HOTEL INDUSTRY

HOTEL INDUSTRY

INTRODUCTION

 The hotel industry is the servicing business conducing another significant branch in the economic development of the country. The hotel industry associates many types of industry, such as the tourist industry, the transportation industry, and the food servicing industry. It is apparent that every country emphasizes on the significance of this kind of industry, with a belief that this is a source for employment, disseminating the income of the country, conducing the country’s progression, especially the progressing country such as Thailand. It is accepted that the hotel industry brings a high income to the country. Therefore, the government sector and the public sector should cooperate in promoting this kind of business. Whereby, the public sector would make the investment, and the government sector would support. It is complacent that generally the hotel industry in Thailand is being internationally accepted, due to the modernization of the hotel and the optimum service. The Thai amiability to foreigners avails the progression of this kind of business. The Oriental Hotel is an example of success for Thai Hotel, in receiving the world best hotel award for eight consecutive years. This enables the image for the Thai hotel business to become in one of the top levels in the eyes of foreigners.

 Presently, various hotels expanded the network and branches, with a belief that the hotel business is still going well in Thailand, because people are still much interested to make a tour in this region of the world. Moreover, the booming tourist industry is enchanting people to put in more investment. These factors would conduce a great income to the country. More people give better interest in the study of the Hotel Academic. There was the intense teaching, training, and learning in this subject, to concur with the growth of this business. On the overall, this is directly advantageous to the hospitality industry. Because administrators and the operators attained the knowledge in the hotel business administration with a correct servicing knowledge, this would also be advantageous to other relevant business.

THE DEFINITION OF HOTEL INDUSTRY

 The Hotel Law, 1935 Article 3, indicated that the word hotel refers to all places constituted to receive the payment from travelers or people who quest for lodging or temporary stay. (Preecha Daengroj, 2001:199) The word ‘Hotel’ in the Longman Dictionary of American English (1983:335) gave a definition of “a building where people can stay, in return for payment”. This refers to a place where people can stay through payment. In the New Model English-Thai Dictionary (So Sethaputra, 2002 : 349) gave the definition that the word ‘hotel’ refers to the big hotel, the mansion, or the government offices, such as Hotel de Ville.

Accommodation

 Before there was the word ‘hotel’ there was the word accommodation or places for travelers, which has a more extensive meaning than the word ‘hotel’. However, the hotel is the accommodation for travelers who wish have lodging through payment to the proprietor. The accommodation refers to a temporary lodging, where travelers may rest and take a sleep. The accommodation is a prime significant for the traveling, which is important for the people, economically, culturally, and socially. The form of accommodation should be suitably in concordance with the environment. This might be an endemic style or a modern style, depending on the surrounding. This conduces a diversity of accommodation formats. Therefore, the lodging has many types and many prices, with a variety of required conveniences. The word ‘hotel industry’ can be concluded as the business administration pertaining to the lodging, put up to receive payments from travelers or the people who seek for a temporary stay, with services on the food, drink, and a systematic control on the particular administration

HOTEL BUSINESS ADMINISTRATION FORMAT

The hotel business administration has different formats depending on the policy of servicing in each hotel, which can be classified as follows:

International Chain’s Hotel

Family Hotel

Management Contract (Management Team)

1) International Chain’s Hotel

This type of hotel business is the Joint Venture operation which refers to the participation of foreign investors. For Thailand, in the case of a joint venture, the law stipulated that the Thai people must hold shares of not less than 51% of the registered capital. The hotel business in the Chain Hotel may not be a joint venture, but an agreement between the person paying for the license and the vender of the license in all phases of administration, right from the administrator, the policy, the marketing, and the public advertisement through the expertise in the hotel branch. The duration of this indenture depends upon both parties, which the purchaser must pay for the license right, the administrative expenses, and must give dividends to the license vender. Whereby, the name of the particular hotel conglomerate, must be shown conspicuously; such as in the case of Holiday Inn Hotel, while the Crown Plaza is the conglomerate hotel of the Holiday Inn; the Regent Bangkok is a member of the Regent International Hotel; the Hyatt Erawan, Bangkok, is a hotel in the Hyatt International, etc. This character cf business is a franchise contract (details in Chapter Nine). Each hotel conglomerate would have its own branches in every region of the world, such as the Regent Group International Hotel who has lots of hotels in its conglomeration.

