Organization Structure of Hotels- Large Hotel

Organization Chart of a Large Hotel

A  large  size  hotel  as as referred earlier in   https://hospitalitylessons4u.com/categorization-of-hotels/ is a hotel with more than 300 rooms .  If you compare the organization structure of a medium hotel, you will notice in a large size hotel, the GM  may also be designated as General Manager & Vice President. The increase and diverse senior managers. There is a Resident Manager as the number 2 in the organization chat.

Each department now managing more than 300 rooms needs to have  divisions within.  In F& B Department headed by a Director, the number of managers with specialized roles are more in number. The Banquet Manager is considered a heavy-weight  as banquet functions in such hotels make up for ore than 50& of the  total F& B revenue generated.  Bar operations are specialized .with a bar manager.  Among managers would include, room service, restaurant and coffee shop managers There would be very many Senior Captains  reporting to the restaurant manager, to whom in turn report the Captains, with the waiters. There  will e a Cake shop as well as a pool side bar.

The Executive Chef & Food Production  Director shall have a team with the Sous Chef reporting to him, who in turn will supervise the working of the Chef de Partie-  each responsible for a particular cuisine’s kitchen. For example a CDP-Indian kitchen,

The Rooms Division   is headed by a Accommodation Director overseeing both Front Office and House Keeping Departments, to whom the Front Office Manager and the Executive report. The Housekeeper. The Business Center Head reports to the Front Office Manager. There is a laundry manager and a assistant manager. The Chie.f Engineer reports to the Accommodation Director or to the Resident Manager

what has to be understood here is the fact that in large hotels unlike, medium and small hotels, the Food & Beverage Department generates almost the same amount of revenue as the Front Office does. In a small  and medium hotel, the Front Office Manager because of the rooms department  being the main revenue generator  is considered virtually as the number 2 in the organization.

With such huge business volumes and financial transaction, there is a need to have a full fledged finance department headed by the Finance Director. with his team of  Food &  Beverage Cost controller,  Income accountant and Expenditure accountant , purchase, receiving and store managers.

 

 

 

 

 

 

 

 

 

Organization structure of of Hotels- Small Hotel

Every hotel, small, medium or large has an organization structure  that details the hierarchy as also, to clearly define roles & responsibilities of each employee  in relationship to the other. This, in addition, states the communication and the levels of authority.  A graphic structure is the most obvious, with details in text form for clarity.

We  have detailed the  organization structure of a small hotel.  Though, This structure shown  is a general reference, as each hotel may have their own individual organisation structure.

Organization of  a Small Hotel 

A small hotel as discussed  in Categorization of Hotels is a hotel having 100 rooms or less than 100 rooms.  The  staff  are trained to be multi-skilled, since the hotel cannot afford to employ specialists for each position. It’s not surprising, to see the front office supervisor carrying out he duties & responsibilities of a shift-in-charge, lobby manager and guest relations executive. The front office staff manage the room reservations,  in exigencies, manning the telephone operator’s role too.

The F&B supervisor is virtually he F& The F & B Manager. Over-seeing room service, dining room and banquets.

There may be 1 floor supervisor in the Housekeeping department.

Laundry services, normally being   outsourced does away with the investment of laundry machines, specialized staff for it.

 

 

 

Hotel’s four core departments

Hotels, whether small, medium or large will have the  four core  departments namely:

a) Front Office

b)House-keeping

c) Food Production

d) Food & Beverage Service

Front Office department  otherwise known as the Rooms division deals with  the reservation, registration and sale of rooms to guests (over the counter) as also billing them for the same. ( to be detailed in Front office department post).

Housekeeping – as implied, it is their responsibility to keep the public areas and guest rooms clean as also manage linen, staff uniforms and guest laundry. ( to be detailed in Housekeeping post).

Food Production- or the kitchens is the area of the chefs and cooks where all the food is prepared to be served. The  the size of the hotel and star rating will determine whether there should be one central kitchen or a central kitchen with satellite kitchens attached to each food & beverage outlet. ( to be detailed in Food Production post)..

Food & Beverage Service- They serve the food & beverage to the guest prepared by the  Food . Production department.  Service be it  Room service, or in the restaurants, bars, pool side cafe and bar, night club & discotheque all are managed by the  F& b Service. ( to be detailed in Food & Beverage  post).

