Chapter One

Introduction to Hospitality Industry

1.1 Hospitality
The term hospitality is derived from the French word “hospice” which means ‘taking care of those
traveling’. To most people, the hospitality industry consists only of hotels and restaurants.
However, the Oxford English Dictionary defines hospitality as the ‘reception and entertainment of
guests, visitors or strangers with liberality (kindness) and good will’. Therefore, the hospitality
industry can be broadly defined as the collection of businesses providing accommodation and/or
food and beverage to people who are away from home. In other words, the hospitality industry
includes not only famous hotels or restaurants, but also a wide range of businesses, such as small
guest houses, snack bars and fast-food outlets.

The hospitality industry is part of a larger enterprise known as the travel and tourism industry. It is
one of the oldest industries in the world. In early days, traders, explorers, missionaries and
pilgrims needed a break in their journeys requiring food, shelter and rest. People opened their
homes and kitchens to these weary travelers, and an industry was born. Although accommodation
today is varied and their services have changed and expanded over the ages, one thing about the
hospitality industry has remained the same, guests are always welcome! From a friendly greeting
at the door, room service, breakfast, to a host of facilities' the hospitality industry offers travelers a
home away from home.

Hospitality is also an industry made up of businesses that provide lodging, food and other services
to travelers. The main components of this industry are hotels, motels, inns, resorts and restaurants.
In a broad sense, the hospitality industry might refer to any group engaged in tourism,
entertainment, transportation or lodging including cruise lines, airlines, railways, car rental
companies and tour operators. However the two main segments of the hospitality industry are the
lodging industry (also called hotel industry), and the food and beverage industry (also called
restaurant industry).

Introduction to Hotel Operations 1

Nature of the Hospitality Industry

The hospitality industry provides services for people who are away from home regardless of
whether it is for long or short period of time. These services can vary according to the specific
needs of both the person away from home and the organization operating those services. For
example, the needs of a person in a residential hotel differ dramatically from those of an executive
business person in a deluxe hotel. Similarly, a student staying in a hall of residence would expect
to be treated and accommodated differently from someone on a cruise-liner. Therefore, it is
important that staff in the hospitality industry must be able to identify the various needs of their
customers and be able to act and provide the services expected.

1.2 Historical background of the Hotel Industry

The past, present, and perhaps the future of the hotel industry are closely linked. Today's industry
is the result of centuries of social and cultural evolution. Comfortable, sanitary lodging was once
considered only the privilege of the wealthy, but with the industrial revolution and the spread of
democracy, hospitality is not a luxury anymore and now has become available to the common
man. Advances in transportation, enable people to travel greater distances faster and at less cost,
paving the way for the tourism industry to flourish. From very modest origins, the hospitality and
the tourism industries have become the two of the largest industries globally. A world without
accommodation is indispensable in modern day life. Today the lodging industry is complex and
diverse. To understand this, we will trace the history of hotels, from the inns of ancient times to
modern luxury hotels, whose evolution has influenced as well has been influenced by, social,
economic and cultural changes in society.

Taverns or Inns

The earliest hotels were called taverns or inns. They go back thousands of years, for as long as
people have started traveling. The Hebrew word for an inn is malon and means a resting place for
the night. The Greek word for inn is kataluma and means an eating room or guest meeting room.
A malon did not have to be in a building, it could be a level piece of ground near a spring where
baggage could be unloaded, animals could be watered, and people could rest on the ground.

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Caravanserais

When large camel caravans would cross the deserts in Asia, there were hotels called
caravanserais at which travelers rested and slept. Caravanserais were established along the more
traveled routes as travel spread throughout the East. They usually consisted of a large building
constructed around a courtyard. The lower floor was used to store goods and to provide stalls for
the cattle. Usually there was a well or large reservoir nearby. At times, bazaars and markets were
held at or near the caravanserais. In those days of travel, the innkeeper provided very little for the
traveler’s comfort.

Inns in middle ages

During the middle ages, there were few inns or hotels except in the cities. The church or the Lord
of the Manor often established special guest offices for pilgrims and other travelers. As roads were
built and horse drawn stagecoaches began to carry passengers between towns and cities, inns were
built at a point where the coaches stopped. The inns in the villages or at crossroads had limited and
rough accommodations, seldom more than a common dormitory.

Inns in the Fifteenth Century

The fifteenth century brought about fresh importance for the inn. A new merchant class began to
emerge due to an increase in trade. This meant more traveling was necessary; therefore a demand
for more and better inns was created. Most travel was still primarily by horseback, but toward the
end of the 15th century, more comfortable wheeled carriages came into use.

The roads were rough and difficult to travel-muddy in the spring, hot and dusty in the summer,
and often impassable (closed) in the winter.

During the fifteenth century, many monasteries closed their guesthouses, thus creating a need for
more lodgings. The inn also began to perform a definite function in the social life of the people in
the area, as well as the traveler.

Inns in the Sixteenth Century

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The inns of the sixteenth century changed little from earlier times, although they were large and
somewhat spacious. Accommodation has improved greatly, for now a guest could often have a
private bedroom furnished with heavily carved oak furniture.
The ground floor consisted of a large hall called the par lour, which was used as a reception room
as well as a place to serve meals. The upper floor was used for the guest rooms.

Inns in the Eighteenth Century

With more regular business, the innkeeper realized the importance of their inns and tried to offer
more comforts to the weary traveler; they had better furnished rooms, a generous supply of food
and drink, waiters and serving maids eager to please the guests, and large stables for the horses.
Not only would the public stagecoaches be found stopping at the inns, but also the private coaches
of the wealthy. There was a large increase in the volume of coach travel in the eighteenth century.
Tollgates were set up on some roads to provide funds to repair and improve roads and bridge
better roads and more comfortable coaches made travel much faster, comfortable and more
appealing to a greater number of people. Travelers found that most of the innkeepers greeted them
with a smile, and were given good meals. If the stop was overnight, the inn offered an ideal
comfortable bedroom that was neatly furnished usually with a four-poster bed, washing table
mirror etc. The inns that could not meet the traveler's need, either through the mismanagement or
just plain rudeness, did not stay in business for long. As travelers from Europe ventured across the
Atlantic to America, inns were built in towns and villages and along the roadside. They became
gathering places for not only the traveler but also the local inhabitants. The inn was a place where
people could refresh themselves after work or hold evening meetings and share the events of the
day.

Emergence of Hotels

The past one hundred years have brought about dramatic changes in modes of transportation, as
well as in lodging accommodations. People from all walks of life started to travel. As travel
increased, the train services were launched and became more comfortable and faster. This was the
time when the roadside inns started losing business as more people started to travel by train rather
than coach. Many inns had to close while others were able to remain open by catering more to the
local people. Some inns became strictly taverns or coffeehouses. Some of these still exist today.
London has a larger number of the old taverns than any other large city in the world. They have

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changed with the times in order to survive and are the pubs that we know today. Traveling by train
brought the traveler into the heart of a town or city. Many hotels were built near railroad stations
for the convenience of passengers. This was the beginning of hotels, as we know of them.
Many hotels that opened in the mid-to late-1800s are still as popular as they were when they first
opened.
Hotel as a Service Provider in the Modern Day

Gone are the days when people looked upon a hotel for a bed and food. Now it provides almost
everything that a guest needs. Hotels have become service providers for the guests in all possible
ways. Competition has set into providing these services in order to woo th e guests. Every big
hotel chain / group has been spending core of rupees in order to stay in this race. Different services
are rendered by the hotels, viz. Banquets, convention centers, exhibition centers, restaurants,
catering service, secretarial services, corporate services, money changers, travel desk, butler
service, valet service, internet service, facility for sports and games, massage par lour, health club,
gym, shopping arcade, swimming pool, tourist limousines, airport service, etc.
These services are either wholly owned and run by the hotel, or owned by hotel and run on
franchise by experts in the field, or owned & run by outsiders but attached to the hotels. These
services complement each other and also help in improving the occupancy rate of the hotels.

