Modern Hotel

Operations
Management
Michael N. Chibili (Editor)
Latifa Benhadda
Shane de Bruyn
Michael N. Chibili
Conrad Lashley
Saskia Penninga
Bill Rowson

Noordhoff Uitgevers Groningen/Houten

© Noordhoff Uitgevers bv
 Foreword

Hotel operations are chiefly concerned with providing accommodation, food

and drink services. This requires managers to have a good understanding of
room, restaurant and kitchen operations. In some hotels, these core ser-
vices are augmented with leisure and fitness facilities, or with conference
and banqueting services that attract additional guests and revenue. In
some cases, the customer experience requires employees having a direct
interface with customers. These ‘front-of-house’ operations involve services
produced in the presence of customers. Reception, restaurant, bar, and con-
cierge services are all examples of settings where hotel employees and
their activities are on display. Staff performance has an immediate impact
on customer experience, and can thereby influence levels of customer satis-
faction and dissatisfaction. In other cases, services are produced ‘back-of-
house’; customers rarely see the production processes involved taking
place. Kitchen services and laundry are the most obvious examples: cus-
tomers do not usually see the food being cooked, or items being laundered.
Housekeeping and room cleaning represent something of an ‘in-between
world’ as guests are not typically present when the room attendant services
the room. The hotel room is ‘front-of-house’ because it is where guests
‘consume’ the accommodation service, but it does have a ‘back-of-house’
dimension since the guest is not present when the room is being serviced
for next night’s sleep. These various services and settings found in hotel ex-
ploitation mean that a hotel manager’s work is complex and requires a fa-
miliarity with a range of operational skills.

While the aspects of ‘front-of-house’ and ‘back-of-house’ feature in most ho-

tels, the service levels and intensity of customer contact varies across hotel
service types and brands. The size and complexity of the food, drinks and
accommodations offered to guests range from simple and quite limited, e.g.
budget brands, to more complex and elaborate, e.g. luxury hotels. Budget
brands have been a growing phenomenon in recent decades. Their key fo-
cus has been providing dependable accommodation including en-suite facili-
ties, but with limited additional services. Self check-in is a feature of some
groups, while vending machines or food services limited to a simple buffet
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style breakfast are common in other establishments of this nature. These

simpler services require low staffing levels and, in some cases, routine un-
skilled labour. Luxury hotels typically offer a more personalised service, à la
carte restaurants, cocktail bars and accommodation with dedicated butlers
and servants, all requiring the employment of highly skilled and trained per-
sonnel. Therefore, a manager’s particular tasks will be a function of the ho-
tel’s service level and brand offered to clients. Essentially, however, a hotel
manager’s role is concerned with the same arrays of issues: managing the
delivery of food, beverage and accommodation services; ensuring service
quality standards match guest expectations; managing the employees who
produce these services; and cost minimisation, income generation, and
profit maximisation.

These operational dimensions of the hotel manager’s role, however, are just
one branch of the managerial skill set needed. First and foremost, a hotel is
a business; it needs to operate within commercial boundaries, minimise
costs, increase revenue and maximise profits. That being said, there are
some unusual features of the hotel business in that its services are perish-
able and intangible. Additionally, they cannot easily be stockpiled during off-
peak hours, to be used when demand increases. Hotels have to be man-
aged in such a way as to ensure maximum revenue every day. Demand
patterns are often difficult to predict and are influenced by forces beyond a
manager’s control; yet any room not sold on a specific day is an opportunity
lost forever. The parallel with passenger planes is clear, and like managers
of airline organisations, hotel managers are concerned with levels of occu-
pancy and revenue management. The ideal position, where every room is
sold at the official room rate, is rarely achieved; a hotel manager is typically
concerned with maximising revenue on any one day. Price discounting and
forward selling to accommodation agents are two techniques used, but
there is no magic formula. Hence, hotel managers are making judgments
day by day to maximise the average revenue per room. Edited by Michael N.
Chibili, the chapters are authored or co-authored as shown in this foreword.

The Hospitality Industry – Past, Present and Future – Michael N. Chibili pro-
vides an oversight of the hotel sector’s history and traditions. This chapter
shows that providing accommodation from a home base is a by-product of
travel. As people began trading goods across increasing distances, there
was a need for accommodation at regular points along the journey; these
origins have shaped much of the industry’s features still used today. Hotel
locations are often at a point of destination or along travel routes. The chap-
ter discusses these origins with current trends and developments in hotel
provision.

