RHM CH 10-16 – Flashcards

The first was English novelist William Makepeace Thackeray, The first American-origin cruise was 1867 Quaker City, transportation and immigration purposes, Titanic (April 15, 1912) people wanting to sight see in Europe after World War 1, Modern Cruising began with Leslie Frazer and her two ships Bilu and Nili

Norwegian Caribbean Line, Royal Caribbean Lines, Princess Cruise Lines, Carnival

Dickinson decided to make the cruise itself the passenger's destination. He made a fun and affordable vacation for the masses.

captain- responsible for the ship's operation and the safety of all aboard, has to see that the company policies and rules are followed, as well as national and international laws; hotel manager- is directly responsible for creating the vacation experience the cruiseline offers

purser-the ship's banker, information officer, human resource director, and complaint handler; food and beverage manager- feeding the passengers and crew members

chief house keeper-is responsible for the cleaning and general maintenance of all cabins and interior areas on the ship, responsible for passenger laundry and dry-cleaning, food service, and loading and unloading luggage; cruise director-entertainers, musicians, and children's counselors, shore excursions;

Seabourn: A Case Study in Quality Management: Seabourn: A Case Study in Quality Management Page 302 - 303 Seabourn: A Case Study in Quality Management: Seabourn: A Case Study in Quality Management Page 302 - 303 A new facility that only accommodate 204 people, all of them had suites of 277 - 575 square feet. Built to serve the high end passengers. Built to provide service of high crew/high passenger ratio - 2 crew for every 3 passengers. Seabourn: A Case Study in Quality Management: Seabourn: A Case Study in Quality Management Page 302 - 311 Emphasizing Service Service Delivery Systems Operations Procedures Passenger Comments Everyone is involved Opportunities Problems Customized Service Empathy Seabourn: Emphasizing Service: Seabourn: Emphasizing Service Page 303 - 304 There goal is to "Win there hearts" Receive questionnaires before the trip, during the trip and after the trip No lines, No waiting, No formalities Provide guest with monogrammed stationary, a bar and a refrigerator (stocked with their favorites), and a complimentary sight-seeing tour. Room service 24 hours a day, gyms, saunas, steam baths, beauty salons, whirlpools, swimming pools, jogging track, and library. Seabourn: Service Delivery System: Seabourn: Service Delivery System Page 304 Goal 1 - Take care of your employees Goal 2 - Take care of your guests Anyone that receives a guest complaint "owns" that complaint. Promotes teamwork and service to co-workers. Communicates guest problems to fellow employees and management. Take responsibility for your own behavior. Don't be afraid to make a mistake - if you are trying to do your job better! Seabourn: Operations Procedures: Seabourn: Operations Procedures Page 304 - 305 Very detailed and specific.......... See Page 305 Seabourn: Passenger Comments: Seabourn: Passenger Comments Page 305 - 306 The have waiters' meeting and read all comment cards aloud. All employees chime in with "pros" and "cons" and how could this be changed to meet customer/guest expectations. Seabourn: Everyone is Involved: Seabourn: Everyone is Involved Page 306 - 307 Everyone must be involved in producing the product. Then it becomes theirs, and they own it. Training is continual and never ending. Seabourn: Opportunities: Seabourn: Opportunities Page 307 - 308 Cruise ships are floating hotels. No tipping permitted. Creating everlasting relationships between cruise personnel/industry and individuals. Creating ongoing relationships between cruise personnel/industry and nations. Seabourn: Problems: Seabourn: Problems Page 308 - 309 Majority of the problems occur during seaside excursions. Problems with transportation Problems with tours Problems with resources Problems with relations Seabourn: Passengers Expect Customized Service: Seabourn: Passengers Expect Customized Service Page 309 - 310 Give the customer what they expect or more Provide customized service "the company relies on highly trained and motivated people, people who are motivated not by money, although they are well paid, but rather by a genuine pride in what they do." Seabourn: Empathy is an Important Factor: Seabourn: Empathy is an Important Factor Page 310 - 311 You gotta have Heart. Empowerment is a must. Lessons to be learned but hard to accomplish: Affluent guests buy experiences Employees must be respected Employees should be involved in shaping the product and empowered to deliver it

gaming dates back to early Chinese dynasties in 2300 B.C., after the Crusades, gambling spread throughout Europe; sailors brought dice and cards with them on their first expeditions, lotteries to pay for the Revolutionary War, Mississippi River was a popular gambling place, Civil War- move to prohibit gambling in the US, Nevada revived gambling to help the economy in the Great Depression, Riverboat gambling, Indian Gambling, and Casino Hotels

the hotel operations are subordinate to the gambling operation; they have a hotel president that is above the hotel vice president; multiple vice presidents of the hotel