These are the four core departments that  whose staff are trained to look after the guest to her/his satisfaction.

There are the support services of Engineering, Kitchen Stewarding, Purchase and stores department and many others that operate but do not generate revenue directly unlike Front Office and Food & Beverage Service departments but without whose support, the revenue producing departments would be crippled . That we shall examine in detail when we come to Major & Minor Revenue producing departments and Operating departments.

 

 

 

 

 

Categorization of Hotels

In today’s world, with hotels customized and suited to a target segment, it is but important to categorize hotels as it is impossible to categorize all under one term- hotels. Hence keeping in mind certain factors, a general categorization is done based on the following:

  • Luxury-
  • Size
  • Location
  • Ownership
  • Food Plan
  • Type of Guest

As  per luxury

Luxury hotels- are those that have a star rating. Hotels are given a 5 star -1 star rating by a classification committee with members from the state tourism department, hospitality industry and educationists. Based on a  checklist of factors & standards, the raring is awarded. For example  for a hotel to be awarded a 5 star rating, it has to have a minimum number of rooms, each room being spacious in area as  per set standards with a bathroom attached as per standards. Facilities of  running hot & cold water with separated shower area and amenities as laid down. Even the guest room has to have amenities as laid down. The hotel must have 24 hours functioning room service and coffee-shop, a bar and restaurants, swimming pool,  and other facilities that an international traveler is used to having. Based on such guidelines, the hotel is awarded the star rating it deserves. Star rating is one of the finest ways to categorize a hotel as it involves a checklist to verify. Very clear. For a,  five star rating, the hotel has to have central air-conditioning, swimming pool, health club and shopping arcade. These norms change with time.

 As per Size-

Size is determined by the number of rooms a hotel has . A 100 room or less hotel is termed small. A hotel with 100-300 rooms in today’s parlance is considered medium. In the 1960’s a hotel with 100-300 rooms was considered large. Today a hotel having 300- 600 rooms is considered large. The hotel having more than 600 rooms are termed very large. But, remember  by 2040, these  the terms small, medium, large and very large may change.

As per location

As per location, hotels are defined as:

Downtown/ Commercial/ City/ Business Hotel-  They are located the heart of the city, in the business area. Land, being very expensive, they are vertical structures, optimizing every inch of space. Hence, even the  services offered are very expensive. The typical guests who check-in here are those who come on their company’s  work or business. The location  of the hotel being  in the vicinity of their work reduces their local travel time. For such guests, time is of utmost value. Normally such hotels witnesses a very high occupancy from  Sunday evening to  Friday mornings with the.  weekend occupancy low. The guests who stay in these hotels  travel with  a fixed agenda to complete their work  in a limited time period. From Sunday late evening, they  start checking -in or early  Monday morning. The average length of stay would be 2-3 nights or 6 nights from Sunday to Friday. Daily they leave for their appointments for the day, having their lunch wherever their work takes them. Not, for them, the luxury of returning to the hotel to have lunch. They may stay back to host a client or a government official for breakfast/ brunch/lunch. Otherwise they return in the evening after the day’s work is completed. With many restaurants and fast food outlets in the same location, the guest has the choice of eating out  along with the pleasure of enjoying a movie in the multiplex nearby. The reason for downtown hotels to have  a  food plan of room rate and breakfast. It is common to see such hotels serving a buffet breakfast in the coffee-shop. This  not only gives the guest an opportunity  to enjoy a sumptuous breakfast from a variety of choices offered as also do away ordering breakfast from room -service. Awaiting the waiter, which may delay the guest.The hotel too, benefits as they  not only know the previous evening itself, the number of guests for breakfast. Since buffet breakfast is termed complimentary,  offering a wide variety of choices, all the guests prefer that then to order through room service and pay for it. Though, they are aware, the cost of the breakfast is factored in the room rate ! For the F& B  Manager and the Executive Chef, this is welcome as they need lesser human resources during breakfast times.  A majority of guests are repeat guests with payment of bills being cash earlier now replaced by credit/debit card or ‘bill to company’..

