Hospitality and Tourism Management Program 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. From the Declaration of Principles jointly adopted by the American Bar Association and a Committee of Publishers and Associations Nothing contained in this publication shall constitute a standard, an endorsement, or a recommendation of the American Hotel & Lodging Educational Institute (EI) or American Hotel & Lodging Association (AH&LA). The Institute and AH&LA disclaim any liability with respect to the use of any information, procedure, or product, or reliance thereon by any member of the hospitality industry. 2012 By The AMERICAN HOTEL & LODGING EDUCATIONAL INSTITUTE 800 N. Magnolia Ave, Suite 300 Orlando, FL 32803 The American Hotel & Lodging Educational Institute is a nonprofit educational foundation. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means electronic, mechanical, photocopying, recording, or otherwise without prior permission of the publisher. Printed in the United States of America 3 4 5 6 7 8 9 10 17 16 15 14 13 ISBN 978-0-86612-403-4 (Hardbound) ISBN 978-0-86612-430-0 (Softbound) ii Hospitality and Tourism Management Program

Subject Matter Experts EI Educational Focus Group Acknowledgements Subject Matter Experts Hospitality and Tourism Industry Darron Kirkley Hospitality and Tourism Management Teacher North Central High School Kershaw, SC Douglas OFlaherty Director of Operations South Carolina Hospitality Association Columbia, SC Jillian Ely Hospitality and Tourism Consultant Little Rock, AR Lisa Perras Business and Hospitality Instructor Mountain View Academy White Mountains Regional High School Whitefield, NH Patricia LeCompte Marketing/Hotel, Resort, & Tourism Management Instructor Monroe Career & Technical Institute Bartonsville, PA Technical Assistance Courtyard by Marriott Orlando Downtown Cheryl Seckman, General Manager Jorge Vargas, Operations Manager Janett González, Housekeeping Supervisor Carlos Lopez, Front Desk Representative Courtney Cruz, Front Desk Representative Debra Rangoo, Guestroom Attendant Maria Walker, Chef Robert Spitler, Facilities Maintenance Rocio Lopez, The Bistro Rosemary Albert, The Bistro Zenaida Panora, Public Space Cleaner Britt Mathwich, CHA President The Lodge Resort and Spa Cloudcroft, NM Frankie F. Miller, Ph.D. Hospitality, Culinary, Tourism Educational Consultant Retired Dean, Culinary Institute of Charleston, SC Isaac W. Lewis, CHA General Manager Comfort Suites Jill A. Staples, MS CHA, CHE, CHS, President North Star Hospitality, LLC Jordan Langlois, CHA Vice-President, Brand Management Vantage Hospitality Group, Inc. Marjorie O Connor General Manager Certification, Best Western International General Manager BEST WESTERN PLUS Chelmsford Inn and Massachusetts Dept of Education, Hospitality Management (9-14) License Hotel/Lodging Instructor Greater Lowell Technical High School Linda Korbel, CHA Owner and Lead Designer/Facilitator Korbel Consulting Nick Trahair, CLM General Manager AmericInn Traverse City, MI EI Technical Team Dawn Nason, Writer Kathleen McDermott, Editor 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. Why the Pineapple? Pineapple Fun Fact 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. Why are green practices important? Green Practices 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 XChapter X 1 Hospitality and Tourism XChapter X 2 Careers in Hospitality 2

Unit Overview Over the past 100 years, the hospitality and tourism 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 XSection X 1.1 Introduction XSection X 1.2 History of Hospitality and Tourism XSection X 1.3 Global View of Hospitality and Tourism XSection X 1.4 Scope of the Industry XSection X 1.5 The R.A.V.E. Principle: Respect and Value Everyone XSection X 1.6 Guest Service on a Global Scale XSection X 1.7 Types and Organization of Accommodations Competencies 1. Describe the changes hospitality and tourism have experienced in modern times. 2. Explain how hospitality and tourism depend on one another for success. 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-forprofit 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 Terms you should know 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. The pace of change seemed to explode following 1945 and the end of World War II, and the impact of those changes altered the face of hospitality and tourism forever. No longer was travel reserved for only the very wealthy. In the 1950s and 1960s, all forms of transportation became more accessible and affordable. This resulted in business travel becoming a common practice, and the birth of the family vacation. In the following decades, more and more people began to travel, not just to visit family and friends, but for the pure pleasure of seeing the world. The result was tourism as we know it today. Hospitality and tourism have grown into a large industry, so much so that many countries, such as the United States, Japan, Great Britain, and China, consider it to be a key business driver within their economies. 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, the reasons why most people travel can usually be placed into one of five categories: Business a need to conduct business, attend a conference, convention, or meeting. Recreation a wish for rest, relaxation, sports, and entertainment. Visits to family and friends a wish or need to spend time with loved ones. Culture a desire to learn about different places and things of interest. 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 Terms you should know Lodging to temporarily have a room in a hotel, motel, inn, bed & breakfast, or hostel. The modern history of hospitality and tourism really began in 1910 when 60 hotel operators formed the American Hotel Protective Association. Today, this association operates as the American Hotel & Lodging Association (AH&LA) which acts as a moving force in ensuring that the hospitality and tourism industry continues to thrive and meet the needs of its global audience. Throughout history, travel has always contained the aspects of exploration, discovery, and financial gain at its very core. It is no different today; people want to visit places they ve never been to learn about the heritage, culture, and natural wonders found at those locales. Business travelers seek to buy and sell in a global economy while technology makes even the most remote places more accessible to the traveling public. Today s traveler wants to explore the Amazon rainforest, conduct business in Dubai, walk the Great Wall of China, ride a gondola in Venice, watch kangaroos in the Australian outback, gaze across the Grand Canyon, and be amazed by the engineering of Stonehenge. Along with this desire is the guest s expectation that the hospitality and tourism industry be ready and able to not only meet, but be capable of exceeding, his or her travel needs. 1910 The American Hotel Protective Association is founded in Chicago and today is known as the American Hotel & Lodging Association (AH&LA). 1926 Route 66 is completed, linking Los Angeles and Chicago. 1943 Travel by train becomes popular and hotels benefit from the increased guest traffic. 1947 The Roosevelt Hotel is the first to install TVs in all guestrooms. 1939 The first flight is made by a jet airplane opening up a new option in travel. 1910 Grand Old Hotel 1910 1920 1930 1940 1950 8 Chapter 1 Hospitality and Tourism

1953 The American Hotel Institute is launched; today it operates as the American Hotel & Lodging Educational Institute (AHLEI). 1981 The boutique hotel concept is born. 2001 Following the attacks of 9/11, hotels implement new antiterrorism and security measures. 1957 Hilton Hotels offer a direct-dial telephone service in guestrooms. 2007 Smartphones and apps are embraced by the hospitality industry, with both guests and employees utilizing the variety of services these phones provide. 1969 Chain hotels begin offering swimming pools as a way to increase profits. 1972 Hotels begin accepting credit cards to guarantee guestroom reservations. 1990 The Americans with Disabilities Act (ADA) becomes law and hotels begin offering accessible guestrooms and amenities. 2008 Flat-screen TVs become the new standard for guestrooms. The future of innovation and change will continue to globally drive the hospitality and tourism industry. 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 Terms you should know Infrastructure the basic, underlying framework or features of a system or organization. Hospitality has to meet the needs of modern tourism by providing a menu of travel choices for finding, reaching, and staying at any destination. This means the travel-based industries must depend on one 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, restaurants, and other local services to ensure that one person is able to reach, sleep, eat, enjoy, and conduct business during their trip. If you multiply that same total of travel needs by the number of people wishing 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 T he scope of hospitality-related businesses required to meet the needs of a destination s guests will typically fall into one of the following groups: Accommodations Hotels Resorts Motels Hostels Vacation rentals Vacation ownership Bed & Breakfast properties Recreational vehicles and camping Transportation Airlines Cruise lines Rail Car rentals Tour/coach operators Bus lines Taxis Food and Beverage Restaurants Full-service Fine dining Quick service Bars and lounges Attractions Theme parks Zoos National, state, and local parks Natural wonders Heritage sites Chapter 1 Hospitality and Tourism 11

Section 1.5 The R.A.V.E. Principle: Respect and Value Everyone Terms you should know Diversity the human quality of being different or varied. Inclusive not excluding any particular groups of people. Diversity Diversity is a complex concept and can be very challenging to learn. Typically, diversity requires hospitality and tourism employees to be sensitive to differences such as race, gender, age, physical abilities, 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 and must be appreciated as a one-of-a-kind individual. This is not a tough concept to understand but is a hard one to actually use at work each day. 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 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 coworkers 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 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 Guests arrive at every destination with a set of expectations and requirements that need to be met by the people operating that property, attraction, or restaurant. The delivery of the services guests want and need is known as guest service. This sounds simple, but really, guest service is one of the most difficult skills anyone working in hospitality and tourism can master. However, those who do master the skills will find working with guests to be exciting and rewarding. So, if you had to define guest service, what might you say? A simple definition would be that guest service is meeting the needs of guests the way they want and expect them to be met. It is important to remember that guest expectations are not limited to one culture or country, but are universal and desired by every person who travels. Consequently, guest service is 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 Meet my 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. Terms you should know Tangible Services services that provide for guest expectations using the physical assets of the property. Intangible Services items of value to guests such as comfort, safety, and enjoyable experiences that meet their emotional needs and expectations. 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 When traveling, people will carefully decide what type of accommodations to book for their temporary 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 longterm 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 XSection X 2.1 Introduction XSection X 2.2 The People of Hospitality and Tourism XSection X 2.3 Exploring Careers in Hospitality and Tourism XSection X 2.4 Types of Hospitality and Tourism Careers XSection X 2.5 The Hospitality and Tourism Professional XSection X 2.6 You As a Guest Service Professional XSection X 2.7 Career Goals: The Job Hunt, Résumé, and Portfolio XSection X 2.8 The Interview Process XSection X 2.9 Ethics: Doing the Right Thing XSection X 2.10 Self-Esteem: Respect and Value Yourself Competencies 1. Identify the type of person found working in the hospitality and tourism industry. 2. Identify the importance of expertise building through on-the-job experience. 3. Identify the type of potential careers available in the hospitality and tourism industry. 4. Explain the various career paths available in the hospitality and tourism industry. 5. Explain the role of the hospitality professional. 6. Explain the skills and responsibilities of a guest service professional. 7. Identify the steps required during the job hunt and interview process. 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. 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. 21

Section 2.1 Introduction The hospitality and tourism industry offers a much wider choice of career options than most other 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 nineto-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 Those who work in hospitality and tourism know that it takes a special type of person to fill the vast array of jobs available in the industry. They also know that a successful hospitality and tourism operation must utilize both art and science. In what way does this happen? For art, it is the employee s ability to create a place where guests feel welcome, safe, and comfortable, while science involves the employee being able to consistently provide guest accommodations and services that will meet or exceeds guests expectations. Hospitality and tourism careers can be exciting, sometimes challenging, and occasionally glamorous. Today s guests are global travelers from all walks of life, a variety of culture and religions, and have very high guest service expectations. Anyone considering a career in hospitality and tourism must be prepared to work with a diverse guest audience and be willing to develop the necessary job skills. The job skills required will be either hard skills such as utilizing the various computer systems, or soft skills such as providing a special guest experience that is interesting and enjoyable. When exploring a potential career option, it is always a good idea to learn as much as possible before making a final decision. Some of the questions people thinking of a career in hospitality and tourism should 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? Terms you should know Hard Skills skills used to follow established protocols, operate equipment, maintain facilities, and utilize computer systems. 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. Chapter 2 Careers in Hospitality 23