1. Banquet Hotels provide wide range of banquet menus, for weddings, parties, business
gathering all of which help in improving food sales and also work in attracting new customers.

2. Convention Center: Meetings, seminars, conventions and other social gatherings are arranged
which in turn attract group bookings, good occupancy and food service.

3. Restaurant: Restaurants serving different specialty cuisine like Chinese, Korean, Italian,
Continental, Mexican, French are set up by hotels with the interiors suiting those places are run to
cater to the different tastes of domestic as well as international tourists. Catering services are also
undertaken at off-campus locations.

4. Secretarial Service: This is an essential service for corporate clients. The CEOs and
Chairpersons of different companies need this arrangement for expediting their notes, letters and
agreements, communications etc.

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5. Money Changers: Where there is high proportion of foreign tourists / visitors, there will be the
need of money changing service. Here the hotel exchanges the foreign currency for local currency.
However it cannot sell foreign currency. This service must function as per the country’s foreign
exchange rules and guidelines.
6. Travel Desk: Provides car rental services, air & train ticketing and looks after the other travel
needs of the guest. In some hotels Concierge looks after this service too.

7. Valet Service: It is also a personalized service, but limited to help at car parking and laundry
facility etc. in hotels.

8. Health Club and Sports and Games: This is provided not only in resort or leisure hotels but
also in down town & commercial hotels. The present corporate guest even though a busy person
wants some time out for himself for health and pleasure reasons. Health club, Spa, Gym,
Swimming pool, tennis court, and mini golf course are some of the popular facilities.

1.3 HOTELS
Hotels are Commercial establishment providing lodging, meals, and other guest services. It
provides paid lodging, usually on a short-term basis. Hotels often provide a number of additional
guest services such as a restaurant, laundry, a swimming pool or childcare. Some hotels have
conference services and meeting rooms and encourage groups to hold conventions, functions and
meetings at their location.

An establishment may be called as a hotel where its primary business is to provide lodging
facilities and which may include one or more of the various services such as food, beverage,
laundry, uniformed services etc to the general public. Hence, hotel can also be called as home but
with a vested interest which includes commercial activities. Hotels are found in almost all the
cities. Hotels operate twenty four hours a day, seven days a week. The principal factor that
determines the guest attitude towards a hotel is service although other amenities such as room,
food and beverages are of equal importance tangible determinants.

Definition of Hotel

Hotels are defined in numerous ways from early times to today. Some of the important definitions
for hotels are:

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Hotel is a place where all who conduct themselves properly, and who being able to pay and ready
to pay for their entertainment, are received, if there be accommodation for them, and who without
any stipulated engagement as to the duration of their stay or as to the rate of compensation, are
while there, supplied at a reasonable cost with their meals, lodging and other services and
attention as are necessarily incident to the use as a temporary home. Common Law

A hotel is an Establishment held out by the proprietor as offering food, drink and if so required,
sleeping accommodation, without special contract to any traveler presenting himself who appears
able and willing to pay a reasonable sum for the services and facilities provided and who is in a
fit state to be received. Hotel Proprietors Act, 1956

Building that provides lodging, meals, and other services to the traveling public on a commercial
basis. Encyclopedia Britannica

Importance of Hotels

1. Hotels play an important role in most countries by providing facilities for the transaction of
business, for meetings and conferences, for recreation and entertainment. In that sense hotels
are as essential to economies and societies as are adequate transport, communication and retail
distribution systems for various goods and services. Through their facilities, hotels contribute
to the total output of goods and services, which makes up the material well-being of nations
and communities.
2. In many areas hotels are important attractions for visitors who bring with them spending
power that the locals and who tend to spend at a higher rate than they do when they are at
home. Through spending by visitors hotels thus often contribute significantly to local
economies both directly and indirectly through the subsequent diffusion of the visitor
expenditure to the government coffers and to other recipients in the community.
3. In areas receiving foreign visitors, hotels are often important foreign currency earners and
in this way may contribute significantly to their countries’ balance of payments. In countries
with limited export possibilities, hotels may be one of the few prime sources of foreign
currency earnings.
4. Hotels are important employers of labor. Thousands of jobs are provided by hotels in the
many occupations that make up the hotel industries in most countries; many others in the
industry are self-employed and proprietors of smaller hotels.

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 The role of hotels as employers is particularly important in areas with few alternative sources
of employment, where they contribute to regional development.
5. Hotels are also important outlets for the products of other industries. In the building and
modernization of hotels, business is provided for the construction industry and related trades.
Equipment, furniture and furnishings are supplied to hotels by a wide range of manufacturers.
Food, drink and other consumables are among the most significant daily hotel purchases from
farmers, fishermen, food and drink suppliers, and from gas, electricity and water companies. In
addition to those engaged directly in hotels, much indirect employment is therefore generated
by hotels for those employed in industries supplying them.
6. Hotels are an important source of amenities for local residents. Its restaurants, bars and
other facilities often attract many local customers and many hotels have become social centers
of their communities.

o 1.4. The Relationship between hotel and Tourism

The hospitality industry is a part of a wider group of economic activities called travel and tourism
industry. Tourism refers to a collection of industries providing necessary and essential services to
the traveling public. These services may include:

F Transportation (e.g. car rental and travel agents)

F Specialist shops (e.g. gift shops, souvenir shops, shops selling local products)
F Food and beverage operations (e.g. restaurants, bars and fast food outlets)
F Accommodation (e.g. hotels, guest houses, conference and exhibition venues)
F Leisure activities (e.g. sports events and festivals)

In the presence of tourism, always there is a hotel to provide accommodation and food and
beverage service for tourists. So hotel and tourism are sides of a coin which are inseparable.

Tourism is important to the economic development of many parts of the world, in some regions;
income from tourism is one of the main sources of foreign exchange. Tourism is important
because it contributes to the growth of an economy by:
 Providing a lot of employment opportunities for local people. This could be in the form
of lodging employees, who cater for those travelers staying in hotels, motels and guest
houses, tour operator, transportation staff, e.g. airline caterers and crews, rail and coach
operators, as well as restaurant an fast-food outlets and retail shops.

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  Funding a large percentage of a country’s gross domestic product (GDP), thereby
helping to raise the national income. The GDP is the name of the total monetary value
given to all of the goods and services produced by a country over a set period of time. A
health tourism industry helps to increase the volume of sales of these goods and services.
This in turn helps to raise the country’s national income and as a consequence helps to
lower unemployment and inflation.

 Earning foreign currency through the goods and services provide to foreign visitors,
thus improving the balance of payments. The currency of a foreign country is often needed
for the buying of goods imported from foreign countries.