Suburban Hotel – As the name implies, these hotels are located in the suburbs. With land  costs not high, such hotels have the luxury to be spacious in comparison to the downtown hotels.  They  are used by HR Heads of  corporate companies to conduct their training & development hotels as well as seminars for their employees. As the costs of transporting employees is also reasonable, such hotels  have conference halls for such purposes. In addition to corporate guests, the suburban hotels may also  have the typical downtown hotel guests who would prefer to stay here away from the city, yet close to it. As the room rates are reasonable, and normally the  the airport  located nearby. The  traveler in transit and layovers  as well as the cabin crew may be housed here.  The average  length of stay of a guest would be  maximum about  2-3 nights for an HR  program guest,   For the layover passenger and the traveler in transit, a night or two. The cabin crew at times for a night only or at most 2 nights. With the cities going beyond the earlier set territorial boundaries, the suburban hotel have in a manner of speaking, become a city hotel, but having  a twin advantage of being in the city yet in close proximity to the airport. Thereby, reaping the benefits of being preferred over downtown hotels due to their room rates. Food plans are fixed according to the profile of the guest. For a residential HR program guests, the American plan is offered.  The   in- transit and layover guests are offered as per the guidelines of the airline while the  business guest prefers the Modified American plan. The food plans are flexible as per the guest profile. A breakfast buffet and lunch buffet in the coffee-shop is normally the trend..  For the company’s HR programs, the bill is paid by the company, the business guest paying with a debit/credit card.

Transit Hotel-  A transit hotel is located near the airport. They are ideal for passengers in transit who have to wait for some hours to catch a connecting flight, and  for airlines to house their  layover passengers and for their cabin crew.  With such a guest profile, transit hotels, charge the guest  on the number of hours they have occupied the room. The emphasis is on the comforts than the luxuries; a 24 hour room service and a 24 hour coffee-shop is a must. For in-transit and layover  guests the airline settles the bill as with the cabin crew. Centaur hotel .

Apartment Hotel are also known as Service Apartments are a new trend.  It comprises of a large & spacious hall, well furnished, with bedrooms and attached  that are also furnished.. A kitchen may or may not be an integral part. There is a caretaker who either serves food outsourced from vendors as per the guest’s choice or prepares it for them. Housekeeping services are generally outsourced.  The guests who refer apartment hotels are families, a group of company executives or even  individuals travelling on work or leisure. As there are individual bedrooms ensuring privacy and a common living room, it suits all type of travelers since, the hotel is located in he heart of the city, is economical a compared to a city hotel.The average length of stay is normally 3-4 nights.

The food plan in Apartment hotels is flexible with Bed & Breakfast being the norm with those wanting lunch and dinner to pay extra.

Motel-  Motels are to to motorists today,  what serais were to traders on the silk routes .As  the name suggests are hotels located on motor-roads/ highways. They are spacious, providing  ample parking  space for cars and buses to be parked.  They are normally single floor buildings with about 20- 50 rooms. In India, the increase in incomes after liberalization in 1991 along with the increase in the double income families (both husband and wife working), has seen the increase in the purchase of cars).  This has resulted in families taking a weekend break by driving to a scenic place outside the city, to enjoy with family.

When the family takes their annual holidays, normally in India, they prefer to go back home- their ancestral households in the village or in another town or, to stay with a sibling/ relative/ friend.   They leave early in the morning,to enjoy their breakfast at the motel en-route. The motels en-route, stopping over  for lunch tea and dinner if need be as well as to stay over for the night, if need be.  For the motorists to start off early morning to their destination.  Motels shall have a 24 hours room service with one large dining hall to cater to the guests.

The average length of stay normally is for  1 night or 2 nights. Some families may schedule a family outing with other families to drive to a good motel to spend the long weekend there.  Motels charge room night charges on an hourly basis. There is no fixed check-in  or check-out time as the guest is charged on the number of hours the room is used.

The mode o payment is restricted to cash or debit/ credit cards.

The increase in the number of motorists on the highways has seen the mushrooming of motels along the highways. Today’s motels  not only offer guestrooms with bathroom attached. In addition, they may also have facilities  of ATM,  a shop selling OTC  drugs, sanitary napkins, mineral water bottles, biscuits etc which the family may require on their journey.