Rating Systems and the Structure of the Hospitality Industry – Michael N. Chi-
bili explores the issue of hotel rating systems. Hotel ratings, or rankings,
provide potential visitors with an idea of what a hotel offers in terms of fa-
cilities or services. This is particularly valuable for travellers who are plan-
ning trips to unfamiliar destinations. Rating systems help meet customer
security needs as they help guests develop an understanding of what to ex-
pect. That being said, there are a number of different systems across the
globe and definitions of what constitutes a particular star ranking are not
universally agreed upon.
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Hotel Management – Viewed from Above – Michael N. Chibili discusses typi-

cal hotel structures where the general manager is supported by a team run-
ning the immediate operational departments, such as food and beverage or
rooms departments. In larger hotels, there is likely to be a number of other
supporting departments; human resource management, accounting, reve-
nue management, reservations, and the like. Larger hotels may contain sev-
eral tiers between frontline service staff and the general manager. This in
turn creates problems for communication and necessitates the creation of
a culture dedicated to the aims and objectives of the hotel.
 The Rooms Department – Saskia Penninga and Michael N. Chibili explore
the specific operational issues associated with providing guests with ac-
commodation. The precise nature of service standards covering both tangi-
ble and intangible aspects of the accommodation experiences enjoyed by
guests differ between hotel types and brands, though there are some simi-
larities. Servicing of rooms every day, preparing for new guests, re-servicing
rooms for existing guests; are all common features regardless of hotel rank-
ing or pricing. In addition, cleaning public spaces is typically the responsibil-
ity of this department.

The Food and Beverage Department – Shane de Bruyn and Michael N. Chibili
highlight the importance of food beverage operations within a hotel manag-
er’s remit. Providing food and beverages in hotels can be an important
source of revenue and can also reinforce the hospitable nature of a brand.
It is, however, a difficult service to control because of skill sets needed and
potential wastage created by food that remains unsold. Some budget hotel
chains have met this challenge by removing, or at least minimising, the food
services offered to guests. In other cases, menus have been structured
around a simple, one-step process, ensuring that training needn’t be ad-
vanced beyond simple skills.

Hospitality Human Resource Management – Dr. Bill Rowson discusses the

processes whereby employees are recruited, trained, appraised and reward-
ed for their efforts. The involvement of employees in delivering hotel servic-
es is not always treated with the significance required. Apart from during im-
mediate interactions of frontline employees with customers, suitably trained
staff members have the potential to create a genuine competitive advan-
tage through an expression of hospitability, making sure guests feel genu-
inely welcome.

Marketing for the Hospitality Industry – Dr. Bill Rowson explores marketing
within the delivery of hospitality services. Central to marketing is a clear un-
derstanding of the customer profiles of guests a hotel wishes to attract.
Apart from the demographic profiles of the guests, there needs to be a
clear understanding of the reasons guests use the hotel. On the basis of
this information, hotels can send messages targeting those most likely to
be interested in both the message and the service on offer. Accommodation
pricing and promotional offers are key to ensuring hotels have the maximum
attainable average revenue per room.

Financial Control and the Accounting Department – Michael N. Chibili high-

lights the key importance of cost control and revenue generation in assist-
ing the general manager to generate profits. Additionally, the processes
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whereby guest bills are produced and processed are important factors.
Given the issues discussed earlier, the Finance department assists in pro-
viding appropriate information needed by the manager to make pricing and
occupancy decisions. Low prices may ensure higher occupancy levels, but
there may be a point where a few empty rooms help maintain higher level
room rates for those that are sold.

Facility Engineering and Maintenance – Michael N. Chibili explores the pro-

cesses that are key in ensuring guests have facilities that operate in the way
they expect. The failure of these tangible aspects of the guest experience
can be a major source of dissatisfaction. In some instances, broken or mal-
functioning facilities cause dissatisfaction, but a level of building and accom-
modation décor also helps create a general impression of the quality of the
hotel. The refurbishment of rooms needs to be carefully planned, because
this will require rooms being taken out of use, thereby making them unavail-
able for sale to guests.