Section 2.3 Exploring Careers in Hospitality and Tourism Terms you should know Expertise Building developing the knowledge and skills required to perform on the job at the highest level. Why are the questions listed in the previous section of this chapter so important? Exploring career options is important because the type of business people chooses for their first hospitality or tourism job will have a strong influence on the career path they will take. Why? Because those job skills that are first learned will make a person feel comfortable in the job and at the same time provide a sense of belonging in that sector of the industry. Typically, once a person feels they belong somewhere doing something, they will naturally begin to take ownership of job duties and responsibilities. Once this happens, 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 It is estimated that more than 1.8 million people work in the U.S. lodging industry and an estimated 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

Terms you should know 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 higherlevel jobs. Skilled-Level the next step in developing specific skills and capabilities that can be transferred from one position to another. Supervisory the level where experience, training, and initiative are combined to create the ability to lead employees and satisfy guests. Management the experience, education, and skills combined to provide the leadership to a department or segment of a business operation. Executive a leader given the responsibility to manage the affairs of an organization and the authority to make decisions within specified boundaries. Hospitality and Tourism Career Path The starting point of any career path will depend on a person s 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 the industry. However, most people entering the hospitality and tourism industry will typically start as line-level employees and go up the career ladder from that point. Personal progress will depend on the employee developing and mastering the desired job position s required tasks, knowledge, and skills. A Typical Career Path Entry-level and Skilled-level provide services directly to guests: Hourly position that requires no experience except willingness to develop. Hourly position requiring previous experience and mastery of specific job skills. Oversees front line operation Supervisory and Management levels are responsible for departmental operations: Manages hourly and supervisory level employees. Responsible for administrative or higher level of a company, business, or hotel. Executive positions provide: Financial, operational, and leadership required for a business to function efficiently, effectively, and profitably. How long it takes to achieve each step on career path will depend on your: Ability to set personal goals Willingness to learn Ability to build good habits Work experience Self-motivation Self-discipline Willingness to take risks Entry-level Linelevel Skilledlevel Skilled-level Management Supervisory Executive 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) Entry-Level Front Desk Representative Restaurant Server Guestroom Attendant Maintenance Employee Supervisor Certified Hospitality Supervisor (CHS) Chapter 2 Careers in Hospitality 27

Section 2.5 The Hospitality and Tourism Professional When should someone begin developing themselves into an industry professional? The answer is, 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 After mastering the basic skills of the hospitality and tourism professional, the next step is to develop the soft skills needed to professionally deliver guest service. The best place to start is by learning to use the basic standards for guest service. There are four main components of any guest interaction and they are the same no matter the person s personal background. This raises the questions: what is the professional guest service performance standard? What does it mean? How is it used by the hospitality and tourism industries? The four main components of the guest service performance standard are related to the R.A.V.E. model in chapter 1. Each one is simple and easy to understand. Make the guest feel special. Treat the guest as an individual. Treat the guest with respect. Let every guest know he or she is a VIG (Very Important Guest). Terms you should know 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. After becoming comfortable with using the guest service performance standard, the next step to becoming a guest service professional would be to learn the basic soft skills everyone in hospitality and tourism must master. No matter what industry or business a person may build a career 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 chapter 4). Display appropriate body language at all times. Protect the guest experience from negative influences. Thank each and every guest. Guest Service Gold A training program from EI that teaches hospitality and tourism professionals how to engage and connect with their guests to deliver service that goes 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 provide: A clean, safe place to stay, dine, and/or play A place that is welcoming A staff that is knowledgeable Short wait times for services A place and staff that can keep its guest service promises Meeting Guest Expectations + Exceeding Guest Expectations Exceptional Guest Service Terms you should know 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. 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 Terms you should know Résumé a brief written account of personal, educational, and professional qualifications and experience, for use by an applicant when applying for a job. 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. Searching for a job takes a lot of patience and time. People who are serious about getting a job, need to be dedicated, organized, and always on the hunt for an available position. Scheduling time into each day to search for job openings, submitting résumés, building a portfolio, and completing applications is extremely important, especially for students looking to launch their careers while still in school or following graduation. The job hunt begins with a person researching the various segments of the industry to determine which are a right fit for his or her job skills, training, education, and experience. Job Hunt Sequence 1. Select a segment of the industry Hotel Restaurant Attraction 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 Park Travel/Event Planners Zoo Museum Theme Park Restaurant Cruise Line Car Rental Agencies Hotel Hotel Airline 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 Front Desk Representative 2010 present Captain Anchor s Seafood Grill 2009 2010 Server Education Learnersville Community College Seeking an AA Degree in Hospitality Management 2010 present 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 How you look, act, dress, behave, and perform on the job is extremely important to anyone wishing 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 Terms you should know Ethics the rules or standards governing the conduct of a person or the conduct of the members of a profession. 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. It is important to be honest on the job. Why? Because it is the right thing to do. The way to decide what is right from wrong on the job involves something known as ethics. Ethics are the set of rules used to determine 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 learn and follow. Sometimes ethics means following the letter of the law while at other times it means following your heart, which tells you it is the right thing to do. This is often known as following your own morals. During a job interview, it is important to answer all questions honestly, 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 they hired did not tell the truth about their abilities. Using a Moral Compass The person conducting the interview is looking for answers to questions that show not only that the interviewee is capable of doing the job, but 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 Self-esteem is important to anyone wishing to have a positive attitude toward life and build a successful career. Why? Because it is important to respect and value yourself and allows you to see what you are capable of achieving. Most importantly, it prevents you from giving up. Those 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 career-starting job will require a lot of self belief and direction during the job hunt. When you believe in yourself and understand that your point of view is valuable, you will be more likely to follow your convictions and make good career choices. 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 grows into an adult. However, this doesn t mean someone who thinks they have low self-esteem is stuck that way for life. Instead, it means he or she will need to learn what must be done to raise their self-esteem from 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 Focus on what you like about yourself Walk and talk with confidence Always smile and stand up straight Be Prepared Plan and prepare for all upcoming tasks Confidence 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 Achievement Smile Positive Terms you should know Self-Esteem a person s overall evaluation of his or her own self worth, which can be either positive or negative. Convictions fixed or firm personal or business beliefs not easily changed without good reasons provided by other people or situations. Focus Learn Confidence 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 XChapter X 3 Guest Cycle XChapter X 4 Guest Experience Cycle XChapter X 5 Financial Processes and the Guest Cycle XChapter X 6 Communication 42

Unit Overview This unit focuses on the types of soft skills demonstrated 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 XSection X 3.1 Introduction XSection X 3.2 Stages of the Guest Cycle XSection X 3.3 Guests: Who Are They? XSection X 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. 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. 45

Section 3.1 Introduction Terms you should know Guest Cycle the step-bystep process the guest goes through during a hotel stay. Seamless Guest Experience the smooth flow of each guest activity from one to another without disruption, resulting in an overall positive feeling of satisfaction. The flow of business can be divided into a four-stage guest cycle that has been traditionally associated with the hotel industry. However, in recent years other segments of the hospitality and tourism industry have adopted the four stages of the guest cycle. The goal is a seamless guest experience during the stages of pre-arrival, arrival, occupancy, and departure. This enables employees to efficiently serve guests with a clear understanding of the flow of a guest s personal and business needs during each stage of the guest cycle. It also guarantees all financial transactions occur at the correct time and are processed accurately. This chapter s focus is on following the guest through the cycle and how each stage influences guest thoughts and decisions. Hotel Restaurant Rental Theme park Pre-Arrival Arrival Occupancy Departure Room Reservation Check In Hotel Stay Check Out Dining Reservation Be Seated Dining Experience Pay Bill Car Reservation Pick Up Use of Car Return Car 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. It is the stage when the guest makes plans, reservations, and important financial decisions. Typically, what the guest accomplishes during the pre-arrival stage will include decisions such as: Pre-Arrival Destination Departure date Return date Transportation Length of stay Activities Budget Price Method of payment where they plan to go when they plan to leave when they plan to return home how they plan to travel there and back how long they plan to stay what they plan to do during the stay how much they plan to spend the cost for each item and if it fits in the budget how they plan to pay for everything Terms you should know 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. 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 Employee: Personality, Efficiency, Attitude Experience Property: Appearance, Staff Professionalism, Ambiance Arrival Positive Guest likes Negative Guest dislikes Positive Guest likes Negative Guest dislikes 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: Occupancy: The Dark Side 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? Quit talking to your buddy and help me. I m a paying guest. 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. Departure 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 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, or transportation 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? Terms you should know 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. 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. Every business needs clients and customers to buy its goods, products, or services. But the terms client or customer have a very businesslike, cold feeling about them that does not fit in well with the concept of guest service. Consequently, the hospitality and tourism industry has chosen to refer to those they provide goods, products, or services to as guests. Guest Concept What is the idea behind the guest concept? The idea is simple; the business and its employees should act as caring hosts to each and every guest. This will remove the cold, formal feeling from all business interactions and raise them to a higher level known as quality guest service, which should make the guest feel: Welcome Appreciated Valued Respected 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 Accommodations Description where you will welcome guests into their home away from home for the night. Food and Beverage where you are inviting guests to dine at your place. 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 International travel is one of the fastest-growing economic 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 be complicated. To make it easier to manage requires an understanding 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 person delivering services to guests the opportunity to balance the items the guest is seeking with what is actually available. Apples to Oranges Comparison Guests have their own expectations based on a number of diverse factors such as their: Terms you should know 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. 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 about spa 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 XSection X 4.1 Introduction XSection X 4.2 Follow the Experience: Stages of the Guest Experience XSection X 4.3 Operations and the Guest Experience XSection X 4.4 Guest Service GOLD XSection X 4.5 Guest Recovery XSection X 4.6 Guest Service Measurement (GSM) Competencies 1. Identify the reason for encouraging repeat guest business. 2. Identify the stages of the guest experience cycle and the activities associated with each stage. 3. Identify the purpose for providing seamless guest experiences. 4. Identify the components used in above-andbeyond 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. 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. 57