The food plan offered is European plan.

Resort-  Resorts are located in places with natural settings. For example: beach resort, hill resort, jungle resort etc, far from the city limits.

Tourists and holidaymakers form the majority of clientele, but today,  companies, to motivate  their employees conduct their HR  programs in resorts. The service is relaxed  with the hotel staff usually wearing the resort’s  branded T-shirts as uniform instead of the formal wear one is used to seeing in hotels.The building is normally spread out with very spacious guest rooms,and very spacious public areas too.  The rooms could be in the form of cottages or villas or in a row house pattern.

The guests normally if they are on holiday may choose to rest and rejuvenate as also go out to enjoy the natural beauty. Since the resorts are in an areas  far away from human habitation, there would be no  possibility of any restaurants nearby. Hence resorts normally offer an American Plan. There would be a 24 hours room service and a  multi cuisine -restaurant . Dinner might be ‘al- fresco’- on the lawns or near the artificial waterfalls to offer the guest a different experience.For HR  programs, theme dinners are planned with the theme changing daily.

Camp accommodation-  It’s a trend today for people living in cities  to enjoy a  different experience. Camp does that.  They travel  outside the cities, fora trekking expedition  Their vehicles are parked in a spacious area meant for parking. They leave early in the morning to trek carrying essentials to return by early evening to refresh themselves for a high tea., enjoy a ‘campfire’ experience weather permitting,  or sit around resting their limbs sharing their experiences singing songs, to tuck in an early  wholesome dinner. They sleep in the protection of weather-proof tents. These locations are safe from wild animals and hooligans as the organisation managing this property undertakes this responsibility.  The food served is normally from the local produce, wholesome and varied. Youngsters form the clientele. Nowadays HR  programs for leadership, team building and induction of new employees also form a growing slice of the clientele.

As per Ownership

Proprietorship-  A  hotel owned by an individual/ family is a proprietorship hotel. It  would normally be a stand alone hotel, of medium size.  Such hotels  run  into a problem, when they want to expand from a stand alone hotel to a chain. Then they face a paucity of funds.A single owner proprietorship  without a proper grooming of the next generation to take over usually finds itself into problems.

Partnerships- happen when more than one person join for a common business  objective. Each could be be an expert in their own areas. For example  One partner to manage finance, one to overlook marketing and likewise. As each partner brings in her/his funds, partnership firms have more resources than proprietorship hotels. But, unless, the partners work in coordination without any friction, the objective of managing a successful hotel as well as expansion too, shall be smooth.

Private Limited Company-  In this venture,  shares  of a company are privately owned; could be business acquaintances, family members or friends.  Usually the person who has he highest number of shares becomes the Managing Director and the others Directors. Unlike partnerships the Director’s liability is limited to the amount they have invested. Private Limited companies need a formal arrangement with the company to be registered with the Registrar of companies.  This enterprise has more resources than that in a partnership.

Public Limited Company- In this venture, the shares of the company are offered to the public at large as the company is listed on the stock exchange.  Depending upon the company’s perception by the  individual investor and institutional investors, the venture’s shares may be oversubscribed or sink with out a trace. It is the people on the board who make the difference in a positive perception or otherwise. Such ventures enjoy the luxury of huge funds at their disposal. They hire competent and experienced employees  thereby , ensuring the growth, sustainability and progress of the company. Chain hotels usually, are owned by Public Ltd Companies.

As per Food Plans

A food plan is  a pricing tactic in which the room rate includes room rate only and may or may not include food component.

There are many types of food plans. We shall examine each in detail as  also, understand how each of them are  broadly linked to a category of hotel and a segment of guest.

European Plan- Obviously, the name indicates it originated in Europe. The room rate does not include any food component. Any meals consumed by the guest is charged. Used to be offered by downtown/city/commercial hotels in the 70’s & 80’s. The guest segment are normally being businessmen and company executives who may choose to  eat out. Motels and Transit hotels may also , prefer to offer European Plan.