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 Chapter Two
Classification of Hotels

Introduction

The concept and the format of hotel have changed a great deal over the years. There are different
types of hotels ranging from international hotels to resort hotels catering to the increasing and
diversified demand of the clients. The size, the facade, architectural features and the facilities and
amenities provided differ from one establishment to another. In addition, the landscape in a particular
destination area also greatly influenced the architectural features of a hotel.

Development in the field of transportation, communication and increase in population had effect on
the growth, type and location of hotels and supplementary accommodation. Today, we find many
hotels and catering establishments of varied character, size and nature operating in different cities and
tourist centers. Classification of these hotels and supplementary units within the industry is a
complicated task.

Hotels are of various types depending on number of factors like the nature and facilities offered, size,
location etc. Classification in the real sense separates accommodation into different categories or
class on the basis of objective criteria, for example, by the type of accommodation, such as hotels,
motels, tourist lodges, holiday camps etc. It seeks to present information about tourist
accommodation units in a form, which enables the user to find information he requires. Information
thus obtained will help to compare with identical classification and thus, separates accommodation
according to physical features.

In a system of classification, hotels are ideally grouped into reasonably homogenous sections
according to their important general characteristics. Any classification of the industry into its
component sections is bound to be rough one as has been observed that hotels and catering services
are in joint demand. Therefore, an attempt is made here to create such groups of undertakings which
only share some common characteristics.

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Hotel is an establishment selling service: food, drink and shelter. The value and the potentiality of a
hotel are assessed by the size, location, number of rooms and other revenue earning points it
possesses. The classification of hotels within the industry is a complicated task. Hotels can be
classified in to different groups on the basis of the following factors.

Classification according to location Hotels can be classified according to their location or where
they are situated. The followings are the types of hotels according to their locations.

A. Suburban hotels: these types of hotels are situated away from the city or town. The aim is to
keep it away from the hustle and bustle, chaos and confusions of the town. Guests who choose
to stay here are mainly those who want to be away from the city environment for few days.

B. Downtown hotels/Business hotels: these are types of hotels which are situated in the heart or
center of the city/town. Generally people who stay in such types of hotels are those who come
for some work in the city, such as for marketing. These hotels are also called as city hotels.

C. Motels: these types of hotels are situated on the highways (main roads). Motels are designed
to serve the needs of motorists. They must provide car parking, garage, accommodation, rest
facilities and recreational facilities and hence motels are generally equipped with filling
stations, motor garage, service stations, accessories, elevator service to automobile entrants,
restaurants etc. The tariff is very low as compared to city hotels. They have easy access from
highways, being located on highways or at road junctions. Motel accommodation is ranked
with hotels in general in many countries. The length of stay in these types of hotels is usually
short period and their frequent customers are travelers who passed through.

D. Resorts: Resorts are hotels located in a desirable vacation spot such as beachfront, lakeside,
mountain side, or on a golf course. They offer fine dining, exceptional service, activities
unavailable at most other properties, and many amenities. Resort is a place used for relaxation
or recreation. As a result, people tend to seek out a resort for holidays or vacations. Generally,
a resort is an establishment, which attempts to provide for all or most a vacationer’s wants
while staying there, such as food, drink, lodging, sports, entertainment, and shopping. Towns

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 that contain resorts or where tourism or vacationing is a major part of the local activity are
often called resort towns.

E. Floatels: these are floating hotels and situated on the surface of the water such as sea, lake etc.
Such hotels provide exclusive and exotic atmosphere. All the facilities of a first class hotel are
there in this category of hotels. In many countries old luxury ships have been converted into
floating hotels.
F. Airport hotels (Airtel): These hotels are situated near the airports. The location of airports far
away from cities, the growth of the airline industry, the increase in air traffic and the
postponement or cancellation of flights has made the airlines companies responsible to take
care of hundreds of transit passengers and built the hotels near the airports. These hotels get
business from other travelers who require a place to rest while waiting for connecting flights.
Many travelers prefer to arrive at the airport the night before and get a good night rest at these
airport hotels. In addition to room, restaurant facilities, coffee shop and main dining room,
most hotels have added banquet and meeting rooms to attract the social functions and meetings
from companies located nearby, in order to run their business profitably. In most of the big
cities these hotels are favorite location for area meetings, as it a result in saving in taxi fares
and times. These hotels are generally dependent on airline passengers and airline crews.

Classification According to Size: on the basis of their size hotels can be classified as small,
medium, large and very large hotels.

A. Small hotels: are hotels with less than 100 rooms.

B. Medium hotels: are hotels with rooms between 100 and 200.
C. Large hotels: are hotels with rooms between 201 and 300.
D. Very large hotels: are hotels with above 300 rooms.

Classification according to Facilities and Amenities: Based on the facilities and amenities
provided by a hotel, they are generally classified into five main types:

A. Economy / Limited Service Hotels - These types of hotels provide efficient, clean, private
rooms with attached bath. The furnishings and decor are moderate. Initially these hotels did
not have telephones or television in the rooms; but now most of them have it. Food and

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 beverage service may not be available, and bell attendants, door attendants and concierge
facilities are absent. To maintain these economy hotels, they are located on inexpensive real
estate areas and constructed at relatively low cost. Operating costs are kept low by eliminating
food and beverage service and employing minimum staff to service the guests.
B. Mid-Market Hotels - The modem mid-market hotel is a descendant of the first commercial
hotel, offering comfortable accommodation with private baths, on-premises food and beverage
service and uniformed bell staff.
These hotels, also called standard or tourist class hotels, offer above average luxury and
comfort, professionally designed decor and may also have scenic views or advantageous
locations.
C. All-suite Hotels - The all-suite hotel was invented to compete with first-class hotels by
offering above-average facilities at mid-market rates. A typical all suite hotel offers separate
sleeping and living areas, along with other benefits like a kitchenette and a stocked bar. Some
hotels offer food and beverage service and employ bell staff. A variation of the all-suite hotel,
the condominium hotel is a fully equipped apartment complex that rents accommodations for a
short period. A typical condominium hotel is located in a resort area and marketed as an
alternative to full-service hotels.
D. First-Class or Executive Hotels - A typical first-class hotel is luxurious or semi-luxurious,
with exceptional comfort and decor, highly trained staff and above average food and
beverages. These hotels are also referred to as executive or superior hotels, often having
luxury suites, two or more dining rooms and a cocktail lounge. Many accommodations have
excellent views, refrigerators and fully stocked bars.
E. Luxury or Deluxe Hotels - These hotels represent the highest standard of excellence in the
level of luxury and comfort, cleanliness and efficiency, staff specialization, competence and
courtesy, diversity and quality of food and beverage service. A typical deluxe hotel has two or
more dining rooms, usually a gourmet-style dining room, and a family style restaurant. Most
of these hotels have excellent views, location and ambience. Some hotels offering a very high
level of luxury are referred as grand-deluxe.

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Classification according to Ownership and Management

A. Independent Hotels– These hotels are on ownership basis and do not have any affiliation or
contract through any other property. And also they do not have any tie-up with any other
hotels with regards to policy, procedures and financial obligations. The advantage in this type
of hotel is that they need not maintain a particular image and they are not bound to maintain
any set targets, but can independently adapt quickly to the changing trends.
B. Chain / Group Hotels - There are many single owner hotels, yet more and more hotels and
motels are now getting affiliated to each other. This gives them the advantage of a large central
organization providing reservation system, management services, financial strength, expertise,
manpower specialties, merchandises and promotional help.
C. Management Contractual Hotel – is another type of chain organization which manages
properties owned by other individuals or partners. The contract is entered on long term basis
between the owner and the operator and usually as per the contract: for instance; owner retains
the legal and financial responsibilities, operator pays for the operating expenses and collects
from the owner an agreed upon fees, owner is responsible for paying taxes, insurance and
servicing debt.

