SERVICES MANAGEMENT IN HOTEL INDUSTRY Operation

1. SERVICES MANAGEMENT IN HOTEL INDUSTRY
Dhruba Mandal

2. Hotel Rating System
One star Should be clean ,comfortable
and well mentioned
Two star hotel offer the basic quality
of one-star plus additional features
including a restaurant
A three-star hotel is one offering a truly
excellent lodging experience
A four-star hotel is luxurious and
characterized by attention to detail and
the feeling that guest comfort and
convenience are the priority concern
A five-star property is an elite property
that is ranked superior in every area of
the rating system

3. Organization of Hotel Functions

5. Hotel :: Revenue Management System
Revenue Management strategies utilize below tool to attain certain revenue goals
GOPPAR: Gross Operating Profit Per Available Room, is equal to total revenue less
the total departmental and operating expenses
GOPAR = Total revenue – Total Department – Total Operation Cost
RevPOST: Revenue per Occupied Space Time: is a measure of the Revenue Efficiency
of a Group or of a Hotel’s utilization of its Function Space.
RevPAR: Revenue Per Available Room, is a metric commonly used to measure
financial performance in the hospitality industry. It is a function of both room rates and
occupancy.
RevPor: Revenue Per Occupied Room, is used by Hotels to evaluate the Revenue
Contribution of a Group. is most often viewed by Revenue Managers in comparison to
budgeted targets, anticipated demand, and Year-Over-Year figures in order to determine
the rates, concessions, and contract terms offered to Meeting Planners.

6. Hotel Operations
Although hotels range in size from under 100 rooms to over 5,000 rooms,
functions remain essentially the same
Hotels are generally divided into three major functional areas
1. Room Division
Includes Front Desk, Reservations, Uniform Services (Security, etc.), and
Housekeeping
2. Food and Beverage division
Includes Restaurants, Bars, Banquets and Room Service
3. Staff and support department
Includes Accounting, Engineering, Marketing, Human Resources and
Contracted areas

7. Rooms Division
The Rooms Division is the heart of the hotel
It is the main business of the hotel and the main source of revenue
Rooms can contribute 70 percent or more to overall revenue and even more to profit
The Rooms Division is overseen by the Resident Manager (or Assistant General Manager)
and various department heads
The center of activity in the Rooms Division is the Front Office
The Front Office is responsible for checking guests in, checking them out, securing
payment, listening to complaints, communicating with other departments, determining
room availability, and selling additional rooms, among other responsibilities

8. Rooms Division (Reservation Department …)
The Reservations department is responsible for taking reservations
Reservations can be made by the guest via other methods but many requests are still
made through the hotel’s reservation department

9. Reservation system (contd ……
Reservations must maintain contact with other departments as well as other
reservations channels to be able to forecast available rooms
The Reservations department attempts to maximize
(1) room rate and (2) occupancy rate
The price of each of these units is called the room rate
Occupancy is the measurement of how many rooms are sold each night verses how many
rooms the hotel has to sell.
e.g. 75 rooms sold of 100 rooms available
= 75% occupancy rate

10. Food & Beverage – Hierarchy Chart

11. Food & beverage services in hotels
● Coffee shop
● Restaurant
● Fine dining
● Bar
● Lounge
● Executive lounge
● Conferencing & banqueting
● Outside catering
● Room service
● Mini bar
● Guest amenities
● Employee dining

12. Kitchen Design

13. Kitchen – Production Design
And efficient kitchen is where the chefs prepare and cook food in
minimal time whilst maintaining a very high standard. This could
be achieved through a methodical and economical method of
working by →
z Ensuring all kitchen equipment is up to standard and ready to use.
E.g.: A sharp knife over a blunt one at all times.
z Using electrical equipment for appropriate and worth while
purposes, for instances a potato peeler for 4 portions of potatoes
which is likely to take more time in putting the machine to use than
the time taken to peel potatoes it self is unworthy.
zWorking systematically as possible
z The kitchen crew holding right postures in order to avoid fatigue
and so forth. E.g. when standing for ;long periods of times standing
correctly with weight evenly on both legs.

14. Other Support Departments
Sales and Marketing
Responsible for “creating customers”
Largely revolves around selling “blocks” of rooms
Can be a large department in convention hotels specialized by market
Accounting
Role is moving beyond just bookkeeping
Includes overseeing the “house ledger” and the “city ledger”
Also, includes the night audit
Human Resources
Labor intensive industry requires progressive H/R
Responsibilities include supporting line departments in all H/R related
activities (hiring and recruiting, training, staffing, etc.)
Engineering
Oversees Heating, Cooling, Water, Lighting, Telecommunications, Energy
Management, Electric, other

15. HotelMarketing Process
1. Deciding
what to be
and whom
to offer
2. At what
price?
3. Creating
Answers &
Stimulatin
g Demand
4. Making
the Hotel
Available
5. Closing,
Confirming
&
Managing
Revenue
8.
Measuring
Satisfaction
6.
7. Retaining
Customers
Preparing
to satisfy &
delight

16. Determining Customer Needs Priorities for Improving
Service Quality
QFD (Quality Function Deployment)
→ QFD (Quality Function Deployment) is a quality management tool
through which we can determine what we need to accomplish to satisfy or
even delight the customers.
→ QFD is a visual connective process that helps teams focus on the needs of
the customers throughout the total development cycle. It provides the
means for translating customer needs into appropriate technical
requirements for each stage of a product/process development life-cycle.
→ It has been seen that the use of QFD can reduce the development time
by 50 percent and start-up and engineering costs by 30 percent.
→ The QFD process involves four phases:
(1) Product planning: house of quality.
(2) Product design: parts deployment.
(3) Process planning.
(4) Process control (quality control charts).

17. A chart (matrix) represents each phase of the QFD process. The
complete QFD process requires at least four houses to be built that
extend throughout the entire system's development life-cycle, with each
house representing a QFD phase.

18. QFD Phases
Phase 1 →Identifies customer requirements (WHATs) and evaluates those
weights in the left wall of the house
Phase 2 → compare the competitiveness of the service in the right wall
Phase 3 → translate customer requirements into service design
characteristics (HOWs) just below the roof
Phase 4 →define the relationship between WHATs and HOWs in the
central deployment matrix or called relationship matrix
Phase 5 → define the relationships between the various service design
characteristics in the correlation matrix in the roof
Phase 6 → design the target values of the service on the ground floor of the
house, which is the absolute importance for each service design
characteristic
The QFD charts help the team to set targets on issues, which are most
important to the customer and how these can be achieved technically. The
ranking of the competitors' products can also be performed by technical
and customer benchmarking.

19. House of Quality for Hotel Industry
The customer wants are listed in order of customer preferences as
follows:
1. Showing the home and interested in solving the customer problems
2. Fulfilling the customers required services with the 1st request
3. Making bills & reports correctly
4. Providing customers with fast services
5. Personnel's knowledge, interest and information on responding to the
customers
6. Friendly attitude of personnel`s toward customers
7. Safe environment for customers accommodation
8. Fast Reservation & settlement system
9. Understanding special needs of customers by the personnel
10. Proper appearance of the personnel
11. Physical facilities such as furniture, decoration, carpets, etc
12. Proper location of the hotel & existence of clean and tidy rooms
13. Existence of swimming pool, sauna and Jacuzzi
14. Internet accessibility in hotel rooms
15. Praying room, Koran, etc
16. Offering qualified food

21. QFD : Result & Conclusion

22. QFD : Result & Conclusion

23. Thank You!!