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FRONT OFFICE SEMANTICS
PBX (private broadcast exchange):
System in the hotel used to process incoming, internal, and outgo-
ing telephone calls.
Night auditor:
Front office employee who performs the daily review of guest transactions recorded by
the front office.
OVERVIEW OF THE LODGING INDUSTRY
51
Assistant
Marketing
Director
Accounts
Receivable
Clerks
Accounts
Payable
Clerks
Assistant Human
Resources
Director
Resident Manager
(See Figures 8B and 8C)
Food & Beverage
Controller
Assistant
Controller
Catering
Director
Sales
Managers
Account
Managers
Personnel
Clerks
Head
Cashier
Payroll
Clerks
Payroll
Supervisor
Credit
Manager
Cashiers
Clerks
Director of Sales
and Marketing
Human Resources
Director
Controller
General Manager
FIGURE 8A
Organization chart for mega hotel.
Adapted from Hayes, D. K., and J. D. Ninemeier. 2004.
Hotel Operations Management, pp. 25–27. Upper Saddle River, NJ: Pearson Prentice Hall. Reprinted by permission.
52
Asst. Front
Office Manager
Asst. Executive
Housekeeper
Executive
Housekeeper
Night
Manager
PBX
Supervisor
Desk
Agents
Front Office
Supervisor
Head
Cashier
PBX
Operators
Reservations
Clerks
Night
Auditors
Night
Clerks
Reservations
Supervisor
Security
Supervisors
Security
Agents
Night
Supervisor
Laundry
Workers
Laundry
Manager
Head
Houseperson
Room
Attendants
Floor
Supervisors
Maintenance
Supervisors
Maintenance
Workers
Purchasing
Agents
Uniformed Services
Manager
Front Office
Manager
Cashiers
Housepersons
Rooms Division
Director
Chief
Engineer
Purchasing
Director
Director of
Security
Resident Manager
General Manager
Concierge
Staff
Bell Services
Manager
Bell Services
Attendants
Parking
Attendants
Van Drivers
Door
Attendants
FIGURE 8B
Organization chart for mega hotel.
53
Dining
Room
Captain
Banquet
Beverage
Servers
Assistant
Banquet Chef
Banquet
Cooks
Dining Room
Managers
Bus
Persons
Beverage
Servers
Host/
Hostess
Restaurant
Manager
Room Service
Manager
Beverage
Manager
Executive
Steward
Bar
Managers
Order
Takers
Assistant
Pastry Chef
Assistant
Sous Chef
Room Service
Cooks
Employee
Cafeteria Cooks
Banquet
Servers
Banquet Set-Up
Crew
Banquet Set-Up
Supervisor
Banquet
Captains
Broiler/Grill
Cooks
Soup/Vegetable
Cooks
Banquet
Bartenders
Banquet Chef
Pastry Chef
Servers
Dishwashers
Bartenders
Potwashers
Servers
Bakers
Sous Chef
Pantry Cooks
Fry Cooks
Banquet Director
Banquet Manager
Food & Beverage Director
Asst. Food & Beverage Director
Resident Manager
General Manager
Executive Chef
FIGURE 8C
Organization chart for mega hotel.
54
HOTEL LINE AND STAFF DEPARTMENTS
Line departments are those involved in the hotel’s chain of command. Managers in these
departments make direct operating decisions that affect the success of the property. The
front office and food and beverage departments are examples of line departments.
Staff departments provide specialized and technical assistance to managers in line
departments. Typical staff departments in a hotel include purchasing, human relations,
and accounting. Purchasing staff buy items needed by line menu planners; human
resources personnel provide staff needed by managers of line departments and provide
technical advice about labor laws and training; accounting personnel develop accounting
systems, collect financial information, record data in financial statements, and make rec-
ommendations to (but do not make decisions for) line decision makers.
FRONT OFFICE SEMANTICS
Line department:
Hotel division that is in the chain of command and directly responsible for generating
revenues (such as front office and food and beverage department) or for property operations (such as
housekeeping and maintenance and engineering).
Staff department:
Hotel division such as human resources, purchasing, and accounting that provides
technical, supportive assistance to managers of line-departments.
OVERVIEW OF THE LODGING INDUSTRY
SECTION REVIEW AND DISCUSSION QUESTIONS
Section Objective:
Discuss how hotels are organized.
