HOTEL MANAGEMENT AND OPERATIONS - Free MBA Preparation

498 Pages·2006·2.07 MB·English

1327.chfm 12/19/05 12:28 PM Page i
H O T E L M A N A G E M E N T
A N D O P E R A T I O N S
f o u r t h e d i t i o n
Edited by
Denney G. Rutherford, Ph.D.
Endowed Chair Emeritus
School of Hospitality Business Management
Washington State University
Michael J. O’Fallon, Ph.D.
Hospitality and Tourism Management
College of Business
James Madison University
JOHN WILEY & SONS, INC.
1327.chfm 12/19/05 12:28 PM Page iv
1327.chfm 12/19/05 12:28 PM Page i
H O T E L M A N A G E M E N T
A N D O P E R A T I O N S
f o u r t h e d i t i o n
Edited by
Denney G. Rutherford, Ph.D.
Endowed Chair Emeritus
School of Hospitality Business Management
Washington State University
Michael J. O’Fallon, Ph.D.
Hospitality and Tourism Management
College of Business
James Madison University
JOHN WILEY & SONS, INC.
1327.chfm 12/19/05 12:28 PM Page ii
This book is printed on acid-free paper. (cid:2)(cid:2)
Copyright © 2007 by John Wiley & Sons,Inc.All rights reserved
Published by John Wiley & Sons,Inc.,Hoboken,New Jersey
Published simultaneously in Canada
No part of this publication may be reproduced,stored in a retrieval system,or transmitted in any form
or by any means,electronic,mechanical,photocopying,recording,scanning,or otherwise,except as per-
mitted under Section 107 or 108 of the 1976 United States Copyright Act,without either the prior writ-
ten permission of the Publisher,or authorization through payment of the appropriate per-copy fee to
the Copyright Clearance Center,Inc.,222 Rosewood Drive,Danvers,MA 01923,[phone],fax
[phone],or on the web at www.copyright.com.Requests to the Publisher for permission should
be addressed to the Permissions Department,John Wiley & Sons,Inc.,111 River Street,Hoboken,NJ
07030,[phone],fax [phone],e-mail:[email protected].
Limit of Liability/Disclaimer of Warranty:While the publisher and author have used their best efforts
in preparing this book,they make no representations or warranties with respect to the accuracy or
completeness of the contents of this book and specifically disclaim any implied warranties of mer-
chantability or fitness for a particular purpose.No warranty may be created or extended by sales repre-
sentatives or written sales materials.The advice and strategies contained herein may not be suitable for
your situation.You should consult with a professional where appropriate.Neither the publisher nor au-
thor shall be liable for any loss of profit or any other commercial damages,including but not limited to
special,incidental,consequential,or other damages.
For general information on our other products and services or for technical support,please contact our
Customer Care Department within the United States at [phone],outside the United States at
[phone] or fax [phone].
Wiley also publishes its books in a variety of electronic formats.Some content that appears in print
may not be available in electronic books.For more information about Wiley products,visit our web site
at www.wiley.com.
Library of Congress Cataloging-in-Publication Data:
Hotel management and operations / edited by Denney G.Rutherford,Ivar Haglund,and
Michael J.O’Fallon.— 4th ed.
p. cm.
Includes bibliographical references and index.
ISBN-13:978-0471-47065-6
ISBN-10:0-471-47065-1 (pbk.)
1. Hotel management. I. Rutherford,Denney G.,1942– II. Haglund,Ivar.
TX911.3.M27H663 2007
647.94(cid:3)068—dc22 2005011811
Printed in the United States of America
10 9 8 7 6 5 4 3 2 1
1327.chfm 12/19/05 12:28 PM Page iii
D E D I C A T I O N
The fourth edition of Hotel Management
and Operations is hereby dedicated to all of
those hospitality students who have enriched
the lives of their guests by continuing to
learn beyond their formal education.It is
these professionals who constantly strive
to find even better ways to give the gift of
friendship.All the best to you.