Section 4.1 Introduction Terms you should know Brand a particular product or company associated with a name, logo, or unique characteristic that serves to identify that particular product or company. For increased financial success, hospitality and tourism depend heavily on guest loyalty as a source of repeat business. The challenge has always been finding ways to develop the type of lasting relationship with 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 known as brand or guest loyalty. Today, the majority of businesses in the hospitality and tourism industry have some type of loyalty program that rewards guests when they do repeat business with that company or brand. The rewards can range from free airline miles to free nights in a hotel or exclusive dining offers. Regardless of the reward, the outcome 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 The guest cycle discussed in Chapter 3 is used to explain and train hospitality and tourism employees 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 businessrelated 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 Experience Cycle Idea Decide Participate Advocate Show interest Commit to idea Be engaged Form opinion (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 The phrase seamless guest experience is based on the simple idea of making certain that guests 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: 1 Be outstanding at your job. 2 Project a positive image and energy. 3 Provide above-andbeyond service. 4 Show respect and 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 Guest service is a key element in both hospitality and tourism. It is considered an essential soft skill 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-andbeyond 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 Real Intuition: Read the Need Empathy: Use Your Heart Champion: Be a Guest Hero Delight: Provide a Surprise Delivery: Follow Through Initiative: Make the 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 Terms you should know Advocacy the action of supporting a cause, situation, or need based on the facts and feelings of those involved. Guest loyalty cannot be bought; it has to be earned by eliminating any sources of dissatisfaction. This is particularly important during a guest complaint situation. The source of the issue must be quickly identified, investigated, and a solution suggested. This is known as providing guest recovery following a negative situation and is a very important part of guest advocacy. There can be three types of outcomes during a guest recovery situation: 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 complaints is the L.A.T.E. model. It is a four-step process for handling any challenging situation, whether it is with a guest or a coworker. The acronym stands for: Terms you should know 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) Hospitality and tourism businesses have long recognized the need to measure how successful they 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 followup 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 XSection X 5.1 Introduction XSection X 5.2 Follow the Dollar XSection X 5.3 Protect the Money XSection X 5.4 Guest Service and the Bottom Line XSection X 5.5 The Guest Cycle and Financial Opportunities Competencies 1. Identify the need for protecting the guest s right to privacy. 2. Identify the need to protect guests against identity theft and fraud. 3. Explain the financial transactions that occur during the guest cycle. 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. 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. 71

Section 5.1 Introduction Terms you should know Payment Cards group term used for credit, debit, and cash cards used for all types of financial transactions. 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. 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. One of the most intricate tasks hospitality and tourism employees have to do is communicate with guests about financial transactions. This requires the use of a specific set of financial processes designed to protect the guest s right to privacy. Guests must feel their personal financial information is safe and secure when having a financial transaction discussion with an employee. Since financial transactions will occur during every stage of the guest cycle, employees must learn the correct methods, processes, and procedures required to protect everyone involved. Protecting a guest s personal and private information is a necessary and sensitive part of anyone s job in hospitality and tourism. Consequently, learning how to responsibly complete job duties involving cash, credit cards, or checks will require the employee to learn the specialized processes and procedures used when completing a transaction. This is due to the issue of guest privacy as well as the legal implications involved when personal financial information is being discussed or processed. Both the employee and the company he or she represents can be held liable if the guest s right to privacy is not protected. This is especially true with any type of payment cards or other credit information. Also, to protect against payment card fraud and identity theft, there are some specific rules about how, what, and when payment card information can be discussed. This chapter will discuss the various financial processes and procedures and how they are used to protect guest privacy, and protect against theft and fraud. Guests should feel the property is working to protect their personal information. 72 Chapter 5 Financial Processes and the Guest Cycle

Section 5.2 Follow the Dollar A large part of what occurs during the guest cycle has to do with money. It may involve the use of a 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 guarantee hotel room nights Purchase attraction tickets Pay for meals, local transportation, or purchase souvenirs Settle bill for hotel room nights or buy a plane 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 Terms you should know Point of Sale (POS) the device or location where a sale or financial transaction occurs. 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. It has become necessary for those working in the hospitality and tourism industry to recognize the need to protect the flow of cash, payment card information, and guest privacy during the guest cycle. This protects 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 technology is involved such as a payment made over the Internet. Most financial transactions will take place in high-traffic, public areas where cash registers known as Point of Sale (POS) systems are located. It is also the most likely place for someone wishing to steal sensitive information for criminal use to attempt illegal access. Since it is hard to know who is watching and listening, employees must know the processes and procedures to follow when handling a guest transaction. This includes knowing: What general information is safe to ask for verbally What sensitive information is never to be asked verbally How to protect guest privacy How to protect guest sensitive information against 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 Terms you should know Bottom Line the last line of a financial statement that shows the net profit or loss of a company or organization. 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. 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. Guests do business with companies capable of protecting sensitive information during financial transactions. Having financial procedures in place helps to build guest confidence in the employees ability to protect private information. Any loss of confidence in this area impacts the company s profits and bottom line. Guest confidence is increased when employees directly involved in financial transactions show they are well-trained and able to appropriately handle cash, credit/ debit cards, and checks. Use of financial procedures = Guest peace of mind + Leads to guest loyalty Improved bottom line for company A company s bottom line depends heavily on employee job performance. Consequently, employees must have a sense of responsibility and a feeling of belonging to the company. This is known as emotional engagement on the job. But, how does an employee accomplish this? Employees who become emotionally invested in their jobs and company also have a stronger commitment to the guests they service. 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 T he guest experience must be a memorable one if the property wants to be a popular destination 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 XSection X 6.1 Introduction XSection X 6.2 Types of Communication XSection X 6.3 Communicating Effectively With Guests XSection X 6.4 Workplace Etiquette XSection X 6.5 Written and Electronic Communication Skills XSection X 6.6 Barriers to Effective Communication XSection X 6.7 Interdepartmental Communication Competencies 1. Identify the purpose of implementing effective communication systems. 2. Explain the role of tact and diplomacy in effective communication. 3. Identify the various forms of communication. 4. Explain the reasons for communicating clearly and effectively with guests. 5. Explain the effect of verbal and nonverbal communication on guests and co-workers. 6. Explain the importance of office etiquette to the hospitality and tourism industry. 7. Identify the rules of written and electronic 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. 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. 83

Section 6.1 Introduction Communication is essential to the hospitality and tourism industry. In some ways, it is the element 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 Terms you should know Jargon the vocabulary peculiar to a particular industry, profession, or work group. There are three methods of communication. They are written, verbal, and nonverbal. Written communication can take a variety of forms from a formal business letter to a brief e-mail. Verbal communication is the use of words, phrases, and sentences during a spoken conversation. Nonverbal communication involves things people say without words such as body language. Let s take a closer look at each form. Written communication: Use correct grammar, spelling, and punctuation Be brief and to the point Write for easy reading Provide accurate information and facts Use to keep a record of what is said and done Send to those who need to be involved Verbal communication: Know your audience (who are you speaking with) Listen first, speak second Ask questions for clarification Repeat the facts back to the other person Stay focused on the topic being discussed Be respectful and speak in a professional tone of voice Avoid slang or unfamiliar jargon Nonverbal communication: Speak without words Can change the meaning of the words spoken Never invade a person s personal space Use eye contact/ movements carefully (could be seen as disrespectful) Use touch carefully (could be seen as disrespectful) Use body language that always shows respect and value for everyone 86 Chapter 6 Communication

Section 6.3 Communicating Effectively With Guests Guest communication involves providing a variety of information including giving directions, 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 Learning and using the rules of good workplace etiquette is a must for anyone pursuing a career in 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

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Section 6.5 Written and Electronic Communication Skills M any businesses involved in the hospitality and tourism industry have job tasks that require employees to communicate using written and electronic methods. In some job positions, employees may be expected to use written and electronic communication skills to complete tasks such as: recording guest information, making reservations, answering requests, taking care of special needs, and noting other important details. Developing strong communication skills for use in written and electronic letters, notes, messages, and reports is essential for someone building a career in the industry. 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 related acronyms 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 Terms you should know Acronyms a word formed from a sequence of initials or groups of letters such as R.A.V.E. Chapter 6 Communication 91

Section 6.6 Barriers to Effective Communication Terms you should know Employee Morale the overall outlook, attitude, satisfaction, and confidence that employees feel at work. Barriers to effective communication cause the smooth flow of information passing from the sender to the receiver to be disrupted or stopped. When one person fails to communicate effectively with another person in a timely manner, the end result may be problematic. This is especially true of workplace communication. However, the solution is simple. Learn how to be an effective communicator both at work and at home. Why? Because problems resulting for poor communication with guests and coworkers will have a negative impact on the guest experience, employee 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 Most businesses involved in the hospitality and tourism industries have fairly complex structures. 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 notifies Maintenance of needed TV repair Front Desk receives guest complaint, TV not working Maintenance replaces TV with working unit and removes broken TV Maintenance notifies Front Desk and Housekeeping of action taken Housekeeping checks TV and determines it is broken Front Desk notifies Housekeeping to check on TV 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 XChapter X 7 Front Office Operations XChapter X 8 Executive Housekeeping Operations XChapter X 9 Facilities Management XChapter X 10 Food and Beverage Services XChapter X 11 Resorts Operations XChapter X 12 Operational Finance 98

Unit Overview The various segments of the hospitality and 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 XSection X 7.1 Introduction XSection X 7.2 Rooms Division XSection X 7.3 The Front Office Manager XSection X 7.4 Front Office Positions XSection X 7.5 The Front Desk Operation XSection X 7.6 Guests and the Front Desk XSection X 7.7 The Financial Reporting Cycle XSection X 7.8 Performance Standards XSection X 7.9 Room Rate Systems Competencies 1. Identify the responsibilities of the front office and the front desk along with the role each plays with guests. 2. Explain the structure of the rooms division and the two departments assigned to the division. 3. Identify the categories under which the front office manager s responsibilities fall. 4. Identify the job positions that report through the front office. 5. Identify the additional areas of responsibility typically performed by the front desk or front office employees. 6. Describe the key functions of the front desk operation and the nine steps of the registration cycle. 7. Identify the financial processes, and when each should occur, during the financial reporting cycle. 8. Explain the need for performance standards for front desk and front office employees. 9. Identify the types of room rate systems used 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. 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. 101

Section 7.1 Introduction The front office operation encompasses all the areas, functions, and activities used to support guest 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 Bath towels Bed linens Recycling Office paper and shredded sensitive documents Aluminum and plastic Reducing Using paperless processes in 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 Service Desk Agents Concierge Interdepartmental Information Cashier Communication Uniformed 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 Rooms Division The 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. 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 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. Housekeeping Executive Front Office Manager Sales and Marketing Director Sales Manager Marketing Manager Houseperson Staff Room Supervisor Laundry Staff Staff IT Manager Reservationist Front Desk Agent Uniformed Service 104 Chapter 7 Front Office Operations

Comparison of Property Organization by Size Limited Service General Manager Front Office Housekeeping Food & Beverage Building Maintenance Full-Service General Manager Revenue Manager Chief Engineer Food & Beverage Director Human Resources Director Security Director Controller Staff Staff Staff Bar Manager Executive Chef Dinning Room Manager Bartenders Chief Steward Chef Hosts Servers Steward Head Cook Dishwasher Cooks Buspersons Food Servers Night Auditors Head Cashier F&B Controller Purchasing Manager Manager of Info Sys Chapter 7 Front Office Operations 105

