcome, we’re glad you are here” to a guest but has a frown on his or her face and is speaking in a harsh tone of voice. Will guests feel welcome or unwelcome in this situation? Most would feel very unwelcome and have a bad first impression about the employee and the business. Verbal and nonverbal actions have to match and send the same message. By making sure both are the same, hospitality and tourism employees can prevent misunderstandings, make certain guests expectations are met, assist fellow co-workers correctly, and solve problems to everyone’s satisfaction. Good use of nonverbal skills involves: • Body language ₋₋ Control your facial expressions ₋₋ Have a friendly, open body posture ₋₋ Use friendly, open hand and arm movements ₋₋ Never cross your arms • Vocal quality ₋₋ Choose your vocal tone, pitch, and pacing carefully ₋₋ Be friendly ₋₋ Be calm ₋₋ Be in control

88 Chapter 6 – Communication Section 6.4 Workplace Etiquette

earning and using the rules of good workplace etiquette is a must for anyone pursuing a career in L hospitality and tourism. Why? Because everyone you meet should be impressed with your level of workplace professionalism and courtesy. Workplace etiquette is an important part of teamwork and requires everyone to be committed to following the rules. Workplace etiquette covers a wide variety of areas with each of equal importance to anyone wishing to be seen as a team player. The rules of good workplace etiquette also help to build a professional image at work. The rules cover a number of areas:

Chapter 6 – Communication 89 90 Chapter 6 – Communication Section 6.5 Written and Electronic Communication Skills any businesses involved in the hospitality and tourism industry M have job tasks that require employees to communicate using written ermsyou and electronic methods. In some job positions, employees may be expected T to use written and electronic communication skills to complete tasks should know such as: recording guest information, making reservations, answering requests, taking care of special needs, and noting other important details. Acronyms—a word formed Developing strong communication skills for use in written and electronic from a sequence of initials letters, notes, messages, and reports is essential for someone building a or groups of letters such as career in the industry. R.A.V.E. Here are some basic rules to follow when writing a document (hard copy or electronic) and composing e-mails. The basic rules are: • Written communication (hard copy or electronic) ₋₋ Use Standard English ₋₋ Follow standard rules of grammar and punctuation ₋₋ Use complete sentences ₋₋ Avoid jargon or slang ₋₋ Define business relatedacronyms ₋₋ Never use text speak such as PIF (paid in full) or HAND (have a nice day) ₋₋ Use easy to understand language • E-mail ₋₋ Remember, this is a business (not personal) e-mail ₋₋ Reply the same day as sender’s e-mail is received ₋₋ Use proper spelling, grammar, and punctuation ₋₋ Avoid text speak such as NRN (no reply necessary) or RRQ (return receipt requested) ₋₋ Never write in all UPPER CASE letters ₋₋ Reply to only the people who need to hear from you ₋₋ Use spell check ₋₋ Never use e-mail for confidential information ₋₋ Delete chain letters immediately

Chapter 6 – Communication 91 Section 6.6 Barriers to Effective Communication

arriers to effective communication cause the smooth flow of information erms you B passing from the sender to the receiver to be disrupted or stopped. T When one person fails to communicate effectively with another person should know in a timely manner, the end result may be problematic. This is especially true of workplace communication. However, the solution is simple. Learn Employee Morale—the how to be an effective communicator both at work and at home. Why? overall outlook, attitude, Because problems resulting for poor communication with guests and co- satisfaction, and confidence workers will have a negative impact on the guest experience, employee that employees feel at work. morale, and the business’s profitability.

92 Chapter 6 – Communication The most common types of barriers are:

Physical barriers—result when competing noise, severe weather, or physical distance between the sender and receiver stop or interfere with the flow of information.

For example: a hotel employee fails to get all the guest’s reservation information due to noise from construction being done in the lobby area.

Language barriers—occur when the people involved in the communication process speak different languages, removing everyone’s ability to understand each other.

For example: the guest only speaks Arabic and the employee only speaks English making it very difficult for them to communicate with each other.

Cultural barriers—result when differences in cultural background cause the sender and receiver to interpret the information differently.

For example: the employee greeting a guest from Africa makes eye contact with him. The guest immediately looks away and the employee now thinks the guest is disinterested when, in fact, the guest’s culture considers making eye contact with non-family members to be disrespectful.

Failure to listen—occurs when a person hearing spoken information uses poor listening skills and fails to hear important details.

For example: the employee is busy reading information on the computer screen and fails to hear the guest make a special request. This results in the guest’s request going unfulfilled.

Lack of information—occurs when the information being communicated is not sufficient to be clearly understood by those receiving it.

For example: the employee very rapidly gives a guest directions to a local attraction and exits before confirming the guest understood the information, leaving the guest still unable to find the location.

Lack of necessary skills—occurs when the receiver lacks the skill or knowledge about the topic being communicated and is unable to perform a task.

For example: An experienced employee asks a new hire to perform a task and walks away to work on something else. However, the new hire has not been trained on this particular task and has no idea how to complete it. Rather than communicating the need to be trained, the new hire chooses to not perform the task.

Incomplete communication—occurs when the receiver of information fails to return information, or feedback, about the outcome of a task or situation back to the sender.

For example: a guest complains to a restaurant manager about a rude server, slow service, and cold food before departing. The manager asks for the guest’s cell phone number and home address and promises to address the problems. Yet, the guest never hears back from the manager.

Any one of these barriers can result in misunderstandings between guests and co-workers. To prevent miscommunication issues with guests, employees need to recognize that a barrier is starting to interfere with the flow of information and take action to prevent it.

Chapter 6 – Communication 93 Section 6.7 Interdepartmental Communication

ost businesses involved in the hospitality and tourism industries have fairly complex structures. M Typically, each business is made up of several different departments which must interact with each other during the course of daily business. This means that interdepartmental communication must pass easily understood information between departments in a timely fashion. This is essential to the smooth functioning of every hospitality and tourism-related business. Failure to communicate clearly and quickly can seriously damage each department’s ability to accomplish job tasks, provide exceptional guest service, and be profitable. Often, this is the most common cause for a business’s lack of success and healthy profits. All employees have to participate in the flow of information from one department to another to ensure a smooth-running business operation and positive guest experience. Some methods to ensure good interdepartmental communication include: • Developing steps for how information should flow between departments • Training the entire staff on the steps to keep information flowing • Regularly meeting and discussing changes to the steps that may be needed For this to happen, every employee must take part and learn to be a strong team player and active user of effective communication tools. This prevents confusion and chaos while creating trust and an organized flow of information between each area.

Sample of Interdepartmental Communication

Housekeeping noti es Front Desk receives Maintenance of guest complaint, TV needed TV repair not working

Front Desk noti es Housekeeping to check on TV Maintenance replaces Housekeeping checks TV with working unit TV and determines and removes broken TV Maintenance noti es it is broken Front Desk and House- keeping of action taken

94 Chapter 6 – Communication Purpose of a “Comm Center” Some hospitality and tourism businesses, such as hotels and theme parks, use a communication hub known as a Comm Center. The purpose of a Comm Center is to monitor, and pass along any communication to ensure all messages and information reach the correct employee or department. It is a great aid to interdepartmental communication since the Comm Center employee is monitoring and noting what information is being sent and the names of the people involved. The employee can step in to assist and make certain the tasks attached to any communication are completed in a timely manner. This is particularly important when the tasks are part of a guest’s special or personal request. In order for a Comm Center to function properly, everyone included in the center’s network needs to be using the same type of communication equipment such as smart phones, two-way radios, or computerized information management systems. This allows everyone to easily communicate with the Comm Center and one another. Exceptional guest service depends on strong communication skills being in use, either through a Comm Center or direct, personal employee communication. But Comm Centers are very useful in large operations such as hotels, car rental companies, and attractions, where the size of the property often makes it difficult for employees to speak face-to-face. A Comm Center also provides a seamless guest experience by guaranteeing the smooth flow of information from one part of the operation to another.

Chapter 6 – Communication 95 Apply Your Learning

Section 6.1 1. Why is it important to think before speaking with guests? 2. List ways to be tactful and explain why they are important when speaking with a guest. 3. How are good listening skills used when speaking with others? 4. Why is taking responsibility an important part of diplomacy? Section 6.2 1. List the three types of communication. 2. List four things written communication should include. 3. List four things verbal communication should include and explain why you believe each to be an important tool of communication. 4. List three ways nonverbal communication can occur and explain the negative impact it could have when speaking with a guest. Section 6.3 1. What type of information is communicated to guests? 2. Why is it important to communicate with guests as clearly as possible? Explain your answer. 3. List the three types of verbal communication styles used with guests and co-workers. 4. List three types of body language used during nonverbal communication. 5. Why is it important that the words spoken match the speaker’s body language? Section 6.4 1. What does the use of workplace etiquette communicate to guests? 2. List three rules of workplace attire etiquette. 3. Should an employee call a guest by his or her first name? 4. What should you do before placing someone on hold?

96 Chapter 6 – Communications Section 6.5 1. Why do hospitality and tourism employees need to have strong written and electronic communication skills? Explain your answer. 2. Why is it important to write using complete sentences? 3. What will the reader think if he or she receives an e-mail written in all capital/upper-case letters? 4. Is it acceptable to use text speak when communicating with a guest or co-worker? Explain your answer. 5. Why do you think a business wants all written communication to use proper spelling, grammar, and punctuation? 6. What are written and electronic communication skills used for by hospitality and tourism employees? Section 6.6 1. What kind of barrier occurs when the receiver lacks the skill or knowledge about the topic being communicated and is unable to perform a task? 2. What could happen when important information isn’t communicated to the person responsible for doing the task? Explain your answer. 3. How could you prevent language from becoming a barrier to effective communication when helping a businessman from Japan rent a car? Explain your answer. Section 6.7 1. What do barriers to effective communication do to the smooth flow of information? 2. What can happen if information doesn’t flow clearly and quickly from one department to another? Explain your answer. 3. What three methods can leaders and employees use to ensure good interdepartmental communication? Explain the purpose of each item. 4. What can happen if employees fail to be strong team players and active users of effective communication tools? Explain your answer. 5. Explain what is the purpose of a Comm Center? 6. Where would a Comm Center be in use? List three places where one could be found. 7. What impact, if any, does a Comm Center have on guest service?

Chapter 6 – Communication 97 Unit 3 Operational Areas

XXChapter 7 Front Office Operations XXChapter 8 Executive Housekeeping Operations XXChapter 9 Facilities Management XXChapter 10 Food and Beverage Services XXChapter 11 Resorts Operations XXChapter 12 Operational Finance

98 Unit Overview

he various segments of the hospitality and T tourism industry are interwoven like a giant web. Each segment is dependent on the others with business flowing from one to the other. For example, hotels depend on airlines and car rental companies to bring guests to a specific destination for a stay. At the heart of any destination are hotels and other accommodations. Restaurants then provide the hotel guests with places to dine and attractions give guests things to do. It is clear to see how hotels tend to be at the center of this activity for any destination and are a major player in the hospitality and tourism industry. A hotel’s organizational structure will depend on its size and the types of guest service offered. The number and type of departments operating within the hotel will also be determined by size and types of service. This unit will focus on the key departmental operations found in most hotels along with how each one contributes to the guest experience and profitability.

99 Chapter 7 Front Office Operations

XXSection 7.1 Introduction XXSection 7.2 Rooms Division Competencies 1. Identify the responsibilities of the front office XXSection 7.3 and the front desk along with the role each The Front Office Manager plays with guests. 2. Explain the structure of the rooms division and XXSection 7.4 the two departments assigned to the division. Front Office Positions 3. Identify the categories under which the front office manager’s responsibilities fall. XXSection 7.5 4. Identify the job positions that report through the front office. The Front Desk Operation 5. Identify the additional areas of responsibility typically performed by the front desk or front XXSection 7.6 office employees. Guests and the Front Desk 6. Describe the key functions of the front desk operation and the nine steps of the registration XXSection 7.7 cycle. The Financial Reporting Cycle 7. Identify the financial processes, and when each should occur, during the financial XXSection 7.8 reporting cycle. Performance Standards 8. Explain the need for performance standards for front desk and front office employees. XXSection 7.9 9. Identify the types of room rate systems used Room Rate Systems by hotels.

100 Hospitality Profile

Hasmukh P. (H.P.) Rama CHA Hasmukh P. Rama obtained his MBA from Xavier University and has been in the lodging industry for almost three decades, beginning with a 40-room independent property in Pomona, California. Mr. Rama founded JHM Enterprises in 1973 and established Greenville, South Carolina, as its home base. JHM Hotels owns and operates 31 hotels with 4,700 rooms in seven states. Several more are under development and scheduled to open in the next year. JHM also owns and operates a five-star hotel in Surat, India. Mr. Rama is a Past Chairman of the American Hotel & Lodging Association (AH&LA). Today, he concentrates on strategic planning, finance and banking, and acquisitions and sales. As part of the Rama family, he is dedicated to achieving Siddhi—perfection. Mr. Rama has served as an advisor to a number of hospitality schools including the board of advisors of Johnson & Wales University, New York University, University of Houston, and the California Polytechnic University. He also served on the board of the Educational Institute and was chairman of AH&LA’s first Education Summit in 1999. Mr. Rama is currently serving on the Experience Lodging Task Force of the AH&LA, the AH&LA’s Millennium Occupancy & Revenue Effort Task Force, and Advisory Board for the University of South Carolina Conference. Most recently, he has served as executive professor in residence at Cornell Hotel School, educating graduate students. He now serves as an industry advisor for the University.

101 Section 7.1 Introduction

he front office operation encompasses all the areas, functions, and activities used to support guest T transactions and services. This includes the front desk, uniformed services, concierge/guest services, transportation, cashiers, and night audit. In the case of small, economy properties, services such as reservations and security may be part of the front office team as well. Leading the entire department is the front office manager (FOM), who is responsible for staff hiring, training, scheduling, team building, and establishing a strong interdepartmental communication system with other operational areas. Relationship building is an essential tool in the hospitality and tourism industry. Building relationships both within and outside the hotel is another important part of the front office employee job responsibility. Developing a network of co-workers in others departments who can be called upon to assist with guest needs and special requests is essential to the front office operation. Additionally, relationship building includes learning about the local community and businesses to create a second network of dining options, attractions, and transportation providers to recommend when guests request help. This is a large part of the type of guest service traditionally associated with the front office. The wants and needs of guests will vary from person to person, so it is important to have more than one option available. Having a network of resources within the local community, along with the skill of reading the guest, makes it possible to offer options most likely to meet the guest expectation.

Green Practices The front desk is the starting point for involving guests in the various green programs in use by the hotel. Hotel green practices include: Reusing Recycling Reducing Bath towels Office paper and Using Bed linens shredded sensitive paperless documents processes in Aluminum and plastic the front office

102 Chapter 7 – Front Office Operations Front office staff interact with all other areas of the hotel such as:

Housekeeping—to obtain room status updates, to communicate guest requests or needs, and to report guestroom complaints needing correction.

Food and Beverage—to make dining reservations, assist with special dietary needs requests, and to obtain changes to available dining options.

Security—to communicate security concerns and to assist during all types of emergency situations.

Engineering—to request guestroom repairs, report emergency repair situations, or assist during severe weather, power failures, or other emergency situations.

Marketing and Sales—for updates on special promotions and offers being communicated to or currently being booked by guests.

Guest Cycle and Front Office Functions

Reservations Uniformed Desk Concierge Interdepartmental Information Cashier Uniformed Service Agents Communication Service

Pre-Arrival Arrival Occupancy Departure

Pineapple Fun Fact

The Ritz Hotel in Paris, France, was the home of famed designer, Coco Chanel, for over 30 years. Today, her suite has been restored in honor of her style and elegance. The rate for one night’s stay in the Chanel Suite will cost a guest more than $10,000 USD.

Chapter 7 – Front Office Operations 103 Section 7.2 Limited Service Rooms Division General Manager

he rooms division consists of two departments, housekeeping and the front office, and is overseen by a rooms division manager. This is usually limited to larger, full-service hotels and resort properties. Front Of ce Housekeeping Food & Building T Beverage Maintenance Leading the front desk is the front office manager while housekeeping is managed by the executive housekeeper. Depending on the size of the hotel, both will report to either the rooms division manager or director. Often, in large, full service resort hotels, the rooms division can be a big and complex operation due to the number of guestrooms being cleaned, types of services and amenities offered, and the high level of guest expectations. In smaller, economy hotels, the rooms division category may not exist at Full-Service all, resulting in the front office and housekeeping areas operating as separate departments with the two management positions reporting to the general manager or property owner. General Manager

Sales and Food & Human Housekeeping Front Of ce Revenue Chief Marketing Beverage Resources Security Director Controller Executive Manager Manager Engineer Director Director Director

Sales Marketing Staff Staff Staff Manager Manager

Houseperson Room Laundry Bar Executive Dinning Staff Supervisor Staff Manager Chef Room Manager

Staff Bartenders Chief Steward Chef Hosts

Servers Steward Head Cook

Dishwasher Cooks Buspersons Food Servers

IT Front Desk Uniformed Reservationist Manager Agent Service

Night Head F&B Purchasing Manager of Auditors Cashier Controller Manager Info Sys

104 Chapter 7 – Front Office Operations Comparison of Property Organization by Size

Limited Service

General Manager

Front Of ce Housekeeping Food & Building Beverage Maintenance

Full-Service

General Manager

Sales and Food & Human Housekeeping Front Of ce Revenue Chief Marketing Beverage Resources Security Director Controller Executive Manager Manager Engineer Director Director Director

Sales Marketing Staff Staff Staff Manager Manager

Houseperson Room Laundry Bar Executive Dinning Staff Supervisor Staff Manager Chef Room Manager

Staff Bartenders Chief Steward Chef Hosts

Servers Steward Head Cook

Dishwasher Cooks Buspersons Food Servers

IT Front Desk Uniformed Reservationist Manager Agent Service

Night Head F&B Purchasing Manager of Auditors Cashier Controller Manager Info Sys

Chapter 7 – Front Office Operations 105 Section 7.3 The Front Office Manager

he front office manager is responsible for the smooth functioning T of the front desk, bell services, concierge, and other front office Terms you operations. The four skills the front office manager must master are should know planning, organizing, leading, and evaluating all front office operational and financial areas. Each skill will make certain that every aspect of the Forecasting—the process front office operation is thought of, planned for, and accomplished by the used to predict the sales manager. This will guarantee a seamless guest experience and a positive, of guestrooms and the rate organized work environment for employees. that should be charged for a The front office manager’s responsibilities fall into several categories: specific time of year. It helps front office managers to know Guest service—oversee the level of guest service to ensure when to raise or lower room employees meet and exceed guests’ expectations and other rates to maximize sales. established service standards.

Average Daily Rate (ADR)— People management—hire, train, and supervise front office an occupancy ratio derived by employees to meet the property’s performance standards, policies, dividing net rooms revenue by and procedures. the number of rooms sold. Leadership—provide day-to-day guidance, supervision, and Revenue Per Available direction for all front office employees. Room (RevPAR)—a revenue management statistic that Revenue management—set financial goals through forecasting measures the revenue- occupancy, average daily rate (ADR), revenue per available room generating capability of a (RevPAR), and other statistical formulas used to help keep the hotel. front office operation profitable.

Green Practices— Green practices—use environmentally friendly buildings, environmentally friendly equipment, processes, and techniques that help reduce energy and ecologically responsible consumption, encourage recycling, reduce waste, save water, decisions and processes that and prevent pollution. guarantee natural resources will continue to be readily Disaster planning and management—work with security, available in the future. department managers, and the general manager in the planning and management of incidents such as power failures, severe weather, floods, fires, and terrorism, to ensure guest safety and property disaster preparedness.

106 Chapter 7 – Front Office Operations Payment Card Industry (PCI) Compliance A large portion of all guest financial transactions will be done using credit or debit cards. Consequently, the front office manager must provide employes with required compliance training to protect sensitive payment card information from being illegally obtained and used for criminal purposes. The payment card industry can refuse to allow any business permission to accept credit or debit cards as a form of guest payment for failing to be in compliance with the industry’s required standards.

Green Practices

Shredding sensitive documents and guest records before sending the materials for recycling is a vital front office task. It protects guests and the property against the potential for identity theft and fraud.

Chapter 7 – Front Office Operations 107 Section 7.4 Front Office Positions

he front office manager is responsible for hiring, training, and supervising a variety of entry-level T positions. Positions typically under the direction of the front office manager are the front desk representatives, uniformed services, concierge, night auditor, reservationist, and cashier. Here are some of the specific duties and tasks each position will be expected to perform.

Front desk representative—assists guests throughout all stages of the guest cycle and acts as the main representative to guests for the property, maintains guest folios in the Property Management System (PMS), performs bill settlement, and provides guest service.

Uniformed services—assists guests with curbside baggage service, guest vehicle parking, and guest transportation services. Includes positions such as bell attendant, door attendant,alet v parking attendant, and transportation attendant. In some hotels, depending on the size, the concierge may also fall under this category.

Concierge—assists guests with arranging in-hotel activities and/or making reservations, providing information, giving directions, and obtaining transportation for offsite attractions, facilities, or services.

Night auditor—checks front office accounting records for accuracy and, on a daily basis, summarizes and compiles reports about the various aspects of the hotel’s financial performance.

Reservationist—assists guests, travel agents, and third-party vendors with booking hotel guestrooms. Creates and maintains reservation records and generates reservation numbers through some type of central reservation office (CRO).

Cashier—posts revenue center charges to guest accounts, balances guest accounts, and performs a variety of banking services for guests; typically found only in large full-service properties and resorts.

108 Chapter 7 – Front Office Operations Because front office positions have the largest amount of direct guest contact, it is important the positions be filled with individuals who have these five qualities:

Front office managers tend to look for, and hire, people with these efiv qualities. Why? Because new employees must have these five qualities in order to learn tasks faster, become engaged with guests easier, and blend with the front office team very quickly. Additionally, the level of guest service will be improved by use of these five qualities and ultimately result in greater guest satisfaction.

Chapter 7 – Front Office Operations 109 Section 7.5 The Front Desk Operation

he front desk acts as the heart of the hotel. It is the most frequently visited part of a hotel and is T typically the first and last place a guest sees during a stay. The front desk is often referred to as a hotel’s command post because of the amount of business activities that happen in this department. Why? Because, the front desk is where guests check in, check out, ask questions, seek help, and pass continuously throughout a stay. Consequently, to guests, the front desk is the hotel and the area they believe exists solely for the purpose of seeing to their needs. However, to those who work the front desk, it has many other equally important purposes required for the smooth running of the property. This makes it necessary for employees to use their training and organizational support in order to balance guest expectations with front desk operational needs. The front desk is responsible for:

• Welcoming guests to the property Guestrooms • Providing check-in services to guests • Registering guests and confirming room rates • Establishing a method of payment for the guestroom and bill settlement housekeeping • Assigning guestrooms and issuing food & key cards Beverage • Informing guests about their room location and special hotel facilities, and answering security Front Desk questions about the property and the surrounding community Engineering • Obtaining uniformed services for guests • Acting as a cashier • Providing concierge services • Maintaining guest folio information in the Property Management System (PMS) • Providing guest assistance with special needs, valet/bell services, and other guest requests • Providing check-out services to guests • Accepting final bill settlement from guests

110 Chapter 7 – Front Office Operations Traditionally, the front desk handles seven key functions. They are reservations, registration, room and rate assignment, guest services, room status, record keeping in the Property Management System (PMS), and bill settlement. However, the size and type of the hotel will determine exactly how front desk duties are organized. Large properties will divide and assign tasks to specific job positions while a small property will expect employees to be capable of performing all front desk tasks. Two primary operational areas handled by the front desk are reservations and registration. Reservations Most reservations today occur online using the property’s own reservation system, the brand hotel’s central reservation office (CRO), or a third-party site such as Expedia or Orbitz. Online reservations manage the booking process for the majority of guests nowadays, but that heavy use of the Internet doesn’t mean that the front desk won’t still be expected to handle a reservation. All front desk employees must be prepared to handle guest reservations by phone, e-mail, or in person when a guest walks in the door wishing to book a room for that night. Front desk employees must be capable of handling: • Two types of reservations ₋₋ Guaranteed reservations which require one of the following: ₋₋ Prepayment ₋₋ Credit/debit card on file Guestrooms ₋₋ Advance deposit ₋₋ Travel agent guarantee ₋₋ Corporate guarantee ₋₋ Voucher ₋₋ Non-guaranteed reservations which occur when: ₋₋ No form of prepayment, deposit, or voucher are received at time of booking housekeeping During the reservation process, front desk employees must also: food & Beverage • Determine guestroom availability, date of stay, and room rate • Create the reservation record/guest folio security Front • Provide the guest with confirmation of reservation Desk • Explain the property’s cancellation policy Engineering • Provide updated reservation reports to management

Chapter 7 – Front Office Operations 111 The Registration Cycle The registration cycle is made up of nine steps. The cycle starts before the guest arrives and ends once the guest has departed the property. Each step builds on the previous one and should be accomplished in the correct order. This will ensure the front desk representative completes every task correctly. The nine steps are: 1. Preregistration—collects guest’s personal data, creates guest folio, room rate, guaranteed reservation deposit, and method of payment information. 2. Registration Record—collects or confirms guest’s personal data such as name, address, phone number, company name, and e-mail address. 3. Room and Rate Assignment—uses guest preference information along with current PMS data about room status, room rate, room location, and reservation blocks. 4. Method of Payment—determines how the guest plans to pay at the end the stay. 5. Post Charges to Guest Folio—occurs for every night of the guest’s stay and when a purchase is charged back to the guest’s room to be paid during bill settlement. 6. Verify Guest’s Identify—follow property policy for requesting a guest present a government authorized ID card that proves they are who they claim to be. 7. Issue Key Cards—issues key cards to guest for use during his or her stay. 8. Fulfill Special Requests—occurs when guests have specific requests that the front desk must attempt to satisfy. 9. Processing Additional Guest Charges/Fees (parking, Wi-Fi, resort fee, etc.)—notifies guests of additional costs that will be posted the guest folio to be paid during bill settlement.

Preregistration Processing Additional Guest Registration Charges/Fees9 1 Record2 Ful ll Room and Special Rate Requests Guest Registration Assignment 8 Cycle 3

Issue Key Method of Cards Payment 7 Verify Post 4 Guest’s Charges to Identify6 Guest Folio5

112 Chapter 7 – Front Office Operations Section 7.6 Guests and the Front Desk

ever forget that to guests all hallways lead to the front desk, and it will be the first place they turn N to for assistance. Why? Because it the most visible location at any hotel property and the one place guests pass repeatedly throughout a stay. This means that a lot of additional duties will often fall to the front desk employees to handle. Those extra duties will depend on the size and type of hotel but typically will include:

Providing Guest Comment Cards—provides a way for a guest to express his or her opinion (positive or negative) about the property, employees, and guest service during a stay. Front office managers should read and send every card to the department head or general manager for processing.

Maintaining the Reader Board—informs guests (especially those using meeting or convention space) what, where, and when things are happening at the property that day.

Accommodating Special Needs Requests—accepts and processes special needs requests to the appropriate department for fulfilling.

Providing Guest Recovery—handles guest complaints by finding ways to recover the negative guest situation. The goal is to convert the guest’s dissatisfaction into satisfaction with the situation.

ADA

The Americans with Disabilities Act (ADA) requires properties to make reasonable accommodation for guests with special needs.

Chapter 7 – Front Office Operations 113 Section 7.7 The Financial Reporting Cycle

uring the guest cycle, a number of financial processes occur that are a primary responsibility of D the front desk representatives and manager. It is crucial that each financial process happens at a precise time when it will maximize sales and keep the property profitable. If a front desk employee and manager fail to complete any one of the financial processes on time, it can have a major effect on the bottom line. Financial Reporting Cycle

Pre-Arrival Arrival Occupancy Departure (Reservations) (Registration) (Check-Out and Settlement) Assign room rate Secure guest’s form of Confirm guest’s financial Settle guest’s bill Establish guest folio payment transactions, such as: ₋₋ Post final or late Accept room guarantee/ ₋₋ Room rate charges deposit ₋₋ Other charges ₋₋ Process guest’s ₋₋ Guest credit limit payment Conduct night audit ₋₋ Post final payment ₋₋ Post room and tax rate for to PMS all occupied guestrooms ₋₋ Provide guest with in Property Management receipt of final bill System (PMS) ₋₋ Verify non-room charges have been posted ₋₋ Monitor guest account balances ₋₋ Post adjustments or allowances to guest folios ₋₋ Balance front desk’s cash bank ₋₋ Close current day’s sales ₋₋ Prepare for posting of next day’s transactions Complete front office accounting functions, such as: ₋₋ Collect and post all payments received to guest folios ₋₋ Update guest billing in PMS

114 Chapter 7 – Front Office Operations Section 7.8 Performance Standards

he secret to an efficient operation is the use of performance standards. Performance standards T clearly state what job skill and tasks an employee must know, define how each skill or task is to be performed, and provide a consistent method of measuring how well employees perform each one. Performance standards must be:

Specific—applied to a specific task and the methods, tools, or processes for completing it correctly

Observable—observed by a manager while the employee performs the task

Meaningful—required as part of the employee’s job performance standard

Measurable—assessed for level of successful completion by the employee

Performance standards should be applied when assessing an employee’s ability to:

Chapter 7 – Front Office Operations 115 Annual Performance Review Most companies have some type of annual evaluation process that requires the use of a simple to use tool for observing an employee while working. Typically, this tool is a checklist that allows the manager to score the employee’s level of performance and is used during the month leading up to the yearly anniversary of the employee’s hiring date. The score is based on how well the employee meets, exceeds, or fails to meet a task’s performance standard. This annual review is also a good way to identify if an employee needs additional training to help improve his or her job performance to the standard expected by the property. Sample Task Checklist 1 2 3 4 Exceeds Meets Fails to Meet Did Not Expectation Expectation Expectation Observe Property Knowledge Guestroom Types Occupancy Terms Room Status Terms Reservation Types On-the-Job Use of Property Management System (PMS) Clearly Communicates Prepares for Check-Ins Check-In Guest Keys Processes Room Change (PMS) Uses Cash Bank Settles Guest Accounts (PMS) Processes Guest Check-Out (PMS) Guest Service Explains Guestroom Features Explains Property Facilities Assists with Dining/Activity Reservations

116 Chapter 7 – Front Office Operations Section 7.9 Room Rate Systems

ow the decision is made on the type of room rate system to be adopted by a hotel depends on H many variables: • Who are the guests we are trying to attract to this property? • What will the guest be willing to pay? • What costs would the guest want to see bundled together into one price? • Will this type of room rate system be profitable? Based on the answers to these and many other questions, the hotel will typically select one of the following room rate system options:

American Plan (AP)—cost of guestroom includes three meals per day.

Modified American Plan (MAP)—cost of guestroom includes two meals per day.

European Plan (EP)—cost of guestroom and meals are separate charges each day.

All-Inclusive Resort—cost of guestroom includes all meals, beverages, and activities during stay.