Classification according to Types of Plan

A. European Plan - In this case only the lodging i.e. bed is offered. Thus the charges are made
for lodging only. The guest is free to take or not to take teas, breakfast, and meals in the hotel.
He has a choice of eating out at any other good restaurant. The guest is booked to pay for
lodging only and is charged separately for all other things or services he enjoys or consumes.
This system is generally followed by hotels which are situated in metropolitan cities. Almost
all the public sector hotels are run on this basis.
B. Continental Plan - In the case of continental plan, bed and breakfast are included in the tariff
charges. Thus bed is offered along with breakfast and the guest is, however, free to take his
meal and tea as he likes. Thus the guest tariff includes lodging and ‘bed and breakfast’ and for
other he is separately billed.

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 C. American Plan: Hotel where American plan is prevalent, boarding and lodging is provided in
the charge. The tariff fixed includes board and lodging. It is an all inclusive full board tariff.
Accommodation and three meals daily are included in the price of the room.
It includes bed, breakfast and two principal meals and evening tea. It does not include evening
and morning tea or coffee after lunch, or dinner. The needs are usually 'table d'hote menu'. It is
also known as 'full pension'. This analysis is mostly used at those tourist resorts, which are not
situated in big cities.
D. Modified American Plan - The tourists mostly prefer this plan, as it is comparatively more
flexible. It is offered in most of the good hotels and is normally by arrangement. It includes
hotel accommodation, breakfast and either lunch or dinner in the price of the room. Thus, in
this type of accommodation bed and breakfast and along with it one principal meal, lunch or
dinner at the discretion of the guest is also included. It generally includes continental breakfast
and either 'table d’hôte lunch or dinner in the room rates. It is also known as 'demi-pension'. It
has been observed that the Indian style local hotels in India follow the European plan.
However, and the western style hotels operating in India which cater the foreign tourists,
operates on the American plan.
2.6. Star Category: There are five categories that are expressed in stars (   
 etc). The first star is the basis. Every additional star means that a hotel offers more
facilities and services. The criterion used to grade hotels is different from one country to another.
Once it is definitely classified the hotel receives a dark red shield with the number of stars. This
shield will be clearly visible next to the hotel's front entrance. To safeguard the quality of a hotel, the
hotels are periodically tested.

Classification according to Guest’s Length of Stay

A. Residential Hotels - Residential hotels are also called as apartment hotels or apartment house.
Room in a residential hotel is sold on a monthly or yearly basis. Rooms may be furnished or
unfurnished, single or suite. Almost all residential hotels operate a restaurant, offer telephone
service, laundry and valet service. Advance rents are usually collected while other charges are
billed weekly. These types of hotels normally operate on European plan. Recent developments
in this area include cooperative hotels and condominiums in which the tenant own the
apartment and pay the management a fee for maintenance.

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 B. Semi-residential Hotels - These hotels provide accommodation to guests on weekly or
monthly basis like residential hotels as well as on per day basis like transient hotels.
Reduced rates are provided to long staying guests. Transient guests who want to take
advantage of reduced rates for longer stay also come to such establishments.
C. Transient / Transit Hotels - Hotel guests who fall under the category of transient guests are
those who are en route guests i.e. who are in the process of moving from one destination to
another and stop at the hotel for a short period of time as against a terminal guest who has
reached his final destination. Hence hotels, which cater to a transient / transit guest, are called
transient hotels. They find their origin in olden days inns. Examples of transient hotels are
motels, airport hotels, hotels located around railway terminals and ports.

Classification according to Guest’s Purpose of Visit: based on the guest’s purpose of visit hotels
can be classified in to three groups as follows;

A. Commercial Hotels: These are hotels which offer drink and accommodation to traveling
business people. E.g. Downtown hotels, motels….. …
B. Tourist Hotels: These are hotels which offer services to people who are traveling for pleasure.
E.g. Suburban hotels

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 Chapter Three
Hotel Organization
3.1 Introduction
In order to carry out its mission, global and departmental goals and objectives, every company shall
build a formal structure depicting different hierarchy of management, supervision, and employee
(staff) levels. This very structure is referred to as organization chart. Moreover, the organization chart
shows reporting relationships, span of management and staff/line functions. The organizational chart
enables the manager to know the positions of staff with in the hotel, as well as who is responsible for
whom. It also gives employees a clear picture of who is their “boss”.
It shows where and how each department fits in to the overall organization of a hotel. Because of its
complexity organizational structure will vary according to size and style of operation. There are two
types of relationships that might exist between any two functions at any organization chart. These
are:
1. Solid Lines: (_________) this kind of relationship shows Direct Line Accountability. To
illustrate, if position A and B are linked with a solid line, it means (for example) that A shall
report to B, that B shall tell A what to do, when to do, and how to it. Lastly, B shall be liable
(i.e. responsible) for A.
2. Dotted Lines: (- - - - - - -) this kind of relationship entitles both positions linked with dotted
lines to have a high degree of Cooperation and Communication but not direct line
accountability. Usually in the hotel industry, where the sole aim is to satisfy guests, positions,
whatsoever level in the hierarchy they occupy, shall coordinate jointly their efforts so as to
provide quality, standard product to their customers. Therefore, examples of dotted lines are
numerous in hotel organization charts.
Every organization chart shall be flexible, to reflect the ever-changing environmental dynamics and,
hence be able to survive. In accordance, organization charts shall be reviewed periodically in order to
determine whether the actual organization still match the environment needs (i.e. guests, employees,
technology, competitor's needs…) or not. A SWOT analysis (i.e.: Strengths, Weaknesses,
Opportunities, and Threats) shall be a good start to initiate a change in the organization chart or not.
Last but not least, it is of extreme importance that there are no two hotels having exactly the same

Introduction to Hotel Operations 17

organization chart, and that a hotel might have an organization chart change over time. For,
organization charts shall be tailored to fit the needs of each individual property. 
3.1 Mission

An organization's mission is its reason for existence. It speaks to the questions: Why does this
organization exist? Whom does it serve? By what means does it serve them?
Those seeking to learn the mission of an organization often find they are dealing with two entities:
that which is written down (the mission statement) and that which is conceived by organization
members. 

The mission statement is the written expression of the basic goals, characteristics, values, and
philosophy that shape the organization and give it purpose. It seeks to distinguish the organization
from others by articulating its scope of activities, its products/services and market, and the significant
technologies and approaches it uses to meet its goals. By expressing the organization's ultimate aims
— essentially, what it values most — the mission statement provides members with a sense of shared
purpose and direction. The long-term goals enshrined within it serve to inspire the organization's
strategic planning and major activities. These goals also form the basis for evaluating organizational
performance. 
Besides the organizational mission that is formally written down is the perceived organizational
mission. Often the latter does not correspond to the stated mission, being out-of-date or even
misconstrued. But the perceived mission is nonetheless a powerful behavioral driver for those in the
organization. One task of an organizational assessment is to assess the degree to which the formal
mission statement is understood and has been internalized by members of the organization, i.e. the
congruence of perceived and stated missions.