Section 7.3 The Front Office Manager Terms you should know 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. The front office manager is responsible for the smooth functioning of the front desk, bell services, concierge, and other front office operations. The four skills the front office manager must master are planning, organizing, leading, and evaluating all front office operational and financial areas. Each skill will make certain that every aspect of the front office operation is thought of, planned for, and accomplished by the manager. This will guarantee a seamless guest experience and a positive, organized work environment for employees. The front office manager s responsibilities fall into several categories: Guest service oversee the level of guest service to ensure employees meet and exceed guests expectations and other established service standards. Average Daily Rate (ADR) an occupancy ratio derived by dividing net rooms revenue by the number of rooms sold. Revenue Per Available Room (RevPAR) a revenue management statistic that measures the revenuegenerating capability of a hotel. Green Practices environmentally friendly and ecologically responsible decisions and processes that guarantee natural resources will continue to be readily available in the future. People management hire, train, and supervise front office employees to meet the property s performance standards, policies, and procedures. Leadership provide day-to-day guidance, supervision, and direction for all front office employees. Revenue management set financial goals through forecasting occupancy, average daily rate (ADR), revenue per available room (RevPAR), and other statistical formulas used to help keep the front office operation profitable. Green practices use environmentally friendly buildings, equipment, processes, and techniques that help reduce energy consumption, encourage recycling, reduce waste, save water, and prevent pollution. Disaster planning and management work with security, 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 The front office manager is responsible for hiring, training, and supervising a variety of entry-level 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, valet 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 five 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 The front desk acts as the heart of the hotel. It is the most frequently visited part of a hotel and is 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 Providing check-in services to guests Registering guests and confirming room rates Establishing a method of payment for the guestroom and bill settlement Assigning guestrooms and issuing key cards Informing guests about their room location and special hotel facilities, and answering questions about the property and the surrounding community Obtaining uniformed services for guests Acting as a cashier Providing concierge services security housekeeping Front Desk Guestrooms Engineering food & Beverage 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 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 During the reservation process, front desk employees must also: Determine guestroom availability, date of stay, and room rate Create the reservation record/guest folio Provide the guest with confirmation of reservation Explain the property s cancellation policy 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. 9 1 2 3 4 Processing Additional Guest Charges/Fees Preregistration Registration Record 8 Fulfill Special Requests Guest Registration Cycle Room and Rate Assignment 7 Issue Key Cards 6 Verify Guest s Identify Post Charges to Guest Folio Method of Payment 5 112 Chapter 7 Front Office Operations

Section 7.6 Guests and the Front Desk Never forget that to guests all hallways lead to the front desk, and it will be the first place they turn 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 During the guest cycle, a number of financial processes occur that are a primary responsibility of 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 (Reservations) Arrival (Registration) Occupancy Departure (Check-Out and Settlement) Assign room rate Establish guest folio Accept room guarantee/ deposit Secure guest s form of payment Confirm guest s financial transactions, such as: Room rate Other charges Guest credit limit Conduct night audit Post room and tax rate for all occupied guestrooms in Property Management 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 Settle guest s bill Post final or late charges Process guest s payment Post final payment to PMS Provide guest with receipt of final bill 114 Chapter 7 Front Office Operations

Section 7.8 Performance Standards The secret to an efficient operation is the use of performance standards. Performance standards 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 Exceeds Expectation 2 Meets Expectation 3 Fails to Meet Expectation 4 Did Not 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 How the decision is made on the type of room rate system to be adopted by a hotel depends on 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 five 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 XSection X 8.1 Introduction XSection X 8.2 The Executive Housekeeper XSection X 8.3 Guestroom Cleaning Basics XSection X 8.4 Housekeeping Positions XSection X 8.5 Inventory XSection X 8.6 Managing Inventories XSection X 8.7 Linen Inventory XSection X 8.8 Housekeeping Green Practices Competencies 1. Identify the functions and responsibilities of the executive housekeeper along with how to apply productivity and performance standards to housekeeping positions. 2. Identify the correct process for guestroom cleaning, room inspections, and reporting of maintenance issues. 3. Identify job positions reporting to the executive housekeeper. 4. Describe how to calculate, track, order, and issue recycled and non-recyclable inventory items to maintain par numbers. 5. Identify the formulas used to manage housekeeping inventories and the purpose of each. 6. Identify par levels and the role of the laundry 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. 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. 121

Section 8.1 Introduction Terms you should know 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. When a guest arrives at a hotel, he or she wants to be greeted by a clean, comfortable, and safe place to stay. The majority of these requirements are under the control of the executive housekeeper and the housekeeping staff. Each task performed by the executive housekeeping team is critical to the smooth daily operation of the property. Typically, the housekeeping department has the largest number of employees and is the most costly to operate. This is due to housekeeping s responsibility for keeping public spaces, front of house areas, meeting rooms, banquet rooms, and back of house areas clean, fresh, and attractive. This means guestroom attendants and public space cleaners require the 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 Terms you should know Assets hotel equipment, machinery, or computer systems that are considered both valuable and necessary for the smooth operation of the property. The executive housekeeper is responsible for the efficient operation of the housekeeping department by properly using available resources that include staff, money, time, work methods, materials, energy, and equipment. At larger, full-service hotels, the executive housekeeper will have a staff of supervisors who directly oversee the guestroom attendants and other line positions during daily operations. This will allow the executive housekeeper to focus on the department s overall performance. However, at small rooms-only properties, the executive housekeeper will be the only supervisor/manager in the department. 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 The guestroom is the main product a hotel 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 The types of housekeeping positions found at each hotel will depend on the size of the hotel, the 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 Terms you should know Par the number of each recycled inventory item that needs to be on hand to support daily, routine housekeeping operations. The executive housekeeper has to provide employees with the equipment, linens, amenities, and cleaning supplies to properly maintain guestrooms and other guest areas. This means he or she is responsible for maintaining the inventory of various items to guarantee an efficient housekeeping operation. Inventories must be kept at the correct level or amount needed to ensure an efficiently run housekeeping operation. This means executive housekeepers must make certain all inventories are kept at a par level. Par refers to the number of items that must be on hand to support daily, routine housekeeping operations. For example, 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 Item Potential Usage Per Occupied Room X Forecasted Number of Occupied Rooms = Par Stock Required Shampoo Bathfoam Small Soap 1.0 1.0 1.0 X X X 450 450 450 = = = 450 450 450 Actual Usage For One Month Item Potential Usage Per Room Occupied Rooms Potential Consumed Actual Consumed Variance Shampoo Bathfoam Small Soap 1.0 1.0 1.0 X X X 450 450 450 = = = 450 450 450 370 513 752 <80> 63 302 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 A variety of cleaning supplies is needed for the housekeeping department. Basic cleaning supplies include all-purpose cleaners, disinfectants, germicides, bowl cleaners, window cleaners, metal polishes, furniture polishes, and scrubbing pads. Cleaning Supplies and Guestroom Amenities Purchasing Cleaning supplies and guestroom amenities fall into the non-recyclable inventory group with par levels closely tied to how quickly these items are consumed. The minimum quantity for any given cleaning supply item is determined by how long it takes for a fresh supply to be ordered and received from an outside vendor. This is known as the lead time quantity. Hotels must maintain enough stock to prevent running out due 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. Formula for Safety Stock Product Daily Consumption Reorder X Lead Time = (in days) Safety Stock Level Terms you should know Vendor an outside company that provides goods or services to the hotel. 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. 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. Chapter 8 Executive Housekeeping Operations 135

Terms you should know Reorder Point the level of inventory when a reorder of inventory items must occur. Reorder Point Continuous monitoring of stock will ensure each item never falls below safety stock levels. Then, when current inventory levels are approaching the amount considered to be the safety stock level, and taking into consideration the amount of lead time required for reorders, the executive housekeeper will be able to determine when the reorder point (ROP) has been reached. Formula for Reorder Point Safety Stock Level Normal Consumption + = During Lead Time Reorder Point (ROP) 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 Lead Time for Reorder 6 weeks X 7 days a week = 42 days lead time Normal Consumption During Lead Time 250 per day consumption X 42 days lead time = 10,500 consumption during lead time Safety Stock 250 bars of soap needed per day X 42 days lead time = 10,500 bars of soap as safety stock Reorder Point (ROP) 10,500 safety stock + 10,500 normal consumptions during lead time = 21,000 bars of soap in inventory determines reorder point { 1 x 250 = 250 } { 6 x 7 = 42 } { 250 x 42 = 10,500 } { 250 x 42 = 10,500 } { 10,500 + 10,500 = 21,000 } 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 Item Par stock Reorder Point Requisition (same as Par) Cost of Item 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 One par of any linen type is not enough for an efficient operation. Linen supplies need to be able to 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 on the Bed Today clean linens from closet placed on beds today (one par) Dirty and Being Laundered Today yesterday s dirty linens which are being laundered today (second 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 to designated employees. All linens returning from the laundry need to rest in storage for at least 24 hours. This will increase the life of the linens 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 free of humidity, have adequate ventilation, and contain shelving that prevents damage from occurring to the fabrics. Linens are to be organized by linen type to cut down on the amount of time required to load the housekeeping carts and to make it easier to take a physical inventory. Terms you should know Floor Par the amount of each type of linen that is required to outfit all rooms serviced on a particular floor. 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 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 Pillow Case Top Sheet Fitted Sheet Bath Towel Bath Mat Face Cloth Chapter 8 Executive Housekeeping Operations 139

Section 8.8 Housekeeping Green Practices Terms you should know 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. 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. The hospitality and tourism industry was one of the first to see the positive effects of going green and developing sustainable green practices. Environmentally friendly policies contribute something known as the triple bottom line, which means green practices result in: 1. Economic Impact a. Energy savings (electricity and water) b. Waste reduction and lower disposal costs (trash) c. Labor cost reductions 2. Environmental Impact a. Conservation of natural resources b. Reduction of pollution c. Protection of wild places and wildlife 3. Social Impact a. Good stewardship of the natural world b. Environmental accountability c. Responsible cleaning practices 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 energy Saves energy Saves on water consumption Recycle 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 XSection X 9.1 Introduction XSection X 9.2 Facilities Management and the Chief Engineer XSection X 9.3 Maintaining Property Appeal XSection X 9.4 Preventive Maintenance XSection X 9.5 Routine and Emergency Maintenance XSection X 9.6 Emergency Preparedness Plan XSection X 9.7 Facilities Green Practices Competencies 1. Identify the role of the facilities management department at a hotel. 2. Identify the responsibilities of the facilities management department. 3. Identify the primary responsibilities of the chief engineer in overseeing the operation of the facilities management department. 4. Explain the importance of a well-maintained property for both the interior and exterior spaces. 5. Explain the purpose of facilities management regularly scheduling and performing preventive maintenance, routine inspections, and manufacturer-recommended maintenance on systems, equipment, and other high-cost items. 6. Identify the process for reporting, completing, and tracking repairs by the facilities management department. 7. Identify the role of year-round routine maintenance for grounds, landscaping, high-traffic guest areas, and snow 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 craftsmanstyle 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. 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. 145

