Introduction: Hotel Operations 

Generally, people consider hotels to provide sleeping accommodations, bathrooms, gathering spaces, food and beverage, and amenities. However, there is much more behind the scenes.  Running a hotel involves many intricate daily tasks that involve many staff. As a hotel guest, you might only interact with the front desk associate who checks you in, the housekeeper who cleans your room, and your server in the hotel restaurant. But behind the scenes, there are sometimes hundreds of employees ensuring a smooth and enjoyable experience for you and all of the other guests.

Staffing levels for hotels can vary based on the size, type, and services offered by the hotel. Each hotel general manager will determine the appropriate staff-to-room ratio (the number of employees/number of available rooms in a hotel). For example, a luxury, full-service resort with 500 rooms might use a 1:1 ratio, meaning there are 500 employees, one for every hotel room. On the other hand, a 100-room, limited-service, extended-stay hotel can successfully operate with a much lower staffing ratio, typically about 15-20 employees.  Some hotels prefer to use a staff-to-guest model instead.

The focus of all staff, but especially hotel management, is to work together to ensure an outstanding lodging experience and to make a profit to the property owners.

Let’s examine what—and who—it takes to manage and operate a hotel. First, we will examine how a typical hotel is organized, then we will explore some of the more common roles and functions within a hotel.

The organizational structure of hotel operations, as well as the number of roles and levels of responsibility, vary depending on the type and size of accommodation. They are also determined by ownership structure and the management company’s or franchisor’s standards and procedures. In the section below, we explore the organizational structure and roles typically in place in a full-service hotel with under 500 rooms. These can also apply to smaller properties and businesses such as campgrounds — although in these cases, several roles might be fulfilled by the same person.

The General Manager

In most properties, the hotel general manager or hotel manager serves as the chief executive and is responsible for overseeing the overall operation of a hotel or lodging establishment. Their role is multifaceted and includes a wide range of responsibilities to ensure the hotel’s success and guest satisfaction. Here are some of the key duties and responsibilities of a hotel general manager:

• Overall Leadership: General managers are typically the highest-ranking individuals at the hotel. They are responsible for providing leadership and direction to all staff members and overseeing all day-to-day operations. In this leadership role, they also develop and implement long-term strategies to improve the hotel’s performance and competitiveness in the market.

• Staff Management: This includes hiring, training, and managing the hotel staff. The general manager needs to ensure that employees are well-trained and motivated and that labor laws and regulations are adhered to.

• Financial Management: They are responsible for the financial performance of the hotel, which includes budgeting, cost control, and revenue management. They need to ensure the hotel is profitable, that expenses are in check, and provide regular reports to the hotel’s owners or corporate headquarters,

• Guest Relations and Safety: General managers are often the face of the hotel and are responsible for ensuring that guests have a positive experience and that safety protocols are not only in place but followed at all times.

• Community Relations: General managers are also the face of the hotel for the community in which they operate. Building and maintaining positive relationships with the local community and government entities can be important for the hotel’s success.

Because hotels operate 24 hours a day, seven days a week, many hotels also employ one or more assistant general managers to provide day-to-day operational management and supervision of department heads and to assume the general manager’s responsibilities when they are absent from the property.

The Rooms Division 

Rooms Division Management is a crucial part of hotel operations and is responsible for overseeing all aspects related to the accommodation and guest services within a hotel. It is pivotal in ensuring guests have a comfortable and memorable stay. It’s similar in nature to the front of house in a restaurant.

The rooms division director reports to the General Manager and oversees the hotel’s accommodations, including front office, reservations, housekeeping, and guest services. They are responsible for ensuring the smooth operation of these departments, maintaining guest satisfaction, and maximizing room revenue. This role involves setting and implementing strategies, managing budgets, and training staff to maintain high standards of service and cleanliness in guest rooms. Effective rooms division management is critical for guest satisfaction, the hotel’s reputation, and financial success.

Front Office

The front office is often considered the “nerve center” of the hotel. Reporting to the director of rooms, the front office manager, sometimes called the reception manager, controls the availability of rooms and the day-to-day functions of the front office. Key responsibilities include guest check-in and check-out, managing reservations, handling guest inquiries, and providing information about the hotel and local area. The front office staff ensures a smooth and efficient arrival and departure experience for guests.

The front desk agent reports to the front office manager and works in the lobby or reception area to welcome the guests to the property, process arrivals and departures, coordinate room assignments and pre-arrivals, and respond to guest requests.