Mission as a goal
Not long ago, it was common for mission statements to gather dust on the shelf. They were largely
symbolic documents and seldom referred to. More and more, however, organizations have realized
the importance of making the mission statement a "living statement." When formulated and used
strategically, a mission statement is a powerful tool which communicates the organization's
fundamental verities to internal and external stakeholders. Used in this way, the mission statement
becomes a driving force of the organization and a yardstick for measuring its accomplishments.
Here are some basic guidelines in writing a mission statement: 

Introduction to Hotel Operations 18

 F A mission statement should say who your company is, what you do, what you stand for and
why you do it.
F An effective mission statement is best developed with input by all the members of an
organization.
F The best mission statements tend to be 3-4 sentences long.
F Avoid saying how great you are, what great quality and what great service you provide.
Examine other company's mission statements, but make certain your statement is you and not
some other company. That is why you should not copy a statement. 
F Make sure you actually believe in your mission statement, if you don't, it's a lie, and your
customers will soon realize it.

Why do some Mission Statements seem to fail, becoming nothing more than a wall ornament? 

For the most part, the reasons for failure are the same reasons why many organizations do not find
great success in balanced scorecards, reengineering, job enrichment, empowerment, and a score of
other fads that are highly effective for some, weak for others, pointless for others. Those reasons are:

F Fuzzy, nonspecific language 

F Interchangeable goals or visions that can be adopted by any company if only a few words are
changed
F Lack of true, prolonged leadership support - in action more than in words 
F Poor implementation 

A useful mission statement is very brief, understood by everyone, specific, and actionable in that you
can use it to make decisions. A normal mission statement is vague and covers all the bases. But few
companies can be the best in research and development (innovative product), quality, cost, and
marketing. Most important, a good mission statement is the credo of the organization's leaders. If the
leaders make decisions on a daily basis that reflect the vision and methods in the mission statement,
others will eventually follow. Making a concerted effort through training of new and existing
employees, measurement via survey or interview, and willingness to adjust parts of the statement as
needed, will go a long way towards making a mission statement an effective tool. However, be
warned that implementing and sticking to a mission and vision is a long term effort. 

Introduction to Hotel Operations 19

 F At the formation stage of a company, establishers shall come together to discuss the broad
guidelines that the company will follow in the future. This is called preparing the mission
statement.
F A mission is the unique purpose that sets one hotel or motel company apart from others.
Moreover, the mission statement gives meanings and directions to hotel policies. In fact, when
faced with any problem, confusion, or strategic decision to be taken, managers shall, always,
make sure that their decisions match the mission statement. In addition, the mission statement
shall be general and broad. For, if mission were specific, and numerical, it would be
impossible to apply it at any future circumstance. Lastly, the mission statement shall reflect the
interests of the agents interacting in the hotel industry named:
1. Guest: Guest(s) constitute one of the most important agents in the hotel industry. For, no
guests means no accommodation sector.
2. Employee: A hotel with no employees means simply that guests would not be welcomed,
registered, assisted for whatsoever specific needs they have…That's why, employees are a
primordial agent in the hotel industry
3. Management & Owners: A hotel with no managers resembles to an army without generals.
Moreover, to have a hotel, investors shall poor some amount of money to build it, refurnish it,
and operate it.
Therefore, the mission statement should tell how it is going to satisfy all the above mentioned agents
so that they continue acting in the hotel industry. An illustration of a mission statement is given
below:
“The mission of our hotel is to provide outstanding lodging facilities and services to our guests. Our
hotel focuses on individual business and leisure travel, as well as travel associated with group
meetings. We emphasize high quality standards in our Rooms and Food & Beverage divisions. We
provide a fair return on investment for our owners and recognize that this cannot be done without
well-trained, motivated, and enthusiastic employees.”

3.2 Goals

After the preparation of the mission statement, at least prior to any financial year, managers shall,
bearing in mind the company's mission statement, come up with company's global objectives, and

Introduction to Hotel Operations 20

then break them down to departmental goals and objectives. By definition, goals are those activities
and standards an organization must successfully perform or achieve to effectively carry out its
mission. Moreover, goals shall be:
A. Specific & numerical
B. Observable
C. Measurable
If objectives were general and non-quantifiable, then, it would be impossible at the end of a certain
period of time to see whether company actual results match with the planned objectives or not.
3.3 Strategies and Tactics

After determining departmental goals and objectives, department heads and/or managers shall design
the best methods their respective departments or divisions shall use to achieve its goals. These
methods are referred to as strategies.

Later, department heads shall move one further step, as to break down each strategy to tactics (i.e.
day to day methods to reach the strategies). An illustration, to one of the Front Office department
goal (a registration-related goal), a strategy to reach it and a related tactic is given below:
Goal: Operate the front desk efficiently and courteously so that guests register within 2 minutes of
arrival.
Strategy: Pre-register guests with reservation guarantees as room become available from the
housekeeping.
Tactic: Pre-print registration cards for arriving guests and separate the cards of all gusts with a
reservation guarantee.
It is of extreme importance that managers shall continuously control and evaluate their strategies and
tactics, and hence revise them (if necessary) so that department goals and objectives are reached fully
at the end of the planned period.
3.4 Management Structure of a Hotel
The management structure of a hotel comprises all positions of responsibility and authority below the
level of corporate management. In general the positions at the top of management tree, ‘executive’,
and including department ‘heads (A)’, are considered to be part of the management structure of a
hotel. Department heads (B) are involved in the management of their departments but to a lesser

Introduction to Hotel Operations 21

extent. They are normally responsible for the discipline and welfare of their staff and for carrying out
any instructions given to them.
As with the room division of a hotel, the number and type of management staff required depends on
the size of the hotel and its particular arrangement of operations, or management style. In a small
hotel the manager may be responsible for almost every aspect of the operation (e.g. the planning of
budgets, recruitment of staff and ordering of goods). As the hotel increases in size and facilities, the
management structure also increases in its complexity.
3.5 Major Departments of a Hotel and their Responsibilities
There are two approaches to classify departments in typical hotels:
A. Revenue Generating versus support/Cost Centers: The first approach is trying to
differentiate between departments revenue-wise. In fact, this approach entitles that if a
department generates revenue to the hotel (ex. Rooms Division Department, F&B
Department…), it is called a revenue generator. On the other hands, if a department incurs
costs without directly contributing to hotel profitability, it is called a cost or support center (ex.
Accounting Department, Maintenance and Engineering Department…).
B. Front of the House versus Back of House: This approach classifies departments according to
department staff's frequency of communication with guests. If communication between staff
and guest is frequent (ex. Front Office Department), then the department is said to be a front of
the house department.
C. On the other hand, if the communication between department staff and guests in non-existent
or on occasions, then the department is said to be back of the house department.
1. Rooms Division:
In a statistics conducted by the U.S. Lodging Industry in 1995, it has been shown that the majority of
hotels revenues (60.2 %) is generated from Rooms Division Department under the form of room
sales. This division comprises two major departments.
1.1 Front Office Department

It is the most visible department of a hotel. The main function of this department is to give warm
welcome to the guest. It helps to create good image in front of the guest. This is the first department
where a guest comes to contact with. It generates the maximum revenue for the hotel as it sells room

Introduction to Hotel Operations 22

to guests. This department includes sub departments like reception, reservation, telephone operator,
mail and information desk etc.