Section 9.1 Introduction Terms you should know 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. The facilities management department plays a critical role in the hospitality and tourism industry by overseeing the proper maintenance and operation of all buildings, systems, and equipment in use. Facilities is also responsible for guaranteeing the property is visually appealing, meets all safety standards and requirements, and provides a comfortable place for guests to stay. Because facilities has a major impact on staff-only areas as well, it is key to assuring employees have an efficient, comfortable, safe work environment. Consequently, the facilities management department is considered the manufacturing plant for just about everything the property needs to function efficiently. The scope of responsibilities for facilities will depend on the size and organization of the property but typically will include: System building design System and building operations 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 M anaging facilities falls to a chief engineer or engineering manager depending on the size of the property. Many of the front of house and back of house areas facilities has to oversee are managed by another department. The chief engineer or engineering manager will have shared responsibility with each area s management team. This includes the front desk, housekeeping, laundry facility, and food and beverage areas. Terms you should know 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 entrylevel 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 Terms you should know Curb Appeal the visual attractiveness of a building as seen from the street. Curb appeal is often referred to as the silent salesperson for hotel properties in the hospitality and tourism industry. Why? Because it is the first part of a hotel a guest sees. Consequently, making a good first impression is important. Never forget that the hotel s exterior is what often draws guests attention to the property while the interior makes them want to spend time there. It falls to the facilities management department to make certain that 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 walkin 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, phone, cable systems) Windows and Doors 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 Terms you should know 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. Preventive maintenance occurs on an as-needed basis with the goal of keeping everything systems, equipment, and other high cost items in good working order. This is particularly important for equipment and systems in constant use such as: Heating, ventilation, and air-conditioning (HVAC) Laundry equipment and machinery Fire protection systems Swimming pool, hot tub, and other recreational equipment Kitchen equipment On arrival, guests expect to stay in a fully functioning hotel. The 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 filter. 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 specifications. Check all electrical components and connections. Run unit and check full operation. Record amp draw against manufacturer's specifications. 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 Initials Date Initials Air Conditioner Switches & Receptacles Windows/ Mirrors Bedding/ Drapery/ Closets Furniture Telephone Television Lamps Thermostat controls and fan (operation) Knob on thermostat (secure) Filter (clean or replace) Condensation water drain (clean and add Algaecide tablet) Grille (clean) Switches (check) Lamp sockets (tighten) Lamp shades (repair or note for replacement) Cord on hanging light pullswitch (check) Cover on hanging light (secure) Bulb (replace if necessary) Plugs (replace if necessary) Outlet wall plates (inspect, clean, secure) Switches (inspect, clean, secure) Switches and receptacles (replace missing screws) Receptacles (change if necessary) Audio (check radio channels) Video (check television channels) Knob (replace if necessary) Fine tuning (adjust if necessary) Antenna outlet (secure plate) Antennae connectors (check, repair if necessary) Remote control (check batteries) Security mount (check for secure wall mount) Replace message light cover (if necessary) Dialing instructions (replace if necessary) Defects (report any other defects to front desk) Drawer handles and knobs (check, replace if necessary) Drawer guides (lubricate if needed with WD-40) Stains (clean and touch up) Chair legs (check) Table tops (check, repair small defects) Headboards (check and secure) Casters or legs (check and secure) Chair bumpers (check, replace if missing) Springs on chairs (check) Night stands (check and secure) Coat racks (check and secure) Window guides (lubricate with WD-40) Mirror hangers (check and secure) Window hardware (check and secure) Bedframe (check and secure) Inspect and secure all drapery tracks, rollers and pull cords Hangers (replace if rusty or missing) Doors General Bathroom Handles (check and secure) Lock cylinder set screw (check) Hinges and hinge pins (oil with WD-40 and secure) Door chain and viewer (check, repair if necessary) Lock striker plates (check and secure) Night latch (check) Door frame rubber bumpers (check, replace if needed) Door stops (check and replace if necessary) Toilet flush valve (check) Toilet cover bumpers (check) Seat hinges (check and secure) Toilet seal (check for evidence of leaks) Bath drain plug and pop-up (check) Mixing valve (secure handle) Mixing valve washers (replace if necessary) Hot and cold faucets (check/replace `H' and `C' buttons) Escutcheon plates (secure) Shower curtain hooks (check and replace if needed) P trap under basin (check) Drain pop-up (check) Faucet strainer (clean or replace) Basin bowl hangers (reglue or resecure) Toilet paper holder (check) Clothes hanger on bathroom wall (check and secure) Floor and wall tile (grout tile and caulk around tub if needed) Soap dish and grab bar (check and secure) Towel rack (check and secure) Lavatory counter (check and refasten) Non-slip pads in tub (check condition) Exhaust grill (clean) Tissue holder (check and replace) Baseboards (check and replace/reglue as needed) Carpet (check) Vinyl (check, reglue if necessary) Pictures (check) Ceiling (check for cracks and/or peeling paint) Paint (check paint on walls and door casings) Rate card (confirm on door) Fire exit plan (confirm on door) Check for air leaks under A/C units Cracks in sidewalks 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 Routine maintenance deals with the general upkeep that is required on a routine, scheduled basis 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 The facilities management department and the chief engineer are key players in a hotel s emergency planning process. This is because the buildings, as structures meant to house and protect people, fall under the department s direct control. The goal of emergency planning is to ensure guest and employee safety, security, and comfort during a wide variety of emergency situations. In certain emergencies such as a hurricane or toxic chemical spill, guests and employees may need to shelter in place or be evacuated to a safer location. Having a plan in place that contains specific responsibilities and duties for each employee to carry out during the emergency is essential to the property meeting its goals of safety, security, and comfort. Emergency planning must include procedures for the following: Natural disasters Floods Earthquakes Wildfires Severe weather Hurricanes Tornadoes Blizzards and whiteout conditions Power outages Terrorism Terms you should know 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. 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 The facilities management department is responsible for driving most 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 XXSection 10.2 Types of Food and Beverage Operations XXSection 10.3 Food and Beverage Guest Cycle XXSection 10.4 Food and Beverage Financial Cycle XXSection 10.5 Restaurants and the ADA XXSection 10.6 Food Safety and Sanitation XXSection 10.7 Restaurant Operations XXSection 10.8 Kitchen Operations XXSection 10.9 Responsible Beverage Operations XXSection 10.10 Banquets, Catering, and Event Planning XXSection 10.11 Food and Beverage Green Practices Competencies 1. Identify the restaurant industry s position as a major source of jobs in the U.S. 2. Identify the purpose for type of service, menu options, and cost in each of the five main categories of food service outlets. 3. Explain the guest and employee segments of the food and beverage guest cycle. 4. Explain the need for implementing, and consistently using, financial controls for labor costs, food costs, menu pricing, and cash control in a food and beverage operation. 5. Identify the purpose of safety and sanitation in food service operations and the need for a written Sanitation Risk Management (SRM) program such as HACCP. 6. Identify the four main styles of table service and the purpose of each. 7. Explain the goal of providing excellent food to food service operations. 8. Identify the need for responsible beverage operations, the role of a dram law, and liabilities, legalities, and responsibilities servers, bartenders, restaurants, bars, lounges, and other beverage service providers face when serving alcohol. 9. Explain the role of banquets, catering, and special events in food and beverage operations. 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. 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. 163

Section 10.1 Introduction It is estimated that more than 13 million people in the United States work in the restaurant industry. 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. 1 National 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 Today s guests have an enormous number of dining options to choose from. Dining decisions are 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

Terms you should know Rooms-Only Hotel an economy hotel property that has only guestrooms to offer guests; no dining or recreation options are available on site. Hotel Dining Options Depending on the size of the hotel, the dining options can include all or none of the five main restaurant categories. For example, a roomsonly 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 a poolside snack bar to a gourmet fine-dining restaurant featuring a celebrity chef. 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 The guest cycle for food and beverage operations typically involves two sets of sequential actions 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 How profitable a food and beverage operation will be depends on controlling four key items: labor 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 to ensure the price of each menu item covers the cost of food and labor 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 for guest consumption. Once the cost is determined, it is important for the restaurant to maintain the cost at that specific dollar amount to keep food and labor costs from reducing profits. Formula for Food Costs Standard Recipe Cost (SRC) + Labor Cost (LC) = Food Cost (FC) For example: food cost to produce one slice of apple pie $0.38 (SRC) + $0.33 (LC) = $0.71 (FC) Terms you should know 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. Price Point the price a product is sold for on the retail market. 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) Profit 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 Like hotels, food service facilities must comply with the Americans with Disabilities Act (ADA) by 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

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Section 10.6 Food Safety and Sanitation Terms you should know Control Point requirements attached to specific points in the food service process to prevent unsafe and unsanitary conditions or situations from occurring. Food service facilities must pay close attention to food safety and sanitation issues to prevent foodborne illnesses or emergencies from 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 with those regulations. Why? Because it is the only way to make sure the dining public is safe from illnesses such as salmonella, the most common form of food poisoning. Plus, foodborne illnesses are bad for business. No one wants to eat at a restaurant he or she believes to be unsafe or unsanitary. Training employees to follow all food safety and sanitation 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 Process Step CCP Chemical/ Physical/ Biological Hazards Critical Limit Monitoring Procedures/ Frequency/ Person(s) Responsible Corrective Action(s)/ Person(s) Responsible HACCP Records Verification Procedures/ Frequency/ Person(s) Responsible Chapter 10 Food and Beverage Services 173

Section 10.7 Restaurant Operations T here are many variations in the procedures and techniques food service operations use to serve 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 Excellent food is the goal for all successful food service 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. Proper equipment and tools will ensure food is cooked using the correct procedure, as well as provide storage for hot and cold food waiting to be served. Timing in kitchen operations is critical. 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. That will require planned coordination by the kitchen staff. Safety Planning Staffing Timing Procedure Chapter 10 Food and Beverage Services 177

Section 10.9 Responsible Beverage Operations Terms you should know 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. The careful service of alcoholic beverages is an important responsibility for employees involved in restaurant, bar, and lounge facilities. In some states where dram shop laws are in place, servers, bartenders, and owners can be held liable if an intoxicated guest causes injury to another person. Therefore, anyone involved in serving alcoholic beverages must do so responsibly. Typically, guests understand that alcohol-service rules are not simply house rules, but based in law. However, once a person begins to consume alcohol, his or her ability to make decisions is one of the first things to be impaired. So, laws surrounding the sale and consumption of alcohol place a heavy responsibility on the restaurant, bar, or lounge operation and the servers working there. 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. It is the best way to ensure employees know who can legally be served, how to prevent underage drinking, and stop intoxicated guests from causing harm to others. Anyone appearing to be underage must be asked to present a valid form of identification and determined to be legally of age to drink before being served any type of alcohol. Alcohol service training also teaches employees their responsibility for staying up-todate on all current alcohol-related laws and ordinances. Terms you should know Ordinances codes created to clearly define how specific regulations or laws will be 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 Terms you should know Audio-Visual materials using sight or sound to present information such as DVDs, PowerPoint presentations, or speakerrequested microphone sound systems. Initially found in hotels and restaurants, one area of food and beverage operations that has become very profitable is the banquet, catering, and event planning group. Today, hotel and resort food service providers are developing desirable locations such as museums, zoos, and other local attractions into venues for all types of banquets and catered special events. This is done by creating partnerships that allow for revenue and marketing to be shared by the organizations involved. It also allows event planners to choose from a variety of unique and entertaining dining experiences. How does a planner decide which type of service is required? By determining the purpose of each event, such as: 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 36-inch table seats four people 42-inch table seats five people 48-inch table seats five people 54-inch table seats six people 60-inch table seats eight people Rectangular Table Seating Capacities 24-inch x 60-inch table seats two people 24-inch x 72-inch table seats three people 24-inch x 96-inch table seats four to five people 30-inch x 72-inch table seats six 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 Food service operations can readily go green by making sure they are 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