The job of a hotel night auditor involves reconciling the hotel’s financial transactions, handling guest check-ins and check-outs during late-night shifts, and ensuring the accuracy of accounting records for the day’s operations. They play a crucial role in maintaining financial accuracy and assisting guests with their needs during overnight hours.

Reservations

Large full-service hotels typically have a reservations department, and the reservations manager reports directly to the front office manager. The guest’s experience starts with the first interaction a guest has with a property, often during the reservation process. Reservations agents convert calls to sales by offering the guest the opportunity to not only make a room reservation but also book other amenities and activities.

Today, with online and website reservations available to guests, there is still a role for the reservations agent, as some guests prefer the one-to-one connection with another person. Additionally, the reservations team also works with online travel agencies (OTAs) and group tour operators to maximize occupancy and revenue.

Housekeeping

The housekeeping department is truly at the heart of the hotel. It is essential to a hotel’s success, as it directly influences guest satisfaction, health and safety, operational efficiency, and revenue generation. The department is responsible for maintaining the cleanliness, order, and overall appearance of guest rooms, public areas, and other facilities within the hotel. Housekeeping plays a crucial role in creating a positive and memorable guest experience, which is fundamental to the hotel industry. The housekeeping department is also the department with the largest number of employees. Nearly every hotel general manager has spent some part of their career managing this area.

Reporting to the director of rooms, the executive housekeeper manages and oversees housekeeping operations and staff including the housekeeping manager, supervisor, house persons, and room attendants. An executive housekeeper is responsible for implementing the operating procedures and standards. They also plan, coordinate, and schedule the housekeeping staff, management maintenance requests and work orders, and the ordering na inventory of room supplies. Room audits and inspections are completed regularly to ensure standards are met.

Housekeepers, or room attendants complete the day-to-day task of cleaning and preparing rooms for new guests, replenishing supplies, and coordinating with maintenance for any repairs or upgrades. House persons clean public areas including hallways, the lobby, and public restrooms, and deliver laundry and linens to guest rooms.

Guest Services

Depending on the size and type of hotel, the rooms division might include bell attendants and concierge staff. The bell attendants are uniformed employees who are often the first person that a guest encounters when they enter the hotel. They greet guests, assist with luggage, hail taxis, and provide directions inside and outside of the hotel. A portion of their total compensation comes from gratuities.

The concierge may also be uniformed but occupies their own desk in the lobby. They assist guests with restaurant reservations, tickets to the theater, concerts, and attractions as well as reserving hotel amenities like private poolside lounges, golf tee times, and spa services. Concierge services are typically found in resorts and large city center hotels; they also receive a portion of their compensation from gratuities.

The hotel security team is responsible for ensuring the safety and security of guests and the property. The security team may include security personnel, surveillance systems, and emergency response plans.

Food and Beverage Division

The food and beverage director is responsible for catering and events, in-room dining, and stand-alone restaurants and bars. The executive chef, the director of banquets, and the assistant managers responsible for each restaurant report to the director of food and beverage. The director assists with promotions and sales, the annual food and beverage budget, and all other aspects of food and beverage operations to continually improve service and maximize profitability.

Catering and Conference Services

In larger full-service hotels with conference space, a hotel will have a dedicated catering and conference services department. The director of this department typically reports to the director of sales and marketing. The catering and conference services department coordinates all events held in the hotel or catered off-site. Catering and conference events and services range from small business meetings to high-profile conferences and weddings.

Internal Operational Roles

In a hotel, there are many internal operational roles that are behind the scenes but help ensure smooth and efficient functioning across various departments. Understanding these roles and their interconnections is essential for maintaining high service standards and achieving overall business success.

Sales & Marketing

The sales and marketing director is responsible for establishing sales and marketing activities that maximize the hotel’s revenues. This is typically accomplished by increasing occupancy and revenue opportunities for the hotel’s accommodation, conference and catering space, leisure facilities, and food and beverage outlets. The sales and marketing manager is responsible for coordinating marketing and promotional activities and works closely with other hotel departments to ensure customers are satisfied with all aspects of their experience.

Human Resources

The human resources department provides guidance and advice on a wide range of management-related practices including recruitment and selection, training and development, employee relations, rewards and recognition, performance management, diversity and inclusion and health and safety.

Accounting

The controller is responsible for overall accounting and finance-related activities including accounts receivable, accounts payable, payroll, credit, systems management, cash management, food and beverage cost control, receiving, purchasing, food stores, yield management, capital planning, and budgeting.