A. Reception
F Sell guestrooms; register guests and design guestrooms
F Coordinate guest services
F Provide information
F Maintain accurate room statistics, and room key inventories
F Maintain guest account statements and complete proper financial settlements
B. Reservation
F Receive and process reservation requests for future overnight accommodations.
F With technology development, the Reservation Department can, on real time, access the
number and types of rooms available, various room rates, and furnishings, along with the
various facilities existing in the hotel
F There should be close relation-ships with Sales and Marketing Division concerning Large
Group Reservations
C. Uniformed Services
F Bell Attendants: Ensure baggage service between the lobby area and guestrooms
F Door Attendants: Ensure baggage service and traffic control at hotel entrance(s)
F Valet Parking Attendants: Ensure parking services for guest’s automobiles
F Transportation Personnel: Ensure transportation services for guests from and to the hotel
F Concierge: Assists guests by making restaurant reservations, arranging for transportation,
and getting tickets for theater, sporting, or any other special events
D. Telephone Department
F Answers and distributes calls to the appropriate extensions, whether guest, employee, or
management extensions
F Places wake-up calls
F Monitors automated systems
F Coordinates emergency communications
F ‘Protects Guest Privacy‘

Introduction to Hotel Operations 23

1.2 Housekeeping Department
This department is responsible for cleaning maintaining hotel premises which include public area,
guestrooms, lobby, swimming pool, etc. generally this department is not visible to the guest. It works
for guest satisfaction through keeping the environment clean and hygiene.
F Inspects rooms before they are available for sale
F Cleans occupied and vacant rooms
F Communicates the status of guestrooms to the Front Office Department
F Cleans and presses the property’s linens, towels, and guest clothing (if equipped to do so, free
of charge or for a pre-determined fee)
F Maintains recycled and non-recycled inventory items

 2. Food & Beverage Division:

According to U.S. Lodging 1995 statistics, F&B Department constitutes the second largest revenue
generator of a typical hotel with an average of 23.1 for Food sales, and 8.6 % for Beverage sales. In a
five-star hotel, Food and Beverage outlets might have the following forms: Quick Service, Table
Service, Specialty Restaurants, Coffee Shops, Bars, Lounges, Clubs, Banquets (Catering Functions Þ
Wedding, Birthdays, party…) etc
2.1 Food and beverage service: this department deals with service of different food and beverage
items in attractive and pleasing manner which creates good impression on the guest. It is the
second most important revenue generating department. It provides this service through different
selling outlets like, bars, restaurant, lounges, room service, coffee shops…….
2.2 Food and beverage preparation: it prepares various food items. It makes the food attractive
and palatable using different cooking methods. It is not visible department to the gust because it
usually works in the back area.
3. Sales & Marketing Division:
A typical hotel should usually have Sales & Marketing division. However, if the staff size, volume
business, hotel size, expected group arrivals is low enough, the hotel might have marketing staff
placed under the reservation department (i.e. No need for a Sales & Marketing Division).
A typical Sales & Marketing Division is composed of four different departments:

Introduction to Hotel Operations 24

 A. Sales
B. Convention Services
C. Advertising
D. Public Relations
4. Accounting Division:
The Accounting Division monitors the financial activities of the property. Some of the activities that
are undertaken in the Accounting Division are listed below:
A. Pays outstanding invoices
B. Distributes unpaid statements
C. Collects amounts owed
D. Processes payroll
E. Accumulates operating data
F. Compiles financial reports
G. Makes bank deposits
H. Secures cash loans
I. Performs other control and processing functions
5. Engineering and Maintenance Division:

This very department maintains the property's structure and grounds as well as electrical and
mechanical equipment. Some hotels might have this very division under different names, such as
maintenance division, property operation and maintenance department…
 6. Security Division:

Security division personnel are usually screened from in-house personnel, security officers or retired
police officers, across certain physical skills, and prior experience.
Some of the functions of the security division are listed below:

A. Patrols the property

B. Monitors supervision equipment
C. Ensures safety and security of guests, visitors, and employees

7. Human Resources Division:

Some of the duties of the human resources division are listed below:

Introduction to Hotel Operations 25

 A. Responsible for external & internal recruitment
B. Calculates employees' salaries, compensation, and tax withholding…
C. Administrates employees' paperwork, monitors attendance…
D. Maintains good relations with Labor Unions
E. Ensures employees' safety and working conditions
8. Other Divisions:

All the above mentioned departments and/or divisions should exist in a typical five-star hotel;
however there might be some revenue generators that are specific to certain hotels but not existing in
others. Below is a list of some possible extra or other divisions that might exist in a hotel:
A. Retail Outlets (i.e.: Shops rented to outsiders or managed by the hotel)
B. Recreation Facilities (ex: Fitness Center, Tennis Courts, and Cinema Saloons…)
C. Conference Centers
D. Casinos

Introduction to Hotel Operations 26

 Chapter Four
Communication and Cooperation of Hotel Departments
4.1 Interaction between Housekeeping and Other Departments
Housekeeping department is just one department in any establishment working towards the
satisfaction of the guest, and each dept. is dependent on others for information and/service if its work
is to be done efficiently. During the course of the work, the Housekeeper comes into contact with
practically every other department and if her and that of her colleagues is to be unhindered, and the
establishment to run as smoothly    as possible, there must be close inter-department co- operation.
Depending on the type and the size of the house, the work in each of the other departments may be
small enough to be dealt with by an individual or so large that there is a head of department, but in all
cases, there must be good liaison and communication between all the departments. The following are
some of the departments with which there should be close co-operation. 
Front Office
Guestrooms in the lodging properties are sold by the front office. For this to be done efficiency there
must be a constant exchange of the information between the two departments and each must
understand the work and possible difficulties of the other. The housekeeper relies on the receptionist
to let her know on which days guests are arriving or leaving, when VIPs are expected, moves
required and when special requests have been  for cots, bed boards or baby sitters etc. in order that
guests’ special requirements may be anticipated and complaints avoided. It is also helpful in the
organization of the housekeeping dept. if she is told of group arrivals and late departures.
Other communication between the front office and the housekeeping involve information about room
occupancy forecast, early check –in of groups, the closing of certain sections for deep-cleaning or
repairs, delivery of guests’ laundry, lost and found items, special guests’ requests and so on. The
communication between the housekeeping department and the front office desk is greatly improved
when the property uses a computerized system.
For instance, when a guest checks out, the front office desk clerk enters the departure in the computer
and it appears instantly in the housekeeping monitor. When the housekeeper has rooms to be sold, the
information is entered in the system and it shows up quickly in the front desk terminal. Some of the
common abbreviations used by the housekeeper during room checks the following:
 SO = occupied (stay over)
 OOO = out of order