2 Family Hotel

This business is done amongst the family or cousins. This type of administration has long survived ever since the hotel service has begun, because it is suitable for small hotels, and need the least administrator and personnel. Therefore, when this business is conducted within the family, brothers and sisters would cooperate in the administration and become proprietors, such as the Family Hotel in the United States with the name of ‘Mom and Pop’. There were less than 100 rooms, while the hotel was owned by the head of the family. The wife and children help in the Mini-Mart, and the Perm Parlour within the hotel, and owners would give services themselves. There are both merits and demerits in this type of business

3)Management Contract (Management Team) 

This is a contract with companies dealing with the hotel management, right from commencing the hotel construction or after the hotel is built. The company undertaking this management, would have its own teamwork to control the specific hotel, through the General Manager, under the Management Contract, the undertaking company, would execute without a capital investment nor other assets in the hotel, while the proprietor would have to be responsible for all the investment. The hotel conglomerate would stipulated the policy, the operation procedure, the accounting, the marketing, while the proprietor would have to pay for these expenses, and the dividends would be apportioned according to the profit (after deducting the expenses, but not the liabilities). While in some companies, there may be the administrative assurance called the Negative Guarantee; that is should the output be ineffective, then the administration would be conducted free of charge. The administrative time depends upon the covenant, and usually not less than 10 years, because the newly constructed hotels are in the average of 3-5 first years, and are still in the Setting in Period with no dividends. But it may still be less than 10 years, such as the Dusit Thani who signed a Management Contract with the hotel conglomerate of Westin (Western International) in 1970 and the contract terminated in 1972. The contract was changed from the Management Contract to the Marketing Contract, and did not need to change the name, such as the Dusit Thani who did not use the name of Western International, and the Rama Hotel, Silom, (1958), did not use the name of the Hilton International.

TYPE OF HOTELS

• Commercial or Transient Hotel
• Resort Hotel
• Residential Hotel
• Motel
• Budget Hotel
• Condominium Apartment, Flat

A) Commercial or Transient Hotel

Commercial hotels usually situate in the Down Town with the business concourse. Businessmen are content to accommodate in this type of hotels, because it is convenient in the business contact, with no need for long travels, passing all the traffic jam. It is convenient because this type of hotels are fully and conveniently accommodated, such as the food servicing, the swimming pool, the exercise room, the tennis lawn, karaoke room, dancing room, and the conference room. It is also near various places, which businessmen may easily make business contacts. The communication is convenient, with all means of selectable transportation for servicing. In this type of hotels, clients can enter and leave all the time, while they would not rest in hotels for a long time

B) Resort Hotel

This is a resting hotel for tourists. These hotels would situate in the tour sources or in the resting sources such as on the seashores, the mountains, on the riverside, near the golf course, etc. Therefore, the conservation of natural beauty is a significant matter, because guests require contacting the beautiful nature, and at the same time, they also need to all the conveniences and facilities. Therefore, this type of hotel must be fully prepared for the conveniences and facilities, because the guests only wish to rest. In the hotel, there should be the golf course, riding course, and fitness. There should be all the exercises and activities for guests, such as the boat services, horses for riding, wind surf, and ski lawn. All these would enable the success for resort hotels.

Residential Hotel refers to the resident and not for commercial. Therefore, the residential hotel is the lodging, with a tenant contract and conditions between guests and the proprietor, where there would be an accommodation for a short time, or a long time. This length of time may take a month long, or a year long. However, there might be a condition that in the case of long term tenant, should the guest be absent for a long time, such as going to upcountry for a long time, the hotel has a right to let the room on a short basis, such as the Voldoft Astroia in New York, who are the Residential Hotel. They have temporary guests as well as permanent guests. In this case, the hotel conglomerate of Astroria has many branches, in Europe and in America.

C) Motel

 Motel is the combination of the words ‘Motel’ to ‘Hotel’. This word had been initiated in the United States before 1930. After the World War II, when the economy started to revitalize, people sold more motor cars, and went on the travel. Travelers experienced all inconveniences in the lodging. This is usually in town, where the traffic was congested and jammed, with no parking space. In this case, the motel must find all the facilitation for tourists, with a parking service right next to the bedroom, or sometimes, under the bedroom. Usually, motels do not have room services, because guests usually come to rest for only one night, before commencing on the travel in the next morning. Motels usually situate on the highways, and the accommodation service is executed for 24 hours

Motor Hotel

The idea in building up Motor Hotels was initiated by Cammon Wilson, an American designer and fixed asset developer, who set his family on a tour. He encountered a great accommodation difficulty. After his tour, he contrived a new format for the hotel by collecting all conveniences with the travelers who owned cars. The format of the Motor Hotel is the medium hotel with 30 rooms to 300 rooms, accommodated with parking spaces. The parking is free to compete with hotels that collect parking spaces. Moreover, there may be other services, such as the coffee shop, cocktail lounge, conference room, and swimming pool.