Chapter 7 – Front Office Operations 117 Apply Your Learning

Section 7.1 1. Why is relationship building an essential part of the front office employee’s job? Explain your answer. 2. Why should front office employees work to build a network of contacts with local businesses? Explain your answer. 3. List one of the areas the front office must interact with and give an example of the type information being shared between the two departments. 4. In what step of the guest cycle would a guest most likely use concierge services? 5. During which step would uniformed services be the most involved with guests? Section 7.2 1. Who does the front office manager report to at a large, full-service resort property? 2. Why would the front office manager report to the general manager at a small, rooms-only hotel? Explain your answer. 3. Why do you think the housekeeping and front office areas are both assigned to the rooms division? Explain what you think they have in common and why they need to work closely with one another. Section 7.3 1. Explain why forecasting is an important part of the front office manager’s job duties. 2. List the four skills every front office manager must use. Explain why each one is important. 3. List the six categories under which a front office manager’s responsibilities fall. 4. What is measured by RevPAR and why do you think it is important for a hotel to know this information? Explain your answer. 5. Why do you think the front office manager needs to participate in emergency planning? Explain your answer. Section 7.4 1. List the six job positions that report to the front office manager and briefly describe the job responsibilities of each position. 2. List the five qualities front office employees need to have. 3. Why do front office managers prefer to hire people with the efiv qualities you just listed? 4. What is a front office manager responsible for doing with entry-level employees? 5. Is the level of guest service improved when front office employees use good listening and communication skills? Explain your answer.

118 Chapter 7 – Front Office/Desk Operations Section 7.5 1. Why is the front desk considered the heart of the hotel? 2. How do guests perceive the role of the front desk? 3. List five front desk employee responsibilities. 4. List the seven key functions handled by the front desk. 5. Explain what the acronym PMS stands for and what a front desk employee will use the PMS to accomplish. 6. List the nine steps in the reservation cycle and discuss the purpose of each. 7. Can the steps of the reservation cycle be switched around? Explain why you believe that to be true. Section 7.6 1. What is the goal of providing guest recovery? 2. What is the purpose of a reader board and how do you believe it could improve guest service? 3. If a guest is really happy about their stay, should the front desk ask him or her to fill out a guest comment card? Why do you believe this? 4. What does the American’s with Disabilities Act (ADA) require hotels to provide to guests? Explain why you believe it is important for front desk employees to know. Section 7.7 1. If a front office employee failed to assign a room rate while taking a guest reservation, what could happen during the departure stage of the financial reporting cycle? Explain your answer. 2. What important financial information must be obtained during the arrival stage of the cycle and why is it necessary to have? Explain your answer. 3. What is the purpose of a night audit and during what stage of the cycle should it occur? Explain your answer. 4. Discuss the four parts of the guest bill settlement process during the departure stage of the cycle. Explain why you believe each one is a necessary part of the process. Section 7.8 1. What is the purpose of having performance standards? 2. List the four things each performance standard must have. 3. List the five employee abilities the performance standards are used to measure. 4. What method do front office managers use to determine if an employee is meeting the job’s performance standard? 5. Discuss the purpose of an annual performance review and explain why using a task checklist is a useful tool for rating employees. Section 7.9 1. Explain the American Plan of room rates system and what a guest can expect from this type of room rate system. 2. What is included in the European Plan? Explain why guests would be attracted to this type of room rate system. 3. Why would a teacher planning the senior trip for a group of high school students prefer to book an all-inclusive plan? Explain your answer. 4. What does the acronym MAP stand for and what is included in a MAP room rate system?

Chapter 7 – Front Office Operations 119 Chapter 8 Executive Housekeeping Operations

XXSection 8.1 Introduction XXSection 8.2 The Executive Housekeeper XXSection 8.3 Competencies Guestroom Cleaning Basics 1. Identify the functions and responsibilities of the executive housekeeper along with how to XXSection 8.4 apply productivity and performance standards to Housekeeping Positions housekeeping positions. 2. Identify the correct process for guestroom cleaning, room inspections, and reporting of XXSection 8.5 maintenance issues. Inventory 3. Identify job positions reporting to the executive X housekeeper. XSection 8.6 4. Describe how to calculate, track, order, and Managing Inventories issue recycled and non-recyclable inventory items to maintain par numbers. XXSection 8.7 5. Identify the formulas used to manage Linen Inventory housekeeping inventories and the purpose of each. XXSection 8.8 6. Identify par levels and the role of the laundry Housekeeping Green Practices cycle in storing, issuing, and tracking for the linen inventory. 7. Identify common green practices used by the housekeeping department.

120 Hospitality Profile

Mit Shah Senior Managing Principal and CEO Noble Investment Group At the age of ten, Mit Shah was introduced to the hotel business when his father bought his first motel. Mr. Shah spent his youth doing odd jobs around that motel and the two additional hotels his father had acquired plus the various apartment complexes he had invested in. Today, Mr. Shah is the CEO of Atlanta-based Noble Investment Group, which he founded in 1993 as an organizational platform for making additional investments in the lodging and hospitality real estate sector. Under his direction, Noble Management Group currently manages more than 10,000 hotel and resort guestrooms throughout the United States, many of which are affiliated with Marriott, Hyatt, Starwood, Hilton, and InterContinental Hotels Group.

121 Section 8.1 Introduction

hen a guest arrives at a hotel, he or she wants to be greeted by a erms you W clean, comfortable, and safe place to stay. The majority of these T requirements are under the control of the executive housekeeper and the should know housekeeping staff. Each task performed by the executive housekeeping team is critical to the smooth daily operation of the property. Amenities—services or items Typically, the housekeeping department has the largest number of offered to guests or placed in employees and is the most costly to operate. This is due to housekeeping’s guestrooms for convenience responsibility for keeping public spaces, front of house areas, meeting and comfort at no extra cost rooms, banquet rooms, and back of house areas clean, fresh, and attractive. such as soap, shampoo, and This means guestroom attendants and public space cleaners require the stationery. use of a variety of equipment and supplies for cleaning. Room attendants are also expected to provide guestrooms with clean linens, bath towels, and amenities, all of which are consumable goods that need replacing on a regular basis.

122 Chapter 8 – Executive Housekeeping Operations Pineapple Fun Fact

Hotel towels are the most commonly stolen item. It is believed that one in five people have taken a towel from a guestroom. The AH&LA estimates the hotel industry experiences a loss of more than $100 million USD per year.

Chapter 8 – Executive Housekeeping Operations 123 Section 8.2 The Executive Housekeeper

he executive housekeeper is responsible for the efficient operation of Terms you T the housekeeping department by properly using available resources know that include staff, money, time, work methods, materials, energy, and should equipment. At larger, full-service hotels, the executive housekeeper will have a Assets—hotel equipment, staff of supervisors who directly oversee the guestroom attendants and machinery, or computer other line positions during daily operations. This will allow the executive systems that are considered housekeeper to focus on the department’s overall performance. However, both valuable and necessary at small rooms-only properties, the executive housekeeper will be the for the smooth operation of only supervisor/manager in the department. the property. Other areas of responsibility for the executive housekeeper are:

Budget writing—developing a yearly operational budget.

Coordinating—overseeing all housekeeping activities, schedules, and work assignments.

Staffing—interviewing, selecting, hiring, training, and scheduling employees.

Directing—focusing employee activity on departmental goals by supervising, motivating, training, and disciplining staff.

Controlling—developing and implementing processes and procedures that protect hotel assets such as keys, linens, equipment, machines, and cleaning supplies from damage or theft.

Evaluating—measuring how well planned goals, employee performance, departmental productivity, and financial goals are achieved.

124 Chapter 8 – Executive Housekeeping Operations Housekeeping Performance and Productivity Standards The executive housekeeper is responsible for establishing housekeeping standards in two areas: performance and productivity. But what is the difference between the two standards? Simply put, performance has to do with how well work is accomplished and productivity with the amount of time it takes to complete tasks. The productivity standard is particularly important for housekeeping employees to be capable of achieving. Why? Because housekeeping staff must complete guestroom cleaning between the time departing guests leave and when arriving guests check in. It is important to remember that guests are promised check in and out times when making a reservation which requires delivering on that promise. Consequently, housekeeping employees have to work as efficiently and effectively as possible.

Housekeeping Standards

Performance • Clean assigned areas to meet property standards. • Carry out all cleaning tasks consistent with property standards. • Use correct cleaning products, equipment, and methods when cleaning. Productivity • Carry out all cleaning tasks within assigned time limits. • Follow cleaning schedule to ensure cleaning occurs at assigned date or time. • Follow departmental best practices guidelines.

Chapter 8 – Executive Housekeeping Operations 125 Section 8.3 Guestroom Cleaning Basics

he guestroom is the main product a hotel T property sells. Guests expect to be assigned a clean and comfortable guestroom, making the condition of the guestroom a critical part of exceptional guest service. Guestrooms must meet the guest expectation of staying in a clean, safe, and pleasant hotel property. The responsibility for meeting this expectation falls to the housekeeping department. To maintain guestrooms to meet a specific standard of cleanliness, comfort, safety, and appearance, guestroom attendants must follow a series of detailed procedures for room cleaning. Most housekeeping departments use a systematic approach to cleaning that will guarantee all guestrooms meet the property’s cleaning and guest service standards.

126 Chapter 8 – Executive Housekeeping Operations Guestroom Cleaning Sequence There is value and logic behind how cleaning activities are organized. Following a planned routine will save time and ensure a correctly cleaned room. The best way to explain the following cleaning tasks is from the perspective of the room attendant. The sequence of guestroom cleaning occurs in three steps:

Step 1—Prepare to Clean • Load housekeeping cart with: ₋₋ Cleaning supplies ₋₋ Linens ₋₋ Towels ₋₋ Cleaning equipment ₋₋ Room amenities Step 2—Clean Guestroom • Knock, identify self as housekeeping, and enter guestroom. • Turn on lights, open drapes, reset thermostat, and check TV. • Strip and remake bed. • Clean furniture, surfaces, and fixtures. • Dust, vacuum, and empty trash. • Clean bathroom. • Restock amenities. Step 3—Check Guestroom Condition • Recheck room for items/area not cleaned. • Check for and report any maintenance issues. • Report cleaned room status to manager. • Exit guestroom and secure locked door.

Chapter 8 – Executive Housekeeping Operations 127 Room Inspection Room inspections are a critical part of the overall process of guestroom cleaning. Room inspections are meant to catch any problems that may have been overlooked during cleaning. Exceptional guest services dictate that guests should never have to complain about being given a dirty guestroom. Room inspections make certain that all guestrooms are consistently cleaned the same way since every guest deserves to stay a properly cleaned and stocked guestroom. Remember, no one, including you, wants to stay in a dirty hotel room. Depending on the size of the hotel, inspections are typically conducted by a housekeeping manager. Using a checklist, the manager will inspect rooms based on the property’s inspection schedule to determine if the room has been cleaned and prepared to receive guests to the hotel’s standards. When complete, the room inspection checklist will serve as an inspection report containing notes about the: • Quality of guestroom cleaning • Condition of furniture, fixtures, and equipment • Appearance of the ceiling and walls • Condition of the carpet and other floor coverings • Cleanliness of window interiors and exteriors • Preparedness of guestroom for guest check-in The last actions in the room inspection process are to: • Report room status to front desk: occupied, vacant, or out-of-service. • Release vacant, clean guestrooms back into the property’s inventory.

128 Chapter 8 – Executive Housekeeping Operations Reporting Guestroom Maintenance Issues Housekeeping employees are expected to look for and report damaged or broken guestrooms items. This can range from a TV that won’t turn on to leaking bathroom pipes to scratched furniture. Once again, the goal is to make certain guests check in to a room where everything is in good repair. This is another major source of guest dissatisfaction at hotel properties. Working Together: Housekeeping and Facilities Maintenance Departments The housekeeping and maintenance departments must work together to make certain guestrooms are properly maintained. This is accomplished by setting up an effective communication system between the two departments so each knows what the other needs. What are those needs? Maintenance needs to know what to repair and housekeeping needs to know when the work is complete. The front desk often needs to be included in this communication loop as well since they are responsible for room assignments. Interdepartmental Communication of Guestroom Repairs • Step 1—Guestroom attendants act as the problem spotters and report any items in a room needing attention from facilities maintenance engineers. • Step 2—Facilities maintenance engineers check regularly for housekeeping reports requiring their attention. • Step 3—Facilities maintenance engineers schedule routine preventive maintenance inspections of guestrooms and public spaces to look for repairs requiring a room or area to be taken temporarily out-of-service, and notifies front desk and housekeeping when repair is scheduled to occur.

Chapter 8 – Executive Housekeeping Operations 129 Section 8.4 Housekeeping Positions

he types of housekeeping positions found at each hotel will depend on the size of the hotel, the T types of services offered, and the type of guest experience being promoted. Based on these key characteristics, the executive housekeeper could be responsible for managing the following positions:

Housekeeping Manager—Supervises, trains, and inspects the job performance of assigned employees to ensure that all procedures are completed to the hotel’s standards. Assists where necessary to ensure optimum service to guests.

Floor Supervisor—Supervises, trains, and inspects the performance of assigned room attendants, turndown attendants, and floor attendants, ensuring that all procedures are completed to the hotel’s standards.

Guestroom Attendant—Cleans guestrooms to the hotel’s established standards of cleanliness. Expected to report any maintenance issues and handle guest special requests or complaints. Must ensure the confidentiality and security of all guestrooms.

Turndown Attendant—Provides evening turndown service of the guest’s bedding in preparation for a night’s sleep while completing any additional cleaning of guestrooms, if needed, ensuring the hotel’s established standards of cleanliness. Expected to report any maintenance issues and handle guest special requests or complaints. Must preserve the confidentiality and security of all guestrooms.

Floor Attendant—Provides linen supplies for room attendants and stocks guestroom floor closets. Delivers and retrieves items requested by guests and the floor supervisor.

Laundry Manager—Supervises, trains, and inspects the performance of assigned laundry attendants ensuring that all procedures are completed to the hotel’s standards.

Laundry Attendant—Processes all soiled hotel bed linens, terry, and food and beverage table linens by operating all laundry/dry cleaning machinery in accordance with the hotel’s standards. Cleans, presses, and finishes staff and guest garments if required.

130 Chapter 8 – Executive Housekeeping Operations Linen Room Attendant—Receives dirty linen, issues clean linen and service towels to hotel personnel. Inspects condition of linen, removes damaged linen from service, and requests replacement items.

Public Space Supervisor—Supervises, trains, and inspects the performance of the public space cleaners to ensure that all public areas meet the hotel’s standards.

Public Space Cleaner—Cleans and maintains all furnishings and surfaces in public areas to meet the hotel’s standards of cleanliness. Employee Schedules The executive housekeeper oversees the employee scheduling process for the various housekeeping positions and shifts. Scheduling the right number of employees to guarantee all job positions are covered, and the guest experience will meet the property’s standards, requires a lot of thought. Of course, this is true of all areas in a hotel but the housekeeping schedule needs to be particularly accurate. Why? Because cleaning guestrooms between the time guests check out and check in or go out for the day requires an organized team of housekeeping employees to accomplish. The responsibility for planning the number of employees needed to finish all housekeeping tasks correctly falls to the executive housekeeper. Hotels must be staffed by dependable hospitality professionals who realize their important contribution to the property and its guests each day. Once a schedule has been written and posted by the executive housekeeper, it is the responsibility of every employee to check it to make sure they know when to be at work. Often, it is necessary for the schedule to be changed. That makes it necessary for employees to check the schedule at the end of shift each day so they know when and where to be the next day. The schedule will show the employee:

Dates—the calendar days they are scheduled to work

Shift times—the time to arrive and depart each day

Work assignment—the location within the hotel and job tasks to be performed each day

If every employee on the schedule arrives on time, dressed to work, and prepared to complete job assignments to the very best of their ability, the hotel, its guests, and employees will benefit.

Green Practices Hotels used to change and launder linens each day. However, new green practices in hotels are educating and encouraging guests to indicate to housekeeping that last night’s towels may be reused and the linens may remain on the bed for another night.

Chapter 8 – Executive Housekeeping Operations 131 Section 8.5 Inventory

he executive housekeeper has to provide employees with the you T equipment, linens, amenities, and cleaning supplies to properly Terms maintain guestrooms and other guest areas. This means he or she is should know responsible for maintaining the inventory of various items to guarantee an efficient housekeeping operation. Inventories must be kept at the correct Par—the number of each level or amount needed to ensure an efficiently run housekeeping operation. recycled inventory item This means executive housekeepers must make certain all inventories that needs to be on hand are kept at a par level. Par refers to the number of items that must be on to support daily, routine hand to support daily, routine housekeeping operations. For example, housekeeping operations. a property has a total of 250 beds, housekeeping will need to maintain a par of 250 sets of sheets in inventory in order to have sufficient stock for one day’s operation. Maintaining a par level of items needed for daily operations is also true of other operational areas such as maintenance, front office, and food and beverage. Inventory control involves using an effective purchasing system along with control mechanisms that allow inventory to be issued and tracked so the executive housekeeper knows that correct amount of needed stock is on-site at all times.

132 Chapter 8 – Executive Housekeeping Operations How par levels are determined depends on the type of inventory. The executive housekeeper is responsible for two types of inventories:

Recycled Inventory—Includes items that can be cleaned and reused such as linens, towels, and equipment. Linens are the most important recycled inventory item and next to labor cost, the highest expense the executive housekeeper must manage. One par for linens is equal to the total number of each linen type needed to outfit all guestrooms one time.

Non-recyclable Inventory—Includes items that are consumable goods such as soap, shampoo, and toilet paper. Since non-recyclable items are used up, inventory levels are closely tied to the purchase ordering system. A purchase ordering system for non-recyclable inventory items establishes a par number that is based on two figures—a minimum quantity and a maximum quantity. • Minimum Quantity—the smallest number of purchase units that should be in stock at any time. • Maximum Quantity—the greatest number of purchase units that should be in stock at any time. This maximum quantity must be consistent with available storage space and must not be so high that large amounts of the hotel’s cash resources are tied up in an overstocked inventory. The shelf life of an item also affects the maximum quantity of purchase units that can be stored. Comparison of Par Stock and Actual Usage for Guest Amenities

Guest Supplies Par Stock For One Month

Potential Usage Per Forecasted Number Item Occupied Room X of Occupied Rooms= Par Stock Required Shampoo 1.0 X 450 = 450 Bathfoam 1.0 X 450 = 450 Small Soap 1.0 X 450 = 450

Actual Usage For One Month

Potential Usage Occupied Potential Actual Item Per Room Rooms Consumed Consumed Variance Shampoo 1.0 X 450 = 450 370 <80> Bathfoam 1.0 X 450 = 450 513 63 Small Soap 1.0 X 450 = 450 752 302

Chapter 8 – Executive Housekeeping Operations 133 Monitoring Inventory The executive housekeeper can monitor the actual use rates for each product kept in inventory by recording both purchases and the issuing of cleaning supplies. The best methods for tracking inventory are:

An Automated Inventory Control System—Using bar codes or radio-frequency identification (RFID) tags, all inventory items are scanned when received into inventory, issued to employees for use, and returned back into storage. The system tracks all items and maintains an updated inventory count at all times. This reduces the risk of loss due to theft or human error.

A Monthly Inventory Count—Involving a manual count of every inventory item that is currently on the storage shelves at the end of each month. Using an inventory form, these items are listed as beginning inventory column for the next month. The total—or ending inventory amount shows the actual number of each item for the month’s ending count. This number is next compared to the amount of stock that is expected to be in the ending inventory. The difference between the actual quantities on hand and the amounts expected to be on hand is known as a stock variance.

Sample Linen Count Sheet

Inventory Count Sheet Guestroom Linens

Name Date Floor

Item Closet Cart 1 Cart 2 Cart 3 Pillowcases King-size Sheets Queen-size Sheets Twin Sheets Bath Mats Bath Towels Hand Towels Washcloths

If the amount on hand is less than expected then a loss of stock has occurred and should be investigated. If the amount is higher than expected then somewhere stock has either been incorrectly counted or marked as issued when it in fact it was not. The executive housekeeper should act on information gathered during inventory time and put in place better ways of controlling the storage, issuing, and record keeping for inventory items.

134 Chapter 8 – Executive Housekeeping Operations Section 8.6 Managing Inventories

variety of cleaning supplies is needed for the housekeeping erms you Adepartment. Basic cleaning supplies include all-purpose cleaners, T disinfectants, germicides, bowl cleaners, window cleaners, metal polishes, should know furniture polishes, and scrubbing pads. Vendor—an outside company Cleaning Supplies and Guestroom Amenities that provides goods or services to the hotel. Purchasing Cleaning supplies and guestroom amenities fall into the non-recyclable Lead-Time Quantity—the inventory group with par levels closely tied to how quickly these items number of purchase units are consumed. The minimum quantity for any given cleaning supply consumed between the time item is determined by how long it takes for a fresh supply to be ordered that a supply order is placed and received from an outside vendor. This is known as the lead time and the time that the order is quantity. Hotels must maintain enough stock to prevent running out due actually received. to a lengthy reorder time period. This is known as maintaining a safety stock level. This means stock levels should never fall below this amount. Safety Stock Level—the number of purchase units Formula for Safety Stock that must always be on hand for smooth operation in the event of emergencies, Product Reorder Safety spoilage, unexpected Daily X Lead Time = Stock delays in delivery, or other Consumption (in days) Level situations.

Chapter 8 – Executive Housekeeping Operations 135 Reorder Point Terms you Continuous monitoring of stock will ensure each item never falls know below safety stock levels. Then, when current inventory levels are should approaching the amount considered to be the safety stock level, and taking into consideration the amount of lead time required for reorders, Reorder Point—the level of the executive housekeeper will be able to determine when the reorder inventory when a reorder of point (ROP) has been reached. inventory items must occur. Formula for Reorder Point

Safety Normal Reorder Consumption Stock + = Point Level During Lead (ROP) Time

Sample of Calculation of Safety Stock and Reorder Point Levels Housekeeping must have one bar of bath soap in stock for every guest bathroom each day. The hotel has 250 guest baths and the executive housekeeper knows it takes six weeks for a new stock of soap to arrive. Here’s an example of how he or she would determine how much safety stock to keep in inventory and when to reorder soap.

Daily Consumption 1 bar of soap per day X 250 guest bathrooms = 250 bars consumed per day { 1 x 250 = 250 }

Lead Time for Reorder 6 weeks X 7 days a week = 42 days lead time { 6 x 7 = 42 }

Normal Consumption During Lead Time 250 per day consumption X 42 days lead time = { 250 x 42 = 10,500 } 10,500 consumption during lead time

Safety Stock 250 bars of soap needed per day X 42 days lead { 250 x 42 = 10,500 } time = 10,500 bars of soap as safety stock

Reorder Point (ROP) 10,500 safety stock + 10,500 normal { 10,500 + 10,500 = 21,000 } consumptions during lead time = 21,000 bars of soap in inventory determines reorder point

136 Chapter 8 – Executive Housekeeping Operations Issuing Controlling the inventory of guestroom amenities and cleaning supplies starts by maintaining accurate counts of the products in the main storeroom, followed by establishing strict issuing procedures to regulate the flow of products from the main storeroom to the floor storage closets. Shortages of amenities and cleaning supplies can result in incorrectly stocked guestrooms, guest inconvenience, and wasted labor hours as room attendants search for supplies they need to do their job. Tracking Consumption of guestroom amenities and cleaning supplies should be tracked using some type of checklist showing daily use by housekeeping staff, which is entered into a computerized tracking system. This will reduce loss due to theft and provide an easy way for the executive housekeeper to know exactly how much is used each day.

Sample Control Form for Issuing Guest Supplies

Guestroom Supplies Requisition

Par Reorder Requisition Cost of Item Item stock Point (same as Par) Requisition Bar soap 1 case ½ case Tissue 1 case ½ case Toilet paper 1 case ½ case Shower caps 100 50 Pens 1 box ½ box Memo pads 2 pkgs 1 pkgs Pencils 1 box ½ box Do Not Disturb signs 30 15 Glasses 1 case ½ case Room folders 30 15 Wastebaskets 6 2

Chapter 8 – Executive Housekeeping Operations 137 Section 8.7 Linen Inventory

ne par of any linen type is not enough for an efficient operation. Linen supplies need to be able to O outfit all guestrooms over a period of days. In order to establish a par number for linens, you must consider three things: the laundry cycle, replacement linens, and emergency situations. The laundry cycle is the most important factor in determining linen pars. At any given time, large amounts of linen are moving between guestrooms and the laundry which means that housekeeping should maintain three par of linens. The Laundry Cycle Many use this simple laundry cycle rhyme to remember the three pars:

Clean and Used Dirty and Being on the Bed Laundered Today— Today—clean yesterday’s dirty linens from linens which are closet placed being laundered on beds today today (second (one par) par)

Clean and Ready for Use Tomorrow— linens washed yesterday returning from the laundry to the linen closet (third par) The executive housekeeper needs to make sure the laundry manager is maintaining an accurate daily count of all linens from when they are sent to laundry to when they are returned to the storage closet. This allows for shortages to be spotted and prevents excessive amounts of linens being stocked unnecessarily.

138 Chapter 8 – Executive Housekeeping Operations Linen Storage Linen storage rooms must be kept locked at all times with access limited Terms you to designated employees. All linens returning from the laundry need to know rest in storage for at least 24 hours. This will increase the life of the linens should by giving the fabric a chance to relax, allowing the wrinkles to smooth out before the next use. Also, linen storage closets should be relatively Floor Par—the amount of free of humidity, have adequate ventilation, and contain shelving that each type of linen that is prevents damage from occurring to the fabrics. Linens are to be organized required to outfit all rooms by linen type to cut down on the amount of time required to load the serviced on a particular floor. housekeeping carts and to make it easier to take a physical inventory. Issuing Linens An effective method for controlling linen is to maintain floor par for all floor storage closets. The executive housekeepers should establish and post linen floor pars in each linen closet for use by the employee responsible for restocking the shelves each day. The executive housekeeper can use the occupancy report to create a linen distribution list that indicates how much linen is needed in each floor linen closet to bring the numbers up to par levels for the next day. Typically, restocking occurs at the beginning of the evening shift. A member of the housekeeping staff restocks the floor linen closets with the linen returning from the laundry.

Sample Master Linen Inventory Control Chart Location Name: GM’s Initials: Prepared by: Location Number: Inventory Date:

PART I 1. Item Pillow Case Top Sheet Fitted Sheet Bath Towel Bath Mat Face Cloth 2. Last Inventory Date ( ) 3. New Record 4. Subtotal 2 + 3 5. Recorded Discards 6. TOTAL 4 − 5 PART II 7. Storage Room 8. Storage Room 9. Storage Room 10. Linen Room 11. Laundry 12. On Carts 13. In Rooms 14. On Rollaways, Cribs, etc. TOTAL ON HAND 15. Add 7 Through 14 PART III 16. Losses 6 − 15 17. Par Stock ______Turns 18. Amount Needed 17 − 15 19. On Order 20. Need to Order 18 − 19

Chapter 8 – Executive Housekeeping Operations 139 Section 8.8 Housekeeping Green Practices

he hospitality and tourism industry was one of the first to see the erms you T positive effects of going green and developing sustainable green T practices. Environmentally friendly policies contribute something known should know as the triple bottom line, which means green practices result in: 1. Economic Impact Going Green—a term used to describe the process of a. Energy savings (electricity and water) making decisions about how b. Waste reduction and lower disposal costs (trash) to conduct business and c. Labor cost reductions provide services to hotel 2. Environmental Impact guests while taking into consideration the impact a. Conservation of natural resources those decisions will have on b. Reduction of pollution the environment. c. Protection of wild places and wildlife Sustainable Green 3. Social Impact Practices—the concept of a. Good stewardship of the natural world taking into consideration the b. Environmental accountability impact business decisions c. Responsible cleaning practices and practices have on the environment, then finding and implementing methods, materials, or systems that will minimize that impact over a long period of time.

140 Chapter 8 – Executive Housekeeping Operations Housekeeping Green Team The role of a green team is to monitor energy use, reduce waste, and establish green practices in the housekeeping department. Typically, a green team is made up of a group of employees from various housekeeping positions and shifts. They are provided scheduled time to meet and discuss ways to implement green practices that contribute to the triple bottom line. Common green practices include:

Replace incandescent lamps with compact fluorescent lamps wherever possible.

Install digital thermostats in guestrooms.

Implement a towel and/or linen reuse program.

Install low-flow, 2.5-gallons-per-minute or less showerheads in all guestroom.

Install low-flush, 1.6-gallon toilets in all guestrooms.

Implement a recycling program.

Legend

Saves on water Saves energy Saves energy Recycle consumption

Chapter 8 – Executive Housekeeping Operations 141 Apply Your Learning

Section 8.1 1. List the five areas in a hotel that housekeeping is responsible for cleaning. 2. What items is housekeeping responsible for providing to guestrooms? 3. When guests arrive at a hotel, what do they expected to find? 4. Who is responsible for overseeing the housekeeping operation? Section 8.2 1. List five resources the executive housekeeper must oversee. 2. How does the role of the executive housekeeper differ between a full-service hotel and a rooms-only property? 3. Why is evaluating an important area of responsibility for the executive housekeeper? 4. What are the goals of the executive housekeeper when directing employee activities? 5. What two areas do the housekeeping standards cover? Write a short paragraph explaining how they differ and why each one is important. Use complete sentences. Section 8.3 1. What is the main product a hotel sells? 2. Who is principally responsible for making certain guestrooms meet the property’s standards? 3. List the correct sequence of steps for guestroom cleaning. Explain what happens in each step. 4. What is the purpose of the room inspection? Write a short paragraph explaining the process. Use complete sentences. 5. List the three steps followed when housekeeping needs to report a guestroom repair. Explain why each step is an important part of the process. Use complete sentences. Section 8.4 1. What is a guestroom attendant responsible for accomplishing each day? Explain your answer. 2. What tasks does the floor attendant perform? Explain how this assists the guestroom attendants. Use complete sentences. 3. What items and duties is the laundry attendant responsible for accomplishing each day? Explain your answer. 4. List the four main tasks performed by the linen room attendant and explain why he or she should inspect each item daily. Use complete sentences. 5. Why is it important for employees to regularly check the schedule and what information should the employee look for? Explain your answer.

142 Chapter 8 – Executive Housekeeping Operations Section 8.5 1. List the items typically found in the recycled inventory and explain why they are consider recycled item. 2. Why are guest amenities considered non-recyclable inventory items? Explain your answer. 3. Why does housekeeping need to know when a non-recyclable item has reached the minimum quantity level? Explain your answer. 4. Why is monitoring inventory of levels of housekeeping items so important? Write a short paragraph explaining why you believe it is an important process. Use complete sentences. 5. Why is taking a monthly inventory count of every item necessary? Explain your answer. Section 8.6 1. Why is it necessary to maintain a lead time quantity of non-recyclable inventory items on the shelf? Explain your answer. 2. If it takes 12 weeks to receive toilet paper from a vendor, what would be the lead time needed for a reorder? Show how you calculated the answer. 3. If a hotel has 325 guestrooms and places 2 ink pens in each room per day, what is the daily consumption of ink pens? Show how you calculated the answer. 4. Calculate the safety stock level for shampoo for a hotel with 410 guest bathrooms. The lead time for reorders is two weeks. Show how you calculated the answer. 5. If the safety stock level of tissues is 15,000 and the normal consumption is 12,000, what would be the number used to determine the reorder point (ROP)? Show how you calculated the answer. Section 8.7 1. Why is one par of each linen type not enough for an efficient housekeeping operation? Write a short paragraph explaining why you believe this to be true. Use complete sentences. 2. What is a floor par and how is it used to guarantee housekeeping has enough linens in stock? 3. How many pars are needed in the laundry cycle? Explain where each par is located in the cycle and why each is a necessary step. Use complete sentences. 4. How is the occupancy report used by the executive housekeeper when distributing linens? Section 8.8 1. List four common green practices along with the environmental benefits each provides. Use complete sentences. 2. What is the role of the housekeeping departmental green team? Explain your answer. 3. What does the phrase triple bottom line refer to? Write a short paragraph explaining each part of the triple bottom line. Use complete sentences.