Critical Skills for Hotel Employment 

The purpose of this chapter, for the student of the lodging industry, is to address the activities a motivated individual takes to prepare for a management position.  There is no single, clear path individuals take to become excellent managers but there are preparatory actions one takes in their entry-level employment or as supervisors that will serve them well as managers.

Consistency: The multilayered responsibilities of lodging management require a consistent steady hand in operations.  Lodging managers are required to be consistent players within the operation.  An individual needs the same steadiness in the daily discourse of directing the lodging operation.  This personality trait that walks out of the hotel at the end of the day needs to be the same personality trait that walks in on the following morning.  Consistency is not a born talent but is a learned activity.  The best place to develop this talent is through the work effort you put into your entry-level employment.  Practice consistency providing the same excellent performance today as you did on all the days prior. This practice will become a habit.

Excellence is not a single point of achievement but a series of your best efforts in everything that you do. Setting the simple goal of “doing your best,” becomes a habit.  Excellence is not about the results but the efforts to achieve results.

Attention to Detail is a critical skill that needs development. As do all these management attributes.  Practice in your employment to focus on the smaller tasks in your daily work responsibilities, take the extra step in whatever you are doing to make sure the details have been addressed.  Housekeepers, front office personnel, and all the customer service employees are given many opportunities to focus on the smallest items or activities in delivering service to the guest.

Organization is a desperately needed attribute of any lodging enterprise.  So many service delivery systems become cluttered and chaotic.  Focus on organizing your own work area on a daily basis.  This self-organizing experience will help you to organize the system you manage and the employees that work in that system.

Communication is the cultivation of past experiences that need serious attention. Lodging employees learn to choose their words carefully. Their verbal talents will naturally improve through interactions with the guest.  The verbal communication between guest and hotel professional is reported to be about 20% of the total interaction.  The key for the aspiring manager is to focus on their non-verbal messaging—posture, eye contact, and dress. And the all-important talent of learning how to actively listen to another individual.

Students seeking to develop a career in the lodging industry need to evaluate the operating principles of their management team. Does the team empower their employees to grow and develop?  Do they provide training opportunities and allow employees to cross-train in other departments. Is the working environment challenging but enjoyable? If you have positive responses to these questions, your career is on the right track.

Property Management Systems & Revenue Management

A hotel property management system (PMS) is a software application that hotels use to manage and streamline various day-to-day operations. It serves as the central hub for hotel management, including guest reservations, check-ins and check-outs, room assignments, billing, housekeeping, and other administrative tasks. A PMS helps hotels efficiently handle guest data, room inventory, and financial transactions while improving overall guest service and staff productivity. It also often integrates with other systems, such as point-of-sale, accounting, and online booking platforms, to facilitate a seamless operation.

According to hotel consultant Betsy McDonald from HVS International Hotel Consultancy, the “industry rule of thumb is that a hotel room must make $1 per night for every $1,000 it takes to build or buy. If the hotel costs $125,000 per [room], the room has to rent for $125 per night on average and you need 60% to 70% occupancy to break even”.^[1]

Hotel revenue management, also referred to as yield management, is the strategic practice of optimizing a hotel’s revenue and profitability by effectively managing room rates, inventory, and distribution channels. The primary goal of hotel revenue management is to maximize revenue by selling the right room to the right guest at the right price and at the right time.

Ideally, the hotel would sell every room at the rack rate – the published rate for one night’s stay without any discounts or premiums included. However this is not realistic, so managers use a combination of dynamic pricing, demand forecasting, inventory management, and competitive analysis to drive revenue.

Dynamic Pricing: Revenue managers use data and analytics to adjust room rates based on factors like demand, seasonality, local events, competitor pricing, and booking trends. Rates may be adjusted in real-time to capitalize on opportunities and minimize losses. Dynamic pricing has long been used in the airline industry, which is why airfares for the same flight change so frequently.

Demand Forecasting: Accurate demand forecasting is essential for revenue management. By analyzing historical data and market trends, revenue managers can anticipate demand fluctuations and adjust pricing strategies accordingly. For example, hotels will typically increase rates when a major event is taking place in the area, such as a college football game or music festival.

Inventory Management: Revenue managers manage room availability, allocating the right number of rooms to various market segments, distribution channels, and rate categories to optimize revenue.

Competitive Analysis: Analyzing the pricing strategies of competitors and adapting to market conditions is crucial to stay competitive and protect market share.

Costs per occupied room (COPR) is a figure that states all the costs associated with making a room ready for a guest (linens, cleaning costs, guest amenities).

Conclusion