table games and slot machines

markers, cashier's cage, pit, fill and credit slips, drop box, table drop, slot drop, table win, hold percentage

croupiers- conduct table games, collect bets, and pay the winning bets of players using chips; floor people-are casino employees who supervise dealers; pit boss- manages a larger group of tables and pays special attention to tables with high action

grind players and high-end players; grind players- generally enter the casino with a budget; high-end players-gaming for them is a chance to experience meaningful risk, a big thrill, for which they are prepared to put down a lot of money

casino managers have been known to present Rolex watches to high-end players and their spouses when they arrive, these players may leave with a Lexus or BMW if their losses (the casino's winnings) are significant enough; high-end are recruited through agents and friends, middle-range- room discounts, room junkets (completely paid trips), special tournaments, all through mail or computer; low-end- may offer free cocktails and hold drawings for automobiles and cash

accounting controls, equipment controls, and human controls

setting objectives, organizing, motivating and communicating, measuring performance, developing people

classical school of management- founder: Frederick W. Taylor, came up with scientific principles of production, there is one best way to do every job, believed in paying for how efficient the worker was, Henry Gantt devised a control system for production-scheduling so that managers could forecast how much work should be expected from each employee. Frank Gilbreth-found a more efficient way to lay bricks.. from 18 to 5 motions Lillian Gilbreth- more breaks for workers (as a couple created the three position plan of promotion) Henri Fayol-management principles--- the behavioral school-Chester I. Barnard-only when the goals of the employees as well as employers were being satisfied could an organization grow and prosper, Abraham Maslow said we all have a system of priorities in our needs (five separate needs groups page 363). Douglas McGregor- Theory X and Theory Y

George Elton Mayo, a Harvard Business School professor, evaluated some studies on human behavior in work setting performed at the Western Electric Company's plant in Hawthorne, Illinois. Revolutionized the way managers looked at human relations problems, discovered that the employees worked harder and more efficiently when the management was interested in them and had the ear of a sympathetic supervisor.

Managers trained in the quantitative school use complex mathematical decision-making models based on consumer research to determine the probability of success for a new restaurant location

according to a systems school, a company is a system composed of many interrelated departments, which in turn is part of a larger external environment (made up of such things as competing companies, the economy in general, and societal values). Internal and external systems. The contingency school suggest that there are few management principles that are as universal as Taylor, Fayol, and Mayo believe. Managers must be pragmatic and decide what is likely to achieve the needed results in any given situation. The solution may use classical, behavioral, or quantitative management ideas.

Deming-introduced the concept that consumers were the most important part of a production line. Managers need to meet customer's needs and stay ahead of the competition. This would increase quality and production. Joseph Juran-definition for quality was "fitness for use", developed the Cost of Quality accounting system. Philip Crosby argued that quality is free. Ritz Carlton (6 steps for problem solving page 368)

the customer focus school is just a logical extension of the quality management school. We now have a better understanding of the needs and wants of today's customers. There were four expectations that all customers had... 1. accuracy 2. availability 3. partnership 4. advice.

you find your flaws and shortcomings and fix them.

1. Attention through vision 2. Meaning through communication 3. Trust through positioning 4. Self-development

a management technique whereby front-line employees are authorized to solve customer's problems and make other decisions that were once made only at higher levels within the organization

Population growth, The aging work force, Generation Y or Millennials, The increase in women workers, The shifting population, The growth in education levels, The diversity of the work force

inefficient hiring systems, limited opportunities for advancement, lack of training and supervision

job list- simply a list of the tasks that must be performed by the individual holding a particular job; job breakdowns- specific step-by-step procedures for accomplishing a task; job description- a recruiting and training tool that outlines for a particular job the title, person whom the person reports, work to be performed, education or skill the person must have, physical requirements (394)

dividing sales by payroll costs; dividing sales by the number of full-time equivalent employees; units produced or served divided by the number of employees

internal sources- are the least costly and often the most reliable (recommended by current employees, promoting current staff) external sources- (social and professional contacts, classified advertising and direct mail, internet, private employment agencies)

1. receiving and processing applications 2. interviewing applicants 3. evaluating applicants 4. checking references 5. hiring the selected person

it is the process that teaches trainees the knowledge and skill they need to operate within the standards set by management. Training also attempts to develop within employees a positive attitude toward guest houses.