Managing Safety and Security Issues – Michael N. Chibili emphasises that

safety and security are at the core of guest concerns. Their decision to
choose to stay in a known brand hotel is frequently an expression of a de-
sire to be secure when away from their home base. On the other hand, ho-
tels are by their nature points of social engagement where individuals meet
with others. A hotel represents both a place of comfort and of neutrality.
Managing these tensions is a key issue; an overly secure system of access
may create an impression of inhospitality, but an open access policy may
cause a risk of potential abuse by terrorists or others bent on doing harm to
guests.

Managing Hospitality Services – Professor Conrad Lashley highlights the fac-

tors that present all service providers with dilemmas that have to be man-
aged. The intangible nature of the service experienced, the heterogeneity of
the service encountered, and the emotional dimensions of the service en-
countered mean that techniques of mass production employed in manufac-
turing are not available to hotel managers. Guest themselves are frequently
driven by contradictory needs – selecting brands in order to know and recog-
nise the service offering, but also wanting to be treated as individuals. The
emergence of hotel brands has produced benefits by enabling focus on
identified needs, but also presents hotel organisations with the problem of
having to deliver to brand standards across all units and across geographic
and cultural boundaries.

Conceiving Hospitality Processes – Michael N. Chibili explores the process

through which hotels deliver the accommodation, dining and drinking experi-
ences to guests. In some budget brands, the service encountered has been
reduced to a minimum, and even in more up-market hotels there is wide-
spread use of self-service buffets and self-check-in/out. In other cases,
menus have been designed around dishes that require one-step cooking;
this ensures the skills required can be learnt quickly, thereby making the
use of more numerous, low-skilled, and cheaper labour forces feasible.

Designing Hospitality Processes – Michael N. Chibili explores customer touch

points between the hotel facilities and staff, which contribute to guest and
supplier experiences. These touch points can be designed to enhance
© Noordhoff Uitgevers bv

greater sensitivity to the needs of the guest or supplier. A thorough exami-

nation of each touch point can help enable more effective relationships be-
tween the parties concerned.

Delivering Hospitality Services – Professor Conrad Lashley discusses the key

importance of customer satisfaction in delivering repeat business, building
repute and generating new customers. At heart, this requires hotels to de-
liver what they say they will. Frontline employees are at the centre of the
processes that ensure customer satisfaction. Making sure employees are
aware of the brand standards and are trained with skills appropriate to meet
 them is important. In these circumstances, labour retention is crucial; a sta-
ble workforce is more likely to develop personal bonds with guests.

Managing Change in the Hospitality Industry – Latifa Benhadda and Michael

N. Chibili demonstrate that managing change is crucial in a dynamic trading
situation. The need to review operational practices, services on offer, and
guest expectations in this ever-changing environment is vital if a hotel is to
maintain a competitive position. At the same time, change can be seen as
threatening, difficult, something to be resisted. A hotel manager has to cre-
ate an atmosphere and culture that encourage change and innovation. They
must embrace an innovative climate of excitement about change, recognis-
ing that frontline employees are the most aware of these changes and de-
velopments.

Managing Quality in the Hospitality Industry – Michael N. Chibili highlights

that managing quality ensures that customers obtain the service experience
they expect. Central to this is the need to establish a clear definition of ser-
vice standards being offered and presented to guests. As such, service
quality management requires an approach that monitors the services deliv-
ered to guests, identifying and correcting points of service breakdown when
they occur.

January 2016

Dr. Craig Thompson, FIH, FHEA

Head of School, Stenden Hotel Management School,
Leeuwarden, the Netherlands
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 Table of contents

1 The Hospitality Industry – Past, Present and Future 17

1.1 Introduction 17
1.2 History of the Hospitality Industry 17
Summary 45
Questions and assignments for reflection 47

2 Rating Systems and the Structure of the Hospitality Industry 49

2.1 Introduction 49
2.2 Rating systems 49
2.3 Classification 56
2.4 Hotel organisation 74
2.5 Guests and segments 83
Summary 89
Questions and assignments for reflection 91

3 Hotel Management – Viewed from Above 93

3.1 Introduction 93
3.2 General Management 93
3.3 Other members of the Executive Team 100
3.4 The Property Management System 104
Summary 116
Questions and assignments for reflection 117

4 The Rooms Department 119

4.1 Introduction 119

4.2 A guest’s journey 119
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4.3 Reservations 120

4.4 The Front Office 131
4.5 Housekeeping 147
Summary 160
Questions and assignments for reflection 163
5 The Food and Beverage Department 165