Chapter 8 – Executive Housekeeping Operations 143 Chapter 9 Facilities Management

XXSection 9.1 Introduction XXSection 9.2 Competencies Facilities Management and the 1. Identify the role of the facilities management department Chief Engineer at a hotel. 2. Identify the responsibilities of the facilities management XXSection 9.3 department. Maintaining Property Appeal 3. Identify the primary responsibilities of the chief engineer in overseeing the operation of the facilities management XXSection 9.4 department. Preventive Maintenance 4. Explain the importance of a well-maintained property for both the interior and exterior spaces. XXSection 9.5 5. Explain the purpose of facilities management regularly scheduling and performing preventive maintenance, Routine and Emergency routine inspections, and manufacturer-recommended Maintenance maintenance on systems, equipment, and other high-cost items. XXSection 9.6 6. Identify the process for reporting, completing, and Emergency Preparedness Plan tracking repairs by the facilities management department. 7. Identify the role of year-round routine maintenance for XXSection 9.7 grounds, landscaping, high-traffic guest areas, and snow Facilities Green Practices clearing. 8. Discuss the four key planning areas for an emergency preparedness plan along with the role of maintaining emergency backup systems at a hotel. 9. Identify the three E’s of green initiatives and most common green practices that fall under the facilities management department.

144 Hospitality Profile

Deirdre Wallace Green Hotel Pioneer Deirdre Wallace is president of The Ambrose Hotel and leader in the development of “green” hotel best practices. The Ambrose, a beautifully tranquil craftsman- style boutique hotel in Santa Monica, California, was Ms. Wallace’s first signature hotel to go green. The Ambrose was the first LEED-EB (Leadership in Energy and Environmental Design – Existing Building) hotel and one of the first five LEED-certified (the U.S. Green Building Council’s benchmark certification) hotels in the United States. After The Ambrose’s successful launch in 2003, Ms. Wallace also became the first green hotelier in the U.S. By going off the beaten path, Ms. Wallace took her conventionally built hotel and introduced green practices and components into all aspects the operations of the hotel.

145 Section 9.1 Introduction

he facilities management department plays a critical role in erms you T the hospitality and tourism industry by overseeing the proper T maintenance and operation of all buildings, systems, and equipment should know in use. Facilities is also responsible for guaranteeing the property is visually appealing, meets all safety standards and requirements, and Facilities Management— provides a comfortable place for guests to stay. Because facilities has a the management of all major impact on staff-only areas as well, it is key to assuring employees aspects of the hotel’s have an efficient, comfortable, safe work environment. Consequently, physical structure including the facilities management department is considered the manufacturing all guest areas, along with plant for just about everything the property needs to function efficiently. the necessary operating The scope of responsibilities for facilities will depend on the size and equipment, systems, utilities, organization of the property but typically will include: and employee work stations, • System building design without which the hotel could • System and building operations not provide a comfortable, guest experience. • Building and guestroom maintenance • Equipment selection, installation, maintenance, and repair • Contract management and compliance • Utilities and waste management • Budget and cost control • Security and safety • Regulatory compliance • Parts inspections and control • Renovations, additions, and restorations • Special projects • Staff training • Emergency planning and response • Corporate reporting A properly run facilities management department is a major contributor to: • Guest satisfaction • Employee productivity • Property revenue and profits

146 Chapter 9 – Facilities Management Section 9.2 Facilities Management and the Chief Engineer anaging facilities falls to a chief engineer or engineering manager M depending on the size of the property. Many of the front of house erms you and back of house areas facilities has to oversee are managed by another T department. The chief engineer or engineering manager will have shared should know responsibility with each area’s management team. This includes the front desk, housekeeping, laundry facility, and food and beverage areas. Front of House—the functional areas of the hotel in which employees have extensive guest contact, such as food and beverage facilities and the front desk.

Back of House—a staff-only area of the hotel, used for functional purposes, such as storage, break rooms, offices, engineering, and maintenance.

Chapter 9 – Facilities Management 147 The four key areas that are overseen property-wide by the chief engineer or engineering manager are: 1. Safety and Security—responsible for the proper operation of building systems such as: • Fire protection systems • Water purification and treatment systems • Locking and security monitoring systems • Buildings, pathways, and parking areas • Pool and recreation areas/equipment • Furniture, guestrooms, and other public areas • Employee work areas • Equipment and machinery

2. Legal and Regulatory Compliance—ensures compliance with: • Building codes • Health department regulations • EPA and other federal environmental mandates • Americans with Disabilities Act (ADA) regulations • Occupational Safety and Health Administration (OSHA) regulations

3. Service—provides services to guests, other departments, and the property brand or owner 4. Cost Control—manages cost of: • Utilities including electricity, fuel, and water • Preventive (planned) and emergency (unplanned) maintenance • Capital expenditures for furniture, equipment, replacement building systems, and other high cost items

148 Chapter 9 – Facilities Management Because of the technical nature attached to the various responsibilties, engineering managers will need to have a background in areas such as: • Military service • Contracting or construction firms • College, trade, or technical school education • On-the-job experience The Director of Engineering (DOE) position will typically require a four-year university degree along with work experience in managing costs, staff, and departmental operations. Other management positions will not necessarily require a degree, but will expect some type of educational background and work experience in facilities management. Many people begin their facilities management career as entry- level employees while in school.

ADA Facilities management must comply with ADA regulations for: Wheelchairs and other mobility devices Building/guestroom access and emergency egress (exit) Elevator Curb ramps Handicap parking Pool lift Visually impaired Braille signage, room numbers, elevator buttons, and menus Audible fire alarm Deaf or hard of hearing Telecommunications device for the deaf (TDD phone) Flashing strobe light fire alarm Service animals

Chapter 9 – Facilities Management 149 Section 9.3 Maintaining Property Appeal

urb appeal is often referred to as the “silent salesperson” for hotel erms you C properties in the hospitality and tourism industry. Why? Because it T is the first part of a hotel a guest sees. Consequently, making a good first should know impression is important. Never forget that the hotel’s exterior is what often draws guests’ attention to the property while the interior makes Curb Appeal—the visual them want to spend time there. attractiveness of a building as It falls to the facilities management department to make certain that seen from the street. the outside areas are as well maintained as the lobby, guestrooms, and other inside guest spaces. However, this does not always happen. Many facilities engineers often think taking care of the exterior is less important than maintaining the inside spaces. This belief can cause the property to lose sales. Even today, in the age of online hotel reservations, some people still travel without any fixed plans for where they will stay each night. Instead, they wait to look for accommodations at the end of the day and this is when curb appeal becomes a sales tactic that draws walk- in guests to the property.

150 Chapter 9 – Facilities Management Exterior facilities include:

Elevators Exterior Walls Foundation Landscaping and Grounds

Parking Lots Pool Roof Structural Frame

Utilities (electric, Windows and Doors phone, cable systems)

Once a guest is in residence, they will begin to notice all the details of the interior space. This is when maintenance has to make certain that each guest area has been properly maintained. The little things, along with big items such as furniture, wall coverings, and floors, reflect attention to detail on the part of the facilities management department.

Pineapple Fun Fact

A guest comment card entry concerning the hotel’s condition stated: “The manager promised that I wouldn’t find a single flea in my bed. He was right; they were all married with families.”

Chapter 9 – Facilities Management 151 Section 9.4 Preventive Maintenance

reventive maintenance occurs on an as-needed basis with the Terms you P goal of keeping everything—systems, equipment, and other high know cost items—in good working order. This is particularly important for should equipment and systems in constant use such as:

Preventive Maintenance— • Heating, ventilation, and air-conditioning (HVAC) a systematic approach • Laundry equipment and machinery to maintenance in which • Fire protection systems situations are identified • Swimming pool, hot tub, and other recreational equipment and corrected on a regular basis to control costs and • Kitchen equipment keep larger problems from On arrival, guests expect to stay in a fully functioning hotel. The occurring. responsibility of delivering on this expectation falls to the maintenance department. Keeping up with everything is one of the major challenges taken on by the chief engineer and the maintenance team. Most engineers enjoy the challenge of finding ways to keep everything functioning correctly and often state that this challenge is what drew them to the job in the first place.

152 Chapter 9 – Facilities Management Determining when maintenance is required can be done in one of three ways: 1. Detecting maintenance needs during a routine inspection 2. Receiving reports of items requiring maintenance 3. Following manufacturers’ guidelines for proper maintenance

Sample Preventive Maintenance Procedures: HVAC Wall Units Le Tomas Hotel Routine Inspection Date: 01/23/13 Frequency: Monthly

Equipment Inspected: Guestroom #135 1. Check HVAC unit for proper operation. 2. Check condition of lter. 3. Inspect condition of heating/cooling coils.

Preventive Maintenance Needed:  Remove unit from room and blow out whole unit.  Clean coils with coil cleaner and steam or pressure wash.  Clean blower wheels thoroughly.  Clean condensate pan and paint with bituminous paint.  Lubricate fan motors to manufacturer's speci cations.  Check all electrical components and connections.  Run unit and check full operation.  Record amp draw against manufacturer's speci cations.  Clean and repaint any deteriorated surfaces.  On units in coastal locations—after full service, recoat unit with tectyl corrosion treatment.

Routine Inspection Conducting routine preventive maintenance inspections is key to keeping all the service, systems, and equipment working. At the beginning of each year, the chief engineer will set up a calendar showing when preventive inspections will be conducted along with items already on a routine maintenance schedule. The dates of the upcoming inspections are based on the previous year’s inspection dates in order to keep the inspection process moving at a steady pace. During an inspection, the engineer will check that each item is functioning correctly and look for: • Signs of wear or weakness that could result in a breakdown • Current condition of previous repairs • Evidence that routine manufacturer-based maintenance did occur

Chapter 9 – Facilities Management 153 Sample Preventive Maintenance Guestroom Checklist

ENCLOSURE #2 SAMPLE ROOM CHECK LIST

Date Date Initials Initials Thermostat controls and fan (operation) Handles (check and secure) Knob on thermostat (secure) Lock cylinder set screw (check) Filter (clean or replace) Hinges and hinge pins (oil with WD-40 and secure) Condensation water drain (clean and add Algaecide tablet) Door chain and viewer (check, repair if necessary) Air Conditioner Grille (clean) Doors Lock striker plates (check and secure) Switches (check) Night latch (check) Lamp sockets (tighten) Door frame rubber bumpers (check, replace if needed) Lamp shades (repair or note for replacement) Door stops (check and replace if necessary) Cord on hanging light pullswitch (check) Toilet ush valve (check)

Lamps Cover on hanging light (secure) Toilet cover bumpers (check) Bulb (replace if necessary) Seat hinges (check and secure) Plugs (replace if necessary) Toilet seal (check for evidence of leaks) Outlet wall plates (inspect, clean, secure) Bath drain plug and pop-up (check) Switches (inspect, clean, secure) Mixing valve (secure handle) Switches and receptacles (replace missing screws) Mixing valve washers (replace if necessary) Switches &

Receptacles Receptacles (change if necessary) Hot and cold faucets (check/replace `H' and `C' buttons) Audio (check radio channels) Escutcheon plates (secure) Video (check television channels) Shower curtain hooks (check and replace if needed) Knob (replace if necessary) P trap under basin (check) Fine tuning (adjust if necessary) Drain pop-up (check)

Antenna outlet (secure plate) Bathroom Faucet strainer (clean or replace) Television Antennae connectors (check, repair if necessary) Basin bowl hangers (reglue or resecure) Remote control (check batteries) Toilet paper holder (check) Security mount (check for secure wall mount) Clothes hanger on bathroom wall (check and secure) Replace message light cover (if necessary) Floor and wall tile (grout tile and caulk around tub if needed) Dialing instructions (replace if necessary) Soap dish and grab bar (check and secure)

Telephone Defects (report any other defects to front desk) Towel rack (check and secure) Drawer handles and knobs (check, replace if necessary) Lavatory counter (check and refasten) Drawer guides (lubricate if needed with WD-40) Non-slip pads in tub (check condition) Stains (clean and touch up) Exhaust grill (clean) Chair legs (check) Tissue holder (check and replace) Table tops (check, repair small defects) Baseboards (check and replace/reglue as needed) Headboards (check and secure) Carpet (check)

Furniture Casters or legs (check and secure) Vinyl (check, reglue if necessary) Chair bumpers (check, replace if missing) Pictures (check) Springs on chairs (check) Ceiling (check for cracks and/or peeling paint) Night stands (check and secure) Paint (check paint on walls and door casings) Coat racks (check and secure) Rate card (conrm on door)

Window guides (lubricate with WD-40) General Fire exit plan (conrm on door) Mirror hangers (check and secure) Check for air leaks under A/C units Mirrors

Windows/ Window hardware (check and secure) Cracks in sidewalks Bedframe (check and secure) Inspect and secure all drapery tracks, rollers and pull cords Closets Drapery/ Bedding/ Hangers (replace if rusty or missing)

154 Chapter 9 – Facilities Management Reported Maintenance Issues The housekeeping department is an important part of the preventive maintenance process. Guestroom attendants will frequently spot common maintenance issues during guestroom cleaning. It is the responsibility of the chief engineer to set up a functional reporting system between the housekeeping department and facilities maintenance. Repair reporting systems should allow attendants to provide information about the needed repair. Once a repair is reported, a work order will be generated and assigned to a maintenance employee for completion. All completed repairs must be reported back to the chief engineer at the end of each day. It is the chief engineer’s responsibility to inspect the repair and report to housekeeping that the repair has been completed. Remember, one of the main reasons for guest dissatisfaction is a poorly maintained guestroom. Some repairs will require a guestroom to be removed from available inventory. This will result in lost revenue and has a serious impact on the front desk’s ability to accommodate guests. The chief engineer should have a plan to keep the time a guestroom is out-of-service to a minimum. Once a guestroom is once again ready to receive guests, both housekeeping and the front desk will need to be notified.

Manufacturer Guidelines Major systems and high cost pieces of equipment will come with manufacturer’s recommendations on how to properly maintain them for maximum life expectancy. Following those recommendations can prevent needless repairs and extend the equipment’s life expectancy. Making certain this happens is the responsibility of the chief engineer. Typically, the chief engineer will keep the manufacturer’s guidelines on file and use equipment data cards to track maintenance work performed on each system, piece of equipment, or machine.

Chapter 9 – Facilities Management 155 Section 9.5 Routine and Emergency Maintenance

outine maintenance deals with the general upkeep that is required on a routine, scheduled basis R all year round. This is to ensure the property never looks unkempt or neglected. Most routine maintenance is performed by entry-level maintenance employees and typically includes: • Lawn mowing • Landscape raking and trimming • Seasonal bedding plant installation • Exterior and interior high-traffic area paint touchup • Snow shoveling Emergency repairs should be the result of unexpected mechanical or system breakdowns, not because the facilities management department failed to properly maintain systems, equipment, and machinery. This can also be referred to as corrective maintenance. Emergency breakdowns can have a big impact on the property’s ability to operate depending on the type of emergency repair needed. This is due to the unexpected:

Repair Costs—for supplies and parts

Labor Costs—for employees involved in the situation

Property Damage—for additional damage resulting from the emergency breakdown

Vendor Costs—for cost of bringing in outside technicians to do repairs

156 Chapter 9 – Facilities Management Section 9.6 Emergency Preparedness Plan

he facilities management department and the chief engineer are key T players in a hotel’s emergency planning process. This is because the Terms you buildings, as structures meant to house and protect people, fall under the know department’s direct control. The goal of emergency planning is to ensure should guest and employee safety, security, and comfort during a wide variety of emergency situations. In certain emergencies such as a hurricane or Shelter in Place—taking toxic chemical spill, guests and employees may need to shelter in place immediate shelter where or be evacuated to a safer location. Having a plan in place that contains you are—at home, work, or specific responsibilities and duties for each employee to carry out during school—and remaining there the emergency is essential to the property meeting its goals of safety, until you are told by the security, and comfort. authorities it is safe to leave. Emergency planning must include procedures for the following: • Natural disasters ₋₋ Floods ₋₋ Earthquakes ₋₋ Wildfires • Severe weather ₋₋ Hurricanes ₋₋ Tornadoes ₋₋ Blizzards and whiteout conditions • Power outages • Terrorism

Emergency Backup Systems During emergency situations, hotels may experience a loss of basic utilities such as electricity and telephone service. Having backup services in place for temporary property operations should be a part of every emergency preparedness plan and should include: • Emergency power systems such as a whole building generator and batteries • Emergency fuel supplies (gasoline, propane, and diesel fuel) • Emergency communication system (cell phones or hand-held radios) Because these systems spend most of their lifetime waiting to be needed, it is important to routinely inspect, service, and test operate them to guarantee each is fully functional and will work to maximum capacity when an emergency happens.

Chapter 9 – Facilities Management 157 Section 9.7 Facilities Green Practices

he facilities management department is responsible for driving most T of the sustainable green practices in place at a hotel. This is because areas like water conservation and energy management fall under the chief engineer’s responsibilities. However, the entire hotel has to approach sustainability of all its green programs using the three E’s to drive every green initiative.

The three E’s: Economics—green practices are good for business.

Environment—green practices protect and save natural resources.

Equity—green practices contribute to local community conservation efforts.

158 Chapter 9 – Facilities Management The types of green practices in place at many hotels include property-wide efforts for: • Recycling ₋₋ Have a program in place to recycle paper, plastic, cardboard, glass bottles, and aluminum cans. • Energy Conservation and Management ₋₋ Establish set temperatures for guestroom thermostats, install motion detectors to control when HVAC systems turn on and off, and install low-energy usage light bulbs. • Solid Waste Management ₋₋ Reduce trash sent to the landfill by buying products with less packaging and find local charities to donate unused guestroom amenities such as soap and shampoo. • Water Conservation ₋₋ Encourage guests to reuse towels to cut water use by the laundry facility. • Waste-Water Management (sewage) ₋₋ Install low-flush toilets and low-flow shower heads. ₋₋ Install a grey water recycling system for use in watering hotel landscaping. • Hazardous Materials Management ₋₋ Store and dispose of cleaning solutions, used oil, solvents, paint, pesticides, antifreeze, old batteries, and aerosol cans using environmentally approved containers or processes designed to prevent contamination of the soil or ground water supply. ₋₋ Find safe alternatives to replace the use of hazardous products to eliminate the possibility of contamination or employee injuries from leaks or spills. • Land-Use Planning and Management ₋₋ Explore ways to balance the operational requirements of the hotel against the needs of wildlife and protecting the environment. Implement conservations methods wherever possible.

Chapter 9 – Facilities Management 159 Apply Your Learning

Section 9.1 1. What three things does a well-run property contribute to a hotel? 2. List five facilities management departmental responsibilities and explain the purpose of each. 3. The facilities management department acts as a for equipment and systems that allow the property to . 4. How does a properly run facility contribute to guest satisfaction? Explain your answer. Section 9.2 1. List five items belonging to the chief engineer’s safety and security area of responsibility. 2. What does the acronym DOE stand for? 3. What areas of a hotel would belong in the front of house category? 4. What does the acronym OSHA stand for? 5. What areas of a hotel would belong in the back of house category? 6. What four areas are facility managers responsible for handling? Section 9.3 1. How does good curb appeal help a property to be profitable? 2. Why is maintaining the outside of a hotel in good condition just as important as having nice guestrooms? 3. List four exterior spaces facilities management should keep well-maintained. 4. Why is attention to detail so important when maintaining the inside of a hotel? 5. Explain why making a good first impression is so important in the hospitality and tourism industry. Section 9.4 1. What is the purpose of performing preventive maintenance? 2. Why must the chief engineer make certain that routine inspections are scheduled and completed? Explain your answer. 3. List the three ways the need for maintenance can be determined. 4. What should the engineer check for during a routine inspection? 5. What happens when a guestroom is not properly maintained? 6. What type of method does the chief engineer use to track maintenance on each system and machine over a period of years?

160 Chapter 9 – Facilities Management Section 9.5 1. What is the purpose of routine maintenance? 2. How does routine maintenance differ from preventive maintenance? 3. Why do emergency repairs occur? 4. How could emergency repairs be prevented? 5. List the four ways emergency breakdowns impact efficient operation. Section 9.6 1. What items would typically be included in an emergency power system plan? 2. List the four major groups of emergencies that must be covered by a preparedness plan. 3. Why would having a clear method of communication be important during an emergency? 4. Why is maintaining backup systems in good working order important to the effective emergency operations of a hotel? Section 9.7 1. How could a hotel benefit financially by using green practices? 2. How could a hotel reduce the amount of solid waste it sends to a landfill each day? 3. Why is it important to have a recycling program operating at a hotel? 4. What water conservation efforts could a hotel use to reduce the amount of waste water it produces each day? 5. What type of items might a hotel have that would be considered as hazardous materials?

Chapter 9 – Facilities Management 161 Chapter 10 Food and Beverage Services XXSection 10.1 Introduction Competencies XXSection 10.2 1. Identify the restaurant industry’s position as a major Types of Food and Beverage Operations source of jobs in the U.S. XXSection 10.3 2. Identify the purpose for type of service, menu options, and cost in each of the five main categories Food and Beverage Guest Cycle of food service outlets. XXSection 10.4 3. Explain the guest and employee segments of the Food and Beverage Financial Cycle food and beverage guest cycle. 4. Explain the need for implementing, and consistently XXSection 10.5 using, financial controls for labor costs, food costs, Restaurants and the ADA menu pricing, and cash control in a food and beverage operation. XXSection 10.6 5. Identify the purpose of safety and sanitation in Food Safety and Sanitation food service operations and the need for a written Sanitation Risk Management (SRM) program such as XXSection 10.7 HACCP. Restaurant Operations 6. Identify the four main styles of table service and the XXSection 10.8 purpose of each. 7. Explain the goal of providing excellent food to food Kitchen Operations service operations. XXSection 10.9 8. Identify the need for responsible beverage Responsible Beverage Operations operations, the role of a dram law, and liabilities, legalities, and responsibilities servers, bartenders, XXSection 10.10 restaurants, bars, lounges, and other beverage Banquets, Catering, and Event Planning service providers face when serving alcohol. 9. Explain the role of banquets, catering, and special XXSection 10.11 events in food and beverage operations. Food and Beverage Green Practices 10. Identify the ten most common green practices used by food and beverage facilities.

162 Hospitality Profile

Thomas J. Corcoran, Jr. Chairman of the Board of FelCor Lodging Trust IIn 1991, Mr. Corcoran co-founded FelCor, Inc., one of the nation’s largest hotel Real Estate Investment Trusts (REIT) and the nation’s largest owner of full service, all-suite hotels. In 1994, FelCor went public with six hotels and a market capitalization of approximately $120 million as a REIT under the name FelCor Suite Hotels, Inc. In 1996, the Company listed on the New York Stock Exchange as FCH and in July 1998, changed its name to FelCor Lodging Trust Incorporated. Mr. Corcoran served as president and CEO of FelCor from 1991 to 2006, until his appointment as chairman in February 2006. Additionally, he served as the chair of AH&LA in 2008. A REIT is a corporation that uses the combined money of many investors to purchase and manage income property. Many hospitality and tourism businesses, in particular hotel properties, are owned and operated by real estate investors such as Mr. Corcoran.

163 Section 10.1 Introduction

t is estimated that more than 13 million people in the United States work in the restaurant industry. I This means that nearly one in ten Americans holds a position that provides some type of food and beverage service. This makes the industry the second largest source of U.S. jobs, with a growth rate of 1.3 million jobs over the next ten years. With over 900,000 food and beverage locations in the U.S. and sales exceeding $600 billion a year, the restaurant industry is expected to continue growing.1 Typically, the restaurant industry is broken into a variety of markets. Since the focus of this chapter will be on food and beverage operations found in the hospitality and tourism industry, the category discussed will belong generally to the Commercial group. The other two categories, Military and Institutional, have some connection with hospitality and tourism and may be discussed periodically.

1National Restaurant Association, Our Members Are More Than Just Restaurants…, http://www.restaurant.org/aboutus.html (January 2012)

164 Chapter 10 – Food and Beverage Services Section 10.2 Types of Food and Beverage Operations

oday’s guests have an enormous number of dining options to choose from. Dining decisions are T usually based on the amount of time available to eat, the cost of the dining experience, and the type of dining outlets in a specific location. Many times guest choices are made on the spur of the moment; others are planned events. Additional considerations include dietary, cultural, religious, or medical needs or preferences. All the variables of how and why guests make dining decisions could result in an endless list of restaurant types. . However, using common characteristics (type of service, menu options, and cost, etc.) as links, most restaurants fall into the following categories:

Quick-Service—McDonald’s, KFC, Taco Bell, and Arby’s

Quick-Casual—Chipotle, Panera Bread, and Subway

Family-Dining—Bob Evans, Cracker Barrel, and Denny’s

Casual-Dining—Applebee’s, Chili’s, LongHorn Steakhouse, Olive Garden, and T.G.I. Friday’s

Fine-Dining—The Capital Grille, Morton’s, and Ruth’s Chris Steakhouse

Chapter 10 – Food and Beverage Services 165 Hotel Dining Options Terms you Depending on the size of the hotel, the dining options can include should know all or none of the five main restaurant categories. For example, arooms- only hotel will not have an on-site restaurant while a full-service resort property may offer a variety of food and beverage choices ranging from Rooms-Only Hotel—an a poolside snack bar to a gourmet fine-dining restaurant featuring a economy hotel property celebrity chef. that has only guestrooms to offer guests; no dining or recreation options are available on site.

Destination Dining Guests are always looking for special experiences and a recent trend in hotels is to create dining options that are destinations all on their own. The goal is to appeal not only to hotel guests but to make the dining experience enticing to both locals and visitors as well. This creates a stand-alone facility which is marketed to the public both individually and as part of the hotel. This trend has produced dining destinations that feature celebrity chefs, enticing menus, unique locations, and fabulous guest service. Many properties are finding destination dining to be a very profitable way to attract local and visitor business.

166 Chapter 10 – Food and Beverage Services Section 10.3 Food and Beverage Guest Cycle

he guest cycle for food and beverage operations typically involves two sets of sequential actions T that are caused by: 1. The guest’s perspective of services desired. 2. The employee’s perspective of how to provide what the guest is requesting. The guest perspective acts as the foundation and deals with the activities the guest engages in during each stage of the cycle. Those guest actions then will trigger and guide the employee, as a service provider, in what needs to happen next in order to provide what the guest wants or needs. This is true of all types of food and beverage outlets whether they are free-standing restaurants or hotel-based dining options.

Employee’s Perspective

Prepare For Service Take Order Serve Order Complete Service

Guest’s Perspective Dining Reservation Greet & Seat Dine Bill Settlement/Depart

Pre-Arrival Arrival Occupancy Departure

Pineapple Fun Fact

On the afternoon of April 19, 1775, Monroe Tavern in Lexington, Massachusetts, served as the headquarters for British Brigadier General Earl Percy and his one thousand reinforcements. His troops occupied the tavern for one and one-half hours. They converted the dining room into a field hospital while the weary British soldiers consumed liberal quantities of food and drink. A bullet hole is still visible in the ceiling as a reminder of the disorderly conduct of these uninvited guests.

Chapter 10 – Food and Beverage Services 167 Section 10.4 Food and Beverage Financial Cycle

ow profitable a food and beverage operation will be depends on controlling four key items: labor H costs, food costs, menu pricing, and cash control. Finding the perfect balance between the right number of employees and a menu priced to sell, while remaining profitable, is very difficult. Cash control requires the use of a strong protocol since many people may be involved in the process of guest bill settlement. Fortunately, there are tools and methods available to help find the right balance for managing costs, creating a well-priced menu, and handling cash as it flows through the operation. The Menu The menu is the key determining factor in the type food and beverage option a hotel will operate. For guests, the menu communicates what the overall dining experience will be. While for employees, the menu dictates what and how food items will be prepared. For the kitchen, the menu will determine equipment needs and employee skill requirements. For managers, the menu is the chief cost control, marketing, and sales tool. The menu also drives purchasing needs such as: • Food items • Kitchen and food service equipment • Linens, china, glassware, and silverware • Furniture The managers can use the menu to determine the restaurant’s: • Type • Price range • Level of service • Décor and physical layout • Staffing needs In order for a menu to be successful, and the food facility to show a profit, the menu must meet guests’ needs and expectations. At a hotel property, this means the food and beverage operations must align with the level of guest service, theme, and quality provided by the hotel itself.

168 Chapter 10 – Food and Beverage Services Food Costs and Menu Pricing Menu pricing is a complex process, so a variety of formulas are available Terms you to ensure the price of each menu item covers the cost of food and labor should know needed to produce it. Menu pricing typically begins by determining the total cost of all ingredients called for by a standard recipe plus the cost of the labor and other expenses necessary to produce and serve the item Standard Recipe—a formula for guest consumption. Once the cost is determined, it is important for for preparing a menu item the restaurant to maintain the cost at that specific dollar amount to keep based on a specific portion food and labor costs from reducing profits. size by using guides for measuring ingredients, Formula for Food Costs cooking/preparation procedures, garnish, and Standard Recipe Cost (SRC) + Labor Cost (LC) = Food Cost (FC) equipment required to produce a menu item.

Price Point—the price a For example: food cost to produce one slice of apple pie product is sold for on the retail market. $0.38 (SRC) + $0.33 (LC) = $0.71 (FC)

The price posted on the menu and paid by guests is known as the item’s price point. The price point is created by dividing the food cost by the percentage of profit the restaurant feels is necessary to meet revenue goals. Typically, it will be somewhere between 25 and 30 percent, with the actual percentage used determined by the restaurant’s financial objectives. Also, the percentage has to be set at an amount that will be attractive to guests and fill tables with diners.

Formula for Price Point

Food Cost (FC) ÷ Pro t Percentage (P%) = Price Point

For example: price point for a slice of apple pie in a casual dining restaurant

$0.71 (FC) ÷ 27% (P%) = $2.62 Price Point

Chapter 10 – Food and Beverage Services 169 Section 10.5 Restaurants and the ADA

ike hotels, food service facilities must comply with the Americans with Disabilities Act (ADA) by L making reasonable accommodation for employees and guests. People with disabilities need to access tables, food service lines, and condiment and beverage bars in restaurants, bars, or other establishments where food or drinks are sold. There must be an accessible route to all dining areas, including raised or sunken dining areas and outdoor dining areas, as well as to food service lines, service counters, and public restrooms. In a dining area, tables must be far enough apart so a person using a wheelchair can maneuver between the tables when patrons are sitting at them. All wheelchair-accessible tables must allow a guest in a wheelchair to sit comfortably with legs under the table top, and must be dispersed throughout the dining area rather than clustered in a single location. Space for service animals trained to sit under the table at their owners feet must be provided as well.

