M
Online Instructor’s Manual with Testbank
for
ED
Check-In, Check-Out:
C
Managing Hotel Operations
O
N
Tenth Edition
N
O
Gary K. Vallen
IS
Jerome J. Vallen
SE
U
R
, Table of Contents
CHAPTER PAGE
Notes to the Instructor iv
1 The Traditional Hotel Industry 1
2 The Modern Hotel Industry 9
3 The Structures of the Hotel Industry 18
4 Forecasting Availability and Overbooking 29
5 Global Reservations Technologies 42
M
6 Individual Reservations and Group Bookings 53
7 Managing Guest Services 62
ED
8 From Arrival to Rooming 71
9 The Role of the Room Rate 81
10 Billing the Guest Folio 101
11 Cash or Credit: The City Ledger 113
C
12 The Night Audit 124
O
13 Hotel Technology 131
N
UNIT AND FINAL EXAMINATIONS
FIVE SEPARATE UNIT EXAMINATIONS & ONE FINAL EXAMINATION
N
BONUS SUPPLEMENTAL “PICK AND CHOOSE” QUESTION
O
IS
SE
U
R
, CHAPTER 1
The Traditional Hotel Industry
Preparing The Lecture:
1. Use the chapter outline (provided on its own page for distribution or overhead use) to
structure the week’s work. Better still: Use the PowerPoint.
2. Aim to develop specific objectives for the students:
• A framework of historical reference that will document the direction of hotel
development and demonstrate the industry's vibrancy across the centuries.
• An appreciation for the magnitude of the hotel industry and the variety of its
M
products.
• A sense of the cyclical nature of the lodging industry.
ED
• A desire to build a technical vocabulary as an entree to the profession and a
prerequisite to understanding the lectures and reading materials that follow.
• An ability to compute and comprehend the three, basic formulas: Percentage of
Occupancy (%); Average Daily Room Rate (ADR); and Revenue Per Available
C
Room (RevPar).
O
3. Establish lecture goals, which might include:
• Identifying the hotel type, plan, and estimated rate whenever a hotel brand is
N
named during the class hour.
• Distinguishing between plans and differentiating these from classes of hotels.
N
• Understanding the limitations of rating systems especially outside of the United
States.
O
• Describing the service culture and the impact technology has played in recent
decades. This might include a preliminary discussion on how the shift to newer
IS
but less personal forms of service (self-check-in and check-out, for instance)
impacts the role of the hospitality service provider in the 21st century.
• Touch on the impact of social network sites (including travel blogs, Twitter, and
SE
Facebook) on the industry.
• Present the idea that BECAUSE the hotel industry is so dynamic in nature, it can
provide an exciting career path.
U
R
What The Chapter Is All About:
The introductory unit explains the hotel business. Students better understand the rooms division
if they appreciate the history, magnitude and culture of the industry. Chapter 1 does this using
several techniques. A brief history of hotel keeping emphasizes its changing profile. Definitions,
specialized vocabulary, and basic industry formulas introduce terminology that is prerequisite
both to professional membership and a better understanding of the material to come. The hotel
industry makes a major economic contribution to the global economy by serving both business
and tourism development. When the economy is strong, the lodging industry is generally strong.
But just as the economy has its cycles of good times and bad, so does the hotel business.
1
, Factors such as oil prices, inflation, and terrorism impact the fiscal health of lodging industry.
The industry's ups and downs reflect the limitations inherent in hotel keeping. (1) The product is
perishable – a room not sold tonight is lost forever. (2) The location and product inventory
(rooms) are fixed – they cannot be moved as demand patterns change. (3) Entry into the business
takes large amounts of capital – creating huge fixed costs that necessitate high occupancies to
achieve break-even status. (4) Activity is seasonal – with all the adjunct problems of operating
an ebb-and-flow business. All of which contributes to boom-and-bust cycles as business volume
lags or exceeds the industry's break-even point.
Hotel keeping is a varied business. Hotels differ in size (as measured in number of rooms); in
class (of services rendered); in purpose of use (type of hotel); and in plan offered (meals
provided or not). Worldwide, most governments – with the United States the major exception –
M
have classified and formalized these differences into rating systems.
ED
Room rate is one measure used by the industry worldwide. Average Daily Rate (ADR), is a
helpful indicator for guests, but serves managers, owners and lenders equally well. Percentage
of Occupancy is another standardized measurement. In some countries, it is a ratio of the
number of rooms sold to the number of rooms available for sale. Many other countries, as well
C
as the international organizations that monitor the industry, use a Percentage of Bed Occupancy
(number of beds sold as a ratio to the number of beds available) as the measuring norm.
O
N
Some Chapter Highlights:
What Is The Hotel Business? The quantitative value of the business (market share) is measured
N
in Percentage of Occupancy (Number of Rooms Occupied ÷ Number of Rooms Sold). The
qualitative value of the business (the class of hotel) is measured by Average Daily Rate or Sales
O
Per Occupied Room (Room Sales Measured in Dollars ÷ Number of Rooms Sold).
IS
Traditional Classifications are used to identify the many segments that now comprise the
industry. The size and location of the property, its services and charges (including the various
“plans” for including meals in the daily room rate), and the nature of its clientele (leisure,
SE
business, discount, convention, etc.) are among the traditional identifications. Chapter 2 offers
additional groupings, new classifications that have emerged as the industry adapts its profile to a
changing society.
U
Along with the basic math principles (ADR, occupancy, RevPar), vocabulary words and terms
R
are also introduced in this chapter as a means for developing industry professionalism. Key
concepts such as break-even point, perishability of inventory, seasonality of demand, full-service
to limited-service classifications, employee-to-room ratios, and rating systems are all presented
in this chapter. They lay the foundations on which the student builds understanding and clarity.