5.1 Introduction 165

5.2 Types of Food and Beverage Service Operations 170
5.3 The restaurant business 191
5.4 Restaurant operations 199
5.5 Room service 212
5.6 Conference and Banqueting 216
5.7 Hotel bars 230
Summary 235
Questions and assignments for reflection 238

6 Hospitality Human Resource Management 241

6.1 Introduction 241

6.2 Human Resource Management functions 241
6.3 The importance of Human Resource Management to hospitality managers 242
6.4 New approaches to organising human resources 242
6.5 Trends shaping human resource management in the hospitality industry 243
6.6 Trends in the nature of work 245
6.7 Recruitment and Selection 245
6.8 Training 250
6.9 Motivation 253
6.10 Performance Management 254
6.11 Managing wages and salaries 258
6.12 Other matters 261
Summary 264
Questions and assignments for reflection 267

7 Marketing for the Hospitality Industry 269

7.1 Introduction 269

7.2 What is marketing? 269
7.3 Hospitality marketing and sales 276
7.4 Current trends in hospitality marketing 280
7.5 Planning and creating service products 287
7.6 Importance of service employees in sales and marketing 287
7.7 Digital marketing in the hospitality industry 290
Summary 294
Questions and assignments for reflection 296
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8 Financial Control and the Accounting Department 299

8.1 Introduction 299

8.2 The accounting function and systems 299
8.3 Principal financial statements 304
8.4 Management reports 312
8.5 Some accounting issues 314
8.6 Forecasting and budgeting 324
Summary 329
Questions and assignments for reflection 332
 9 Facility Engineering and Maintenance 335

9.1 Introduction 335

9.2 Roles and responsibilities 335
9.3 Types of maintenance 344
9.4 Hotel energy and water management 355
Summary 373
Questions and assignments for reflection 375

10 Managing Safety and Security Issues 377

10.1 Introduction 377

10.2 Safety and security legislation and programmes 378
10.3 Security systems 381
Summary 407
Questions and assignments for reflection 409

11 Managing Hospitality Services 411

11.1 Introduction 411

11.2 About services 411
11.3 Hospitality service types 415
11.4 Managing the service experience 417
11.5 Downsides 418
11.6 Hotel types and examples 420
Summary 423
Questions and assignments for reflection 425

12 Conceiving Hospitality Processes 427

12.1 Introduction 427

12.2 Process characteristics and performance objectives 427
12.3 Service concepts 445
Summary 456
Questions and assignments for reflection 459

13 Designing Hospitality Processes 461

13.1 Introduction 461

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13.2 Configuring the processes 461

13.3 Capacity 474
13.4 Supply chain management 480
Summary 487
Questions and assignments for reflection 489
14 Delivering Hospitality Services 491

14.1 Introduction 491

14.2 Same pool of customers 491
14.3 Satisfiers and dissatisfiers 492
14.4 Characteristics of the experience 493
14.5 Service quality management systems 494
14.6 Hospitableness 503
Summary 506
Questions and assignments for reflection 507

15 Managing Change in the Hospitality Industry 509

15.1 Introduction 509

15.2 Change and organisational culture 523
15.3 Models of change process 530
15.4 Resistance to change 535
15.5 Managing the people side of change 544
Summary 562
Questions and assignments for reflection 564

16 Managing Quality in the Hospitality Industry 567

16.1 Introduction 567

16.2 Quality management systems and models 567
16.3 Analytical tools for continuous improvement 605
Summary 615
Questions and assignments for reflection 617

APPENDICES 618

APPENDIX A 618

APPENDIX B 619

APPENDIX C 621

APPENDIX D 623

APPENDIX E 629
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APPENDIX F 631

About the editor and authors 633

References 635

Register 642

Illustration Acknowledgements 654

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16
 17

1 1

The Hospitality Industry –

Past, Present and Future
M. N. Chibili

§ 1.1 Introduction
The history of the hospitality industry is closely linked to that of civilisation.
It is a history that has evolved as major civilisations appeared and devel-
oped. Facilities offering hospitality to travellers and guests have existed
across centuries; they have evolved in their offerings by constantly adapting
to the wishes of their most important stakeholders. This chapter introduces
the hospitality industry from the perspective of its evolution over time and
covers its origins as far back as ancient times through its transformations
during centuries of pre- and post-industrial revolution, eventually ending with
a look at what the future holds for the industry.