170 Chapter 10 – Food and Beverage Services Chapter 10 – Food and Beverage Services 171 Section 10.6 Food Safety and Sanitation

ood service facilities must pay close attention to food safety and Terms you F sanitation issues to prevent foodborne illnesses or emergencies from should know occurring. Each state and local area has food sanitation regulations that clearly define how to prevent unsanitary and unsafe restaurant conditions. Periodic inspections are conducted to ensure restaurants are in compliance Control Point—requirements with those regulations. Why? Because it is the only way to make sure the attached to specific points in dining public is safe from illnesses such as salmonella, the most common the food service process to form of food poisoning. Plus, foodborne illnesses are bad for business. prevent unsafe and unsanitary No one wants to eat at a restaurant he or she believes to be unsafe or conditions or situations from unsanitary. Training employees to follow all food safety and sanitation occurring. procedures and protocols is the secret to preventing issues. A sanitation risk management (SRM) program focuses on reducing overall sanitation risks by identifying the risks at each control point in the food service operation. In a SRM program, standards and procedures for each control point are given for each of the four resources:

Inventory—controls that protect food products, beverages, and nonfood items from spoilage, contamination, pilferage, and waste.

People—employee training in the use of proper sanitation practices.

Equipment—requirement for the proper cleaning and maintenance of all equipment.

Facilities—requirement of a food facility design and layout that has a positive effect on the facility’s ability to provide a safe and sanitary dining environment.

172 Chapter 10 – Food and Beverage Services HACCP A common SRM program is the Hazardous Analysis Critical Control Point (HACCP) system. HACCP is a systematic approach to identify, evaluate, and control food safety hazards. Critical control points (CCPs) are the activities in the food process that must be controlled to ensure food safety. The written HACCP plan must detail hazards, identify the CCP’s critical limits, specify CCP monitoring and methods of recordkeeping, and outline a strategy for implementing the plan.

Sample HACCP Reporting Form

Monitoring Veri cation Chemical/ Procedures/ Corrective Procedures/ Physical/ Frequency/ Action(s)/ Frequency/ Biological Critical Person(s) Person(s) HACCP Person(s) Process Step CCP Hazards Limit Responsible Responsible Records Responsible

Chapter 10 – Food and Beverage Services 173 Section 10.7 Restaurant Operations

here are many variations in the procedures and techniques food service operations use to serve T food to guests, but most can be categorized under one of five main styles of table service: Plate Service—follows these basic procedures: 1. Servers take guests’ orders in the dining area. 2. Kitchen staff members produce food orders, portion them, and place them on plates in the kitchen. 3. Servers pick up or place the orders on trays, sometimes using plate covers to keep food warm and facilitate stacking, and take them to the guests. They may use tray stands (also called tray jacks) or have food runners to assist by holding the plated meals while the server places each guest’s order on the table. 4. Buspersons assist servers and clear tables.

Cart Service—cart service is an elaborate service style in which menu items are prepared on a cart beside guest tables by specially trained staff members. Cart service is typically found at fine dining establishments.

Platter Service—follows these procedures: 1. The food is prepared by food production staff in the kitchen. 2. Food is then arranged attractively on the service platters for delivery to the dining room. 3. Servers line up in the kitchen and select a platter to carry into the dining room. 4. Food is paraded into the dining area and presented to the guests. 5. Platters are placed on side stands to keep food warm while guests are given a very hot, empty dinner plate. 6. Servers, moving counter-clock wise around the table, transfer the food to guest plates.

Family-style Service—the kitchen places food on large platters or in large serving bowls that servers deliver and place in the middle of the guest’s table. Guests serve themselves by passing the food around the table.

174 Chapter 10 – Food and Beverage Services Buffet Service—using hot or cold buffet service tables, guests may serve themselves food items such as: • Salads, fresh fruit, and other chilled side items • Hot vegetables, meats, poultry, and fish • Breakfast items, muffins and crepes • Omelets from prepared-to-order stations • Sauces, dressings, and relishes • Desserts and breads • Beef, ham, and other roasts in whole “steamship” rounds that are hand cut by staff at carving stations

Each type of service will appeal to a specific target audience. The level of guest service and type of environment where the food facility is located will determine the target audience and the type of service most attractive to guests.

Chapter 10 – Food and Beverage Services 175 Job Positions The food and beverage industry requires a skilled and knowledgeable workforce. This is due to the complex process involved when planning a menu, preparing or cooking each item, and then guaranteeing guests are served quality food and beverages. The variables, such as when certain food items are available or controlling food preparation and service to guarantee a consistent process, offer a unique challenge to each employee. Consequently, food service employees must pay attention to detail, know exactly what guests expect, and follow their property’s food and service standards. Food and beverage job positions are typically divided into three main categories:

Managers—have a wide variety of duties from running the kitchen, creating the menu, hiring and training staff, setting financial goals, and overseeing day-to-day operations. Consequently, the larger the operation, the more varied the management positions. • General manager • Executive chef • Operations manager • Supervisor

Production Staff—focus primarily on the food production process and traditionally have little to no direct contact with guests. However, the production staff has a major impact on the overall guest experience through the type and quality of food being sent from the kitchen to the dining public. • Chefs • Cooks • Pantry staff • Stewards • Receiving staff • Bakers • Dishwashers

Service Staff—have the biggest impact on the dining experience since these positions have direct contact with guests. The types of positions required will depend on the type and size of each food and beverage operation along with the duties to be performed based on the menu, level of guest service, and guest expectations. • Greeters/hosts/hostesses • Restaurant servers • Banquet servers • Beverage servers • In-room dining attendants • Counter staff • Buspersons • Bartenders • Cashiers

176 Chapter 10 – Food and Beverage Services Section 10.8 Kitchen Operations

xcellent food is the goal for all successful food service E facilities. This can only be achieved when the food and beverage production staff have the proper tools, equipment, and training to make the goal of excellent food a reality. Staf ng Proper equipment and tools will ensure food is cooked using the correct procedure, Timing as well as provide storage for hot and cold food waiting to be served. Timing in kitchen operations is critical. Safety Guests seated together expect to dine together. However, menu items ordered may have different cooking times, which means the kitchen must be prepared to hold hot and cold items for serving together based on the longest cook time. Procedure That will require planned coordination by the kitchen staff.

Planning

Chapter 10 – Food and Beverage Services 177 Section 10.9 Responsible Beverage Operations

he careful service of alcoholic beverages is an important responsibility erms you T for employees involved in restaurant, bar, and lounge facilities. In T some states where dram shop laws are in place, servers, bartenders, and should know owners can be held liable if an intoxicated guest causes injury to another person. Therefore, anyone involved in serving alcoholic beverages must do Dram Shop Laws—in general, so responsibly. Typically, guests understand that alcohol-service rules are provide consistent guidelines not simply house rules, but based in law. However, once a person begins about who is responsible to consume alcohol, his or her ability to make decisions is one of the first when third parties suffer things to be impaired. So, laws surrounding the sale and consumption because of an intoxicated of alcohol place a heavy responsibility on the restaurant, bar, or lounge person’s actions—will vary operation and the servers working there. from state to state. The legal minimum age to serve or clear alcohol will vary from state to state. In order to hold a position involving the serving of alcohol, a person must be 18 to 21 years of age and trained how to responsibly control alcohol risks. Many states require people serving alcohol to be licensed or certified to ensure they fully understand the serious business of serving alcohol. One goal of a license or certification is to prevent underage drinking. Another is to deal with the liability laws that allow a third party to sue the establishment, and sometimes the server, for injuries and suffering inflicted by an intoxicated guest. The belief is that trained, certified professionals serving alcohol will reduce the likelihood of a serious alcohol-related incident such as allowing an intoxicated person to drink and drive.

178 Chapter 10 – Food and Beverage Services Alcohol Service Training Training is a key element in beverage operations involving alcohol. Terms you It is the best way to ensure employees know who can legally be served, should know how to prevent underage drinking, and stop intoxicated guests from causing harm to others. Anyone appearing to be underage must be asked Ordinances—codes created to present a valid form of identification and determined to be legally of to clearly define how specific age to drink before being served any type of alcohol. Alcohol service regulations or laws will be training also teaches employees their responsibility for staying up-to- date on all current alcohol-related laws and ordinances. locally enforced.

For example, Controlling Alcohol Risks Effectively (CARE) is a training program created to meet the needs of the places and people responsible for serving alcohol to the public. This course trains servers, bartenders, and bar backs to: • Effectively monitor and control guests’ alcohol consumption • Intervene before a problem occurs • Follow ID-checking policies • Recognize false identification cards • Handle under-age guests • Describe the physical effects of alcohol • Explain the laws regarding alcohol service • Know how to apply the CARE® training in a beverage service operation

Chapter 10 – Food and Beverage Services 179 Section 10.10 Banquets, Catering, and Event Planning

nitially found in hotels and restaurants, one area of food and beverage erms you I operations that has become very profitable is the banquet, catering, T and event planning group. Today, hotel and resort food service providers should know are developing desirable locations such as museums, zoos, and other local attractions into venues for all types of banquets and catered special Audio-Visual—materials events. This is done by creating partnerships that allow for revenue and using sight or sound to marketing to be shared by the organizations involved. It also allows present information such event planners to choose from a variety of unique and entertaining as DVDs, PowerPoint dining experiences. How does a planner decide which type of service is presentations, or speaker- required? By determining the purpose of each event, such as: requested microphone sound systems. Banquets—a formal business dinner, charitable gathering, ceremony, or celebration that often involve awards or speeches to honor people or the reason for the event. Banquet service encompasses menu, room setup, audio-visual (A/V) needs, plus any additional support services.

Catering—food service at an on-site meeting or convention space, off-site locations, local attractions, and private homes. Typically, food is prepared in the catering kitchen location and moved to the catered event venue.

Special Events—high-cost organized events that tend to be very elaborate and involve multiple elements such as food, entertainment, and décor, often held at a hotel or specially chosen location at any time of day or night and typically built around a specific theme or concept.

180 Chapter 10 – Food and Beverage Services Layouts for Room Setup Typically, the event type will favor a particular room layout. However, variations on the layout can be made to create a more custom feel to the event and allow guests to feel it was built to meet their unique requirements. This can be done by placing tables and chairs in an unusual pattern or spacing within the banquet room. Some common types of room setups include: Banquet Setup This setup is the most common one for banquets or meetings where meals will be served. Chairs are placed around round banquet tables. The tables are usually 6 feet, 8 feet, or 10 feet in diameter. Do not overseat each table and make sure each guest has enough “elbow room” to eat comfortably. Banquet seating is commonly calculated based on round tables that will hold 10 people using 6-foot round tables. Banquet style allows for small group interaction at each table. Banquet seating is often used for dinner events, wedding receptions, awards ceremonies, or as a separate space for breakfast and lunch breaks. Theater Setup Theater floor plans typically line up rows of chairs and space aisles depending on the width of the room and the total seating needed. Some facilities have actual auditoriums, which make great spaces for formal presentations. Theater floor plans allow for the maximum number of people to fit into a large or small meeting/banquet room. Reception Room Setup Reception space typically includes numerous high boy tables throughout a room, as well as tables for banquet and bar services. This allows for guests to mingle and move easily about the room. Because it isn’t necessary for dedicated seating space, this will reflect the largest number of individuals who can fit into a smaller meeting room space. U-Shaped and Hollow Square Setup U-shaped floor plans lay out tables and seating to form a “U” toward the front of the room where the speaker will lead a discussion. This allows A/V to sit in the center of the “U” and project to a screen next to the speaker. The hollow square setup is very similar to the U-shape. The major difference is that both ends are closed. This arrangement can accommodate more guests and is generally geared more towards discussions. Classroom Setup Classroom layout includes rows of tables and chairs. Six-foot tables can comfortably hold two people while eight-foot tables can easily hold three people. The tables are typically arranged in rows joining two tables in length with an aisle for people to access the seats running down the middle of the room.

Chapter 10 – Food and Beverage Services 181 Diagram of the Room Setup

Banquet Theater Reception

U-Shape Classroom

Round Table Seating Capacities Rectangular Table Seating Capacities

36-inch table seats four people 24-inch x 60-inch table seats two people

42-inch table seats five people 24-inch x 72-inch table seats three people

48-inch table seats five people 24-inch x 96-inch table seats four to five people

54-inch table seats six people 30-inch x 72-inch table seats six people

60-inch table seats eight people 30-inch x 96-inch table seats eight people

72-inch table seats ten people

182 Chapter 10 – Food and Beverage Services Section 10.11 Food and Beverage Green Practices

ood service operations can readily go green by making sure they are F in compliance with all environmental regulations, adopting pollution prevention methods, and using resource conservation practices. The top green practices for food service operations are:

Conserve Energy and Water 1. Use low-flow pre-rinse spray nozzles at the dish machine. Use Energy Star compact fluorescent lamps (CFLs) instead of incandescent bulbs in storerooms, break rooms, offices, wall sconces, kitchen exhaust hoods and walk-in refrigerators. 2. Use ultra low-flow toilets and flow restrictors on restroom faucets.

Reduce, Reuse, Recycle 3. Buy products in returnable, reusable or recyclable containers. 4. Recycle cardboard, paper, glass, metal and plastics, and food (donate leftover cooked food to a local shelter and look for a local composting site when disposing of food waste, waxed cardboard, paper napkins, paper beverage cartons, and wooden crates). 5. Recycle cardboard, paper, glass, metal and plastics, and food (look for a local composting site when disposing of food waste, used cooking oil, waxed cardboard, paper napkins, paper beverage cartons, and wooden crates). 6. Use takeout containers that can be composted (paper) or recycled (#1 and #2 plastics, aluminum) instead of Styrofoam™.

Pollution Prevention 7. Properly maintain grease traps and kitchen hoods to prevent overflows and emissions to the sewer and storm drain systems. 8. Keep outdoor waste storage, parking, and sidewalks free of litter, grease spills and other potential pollutants. Use sweeping and spot cleaning for most clean ups. If washing is needed, use a cleaning method that keeps cleaning water out of storm drains. 9. Use organically or sustainably produced foods in the kitchen.

Chapter 10 – Food and Beverage Services 183 Apply Your Learning

Section 10.1 1. How many more jobs are expected to be added to the restaurant industry over the next ten years? 2. List the three main market groups food and beverage operations are typically divided into. 3. How does the restaurant industry rank in the United States as a source for jobs? Section 10.2 1. List the five main categories restaurants fall into. 2. Why would a family of five choose to eat at a quick-service restaurant on a school night? 3. Who does a fine-dining experience appeal to and why? 4. What type of hotel might operate all five categories of restaurants and why would each be necessary to the hotel’s profitability? Section 10.3 1. List the two segments the guest cycle for food and beverage is divided into. 2. List what occurs in segment 1. 3. List what occurs in segment 2. Section 10.4 1. What are the four key items a food and beverage operation needs to control? 2. What is the purpose of a standard recipe? 3. Why must all ingredients, labor, and other expenses be included when calculating food costs? Explain your answer. 4. If the food cost for a hotdog is $0.78 and the snack bar selling them needs to make a profit percentage of 38 percent, what should be the price point for this item? Show how you calculated the amount. Section 10.5 1. List three types of access a guest with disabilities may need when dining at a restaurant. 2. What areas of a restaurant will guests with disabilities need to access? 3. What must a dining table allow a guest in a wheelchair to do? 4. Should all wheelchair access tables be located in the same section of the restaurant? Explain why you think it is a good or bad idea. 5. Explain how to accommodate a guest with a service animal.

184 Chapter 10 – Food and Beverage Services Chapter 10 – Food and Beverage Services Section 10.6 1. What does the acronym SRM stand for? 2. Explain why food safety is so important? 3. How can food safety and sanitation issues be prevented? Write a brief paragraph using complete sentences. 4. What does HACCP stand for? 5. What is the purpose of a CCP? Explain your answer. 6. Why does a HACCP plan need to be in writing? Write a brief paragraph using complete sentences. Section 10.7 1. List the four main styles of table service and the purpose of each. 2. Who would family-style service appeal to and why? 3. If you owned a hotel, would you offer guests a breakfast buffet and why? 4. Which type of table service style would you expect to find in an exclusive fine-dining restaurant and why? 5. Explain the purpose the production staff serves in a restaurant. Write a brief paragraph using complete sentences. Section 10.8 1. What is the goal of all food and beverage facilities and why is it so important? 2. What is a critical element in kitchen operation and why? 3. Describe why teamwork helps to coordinate the food production employees. Section 10.9 1. Why is serving alcohol a serious responsibility for servers and bartenders? 2. What is the purpose of a dram law? 3. Who can be held liable for allowing a person to drive while under the influence of alcohol (DUI)? 4. Who decides if a person is too intoxicated to drive? 5. What is the minimum drinking age and what item should a bartender request to prevent underage drinking? Explain your answer. Section 10.10 1. What is the purpose of hosting a banquet event? 2. A guest wishes to host a party at the local science center using a cosmic theme. They also want fireworks, a live band on stage with dancers, and appetizer-only menu. Which of the three types of events would you consider this and why? 3. List who you think you would need to involve in planning the event described in question 2. 4. A guest wants to host a small reception with light appetizers and a wine bar for 50 people. Create the room setup and layout that you would suggest to the event’s organizer. Section 10.11 1. How could food be recycled? 2. Where could water conservation be practiced in a food and beverage operation? 3. Is the choice of paper products used in a food and beverage operation important and why? 4. List three ways to prevent pollution in a food and beverage operation.

Chapter 10 – Food and Beverage Services 185 Chapter 11 Resort Operations

XXSection 11.1 Introduction XXSection 11.2 Resorts XXSection 11.3 Cruise Lines Competencies XXSection 11.4 1. Identify the purpose of resorts, cruise lines, Recreational Vehicles and recreational vehicles, and tent camping in the Tent Camping hospitality and tourism industry. 2. Identify the types of resorts and the target XXSection 11.5 guest markets attracted to each type. Off-Site Partners 3. Identify the role of cruise ships in the hospitality and tourism industry, the types of ships, and the target guest market for each type. 4. Identify the role of recreational vehicles (RVs) and tent camping in the hospitality and tourism industry, the type of RVs available, and the target guest market for both RVs and tent camping travel. 5. Explain the purpose of using internal resources for sources of guest experiences and the purpose of building strong partnerships with outside businesses, agencies, and other sources for guest activities.

186 Hospitality Profile

Jonathan Tisch Chairman Loews Hotels Jonathan M. Tisch has been chairman of Loews Hotels since 1989. He is co-chairman of the Board of Directors and a member of the Office of the President of Loews Corporation, the parent company of Loews Hotels. Mr. Tisch is widely recognized as an advocate on behalf of the multi-billion dollar travel industry and serves as chairman emeritus of the U.S. Travel Association, the national non-profit association representing all segments of the travel industry. Mr. Tisch served as chairman of NYC & Company, New York City’s official tourism marketing agency and convention and visitors bureau. Concurrent with his national efforts to help stimulate travel and tourism in the aftermath of September 11th, Mr. Tisch served as chairman of New York Rising, a task force committed to reviving tourism in New York City. In recognition for his leadership and civic involvement, Crain’s New York Business named Mr. Tisch one of the “Top Ten Most Influential Business Leaders.” He was also named “CEO of the Year” by the Executive Council of New York in 2006.

187 Section 11.1 Introduction

esorts, cruise lines, camp grounds, and recreational vehicle sites tend to be in locations where the R climate, scenery, recreational areas, theme parks, or historical significance make it a desirable tourist destination. Historically, resorts were large properties with extensive landscaped grounds, hiking trails and gardens, and sports facilities featuring golf and tennis. The guests they primarily attracted were ones who could afford the expense of a resort stay. Cruise lines focused on attracting the very wealthy, while campgrounds appealed to travelers on a tight budget, and recreational vehicle travel attracted people wishing to explore in comfort. Today’s guests have a wide variety of choices available when selecting the types of accommodations and activities that best fit their lifestyle and personal preferences. Resorts and other non-traditional accommodations can be large or small; busy, mobile, quiet, or secluded; have all-inclusive amenities, personalized services, or the comforts of home. It all depends on the type of travel experience the guest wishes to have. Another area that has gained popularity over the past few decades is the expansion of the types of activities guests can choose. Traditionally, guest activities were limited to offerings such as golf or tennis. Today, however, they can range from cultural tours, to cooking lessons featuring local cuisine, to organized visits to nature centers and museums. Guests seeking to stay in a resort, or use nontraditional travel options, typically want to immerse themselves in a memorable guest experience.

188 Chapter 11 – Resort Operations Section 11.2 Resorts

arly resorts were built as summer retreats that allowed guests to E escape the heat of the city. Most were near water or in mountainous erms you areas for the cooler climates they offered. Entertainment and fine dining T were, and still are, significant parts of resort operations, and are often should know key elements in attracting guests. Today, a resort’s guest base will also vary according to the season. This means resorts must offer a year-round Group Market—business a menu of activities and experiences that will attract a wide variety of hotel receives through an guests to the property. outside event planner or tour Recently, business travelers have become a major market for resort operator wishing to book hotels. This has resulted in resorts expanding their efforts into attracting room nights, meals, and other the group market and meeting market. This is done by creating spouse hotel services for a business, and family activity options so the group can enjoy a working vacation as family, or tour group. well as offering the typical banquet, meeting, and special event venues. Meeting Market—business a Types of Resorts hotel receives from an outside Many resorts offer a specialized experience such as: organization, business, or association wishing to Spa Resorts book meeting/convention/ Water has historically been a large part of the spa experience. Even conference room services. today, spa resorts emphasize the value of water as part of the healing experience. This is accomplished by surrounding the guest with physicians, instructors, nutritionists, massage therapists, and spa products, all selected to promote health and wellness. Other key elements in the spa resort experience are: • Fitness • Stress management • Pampering and relaxation • Health and wellness

Chapter 11 – Resort Operations 189 Ski Resorts Terms you The modern Olympics should know drew attention to what was traditionally a European winter sport. By the 1960s, All-Inclusive—a resort where resorts located in mountainous the cost of all lodging, meals, areas around the world airport transfers, spa services, (traditionally closed for the and activities are bundled winter) started developing into a package price. ski runs, installing ski lifts, improving road access, and putting safety measures in place so they could expand into year-round operations. Today, ski resorts are estimated to bring in $3.5 billion in revenue per year. All-Inclusive Resorts All-inclusive resorts were created to meet the needs of guests looking for a destination vacation that offers a stress-free atmosphere, dining option choices, and plenty of activities at a set price. Typically, this type of resort appeals to guests who want to prepay the total cost of the trip during the pre-arrival stage of the guest cycle. To accommodate this type of guest, each resort will offers a variety of guestroom packages ranging from a deluxe guestroom to a suite featuring a personal butler and chef. Guests select the package that fits their budget, book the dates, and make payment to the resort. After booking, guests will receive a detailed “menu” of choices that allows guests to know precisely what the: • Accommodation packages include (lodging, meals, activities, taxes, Pineapple tips, entertainment, and more). Fun Fact • Types of recreational activities offered in the package (golf, tennis, sailing, parasailing, or diving). • Types of entertainment included (local tours, cultural activities, crafts, parties, and shows). Once guests are on site, they can enjoy the items covered by their package through use of a key card. The card is coded by the front desk during check-in with the chosen package’s room, dining, activities, and entertainment options. Guests are asked to charge each transaction back The resort with the largest to their room using this card. number of rooms in the Employees process the card like world is Genting Highlands a payment card into the POS Resort in Malaysia. It has system. The POS will then report 6,118 rooms. To keep the guest activity to the PMS for guests entertained, there posting to the guest’s folio each are more than 80 shops, day. If a guest dines or uses a 90 restaurants, one service outside what the package cinema, a casino, a 50- covers, a charge will be posted room karaoke bar as well to the guest folio for settlement as two theme parks. at departure

190 Chapter 11 – Resort Operations Section 11.3 Cruise Lines

ruise ships are floating resorts that have gained in popularity over the past 40 years. Cruises appeal C to anyone looking for an all-inclusive vacation where they can arrive, unpack, relax, and enjoy. Typically, cruise prices include meals and in-between snacks on board; a stateroom, activities, parties and entertainment; plus an exciting voyage to some of the most enchanting and culturally-enriching places in the world. It is important to note that the cruise industry has one the highest guest satisfaction scores, and repeat business ratings, in the hospitality and tourism industry.

Chapter 11 – Resort Operations 191 Types of Cruise Ships Cruise excursions occur on seas, oceans, rivers, and lakes all around the world. A variety of ships exist in order to meet the needs of guests looking for both conventional and unconventional cruise experiences. The types of cruise ships include: Mainstream Cruise Ships The most popular type cruise ship which is capable of carrying 850-3,000 passengers and includes all sorts of standard resort features, amenities and services such as restaurants, bars and pubs, nightclubs and discos, shopping areas, theaters and cinemas, galleries and museums, libraries, casinos, personal care areas with gyms and spas, swimming pools and other sport facilities. Mega Cruise Ships This is the largest and most sophisticated type of cruise ship with the capacity to carry 3,000-5,000 passengers. The mega cruise ship offers a level of luxury only the most exclusive land-based resorts can match. This ship features world-class entertainment and celebrity chefs along with all the luxury amenities expected from guests seeking this type of experience. Small Cruise Ships This type of cruise ship can range from motor- or sail-powered yacht-like vessels to medium-sized classic cruise ships with a capacity up to a few hundred passengers on board. The small cruise ship focuses on providing more intimate and relaxing experiences while traveling to less familiar destinations. It is designed to provide specific services (ecotourism, culture or history cruises, etc.) or as the only way to navigate through waters, small inlets, ports, or archipelagos that would not support larger vessels, while still providing the same level of comfort and basic amenities as that of mainstream cruise vessels. Ocean Cruise Ships This type of cruise ship is built to more exacting standards than more conventional vessels, with a substantially stronger design and structure. An ocean cruise ship is constructed to withstand the harsh deep-water conditions of an ocean crossing during long voyages such as an around-the-world cruise. Luxury Cruise Ships This is a motor- or sail-powered ship equipped with the most sophisticated and technologically advanced nautical systems, high standard features, and luxurious guest comforts to meet the special demands of an exclusive and wealthy clientele looking for longer itineraries and more exotic destinations around the world.

192 Chapter 11 – Resort Operations Adventure Cruise Ships Cruise ships designed and equipped to provide services that include visits to remote destinations that are commonly out-of-the-way or inaccessible to larger vessels. Marketed to a very specific type of guest wishing to visit unusual destinations, these small boats are able to venture into remote areas, anchor, and allow guests to privately interact with the location’s people, wildlife, or wild places. Adventure cruise ships are far smaller than mainstream vessels, usually sail-powered, and are only able to accommodate six to eight guests in small but comfortable cabins. Expedition Cruise Ships This is a specially-designed ship, or adapted research or icebreaker vessel, operated by specialized companies. An expedition cruise ship offers customers an exclusive experience in remote destinations and waterways such as the Arctic and Antarctic regions or coastal areas in ecological and environmentally sensitive reserves. The ship provides an adequate level of comfort, safety, and services. River Cruise Ships Always smaller than seagoing cruise ships, and with a capacity for no more than a few hundred passengers, this vessel is specially designed to navigate rivers and inland waterways. The river cruise ship offers exciting experiences ranging from onboard ultra high-tech units, to nostalgic trips on paddleboat ships in rivers such as the Amazon, Nile, Rhine, Seine, Volga, Mississippi, Yangtze, and many more.

Chapter 11 – Resort Operations 193 Section 11.4 Recreational Vehicles and Tent Camping

xploring the great outdoors on state lands, national parks, nature preserves, and other wild places E are the key elements in the continued popularity of recreational vehicle (RV) and tent camping because they appeal to guests who enjoy outdoor activities and a healthy, active lifestyle. In particular wildlife watchers, hunters, paddlers (canoes and kayaks), and hikers find RVs and camping the perfect way to travel. Consequently, a huge RV and camping industry existing within hospitality and tourism to support the guest demand. Recreational Vehicles (RV) Motor homes, travel trailers, folding camping trailers, and truck campers all make up the types of vehicles classed as recreational vehicles (RV). They are designed as temporary living quarters for recreational camping, travel, or seasonal use. Today, it is estimated that more than 8 million households own an RV. The attraction to RVs is affordable travel. Studies by the RV industry show the cost of a trip for a family of four in a RV can range from 30-50 percent less than if they were to travel by car, stay in hotels, and eat in restaurants. The savings vary depending on the type of RV used and do factor in the high cost of gasoline. Guests who see the journey as the experience are the main target market for RV travel. Tent Camping Old school camping in the form of pitching a tent, relaxing around the campfire, and taking all the natural world has to offer is still a popular component in hospitality and tourism. Campgrounds on the beach, in the mountains, forest, and by a lake average 33.7 million guests per year. Tent camping is a very inexpensive way to travel and experience various destinations such as National Parks or wildlife refuges. However, the reason most people give for going camping is to have fun and relax. The two most popular activities are swimming and hiking during a camping trip.

194 Chapter 11 – Resort Operations Section 11.5 Off-Site Partners

ne element that guests look for when selecting a type of resort, cruise ship itinerary, RV, or tent O camping venue is the type of available activities. Typically, this helps guests to make their final choice and, therefore, is an aspect of resort and nontraditional operations that should be well planned. Identifying guest preferences is the key to success. Once the research on what guests want to do is complete, it is important to begin developing a variety of guest choices using all available resources. This includes local vendors for activities such as white water rafting or local tours. Often the recreation department is responsible for overseeing guest activities but that will vary by operation. Guest activities, or programming as it is sometimes called, should first explore available resources within the resort or non-traditional operation. Recruiting employees with special skills is a common method for providing interesting guest activities. Another method is to reach out to the local community and partner with businesses, agencies, or other sources for guest activities. Often, these outside vendors are already in the guest activity business and have the experience, training, and expertise necessary to meet guest recreational needs. For example, guests at a resort have asked the concierge if there is anywhere to go whitewater rafting. The resort has already set up an agreement with a local outdoor shop as a provider of rafting experiences. The concierge is quickly able to set up a trip for the guests. Without the agreement, the concierge would have had to provide the guest with a list of local providers of rafting adventures. The guests would have had to book the trip for themselves. Guests will see this as poor guest service by the resort. Another bonus is the revenue-sharing agreement between the resort and the vendor, which ensures both profit from the partnership. What types of activities do guests typically expect?