D) Budget Hotel

The Budget Hotel or the Economy Hotel is to serve travelers who like the economy, cleanliness and modernity. This is usually a small size hotel, with limited rooms. An example of this type of hotel is the Days Inn, which spread all over the United States. Sometimes, the Days Inn may be in the same place with a service station, while giving different services. This is the same as the Ibis in Europe and Japan. Quite a number of travelers prefer the economy hotels, especially in countries with high cost of living, where some groups of tourists are unable to accommodate in hotels with high services

Condominium Apartment & Flat

The condominium is a suit condominium that is similar to an apartment or flat. The difference is that the owner of a condominium or the particular suit has an absolute tenure right, through the affirmative document under the agreed rules and regulations

GUEST ROOMS SELLING FORMAT, AND THE FOOD SELLING FORMAT

Guest Rooms Selling Operation: The hotel proprietor or the investor must stipulate a precise sales policy of the hotel. The applied sales format for guest rooms are generally classified into four formats:

European Plan

The European plan or EP is the European style. In this type of business management, the room rate would be differentiated. While other expenses, such as the food, and drinks would not be included in the room rent. In this case, guests must arrange for their own meals

American Plan

The American plan or AP is the American style. The AP management is the room rate administration with an inclusive expense of the room rent and three meals. This is composed of breakfast, lunch, and dinner, for each guest This type of business management was initiated in America. While in Europe, the AP Format is in the Full Pension (inclusive of room rent and meals). Usually the food for service is presented through Table d’Hotel,

Modified American Plan or MAP

Modified American Plan 

MAP is the improved American plan. When the popularity in the American plan was phasing out, the hotel tried to develop new methods, but would not leave out the AP completely. Because this type of management is advantageous to the hotel. Therefore, a new method has been revised by reducing the meal into two meals. Guests do not like to have lunch in the hotel, because they would have to hurry back for lunch. Should they be late, then they would have to pay for that meal without taking it, including the cost of the meal they had taken elsewhere. However, the MAP management is still advantageous to the hotel, because guests would still have to take breakfast and dinner in the hotel.

Half Pension, or Demi Pension (DP)

The Half Pension or Demi Pension (DP) is the application of the MAP, where the room rate, is the combination of the room to the food and drinks of the breakfast. The guests have to find their own lunch and dinner, either within or outside the hotel. Usually, in this case, the hotel would inform guests that the breakfast is the Complimentary

HOTEL ADMINISTRATION STRUCTURE

The hotel administration is a characteristic administration. The leading hotel enterprise had an international administration, with procedural system and policy. The hotel administration would be classified into two large groups of:  

1)Front of the house

2)Back of the house

These two groups of services cannot be completely divided from each other. While the two operations would have to coordinate and to operate concurrently and harmoniously, for the accomplishment of the hotel business.

1)Front of the House

This part of service is the direct contact and association with guests, from the first second that guests arrived, showing an intention to accommodate in the hotel. This front service is under the superintendent of the General Manager. The front of the house is classified as follows

Front Office Department:

This is a very important department, making a direct contact with guests. Should guests any problems or require to appreciate or comment, 15 they would go direct to the Front Office, because it is convenient to contact and converse with other departments. Therefore, this department is the direct delegate to link the work and report the consequence to other departments.

The operational function of the Front Office Department:

 - Reservation : This section is responsible in registering the room reservation from various sources, with recordings, filing of reservation records, and revise on the appropriate time to make sure that guests would have their rooms upon entering the hotel.

 - Postage and Parcels : This section is to facilitate guests pertaining to the posting of letters, telegrams, and parcels.

- Telephone : This section is to facilitate guests pertaining to the telephone both internally and externally, and to wake guests up in the morning upon request.

- Finance and Foreign Exchange : This section relates with the Accounting Department, through the collection from guests through their services, and also give the foreign exchange service.

- Lost and Found : Should guests lost any of their belongings, this section would register the notification; and should the personnel or any person found this belonging within the hotel, then the personnel would bring it to this section in order to return to the owner.

- Inquiry : This section is to answer questions and inquiries of guests. Therefore, this section would have to be alert with the all the movements of the hotel

Uniformed service department:

 This section is to provide a service guests from the first second of arrival the hotel. Therefore, the personnel have to acquire special training to impress guests from the first instance. Personnel in this section are:

- Doorman : The doorman is responsible in servicing guests by closing and opening the door, and to greet guests when they light from cars.

- Porter : The porter has to coordinate with the Doorman when guests arrive the hotel. Then the Porter would lift up the baggage or other luggage of guests and lead guests to register at the counter

- Bellboy : This personnel would act like Porters. He would wait until guests finished their accommodating registration at the front counter. Then the Bellboy would take guests to their rooms, lifting their luggage and belongings as well.

- Pageboy : This person is to give services to guests at the front of the house. Generally, the Pageboy would walk to various points where guests are expected to sit.

- Elevator boy: This person is responsible in controlling the moving up and down of the lift, and to advise the hallway for guests.

