Hotel Operations Management Chapter 1

Those who work in the hotel business
Tourism Industry
All businesses that cater to the needs of the traveling public
Full Service Hotel
Lodging properties that offer complete food and beverage products and services
Guest room with at least 2 rooms or at least an extra large room in comparison to standard hotel rooms.
Ala Carte
Food service operation in which menu items offered are individually priced
Room Service
Food and beverage products served to guests in their sleeping rooms
Limited Service Hotel
No or very limited food service, no table service restaurant.
Inexpensive, dorm-style lodging with shared bathroom facilities. Popular with young travelers
Hotel visitor, typically rents rooms and/or purchases food or beverages in a hotel outlet or a banquet function
Money the hotel collects from guests for the use of rooms or from the purchase of hotel goods and services
Hotel Group
Organization that owns or franchises groups of hotels that are different brands
Hotel Brand
name of a hotel chain, also called “flag”
Those who manage the brand and sell the right to use the brand name
Those who own the hotel and purchase the right to use the brand name
Market Share
Percentage of total market captured by a property
Hotel Chain
Group of hotels with the same brand name
Management Company
Organization that operates a hotel for a fee, also called “contract company”
Front Desk
Area within the hotel used for guest registration and payment
Resident Manager
Manager who is directly responsible to the GM for operating departments
Line Departments
In the “chain of command” and directly responsible for revenues or property operations.
Staff Departments
Hotel divisions that provide technical support and assistance to line departments
Revenue Centers
Hotel departments that generate revenue
Cost Center
Hotel department that incurs costs in support of a revenue center
Moments of Truth
Anytime a guest has an opportunity to form an impression about the hotel (can be positive or negative)
Reducing the number of employees and/or labor hours for cost-containment purposes
Too many hotel rooms available for the number of travelers wanting to rent rooms
Market Segmentation
Efforts to focus on a highly defined group of travelers
Occupancy Rate
Ratio of guest rooms sold (including comps) to guest rooms available for sale in a given time period. total rooms sold/total rooms available=%
Hotel products and services designed to attract guests (complimentary breakfasts, exercise rooms, etc.)
Using technology to analyze guest (and other) data for marketing purposes.
condition in which countries and communities are becoming increasingly interrelated
Career Ladder
Plan that produces successively more responsible professional positions within an organization or society
Senior employee of a hotel who provides advice and counsel to less experienced staff members

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