Chapter 11 – Resort Operations 195 Activities can include: Sports and Recreation • Water and snow skiing • Jogging • Fitness center • Swimming • Golf • Tennis • Volleyball • Fishing • Wave runner and sailboat rentals • Bike rentals • Parasailing • Aquacycle paddle bikes • Kayak and canoe rentals • Boat rentals • Beach service Cultural and Other Tour Operators • Eco tours (dolphin, stingray, sea turtle encounters, reef visits, etc.) • Cultural tours • Trolley tours • Lighthouse tours • Horse-drawn carriage tours • Charter fishing • Kayak and rafting tours • National and state parks service • Casino and dining cruises • Vineyard and wine-tasting tours

196 Chapter 11 – Resort Operations Transportation Many transportation providers also offer guest experiences such as: • Bus tours • Train tours • Helicopter tours • Mountain gondola adventures • Cable car or trolley car adventures • Monorail (Disney, Las Vegas, and Seattle) • Ship or boat tours • Segway™ city tours • Limousine tours

Chapter 11 – Resort Operations 197 Apply Your Learning

Section 11.1 1. What part of resort and other non-traditional operations has gained popularity over the past few decades? Write a short paragraph, using complete sentences. 2. What type of destinations are resort and non-traditional accommodation guests attracted to? Explain your answer. 3. In the past who was most likely to take a cruise and why? Section 11.2 1. What makes a resort different from an airport hotel? 2. Why would a business traveler be attracted to a resort hotel? 3. List the three specialized types of resort and the target guest market for that type. 4. List what is included in an all-inclusive resort price point. Section 11.3 1. List the eight types of cruise ships and the target guest market for that ship. 2. Why is cruise ship travel so attractive to guests? Explain your answer. 3. List the type of waterways on which cruises are known to be operated. 4. If you wanted to visit Antarctica, what type of cruise ship would you select? Explain why that is the best choice. 5. If you wanted to cross the Atlantic Ocean to visit England, what type of cruise ship would you choose? Explain your answer.

198 Chapter 11 – Resort Operations Section 11.4 1. Why do guests choose to own and travel using recreational vehicles? 2. Who is attracted to tent camping? Explain your answer. 3. What does the acronym RV stand for and what type of travel options does it offer? 4. What type of destinations do RV and tent camping guests choose to visit and why? 5. What are the most popular activities for guests who RV or tent camp? Section 11.5 1. What is the key reason cited by guests when deciding to visit a resort, take a cruise, go on a trip in a RV, or take a tent camping trip? Explain your answer. 2. List three things you would enjoy doing on a camping trip. Explain your choices. 3. List three types of transportation-based guest experiences you would enjoy. Explain your choices. 4. List three cultural activities you would enjoy on an RV trip. Explain your choices.

Chapter 11 – Resort Operations 199 Chapter 12 Operational Finance

XXSection 12.1 Introduction XXSection 12.2 Revenue Centers vs. Cost Centers XXSection 12.3 Introduction to Night Audit Competencies XXSection 12.4 1. Identify the financial goal of a hotel or Night Audit Calculations lodging property. 2. Identify the key difference between a revenue XXSection 12.5 center and a cost center along with the areas Yield Statistic belonging to each. 3. Identify the steps required to complete a XXSection 12.6 night audit and the role of the night auditor Financial Impact of Green Practices in the process. 4. Identify the purpose of the occupancy percentage (OP), average daily rate (ADR), and revenue per available room (RevPAR) as key night audit calculations. 5. Explain the purpose of calculating the yield statistic each day and the reason for comparing it to the occupancy percentage. 6. Identify green practices which will reduce a hotel’s carbon footprint and also reduce operating costs.

200 Hospitality Profile

Joori Jeon, CPA, CAE Executive Vice President AH&LA Joori Jeon is executive vice president and chief financial officer for AH&LA, and president and COO of its not-for- profit affiliate, the American Hotel & Lodging Educational Foundation (AH&LEF). As the senior financial executive of the largest trade association representing every sector of the U.S. lodging industry, Ms. Jeon oversees the association’s $22 million operating budget. Her overall responsibilities include establishing financial policies and practices; directing and coordinating finance, human resources, and office administration; and developing and implementing a budget to support the association’s strategic plan. As president and COO of AH&LEF, the charitable-giving, fund-raising, and endowed fund-management subsidiary of AH&LA, Ms. Jeon is responsible for raising the foundation’s profile as the premier charitable fundraising engine of the industry.

201 Section 12.1 Introduction

he scope of operational finance in the hospitality and tourism industry erms you T will vary according to the specific type of business involved. The T financial goal of any hotel is to make a profit, and it takes the efforts of should know all employees to make that happen. Because each segment of the industry has its own way of processing operational finances, this chapter will focus Rack Rate—the term which on the methods used by hotels. represents the highest The rooms division is responsible for producing revenue from the possible rate a guest may be sale of guestrooms. The front office must oversee the monitoring and charged for a room. measuring of how successful the division is at generating a profit. Hotels must sell rooms at the most profitable room rate possible and measure Night Audit—the nightly daily how well the employees are selling those rooms at or near full rack process that checks, corrects, rate. The front office employees who book guestrooms will be asked for and balances all accounts for discounted room rates and must know when and how to apply those lower registered hotel guests. rates. Balancing guests’ requests for lower rates with the hotel’s need to remain profitable is achievable if all operational financial transactions are monitored, tracked, and reported using the night audit process. Larger hotels will also need to measure the profitability of the food and beverage department. Often, the restaurant and catering areas will produce the second largest amount of profit for a hotel after the sales of rooms. However, this chapter will focus primarily on the front office financial practices found in the hotel and lodging industry, particularly, the role of revenue centers and the night audit process.

202 Chapter 12 – Operational Finance Chapter 12 – Operational Finance Section 12.2 Revenue Centers vs. Cost Centers

ot all areas or departments in a hotel generate revenue. Some departments are considered revenue N centers while others are considered cost centers. The difference between the two is significant and plays a large part in how financial decisions are made in a hotel.

Revenue center—generates income for the hotel through the sale of services or products to guests. Revenue centers include: • Rooms • Food and beverage • Sales • Concessions, rentals, and commissions • Fitness and recreation facilities

Cost center—does not directly generate income but acts as a support center to the areas producing revenue. Cost centers include: • Marketing • Facilities management/engineering • Accounting • Human resources • Security

Pineapple Fun Fact

Hospitality and tourism generates approximately $100 billion in tax revenue for local, state, and Federal governments in the U.S. each year. If you were to place 100 billion dollar bills end to end, the line of cash would circle the Earth 397 times.

Chapter 12 – Operational Finance 203 Section 12.3 Introduction to Night Audit

s the key revenue center, the front office is responsible for generating erms you A the largest portion of a hotel’s profits. In order to maintain revenue T at the highest level possible, the night audit process monitors, posts, and should know calculates the day’s financial activity. Traditionally, guests do more than sleep when staying in a hotel. They Guest Folio—account will also eat, shop, and have fun. In order to make the guest experience as balanced daily by the night seamless as possible, most properties allow guests to charge the expense auditor and used to report of food, merchandise, and recreation back to their room. This means each guest’s financial they add those costs and expenses to their guest folio during each day transactions. of the stay. Because of this activity, the night audit acts as the control process for updating all financial activity to each guest folio (cash and Guest Ledger—collection of credit). This ensures each transaction is recorded and the guest account all guest folio accounts for balanced. It is the most accurate way to guarantee the guest bill is correct registered guests completed and ready for settlement when the guest departs. Once all the guest folios by the night auditor and have been updated, the auditor must begin posting those totals to the used to measure a hotel’s guest ledger. The purpose of the guest ledger is to collect all charges profitability. into one document for reporting to the accounts receivable section of the accounting department. The guest ledger totals will indicate if the hotel Guest Credit Limits—the was operating at a profit or loss for the day. maximum amount of money An effective audit increases the probability of accurate account held in a guest’s folio account settlement. As the name implies, night audits are conducted late at to cover expenses during night during the time the hotel experiences the lowest guest demand the stay, commonly used for services. Typically, hotels are busiest during the day and evenings. by business travelers with This makes night time the perfect time to perform the close-of-business the credited dollar amount activities covered by the night audit and to reopen accounts for the next prepaid to the hotel by his or day of business. her company. Purpose of Night Audit The main purpose of the night audit is to verify the accuracy and completeness of the guest folios and compare them against the departmental transaction reports. Specifically, the night audit is focused on: 1. Verifying all posted entries to guest and non-guest accounts 2. Balancing all front office accounts 3. Resolving room status discrepancies 4. Monitoring guest credit limits 5. Producing the night audit reports 6. Recording the close of one business day and the opening of the next day’s business

204 Chapter 12 – Operational Finance Chapter 12 – Operational Finance The night audit process also allows the hotel to gain a clear picture of: • How well business was conducted for that day • The profit earned or losses incurred • The cost of doing business and where expenses occurred

Roles of Night Auditor The night auditor must be capable of paying close attention to accounting details, use appropriate methods, and track guest credit restrictions. The auditor must clearly understand the affect of guest transactions on the front office accounting systems. Night auditors are expected to: Calculate • Room revenue • Occupancy percentage • Average daily rate (ADR) • Revenue per available room (RevPAR) Prepare • Summary report of front desk cash transactions • Summary report of front desk credit card activity • Report data showing the front desk’s financial performance for the day • Summary report on front desk operation to management

Steps in the Night Audit The night audit is typically completed using a Property Management System (PMS) and other computerized technology. However, it is necessary for front office employees to be capable of completing the night audit manually in case of an emergency situation. The night audit has a sequence of steps that should be followed to ensure it is completed correctly. Guest Folio

Guest Name: John D. Smith Account No. 0043517 Step-by-Step Guide to Night Audit Room: 317 Rate: 109 Arrival Date: 3/15

Date 3/15 3/16 3/17 3/18 Step 1: Update guest folio: Balance Forward 186 94 337 36 627 76 Room 109 00 109 00 109 00 Sales Tax 7 64 7 64 7 64 • Post the day’s room rate. Restaurant 56 31 98 77 • Calculate and post sales tax. In-Room Dining 21 44 Merchandise 12 35 • Post the day’s financial transactions such as: Bar ₋₋ Restaurant charges Recreation 75 00 Local ₋₋ In-room dining Long Distance ₋₋ Merchandise purchases Telegrams ₋₋ Bar charges Laundry - Valet 14 00 14 00 ₋₋ Recreation charges Cash Disburse ₋₋ Phone calls (charged to guestroom on hotel phone system) Total 186 94 ₋₋ Laundry-valet charges Less: Cash Carried Fwd. 186 94 337 36 627 76 ₋₋ Other costs

Chapter 12 – Operational Finance 205 Step 2: Balance each guest folio: • Total all charges for each day of the guest’s stay. • Subtract any cash paid by guest toward the bill (post cash amount on date it was paid). • Post the amount carried forward to the next day’s column. • Calculate the amount to be carried forward to that day’s guest ledger sheet for each day.

Sample Guest Folio: A guest is staying for three nights and checking out on March 18th.

Guest Folio

Guest Name: John D. Smith Account No. 0043517 Room: 317 Rate: 109 Arrival Date: 3/15

Date 3/15 3/16 3/17 3/18 Balance Forward 186 94 337 36 627 76 Room 109 00 109 00 109 00 Sales Tax 7 64 7 64 7 64 Restaurant 56 31 98 77

In-Room Dining 21 44 Merchandise 12 35 Bar Recreation 75 00

Local Long Distance

Telegrams Laundry - Valet 14 00 14 00 Cash Disburse

Total 186 94 Less: Cash Carried Fwd. 186 94 337 36 627 76

206 Chapter 12 – Operational Finance Tracks all guest transactions for one business day. Guest charges for each department are posted and totaled during the night audit process.

Guest folio previous day’s balance. Guest Folio Template

Guest Name: Account No. Room: Rate: Arrival Date:

Date 4/7 4/8 4/9 4/10 4/11 Balance Forward Room Sales Tax Restaurant

In-Room Dining Merchandise Bar Recreation

Local Long Distance

Telegrams

Posting of charges in guest folio for each business day. Laundry - Valet Cash Disburse

Total Less: Cash Carried Fwd.

Total of balance carried forward, room rate, sales tax, and other posted charges in left hand boxes.

Cash amounts paid by guest in order to reduce amount carried over on nal bill.

Balance to be carried over to the next day on the guest folio and to the guest ledger for the opening of the next business day.

Chapter 12 – Operational Finance 207 Step 3: Update the guest ledger: • Bring the previous day’s balance forward and enter it in the designated column. • Enter the daily room rate in the designated column. • Enter the daily sales tax in the designated column.

Cash amounts paid by guest in order to reduce amount carried over on nal bill. Tracks all guest transactions for one business day. Guest folio charges are posted in each department’s Total of balance carried forward, room Refunds credited to guest folio Balance to be Guest folio previous day’s column and totaled. carried over to Guest Ledger Template rate, sales tax, and other posted charges or advance deposit amount balance for each guest. in left hand boxes. credited to the guest folio. guest ledger for opening of next Hotel Name: business day Date: (amount should match balance Balance Telephone Balance carried over for Room No. Carried Room Sales In-Room Long Total Carried next day on No. Guests Name Forward Rate Tax Restaurant Bar Dining Local Dist. Laundry Recreation Merchandise Charges Cash Transfers Allowances Forward guest folio as well). 317 Smith, John 186.94 109.00 7.63

238 Davis, Chris 614.07 169.00 11.83 Amount used to 237 Jones, Mary 172.94 109.00 7.63 open the guest folio for the next business day. Amount in this column must match the numbers shown for that day in the guest folio carried forward column.

House Total 973.95 387.00 27.09

City Ledger

Accounts 387.00 27.09 Receivable Total

208 Chapter 12 – Operational Finance Step 4: Total the guest ledger: • Add the Balance Carried Forward column and post the total in the House Total box. • Add the Room Rate column and post the total in the House Total box. • Add the Sales Tax column and post the total in the House Total box.

House Total 973.95 387.00 27.09

City Ledger

Accounts 387.00 27.09 Receivable Total

Chapter 12 – Operational Finance 209 Step 5: Calculate the Accounts Receivable total: Terms you • Enter the City Ledger Control Folio balance in the designated should know box. • Enter the in both the City Ledger Control Folio— Balance Carried Forward column and the Total Charges column (as indicated by <> brackets). the amount posted as the balance due from all • Subtract the from the individual guests, groups, and City Ledger Control Folio balance. companies, also known as the • Add the amount remaining in the City Ledger Control Folio to City Ledger. the House Total. • Post the total in the Accounts Receivable Total column. —the amount Sample Calculation of Accounts Receivable Total posted for all advance 109.00 7.63 deposits or prepayments received from guests for City Ledger Control Folio balance is 169.00 11.83 that date, also known as the entered in the row labeled City Ledger. 109.00 7.63 Advance Deposit. amount is entered in the row labeled Advance Deposit.

House Total 973.95 387.00 27.09

City Ledger 25,000.00

<2,136.00>

Accounts 23,837.95 387.00 27.09 Receivable Total

How to calculate Accounts Receivable total: <000.00> The brackets on City Ledger 25,000.00 each side of the numbers indicate subtraction needs – Advance Deposit <2,136.00> to occur. 22,864.00 Balance + House Total 973.95 23,837.95 Accounts Receivable Total

210 Chapter 12 – Operational Finance Chapter 12 – Operational Finance Section 12.4 Night Audit Calculations

nce the night auditor has updated each guest folio and posted guest charges to the guest ledger, O the next task involves completing three hotel accounting calculations. The most important of the three is revenue per available room (RevPAR), which measures how well the hotel is performing financially. However, in order to calculate the RevPAR, the auditor must first determine the hotel’s occupancy percentage (OP), which measures how well the hotel is at attracting guests to the property, and average daily rate (ADR), which determines the nightly average price for rooms sold. Both make up the key pieces of information needed to measure the daily financial performance of the hotel.

Sample Hotel Accounting Calculations

Occupancy Percentage (OP) Measures how successful the hotel is in attracting and selling rooms to guests: Number of Rooms Occupied X 100 = Occupancy Percentage Number of Rooms Available 200 Rooms Occupied Sample OP calculation: = 0.571 x 100 = 57% OP 350 Rooms Available

Average Daily Rate (ADR) Determines the average price for rooms sold each night. The formula for calculating ADR is: Daily Room Revenue = ADR Number of Rooms Sold $50,000 Revenue Sample ADR calculation: = $250.00 ADR 200 rooms sold

Revenue per Available Room (RevPAR) Measures nancial performance of a hotel based on the number of rooms sold against the number of rooms available for sale. The formula for calculating RevPAR is: Average Daily Rate X Occupancy Percentage = RevPAR

Sample RevPAR calculation: $250.00 ADR x 0.57 OP = $142.50 RevPAR

Chapter 12 – Operational Finance 211 Section 12.5 Yield Statistic ront office staff are expected to sell rooms at the full rack rate unless the guest qualifies for an F authorized rate such as corporate, government, American Automobile Association (AAA) discount, or others special promotions. In order to determine if the sale of room nights is at the most profitable rate, the front office manager will need to calculate the yield statistic. The closer the yield statistic is to 100 percent, the better the hotel is performing. The front office manager will also compare the yield statistic to the occupancy percentage. This allows the manager to see how many rooms had to be sold in order to achieve the yield statistic. The yield statistic is calculated by determining the ratio of the revenue generated by the actual number of rooms sold against the potential revenue the hotel could have made if all rooms of every size and type had sold at full rack rate. The formula for calculating the yield statistic is:

Actual Rooms Revenue X 100 = Yield Statistic Potential Rooms Revenue

Sample Yield Statistic Calculation

A hotel has: Types of Rooms Rack Rate Actual Rooms Sold Actual Rate Sold 300 Standard $119.00 215 $ 99.00 100 Deluxe $159.00 25 $119.00 50 Jr. Suites $259.00 10 $200.00 50 Executive Suites $400.00 15 $325.00 500 Rooms Total $84,550.00 265 $31,135.00

$31,135.00 = 0.368 X 100 = 37% Yield Statistic (rounded up) $84,550.00 265 rooms sold = 0.53 X 100 = 53% Occupancy Percentage 500 rooms available Looking at the sample yield statistic calculation, it is clear the hotel is only generating 37 percent of the revenue it is capable of producing. Using this number, the hotel manager and employees can easily see they are not successfully selling rooms at a high enough rate. The occupancy percentage also indicates they are selling over half the rooms available at the hotel, which should have everyone asking themselves why the yield statistic and the occupancy percentage are so far apart. The financial goal is to have both showing the same percentage. In order to reach this goal, they must now question how they can improve the yield statistic since the occupancy percentage shows the hotel is successfully selling rooms. Consequently, the next step must be for all employees to plan a better strategy for selling room nights at a more profitable rate.

212 Chapter 12 – Operational Finance Chapter 12 – Operational Finance Section 12.6 Financial Impact of Green Practices

otels have large heating and cooling systems, use huge amounts H of paper products, provide guests with amenities that are barely erms you used, and consume vast amounts of fresh water. Each costs the hotel a T lot of money which reduces profits. However, hotels have found that by should know going green—using available resources in an environmentally friendly fashion—they can reduce the property’s carbon footprint and operating Carbon Footprint—the costs. measurement of the amount By using low-use water devices such as low-flush toilets, water costs of greenhouse gases produced are reduced; lowering guestroom thermostat temperatures saves on through the use of fossil energy consumption; and giving leftover items such as food, guest soap, fuels for electricity, heating, and shampoo to local agencies in need gives the items new life and gains cooling, and transportation. a charitable donation tax deduction for the property. Reusing products, recycling plastic or aluminum, and reducing waste is a win-win for both Gray Water—wastewater the environment and hotel operating costs. created by activities such as doing laundry, dishwashing, Cost Effective Green Practices and bathing, which can be recycled on site in a Front Office—use recycled paper products for guest copy of bill landscape irrigation system. settlement, use paperless office systems, and use key cards made from recycled materials.

Food and Beverage—use recycled paper products, send leftover food to a local homeless shelter, and recycle all glass and aluminum.

Housekeeping—use alternative green cleaning products in place of polluting chemicals and send leftover amenities such as shampoo and soap to a local family services charity.

Maintenance/Facilities Management—recycle used oil, use recycled gray water for irrigation, and place recycle containers around the property to collect plastic and aluminum.

Chapter 12 – Operational Finance 213 Apply Your Learning

Section 12.1 1. What is the financial goal of a hotel and why do you believe it is important to achieve it? Explain your answer. 2. What does the term full rack rate mean and why is it important? Explain your answer. 3. How can front office employees who book guestrooms help make a hotel more profitable? Explain how they can accomplish this goal. Section 12.2 1. What is the purpose of a revenue center and why is it important to hotel financial operations? Explain your answer. 2. What role does a cost center have in a hotel and is it necessary to have cost centers? Explain your answer 3. List three revenue centers found in a hotel and explain the types of services each area provides to guests that make that center profitable. Use complete sentences. Section 12.3 1. Why is the night audit the best way to ensure guest folios are up-to-date and accurate? Explain your answer. 2. List the six items the night audit must focus on completing each night and explain why you believe each one to be an important part of the process. 3. Why is keeping guest charges updated in the guest folio such an important task? Explain your answer. 4. What three guest charges are posted to the guest ledger each night and on what line is each one totaled? 5. Using these numbers: a. House Total: $546.00 b. City Ledger: $10,000.00 c. Advance Deposit: <1,233.00> Calculate the Accounts Receivable Total in the bottom half of the guest ledger provided. House Total

City Ledger Advance Deposit

Accts. Receivable Total

214 Chapter 12 – Operational Finance Section 12.4 1. What is the purpose of calculating the occupancy percentage (OP) and why is this an important piece of financial information? Explain your answer. 2. What is the ADR used to determine and why do hotels need to track this number? Explain your answer. 3. What does RevPAR calculate and why do hotels need to know what this number is for each night? Explain your answer. 4. Calculate the RevPAR for the Tomas Hotel using the following: a. OP: 88% b. ADR: $125.00 Section 12.5 1. Explain the purpose of calculating the yield statistic. 2. Why is it necessary to compare the yield statistic to the occupancy percentage? Explain your answer. 3. If the hotel is selling more than half of its rooms but only showing a yield of 25 percent, explain what the front office managerand employees need to do next. Write a short paragraph using compete sentences. Section 12.6 1. What is the meaning of the term carbon footprint and why is it important for hotels to know about it? Explain your answer. 2. Housekeeping must remove any partially used bars of soap and bottles of shampoo. How can those items be reused as a green housekeeping practice? Explain your answer. 3. Explain one way Food & Beverage can recycle or reuse leftover food. Write a short paragraph using complete sentences.

Chapter 12 – Operational Finance 215 Unit 4 Sales and Marketing

XXChapter 13 Marketing XXChapter 14 Sales

216 Unit Overview

ales and marketing are the key elements in taking S products, goods, or services off the shelf and placing them in the hands of guests. All hospitality and tourism businesses need marketing and sales departments in order to manage the cost of doing business and maximize profits. Why? Because sales and marketing must depend on each other for success. Guests will buy items that capture their attention, but only if they are made readily available for purchase. This is why marketing is responsible for generating guest interest in products, goods, or services, and sales focuses on helping guests to make the purchases.

Exactly how does this work?

Sales • Makes direct or indirect guest contact • Implements a variety of sales methods and tactics to encourage guest purchases • Closes the sale of products, goods, or services to the guests Marketing • Initiates a marketing plan and targets a specific market segment • Makes guests aware of the products, goods, or services • Creates guest interest in the items through marketing strategies, plans, and messages

217 Chapter 13 Marketing

XXSection 13.1 Introduction XXSection 13.2 Operational Role of Marketing Competencies 1. Identify the marketing activities used in the XXSection 13.3 hospitality and tourism industry; know the Basic Four Ps of Marketing difference between marketing and advertising. 2. Identify the role of marketing in the hospitality X and tourism industry and the purpose of XSection 13.4 measuring return on investment (ROI) for all Lodging Market Segmentation marketing efforts. 3. Identify the four Ps of marketing and the role of XXSection 13.5 each in the development of a marketing plan. Tools of Marketing 4. Identify the purpose of analyzing market segments when deciding which target market to XXSection 13.6 focus on when build a marketing plan, strategy, Marketing Messages and message. 5. Explain the use of demographics and XXSection 13.7 psychographics in researching and positioning products for specific market segments or target Marketing Ethics: Honesty in Advertising markets. 6. Identify the purpose of communicating marketing XXSection 13.8 messages to guests. Green Practices 7. Explain the role of ethics and ethical practices in hospitality and tourism marketing. 8. Explain the purpose of implementing green practices as part of the marketing plan, strategy, or message.

218 Hospitality Profile

Andy Ingraham Founder/President/CEO NABHOOD Andy Ingraham grew up in a family of entrepreneurs in The Bahamas. After completing school in Jamaica, a move to Fort Lauderdale, Florida, saw the launch of Mr. Ingraham’s career in hospitality and tourism. Mr. Ingraham founded the National Association of Black Hotel Owners, Operators & Developers, Inc. (NABHOOD) in 1999 and serves as President/CEO. NABHOOD was formed to increase the number of African-Americans directly involved in the development, management, operation and ownership of hotels. Another goal was to increase vendor opportunities and executive level positions for minorities, thereby creating wealth within the African- American community. Mr. Ingraham is also President/ CEO of Horizons Marketing Group Intl. Inc., a marketing and public relations corporation that places special focus and emphasis on encouraging and developing African- American and multicultural-based tourism.

219 Section 13.1 Introduction

arketing involves a variety of efforts by hospitality and tourism M businesses to encourage guests to choose a hotel, restaurant, attraction, or transportation business over its competitors. The key to effective marketing is to find the right tool, method, or feature that will influence guest decisions. Marketing encompasses every piece of information the business produces about itself for the purpose of gaining more guest business. This can include special promotional offers, an advertising campaign, brochures, coupons, magazine advertising, the company’s website, a guest’s word-of-mouth referral to family and friends, and any other available marketing methods. Many confuse marketing with advertising or vice versa. Both are important but are very different from each other. How marketing is handled will depend on whether the business is privately owned and operated, part of a brand operation, or operated by a management or investment company.

220 Chapter 13 – Marketing Marketing vs. Advertising What is the difference between marketing and advertising?

Marketing—is a beginning to end process that formulates ideas and plans that bring the buyer to the product or service. Marketing is involved in developing, branding, and designing products, doing research about the customer, planning media campaigns and promotions (which includes advertising) to highlight an item’s features and benefits, and building the overall business by attracting guests.

Marketing activities include: • Market research • Effectiveness of advertising campaigns and promotions • Sales generated by advertising • Public relations • Measuring guest satisfaction with products and services

Advertising—is part of the marketing process and involves a business’s paid, public, non-personal, persuasive messages promoting guest use of its services. Typically, advertising focuses on a single product or service by promoting the reasons guests should choose a hotel, restaurant, attraction, or transportation business over the competition.

Advertising is done through: • Radio and television commercials • Newspaper and magazine advertisements • Flyers • Brochures • E-mails • Web advertisements • Calls to potential clients

Chapter 13 – Marketing 221 Section 13.2 Operational Role of Marketing

he marketing department is responsible for managing the business of marketing for the hotel, T restaurant, attraction, or transportation business. Each member of the marketing team must put available time, budget, and resources to good use by developing programs that drive guest and market awareness of the specific business. Marketing begins by researching the guests most likely to use a particular product or service. Then, based on the research information, an advertising campaign can be created to raise guest awareness of the product or services. A successful advertisement should generate sales that are tracked by the marketing team to determine how successful the campaign was at generating revenue.

Pineapple Fun Fact

The Savoy in London, England, opened in 1889, marketing itself as offering the latest in guest amenities. In particular, bathrooms with hot and cold running water removed the need for housekeepers to hand-deliver water for bathing each day. However, not everyone was impressed; in 1893 the writer Oscar Wilde commented: “What is it good for? If I want hot water, I call for it.”

222 Chapter 13 – Marketing Market Research Questions asked during research include: Terms you • Who are the potential guests for this product or service? should know • What do potential guests want or need? Return on Investment (ROI)— • How can those needs be met? a performance measurement • What are potential guests willing to pay? used to evaluate whether the • What would be an attractive price for this specific product or cost of generating business service? produces enough profit to make it worth the investment • Who are the competitors, and what are their strengths and weaknesses? of money, time, and effort. • What product or service is the competition unable to provide and how can that be emphasized to guests? In order to conduct the research and create a successful plan for promoting a product or service, the marketing team must: 1. Assess the information learned from the research 2. Determine the product or service most likely to attract guests 3. Set business objectives and goals 4. Align the marketing budget and activities to the business’s objectives 5. Build a campaign, promotion, special offer, or other marketing method for a product or service 6. Measure and report the performance of each marketing effort 7. Establish the framework for each marketing effort’s performance by measuring Return on Investment (ROI)

The Formula for ROI Measuring the Return on Investment is the most effective method for determing if the money spent provided enough sales to make it worth the cost of marketing a product or service. The marketing goal of every business is to generate the largest amount of sales possible to guests. The formula for measuring ROI is:

(Gain for Investment – Cost of Investment) ROI= Cost of Investment

Chapter 13 – Marketing 223 Section 13.3 Basic Four Ps of Marketing

trategy is the key to successful marketing because it helps to determine erms you S the best way to bring in guest business. The basic four Ps are used to T create the right marketing plan that can attract guests from within the should know group of customers most likely to use or purchase the product or service. This involves careful planning and thought since one element has influence Marketing Plan—the specific over the other choices. This is known as creating a marketing mix—the actions planned to interest right product at the right price, offered in the right place and promoted potential clients in a specific in the right way—that is subject to change and must be monitored and product, good, or service, modified as needed. Once the basic plan is in place, the remaining Ps of and to persuade them to buy marketing (which will be covered in year 2 of this program) come into those items. The marketing use to refine and add detail to the goals. plan is used to implement a marketing strategy.

Product Price

Marketing Strategy

Place Promotion

In order to effectively position the hotel, restaurant, attraction, or transportation business, the four Ps of marketing should be used:

Product—match the product to the right market

Questions the marketing team must ask when selecting a product are: • What does the guest want from the product or service? • What guest need will it satisfy? • What benefits or features are attractive to guests? • How is it different from the competition’s product or service? • What must the product or service cost in order to be profitable yet attractive to guests?

224 Chapter 13 – Marketing Price—offer the product at the price the market is willing to pay

Questions the team must ask when deciding on a price for a product or service are: • Is the guest price sensitive? • Will a slight decrease in price help gain more sales? • Will a slight increase in price be noticed? • How will an increase or decrease in price affect profits? • How does the price compare to the competition’s pricing?

Place—distribute the right product at the right price in the right place to the market

Questions to ask when selecting the right place for marketing the product or service are: • Where do guests look for this type of product or service? • How likely are they to search online or go to a website? • What would be the best place to advertise the product or service? • Where should the sales team focus their efforts? • What places does the competition use and how effective are their efforts?