DEPARTMENTS

Messenger : This personnel give services in sending various messages required by the Front Office Department in servicing guests.

Housekeeping Department :

This section is to give facilitation pertaining to the accommodation, and the general condition of the hotel have to be proper, clean, convenient, and sanitary; and has to be all set at all times. The Housekeeping Depart is composed of:

- Guest Room

- Linen Room

- Minibar
- Florist

- Decoration
- Upholsterer

- Public Area

- Laundry Room

Guest Room : The Guest Room is the core of the hotel. The personnel in this department are composed of the Room boy, and the Room Attendant who are women responsible for cleaning the room. They are supervised by the Floor Supervisor, while the Floor Attendant is to take care offloors in her responsibility.

Linen Room : This room is to store all the linen of the hotel, including all the uniform of the personnel. This section is composed of the Linen Supervisor, giving surveillance over the Sewing Girl who repairs the uniform of personnel and all the damaged cloths; the Linen Attendant is responsible in taking the cloths and in allocating the cloths to various departments.

Mini-bar : This section give services apart from the Room Service. The Mini-bar crews are responsible for cleaning drinking glasses, storing them in places, filling in the ice cubes, and soft drinks in the refrigerator, to keep the amount in full according to the Mini-bar Menu.

Florist: The florist is responsible in arranging all kinds of flowers in the hotel, including the Guest Rooms, the Dining Room, the Hall, various banquets and in offices.

Decoration : This section is responsible in decorating the place in various occasions, on special days, and holidays; including the decoration on the state, and conference room. Some hotels may combine this section to the Florist.

Upholsterer: This section is responsible in repairing the furniture, cushion, carpet, curtains to keep the place in the best condition at all times

Public Area : The Public Area refers to the place where all guests make the use of, such as the dining room, the swimming pool, the garden, the lobby, Hie hallway, the conference room the banquet hall, and the fitness room. In these places, the personnel would be responsible for the cleanliness and the tidiness all the time.

Laundry Room : This section is responsible in the whole cleaning services of the hotel, such as all the uniform of the personnel in the hotel, including the clothes of guests

Back of the House 
The services at the Back of the House do not usually make direct contacts with guests. This function is only performed in offices, but it is a very important task. Various sections at the Back of the House are:

1. Sales Department
2. Food and Beverage Department
3. Engineering Department
4. Accounting Department
5. Personnel Department
6. Public Relations Department
7. Purchasing Department

Sales Department: This department is very important in finding guests to accommodate in the hotel. The personnel in this department must be competent in selling with good human relations. The Sales Department is classified into:

• Guest Rooms Selling Section
• Conference Room and Banquet Room Selling Section

Food and Beverage Department: This department brings a high profit to the hotel. Currently, hotels rather depend upon the total sales from this department than the guest rooms. Therefore, this Department needs a highly competent Administrator, and effective personnel. This department is divided as follows:

• Beverage Service
• Service
• Food Service
• Catering
• Banquet Service
• Food Preparation
• Art

Engineering Department: This department is also called the Mechanics Department. This department works on all the engineering work, the repair and mending, the lights, the colour, the sound, the water and electricity, the heater, the cooler, and etc.

The Accounting Department: The Accounting Department controls on the whole financing and the accounting of the hotel. The function of this section is:

•  Payroll
•  Auditing
•  Control and Post the Accountings

Personnel Department 
The function of this department is to set all the policies on the personnel.

• Assemble the history and information of the personnel
• Make personnel planning for various departments
• Select, allocate, and transfer personnel
• Welfare control, the petition, and personnel relations
• Training
• Discipline penalty, and fault investigation

Public Relations Department

 This department is the delegate of the hotel in giving information to guests and the public. The Public Relations Department is very importan:, and without the public relations, the hotel business can easily collapse. The operational factors of the public relations in the Hospitality Industry are in three stages:

• Advertise to appraise the facts
• Propaganda to induce the belief and faith
• Instigate to arouse the operation, conducing a good association

Purchasing Department

This Department is responsible in purchasing everything for the hotel. Some hotels set the purchasing in each department, or assign the administrative department to be the procurer. The Purchasing Department needs a high reliance. Therefore the personnel in this Department have to be honest, without the selfishness.

There are many types and characters of hotels, with varying prices. Therefore it is the consumer’s business to choose. Hence, each type of hotel competes in its product and services which should enable hotel industries to prosper well. However, the surrounding factors should also be taken into consideration, such as the political status, the economy status, the society, the contagion, the revolt, the natural catastrophe, which resulted in some interval suspension. Therefore, the hotel industry administrators, and relevant persons have to perceive and learn about the current situation and also to conceive on the problem solution for the future progression and exuberance of the hotel industry.

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