§ 1.2 History of the Hospitality Industry

The hospitality industry, which belongs to the larger business group called
the travel and tourism industry, is found within the services sector. The hos- Services sector
pitality industry, which, according to the United Nation’s World Tourism Or-
ganisation, will be the world’s largest industry by 2020, generally includes
the service organisations that cater to people’s needs for food, drinks, and
accommodations, as well as recreation, travel and entertainment. To be
able to better understand the complex world of the hospitality industry, it is
necessary to trace its origins, which began in the early days of human civili-
sation, and to see how it has evolved to the present day.
© Noordhoff Uitgevers bv

1.2.1 The Origins of the Hospitality Industry

There is evidence of the existence of the hospitality industry dating back far
into ancient times. Such evidence can be traced back to around 4000 BC,
and owes much to the Sumerians with their invention of writing (cuneiform),
money, and the wheel. All these inventions permitted people to be able to Inventions
move from place to place for pleasure, and be able to pay for any services

United Kingdom, London: The Russell Hotel

 18 CHAPTER 1

received. Prior to these inventions, nomadic peoples travelled as a way of

life, seeking out any conveniences from place to place. In those days, peo-
ple travelled either on foot or on animals and as such could not cover great
Convenient distances in a day. Upon nightfall, they would seek convenient places that
places could provide them with such basic necessities as water, food, fuel, and
1
shelter. When they travelled in groups for safety purposes, these groups
were called caravans. Figure 1.1 is an illustration of a combined caravan of
horses and camels.

FIGURE 1.1 A caravan of horses and camels approaches Aleppo from the
Mediterranean coast in the late seventeenth century, from Cornelis Le Bruyn,
Voyage to the Levant (1702)

The distance that could be covered in a day depended on the mode of trans-
port travellers were using. At points where they had to stop, lodging facili-
ties tended to appear. These would have been known by different names in
various parts of the world. Some examples include ryokan in Japan, dhar-
amshala in India, pousadas in Portugal, hospitia in Italy, hôtel in France, inn
in Europe as a whole, and relay houses in China.
© Noordhoff Uitgevers bv

Further evidence of the existence of the hospitality industry can be derived

Code of from the Code of Hammurabi, which was established around 1780 BC. As
Hammurabi shown in the translation in the fragment in Figure 1.2, the code also includ-
ed rules for tavern-keepers and inn-keepers on various issues.

Hammurabi was the ruler of Babylon from 1792 BC to 1750 BC. The Code
of Hammurabi (which meant ‘The Code henceforward’) was discovered by
modern archaeologists in 1901. This nearly complete example of the Code
is carved into a black diorite stele in the shape of a huge index finger 2.25
metres tall. The Code is inscribed in the Akkadian language using cuneiform
 THE HOSPITALITy INDUSTRy – PAST, PRESENT AND FUTURE 19

FIGURE 1.2 Translated fragment from the Code of Hammurabi (Source: [Link])

108 If a tavern-keeper (feminine) does not accept corn according to gross weight
in payment of drink, but takes money, and the price of the drink is less than
that of the corn, she shall be convicted and thrown into the water.
109 If conspirators meet in the house of a tavern-keeper, and these conspirators 1
are not captured and delivered to the court, the tavern-keeper shall be put
to death.
110 If a ‘sister of a god’ open a tavern, or enter a tavern to drink, then shall this
woman be burned to death.
111 If an inn-keeper furnish sixty ka of isakani-drink to … she shall receive fifty
ka of corn at the harvest. Black diorite stele with
the Code of Hammurabi

script carved into the diorite stele. It is currently on display in the Louvre
Museum in Paris, France.

1.2.2 Evolution of the Hospitality Industry through Time

As indicated in the previous section, the history of the hospitality industry is
closely linked to the civilisations of the past. This section draws its inspira- Civilisations
tion from Levy-Bonvin’s (2013) article entitled Hotels: A brief history, as pub-
lished in [Link]. The Greeks developed thermal baths in vil-
lages designed for rest and recuperation, while the Romans developed an
extensive network of roads throughout their empire. This extensive network
of roads created the need for lodging facilities for travellers, which later cul-
minated in the construction of mansions that catered to the needs of those
travelling on imperial duty. The Romans also constructed thermal baths
across their empire, which span across most of Europe and the Middle East.