D.G.R.and M.J.O’F 2005
1327.chfm 12/19/05 12:28 PM Page iv
1327.chfm 12/19/05 12:28 PM Page v
C O N T E N T S
Preface xi
Contributors xiii
Acknowledgments xv
chapter 1 OVERVIEW I
1.1 Introduction 1 1.6 Customer Relationship Management—A
1.2 The Hotel Development Process 5 Driver for Change in the Structure of the
John Dew U.S.Lodging Industry 36
Gabriele Piccoli,Peter O’Connor,
1.3 How Well Does the Branded Distribution
Claudio Capaccioli,and Roy Alvarez
Company Allow Independent Hotels to
Compete with the Chains? 14 1.7 Spas and the Lodging Industry 50
Peter Cass Peter C.Anderson
References 67
1.4 The Art and Science of Opening
Suggested Readings 68
a Hotel 21
Source Notes 68
Tom Dupar
1.5 On-line Pricing:An Analysis of
Hotel-Company Practices 26
Peter O’Connor
v
1327.chfm 12/19/05 12:28 PM Page vi
vi
Contents
chapter 2 ORGANIZATION 69
2.1 Introduction 69 References 88
Suggested Readings 88
2.2 Organizational Design 73
Source Notes 88
Eddystone C.Nebel III
2.3 As I See It:Hotel Organization
Structure 86
Mark Conklin
chapter 3 GENERAL MANAGERS: A VIEW
AT THE TOP 89
3.1 Introduction 89 3.5 A Day in the Life of a Hilton Hotel
3.2 A Conceptual Framework of the Hotel General Manager 113
General Manager’s Job 91 Robert O.Balmer,CHA
Eddystone C.Nebel III and Ajay Ghei 3.6 A Day in the General Manager’s Life 115
3.3 Grooming Future Hospitality Leaders: Bob Peckenpaugh
A Competencies Model 101 3.7 Mini Case:Sunset Hotels and Suites 118
Beth G.Chung-Herrera,Cathy A.Enz, References 118
and Melenie J.Lankau Suggested Readings 120
3.4 As I See It:What I Do 111 Source Notes 120
Emilio Fabico
chapter 4 OPERATIONS: ROOMS 121
4.1 Introduction 121 4.5 Concierge (cone-see-air-j) 143
4.2 The Electrifying Job of the Front Office Mario Arnaldo
Manager 124 4.6 As I See It:Management of the
James A.Bardi Front Office 149
Oliver Meinzer
4.3 A Day in the Life of the Front Office
Manager 127 4.7 Mini Case:The New FOM 161
Garry Dickover 4.8 To Change or Not to Change:
4.4 Yield Management:Choosing the Most A Case Study at the Front Desk 162
Profitable Reservations 131 Nancy Swanger
William J.Quain and Stephen M.LeBruto References 163
Suggested Readings 164
Source Notes 164
1327.chfm 12/19/05 12:28 PM Page vii
vii
Contents
chapter 5 OPERATIONS: HOUSEKEEPING,
ENGINEERING, AND SECURITY 167
5.1 Introduction 167 5.6 The Engineering Department and
5.2 A Day in the Life of a Director Financial Information 199
of Rooms 173 Agnes Lee DeFranco and
Kurt Englund Susan B.Sheridan
5.3 Housekeeping Organizations:Their 5.7 The Legal Environment of Lodging
History,Purpose,Structures,and Operations 205
Personnel 175 Melissa Dallas
Thomas Jones 5.8 Asphalt Jungle 217
5.4 On Being an Executive Housekeeper 188 Je’anna Abbott and Gil B.Fried
John Lagazo 5.9 Workplace Violence in Hotels 227
5.5 The Hotel Engineering Function: Mark Beattie and Jacinta Gau
Organization,People,and Issues in the 5.10 Case Study:Housekeeping,
Modern Era 191 Engineering,and Security 230
Denney G.Rutherford References 231
Suggested Readings 233
Source Notes 234
chapter 6 FOOD AND BEVERAGE DIVISION 235
6.1 Introduction 235 6.7 A Day in the Life of an Executive
6.2 Managing Food and Beverage Director of Catering Sales and
Operations in Lodging Organizations 239 Convention Services 287
Robert H.Bosselman Rich Benninger
6.3 As I See It:Hotel Director of Food and 6.8 The Organization and Management of
Beverage 251 Hotel Beverage Operations 291
Dominic Provenzano Valentino Luciani
6.4 Best Practices in Food and Beverage 6.9 Case Study:Crisis in the Food Court 298
Management 253 Nancy Swanger
Judy A.Siguaw and Cathy A.Enz 6.10 Case Study:Outside the Box in the Food
6.5 Strategic Alliances Between Hotels and and Beverage Division 299
Restaurants 265 References 300
Robert W.Strate and Clinton L.Rappole Suggested Readings 301
Source Notes 302
6.6 Contemporary Hotel Catering 282
Patti J.Shock and John M.Stefanelli
1327.chfm 12/19/05 12:28 PM Page viii
viii
Contents
chapter 7 MARKETING AND ASSOCIATED
ACTIVITIES 303
7.1 Introduction 303 7.6 Hotel Sales Organization and
7.2 Building Market Leadership:Marketing Operations 348
as Process 305 Margaret Shaw and Susan V.Morris
Fletch Waller 7.7 Putting the Public in Public Relations:
7.3 Consumer Decision Rules and Implica- The Case of the Seattle Sheraton Hotel
tions for Hotel Choice 321 and Towers 353
Bianca Grohmann and Eric Spangenberg Louis B.Richmond
7.4 Hotel Pricing 334 7.8 Mini Case:Revamping the Marketing Re-
Marta Sinclair and Carl R.Sinclair search Department 360
References 361
7.5 A Day in the Life of a Regional Revenue
Suggested Readings 362
Manager 345
Source Notes 362
Paul Chappelle
chapter 8 FINANCIAL CONTROL AND
INFORMATION MANAGEMENT 365
8.1 Introduction 365 8.5 The Hotel Purchasing Function 391
8.2 The Lodging Chief Financial C.Lee Evans
Executive 368 8.6 Data Mining for Hotel Firms:Use and
Raymond S.Schmidgall Limitations 399
8.3 Budgeting and Forecasting:Current Vincent P.Magnini,Earl D.Honeycutt Jr.,
Practice in the Lodging Industry 377 and Sharon K.Hodge
Raymond S.Schmidgall and References 412
Agnes Lee DeFranco Suggested Readings 414
Source Notes 414
8.4 As I See It:The Hotel Controller 387
Michael J.Draeger