Introduction to Hotel Operations 27

  V     = vacant
 C/O = guest has (or will) check out today
 EA =early arrival today
 R    = ready room
 B = slept out (guest did not use the room but baggage is still in the Room)
 NB = occupied, no baggage
 DND=do-not- disturb sign on door
 LO= lock out (room has been locked by the management so that Guest cannot re-enter) 
Maintenance
In the course of the day the housekeeper finds many items requiring attention such as dripping taps,
WC cisterns not flushing, faulty electrical plugs, TV, radios, lights, heating, air conditioning and so
on. It is therefore important that good communication between the two departments exists at all
times. There are three types of maintenance performed by the maintenance department.
A. Regular Maintenance is performed when an item is broken and needs to be repaired. A work
order form is filled out by the housekeeping employees who forwards two copies to the
maintenance dept. and keep the duplicate filed until the work is done. When the work is
completed, one of the copies is returned to housekeeping for comparison, the work is inspected
and the rooms are cleaned.
B. Preventive maintenance is carried out at predetermined intervals or other prescribed criteria
and is intended to reduce the likelihood of an item not meeting an acceptable condition.
In most hotels, the housekeeper and the chief engineer cooperate in combining room cleaning
with preventive maintenance programs. It is important that guests staying in the property find
the rooms in perfect working condition.
C. Planned maintenance is an organized and carried out with a forethought control and the use
of records to a predetermined plan. Urgent repairs are normally reported to maintenance by
telephone and if a good relationship exists between the two departments, the urgent repair will
be dealt promptly.  
Maintenance checklist is used to perform maintenance inspections .The form contains a list of every
items that would be in need of repair. After the preventive maintenance inspection has been

Introduction to Hotel Operations 28

completed, a check mark will indicate that the standard of operations have been met, while an “x”
will indicate that the item in question is in need of repair. 
Food and Beverage Service

It is the second major revenue center after room division. In large hotels, the food and beverage
division comprises of kitchens, restaurants, coffee shops, bars, cafeterias lounges, banquets, catering
services and room service. In large hotels the housekeeping department is involved in the cleaning of
food and beverage service outlets. Cooperation is necessary where there is a floor waiter service .This
is in regarding to picking of room service materials from guestrooms. Housekeeping must see to it
that the halls and corridors are free from trays. The laundry room which sometimes works under the
housekeeping department must ensure that the food and beverage dept. is supplied with adequate
supply of linens. The laundry manger must request that the soiled linen be delivered to the laundry
room on time, properly sorted out and free from food debris. Furnishing clean uniforms to cooks,
waiters, and bartenders is also usually the responsibility of the housekeeping department.
Human Resources

Communication between the housekeeping department and human resources dept. is important when
it comes to staffing. When an employee is needed in the housekeeping dept. an employee requisition
is filled out and sent to human resources to initiate the process. The position is then advertised, pre-
screens the candidates, conducts the first interview and checks the references.
The final candidates are then sent to housekeeping for a second interview and section. Human
resource is usually involved in the orientation of the new housekeeping employees, and it is during
this time that the company’s philosophy, compensation package, pay schedule, rules and regulations
are explained to the worker in details. This dept. ensures that the new employee fills out all the
necessary forms related to legal residency, income tax and personal information. Good
communication with the human resources will result in hiring the right employee to fill housekeeping
vacancies.  

Accounting

Wage packets are made up from the information received from the housekeeping regarding hours
worked, holiday taken, days lost due sickness, overtime, bonuses awarded to workers etc. The
executive housekeeper must also provide accounting with monthly inventory information in order to
ascertain expenses of controllable goods and percentage 

Introduction to Hotel Operations 29

Sales and Marketing

The primary goal of the sales and marketing division is to sell the products and services offered by
the property. Cleanliness being one of the reasons for the guests to choice a particular lodging
property, the housekeeper must ensure that this is maintained. There must therefore be good
communication between sales and housekeeping if the customers’ satisfaction is to be achieved. For
instance, if sales and marketing has granted late check- out to a large group of guests attending a
convention without notifying housekeeping, some of the rooms might not be cleaned in time to be
available for the group. If the sales and marketing has promised that forty rooms will be available for
early check-in to a company attending a conference at the property and housekeeping has not been
notified, there might not be enough manpower to clean the rooms on time. Communication between
sales and housekeeping is also necessary when specific rooms or suites must be available for
inspection to meeting planners who are considering the property for a possible convention. If the
rooms in question have not been impeccably cleaned, the company executive might well take their
business elsewhere. 

Security

Co-operation here is mainly concerned with the prevention of fire and theft and the safe keeping of
keys and lost property. There are so many security hazards on the “floors” that liaison is particularly
important and the housekeeper co-operates by endeavoring to see that her staffs are aware of them
and by reporting anything of a suspicious nature. 
Food and beverage preparation
A happy atmosphere between the chef and the housekeeper makes one important aspects of staff
welfare, i.e. food, much less of a problem, as complaints may be discussed on a friendlier basis.

Introduction to Hotel Operations 30

 Chapter Five

The Accommodation Product and Hotel Guest

5.1 The Accommodation Product

As mentioned before, the sale of rooms is one of the main products to be provided by a hotel; it is
also very often the principal source of hotel revenue. It must be noted, however, that the
accommodation product consists of more than a room with bed. A guest purchasing accommodation
also receives other facilities and benefits, such as ambience, décor, and security. While all hotels
provide accommodation service for their guests, the type of facilities and benefits associated with that
service can often differ greatly, even within the same hotel. The accommodation product, therefore,
does not only consist of a guest-room but also the additional facilities and services which are
applicable to that room. For example, sea-view, mini-bar, in-house movies and room service. All
these services and facilities may be included in the accommodation product of a hotel.

Types of guest-rooms

To cater for the different needs of their customers, hotels usually provide a variety of accommodation
products. In other words, a hotel offers different guest rooms for sale, which may have different room
sizes, décor, views, facilities and services. Guest-rooms can be classified in a number of ways. For
example, one way is according to the number and size of beds in the room; others are by the décor,
the room size or the view.

Number and size of beds per room

Guest rooms can be classified according to the number and size of beds in the room. These are
commonly known as:
F Single rooms- rooms with single bed.
F Twin rooms – rooms with two single beds.
F Double rooms- rooms with one large bed
F Suite rooms- rooms with two distinct areas, one for sleeping and lounge area. Very often suites
have a king-size double bed.

The type of rooms according to number and size of beds in the room are illustrated below;

Introduction to Hotel Operations 31

 Types of rooms Number of beds per Size of bed Number of people per
room room
Single 1 3′0″ 1
Twin 2 3′0″ 2
Double 1 4′6″ 2
Queen 1 5′0″ 2
King 1 6′0″ 2

Décor, room size and view

Hotel guest-rooms may be grouped in to standard, superior or deluxe rooms according to their décor,
i.e. the furniture as well as by size and situation. Category of guest-rooms by these criteria is as
follows:

Type of room Size (m2) View Décor

Standard single 23.5 Town view Pine furniture
Superior single 23.5 Sea view Pine furniture
Deluxe single 25.5 Sea view Rosewood furniture
Deluxe double 28.5 Sea view Rosewood furniture
Suite 105.9 Sea view Antique furniture

Some hotels have guest-rooms which are connected to each other. This means that two or more
rooms are joined together by a private inter-leading door, which permits access between the rooms
without passing through a public corridor. These rooms are particularly popular with families.

4.2 Types of hotel guests

In general hotel guests can be classified according to: their purpose of visit (pleasure or business
travelers); number (independent or group travelers); and their origin (local or foreign/overseas
travelers)

Purpose of visit

Introduction to Hotel Operations 32

Pleasure travelers (otherwise known as tourists) are people who travel for pleasure (e.g. sightseeing
or entertainment). Their arrivals are highly seasonal and are attracted by special festivals, sports or
other cultural events. Pleasure travelers are generally price sensitive. Their personal income is an
important factor in determining their particular needs. Pleasure travelers may include:

F Domestic Tourists – local people who stay at a hotel for weekends, special functions and
activities.
F Foreign Independent Travelers (FITs) – international tourists who make their own travel
arrangements and purchase their accommodation independently. This type of guests are not
usually looking for an accommodation package (i.e. full board or half board) ; they normally
require accommodation only.
F Group Inclusive Tours (GITs) – groups of tourists who travel together on package tours.
Their expenditure is very often lower because they tend to budget their spending allowance.
Accommodation sometimes and meals are usually booked well in advance, by the tour agency.
F Special Interest Tours (SITs) – groups of people who visit a place once, usually with a
special interest in mind (e.g. the castles of Europe, the game parks of Africa).