Continental Plan-  Continent in this context also refers to Europe. Continental Plan includes room rate and continental breakfast with other meals being charged. Continental breakfast includes fruit juice,  bread/ toast, butter, jam, marmalade  and honey with coffee/tea.  Again, the segment of guests who prefer this are those who value time. Company executives on work and businessmen.  Earlier typically offered by city hotels.

Bermuda Plan- This food plan includes room rates and American breakfast, a very heavy breakfast.  The American breakfast includes fruit juice, toast, eggs to order, cereals, bacon/sausages and preserves with butter, jam, marmalade and honey with coffee/tea.  Americans generally start their day with a heavy breakfast as they start work  early.   Usually offered  in hotels where the number of  American guests travelling on work is more.

American Plan / AP/ Full Pension-   In this plan room rates include American breakfast, Lunch and Dinner. Conference Hotels and Convention hotels offer this plan as the guests have to be engaged in the hotel itself for the  meeting/ convention  they are attending.  Some resorts, offer this  food plan when the holidaymakers or group have planned not to go out but to just relax, refresh.

Modified American Plan/ MAP/  Demi -Pension – Here as you must have logically presumed, room rates include American breakfast (as detailed above in American Plan),  lunch or dinner. Resorts favor MAP as the group/ holidaymakers have a heavy breakfast to go out on excursion/ sightseeing to  have lunch outside.

 Footnotes:

  •  Today,  hotels across the world factor in the breakfast cost  into the room rate to offer guests a buffet breakfast in the coffee-shop.
  •  A guest ordering breakfast in the room has to pay for it.
  • It is not unusual to find an electric kettle with sugar sachets, tea bags and coffee powder sachets for  the guest to make her/ his tea/coffee to their satisfaction.
  • Tea ordered from Room Service  is charged.

 

Type of Guest

Business Hotel- In today’s parlance, a business hotel is typically the city hotel. Meant for the guest travelling on business; the corporate executive. The accent is on speed.  Guests have access to hi-speed internet. With lady executives travelling for work, such hotels, may offer them  rooms on a floor only meant for lady guests with lady staff to wait on them. Corporate guests  may have a couple of floors dedicated to them  offering them the services of exclusive business lounge, small lounges to meet a guest.  Maybe, a library also with valet services. Needless to mention, the guest rooms would be much more spacious than the other rooms. The bathrooms too, shall be luxurious in terms of space, facilities and amenities.  Limousine services,  same day laundry, separate elevators and pre-registration formalities are just an indicator of the services  offered. Nowadays, the hotel staff checks-in for the guest on departure at the airport for the guest to spend that much time attending to work on hand. The guest on reaching the airport is handed over his boarding card.  Other services these guests enjoy in the rooms may be  a giant screen TV and a  customized mini-bar.

Convention Hotel- A convention hotel  is a huge imposing infrastructure as it is meant to accommodate  2000-3000 guests, normally delegates attending a convention.

More than one plenary  hall are there to seat the participants.  Other customized facilities include an office for the hosts, small meeting rooms, very large areas with large desks for registering participants,  The dining halls would be huge, with at times a private area for the hosts.  There would be almost 500 rooms in such hotels with twin bedded  rooms, The hotel will include the services of audio-video equipment on request. Such hotels are located normally in the city or in the suburbs. Parking space is  large to accommodate   the large numbers of cars, mini buses and coaches.  Nowadays, convention hotels are planned & built with the  5 star hotel adjacent to it. If need be, the hotel’s resources of manpower and services can be rushed i a jiffy. Besides, in case of over-booking, delegates can always  be accommodated in the hotel.

Conference Hotel- may be termed as a scaled down version of a convention hotel.

 

Luxury Rail Hotel-  The first luxury rail hotel would be the Orient Express plying on the London- Venice -London route. Agatha Christie, the iconic crime fiction author is known for her thriller ‘Murder on the Orient Express.’ Passengers are guests with the comforts of a 5 star hotel on board with spacious,  luxuriously designed  private compartments with attached baths and butler service, dining room, bar et al.

But today luxury on the rails is redefined by the Palace on Wheels train that ferries passengers from Delhi to Agra, Jaipur and other historic places on the golden triangle of Delhi- Agra- Jaipur.