Promotion—promote the right product, price, and place in the right way

Questions to ask when selecting how to communicate with potential guests are: • Where and when can the product or service be effectively promoted to guests? • Is this a seasonal product? • How does the competition handle their promotions? • What can be learned from the competition’s efforts? • How will the guest audience be reached? For example : ₋₋ Newspapers ₋₋ TV or radio ₋₋ Internet ₋₋ Billboards ₋₋ Flyers

Chapter 13 – Marketing 225 Section 13.4 Lodging Market Segmentation

ll hospitality and tourism industry businesses will analyze the erms you A various guest markets or market segmentations to determine the T group most likely to be attracted to the hotel, restaurant, attraction, or should know transportation business. The reason behind this marketing practice is to target a variety of consumer groups with different behaviors to determine Market Segmentations—the each group’s needs and budgets. Individuals within each group will have process whereby managers shared characteristics and needs that, once identified, allow the hotel to divide a varied market into determine the purpose of the stay. The most common reasons are either distinctive and relatively business or leisure. Once this informations is known, a marketing or homogenous subgroups promotional offer can be developed to sell a product or service to the or segments such as the segment. By knowing how different market segments may respond to convention or family reunion specific marketing efforts, the marketing team can ensure marketing markets. dollars are spent effectively. Target Market—the Target Markets market segment for which One important decision the marketing team must make early on a property is best suited concerns the guests, or target market, they wish to attract to the hotel, such as a beachfront restaurant, attraction, or transportation business. Selecting the right target property marketing a special market is critical since it will influence other major decisions during the promotion to attract families creation of the marketing plan. on vacation. Selecting the right target market will answer the question of who will be attracted to:

226 Chapter 13 – Marketing Demographics and Psychographics Market segment researchers will typically use demographics and Terms you psychographics to answer the questions of: should know • Who are the guests in each market segment? Demographics—the analysis • What are the needs or preferences of each market segment? of a variety of factors such • What services does each market segment want from a business like as age, gender, educational mine? level, income, marital status, • What communication tools can effectively reach each market occupation, religion, and segment? family size to identify and • Based on the answer to my questions, which market segment is the group guests into a specific best match to what my business has to offer? market segment.

Psychographics—the Positioning the Product analysis of the lifestyle Once a target market segment has been identified, hospitality and tourism choices and preferences of businesses can: guests, such as discovering what would be attractive to Focus on marketing the right families with young children product at the right price to the versus older, retired couples, right group of guests to create a detailed profile for use in determining which is the best to target as a market segment.

Position the product through careful marketing to attract guests in the target market segment

Develop a promotion or other advertising campaign designed to sell the product

Communicate the marketing message aimed at attracting the selected market segment

Chapter 13 – Marketing 227 Section 13.5 Tools of Marketing

o guarantee each marketing dollar is well spent, the marketing department has to decide on the type T of tools and strategies that will be the most effective with the selected target market. A marketing strategy describes how the organization will achieve its marketing objectives, and needs to be realistic about the cost of implementing the strategy.

228 Chapter 13 – Marketing Types of Marketing Tools Because strategies lack detail, the next step is to decide on the tactics that will produce the most sales. Tactics involve the use of an assortment of marketing tools. Each one will vary according to the type of campaign or promotion developed, media used, and sales goal. Direct Marketing Marketing messages are communicated directly to guests in a specific target market. One advantage of direct marketing messages is the results of the effort can be easily measured. The measurement is known as a response rate. As guests respond to the campaign or promotion, they are asked how they learned about it. The count of each source cited is used to calculate each marketing effort’s response rate percentage. For example, a hotel website can ask guests making an online booking for a special weekend rate how they learned about the promotion. The higher the percentage, the more successful the direct marketing effort was in reaching guests. One of the most common tools is direct marketing which focuses on the guest using: • Mobile messaging • E-mail • Interactive consumer websites • Online display ads • Fliers • Catalogs • Promotional letters • Outdoor advertising • Social media • Toll-free phone number • Postage-paid postcard

Chapter 13 – Marketing 229 Search Engine Optimization (SEO) The power Internet searches have over today’s marketing efforts cannot be stressed enough. Through a tool known as Search Engine Optimization (SEO), website marketing experts research and carefully use a series of words potential clients may enter when searching for hospitality and tourism options. Why? Because the sole purpose of marketing using SEO is to spread the word about available products and services. Using key words in the marketing materials, website, or shopping cart title and content, the SEO expert can increase the chances of an Internet search hit during a potential client’s web search. If the SEO expert has done the research on the market segment correctly, and determined who is most likely to be attracted to the business, he or she can then identify the most relevant key words. Incorporating the key words a consumer is most likely to enter will significantly increase the chances of a potential client finding the business’s website. Most search engines rate the frequency of a key word hit along with the quality of the content of the site, then rate it as either an authoritative content site or not. The higher the rating, the more likely a website’s link will appear on the first page of the search results. Poorly rated websites are considered to have worthless content and will appear on the last pages of a search. The goal of SEO is to constantly update and refresh the key words used to produce search engine hits in order to maintain a high SEO rating. User Registration Database (URD) To create a user registration database, the gathering of specific information from the user is necessary. Typically, this will include the person’s name, physical address, business name, phone numbers, and e-mail address. Since the average person will not complete a long form, limiting the fields to the needed information is a good practice. Using this information, the marketing team will send either hard-copy or electronic marketing newsletters to the potential guest.

230 Chapter 13 – Marketing Section 13.6 Marketing Messages

he main objective of a marketing message is to create a positive, T desirable image of the product or service for prospective guests. The message needs to highlight the value, or offer an incentive which will result in a guest purchase, visit, or booking. It is also important to attach the message to the right delivery tool to make sure it reaches the right audience. Three key decisions the marketing team must make during the creation of a marketing strategy are: 1. What goods or services are to be promoted? 2. What message about the goods or services needs to be communicated to potential guests? 3. What method of communicating the message would work best with the target segment? From these three questions, the marketing team can then begin to create a marketing message by determining the specific information about the goods or services most likely to appeal to the target guest segment. Another important factor is how frequently the message will be communicated to guests. For example, for a TV advertisement, the marketing team must decide how often the TV ad should be shown and what time of day the largest number of guests in the target segment would be watching. The most successful marketing messages are the ones that are consistently communicated in such a way as to influence the guests to make repeat purchases, visits, or bookings.

Chapter 13 – Marketing 231 Section 13.7 Marketing Ethics: Honesty in Advertising

n important consideration in marketing is to follow the rules of marketing ethics by always using A ethical practices. This means all marketing and advertising should be legal, honest, and truthful. It also means conforming to the principles of fair competition and acceptable business practices during the marketing process. In order to compete both fairly and ethically, a business should focus on the products, goods, or services offered, and highlight the advantages to guests when they choose that business over its competition. The goal is to focus on the positive and not the negative. Pointing out the shortcomings of the competition will very likely cause guests to perceive this as a negative marketing experience and result in the loss, not the addition, of business. Marketing must also value diversity and not discriminate in any way. Once again, the use of Respect and Value Everyone (RAVE) is a must. Ethical marketing practices should: • Highlight characteristics correctly and accurately • Associate product value with the product, good, or service’s price • Explain policy for delivery, exchange, return, repair, or maintenance • Explain the product, good, or service guarantee • Show copyrights, property rights such as patents, trademarks, designs, models, or trade names • Recognize approvals, awards, prizes, certifications, or diplomas • Explain benefits for charitable causes

232 Chapter 13 – Marketing Section 13.8 Green Practices

onserving resources and limiting waste are important parts of C doing business. Today, green marketing is considered a financially sound business practice. It shows a concern for the environment through the use of sustainable green marketing practices. Hospitality and tourism industry green marketing efforts have found ways to: • Use recycled materials for print materials • Use paperless marketing tools such as the Internet, TV, and social media • Communicate green practices as part of the marketing message • Select marketing vendors who also use green practices • Reduce officeaste w Today, the methods and materials used in green marketing practices are readily available including: • Recycled paper stock • Vegetable-based ink • Paperless marketing tools • Reduced packaging • Reusable marketing materials

Chapter 13 – Marketing 233 Apply Your Learning

Section 13.1 1. What type of activities are considered a part of the marketing process? 2. Explain the difference between marketing and advertising. 3. What is the key to a successful marketing effort? Section 13.2 1. Explain the responsibilities of the marketing department. 2. What does the acronym ROI stand for? 3. What must each member of the marketing team be responsible for developing? Section 13.3 1. List the four Ps of marketing and the purpose of each. 2. What are the two key objectives of marketing? Explain your answer. 3. What is the purpose of a marketing plan? 4. Why is creating the right marketing mix important? Explain your answer. Section 13.4 1. What is a market segment? 2. Why is selecting a market segment an important marketing decision? Explain your answer. 3. What else is involved when selling the right product to the right market? List the steps. 4. Explain the meaning of the term demographic. 5. How do psychographics help with marketing decisions? Explain your answer. 6. List the four parts to the product positioning process. Section 13.5 1. What is the purpose of a marketing strategy? Explain your answer. 2. List five marketing tools you think would be effective when marketing to vacationing families. 3. What is the purpose of direct marketing? 4. What is a key advantage of using direct marketing methods?

234 Chapter 13 – Marketing Section 13.6 1. Explain the three key decisions a marketing team must make when creating a marketing strategy. 2. What do the most successful marketing messages hope to accomplish? Explain your answer Section 13.7 1. What does the phrase “honesty in advertising” mean? 2. Does diversity have a role in ethical advertising? Explain your answer. 3. Why is it important to create legal and truthful marketing messages? Explain your answer. 4. List five ethical marketing practices and why they are important. Section 13.8 1. Why is it important to use green practices as part of a business’s marketing effort? Explain your answer. 2. List three ways green marketing efforts can be accomplished. 3. What type of methods and materials could you use to create a marketing handout? 4. What method could you use to create a paperless marketing strategy?

Chapter 13 – Marketing 235 Chapter 14 Sales

XXSection 14.1 Introduction XXSection 14.2 Role of the Sales Department XXSection 14.3 Structure of the Sales Department XXSection 14.4 Prospecting XXSection 14.5 Competencies Types of Sales 1. Identify the role of sales in the hospitality and tourism industry. 2. Identify the key objectives and various tasks of a hospitality and tourism sales department. 3. Identify the structure and positions found in a hospitality and tourism sales department. 4. Explain the responsibilities of a hospitality and tourism sales professional. 5. Identify the purpose of prospecting and the role of the Internet, networking, relationship- building, strategic alliances, and referrals in hospitality and tourism sales. 6. Identify the types of sales, the purpose of upgrading sales, and the role of specialty sales in hospitality and tourism.

236 Hospitality Profile

Kemmons Wilson (1913-2003) Founder of Holiday Inn In the early 1950s, the new interstate highway system, cheap gasoline, big cars, and prohibitively expensive air travel meant that even the rich were packing up the car and taking road trips. In 1951, Kemmons Wilson decided to take his wife and children on vacation from Memphis, Tennessee, to Washington, D.C. After 800 miles in a car with five children and a wide variety of not-so-good experiences at a number of motels, Wilson vowed to get into the motel business and make some changes. After the trip, he told his wife he was going to start his own hotel chain—one that would not charge extra for children, and would make traveling as a family both comfortable and safe. Within a matter of years, his company consisted of more than 450 properties. Along the way, he set the industry standard for room size (12 feet by 30 feet), motel design, types of amenities (including air-conditioning, free TV, and in-room phones), cleanliness, and easy accessibility.

237 Section 14.1 Introduction

he sales department is responsible for selling all aspects of a hospitality T and tourism business. While the structure will depend on the type of business and the financial goals it needs to meet, the overall purpose of any sales department is the same—to sell the business’s products, goods, or services to guests in order to make the business successful and profitable. While this explanation may sound simple, the reality of hospitality and tourism sales requires both effort and dedication on the part of the sales department team. While selling the products, goods, or services, the sales team also must: • Act as sales professionals • Know the products, goods, or services being sold • Connect with the right persons or guests • Build a lasting relationship with the guests • Be good communicators • Know the competition

238 Chapter 14 – Sales Section 14.2 Role of the Sales Department

he main objective of the sales department is to increase the business’s bottom line, while the primary T task of a sales professional are to locate, connect, and engage clients for the express purpose of selling the products, goods, or services available from his or her company. The tools and methods of sales will vary but the one thing all sales departments need is a sales staff with good people skills. The sales staff also needs to develop exceptional sales skills through practice, flexibility, and a willingness to change with the times. Sales departments are always looking for the next great tool, method, or skill that will help to sell products to existing and new clients or guests. Through the use of various sales tactics and best practices, the sales department has changed radically over the past ten years. No longer are sales team members forced to compete with one another for sales, but are instead encouraged to work as a collaborative group focused on common sales goals. This is accomplished by: 1. Evaluating current sales 2. Setting sales goals (new and updated) 3. Tracking sales goals 4. Identifying areas in need of improvement 5. Building a strong client/guest base 6. Building an efficient sales team 7. Hiring and training right-fit sales professionals

Pineapple Fun Fact

Approximately 2.6 million hotel rooms are sold every day in the United States. That is enough rooms to lodge every person living in the cities of San Francisco, Atlanta, Washington, D.C., Miami, and Denver combined.

Chapter 14 – Sales 239 Section 14.3 Structure of the Sales Department

he sales department will vary according to the type of hospitality and tourism products, goods, or T services being sold. This is also true of the job positions and number of staff employed in the sales department. However, the responsibilities of the sales professional will be basically the same: • Find and connect with potential clients • Present the products, goods, or services in a desirable way • Answers questions and solve problems about the products, goods, or services • Assist clients to select right-fit products, goods, or services • Make the sale In order to accomplish his or her responsibilities, the sales professional must be willing and able to: • Be organized and use good time-management skills • Use good listening skills • Be well-spoken • Set and achieve sales goals • Use good influencing skills • Focus on the client’s needs • Build strong, long-term relationships with the clients

Sample Sales Organizational Chart

Vice President of Sales and Marketing

Director of Meeting, Events, and Director of Sales Convention Sales

Sales Sales Manager Manager

Salesperson Salesperson Salesperson Salesperson Salesperson

240 Chapter 14 – Sales Sales Positions Vice President or Director of Sales and Marketing • Responsible for identifying and implementing sales strategies • Responsible for creating a sales plan and monitoring its success throughout the year • Responsible for all aspects of the sales operation • Responsible for identifying new sales opportunities

Director of Meeting, Events, and Convention Sales • Responsible for identifying sales opportunities in specialty areas • Responsible for overseeing the meeting, events, and convention sales team • Responsible for managing the meeting, events, and convention sales operation

Director of Sales • Responsible for managing daily sales operations • Responsible for overseeing sales managers and sales staff

Sales Manager • Responsible for guiding the day-to-day sales efforts • Responsible for assisting in identifying new sales opportunities

Chapter 14 – Sales 241 Section 14.4 Prospecting

hen asked what is the most challenging part of the job, a sales Terms you W professional will usually answer in one word—prospecting. know Prospecting requires the salesperson to continuously be on the lookout should for new clients. This is especially true of hospitality and tourism sales staff since selling guestrooms, meals, admission, and transportation is Cold Call—a sales tactic of an ongoing process. visiting or phoning potential clients who were not Internet Prospecting Tools expecting to be contacted Another big change has been in the approach to sales. Where once the by a salesperson. In some cold call was the sales professional’s prospecting tool of choice, it has been countries this is no longer replaced by more effective Internet-based methods capable of quickly allowed. reaching large numbers of potential guests. Today’s sales professional is discovering new sales best practices using technology and the Internet, particularly in the area of prospecting. The two main Internet prospecting tools are:

Online Lead Generation—the use of a custom form to be completed by a potential client prior to being given access to some type of online website offer, information, or content. Typically, the online offer is used to attract a specific market segment or guest demographic. This prospecting method allows sales to collect usable information on potential clients that can then be followed up with an e-mail or phone call. A privacy policy disclosure must accompany the form that requires the user to click “accept” before completing the process.

Customer Relationship Management (CRM) Database—the CRMs used in hospitality and tourism can include personal guest information, such as contact addresses and phone numbers, as well as family size, location, and other demographic information, or organizational information for business, group, or convention business. The CRM database should be used to record purchase information, service calls, customer support needs, and contract information. Anything relative to past and future customer interactions should be placed in a CRM database.

242 Chapter 14 – Sales Networking and Relationship Building A business network is a type of social network whose reason for existing is to generate business activity. Networking allows the salesperson to build new relationships while creating business opportunities as well. Often considered a very cost effective way to generate new business, it does involve a personal commitment since it requires each salesperson to build one-on-one relationships with existing and new clients. Many find a business network an effective way to manage the time commitment networking requires. In a business network, members meet on a regular basis for the purpose of exchanging business leads and referrals with one another. Using the new information, each salesperson follows up by contacting each sales lead to begin the process of developing a new business relationship. Building Strategic Alliances This relationship is typically less formal. It allows businesses targeting the same market segment to work together to build attractive products, goods, or services that highlight the advantages and cost savings available to potential clients. For instance a hotel, florist, and photographer join forces to produce a marketing/advertising campaign for brides that packages all three brands into one product for sale at a promotional price. The goal of all three is to increase business by joining forces. Referrals Referrals are a traditional, very effective sales tool used to collect the names of potential new clients from existing customers. One reason this is a favorite of sales professionals is that the referral is coming from a known customer who is helping to widen the circle of relationships for the salesperson. It is a win- win for everyone. The client being referred has a word-of-mouth recommendation from someone he or she trusts, and the salesperson has a very good chance of making a sale. This creates an advantage by cutting out the sales lead screening process, thus saving time and money. Usually, a referral results in a potential client in the market for the products, goods, or services represented by the salesperson, making the time between initial contact and closing the sale quick and efficient.

Chapter 14 – Sales 243 Section 14.5 Types of Sales

he purpose of any sales tactic, method, or tool is to exchange products, goods, or services with a T client, customer, or guest for a specific amount of money. This is the basic role of sales in any business. How that is accomplished depends on the situation, type of client, what type of item is being sold, and the client’s timeline for completing the sales process. Traditional Sales The first task of any sales professional is to build a client base of regular users of his or her company’s products, goods, or services. In the hospitality and tourism industry, this will often involve having a corporate client base that regularly needs accommodations, food service, entertainment, and transportation provided by outside vendors. The salesperson acts as the vendor representative, determines the client’s needs, and matches them to products or services available from his or her business. The next step is to present the product or service options to the client, assist in the selection process, and attach a price to the item selected by the client. Using the client choices and the costs associated, the salesperson will write a contract, and have it approved and signed by the client. Once a signed contract is in place, the products or services can be provided for client use. Typically, sales professionals will conduct this type of sale with: • Existing clients to sell existing products, goods, and services • New clients to sell existing products, goods, and services • Existing clients to sell new products, goods, and services • New clients to sell new products, goods, and services

244 Chapter 14 – Sales Upgrading Selling is the job of every employee, especially for those working in the hospitality and tourism industry. Many see sales strictly as the responsibility of the sales team; however, upgrading guests by means of upselling, cross-selling, and suggestive selling can often be accomplished by non-sales employees as well. These three techniques are effective ways to increase revenues and training is the key to getting everyone on board using these methods. For example, hotels have a variety of room types and rates. When guests check in, the front desk may simply quote a room rate and make no attempt to sell additional services or amenities. Training front desk staff to offer guests other room options by highlighting added features that justify a rate increase, can frequently result in a guest deciding to move up to a nicer view, more amenities, or a larger space. This is particularly true of business travelers. The three tools both sales and non-sales staff can choose to use are:

Upselling—this practice encourages a client or guest to upgrade to more expensive products, goods, or services. The advantage is the client or guest gets a better or higher grade item while the company makes a more profitable sale.

Cross-selling—this technique involves selling additional products to an existing client. The advantage to the client is dealing with one supplier/vendor for multiple products, goods, or services, while the company increases its products, goods, or services sales base.

Suggestive selling—this type of selling influences a guest’s choice by highlighting a variety of options using words that describe the item to make it appealing. Restaurant servers often use this as a way of selling appetizers and desserts. Specialty Sales The area of specialty sales is a major source of revenue for the hospitality and tourism industry. Often, it is the second-highest source of revenue for hotels, restaurants, and entertainment venues. Frequently, clients or guests traveling for fun or business will have a need for blocked guestrooms, meeting space, group dining, and special events. This need is met by the sales professionals who focus on the specialty line of sales. The most common types of specialty sales are:

Group sales—focuses on group sales for weddings, family reunions, organized tour groups, school trips, and other event involving a large number of guests.

Catered event sales—focuses on planned events involving food and other activities typically available to family groups, company outings, and organizational events.

Meeting room sales—focuses on planned off site meetings by business travelers, organizations, and other groups.

Convention/conference sales—focuses on providing all aspects of a convention or conference group’s needs, including hotels rooms, meeting space, exhibitor space, and meals.

Chapter 14 – Sales 245 Apply Your Learning

Section 14.1 1. What are the responsibilities of the sales department? 2. List three behaviors of the sales professional. 3. Why is knowing the products, goods, or services an important part of the sales professional’s job responsibilities? 4. What type of communication skills do you believe a sales professional should have? Section 14.2 1. Explain why you believe sales professionals need to have strong people skills. 2. How would a sales professional perfect the skills of the job? 3. List the seven steps in forming a collaborative sales group. 4. Explain why you believe a sales professional has to be able to change in order to maintain his or her exceptional sales skills. Section 14.3 1. Explain the reasons behind the need for a sales professional to be well-spoken. 2. Explain why the sales professional has to focus on selling what the guest or client needs? 3. Should a sales professional present products, goods, or services by highlighting what they do and how they meet the guest or clients needs? Explain your answer. 4. Who is responsible for everything that occurs in the sales department and why is that the case? 5. Can a sales manager or salesperson specialize in the type of products, goods, and services they sell for the hospitality and tourism industry? Explain your answer.

246 Chapter 14 – Sales Section 14.4 1. What is a cold call and why is it no longer a best practice for making sales? 2. List two Internet prospecting tools and explain how each is used. 3. What is a business network and how could it help a salesperson be successful? 4. If you own a hotel in a popular travel destination and want to build a strategic alliance for pulling in more business from high school senior trips, what other businesses could you partner with and why? 5. Why are referrals a win-win situation for everyone involved? Explain your answer. Section 14.5 1. What is the basic reason behind selling products, goods, and services? 2. List who sales professionals typically sell to and list the type of products, goods, or services sold. 3. What is upselling? 4. What is cross-selling? 5. You are a front desk representative. How could you use suggestive selling with a guest? 6. You are making a sales call to a client who is considering booking a catered event at your restaurant. What could you offer the client that would upsell the event? Offer at least two upsell items and describe each one for the client showing why it is desirable for him or her to buy the more costly items.

Chapter 14 – Sales 247 Unit 5 Safety and Security

XXChapter 15 Operational Safety XXChapter 16 Security

248 Unit Overview

he hospitality and tourism industry has T an obligation to provide a safe and secure environment. Why? For two very good reasons: guests and employees. Guests expect a safe and secure experience and employees deserve a safe and secure workplace. Both safety and security require serious thought about possible situations, which leads to a lot of planning, and constant monitoring, to prevent incidents from occurring. Often, the roles of safety and security get blended together in the minds of guests and employees, but they are very different from one another. Each deals with an entirely different area of concern. This unit will focus on safety as the operational method for preventing injury, illness, or other risks to guests and employees, and security as the method protecting guests and employees from crime, attack, and terrorism.

249 Chapter 15 Operational Safety

XXSection 15.1 Introduction XXSection 15.2 Occupational Safety XXSection 15.3 Competencies Risk Management 1. Identify the purpose of maintaining a X safe, healthy environment for guests and XSection 15.4 employees. Occupational Safety and Health 2. Identify the role of occupational safety and Administration (OSHA) the purpose of a job safety analysis report in providing safe work conditions to employees. XXSection 15.5 3. Explain the risk management process and the Operational Safety use of the 14 elements of a health and safety program in the workplace. 4. Identify the role of the Occupational Safety and Health Administration (OSHA) in ensuring a safe and healthy work environment for all American workers by overseeing Hazardous Materials Communication (HazCom) Standards. 5. Identify the safety policies and procedures regarding operational safety for slips, trip, and falls along with fire safety and safe lifting.

250 Hospitality Profile

Tom Wright Architect Tom Wright is the British architect who rose to fame in the hospitality and tourism industry when his design was chosen for the Burj Al Arab Hotel (Tower of the Arabs) in Dubai. Completed in 1999, the Burj Al Arab Hotel was designed to resemble a billowing sail reflecting Dubai’s seafaring heritage. Considered to be one of the world’s most luxurious hotels, the Burj Al Arab soars to a height of 321 meters (1,053.14 feet) and dominates the Dubai skyline. Mr. Wright was asked to not only design a safe, functional, luxury hotel, but to take his design beyond the average and to create a building that would become an international icon for Dubai. His goal was to create a hotel that would be forever associated with its location just as the Eiffel Tower is with Paris, France. Mr. Wright studied at the Royal Russell School and later at the Kingston University School of Architecture. Mr. Wright became a member of the Royal Institute of British Architects in 1983 and went on to become a director of the Lister, Drew, Haines, and Barrow architectural practice, which was taken over in 1991 by Atkins. Today, he is working on projects in Australasia, the Far East, the Middle East, Europe and the USA.

251 Section 15.1 Introduction

afety affects the health and well-being of guests and employees and does have a direct impact on the S financial success of any hospitality and tourism business. Why? Because companies that knowingly allow injuries, illnesses, and other risks to occur, and do nothing to prevent the situations, will certainly face a loss of business. Also, the lack of preventive measures will result in high legal costs from the law suits filed by injured or ill guests and employees against the business and its leaders for endangering the health and safety of others. Hospitality and tourism businesses need to be seen as safe places to go, visit, and experience. In order for this to be true, the business need to assess where the dangers might be, find ways to prevent unsafe conditions from occurring, and continuously monitor safety to prevent any unforeseen incidents from happening. Hospitality businesses have some unique areas of safety to focus attention on such as swimming pools, hot tubs, gyms, and other recreational facilities provided for guest enjoyment. The best tool is to have a team of safety conscious employees who are following a master safety plan meant to prevent unsafe conditions and situations.

252 Chapter 15 – Operational Safety Section 15.2 Occupational Safety

afety is everyone’s responsibility and S prevention is the main goal of occupational safety. Managers and employees must work together to keep both front-of-house and back-of- house areas from becoming a safety risk. The key is to constantly monitor for and prevent identify unsafe situations before it threatens someone’s safety. An alert and careful employee is the best method for preventing falls, slips, trips, and other common accidents from occurring. Spotting and taking immediate action on safety risks such as wet floors, slippery walkways, cluttered areas, fixtures in the way, or unsecured equipment will prevent many injuries. Every company should have a list of safety rules stating how employees should follow safe work practices. Occupational injuries and lost workdays have a big effect on how well each department in a company can function. They often result in a shortage of staff, important tasks do not get completed, and guest service standards will drop significantly. Loss of quality in guest service can cause a loss of revenue since guests will go elsewhere if they feel better appreciated. Injured employees will suffer as well since time off work could mean time off without pay. It is a lose-lose-lose situation for the guests, employee, and business. A job safety analysis is a detailed report that lists every job function performed by all employees. This is often completed on a department-by-department basis. The job list provides the foundation for analyzing the potential hazards of a particular position. From this analysis, job breakdowns can be made and safety procedures attached to ensure all employees receive training on prevention of illness or injuries to themselves and others. Additionally, all potential hazards can be listed so employees are aware of the risks they need to be mindful of preventing. Pineapple Fun Fact

The world’s first seven-star hotel is Dubai’s Burj Al Arab Hotel. Guests are assured of the ultimate in personalized service. Check-in occurs at a private reception desk on each floor with rooms serviced by a group of highly trained butlers. Designed to resemble a billowing sail, Burj Al Arab soars to a height of 1,053 feet, dominating the Dubai skyline.

Chapter 15 – Operational Safety 253 Section 15.3 Risk Management

isk management is the process of assessing existing risks, taking action to minimize or prevent the R risks, and preventing unforeseen accidental loss by implementing a safety program. In order for a risk management program to succeed, it must have the full support of top management, supervision, and employees. Typically, a safety committee will be placed to monitor the program and to make changes as needed to improve the program’s effectiveness. However, responsibility for the success of the program belongs to every person on staff. Elements of a Health and Safety Program The National Safety Council has cited 14 elements as necessary parts in effective risk management through a health and safety program:

Element 1—Hazard Recognition, Evaluation, and Control Establishing and maintaining safe and healthful conditions requires identifying hazards, evaluating their potential effects, developing ways to eliminate or control them, and planning action priorities.

Element 2—Workplace Design and Engineering Safety and health issues are most easily and economically addressed when facilities, processes, and equipment are being designed.

Element 3—Safety Performance Management Standards must be set for safety performance by reflecting regulatory requirements, additional voluntary guidelines, and best business practices.

Element 4—Regulatory Compliance Management The Occupational Safety and Health Administration (OSHA), Environmental Protection Agency (EPA), and state safety and health agencies establish and enforce safety and health regulations.

254 Chapter 15 – Operational Safety Element 5—Occupational Health This element addresses the immediate needs of injured or ill employees by providing first aid and response to emergencies. Some programs may focus on employee off-the-job health using a wellness program.

Element 6—Information Collection This includes inspections, record keeping, industrial hygiene surveys and other occupational health assessments, injury/illness/incident investigations, and performance reviews. Records should be used to identify hazards and measure safety performance and improvement, followed by an analysis to identify patterns in the injuries that occurred. All should be kept in a database for easy accessibility.

Element 7—Employee Involvement Involvement of employees in the planning, implementation, and improvement of safer work practices leads to more effective solutions and procedures.

Element 8—Motivation, Behavior, and Attitudes Motivation aims to change employee behavior and attitudes to create a safer, healthier workplace.

Element 9—Training and Orientation All employees must know and follow company policies and procedures by learning to perform their jobs safely and efficiently. Training should include hazard recognition, regulatory compliance, and prevention.

Element 10—Organizational Communications Effective communication within the company must keep employees informed about policies, procedures, goals, and progress regarding safety and health issues.

Element 11—Management and Control of External Exposures All safety and health programs must address risks beyond the organization’s walls by creating contingency plans for “what if” worst-case scenarios and other liability exposures.

Element 12—Environmental Management Environmental management should have a program of its own; however, many safety and health programs already include it.

Element 13—Workplace Planning and Staffing Safety and health considerations are important when staffing a company’s workforce. Items to be considered include work safety rules, employee assistance programs, and requirements resulting from the Americans with Disabilities Act (ADA).

Element 14—Assessments, Audits, and Evaluations Every organization must have tools to measure safety and health conditions, monitor compliance, and assess progress achieved through the safety and health program. This can include self- assessments, third-party assessments, and voluntary regulatory assessments.

Chapter 15 – Operational Safety 255 Some ways of achieving the goals set by the 14 elements of a safety and health program are: • Have a written policy showing the organization’s commitment to a safe and healthy workplace and which sets expectations for employee performance. • Collect employee input on safety and health matters. • Conduct regular internal health and safety inspections of the property. • Set realistic goals for reducing accidents. • Hold employees accountable for reducing accidents. • Raise employee awareness of safety and health issues using signs, posters, e-mails, contests, and wellness fairs. • Use training that is a key tool in creating a safe and healthy workplace.

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256 Chapter 15 – Operational Safety Section 15.4 Occupational Safety and Health Administration (OSHA) he Occupational Safety and Health Administration is a Federal agency T created in 1970 to make certain that the safety and health concerns of erms you American workers are being met. OSHA is tasked with providing training T and educational programs to small businesses and corporations for the should know purpose of improving workplace safety and health. OSHA’s mission is a serious one and should not be taken lightly by anyone working in the Compliance—the hospitality and tourism industry. Why? Because failure to be in compliance observance of official or legal with OSHA’s standards can result in a costly fine and/or closure of the requirements that conform to business, either permanently or until the violation has been corrected. a written standard specifying the protocols and procedures Here is how OSHA describes itself: to be in use and in place at With the Occupational Safety and Health Act of 1970, Congress created all times. OSHA 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. The Occupational Safety and Health Act covers employers and their employees either directly through OSHA on a federal level or through an OSHA-approved state program. State programs must meet or exceed federal OSHA standards for workplace safety and health.