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 XXSection 11.4 Recreational Vehicles and Tent Camping XXSection 11.5 Off-Site Partners Competencies 1. Identify the purpose of resorts, cruise lines, recreational vehicles, and tent camping in the hospitality and tourism industry. 2. Identify the types of resorts and the target guest markets attracted to each type. 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. 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. 187

Section 11.1 Introduction Resorts, cruise lines, camp grounds, and recreational vehicle sites tend to be in locations where the 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 Early resorts were built as summer retreats that allowed guests to escape the heat of the city. Most were near water or in mountainous areas for the cooler climates they offered. Entertainment and fine dining were, and still are, significant parts of resort operations, and are often 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 menu of activities and experiences that will attract a wide variety of guests to the property. Recently, business travelers have become a major market for resort hotels. This has resulted in resorts expanding their efforts into attracting the group market and meeting market. This is done by creating spouse and family activity options so the group can enjoy a working vacation as well as offering the typical banquet, meeting, and special event venues. Types of Resorts Many resorts offer a specialized experience such as: Spa Resorts Water has historically been a large part of the spa experience. Even 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 Terms you should know 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. Meeting Market business a hotel receives from an outside organization, business, or association wishing to book meeting/convention/ conference room services. Chapter 11 Resort Operations 189

Terms you should know All-Inclusive a resort where the cost of all lodging, meals, airport transfers, spa services, and activities are bundled into a package price. Pineapple Fun Fact The resort with the largest number of rooms in the world is Genting Highlands Resort in Malaysia. It has 6,118 rooms. To keep guests entertained, there are more than 80 shops, 90 restaurants, one cinema, a casino, a 50- room karaoke bar as well as two theme parks. Ski Resorts The modern Olympics drew attention to what was traditionally a European winter sport. By the 1960s, resorts located in mountainous areas around the world (traditionally closed for the winter) started developing 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, tips, entertainment, and more). 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 to their room using this card. Employees process the card like a payment card into the POS system. The POS will then report the guest activity to the PMS for posting to the guest s folio each day. If a guest dines or uses a service outside what the package covers, a charge will be posted to the guest folio for settlement at departure 190 Chapter 11 Resort Operations

Section 11.3 Cruise Lines Cruise ships are floating resorts that have gained in popularity over the past 40 years. Cruises appeal 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 Exploring the great outdoors on state lands, national parks, nature preserves, and other wild places 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 One element that guests look for when selecting a type of resort, cruise ship itinerary, RV, or tent 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 XSection X 12.1 Introduction XSection X 12.2 Revenue Centers vs. Cost Centers XSection X 12.3 Introduction to Night Audit XSection X 12.4 Night Audit Calculations XSection X 12.5 Yield Statistic XSection X 12.6 Financial Impact of Green Practices Competencies 1. Identify the financial goal of a hotel or lodging property. 2. Identify the key difference between a revenue center and a cost center along with the areas belonging to each. 3. Identify the steps required to complete a night audit and the role of the night auditor 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-forprofit 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. 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. 201

Section 12.1 Introduction Terms you should know Rack Rate the term which represents the highest possible rate a guest may be charged for a room. Night Audit the nightly process that checks, corrects, and balances all accounts for registered hotel guests. The scope of operational finance in the hospitality and tourism industry will vary according to the specific type of business involved. The financial goal of any hotel is to make a profit, and it takes the efforts of all employees to make that happen. Because each segment of the industry has its own way of processing operational finances, this chapter will focus on the methods used by hotels. The rooms division is responsible for producing revenue from the sale of guestrooms. The front office must oversee the monitoring and measuring of how successful the division is at generating a profit. Hotels must sell rooms at the most profitable room rate possible and measure daily how well the employees are selling those rooms at or near full rack rate. The front office employees who book guestrooms will be asked for discounted room rates and must know when and how to apply those lower 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

Section 12.2 Revenue Centers vs. Cost Centers Not all areas or departments in a hotel generate revenue. Some departments are considered revenue 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 Terms you should know Guest Folio account balanced daily by the night auditor and used to report each guest s financial transactions. Guest Ledger collection of all guest folio accounts for registered guests completed by the night auditor and used to measure a hotel s profitability. 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. As the key revenue center, the front office is responsible for generating the largest portion of a hotel s profits. In order to maintain revenue at the highest level possible, the night audit process monitors, posts, and calculates the day s financial activity. Traditionally, guests do more than sleep when staying in a hotel. They will also eat, shop, and have fun. In order to make the guest experience as seamless as possible, most properties allow guests to charge the expense of food, merchandise, and recreation back to their room. This means they add those costs and expenses to their guest folio during each day 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 credit). This ensures each transaction is recorded and the guest account balanced. It is the most accurate way to guarantee the guest bill is correct and ready for settlement when the guest departs. Once all the guest folios have been updated, the auditor must begin posting those totals to the guest ledger. The purpose of the guest ledger is to collect all charges into one document for reporting to the accounts receivable section of the accounting department. The guest ledger totals will indicate if the hotel was operating at a profit or loss for the day. An effective audit increases the probability of accurate account settlement. As the name implies, night audits are conducted late at night during the time the hotel experiences the lowest guest demand for services. Typically, hotels are busiest during the day and evenings. This makes night time the perfect time to perform the close-of-business activities covered by the night audit and to reopen accounts for the next day of business. 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

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. Step-by-Step Guide to Night Audit Step 1: Update guest folio: Post the day s room rate. Calculate and post sales tax. Post the day s financial transactions such as: Restaurant charges In-room dining Merchandise purchases Bar charges Recreation charges Phone calls (charged to guestroom on hotel phone system) Laundry-valet charges Other costs Guest Folio Guest Name: John D. Smith Account No. 004351 Room: 317 Rate: 109 Arrival Date: 3/15 Date 3/15 3/16 3/17 3/18 Balance Forward Room Sales Tax Restaurant 109 00 7 64 56 31 186 94 109 00 7 64 337 36 109 00 7 64 98 77 627 In-Room Dining Merchandise Bar Recreation Local Long Distance Telegrams Laundry - Valet Cash Disburse Total Less: Cash Carried Fwd. 14 00 186 94 186 94 21 44 12 35 14 00 337 36 75 00 627 76 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 Room Sales Tax Restaurant 109 00 7 64 56 31 186 94 109 00 7 64 337 36 109 00 7 64 98 77 627 76 In-Room Dining Merchandise Bar Recreation 21 44 12 35 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 Posting of charges in guest folio for each business day. Sales Tax Restaurant In-Room Dining Merchandise Bar Recreation Local Long Distance Telegrams 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 final 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. Tracks all guest transactions for one business day. Guest Ledger Template Hotel Name: Date: Guest folio previous day s balance for each guest. Guest folio charges are posted in each department s column and totaled. Room No. No. Guests Name Balance Carried Forward Room Rate Sales Tax Restaurant Bar In-Room Dining Telephone Long Local Dist. 317 Smith, John 186.94 109.00 7.63 238 Davis, Chris 614.07 169.00 11.83 237 Jones, Mary 172.94 109.00 7.63 House Total 973.95 387.00 27.09 City Ledger <Advance Deposit> Accounts Receivable Total 387.00 27.09 208 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. Cash amounts paid by guest in order to reduce amount carried over on final bill. Total of balance carried forward, room rate, sales tax, and other posted charges in left hand boxes. Laundry Recreation Merchandise Refunds credited to guest folio or advance deposit amount credited to the guest folio. Total Charges Cash Transfers Allowances Balance Carried Forward Balance to be carried over to guest ledger for opening of next business day (amount should match balance carried over for next day on guest folio as well). Amount used to 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. Chapter 12 Operational Finance 209

Terms you should know City Ledger Control Folio the amount posted as the balance due from all individual guests, groups, and companies, also known as the City Ledger. <Advance Deposit Control Account> the amount posted for all advance deposits or prepayments received from guests for that date, also known as the Advance Deposit. Step 5: Calculate the Accounts Receivable total: Enter the City Ledger Control Folio balance in the designated box. Enter the <Advance Deposit Control Account> in both the Balance Carried Forward column and the Total Charges column (as indicated by <> brackets). Subtract the <Advance Deposit Control Amount> from the City Ledger Control Folio balance. Add the amount remaining in the City Ledger Control Folio to the House Total. Post the total in the Accounts Receivable Total column. Sample Calculation of Accounts Receivable Total City Ledger Control Folio balance is entered in the row labeled City Ledger. 109.00 169.00 109.00 7.63 11.83 7.63 <Advance Deposit Control Account> amount is entered in the row labeled Advance Deposit. House Total 973.95 387.00 27.09 City Ledger 25,000.00 <Advance Deposit> <2,136.00> Accounts Receivable Total 23,837.95 387.00 27.09 How to calculate Accounts Receivable total: City Ledger 25,000.00 Advance Deposit <2,136.00> 22,864.00 Balance + House Total 973.95 <000.00> The brackets on each side of the numbers indicate subtraction needs to occur. 23,837.95 Accounts Receivable Total 210 Chapter 12 Operational Finance

Section 12.4 Night Audit Calculations Once the night auditor has updated each guest folio and posted guest charges to the guest ledger, 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 Sample OP calculation: 200 Rooms Occupied 350 Rooms Available = 0.571 x 100 = 57% OP 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 Sample ADR calculation: $50,000 Revenue 200 rooms sold = $250.00 ADR Revenue per Available Room (RevPAR) Measures financial 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 Front office staff are expected to sell rooms at the full rack rate unless the guest qualifies for an 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 Potential Rooms Revenue X 100 = Yield Statistic 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

Section 12.6 Financial Impact of Green Practices Hotels have large heating and cooling systems, use huge amounts of paper products, provide guests with amenities that are barely used, and consume vast amounts of fresh water. Each costs the hotel a lot of money which reduces profits. However, hotels have found that by going green using available resources in an environmentally friendly fashion they can reduce the property s carbon footprint and operating costs. By using low-use water devices such as low-flush toilets, water costs are reduced; lowering guestroom thermostat temperatures saves on energy consumption; and giving leftover items such as food, guest soap, and shampoo to local agencies in need gives the items new life and gains a charitable donation tax deduction for the property. Reusing products, recycling plastic or aluminum, and reducing waste is a win-win for both the environment and hotel operating costs. Cost Effective Green Practices Front Office use recycled paper products for guest copy of bill settlement, use paperless office systems, and use key cards made from recycled materials. Terms you should know Carbon Footprint the measurement of the amount of greenhouse gases produced through the use of fossil fuels for electricity, heating, cooling, and transportation. Gray Water wastewater created by activities such as doing laundry, dishwashing, and bathing, which can be recycled on site in a landscape irrigation system. 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 manager and 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 XChapter X 13 Marketing XChapter X 14 Sales 216

