TLFeBOOK HOTEL FRONT OFFICE MANAGEMENT TLFeBOOK TLFeBOOK HOTEL FRONT OFFICE MANAGEMENT THIRD EDITION James A. Bardi, Ed.D., CHA The Pennsylvania State University John Wiley & Sons, Inc. TLFeBOOK This book is printed on acid-free paper. ∞ Copyright © 2003 by John Wiley & Sons, Inc. All rights reserved Published by John Wiley & Sons, Inc., Hoboken, New Jersey Published simultaneously in Canada 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, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 750-4470, or on the web at www.copyright.com. 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TLFeBOOK TLFeBOOK Contents Preface ix Acknowledgments xi Chapter 1 Introduction to Hotel Management 1 Chapter 2 Hotel Organization and the Front Office Manager 33 Chapter 3 Effective Interdepartmental Communications 71 Chapter 4 Property Management Systems 93 Chapter 5 Reservations 127 Chapter 6 Yield Management 161 Chapter 7 Guest Registration 181 Chapter 8 Processing Guest Charge Payments 221 Chapter 9 Guest Checkout 237 Chapter 10 Night Audit 261 Chapter 11 Managing Hospitality 305 Chapter 12 Training for Hospitality 333 Chapter 13 Promoting In-House Sales 359 Chapter 14 Security 379 Glossary 409 Index 425 TLFeBOOK TLFeBOOK Preface T he third edition of Hotel Front Office Management continues to address the demands of the hotel industry in the new millennium. Educators who are preparing profession- als for roles as front office managers and general managers in hotels are required to meet the challenges of operations, technology, training, empowerment, and international ap- plications. This edition continues to encourage students to take an active role in applying these concepts to the exciting world of hotel operations. The emphasis on management continues to play a central role in this third edition. The structure presented in this text will assist students as they prepare for positions as entry-level managers. The logical presentation of chapters in order of operations—over- view of lodging hospitality, tour of the front office, review of the guest cycle, and analysis of guest services—will allow students to gain insight into a front office manager’s role in the hotel. The “Front Office Essentials” chapter from the second edition has been deleted because a majority of hotels employ a property management system as opposed to a manual front office operation. Those portions of the chapter that referred to a property management system are included in the new Chapter 4, “Property Management Systems.” The third edition contains updated pedagogical features, including an “Opening Di- lemma,” which presents students with a mini–case study problem to solve with the help of material presented in the chapter; a “Solution to Opening Dilemma” is included at the end of each chapter. “Hospitality Profiles”—commentaries from hotel front office man- agers, general managers, and other department managers in hotels—add an extra human relations element to the text. “International Highlights”—articles of interest that accen- tuate the international workforce and international career opportunities for graduates— provide a forum for professors and students to discuss this aspect of hotel management. “Frontline Realities” includes unexpected yet very predictable situations. Students are asked to discuss those situations and develop methods for handling them. More “Case Studies” have been added to each chapter, allowing students to apply theory. A glossary TLFeBOOK [...]... 1: INTRODUCTION TO HOTEL MANAGEMENT Figure 1-2 Hotel industry overview I Types of hotel properties a Hotels b Motels c All-suites d Limited-service hotels e Extended-stay hotels II Market orientation/location a Residential i Center-city 1 Hotels 2 All-suites 3 Limited-service 4 Extended-stay ii Suburban 1 All-suites 2 Limited-service 3 Extended-stay b Commercial i Center-city 1 Hotels 2 All-suites... the hotel industry TLFeBOOK HISTORICAL DEVELOPMENTS Historical Developments The history of the hotel industry is also filled with notable concepts that shaped the products and services offered The atrium concept design, limited-service hotels, and technology were notable innovations Management concepts such as marketing and total quality management (TQM) offered managers a new way to do business in hotels... Introduction of legislation that monitored hotel ownership through real estate investment trusts (REITs) Sources: American Hotel and Motel Association; Madelin Schneider, “20th Anniversary,” Hotels & Restaurants International 20, no 8 (August 1986): 40 (copyright Hotels magazine, a division of Reed USA); Larry Chervenak, “Top 10 Tech Trends: 1975–1995,” Hotel & Motel Management 210, no 14 (August 14, 1995):... housekeeping, and accounting Hilton Hotels have expanded their entrepreneurship to include Hilton Garden Inns, Doubletree, Embassy Suites, Hampton Inns, Harrison Conference Centers, Homewood Suites by Hilton, Red Lion Hotels and Inns, and Conrad International Cesar Ritz Cesar Ritz was a hotelier at the Grand National Hotel in Lucerne, Switzerland Because of his management abilities, “the hotel became one of the... worked at the front desk at The Saint Regis Hotel in New York City and began his professional career at the Sheraton-Carlton Hotel in Washington, D.C., as the rooms division manager He then became general manager of The River Inn hotel in Washington, D.C., and from there the regional director of operations for the Potomac Hotel Group Prior to becoming general manager of The Jefferson Hotel, Mr Longo... type of hotel may seem new, many downtown, center-city hotels have offered this type of accommodation with in-room kitchenette and sitting rooms since the early 1900s Now with mass marketing—advertising products and services through mass communications such as television, radio, and the Internet—this type of hotel is considered new Limited-Service Hotels Limited-service hotels appeared on the hotel scene... amount of room sales received—for a hotel However, this figure also affects guests’ expectations of their hotel experience Guests expect higher room rates to correlate with higher levels of service: the hotel with a rate of $150 per night is expected to offer more services than a hotel in the same geographic area with a TLFeBOOK 16 CHAPTER 1: INTRODUCTION TO HOTEL MANAGEMENT rate of $55 per night These... RevPAR is used in hotels to determine the amount of dollars each hotel room produces for the overall financial success of the hotel The profit from the sale of a hotel room is much greater than that from a similar food and beverage sale However, the food and beverage aspect of the hotel industry is essential in attracting some categories of guests who want conference services Chapter 6, “Yield Management, ”... however, also be met by the referral property TLFeBOOK 20 CHAPTER 1: INTRODUCTION TO HOTEL MANAGEMENT Company-Owned Property A company-owned property, a hotel that is owned and operated by a chain organization, allows the hotel company developer to act as an independent entrepreneur The hotel company developer operates the hotel property in competition with all other properties in the area It uses its own... advertising, and operations management The hotel company developer recruits talented professions into the organization to manage such properties It uses the chain’s reservation system The hotel company developer may set a limit on the number of franchises so that a majority of the properties remain company-owned Management Contract Property A management contract property, a hotel that is operated by . TLFeBOOK HOTEL FRONT OFFICE MANAGEMENT TLFeBOOK TLFeBOOK HOTEL FRONT OFFICE MANAGEMENT THIRD EDITION James A. Bardi, Ed.D.,. Data: Bardi, James A. Hotel front office management/ James A. Bardi.—3rd ed. p. cm ISBN 0-471-01396-X (cloth : alk. paper) 1. Hotel Management. I. Title TX911.3.M27