President of the United States

Department of Department of Department of Department of Department of Department of Department of Health & Human Agriculture Commerce Defense Education Energy Homeland Security Services

Department of Department of Department of Department of Department of Department of Department of Housing & Urban Interior Justice Labor State Transportation Veterans Affairs Development

Administrator—Assistant Secretary of Labor for Occupational Safety and Health

Chapter 15 – Operational Safety 257 Hazardous Materials Communication Terms you One area in which OSHA has a large impact on hospitality and tourism should know businesses is chemical use in the workplace. OSHA defines a hazardous chemical as any liquid, solid, or gas that could present a physical or health HazCom—short for Hazardous hazard to an employee. For hospitality operations, this typically includes Materials Communication cleaning agents, degreasers, flammables, greases, paints, pesticides, Standard, this OSHA aerosols, and compressed gases. While all these items are commonly in use in a person’s home, they are used less frequently or in much smaller standard lists the steps quantities. It is because businesses buy hazardous chemicals in very large necessary for an organization amounts and use them frequently that led to the need to regulate the use, to be in compliance with the distribution, storage, and disposal of these chemicals by means of federally use of hazardous chemicals mandated standards. This led to the creation of the Hazardous Materials in the workplace. Communication (HazCom) Standards and Requirements. OSHA, as an agency, is expected to inspect all businesses for compliance with this standard and to fine or shut down any business found to be in violation.

In order to ensure chemical safety in the workplace, information must be available about the identities and hazards of the chemicals and must be communicated to the two main groups involved with hazardous chemicals used. OSHA’s HazCom Standard requires the development and communication of information between those manufacturing the chemicals and the people using them: • Chemical manufacturers and importers, who are required to evaluate the hazards of the chemicals they produce or import, prepare labels and Material Safety Data Sheets (MSDS), and clearly communicate information about those hazards to their customers. • All employers with hazardous chemicals in use must: ₋₋ Be provided hazardous chemical information by the manufacturer by means of the MSDS ₋₋ Keep all MSDS information in a book labeled MSDS in a readily accessible place for use by exposed employees ₋₋ Place labels on all chemical containers in use in the workplace ₋₋ Provide training to employees required to work with hazardous chemicals and update training whenever a new chemical is introduced into the workplace

258 Chapter 15 – Operational Safety Section 15.5 Operational Safety

perational safety policies and procedures are a necessary part of hospitality and tourism O responsibilities to prevent accidents and injuries. By implementing three simple operational safety rules, a business can set expectations for employees about workplace safety and their contribution to a safe work environment and accident-free operation. The three operational safety rules are: 1. Take adequate time. No job is so urgent that you must do it in an unsafe, hurried manner. Make time to correct unsafe conditions immediately. If an unsafe or hazardous condition cannot be corrected in a timely manner, report it at once to management. 2. Do it safely the first time. Every employee must do his or her job in a safe and correct manner. This is the best way to prevent accidents. 3. All hospitality and tourism businesses should have a safety policy which explains the rules for a safe work environment to employees and the expectation for employee use of safe work practices.

Chapter 15 – Operational Safety 259 Slips, Trips, and Falls Almost one in every five work-related injuries results from a slip, trip, or fall. Falls kill more than 1,200 people at work each year. That makes them the biggest cause of workplace fatalities after motor vehicle accidents. Slips, trips, and falls are expensive, disruptive, painful and sometimes tragic. However, there are many situations that can cause slips, trips, and falls which can be prevented by eliminating workplace hazards and training employees to take workplace safety seriously. Best practices for preventing slips, trips, and falls are: • Wear correct footwear that is appropriate for work and weather conditions inside and outside. • Remove mud, snow, etc., from shoes when entering a building. • Be aware of changes in surface levels and work floor coverings. Alter your stride to take shorter, slower steps. • Walk, don’t run, through work areas. Don’t take “shortcuts” around machinery and equipment. Avoid areas that are cluttered or dimly lit. • When carrying a load of items, make sure you can see over and around it. Get help to carry heavy or awkward objects and use carts or other aids for carrying heavy loads. • Clean up, correct, remove or report unsafe conditions such as spills, electric cords, frayed carpets, worn stairs and other hazards that could result in a slip/trip/fall injury. Warn others that a hazard exists by placing signs or cones or by isolating the hazard with caution tape or barricades. • Do not allow equipment, tools, materials or other obstacles to accumulate in aisles or walkways. Never store or place items on stairs.

260 Chapter 15 – Operational Safety • Keep desks and file cabinet drawers closed when not being used or when unattended. • Always use a ladder or step stool. Never stand on a chair, desk, shelf, crate or box, or any other unstable item to reach something. • Walk erect using even strides and good balance. Always use handrails when available. • Maintain floors so they are clean and free of water, oil, or grease. Areas such as the engineering shop may need to be periodically steam cleaned. Tiled floors such as in kitchens should have an etched or rough surface. • Apply non-slip surfacing such as adhesive backed sheets, anti-slip paint, open-spaced grates, or mats, to ramps, docks, platforms, kitchen tiles, or stairways thought to be hazardous. • Paint edges where elevation changes occur with “caution yellow” paint. Post signs to warn of dangerous areas. • During winter months, remove snow and ice and apply sand and salt before employees and guests use a walkway. Note areas that drain poorly, retain snow, or are habitually slippery, and initiate permanent changes to eliminate the hazard. • Conduct periodic inspections of the property and grounds to identify and correct slip, trip, and fall hazards. Consider hazards to employees and guests. Inspect interior and exterior walkways, stairs, handrails, pavement conditions, parking areas, and lighting for needed repairs or changes to correct a safety issue.

Chapter 15 – Operational Safety 261 Fire Safety Preparedness on the part of a hospitality and tourism business is the key element of fire safety. This requires developing a fire-safety plan which includes: Fire Protect Systems • Fire alarms such as a visual alarm and voice alarm for guests with disabilities (ADA requirement) • Sprinklers • Fireproof doors • Guestroom smoke detectors

262 Chapter 15 – Operational Safety Fire Safety Plan A fire safety plan must include: 1. A procedure for reporting a fire. 2. A procedure for notifying, relocating, or evacuating occupants. 3. A site plan showing: a. Guest assembly point(s) b. Location of all fire hydrants c. Routes to be used by fire department ehiclev access 4. Posted floor plans (on room-side guestroom doors) identifying the locations of the following: a. Exits b. Primary evacuation routes c. Secondary evacuation routes d. Accessible exit routes for guests with disabilities (ADA requirement) e. Areas of refuge f. Manual fire alarm boxes g. Portable fire extinguishers h. Occupant-use hose stations (wall-mounted fire hose boxes located in building hallways) i. Fire alarm annunciator (buzzer) and controls j. Sprinkler control valves 5. A list of major fire hazards associated with the normal use and occupancy of the premises, including maintenance and housekeeping procedures such as kitchen grease and trash can fires. 6. Identification and assignment of personnel responsible for maintenance of systems and equipment installed to prevent or control fires. 7. Identificationand assignment of personnel responsible for maintenance, housekeeping, and controlling hazard sources such as gas cans containing fuel for lawnmowers and leafblowers.

Chapter 15 – Operational Safety 263 Safe Lifting One of the most common on-the-job injuries is due to improper lifting. This type of injury can be reduced or prevented by following these guidelines for safe lifting:

Guidelines for Safe Lifting 1. Inspect the object before lifting. Do not lift any item that you cannot get your arms around or that you cannot see over when carrying. 2. Look for any protrusions, especially when lifting trash or bundles of linen. Quite often, these items can contain pointy objects or broken glass. Exercise special care to avoid injury. 3. When lifting, place one foot near the object and the other slightly back and apart. Keep well balanced. 4. Keep your back and head straight. Because the back muscles are generally weaker that the leg muscles, do not use the back muscles to lift the object. 5. Bend slightly at the knees and hips but do not stoop. 6. Use both hands and grasp the object using the entire hand. 7. Lift with the leg muscles. 8. Keep the object close to the body. Avoid twisting your body. 9. If the objects feels too heavy or awkward to hold, or if you do not have a clear view over the object, set it down. 10. When setting an object down do not use your back muscles. Used the leg muscles and follow the procedures used to lift objects.

264 Chapter 15 – Operational Safety Apply Your Learning

Section 15.1 1. Who is affected when safety and health conditions are ignored? 2. What can result from poor safety conditions in the workplace? 3. List three things a business should do to ensure safe practices are in place. Section 15.2 1. Who is responsible for safety and why do you believe this to be true? 2. List three common types of injuries and a reason each might happen in the workplace. 3. How can injuries prevent a department from providing excellent guest service? 4. What is the purpose of a job safety analysis? Explain your answer. 5. What is the purpose of assigning safety procedures to a hazardous task? Explain your answer. Section 15.3 1. What is the purpose of a risk management program? 2. What three items are part of the risk management process? 3. What is the goal of Element 1 in a Health and Safety Program? 4. Why is Element 7 critical to the success of a Health and Safety Program? Explain your answer. 5. Why would Element 9 be a key part of a Health and Safety Program? Explain your answer. 6. Explain why you believe Element 10 could cause a Health and Safety Program to be either successful or a failure. 7. List three of the seven ways the goals of the 14 elements can be achieved. Section 15.4 1. What does the acronym OSHA stand for? 2. What is the main reason behind the Federal government creating OSHA in 1970? 3. Why is compliance with OSHA Standards not an option for hospitality and tourism businesses? Explain your answer. 4. Why is being in compliance with the HazCom Standard so important to all hospitality and tourism businesses? Explain your answer. 5. List the two main groups most affected by hazardous chemicals. Explain why each is covered by the HazCom Standard. Section 15.5 1. List and explain the purpose of the three operational safety rules. 2. List five ways to prevent a slip, trip, or fall. 3. What is the key element in fire safety by any hospitality and tourism business? Explain your answer. 4. List the seven parts of a good safety plan. 5. Why is lifting one of the most common on-the-job injuries? 6. Explain ways to prevent lifting injuries in the workplace.

Chapter 15 – Operational Safety 265 Chapter 16 Security

XXSection 16.1 Introduction XXSection 16.2 Hotel Security XXSection 16.3 In-House Security Competencies X XSection 16.4 1. Explain the role of security in protecting people Key Control and property during criminal, severe weather, and emergency situations. XXSection 16.5 2. Identify the security functions of providing Operational Emergencies reasonable care under the innkeepers laws requiring hotels to provide travelers with a safe XXSection 16.6 haven at night. Emergency Preparedness 3. Identify the roles of a hotel’s security officers and managers in protecting people and property. 4. Describe the role of security in maintaining control over both metal and electronic key systems for a property. 5. Identify the types of emergencies common during daily operations that are handled by the security team. 6. Identify the role of emergency preparedness to guarantee an emergency response plan is in place for a variety of potentially life-threatening emergency situations.

266 Hospitality Profile

Mark Williams, CHT Director of Development Chair, AH&LA Under 30 Gateway Mark Williams joined Coakley & Williams in February 2007 after spending nearly five years with Walt Disney World® in Orlando, Florida. His Disney experiences covered a multitude of roles including: attractions, entertainment, food and beverage, employee training, and resort operations. As the director of development, Mr. Williams is involved with building effective training programs for use in a company portfolio of 24 hotels. As a full-service management company, Coakley & Williams offers a range of services in operations, sales and marketing, accounting, human resources, and other programs that benefit its clients. Training is another major facet in the services provided to clients. Mr. Williams is very involved with AH&LA and has previously chaired the Multiunit Lodging Operators & Owners Forum. As the chair of the Under 30 Gateway, he assists other members in building strategic relationships so each person is able to develop a strong hospitality and tourism career. Before joining Coakley & Williams, Mr. Williams graduated in August 2006 with a Bachelor of Science Degree in Hospitality Management from the University of Central Florida’s Rosen College of Hospitality Management in Orlando, FL. In 2011, he received his Masters of Business Administration (MBA) from Grand Canyon University’s Ken Blanchard School of Business.

267 Section 16.1 Introduction

ecurity in the hospitality and tourism industry must be capable of erms you S protecting guests, employees, and the physical assets of the property T from criminal activities, severe weather, and emergency situations. This should know is particularly true of a hotel, which serves as an overnight home base for guests. Consequently, security efforts are not limited to crimes such as Human Trafficking—the act theft. . Today, hotel security needs to be capable of dealing with anything of recruiting, transporting, from housing guests during a hurricane, to preventing meth lab activities, transferring, harboring or to monitoring for human trafficking. Following the events of September receiving a person through a 11, 2001, security took on the stronger role of guarding against acts of use of force or other means, violence and terrorism to ensure guests and employees a secure place for the purpose of exploiting to stay and work. them. Exploitation occurs It is not the role of hotel security to replace law enforcement but to act when the person is forced as a watchdog for guests, employees, and property security by building into illegal acts such as a good relationship with the local authorities. Communication is a key prostitution, unpaid labor, or element in security. Hotel security staff must communicate effectively slavery. with employees, law enforcement, and other community agencies to guarantee that appropriate levels of security are achieved.

268 Chapter 16 – Security Section 16.2

Hotel Security Terms you should know ecurity functions somewhat differently in a hotel than it does for other S types of businesses involved in the hospitality and tourism industry. Reasonable Care—the This is because guests are taking up temporary residence at the property degree of care that a cautious and have the right to feel protected against harm. Consequently, hotels person would use under like have the added responsibility of exercising reasonable care when providing circumstances. guests with a safe and secure place to stay. This duty of reasonable care mandates vigilance in protecting guests from foreseeable risks. The Innkeepers Laws—laws obligation to protect guests is not met merely by warning them, but must passed in the 1700s be combined with a security program meant to maintain a secure property. to protect travelers and overnight guests from The Reasonable Care Standard used by most hotels states: inconvenience and injury. • Hotels have a general duty to exercise “reasonable care” for the The laws today focus on safety and security of their guests. the hotel operator’s areas • Hotels have a general duty to reasonably protect guests from harm of responsibility such as caused by other guests, employees, or non-guests. guest security, evictions, and • Hotels have an affirmative duty to make the premises reasonably discrimination. safe for their guests. This obligation includes a two-fold duty to Common Law—the general either correct a hazard or warn of its existence. body of case law that governed England and the Innkeepers Laws American colonies prior to The innkeepers laws date back to the days of horse and carriage travel the American Revolution. and are based on common law. These laws began as a way to provide The principles and rules travelers with a safe haven at night and, to this day, each state has its of action that derive their own statutes and court rulings which hotels are expected to know and authority from the community follow. Specifically, innkeepers laws include statutes about the type of customs and traditions that security program hotel security personnel must have in place. evolved over the centuries Some of the areas covered by innkeepers laws are: as interpreted by judicial • Locking systems, key control, and access control tribunals. • On-premises security personnel • Lighting and door viewports • Police/local law enforcement liaisons

Chapter 16 – Security 269 Section 16.3 In-House Security

ost hotels use either in-house security staff or an outside private security firm to provide on- M premises protection for guests and the facility. Typically, a security officer is outfitted with a badge and uniform to make him or her clearly identifiable. The security officer’s role is to serve in a protective capacity by stopping and holding anyone they believe to be engaged in a criminal activity until local law enforcement arrives on the scene. This is accomplished by making a citizen’s arrest. Only law enforcement officers can exercise the lawful power of arrest on a person suspected of committing a crime, but most states allow individuals to make a citizen’s arrest by lawfully depriving a person of his or her freedom when caught in a criminal act. However, in order to be capable of making a citizen’s arrest, the security officer must be fully trained on the applicable statutes and laws in that specific state at the time they are hired into the position. The key functions of a security officer are to: • Patrol all areas of the property at random times to ensure guest and employee safety and security. • Investigate any incidents reported by guests and employees, determine if law enforcement should be involved, and assist law enforcement as needed. • Report to management the results of daily patrols, all investigations, and other security activities experienced.

Front Office Security The front office plays an active role in protecting both its guests and the property as a whole. Both front desk and uniformed services employees are able to continuously observe everyone who arrives and departs from the property. They are also in a good position to spot and report any suspicious activities, items, or vehicles. Front office participation involves a two-pronged approach when assisting security staff by: 1. Safeguarding sensitive guest information and confidentiality 2. Maintaining watch (when possible) over areas such as the: a. Lobby b. Parking lot c. Back of house office spaces Pineapple Fun Fact d. Restaurant entrances On July 2, 1777, the Vermont Constitution e. Elevators was adopted at Elijah West’s Tavern in the f. Guest hallways township of Windsor. It was the first in the new world to outlaw slavery and to require a free g. Pool/gym/recreation entrances education for all citizens, male and female. Today, the property is a Vermont State Historic Site known as The Old Constitution House.

270 Chapter 16 – Security During emergency situations, the front office can also act as central command under the direction of the security director, officers, and any local agency involved such as the police or fire department. The front desk is expected to make contact with each guest on property at the time and communicate any emergency procedures the guest needs to be aware of and follow. Uniformed services can control access to and from public areas, meeting spaces, and guestrooms, as well as help move guests to a safe location or distance if necessary. Guestroom Security

Housekeeping has a special responsibility for AMERICAN HOTEL & LODGING ASSOCIATION guestroom security since employees have direct access to both guestrooms and the guest’s personal property. Housekeeping staff are also in a position to monitor for GUESTGUEST intruders, use of guestrooms for illegal activities, presence of weapons, and the planning of possible acts of terrorism. SSAFETYAFETY TIPSTIPS While cleaning guestrooms and public spaces, housekeeping should check items such as locks, deadbolts, Don't answer the door in a hotel or motel room 1 without verifying who it is. If a person claims to window latches, and other security devices to make sure be an employee, call the front desk and ask if they are in good working order. For example, to protect someone from their staff is supposed to have both guests and the property against a potential crime: access to your room and for what purpose. Keep your room key with you at all times and 2 don't needlessly display it in public. Should A housekeeping attendant should report you misplace it, please notify the front desk any problem such as a non-locking immediately. guestroom door to maintenance for 3 Close the door securely whenever you are in your repairs. room and use all of the locking devices provided.

Check to see that any sliding glass doors or 4 windows and any connecting room doors are locked. 5 Don’t invite strangers to your room. Do not draw attention to yourself by displaying A maintenance engineer should then 6 large amounts of cash or expensive jewelry. notify the front desk that the room door is being repaired. Place all valuables in the hotel or motel's safe 7 deposit box.

When returning to your hotel or motel late in the 8 evening, be aware of your surroundings, stay in well-lighted areas, and use the main entrance.

Take a few moments and locate the nearest exit 9 that may be used in the event of an emergency. A front desk representative should If you see any suspicious activity, notify the hotel remove the room from active inventory to 10 operator or a staff member. prevent it being assigned to a guest.

COM001727

Chapter 16 – Security 271 Section 16.4 Key Control

key control system is essential to preventing Aunauthorized access to all areas of the hotel. Keys issued to employees use a key numbering system to identify the areas the key can access and should only be issued to employees by a member of management. Any key issued as part of an employee’s job responsibilities must go to a staff member with a valid work reason for accessing an area and the key must not be taken from the property. All other keys can be issued to employees on an as-needed basis. Most hotels keep employee-use keys locked in a safe or key control box. Employees are then expected to sign a log book when using a key. This allows the security team responsible for key control to track key usage. Something as simple as a locked door, and a system for controlling who can access a key, can have a significant effect on hotel security. Guestroom Keys Some hotel guestrooms use a unique double locking system, while other properties use a single locking mechanism paired with a flip-latch security door guard. Regardless of the type of system, unoccupied guestrooms will have the door lock set as a single lock setting. However, when a guest enters the room he or she may engage the second locking mechanism either by turning the door handle into double- lock mode or latching the security door guard into place. Most properties have more than one level of guestroom keys:

Guestroom key—issued by front desk staff and should only be capable of opening a specific guestroom in single-lock mode only.

Master key—opens all guestrooms in single-lock mode only.

Emergency key—opens all guestrooms even when they are in double-lock mode. This key would not be needed for hotels using security door guards.

272 Chapter 16 – Security Section 16.5 Operational Emergencies

he security team must be prepared to handle a variety of common operational situations that can T pose a risk to the property such as short power failures or a stuck elevator. An employee discovering anything out of the ordinary must notify security immediately. Following the property’s policy and procedures, the security officer must take control of the situation, direct employee efforts, notify management of the situation, and cooperate with all local authorities involved. The types of situations which may occur during normal operations are:

Theft—Loss of either guest or hotel property must be reported and investigated by a security officer or manager. Depending on the severity of the crime, security may turn the investigation over to local law enforcement.

Power Outages—Officers will patrol guest hallways and public spaces to maintain a high level of security. Guests in occupied rooms should be kept informed about the situation and questioned to determine any medical or special needs while the power is off.

Elevator Malfunctions—Security is to be notified immediately when an elevator stalls between floors and the alarm activates indicating someone is trapped inside. Using the elevator’s emergency phone system, the security office makes contact with the trapped guest(s) to determine any medical needs or other emergency situation existing beyond being in a stalled elevator. Security should remain in the area and assist maintenance, the elevator services vendor, or local authorities to free the guest(s) from the elevator.

Medical Emergencies—Security responds to all medical emergencies on property to assess the situation, determine the level of medical response required, and place the call for assistance to 911 and other authorities who need to be involved.

Guest or Employee Death—Security instructs an employee reporting a death to secure the area and leave everything untouched. Security will respond and take control over the area. At the same time, security must notify management and local law enforcement of the situation. Once law enforcement and emergency services are on site, security assists the authorities during the investigation.

Chapter 16 – Security 273 Section 16.6 Emergency Preparedness

he security team at a hotel must be prepared to handle a wide variety of sensitive and potentially T dangerous situations. The best method for being prepared is to build a detailed emergency response plan. An emergency preparedness committee, made up of employees and managers from every department and area, and under the direction of security, should be formed and charged with creating a formal, written plan for the property to implement. The committee should use the preparedness cycle when creating the emergency response plan. The stages of the preparedness cycle are: 1. Plan—Determine the types of emergencies the property could face along with the best ways to protect both people and property during each one. 2. Organize and equip—Determine, purchase, and store all emergency preparedness supplies; this should include equipment, food, water, and possibly a backup power generator. 3. Train—Make certain every employee knows, and is capable of carrying out, his or her responsibilities during an emergency. 4. Exercise (practice)—Conduct mock emergencies to allow employees to practice responding in an emergency situation. 5. Evaluate and improve—Review and look for gaps in the plan that caused problems during the emergency exercise and take corrective action to prevent them from happening again.

Evaluate and improve Plan

Exercise Preparedness Cycle

Organize and equip Train

274 Chapter 16 – Security Emergency Response Plan The emergency response plan must clearly state how the property will respond to each type of emergency and the duties to be carried out by employees during that particular situation. It should be a detailed plan capable of being put into use at a moment’s notice since most emergencies happen without warning. The security team should oversee the process and provide training to each department so everyone on staff knows how to properly respond to the various types of emergency situations. Questions the property’s emergency preparedness committee should also ask during the emergency planning process include: • Who’s in charge of key elements in the plan and who should assist in managing the response activities? • Who will manage shutting down or modifying property operations before and during the emergency? • What method is the best choice for communicating with employees, community responders, and local, state, and federal agencies? • Is evacuation necessary and what is the safest place to send guests and employees? • Where is the best place for the emergency operations center? • How can the property and vital records/documents be protected from damage or destruction? • How can the property assist during a community-wide emergency? • What will be needed to restore the property to full operational capacity once the emergency is over?

These questions will also help determine the type of: • Equipment to purchase and store • Methods and procedures to be followed • Employee job assignments and responsibilities

Chapter 16 – Security 275 The types of emergencies requiring a response plan are the serious, potentially life-threatening ones that, without a plan in place, could have disastrous results. Hotels must have an emergency response plan in place for:

Fire—the plan must cover fire response and recovery for a fire occurring within the hotel and for wild fires threatening from the local area.

Severe Weather Emergencies—the plan must describe response before, during, and following severe weather such as tornados, hurricanes, blizzards, and flooding.

Natural Disasters—the plan must cover response, evacuation, and shelter during and following an earthquake, volcanic activity, or tsunami.

Threat of Violence—the plan must describe handling of any intruder, guest, or employee who shows sign of becoming violent. • Weapons—Monitor for detecting weapons on property and reporting it to law enforcement. • Active Shooter—Response plan for evacuating people using the safest escape route or sheltering in place during an active shooter incident.

Anti-Terrorism—the plan must describe monitoring, detecting, and reporting suspicious activities or items that may indicate a potential terrorist group is working in or targeting the property.

Human Trafficking—the plan must cover monitoring and reporting activities that indicate a possible human trafficking operation is active within the property.

Meth Labs—the plan must detail monitoring and reporting a potential methamphetamine lab or other illegal controlled substance trafficking occurring at the property.

Evacuation—the plan must cover evacuating guests and employees to a safe distance based on the type of danger and the location of the safest place to be in that situation. Bomb Threats: Determining Safe Evacuation Distances How far away should guests be moved so that they are truly safe is a common question asked by employees and security staff. The distance is determined by the type of bomb threat and the level of danger the device involved poses for the employees and guests being evacuated. On the next page is a chart detailing the various types of bomb threats a hospitality and tourism facility could experience and the minimum safe evacuation distances.

276 Chapter 16 – Security Bomb Threat Stand-Off Distances Threat Description Explosives Capacity Building Evacuation Outdoor Evacuation Improvised Explosive Device (IED) (TNT Equivalent) Distance Distance

Pipe Bomb 5 LBS 70 FT 1200 FT

Suicide Bomber 20 LBS 110 FT 1700 FT

Briefcase/Suitcase 50 LBS 150 FT 1850 FT

Car 500 LBS 320 FT 1500 FT

SUV/Van 1,000 LBS 400 FT 2400 FT

Small Moving Van/ 4,000 LBS 640 FT 3800 FT Delivery Truck

Moving Van/ 10,000 LBS 860 FT 5100 FT Water Truck

Semi-Trailer 60,000 LBS 1570 FT 9300 FT

Preferred area (beyond this line) for evacuation of people in buildings and mandatory for people outdoors. All personnel in this area should seek shelter immediately inside a building away from windows and exterior walls. Avoid having anyone outside - including those evacuating - in this area. All personnel must evacuate (both inside of buildings and out).

Source: Department of Homeland Security

Partnering with Law Enforcement Most major emergencies will fall under the direction of an outside agency. Depending on the type of situation, it may be the local police, fire department, FBI, or even the Federal Emergency Management Agency (FEMA). Consequently, during emergency response situations, there is a need for good communication and total cooperation to exist between hotel security and the responding agency. By partnering with the appropriate agencies, mock emergencies such as a guestroom fire can be practiced. This will allow employees and local responders to test each emergency response procedure. Afterwards, each policy or procedure can be evaluated for how it helped or hindered the situation, and improvements can be made based on the feedback from both employees, management, and local authorities.

Chapter 16 – Security 277 Apply Your Learning

Section 16.1 1. What must a security team in the hospitality and tourism industry be capable of providing? Explain why this is important. 2. Since 9/11, what additional areas of responsibility has security had to take on? Explain why this was necessary. 3. Why do you believe hotel security should never be used to replace law enforcement? Write a short paragraph. Section 16.2 1. What is the purpose of providing reasonable care to hotel guests? Explain your answer. 2. What type of law are innkeepers laws based on and why were they created in the first place? Write a short paragraph. 3. What are the areas covered by innkeepers laws and why do you think each one is important to guest security? Explain your answer. Section 16.3 1. What is the role of the in-house security team at a hotel and what are officers not allowed to do and why? Write a short paragraph. 2. What are the three key functions of a security officer and what do you believe is the purpose of each? Explain you answer for each function. 3. What can the front office employees contribute during an emergency situation and how can they assist security? Write a short paragraph outlining how and where the front office can assist security. 4. How can housekeeping assist security during the course of a normal work day? Explain your answer. Section 16.4 1. Why does the issuing of keys to employees need to be controlled and their use monitored? Explain your answer. 2. A hotel has a single locking mechanism on guestroom doors. What other security items could the door have installed to better protect guests? Explain why you believe each item is necessary. 3. A guestroom door has a double-locking mechanism and a fire breaks out on the floor. Security must make sure all guests have evacuated. What key will the officer need to unlock a double-locked door? Explain why it is the only key that will work using complete sentences.

278 Chapter 16 – Security Section 16.5 1. Explain why you believe security should be involved when an elevator gets stuck between floors and what the security officer must do to keep the trapped guest safe and secure. Write a short paragraph. 2. Why do you believe security should be called when a guest falls ill at the hotel? Explain your answer. 3. What dangers could a power failure pose for guests staying in a hotel? Explain your answer. Section 16.6 1. Why is emergency preparedness an important part of the security plan for a hotel? Explain your answer. 2. List the five stages of the preparedness cycle and the goal of each stage. 3. Why does each type of potential emergency need to have a written plan detailing how it should be handled by hotel security and the rest of the hotel staff? Explain your answer. 4. Housekeeping reports a guest has a hand gun in the guestroom. How should security respond to this potentially dangerous situation? Write a short paragraph. 5. Why does the security team need to develop a strong relationship with local law enforcement? Explain your answer.