Remove the fear of failure, Pay a fair wage, Offer incentives and rewards for performance, Operate with an open-door policy; keep everyone informed

It lets employees know how well they have learned to do what the company expects of them, and it lets managers know how well they are doing in hiring the right people and training them.

selling is getting rid of what you have; marketing is having what people want

1. product 2. place 3. price 4. promotion

cost-plus pricing- determining the price by taking the total cost of providing a product or service and adding to it (1) a percentage to cover overhead or fixed expenses, and (2) a predetermined gross profit margin; competitive pricing- basing prices on what competitors charge; consumer-based pricing- pricing based on what consumers are willing to pay

personal selling, advertising, public relations and sponsorship marketing, sales promotion, direct marketing communications, point-of-purchase communications

marketing objectives-are clear and concise descriptions of exactly what managers want the marketing program to accomplish. These objectives are usually specific and measurable; marketing strategies- are simply descriptions of how the organization will go about trying to achieve its marketing objectives; marketing tactics- strategies are general in nature. getting to specifics are where tactics come in. A real marketing plan contains tactics for every strategy

page 430

advertising is a substitute for personal salesmanship; advertising can get into an office or home where a salesperson can't; advertising can, and often does, increase the value of products and services in a customer's eyes; advertising can be repetitive; advertising can be used to boost a person's self esteem, telling a person that using the product will make him or her feel more successful, more important, or more self-confident

competitive advantage, unique positioning, segmented market

all print should contain a promise, in the body of the ad try to "make the sale," the final part of the ad should contain a "call to action". . . (go to our website, call our agent, etc). An ad should always contain the signature or name of the advertiser and the advertiser's logo

made them laugh, make them bond, find out what they really like

the techniques that a company uses to improve these relationships with the public it interacts with are public relations. The goal of public relations is usually to improve the climate or atmosphere in which a company operates. Publicity can be defined as "a public relations technique in which information from an outside source-usually a public relations practitioner- is used by the media.

sales tools and techniques such as contests, extra commissions, familiarization tours, and loyalty marketing programs that are designed to generate an immediate response

hire a management company

the portion of the management fee (paid by hotel owners to hotel management companies) that is based on a percentage of income before fixed charges (also known as gross operating profit), or on a percentage of cash flow after debt service

operating term, fee structure, reporting requirements

a management contract is a written agreement between an owner and an operator of a hotel or motor inn by which the owner employs the operator as an agent (employee) to assume full responsibility for operating and managing the property; a lease is where the hotel is leased to several other operators

read pages 463-466

Operators generally favor long-term contracts because such contracts tie them more time to recover a return on their investment. While a long-term contract offers stability for the operator, the owner, and the lender, it is a disadvantage to the owner if the owner wants to remove the operator before the contract comes up for renewal.

technical assistance fees, pre-opening management fees, basic fees

approval provisions are the provision of a hotel management contract specifying which operator decisions require management approval. The mechanism for settling owner/operator disputes is sometimes included in this provision. the termination provisions allows either party to terminate the management agreement under certain conditions

disadvantages for owners- still have to carry out most of the financial burden, advantages for owners-they buy the services of an established hotel operator with a proven track record and a good reputation; advantages for the operator- it can control a large number of properties with a relatively limited investment; disadvantages for operators- reputation is on the line, the owner may make decisions regarding the property's development or sale without the operator's input

franchisor- the franchise company that owns the trademark, products, and/or business format that is being franchised. franchisee- the individual or company granted a franchise

product or trade-name franchise

Singer sewing machines began the practice of franchising, General motors established dealerships to sell and service their cars, Coca-cola allowed franchises to wash and re-use their glass bottles, build bottling plants in return for purchasing Coca-Cola bottles and syrup.

the typical franchise fee arrangement has two parts: 1. an initial franchise fee, payable upon signing the franchise agreement and 2. ongoing fees. Initial franchise fees may vary. They are calculated by assigning a monetary value to the following... the franchisor's goodwill, the value of the new franchise unit's trading area or territory, the average cost of recruiting a franchisee, the cost of training a franchisee, the cost of signs, ads, plans, and other aids.

a prospectus that outlines certain vital aspects of a franchisor and its franchise agreement. By law, the UFOC must be given to a potential franchisee before the franchisee signs the franchise agreement

self management, financial independence, career advancement, new skills/training, a long-term investment that would appreciate in value

advantages: site-selection assistance, credit, construction expertise, fixtures and equipment assistance, training, opening support, promotional assistance, economies of scale, ongoing support. disadvantages: restrictions, unwanted products or procedures, unwanted advertising, unprotected territories, cancellation, inadequate training

because the franchisee is representing their company and name

advantages: little to no capital is required for expansion because the franchisee is providing the funding, can expand their companies quickly, gains an involved and motivated on-site manager by the owner; disadvantage is that the franchisor gives up the profits generated by its franchise units, settling for royalties instead. Also, the franchisor surrenders a certain amount of control to the franchisees.