Business of hotels
1111 2 3 4 5 6 7 8 9 101111 1 2 3 4 5 6 7 8 9 20111 1 2 3 4 5 6 7 8 9 30111 1 2 3 4 5 6 7 8 9 40 41111 The Business of Hotels 2709 HOTELS 00 prelims C/PT/ck 7/4/00 9:59 am Page i By the same authors S. Medlik Britain – Workshop or Service Centre to the World? The British Hotel and Catering Industry Dictionary of Travel, Tourism and Hospitality Europeans on Holiday Higher Education and Research in Tourism in Western Europe Historical Development of Tourism (with A.J. Burkart) Holiday Surveys Examined The Management of Tourism (with A.J. Burkart eds) Managing Tourism (ed.) A Manual of Hotel Reception (with J.R.S. Beavis) Paying Guests Profile of the Hotel and Catering Industry (with D.W. Airey) Tourism and Productivity Tourism Employment in Wales Tourism: Past, Present and Future (with A.J. Burkart) Trends in Tourism: World Experience and England’s Prospects Trends in World Tourism Understanding Tourism Your Manpower (with J. Denton) H. Ingram Developing Hospitality Properties and Facilities (with J. Ransley eds) Operational Techniques for the Hospitality Industry (with N. Johns and D. Lee-Ross) Strategic Management (with R.Teare) 1111 2 3 4 5 6 7 8 9 1011 1 2 3111 4 5 6 7 8 9 20111 1 2 3 4 5 6 7 8 9 30111 1 2 3 4 5 6 7 8 9 40 41111 2709 HOTELS 00 prelims C/PT/ck 7/4/00 9:59 am Page ii The Business of Hotels Fourth Edition S. Medlik and H. Ingram 1111 2 3 4 5 6 7 8 9 101111 1 2 3 4 5 6 7 8 9 20111 1 2 3 4 5 6 7 8 9 30111 1 2 3 4 5 6 7 8 9 40 41111 OXFORD AUCKLAND BOSTON JOHANNESBURG MELBOURNE NEW DELHI 2709 HOTELS 00 prelims C/PT/ck 7/4/00 9:59 am Page iii Butterworth-Heinemann Linacre House, Jordan Hill, Oxford OX2 8DP 225 Wildwood Avenue, Woburn, MA 01801-2041 A division of Reed Educational and Professional Publishing Ltd First published 1980 Reprinted 1985, 1986, 1987 (twice) Second edition 1989 Reprinted 1990, 1991, 1993 Third edition 1994 Reprinted 1995, 1996, 1997, 1998, 1999, 2000 Fourth edition 2000 © S. Medlik 1980, 1989, 1994 © S. Medlik and H. Ingram 2000 All rights reserved. No part of this publication may be reproduced in any material form (including photocopying or storing in any medium by electronic means and whether or not transiently or incidentally to some other use of this publication) without the written permission of the copyright holder except in accordance with the provisions of the Copyright, Designs and Patents Act 1988 or under the terms of a licence issued by the Copyright Licensing Agency Ltd, 90 Tottenham Court Road, London, England W1P 0LP. Applications for the copyright holder’s written permission to reproduce any part of this publication should be addressed to the publishers British Library Cataloguing in Publication Data Medlik, S. (Slavoj), 1928– The business of hotels. – 4th ed. 1. Hotel management I. Title II. Ingram, Hadyn 647.9´4´068 ISBN 0 7506 4115 0 Printed and bound in Great Britain 1111 2 3 4 5 6 7 8 9 1011 1 2 3111 4 5 6 7 8 9 20111 1 2 3 4 5 6 7 8 9 30111 1 2 3 4 5 6 7 8 9 40 41111 2709 HOTELS 00 prelims C/PT/ck 7/4/00 9:59 am Page iv Contents List of Tables ix List of Figures xi Preface to the First Edition xiii Preface to the Fourth Edition xvii PART I THE CONCEPTS OF HOTELS AND HOSPITALITY 1 1 Staying Away from Home 3 The Importance of Hotels – Travel and Hotels – Two Centuries of Hotelkeeping – Hotels in the Total Accommodation Market – Hotel Location – Types of Hotels – A Review So Far 2 Hotel Products and Markets 13 The Hotel as a Total Market Concept – Hotel Facilities and Services as Products – Hotel Accommodation Markets – Hotel Catering Markets – Sources of Hotel Demand – Hotel Market Areas – Hotel Market Segmentation – Buying and Paying for Hotel Services – Hotel Marketing Orientation 3 Hotel Policies, Philosophies and Strategies 25 Objectives and Policies – General and Sectional Policies – Policy Formulation, Communication and Review – Hotel Philosophies – Hotel Plans and Strategies – The Framework of Hotel Management 1111 2 3 4 5 6 7 8 9 101111 1 2 3 4 5 6 7 8 9 20111 1 2 3 4 5 6 7 8 9 30111 1 2 3 4 5 6 7 8 9 40 41111 2709 HOTELS 00 prelims C/PT/ck 7/4/00 9:59 am Page v PART II THE STRUCTURE OF THE HOTEL INDUSTRY 37 4 The Small Hotel 39 Products and Markets – Ownership and Finance – Organization and Staffing – Accounting and Control – The Future of the Small Hotel – Consortia 5 Hotel Groups 50 Hotel Group Operations – Advantages of Groups – Problems of Groups – Scope for Centralization – A Concentrated Hotel Group: an Illustration – A Dispersed Hotel Group: an Illustration 6 International Hotel Operations 63 Products – Markets – Ownership and Finance – Organization and General