Unit Overview Sales and marketing are the key elements in taking 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 XSection X 13.1 Introduction XSection X 13.2 Operational Role of Marketing XSection X 13.3 Basic Four Ps of Marketing XSection X 13.4 Lodging Market Segmentation XSection X 13.5 Tools of Marketing XSection X 13.6 Marketing Messages XSection X 13.7 Marketing Ethics: Honesty in Advertising XSection X 13.8 Green Practices Competencies 1. Identify the marketing activities used in the hospitality and tourism industry; know the difference between marketing and advertising. 2. Identify the role of marketing in the hospitality and tourism industry and the purpose of measuring return on investment (ROI) for all marketing efforts. 3. Identify the four Ps of marketing and the role of each in the development of a marketing plan. 4. Identify the purpose of analyzing market segments when deciding which target market to focus on when build a marketing plan, strategy, and message. 5. Explain the use of demographics and psychographics in researching and positioning products for specific market segments or target markets. 6. Identify the purpose of communicating marketing messages to guests. 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. 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. 219

Section 13.1 Introduction Marketing involves a variety of efforts by hospitality and tourism 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 The marketing department is responsible for managing the business of marketing for the hotel, 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: Who are the potential guests for this product or service? What do potential guests want or need? How can those needs be met? What are potential guests willing to pay? What would be an attractive price for this specific product or service? Who are the competitors, and what are their strengths and weaknesses? What product or service is the competition unable to provide and how can that be emphasized to guests? Terms you should know 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. 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: ROI= (Gain for Investment Cost of Investment) Cost of Investment Chapter 13 Marketing 223

Section 13.3 Basic Four Ps of Marketing Terms you should know 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. Strategy is the key to successful marketing because it helps to determine the best way to bring in guest business. The basic four Ps are used to create the right marketing plan that can attract guests from within the group of customers most likely to use or purchase the product or service. This involves careful planning and thought since one element has influence over the other choices. This is known as creating a marketing mix the right product at the right price, offered in the right place and promoted in the right way that is subject to change and must be monitored and modified as needed. Once the basic plan is in place, the remaining Ps of marketing (which will be covered in year 2 of this program) come into use to refine and add detail to the goals. Product Price Marketing Strategy Place Promotion 224 Chapter 13 Marketing 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?

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 Terms you should know 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. Target Market the market segment for which a property is best suited such as a beachfront property marketing a special promotion to attract families on vacation. All hospitality and tourism industry businesses will analyze the various guest markets or market segmentations to determine the group most likely to be attracted to the hotel, restaurant, attraction, or transportation business. The reason behind this marketing practice is to target a variety of consumer groups with different behaviors to determine each group s needs and budgets. Individuals within each group will have shared characteristics and needs that, once identified, allow the hotel to determine the purpose of the stay. The most common reasons are either business or leisure. Once this informations is known, a marketing or promotional offer can be developed to sell a product or service to the segment. By knowing how different market segments may respond to specific marketing efforts, the marketing team can ensure marketing dollars are spent effectively. Target Markets One important decision the marketing team must make early on concerns the guests, or target market, they wish to attract to the hotel, restaurant, attraction, or transportation business. Selecting the right target market is critical since it will influence other major decisions during the creation of the marketing plan. 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 psychographics to answer the questions of: Who are the guests in each market segment? What are the needs or preferences of each market segment? What services does each market segment want from a business like mine? What communication tools can effectively reach each market segment? Based on the answer to my questions, which market segment is the best match to what my business has to offer? Positioning the Product Once a target market segment has been identified, hospitality and tourism businesses can: Focus on marketing the right product at the right price to the right group of guests Terms you should know 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. 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. 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 To guarantee each marketing dollar is well spent, the marketing department has to decide on the type 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 The main objective of a marketing message is to create a positive, 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 An important consideration in marketing is to follow the rules of marketing ethics by always using 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 Conserving resources and limiting waste are important parts of 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 office waste 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 XSection X 14.1 Introduction XSection X 14.2 Role of the Sales Department XSection X 14.3 Structure of the Sales Department XSection X 14.4 Prospecting XSection X 14.5 Types of Sales Competencies 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, relationshipbuilding, 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. 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. 237

Section 14.1 Introduction The sales department is responsible for selling all aspects of a hospitality 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 The main objective of the sales department is to increase the business s bottom line, while the primary 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 The sales department will vary according to the type of hospitality and tourism products, goods, or 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 Convention Sales Director of Sales Sales Manager Sales 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 Terms you should know 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. When asked what is the most challenging part of the job, a sales professional will usually answer in one word prospecting. Prospecting requires the salesperson to continuously be on the lookout for new clients. This is especially true of hospitality and tourism sales staff since selling guestrooms, meals, admission, and transportation is an ongoing process. Internet Prospecting Tools Another big change has been in the approach to sales. Where once the cold call was the sales professional s prospecting tool of choice, it has been replaced by more effective Internet-based methods capable of quickly 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 winwin 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 The purpose of any sales tactic, method, or tool is to exchange products, goods, or services with a 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

Safety and Unit 5 Security XChapter X 15 Operational Safety XChapter X 16 Security 248

Unit Overview The hospitality and tourism industry has 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 XSection X 15.1 Introduction XSection X 15.2 Occupational Safety XSection X 15.3 Risk Management XSection X 15.4 Occupational Safety and Health Administration (OSHA) XSection X 15.5 Operational Safety Competencies 1. Identify the purpose of maintaining a safe, healthy environment for guests and employees. 2. Identify the role of occupational safety and the purpose of a job safety analysis report in providing safe work conditions to employees. 3. Explain the risk management process and the 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. 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. 251

Section 15.1 Introduction Safety affects the health and well-being of guests and employees and does have a direct impact on the 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 Safety is everyone s responsibility and prevention is the main goal of occupational safety. Managers and employees must work together to keep both front-of-house and back-ofhouse 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 Risk management is the process of assessing existing risks, taking action to minimize or prevent the 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 selfassessments, 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. SafetySmart is proud to introduce an all new line of safety awareness products based on The Simpsons. is an EI Partner 256 Chapter 15 Operational Safety

Section 15.4 Occupational Safety and Health Administration (OSHA) The Occupational Safety and Health Administration is a Federal agency created in 1970 to make certain that the safety and health concerns of American workers are being met. OSHA is tasked with providing training and educational programs to small businesses and corporations for the 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 hospitality and tourism industry. Why? Because failure to be in compliance with OSHA s standards can result in a costly fine and/or closure of the business, either permanently or until the violation has been corrected. Here is how OSHA describes itself: With the Occupational Safety and Health Act of 1970, Congress created 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. Terms you should know 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. President of the United States Department of Agriculture Department of Commerce Department of Defense Department of Education Department of Energy Department of Health & Human Services Department of Homeland Security Department of Housing & Urban Development Department of Interior Department of Justice Department of Labor Department of State Department of Transportation Department of Veterans Affairs Administrator Assistant Secretary of Labor for Occupational Safety and Health Chapter 15 Operational Safety 257

Terms you should know 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. Hazardous Materials Communication One area in which OSHA has a large impact on hospitality and tourism 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 hazard to an employee. For hospitality operations, this typically includes cleaning agents, degreasers, flammables, greases, paints, pesticides, 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 quantities. It is because businesses buy hazardous chemicals in very large amounts and use them frequently that led to the need to regulate the use, distribution, storage, and disposal of these chemicals by means of federally mandated standards. This led to the creation of the Hazardous Materials 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. 258 Chapter 15 Operational Safety 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

Section 15.5 Operational Safety Operational safety policies and procedures are a necessary part of hospitality and tourism 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 vehicle 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. Identification and 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 XSection X 16.1 Introduction XSection X 16.2 Hotel Security XSection X 16.3 In-House Security XSection X 16.4 Key Control XSection X 16.5 Operational Emergencies XSection X 16.6 Emergency Preparedness Competencies 1. Explain the role of security in protecting people and property during criminal, severe weather, and emergency situations. 2. Identify the security functions of providing reasonable care under the innkeepers laws requiring hotels to provide travelers with a safe haven at night. 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. 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. 267

Section 16.1 Introduction Terms you should know 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. Security in the hospitality and tourism industry must be capable of protecting guests, employees, and the physical assets of the property from criminal activities, severe weather, and emergency situations. This 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 theft.. Today, hotel security needs to be capable of dealing with anything from housing guests during a hurricane, to preventing meth lab activities, to monitoring for human trafficking. Following the events of September 11, 2001, security took on the stronger role of guarding against acts of violence and terrorism to ensure guests and employees a secure place to stay and work. It is not the role of hotel security to replace law enforcement but to act as a watchdog for guests, employees, and property security by building a good relationship with the local authorities. Communication is a key element in security. Hotel security staff must communicate effectively 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 Security functions somewhat differently in a hotel than it does for other types of businesses involved in the hospitality and tourism industry. This is because guests are taking up temporary residence at the property and have the right to feel protected against harm. Consequently, hotels have the added responsibility of exercising reasonable care when providing guests with a safe and secure place to stay. This duty of reasonable care mandates vigilance in protecting guests from foreseeable risks. The obligation to protect guests is not met merely by warning them, but must be combined with a security program meant to maintain a secure property. The Reasonable Care Standard used by most hotels states: Hotels have a general duty to exercise reasonable care for the safety and security of their guests. Hotels have a general duty to reasonably protect guests from harm caused by other guests, employees, or non-guests. Hotels have an affirmative duty to make the premises reasonably safe for their guests. This obligation includes a two-fold duty to either correct a hazard or warn of its existence. Innkeepers Laws The innkeepers laws date back to the days of horse and carriage travel and are based on common law. These laws began as a way to provide travelers with a safe haven at night and, to this day, each state has its own statutes and court rulings which hotels are expected to know and follow. Specifically, innkeepers laws include statutes about the type of security program hotel security personnel must have in place. Some of the areas covered by innkeepers laws are: Locking systems, key control, and access control On-premises security personnel Lighting and door viewports Police/local law enforcement liaisons Terms you should know Reasonable Care the degree of care that a cautious person would use under like circumstances. 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. 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. Chapter 16 Security 269

Section 16.3 In-House Security Most hotels use either in-house security staff or an outside private security firm to provide onpremises 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 d. Restaurant entrances e. Elevators f. Guest hallways g. Pool/gym/recreation entrances 270 Chapter 16 Security Pineapple Fun Fact On July 2, 1777, the Vermont Constitution was adopted at Elijah West s Tavern in the township of Windsor. It was the first in the new world to outlaw slavery and to require a free education for all citizens, male and female. Today, the property is a Vermont State Historic Site known as The Old Constitution House.