Chapter 16 – Security 279 Glossary Year 1

280 A Acronyms—a word formed from a sequence of initials or groups of letters such as R.A.V.E. p. 91

—the amount posted for all advance deposits or prepayments received from guests for that date, also known as the Advance Deposit. p. 210

Advocacy—the action of supporting a cause, situation, or need based on the facts and feelings of those involved. p. 64

All-Inclusive—a resort where the cost of all lodging, meals, airport transfers, spa services, and activities are bundled into a package price. p. 190

Amenities—services or items offered to guests or placed in guestrooms for convenience and comfort at no extra cost such as soap, shampoo, and stationery. p. 122

Assets—hotel equipment, machinery, or computer systems that are considered both valuable and necessary for the smooth operation of the property. p. 124

Audio-Visual—materials using sight or sound to present information such as DVDs, PowerPoint presentations, or speaker- requested microphone sound systems. p. 180

Average Daily Rate ADR)—an occupancy ratio derived by dividing net rooms revenue by the number of rooms sold. p. 106 B Back of House—a staff-only area of the hotel, used for functional purposes, such as storage, break rooms, offices, engineering, and maintenance. p. 147

Be outstanding at your job. p. 60

Bottom Line—the last line of a financial statement that shows the net profit or loss of a company or organization. p. 76

Brand—a particular product or company associated with a name, logo, or unique characteristic that serves to identify that particular product or company. p. 58

Glossary – Hospitality and Tourism Management Program 281 C Carbon Footprint—the measurement of the amount of greenhouse gases produced through the use of fossil fuels for electricity, heating, cooling, and transportation. p. 213

City Ledger Control Folio—the amount posted as the balance due from all individual guests, groups, and companies, also known as the City Ledger. p. 210

Cold Call—a sales tactic of visiting or phoning potential clients who were not expecting to be contacted by a salesperson. In some countries this is no longer allowed. p. 242

Common Law—the general body of case law that governed England and the American colonies prior to the American Revolution. The principles and rules of action that derive their authority from the community customs and traditions that evolved over the centuries as interpreted by judicial tribunals. p. 269

Compensation—something given or received as an equivalent for loss of services or guest inconvenience. p. 64

Compliance—the observance of official or legal requirements that conform to a written standard specifying the protocols and procedures to be in use and in place at all times. p. 257

Control Point—requirements attached to specific points in the food service process to prevent unsafe and unsanitary conditions or situations from occurring. p. 172

Convictions—fixed or firm personal or business beliefs not easily changed without good reasons provided by other people or situations. p. 39

Curb Appeal—the visual attractiveness of a building as seen from the street. p. 150 D Demographics—the analysis of a variety of factors such as age, gender, educational level, income, marital status, occupation, religion, and family size to identify and group guests into a specific market segment. p. 227

Discretionary Income—the money left after necessities such as food, housing, and clothing have been paid for that can be spent for luxury items and vacations. p. 53

Diversity—the human quality of being different or varied. p. 12

Dram Shop Laws—in general, provide consistent guidelines about who is responsible when third parties suffer because of an intoxicated person’s actions—will vary from state to state. p. 178

282 Glossary – Hospitality and Tourism Management Program E Emotional Engagement—the emotional connection that an employee feels for his or her job, that causes him or her to perform the job to the highest standard. p. 76

Employee Morale—the overall outlook, attitude, satisfaction, and confidence that employees feel at work. p. 92

Entry-Level—first-level employment in a hospitality firm which usually requires a HS or equivalent level of education, training, and experience qualifications. It gives a recruit the benefit of a gainful occupation, opportunity to learn and gain experience, and serves as a stepping-stone for higher-level jobs. p. 26

Ethics—the rules or standards governing the conduct of a person or the conduct of the members of a profession. p. 38

Executive—a leader given the responsibility to manage the affairs of an organization and the authority to make decisions within specified boundaries. p. 26

Expertise Building—developing the knowledge and skills required to perform on the job at the highest level. p. 24 F Facilities Management—the management of all aspects of the hotel’s physical structure including all guest areas, along with the necessary operating equipment, systems, utilities, and employee work stations, without which the hotel could not provide a comfortable, guest experience. p. 146

Floor Par—the amount of each type of linen that is required to outfit all rooms serviced on a particular floor. p. 139

Forecasting—the process used to predict the sales of guestrooms and the rate that should be charged for a specific time of year. It helps front office managers to know when to raise or lower room rates to maximize sales. p. 106

Fraud—refers to all types of crime in which someone wrongfully obtains and uses another person’s personal data in some way that involves criminal activity or deception, typically for economic gain. Information obtained is then used to commit illegal purchases or other financial transactions without the consent of the person to whom the information legally belongs. p. 72

Front of House—the functional areas of the hotel in which employees have extensive guest contact, such as food and beverage facilities and the front desk. p. 147

Glossary – Hospitality and Tourism Management Program 283 G Going Green—a term used to describe the process of making decisions about how to conduct business and provide services to hotel guests while taking into consideration the impact those decisions will have on the environment. p. 140

Gray Water—wastewater created by activities such as doing laundry, dishwashing, and bathing, which can be recycled on site in a landscape irrigation system. p. 213

Green Practices—environmentally friendly and ecologically responsible decisions and processes that guarantee natural resources will continue to be readily available in the future. p. 106

Group Market—business a hotel receives through an outside event planner or tour operator wishing to book room nights, meals, and other hotel services for a business, family, or tour group. p. 189

Guest Credit Limits—the maximum amount of money held in a guest’s folio account to cover expenses during the stay, commonly used by business travelers with the credited dollar amount prepaid to the hotel by his or her company. p. 204

Guest Cycle—the step-by-step process the guest goes through during a hotel stay. p. 46

Guest Folio—account balanced daily by the night auditor and used to report each guest’s financial transactions. p. 204

Guest Ledger—collection of all guest folio accounts for registered guests completed by the night auditor and used to measure a hotel’s profitability. p. 204 H Hard Skills—skills used to follow established protocols, operate equipment, maintain facilities, and utilize computer systems. p. 23

HazCom—short for Hazardous Materials Communication Standard, this OSHA standard lists the steps necessary for an organization to be in compliance with the use of hazardous chemicals in the workplace. p. 258

Hospitality—the reception and entertainment of guests, visitors, or strangers at resorts; membership clubs, conventions, attractions, special events; and other services for travelers and tourists. p. 6

Human Trafficking—the act of recruiting, transporting, transferring, harboring or receiving a person through a use of force or other means, for the purpose of exploiting them. Exploitation occurs when the person is forced into illegal acts such as prostitution, unpaid labor, or slavery. p. 268

284 Glossary – Hospitality and Tourism Management Program I Identity Theft—the term used for a crime in which an imposter obtains key pieces of personal information, such as Social Security or driver’s license numbers, in order to impersonate someone else. p. 72

Inclusive—not excluding any particular groups of people. p. 12

Infrastructure—the basic, underlying framework or features of a system or organization. p. 10

Innkeepers Laws—laws passed in the 1700s to protect travelers and overnight guests from inconvenience and injury. The laws today focus on the hotel operator’s areas of responsibility such as guest security, evictions, and discrimination. p. 269

Intangible Services—items of value to guests such as comfort, safety, and enjoyable experiences that meet their emotional needs and expectations. p. 13 J Jargon—the vocabulary peculiar to a particular industry, profession, or work group. p. 86

Job Performance Standards—a measurable set of goals, objectives, and other elements that can be applied by an employer to determine the level of performance achieved by each employee. p. 50 L Lead-Time Quantity—the number of purchase units consumed between the time that a supply order is placed and the time that the order is actually received. p. 135

Liability—the fault imposed against a business for injuries that occurred on the business’s property or as a result of negligent activities by employees. p. 65

Lodging—to temporarily have a room in a hotel, motel, inn, bed & breakfast, or hostel. p. 8

Glossary – Hospitality and Tourism Management Program 285 M Management—the experience, education, and skills combined to provide the leadership to a department or segment of a business operation. p. 26

Marketing Plan—the specific actions planned to interest potential clients in a specific product, good, or service, and to persuade them to buy those items. The marketing plan is used to implement a marketing strategy. p. 224

Market Segmentations—the process whereby managers divide a varied market into distinctive and relatively homogenous subgroups or segments such as the convention or family reunion markets. p. 226

Meeting Market—business a hotel receives from an outside organization, business, or association wishing to book meeting/convention/conference room services. p. 189

Moments of Truth—critical moments when guests and staff interact, offering opportunities for staff to make a favorable impression, correct mistakes, and win repeat customers. p. 47

Morals—generally accepted customs of conduct and right living by a society, or an individual’s lifetime- learned personal practices of what is right or wrong. p. 38 N Night Audit—the nightly process that checks, corrects, and balances all accounts for registered hotel guests. p. 202 O Ordinances—codes created to clearly define how specific regulations or laws will be locally enforced. p. 179

286 Glossary – Hospitality and Tourism Management Program P Par—the number of each recycled inventory item that needs to be on hand to support daily, routine housekeeping operations. p. 132

Payment Cards—group term used for credit, debit, and cash cards used for all types of financial transactions. p. 72

Performance Standards— a list used to provide the employee with specific performance expectations for each major duty. They are the observable behaviors and actions that explain how the job is to be done. p. 29

Point of Sale POS)—the device or location where a sale or financial transaction occurs. p. 74

Portfolio—the contents of a case, such as a three-ring binder, that demonstrate recent work or school experiences, specialized training, skills, certifications, and awards. p. 32

Preventive Maintenance— a systematic approach to maintenance in which situations are identified and corrected on a regular basis to control costs and keep larger problems from occurring. p. 152

Price Point—the price a product is sold for on the retail market. p. 169

Profit and Loss P&L) Report—a financial statement that summarizes the revenues, costs, and expenses incurred by a business during a specific period of time. p. 76

Project a positive image and energy. p. 60

Property Service Standards—the standards set to ensure consistent quality guest service in areas such as safety, cleanliness, courtesy, and efficiency that all employees are expected to use. p. 31

Provide above-and-beyond service. p. 60

Psychographics—the analysis of the lifestyle choices and preferences of guests, such as discovering what would be attractive to families with young children versus older, retired couples, to create a detailed profile for use in determining which is the best to target as a market segment. p. 227 Q Quality Guest Service—a series of enhanced experiences provided to a guest by a hospitality employee to raise the level of the guest’s satisfaction. p. 50

Glossary – Hospitality and Tourism Management Program 287 R Rack Rate—the term which represents the highest possible rate a guest may be charged for a room. p. 202

Reasonable Care—the degree of care that a cautious person would use under like circumstances. p. 269

Reorder Point—the level of inventory when a reorder of inventory items must occur. p. 136

Résumé—a brief written account of personal, educational, and professional qualifications and experience, for use by an applicant when applying for a job. p. 32

Return on Investment ROI)—a performance measurement used to evaluate whether the cost of generating business produces enough profit to make it worth the investment of money, time, and effort. p. 223

Revenue Per Available Room RevPAR)—a revenue management statistic that measures the revenue- generating capability of a hotel. p. 106

Rooms-Only Hotel—an economy hotel property that has only guestrooms to offer guests; no dining or recreation options are available on site. p. 166 S Safety Stock Level—the number of purchase units that must always be on hand for smooth operation in the event of emergencies, spoilage, unexpected delays in delivery, or other situations. p. 135

Seamless Guest Experience—the smooth flow of each guest activity from one to another without disruption, resulting in an overall positive feeling of satisfaction. p. 46

Self-Esteem—a person’s overall evaluation of his or her own self worth, which can be either positive or negative. p. 39

Sensitive Information—a person’s information that is confidential and not available to the public, such as Social Security Number, a driver’s license number or state identification card number, bank account numbers, or credit/debit card numbers. p. 74

Shelter in Place—taking immediate shelter where you are—at home, work, or school—and remaining there until you are told by the authorities it is safe to leave. p. 157

Show respect and value for everyone. p. 60

Skilled-Level—the next step in developing specific skills and capabilities that can be transferred from one position to another. p. 26

Soft Skills—desirable qualities for certain forms of employment that do not depend on acquired knowledge. They include common sense, the ability to deal with people, and a positive, flexible attitude. p. 23

288 Glossary – Hospitality and Tourism Management Program Standard Recipe—a formula for preparing a menu item based on a specific portion size by using guides for measuring ingredients, cooking/preparation procedures, garnish, and equipment required to produce a menu item. p. 169

Supervisory—the level where experience, training, and initiative are combined to create the ability to lead employees and satisfy guests. p. 26

Sustainable Green Practices—the concept of taking into consideration the impact business decisions and practices have on the environment, then finding and implementing methods, materials, or systems that will minimize that impact over a long period of time. p. 140 A

B T C D

Tangible Services—services that provide for guest expectations using the physical assets of the E property. p. 13 F Target Market—the market segment for which a property is best suited such as a beachfront property G marketing a special promotion to attract families on vacation. p. 226 H Tourism—tourist travel and the services connected with it, regarded as an industry combined with hospitality. p. 6 I

V M Vendor—an outside company that provides goods or services to the hotel. p. 135 N O

Glossary – Hospitality and Tourism Management Program 289 Other Terms You Should Know

Accountability Tool—a company policy that holds employees accountable for individual behavior, actions, and duties while on the job.

Casino Hotel—a type of hotel that attracts guests who enjoy gaming, live entertainment, and other recreational activities such as golf, tennis, or spa facilities. It used to appeal only to vacation and leisure travelers, but today, convention and conference visitors account for a large portion of casino hotel business. p. 17

Catering Manager—the person in charge of the department within the food and beverage division of a hotel. Responsible for arranging and planning food and beverage functions for conventions and smaller hotel groups, and local banquets booked by the sales department.

Central Reservation Systems (CRS)—a centralized reservation system is responsible for maintaining a room availability inventory for each property included in the system. Central reservation systems are usually affiliated, meaning the system is shared by a group of common brands or owners, and non-affiliated for unrelated properties that wish to share a system to increase business.

Chief Engineer—the person responsible for a hotel’s physical operation and maintenance. pg. 147

Company Culture—the philosophy, values, behavior, dress codes, etc., that together constitute the unique style and policies of a company. p. 79

Conference and Convention Center—a large civic building or group of buildings designed for conventions, industrial shows, and the like, having large unobstructed exhibit areas and often including conference rooms, hotel accommodations, restaurants, and other facilities. p. 17

Chronic Hazard—a thing that could cause harm over a long period; for example, a chemical that could cause cancer or organ damage with repeated use over a long period.

Cruise Ship—a large, floating hotel that travels from destination to destination providing the same type of accommodations, recreation, live entertainment, and amenities as land-based hotels and casinos. Cruises appeal to guests who prefer to unpack once, have their meals provided, have a choice of recreational/ entertainment options and daily destinations to visit. p. 17

Daily Operations Report—a report, typically prepared by the night auditor, that summarizes the hotel’s financial activities during a 24-hour period and provides insight into revenues, receivables, operating statistics, and cash transactions related to the front office; also known as the manager’s report.

Economy/Limited Service Hotel—a hotel that provides clean, comfortable, inexpensive rooms that meet the basic needs of guests, and appeals to budget-minded travelers.

Electronic Locking System—a locking device that operates by means of electric current, having the advantages of an electric lock connected to an access control system which includes key control, where keys can be added and removed without re-keying the lock cylinder; fine access control, where time and place are factors; and transaction logging, where activity is recorded.

290 Glossary – Hospitality and Tourism Management Program Emergency Master Key—a key that opens all guestroom doors, even when they are double-locked.

European Plan—a billing arrangement under which meals are priced separately from rooms. p. 117

Extended Stay Hotels—a type of hotel similar to all-suite hotels but usually offering full kitchens and guest Laundromat. These amenities appeal to travelers staying longer than five days and who prefer less hotel- and more apartment-like services.

Food and Beverage Manager—the person who directs the production and service of food and beverages.

Front Office Audit—a daily comparison of guest accounts and non-guest accounts having activity with revenue center transaction information.

Front Office Auditor—an employee who checks the accuracy of front office accounting records and compiles a daily summary of hotel financial data as part of the front office audit; in many hotels, the front office auditor is actually an employee of the accounting division.

General Manager—the chief operating officer of a hotel or restaurant. p. 106

Group Block—an agreed upon number of guestrooms set aside for booking by guests planning to stay as a group for a set number of days. The rooms are “blocked” for an expected number of guests. A final count of actual guests “booked” is normally required ten days out from the arrival date and all remaining rooms are released back into the property inventory for sale to other guests.

Global Distribution Systems (GDS)—a distribution channel for travel reservations systems that provides worldwide information about hotel, airline, cruise lines, and car rental availability, and allows agents to sell travel to destinations around the world.

Green—the symbolic color of environmentalism that describes all efforts to reduce man’s impact on the natural world.

Guaranteed Reservation—a reservation that ensures that the hotel will hold a room until a specific time of day on the guest’s scheduled day of arrival; the guest guarantees payment for the room, even if it is not used, unless the reservation is canceled according to the hotel’s cancellation policy. p. 111

Guest Service—meeting customer needs in the way that they want and expect them to be met. p. 13

Hazard Communication (HazCom) Standard—OSHA’s regulation requiring employers to inform employees about possible hazards related to chemicals they use on the job. p. 258

Hospitality and Tourism Industry—the service industry that includes lodging, restaurants, event planning, theme parks, transportation providers, and cruise lines. p. 8

Internet Distribution Systems (IDS)—online reservation services that allow travelers to book their own flights, reserve hotel rooms, and select rental cars using a personal computer. Examples of IDS are Expedia, Hotwire, Priceline, and Travelocity.

Job Safety Analysis—a detailed report that lists every job task performed by all housekeeping employees. Each job task is further broken down into a list of steps. These steps are accompanied by tips and instructions on how to perform each step safely. p. 253

Glossary – Hospitality and Tourism Management Program 291 Labor Costs—the cost of wages paid to employees during a pay period, plus payroll and related taxes and employee benefits such as health insurance and paid vacation time. p. 256

Late Charges—charged purchases made by guests that are posted to folios after guests have settled their accounts. p. 114

Late Check-Out Fee—a charge imposed by some hotels on guests who do not check out by the established check-out time.

Marketing Manager—the person who develops and implements a marketing plan and budget.

Material Safety Data Sheets (MSDS)—a form that is supplied by a chemical’s manufacturer containing information about a chemical.

Maximum Quantity—the greatest number of purchase units that should be in stock at any given time. p. 133

Minimum Quantity—the fewest number of purchase units that should be in stock at any given time. p. 133

Modified American Plan—a billing arrangement under which the daily rate includes charges for the guestroom and two meals—typically breakfast and dinner. p. 117

Non-Guaranteed Reservation—a reservation agreement in which the hotel agrees to hold a room for the guest until a stated reservation cancellation hour on the day of arrival; the property is not guaranteed payment in the case of a no-show. p. 111

Non-Recycled Inventories—those items in stock that are consumed or used up during the course of routine housekeeping operations. Non-recycled inventories include cleaning supplies, small equipment items, guest supplies, and amenities.

Occupancy Percentage—an occupancy ratio that indicates the proportion of rooms sold to rooms available for sale during a specific period of time. p.211

Occupancy Ratios—a measurement of the success of the hotel in selling rooms; typical occupancy ratios include average daily rate, revenue per available room, average rate per guest, multiple occupancy statistics, and occupancy percentage.

Occupancy Report—a report prepared each night by a front desk agent that lists rooms occupied that night and indicates guests who are expected to check out the following day. p. 139

Occupational Safety and Health Act OSHA—a broad set of rules that protects workers in all trades and professions from a variety of unsafe working conditions. p. 257

Other Travel Accommodations—alternative places where travelers can stay overnight other than hotels, such as camping, recreational vehicle RV, hostels, travel by water in yachts, sailboats, and cruise ships. p. 17

Overflow Facilities—a property selected to receive central system reservation requests after room availabilities in the system’s participating properties within a geographic region have been exhausted.

Par Number—a multiple of the standard quantity of a particular inventory item that represents the quantity of the item that must be on hand to support daily, routine housekeeping operations. p. 133

292 Glossary – Hospitality and Tourism Management Program Permanent Folio—a file used to track guest folio balances that are settled to a credit card company.

Perpetual Inventory—a system in which receipts and issues are recorded as they occur; this system provides readily available information on inventory levels and cost of sales.

Physical Inventory—the act of taking a physical count of all the linen and recording the amounts on an inventory count sheet. This inventory should be conducted at least quarterly if not monthly. p. 139

Posting—the process of recording transactions on a guest folio.

Productivity Standard—an acceptable amount of work that must be done within a specific time frame according to an established performance standard. p. 125

Property Management System (PMS)—a computer software package that supports a variety of applications related to front office and back office activities. p. 110

Reader Board—a posting or closed-circuit broadcast of daily events at a hotel. p. 113

Sales Manager—the person who conducts sales programs and makes sales calls on prospects for group and individual business, and reports to the marketing manager. p. 241

Shortage—an imbalance that occurs when the total of cash and checks in a cash register drawer is less than the initial bank plus net cash receipts.

Staffing Guide—a system used to establish the number of labor hours needed.

Upselling—a sales technique whereby a guest is offered a more expensive room than what he or she reserved or originally requested, and then persuaded to rent the room based on the room’s features, benefits, and his or her needs. p. 245

Vacation Ownership Properties—a property where a guest will purchase a specific number of weeks or points that are then applied to the type of accommodations the guest wishes to use. The guest then “owns” that guest unit for the same time period every year for however long the ownership is contracted to last. Many people prefer to vacation at the same time and same place every year, and it was this preference that led to the development of the vacation ownership property. p. 17

Voucher/MCO—a voucher or miscellaneous charge order MCO issued to guests who prepay the deposit amount to the travel agent. The travel agent then forwards the voucher or MCO to the hotel as a proof of payment and a guarantee that the prepaid amount will be sent to the hotel when the voucher is returned to the travel agent following the guest’s stay. p. 111

Walk-In—a guest who arrives at a hotel without a reservation.

Yield Statistic—the ratio of actual rooms revenue to potential rooms revenue. p. 212

Glossary – Hospitality and Tourism Management Program 293 Index Year 1

294 A Concierge, 16, 102, 106, 108, 110 Family-style Service, 174 Condominium, 16 Fine-Dining, 165 Account Balances, 114 Conference, 16–17, 245 Fire Extinguishers, 263 , 210 Conference and Convention Center, 17 Fire Response, 276–277 Accounts Receivable, 210 Control Point, 172 Fires, 106, 157, 263 Acronyms, 91 Convention, 241–242, 245 Fire Safety, 262–264 Active Shooter, 276 Convention/conference sales, 245 Floor Attendant, 130 Advance Deposit, 111 Convictions, 39 Floor Par, 139 Advertising, 22, 49, 227–228, 232, 243 Cost Centers, 203 Floor Supervisor, 130 Advocacy, 64, 66 Cost Control, 146, 148 Food and Beverage, 103, 147 Airport Hotels, 16 Cross-selling, 245 Forecasting, 106 All-Inclusive Resort, 117, 190 Cruise Lines, 191 Four Ps, 224 All-Suite Hotels, 16 Cruise Ships, 17, 191–193 Fraud, 72, 79 Amenities, 16–17, 78, 104, 122, 127, Curb Appeal, 150 Front Desk Representative, 27, 34, 108, 132–133, 135, 137, 159, 188, 192, 112, 114 213, 245 D Front Office, 100, 102–104, 113 American Plan, 117 Front of House, 122, 147 Americans with Disabilities, 61, 113, 148, Death, 273 170, 255 Demographics, 227 G Anti-Terrorism, 276 Departure, 49 Assets, 124 Director of Meeting, Events, and General Manager, 106, 113 Audio-Visual, 180 Convention Sales, 241 Going Green, 140, 213 Audit, 102 Director of Sales, 241 Gray Water, 213 Automated Inventory Control System, 134 Director of Sales and Marketing, 241 Green Practices, 102, 106–107, 131–133, Average Daily Rate (ADR), 106, 205 Discretionary Income, 53 158–159, 183, 233 Diversity, 12, 18, 53, 61, 232 Green Team, 141 B Dram Shop Laws, 178 Group Market, 189 Groups, 11, 16–17, 245 Back of House, 122, 147, 270 E Group Sales, 245 Banquets, 17, 180 Guest Complaints, 65, 113 Bed and Breakfast, 17 Economy properties, 102 Elevator Malfunctions, 273 Guest Credit Limits, 204 Bottom Line, 76 Guest Cycle, 59, 70, 72–74 Brand, 58, 66–67 Elevators, 151 E-mail, 35, 49, 86, 91, 242, 256 Guest Experience, 13, 23, 36, 46–47, Brands, 243 58–61, 66–67, 78, 84, 92, 94, 99, Buffet Service, 175 Emergency Maintenance, 156 Emergency Planning, 146 130, 176, 188 C Emergency Preparedness, 157, 274 Guest Folio, 110–112, 204 Emergency Response Plan, 276 Guest Ledger, 204 Campgrounds, 188 Emotional Engagement, 76 Guestroom Attendant, 27, 122, 124, 126, Carbon Footprint, 213 Employee Morale, 92 129–130, 155 Career Ladder, 22, 26 Energy Conservation and Management, Guestroom Maintenance, 129, 146 Cart Service, 174 159 Guest Service Gold, 29, 62–63 Cash Bank, 116–117 Engineering, 147–149 H Cashier, 102, 108, 110 Entry-level, 22, 26–27, 50, 149, 156 Casual-Dining, 165 Equipment, 106, 127, 128 HACCP, 173 Catering, 180 Ethics, 38, 232 Hard Skills, 23 Central Reservation Office (CRO), 108, European Plan, 117 Hazardous Materials, 159, 258 111 Evacuation, 263, 275, 276 Hazardous Materials Communication, 258 Check-out, 110, 116 Executive, 26 Hazardous Materials Management, 159 Chef, 192 Executive Housekeeper, 122–125, 132–134 HazCom, 258 Chief Engineer, 152, 155 Expertise Building, 24 Health and Safety Program, 254 City Ledger Control Folio, 210 Extended-Stay Hotels, 16 Hospitality, 6 Cold Call, 242 Host or Hostess, 17 Comm Center, 95 F Housekeeping, 27, 103, 120, 122–140 Commercial Hotel, 16 Facilities Management, 146, 149–150, Housekeeping Manager, 130 Common Law, 269 Human Trafficking, 268, 276 Compensation, 64 156–158 Complaints, 30, 65, 103 Falls, 260 Compliance, 254–255, 257–258 Family-Dining, 165

Index – Hospitality and Tourism Management Program 295 I N Recreational Vehicles (RV), 194 Recycling, 102, 106–107, 141, 159, 213 Identity Theft, 72, 79, 107 National Restaurant Association, 3 Referrals, 243 Inclusive, 12 Natural Disasters, 157, 276 Registration Record, 112 Infrastructure, 10 Night Audit, 102, 114, 202 Regulatory Compliance, 146, 148, 254–255 Innkeepers Laws, 269 Night Audit Calculations, 211 Relationship Building, 102, 243 Intangible Services, 13 Night Auditor, 108, 205, 211–212 Reorder Point, 136 Interdepartmental Communication, Non-guaranteed Reservation, 111 Reservationist, 108 94–95, 102, 129 O Reservation Record, 108, 111 Internet, 3, 7, 16, 74, 111, 233, 242 Residential Hotel, 16 Interview, 23, 32, 36–38 Occupancy, 48–49, 59, 106, 116 Resort Hotel, 17 Inventory, 120, 135–136 Occupancy Percentage (OP), 205, 212 Restaurant Servers, 245 Issuing, 137, 139 Occupational Safety, 148, 253–254, 257 Résumé, 32, 34–35 J Occupational Safety and Health Return on Investment (ROI), 223 Administration (OSHA), 148, 254 Revenue Center, 203–204 Jargon, 86 Operational Safety, 250, 259 Revenue Per Available Room (RevPAR), Job Performance Standards, 50 Ordinances, 179 106, 205, 211 Job Safety Analysis, 253 Other Travel Accommodations, 17 Risk Management, 172, 254 Room Inspection, 128 K P Room Rate, 17, 110–112, 114, 117 Rooms-Only Hotel, 166 Keys, 116, 124 Par, 132–133, 138 Routine Inspection, 153 Par Number, 138 Routine Maintenance, 153, 156 L Payment, 49, 72, 74 Labor Costs, 156, 168–170 Payment Cards, 72 S Land-Use Planning and Management, 159 Performance Standards, 29, 50, 106, 115 Safety and Security, 248, 269–270 Laundry, 138–139 Plate Service, 174 Safety Stock Level, 135–136 Laundry Attendant, 130 Platter Service, 174 Sales, 236, 238–245 Laundry Cycle, 138 Point of Sale (POS), 74, 190 Sales Department, 238–240 Laundry Manager, 130, 138 Portfolio, 32, 35 Sales Manager, 241 Law Enforcement, 276 Posting, 114 Seamless Guest Experience, 60, 106 Leadership, 26, 106 Power Failures, 103–104 Search Engine Optimization (SEO), 230 Lead time quantity, 135 Power Outages, 157, 273 Security, 203, 266, 268–277 Liability, 65, 255 Pre-Arrival, 59, 190 Self-Esteem, 39 Linen, 124, 127, 138–139 Preventive Maintenance, 129, 152–155 Sensitive Information, 74 Linen Room Attendant, 131 Price Point, 169 Settlement, 49, 108, 110, 112 Lodging, 8, 25 Productivity standard, 125 Profit and Loss (P&L) Report, 76 Severe Weather, 268, 276 M Property Management System (PMS), 108, Shelter in Place, 157 110–111, 116 Shortage, 137, 138 Maintenance, 129, 146, 148, 151–155 Property Service Standards, 31 Skilled-level, 26 Management, 26 Prospecting, 242 Ski Resorts, 190 Marketing, 217–218 Psychographics, 227 Slips, 260 Marketing Messages, 229–230 Public Space Cleaner, 27, 122, 131 Soft Skills, 23, 29, 50 Marketing Plan, 217, 224 Public Space Supervisor, 131 Solid Waste Management, 159 Marketing Tools, 229, 233 Spa Resorts, 54, 189 Market Segmentations, 226 Q Sports and Recreation, 196 Medical Emergencies, 273 Standard Recipe, 169 Quality Guest Service, 50 Meeting Market, 189 Strategic Alliances, 243 Quick-Casual, 165 Meeting Room Sales, 245 Suggestive Selling, 245 Quick-Service, 165 Meth Labs, 276 Supervisor, 27, 124, 130, 131 Minimum Quantity, 135 R Supervisory, 26 Modified American Plan, 117 Sustainable Green Practices, 140, 158 Moments of Truth, 47 Rack Rate, 202, 212 Monthly Inventory Count, 134 Reader Board, 113 Morals, 38 Reasonable Care, 269

296 Index – Hospitality and Tourism Management Program T Tangible Services, 13 Target Market, 194, 226–229 Tent Camping, 194–195 Terrorism, 106, 157, 271 Theft, 65, 72, 79, 268, 273 Threat of Violence, 276 Tourism, 6, 8 Tour Operators, 14, 196 Transportation, 3, 6, 14–15, 49, 51, 53, 61, 67, 78, 102, 108, 197, 242, 244 Trips, 260 Turndown Attendant, 130 U Uniformed Services, 16, 102, 108, 270–271 Upselling, 245 User Registration Database (URD), 230 V Vacation Ownership Properties, 17 Vendor, 67, 108, 135, 156, 233, 244–245 Verbal Communication, 86–87 W Walk-in, 150, 183 Waste-Water Management, 159 Water Conservation, 158–159 Weapons, 271, 276

Index – Hospitality and Tourism Management Program 297 Photo Credits Year 1

Cover – iStock.com/Rapid Eye Media

298 All photographs and images in this textbook are presented for educational purposes only and should not be considered actual materials or settings. All images are copyrighted, and penalties apply to any use other than this textbook’s purpose.

Comstock, 264, 298

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Getty Images, Inc., 44, 45, 56, 57, 238, 280 iStock.com, 3, 4, 8, 12, 13, 14, 16, 17, 35, 53, 54, 60, 64, 65, 66, 67, 70, 74, 77, 78, 82, 85, 88, 89, 90, 99, 107, 109, 117, 120, 125, 140, 162, 165, 166, 168, 183, 191, 192, 193, 194, 196, 197, 200, 217, 218, 222, 223, 232, 236, 238, 239, 241, 242, 253

SafetySmart/Fox Television, 256

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Veer, 100

The American Hotel & Lodging Educational Institute (EI) would like to thank the following which were gracious in permitting EI to photograph their properties.

Courtyard by Marriott® Orlando Downtown – 730 North Magnolia Avenue, Orlando, FL

Courtyard Orlando Lake Buena Vista in the Marriott® Village – 8623 Vineland Avenue, Orlando, FL

Hilton® Orlando – 6001 Destination Parkway, Orlando, FL

Nickelodeon™ Suites Resort – 14500 Continental Gateway, Orlando, FL

Reunion Resort® – 7593 Gathering Drive, Reunion, FL

JW Marriott® Orlando – 4040 Central Florida Parkway, Orlando, FL

Photo Credits – Hospitality and Tourism Management Program 299