Approach PART III THE HOTEL AND ITS FUNCTIONS: GUEST SERVICES 77 7 Rooms and Beds 79 Room Sales – Mail and Other Guest Services – Uniformed Services – Hotel Housekeeping – Organization and Staffing – Accounting and Control 8 Food and Drink 89 The Food Cycle – The Beverage Cycle – Hotel Restaurants – Hotel Bars – Room Service – Functions – Food and Beverage Support Services – Organization and Staffing – Accounting and Control 9 Miscellaneous Guest Services 102 Guest Telephones – Guest Laundry – Rentals and Concessions – Other Sources of Income – Accounting and Control PART IV HOTEL SUPPORT SERVICES 111 10 Marketing 113 From Production to Sales to Marketing – The Marketing Concept – Special Features of Hotel Marketing – The Marketing Cycle – Marketing Resources – Yield and Quality Management – Hotels in the Total Tourist Product 1111 2 3 4 5 6 7 8 9 1011 1 2 3111 4 5 6 7 8 9 20111 1 2 3 4 5 6 7 8 9 30111 1 2 3 4 5 6 7 8 9 40 41111 vi Contents 2709 HOTELS 00 prelims C/PT/ck 7/4/00 9:59 am Page vi 11 Property Ownership and Management 127 Property Ownership – Property Operation and Maintenance – Facilities Management – Energy – Hotels and the Environment 12 Finance and Accounts 135 The Hotel Balance Sheet – Balance Sheet Ratios and Analysis – The Hotel Profit and Loss Statement – Profit and Loss Ratios and Analysis – Hotel Operating Profit – Balance Sheet and Profit and Loss Relationships PART V PEOPLE AND PROCEDURES 147 13 Hotel Organization 149 Rooms – Food and Beverages – Miscellaneous Guest Services – Hotel Support Services – The Management Structure – Organization Structure of a Large Hotel: an Illustration – Accounting and Control – Information Technology in Hotels 14 Hotel Staffing 163 Determinants of Hotel Staffing – Hotel Products and Staffing – Organization of the Human Resource Function – Organization of Training – Functions of the Training Division 15 Performance in Hotels 171 Criteria of Performance – Financial Perspective – Internal Business Perspective – Innovation and Learning Perspective – Customer Perspective – Some Ways to Higher Productivity APPENDICES 183 A Travel and Hotels in the United Kingdom in the 1990s 185 B Travel and Hotels in America in the 1990s 187 C Global Capacity of Hotels and Similar Establishments, 1995 189 D Hotel Occupancies in Selected Countries 1994, 1995, 1996 191 E Leading Hotel Groups World-wide 192 F Leading Hotel Groups in Europe 194 G Leading Hotel Consortia 196 H Horwath International Reports 197 I Select List of Hotel and Related Organizations 199 J Select List of Hotel Periodicals 202 K Suggested Further Reading 205 Select Bibliography 209 Index 214 1111 2 3 4 5 6 7 8 9 101111 1 2 3 4 5 6 7 8 9 20111 1 2 3 4 5 6 7 8 9 30111 1 2 3 4 5 6 7 8 9 40 41111 vii Contents 2709 HOTELS 00 prelims C/PT/ck 7/4/00 9:59 am Page vii 1111 2 3 4 5 6 7 8 9 1011 1 2 3111 4 5 6 7 8 9 20111 1 2 3 4 5 6 7 8 9 30111 1 2 3 4 5 6 7 8 9 40 41111 2709 HOTELS 00 prelims C/PT/ck 7/4/00 9:59 am Page viii Tables 1 Accommodation profile of selected European countries, 1995 8 2 Social grade definitions 21 3 Leading hotel management companies 52 4 Leading hotel franchising companies 53 5 Composition of hotel revenue in main regions 66 6 Composition of hotel revenue in selected European countries 67 7 Composition of hotel markets in main regions 67 8 Advance reservations in hotels in main regions 68 9 Method of payment for hotel services in main regions 68 10 Charge/credit card hotel sales in main regions 69 11 Room sales as a ratio of hotel revenue in main regions 80 12 Rooms payroll and related expenses ratios to sales in Europe and Africa 86 13 Room sales, expenses and profit ratios in selected European countries 86 14 Room occupancies and average rates in selected European countries 87 15 Double occupancies in selected cities and regions 88 16 Food and beverage sales as a ratio of hotel revenue in main regions 90 17 Food and beverage payroll and related expenses ratios to sales in Europe and Africa 99 18 Food and beverage sales, expenses and profit ratios in selected European countries 100 19 Miscellaneous sales and income as a ratio of hotel revenue in selected regions 104 1111 2 3 4 5 6 7 8 9 101111 1 2 3 4 5 6 7 8 9 20111 1 2 3 4 5 6 7 8 9 30111 1 2 3 4 5 6 7 8 9 40 41111 2709 HOTELS 00 prelims C/PT/ck 7/4/00 9:59 am Page ix . rather specialized type of business. They attracted many successful entrepreneurs and managers, but both have been too busy making a success of their hotels. functions of the hotel. There are also several economic and historical studies of the industry. Most of these and the few dealing more or less comprehensively