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 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 intruders, use of guestrooms for illegal activities, presence of weapons, and the planning of possible acts of terrorism. While cleaning guestrooms and public spaces, housekeeping should check items such as locks, deadbolts, window latches, and other security devices to make sure they are in good working order. For example, to protect both guests and the property against a potential crime: A housekeeping attendant should report any problem such as a non-locking guestroom door to maintenance for repairs. A maintenance engineer should then notify the front desk that the room door is being repaired. A front desk representative should remove the room from active inventory to prevent it being assigned to a guest. AMERICAN HOTEL & LODGING ASSOCIATION GUEST SAFETY TIPS 1 2 3 4 5 6 7 8 9 10 Don't answer the door in a hotel or motel room without verifying who it is. If a person claims to be an employee, call the front desk and ask if someone from their staff is supposed to have access to your room and for what purpose. Keep your room key with you at all times and don't needlessly display it in public. Should you misplace it, please notify the front desk immediately. Close the door securely whenever you are in your room and use all of the locking devices provided. Check to see that any sliding glass doors or windows and any connecting room doors are locked. Don t invite strangers to your room. Do not draw attention to yourself by displaying large amounts of cash or expensive jewelry. Place all valuables in the hotel or motel's safe deposit box. When returning to your hotel or motel late in the 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 that may be used in the event of an emergency. If you see any suspicious activity, notify the hotel operator or a staff member. Copyright 2003 The American Hotel & Lodging Association 1201 New York Avenue, NW, #600 Washington, DC 20005-3931 www.ahla.com COM001727 Chapter 16 Security 271

Section 16.4 Key Control A key control system is essential to preventing unauthorized 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 doublelock 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 The security team must be prepared to handle a variety of common operational situations that can 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 The security team at a hotel must be prepared to handle a wide variety of sensitive and potentially 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

Threat Description Improvised Explosive Device (IED) Bomb Threat Stand-Off Distances Explosives Capacity (TNT Equivalent) Building Evacuation Distance Outdoor Evacuation 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/ Delivery Truck 4,000 LBS 640 FT 3800 FT Moving Van/ Water Truck 10,000 LBS 860 FT 5100 FT 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 <Advance Deposit Control Account> 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 lifetimelearned 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 revenuegenerating 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 T 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 Tangible Services services that provide for guest expectations using the physical assets of the property. p. 13 Target Market the market segment for which a property is best suited such as a beachfront property marketing a special promotion to attract families on vacation. p. 226 Tourism tourist travel and the services connected with it, regarded as an industry combined with hospitality. p. 6 A B C D E F G H I J V Vendor an outside company that provides goods or services to the hotel. p. 135 L M N O P Q R S T V 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 Account Balances, 114 <Advance Deposit Control Account>, 210 Accounts Receivable, 210 Acronyms, 91 Active Shooter, 276 Advance Deposit, 111 Advertising, 22, 49, 227 228, 232, 243 Advocacy, 64, 66 Airport Hotels, 16 All-Inclusive Resort, 117, 190 All-Suite Hotels, 16 Amenities, 16 17, 78, 104, 122, 127, 132 133, 135, 137, 159, 188, 192, 213, 245 American Plan, 117 Americans with Disabilities, 61, 113, 148, 170, 255 Anti-Terrorism, 276 Assets, 124 Audio-Visual, 180 Audit, 102 Automated Inventory Control System, 134 Average Daily Rate (ADR), 106, 205 B Back of House, 122, 147, 270 Banquets, 17, 180 Bed and Breakfast, 17 Bottom Line, 76 Brand, 58, 66 67 Brands, 243 Buffet Service, 175 C Campgrounds, 188 Carbon Footprint, 213 Career Ladder, 22, 26 Cart Service, 174 Cash Bank, 116 117 Cashier, 102, 108, 110 Casual-Dining, 165 Catering, 180 Central Reservation Office (CRO), 108, 111 Check-out, 110, 116 Chef, 192 Chief Engineer, 152, 155 City Ledger Control Folio, 210 Cold Call, 242 Comm Center, 95 Commercial Hotel, 16 Common Law, 269 Compensation, 64 Complaints, 30, 65, 103 Compliance, 254 255, 257 258 Concierge, 16, 102, 106, 108, 110 Condominium, 16 Conference, 16 17, 245 Conference and Convention Center, 17 Control Point, 172 Convention, 241 242, 245 Convention/conference sales, 245 Convictions, 39 Cost Centers, 203 Cost Control, 146, 148 Cross-selling, 245 Cruise Lines, 191 Cruise Ships, 17, 191 193 Curb Appeal, 150 D Death, 273 Demographics, 227 Departure, 49 Director of Meeting, Events, and Convention Sales, 241 Director of Sales, 241 Director of Sales and Marketing, 241 Discretionary Income, 53 Diversity, 12, 18, 53, 61, 232 Dram Shop Laws, 178 E Economy properties, 102 Elevator Malfunctions, 273 Elevators, 151 E-mail, 35, 49, 86, 91, 242, 256 Emergency Maintenance, 156 Emergency Planning, 146 Emergency Preparedness, 157, 274 Emergency Response Plan, 276 Emotional Engagement, 76 Employee Morale, 92 Energy Conservation and Management, 159 Engineering, 147 149 Entry-level, 22, 26 27, 50, 149, 156 Equipment, 106, 127, 128 Ethics, 38, 232 European Plan, 117 Evacuation, 263, 275, 276 Executive, 26 Executive Housekeeper, 122 125, 132 134 Expertise Building, 24 Extended-Stay Hotels, 16 F Facilities Management, 146, 149 150, 156 158 Falls, 260 Family-Dining, 165 Family-style Service, 174 Fine-Dining, 165 Fire Extinguishers, 263 Fire Response, 276 277 Fires, 106, 157, 263 Fire Safety, 262 264 Floor Attendant, 130 Floor Par, 139 Floor Supervisor, 130 Food and Beverage, 103, 147 Forecasting, 106 Four Ps, 224 Fraud, 72, 79 Front Desk Representative, 27, 34, 108, 112, 114 Front Office, 100, 102 104, 113 Front of House, 122, 147 G General Manager, 106, 113 Going Green, 140, 213 Gray Water, 213 Green Practices, 102, 106 107, 131 133, 158 159, 183, 233 Green Team, 141 Group Market, 189 Groups, 11, 16 17, 245 Group Sales, 245 Guest Complaints, 65, 113 Guest Credit Limits, 204 Guest Cycle, 59, 70, 72 74 Guest Experience, 13, 23, 36, 46 47, 58 61, 66 67, 78, 84, 92, 94, 99, 130, 176, 188 Guest Folio, 110 112, 204 Guest Ledger, 204 Guestroom Attendant, 27, 122, 124, 126, 129 130, 155 Guestroom Maintenance, 129, 146 Guest Service Gold, 29, 62 63 H HACCP, 173 Hard Skills, 23 Hazardous Materials, 159, 258 Hazardous Materials Communication, 258 Hazardous Materials Management, 159 HazCom, 258 Health and Safety Program, 254 Hospitality, 6 Host or Hostess, 17 Housekeeping, 27, 103, 120, 122 140 Housekeeping Manager, 130 Human Trafficking, 268, 276 Index Hospitality and Tourism Management Program 295

I Identity Theft, 72, 79, 107 Inclusive, 12 Infrastructure, 10 Innkeepers Laws, 269 Intangible Services, 13 Interdepartmental Communication, 94 95, 102, 129 Internet, 3, 7, 16, 74, 111, 233, 242 Interview, 23, 32, 36 38 Inventory, 120, 135 136 Issuing, 137, 139 J Jargon, 86 Job Performance Standards, 50 Job Safety Analysis, 253 K Keys, 116, 124 L Labor Costs, 156, 168 170 Land-Use Planning and Management, 159 Laundry, 138 139 Laundry Attendant, 130 Laundry Cycle, 138 Laundry Manager, 130, 138 Law Enforcement, 276 Leadership, 26, 106 Lead time quantity, 135 Liability, 65, 255 Linen, 124, 127, 138 139 Linen Room Attendant, 131 Lodging, 8, 25 M Maintenance, 129, 146, 148, 151 155 Management, 26 Marketing, 217 218 Marketing Messages, 229 230 Marketing Plan, 217, 224 Marketing Tools, 229, 233 Market Segmentations, 226 Medical Emergencies, 273 Meeting Market, 189 Meeting Room Sales, 245 Meth Labs, 276 Minimum Quantity, 135 Modified American Plan, 117 Moments of Truth, 47 Monthly Inventory Count, 134 Morals, 38 N National Restaurant Association, 3 Natural Disasters, 157, 276 Night Audit, 102, 114, 202 Night Audit Calculations, 211 Night Auditor, 108, 205, 211 212 Non-guaranteed Reservation, 111 O Occupancy, 48 49, 59, 106, 116 Occupancy Percentage (OP), 205, 212 Occupational Safety, 148, 253 254, 257 Occupational Safety and Health Administration (OSHA), 148, 254 Operational Safety, 250, 259 Ordinances, 179 Other Travel Accommodations, 17 P Par, 132 133, 138 Par Number, 138 Payment, 49, 72, 74 Payment Cards, 72 Performance Standards, 29, 50, 106, 115 Plate Service, 174 Platter Service, 174 Point of Sale (POS), 74, 190 Portfolio, 32, 35 Posting, 114 Power Failures, 103 104 Power Outages, 157, 273 Pre-Arrival, 59, 190 Preventive Maintenance, 129, 152 155 Price Point, 169 Productivity standard, 125 Profit and Loss (P&L) Report, 76 Property Management System (PMS), 108, 110 111, 116 Property Service Standards, 31 Prospecting, 242 Psychographics, 227 Public Space Cleaner, 27, 122, 131 Public Space Supervisor, 131 Q Quality Guest Service, 50 Quick-Casual, 165 Quick-Service, 165 R Rack Rate, 202, 212 Reader Board, 113 Reasonable Care, 269 Recreational Vehicles (RV), 194 Recycling, 102, 106 107, 141, 159, 213 Referrals, 243 Registration Record, 112 Regulatory Compliance, 146, 148, 254 255 Relationship Building, 102, 243 Reorder Point, 136 Reservationist, 108 Reservation Record, 108, 111 Residential Hotel, 16 Resort Hotel, 17 Restaurant Servers, 245 Résumé, 32, 34 35 Return on Investment (ROI), 223 Revenue Center, 203 204 Revenue Per Available Room (RevPAR), 106, 205, 211 Risk Management, 172, 254 Room Inspection, 128 Room Rate, 17, 110 112, 114, 117 Rooms-Only Hotel, 166 Routine Inspection, 153 Routine Maintenance, 153, 156 S Safety and Security, 248, 269 270 Safety Stock Level, 135 136 Sales, 236, 238 245 Sales Department, 238 240 Sales Manager, 241 Seamless Guest Experience, 60, 106 Search Engine Optimization (SEO), 230 Security, 203, 266, 268 277 Self-Esteem, 39 Sensitive Information, 74 Settlement, 49, 108, 110, 112 Severe Weather, 268, 276 Shelter in Place, 157 Shortage, 137, 138 Skilled-level, 26 Ski Resorts, 190 Slips, 260 Soft Skills, 23, 29, 50 Solid Waste Management, 159 Spa Resorts, 54, 189 Sports and Recreation, 196 Standard Recipe, 169 Strategic Alliances, 243 Suggestive Selling, 245 Supervisor, 27, 124, 130, 131 Supervisory, 26 Sustainable Green Practices, 140, 158 296 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 Educational Institute, 63, 88, 111, 125, 127, 128, 132, 135, 137, 138, 144, 150, 151, 155, 156, 170, 171, 172, 249, 250, 258, 259, 260, 262, 266, 275 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 ShutterStock.com, 8, 10, 12, 16, 78, 151, 175, 180, 186, 189, 190, 192, 238, 294 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