Section Summary:
Hotels, regardless of size (number of rooms), are organized by
functions that include general hotel management, front office, control (account-
ing), engineering and maintenance, housekeeping, and marketing and sales. In
small properties, one staff member has responsibilities that will likely be split
among several managers in a larger property. For example, the front office man-
ager in a small property may be responsible for the front desk, cashier, uniformed
services, night audit, PBX, and reservations activities, but these activities would
represent specialized positions in larger properties. Similarly, small-property man-
agers must assume purchasing and human resources duties that would be per-
formed by specialists in larger operations.
Discussion Questions:
1. From the perspective of a department manager, what are the advantages and
disadvantages of working in a large property with specialized management
positions? What are the advantages and disadvantages of working as a depart-
ment head in a small property where many responsibilities must be combined
into one position?
2. Review the section of Figure 8 that addresses the general responsibilities of the
front office manager. What are the ideal experience and education require-
55
HOTEL OWNERSHIP AND MANAGEMENT ALTERNATIVES
A motorist driving along the highway sees a building with a sign indicating that it is a
hotel in a popular hotel chain. The name is recognizable because of an extensive nation-
wide advertising campaign. The driver’s thought is likely to be, “That hotel company
purchased some land and built another hotel to operate in this location.” In fact, that is
not likely the case. More likely, an independent investor or company hired a developer
to build the property on owned (or leased) land and signed an agreement with those who
own the brand to operate the hotel in a manner consistent with that brand’s standards.
In many cases, the investor retains a third party to manage the hotel.
FRONT OFFICE SEMANTICS
Hotel chain:
Group of hotels with the same brand name.
OVERVIEW OF THE LODGING INDUSTRY
ments for someone in this position? To what extent must the front office man-
ager know and be able to perform the various tasks performed by those in sub-
ordinate positions?
3. Assume a person has experience as a front office manager in a small, limited-
service hotel (see Figure 6). What might be a starting position and a career plan
for this individual if he or she begins to work in a mega hotel?
Objective 5
Review the many
challenges confronting
the lodging industry in
general and its
segments more
specifically
Objective 3
Discuss how hotels are
organized
Objective 2
Provide an overview
of common ways to
classify hotels
Objective 4
Describe the most
common structures
of hotel affiliation,
ownership and
operation
Objective 1
Explain how the
lodging segment is
integral to the travel
and tourism/
hospitality industry
Hotel Ownership
and Management
Alternatives
Organization
of Hotels
Classification
of Hotels
Lodging as Part of the
Travel and Tourism/
Hospitality Industry
Lodging Industry
Challenges
ROADMAP 4
56
Roadmap 4 indicates that this chapter’s overview of the lodging industry now
continues with a discussion of hotel ownership and management alternatives, the
most common of which are illustrated in Figure 9. Let’s look at Figure 9 closely.
First, note that a hotel may or may not be affiliated with a franchise.
OVERVIEW OF THE LODGING INDUSTRY
Best Western is a well-known hotel brand.
Non-
Franchise
Hotel
Property
Management
Company
Franchise
Affiliation
Independent
Independent
Operation
Ownership
Franchise
Company
(Franchisor)
Management
Company
Independent
Franchise
Company
(Franchisor)
Real Estate
Investment
Trust (REIT)
Independent
Joint Venture
FIGURE 9
Hotel ownership and management alternatives.
Adapted from Hayes, D. K., and J. D. Ninemeier. 2004.
Hotel Operations Management, p. 22. Upper Saddle River, NJ:
Pearson Prentice Hall. Reprinted by permission.
T
om P
rett
yman/P
hotoEdit Inc.
57
FRONT OFFICE SEMANTICS
Franchise:
Arrangement whereby one party (the brand) allows another party (the hotel’s owners) to use
its logo, name, systems, and resources in exchange for a fee.
If a property is affiliated with a franchise, it may be owned by an independent
operator or by other entities such as a franchisor, a real estate investment trust
(REIT) or a joint venture.
FRONT OFFICE SEMANTICS
Independent operator:
Entrepreneur who owns or operates one or a few hospitality properties.
Sometimes referred to as owning a
mom-and-pop property.
Franchisor:
Company that manages the brand and sells the right to use the brand name. Some fran-
chisors own and operate hotels as well as sell use of the brand name to others.
Real estate investment trust (REIT):
Public corporation that sells stock to raise money (capital) that is
then used to purchase real estate, including hotels.
Joint venture:
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