2
Online Instructor’s Manual with Testbank
for
ED
Check-In, Check-Out:
C
Managing Hotel Operations
O
N
Tenth Edition
N
O
Gary K. Vallen
IS
Jerome J. Vallen
SE
U
R
, Table of Contents
CHAPTER PAGE
Notes to the Instructor iv
1 The Traditional Hotel Industry 1
2 The Modern Hotel Industry 9
3 The Structures of the Hotel Industry 18
4 Forecasting Availability and Overbooking 29
5 Global Reservations Technologies 42
M
6 Individual Reservations and Group Bookings 53
7 Managing Guest Services 62
ED
8 From Arrival to Rooming 71
9 The Role of the Room Rate 81
10 Billing the Guest Folio 101
11 Cash or Credit: The City Ledger 113
C
12 The Night Audit 124
O
13 Hotel Technology 131
N
UNIT AND FINAL EXAMINATIONS
FIVE SEPARATE UNIT EXAMINATIONS & ONE FINAL EXAMINATION
N
BONUS SUPPLEMENTAL “PICK AND CHOOSE” QUESTION
O
IS
SE
U
R
, CHAPTER 1
The Traditional Hotel Industry
Preparing The Lecture:
1. Use the chapter outline (provided on its own page for distribution or overhead use) to
structure the week’s work. Better still: Use the PowerPoint.
2. Aim to develop specific objectives for the students:
• A framework of historical reference that will document the direction of hotel
development and demonstrate the industry's vibrancy across the centuries.
• An appreciation for the magnitude of the hotel industry and the variety of its
M
products.
• A sense of the cyclical nature of the lodging industry.
ED
• A desire to build a technical vocabulary as an entree to the profession and a
prerequisite to understanding the lectures and reading materials that follow.
• An ability to compute and comprehend the three, basic formulas: Percentage of
Occupancy (%); Average Daily Room Rate (ADR); and Revenue Per Available
C
Room (RevPar).
O
3. Establish lecture goals, which might include:
• Identifying the hotel type, plan, and estimated rate whenever a hotel brand is
N
named during the class hour.
• Distinguishing between plans and differentiating these from classes of hotels.
N
• Understanding the limitations of rating systems especially outside of the United
States.
O
• Describing the service culture and the impact technology has played in recent
decades. This might include a preliminary discussion on how the shift to newer
IS
but less personal forms of service (self-check-in and check-out, for instance)
impacts the role of the hospitality service provider in the 21st century.
• Touch on the impact of social network sites (including travel blogs, Twitter, and
SE
Facebook) on the industry.
• Present the idea that BECAUSE the hotel industry is so dynamic in nature, it can
provide an exciting career path.
U
R
What The Chapter Is All About:
The introductory unit explains the hotel business. Students better understand the rooms division
if they appreciate the history, magnitude and culture of the industry. Chapter 1 does this using
several techniques. A brief history of hotel keeping emphasizes its changing profile. Definitions,
specialized vocabulary, and basic industry formulas introduce terminology that is prerequisite
both to professional membership and a better understanding of the material to come. The hotel
industry makes a major economic contribution to the global economy by serving both business
and tourism development. When the economy is strong, the lodging industry is generally strong.
But just as the economy has its cycles of good times and bad, so does the hotel business.
1
, Factors such as oil prices, inflation, and terrorism impact the fiscal health of lodging industry.
The industry's ups and downs reflect the limitations inherent in hotel keeping. (1) The product is
perishable – a room not sold tonight is lost forever. (2) The location and product inventory
(rooms) are fixed – they cannot be moved as demand patterns change. (3) Entry into the business
takes large amounts of capital – creating huge fixed costs that necessitate high occupancies to
achieve break-even status. (4) Activity is seasonal – with all the adjunct problems of operating
an ebb-and-flow business. All of which contributes to boom-and-bust cycles as business volume
lags or exceeds the industry's break-even point.
Hotel keeping is a varied business. Hotels differ in size (as measured in number of rooms); in
class (of services rendered); in purpose of use (type of hotel); and in plan offered (meals
provided or not). Worldwide, most governments – with the United States the major exception –
M
have classified and formalized these differences into rating systems.
ED
Room rate is one measure used by the industry worldwide. Average Daily Rate (ADR), is a
helpful indicator for guests, but serves managers, owners and lenders equally well. Percentage
of Occupancy is another standardized measurement. In some countries, it is a ratio of the
number of rooms sold to the number of rooms available for sale. Many other countries, as well
C
as the international organizations that monitor the industry, use a Percentage of Bed Occupancy
(number of beds sold as a ratio to the number of beds available) as the measuring norm.
O
N
Some Chapter Highlights:
What Is The Hotel Business? The quantitative value of the business (market share) is measured
N
in Percentage of Occupancy (Number of Rooms Occupied ÷ Number of Rooms Sold). The
qualitative value of the business (the class of hotel) is measured by Average Daily Rate or Sales
O
Per Occupied Room (Room Sales Measured in Dollars ÷ Number of Rooms Sold).
IS
Traditional Classifications are used to identify the many segments that now comprise the
industry. The size and location of the property, its services and charges (including the various
“plans” for including meals in the daily room rate), and the nature of its clientele (leisure,
SE
business, discount, convention, etc.) are among the traditional identifications. Chapter 2 offers
additional groupings, new classifications that have emerged as the industry adapts its profile to a
changing society.
U
Along with the basic math principles (ADR, occupancy, RevPar), vocabulary words and terms
R
are also introduced in this chapter as a means for developing industry professionalism. Key
concepts such as break-even point, perishability of inventory, seasonality of demand, full-service
to limited-service classifications, employee-to-room ratios, and rating systems are all presented
in this chapter. They lay the foundations on which the student builds understanding and clarity.
2