Business travelers: are people who travel for the sole purpose of conducting business. Business
travelers are the largest sources of demanding accommodation. This demand exists all the year round
with the exception of public holiday, but can also decrease during summer holiday months. Business
travelers often require accommodation at short notice and for this reason, they prefer to establish
close ties with a particular hotel so that they can use the accommodation service on a regular basis
and not be inconvenienced by lengthy reservation procedures.

Group size

Independent traveler: an independent traveler is someone travels alone, for either business or
pleasure. Whatever the purpose, the guest travels independently and for this reason unlike groups a
set time table is not normally followed.

Group travelers- a group booking tends to be seen as a booking in which five or more people travel
together, or when 10 or more rooms are pre-booked. The booking is normally done through a travel
agent and is paid in full to the travel agent before the group embarks on the tour.
The traveler agent acts as a representative of the guest and usually receives a commission of some
10% of the cost of the accommodation from the hotel.

Introduction to Hotel Operations 33

Origin

Travelers may generally be divided in to local or foreign travelers. This means that any hotel resident
whose permanent address is in the same country as the hotel is deemed to be a local traveler. Anyone
whose home is in another country will be classified as a foreign or overseas traveler.

Length of stay: By their length of stay guests can be classified as transit and resident guests.
Transits- are guests who stay in a hotel for a night.
Resident guests- are guests who stay in a hotel more than one night.

Chapter Six
Hotel Terminologies

Introduction to Hotel Operations 34

 Service Charge: A charge levied by some larger establishments on behalf of the staff in return
for their superior service rendered to guests.
 Facilities: Core physical features: accommodation, restaurants, bars, and meeting rooms.
 Franchise: The right to market a service and/or product often exclusive for a specified area, as
granted by the manufacturer, developer or distributor in return for a fee: prevalent in the fast
food industry but increasingly adopted within the hotel community.
 Guest Account: An itemized record of a guest's charges and credits which is maintained in the
front office until departure. Also referred to as a guest bill, guest folio, and/or guest statement.
 Guest History: A record maintained for each guest who has stayed at the hotel with a separate
entry for each visit and details of pertinent preferences. This is a valuable reference tool for
reservations, marketing, and credit departments. Guest histories are now more readily
available through the increased utilization of computers and technology.
 Guest House: A personal residence with a small amount of overnight accommodation
sometimes limited by legislation and residence constraints. Typically provides breakfast which
is included within the room rate but no other meals. Not licensed to provide alcoholic
beverages commercially.
 Guest Service Directory: A documented listing of all of the features of a hotel together with
general and pertinent information about the community within which the property is located.
Directories are usually provided within each guest room.
 High (Peak) Season / Shoulder Season: The period of consecutive months during which
optimum revenues, room/suite occupancy and average room rates are generated.
 Low (off-peak) Season: The consecutive months during which the lowest revenues,
room/suite occupancy and average room rates are generated.
 Mini Bar: A specially designed small floor mounted refrigerator containing a variety of
beverages and snacks located in guest rooms, with individual guest room key access. This
amenity serves as a more credible and profitable substitute for room service. Overbooking: A
situation in which more room reservations have been taken by a hotel than what the hotel is
able to accommodate.
Hotels that use overbooking as a policy are increasingly being targeted by tour wholesalers
and operators in an attempt to better control and minimize the serious adverse marketing
effects which overbooking has for all stakeholders.

Introduction to Hotel Operations 35

 Package: The name given to an assembly of components under a one price system. Typically,
the core package price would include: return transportation, ground transfers, baggage
handling, accommodation, one or more meals per day, and applicable taxes. Car rentals,
recreation and entertainment and gratuities may also be included, but are more often
supplementary to the core package price.
 Rack Rate: The full, undiscounted published room rate (price).
 Registration Card (Reg. Card): A form on which arriving guests record their names,
addresses, and other details including mode of transportation used, nationality, purpose of visit
(usually business or pleasure), method of payment, and length of stay. A space is also provided
for signature, room rate and room number. Additional questions may be included as a part of
the hotel's market research platform.
 Room Service: Food and beverage delivered and served in a guest room.
 Safety Deposit Boxes: Individual boxes provided for the safekeeping of guest valuables.
Located either in a central, secure, and supervised location or in individual guest rooms.
 Wake Up call: A call made by front office, usually by telephone, to a guest room at the time
requested by a room guest to be wakened. Wake-up call (alarm call in the UK) is a service
provided by most lodging establishments to provide a service similar to alarm clocks via a
telephone.
 Walk In Guest: Guests who checks-in without an advance reservation.
 Walked Guests: When a hotel is overbooked and a guest room is not available for a
confirmed guest, the hotel has “walk the guest” to a nearby hotel. This usually includes
paying for transportation to the hotel and covering any difference in the room rate at the hotel
the guest was “walked” to.
 Buffet: Restaurant type in which the food is laid out for self-service. The best buffets have a
mix of ready-to-serve food (like hot and cold platters) and prepare-on-demand food (like an
omelets or meat carving station).
 Ambiance: The feeling a room gives you, engineered by hotel designers using lighting, sound,
colors and even smells.
 Amenity: An "extra" service or product given to guests by the hotel, typically at no extra
charge. This term is broadly used to describe the shampoo, conditioner, body lotion, soaps and

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 other products left in the guest room's bathroom for your use. Amenities can also refer to a
service like a station to print your boarding pass in the lobby, or free parking.
 Banquet: A meal usually dinner or lunch, prepared and served by the hotel exclusively for a
group. Most banquets have a predetermined menu, or food stations set up for self service.
 Bar: The area of the hotel where alcoholic and non-alcoholic drinks are mixed and served.
Typical locations include the hotel lobby, inside the restaurant or poolside. Often a bar inside a
restaurant serves from the full restaurant menu, and can be a great way to be seated and dine
right away, even when the restaurant has a long wait.
 Tip: Optional payment given in addition to a required payment, usually to express
appreciation for excellent service. It is also called gratuity.
 GRE: He / She is the relation of guest.
 Skipper: The guest who has cheek in the room but they did not stayed the room is called
skipper.
 Cabana: Hotel located in poolside areas that is types of room is call cabanas.
 Tariffis: The Tariffis is published room rates.
 Pax: The Pax is telling about how many person come to hotel.
 Black listed: Unwanted guest. These types of guest like a Terrorism.
 Folio: Number of guest list
 Personal: -Deal with requirements and training of staff promotion welfare etc.
 Security: -Deal with all unusual entry in the hotel.
 Maintenance: -There is responsible for the maintenance and upkeep of rooms.
 Accounts: -Receives copy of all department guest bills and maintain cash register and ledger
etc
 Sales and marketing: -Sale is concerned with selling and maintaining clientele for rooms and
beverages.
 VIP: Very important person.

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