The Palace on Wheels has coaches that once was used by India’s erstwhile Maharajas.   It is booked a year in advance by the foreign tourists. And to believe that these coaches were lying idle. A civil servant on seeing these coaches, thought of a Palace on Wheels.   The Indian Railways and the Rajasthan Tourism Corporation operate this luxurious train. Other trains in India are the Deccan Odyssey and the Golden Chariot.

 

Casino Hotel- A casino is a place where gambling is organized for the benefit of patrons. Las Vegas, in America, is  the casino capital of the world. People fly there just to gamble. Besides playing  poker,  blackjack,roulette games there is the chance to make money on the slot machines. The hotels with casinos attached see the guests waking up late as the casinos open  in the evening to go on past midnight. The gamblers wanting to maximize their time at the table tend to eat and drink  in the casinos at times seated at the table. The rooms are luxuriously designed for the benefit of those who fly in, as they  require such luxuries. Casino hotels make huge revenues from the sale of tobacco and alcohol.

Condominium- is an accommodation in which a owner of an apartment  wants to  rents out / leases his apartment, to travelers to the city. Such units are found in an apartment block  specially designed for this purpose, A caretaker is there to assist the guests. The owner informs the caretaker whenever he  should not let out the unit, as per his needs, usually whenever he wants to  stay there. All the conveniences are provided. The owner has to pay an annual maintenance fee  or the air-conditioning, water and housekeeping services.

 

Time-share hotel- In this concept a unit of accommodation, be it a suite in a resort or a room or a cottage is owned  by more than one owner who have invested in it. This unit is rented out as in a hotel. A kitchenette is provided in case the guests want to prepare their own meals with groceries & other essentials available within the complex. Or, there is a dining are for food & beverage. The owners inform the management in advance of their visit for the unit to be blocked. Families on holidays form the typical guest segment along  with honeymooners.

 

 

Boutique hotel- is a little difficult to explain. It  was in the ’80’s this term was used by hotels in London and Paris. It could be a unique theme or a unique selling point of a hotel that it is termed thus. A  classic example of a boutique hotel is the Park hotel Anna Salai, Chennai,  India. It is built on the grounds where earlier a premier film studio existed. The hotel interiors are thematic  with films as the backdrop. Boutique hotels need not be restricted only to cities, resorts may well be boutique properties.

 

Heritage hotel- Any  infrastructure or residence built before 1950 is termed as heritage. Reason why residences built before 1950 have been renovated retaining the heritage features to be converted into hotels. The typical guest  segment  being families, honeymooners and holidaymakers.

Palace hotel-  The erstwhile royalty’s residences in India , the palaces  needs  large resources to maintain. The royalty stripped off their  privileges after Independence   did not have the means and resources to do so. Hotel chains sensing an opportunity stepped in. The Rambagh Palace Jaipur, the Lake Palace & Shiv Nivas Udaipur and the Umaid Bhavan Palace are now luxurious hotels. Not only was a niche brand created but in the process, the erstwhile royalty had the satisfaction of seeing their magnificent palaces maintained in addition to be a good source of income. Besides, as a marketing  tactic, the hoteliers promised the guests a tea or a dinner with the Maharaja. This gave the Maharaja an opportunity to wear his royal garments once again, with the guests charged a princely sum for the same returning feeling enriched carrying home a photograph posing witth the Maharaja . As you must have reasoned out the majority of guests are foreign nationals on  a dream holiday travelling usually in groups.

 

Youth hostel- The best example of a youth hostel is the YMCA & the YWCA. Typically, as suggested for youths, hence dormitories and common bathrooms  are found with some rooms with attached bathrooms. A common dining hall is there  for the three meals.

Length of stay  is limited to 3-4 nights.

 

Cruise liner- Imagine you are in a 5 star hotel with an area of 250 meters length and 40 meters breadth with facilities of  your room termed as a cabin,with a casino, shops,  fitness center,open swimming pool and covered swimming pool, a fine dining room, basketball courts, table tennis facilities, tennis facility, library and all the other services and amenities offered by a 5 star hotel on board a ship, designed for this purpose. Cruise liners  offer this luxury all over the world.

House-boats- the house boats in Kerala’s backwaters which  ferry the tourist in comfort with accommodation too while experiencing  the joy of  the different hues of nature,

 

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