Before the Industrial Revolution

Prior to the Industrial Revolution (which covered the period from 1750 to
1850), important hospitality industry-related events included the following:
• The construction of extensive networks of roads and lodging facilities by
the Romans. They built some 10,000 inns stocked with food and bever-
ages 25 miles apart, to aid their officials as they travelled across the Ro-
man Empire.
• The appearance of caravanserais as resting places for caravans along the
various routes of the Silk Road between Europe and Asia. An example of Silk Road
a caravanserai is that of Qalat el-Mudiq in Syria, shown in Figure 1.3.

FIGURE 1.3 The caravanserai in Qalat el-Mudiq, Syria

© Noordhoff Uitgevers bv
 20 CHAPTER 1

• Monasteries and abbeys became establishments that offered resting

places for travellers on a regular basis.
• Relay houses were set up in China and Mongolia for travellers and couriers.
• Ryokans appeared during the Nara period (c. 700 AD) in Japan; some of
them have survived to date, such as the Nisiyama Onsen Keinkan in
1
yamanashi, which was built around 705 AD, and has been owned and op-
erated by more than 52 different owners, or the Hoshi Ryokan in Ishi-
kawa, which was built around 718 AD, and has been owned and operated
by the same family for 46 generations.
• In Europe, many inns appeared. These were relatively small and simple
operations, basically fulfilling the housing needs of travellers by providing
them with a spare room at a price. Some of these inns have remained
famous to date, such as:
– The Angel Inn in Grantham, Lincolnshire, United Kingdom, which was
opened in 1203 and is regarded as the oldest surviving English inn. It
was built as a hostel for the Brotherhood of the Knights Templar, and
is today called the Best Western Angel and Royal Hotel.
– The Auberge Cour Saint George in Ghent, Belgium, which was opened
in 1228, and is now called the Hotel Best Western Cour St. Georges.
– The Auberge Des Trois Rois in Basel, which was opened in 1681 as
lodging for the gentry, and is now called the Grand Hotel Les Trois
Rois.
Laws • Both in France and in England, laws were established which required ho-
tels to keep a register of their visitors. Thermal spas were also construct-
ed in both Karlovy Vary (Carlsbad) and Marienbad in what is now the
Czech Republic.
• During the 1500s, the first travellers’ guide books were published in
France. Signs began to be used to identify those establishments that
had something special to offer travellers.
• During the 1600s, stagecoaches that used a regular timetable began op-
erating in England. This greatly changed the way people travelled, and
also influenced the need to house them at their journey’s end. The roads
became safer and new junction points were created, which eventually led
to the founding of new towns.
• By the mid-1600s, clubs and lodges had become widespread across Eu-
rope and America.

From the Industrial Revolution till 1899

The period of the Industrial Revolution had a very significant influence on
the history of the hospitality industry. This period was characterised by rapid
changes in economic and technological development. The manufacturing
Significant and transport sectors saw very significant developments, and their effect on
developments the hospitality industry was a proliferation of the construction of hotels eve-
© Noordhoff Uitgevers bv

rywhere in Europe and America. These hotels were needed to cater to the
needs of the rising establishment of managerial and middle classes taking
care of new companies, as well as a growing demand for both leisure and
business travel. These classes had the necessary wealth to be able to
move conveniently from place to place. Some developments of note in the
hospitality industry during this period were:
Luxurious • The appearance of a new style of hotel that provided luxurious amenities
amenities in very opulent surroundings similar to the royal palaces. These hotels
were constructed to accommodate a very mobile aristocracy, as well as
wealthy industrialists.
 THE HOSPITALITy INDUSTRy – PAST, PRESENT AND FUTURE 21

• The appearance of the Grand Tour, which was originally about privileged
young Englishmen who spent their gap years on an extended tour of Con-
tinental Europe. Possibly, the best known of these youngsters was James
Boswell, who kept an elaborate journal of his travels and experiences.
The first major guidebook for the Grand Tour was published in 1749 by Grand Tour
1
Thomas Nugent. Though the Grand Tour was primarily associated with
British nobility and wealthy established gentry, similar trips were made by
wealthy young men from Northern European countries. From the second
half of the 18th century onward, some American and other overseas
youths joined in; participants began to include more members of the mid-
dle classes now that rail and steamship travel made the journey less
cumbersome. Figure 1.4 is a map of Europe showing the Mozart family’s
Grand Tour of Europe.

FIGURE 1.4 The Mozart family’s Grand Tour of Europe

Amsterdam
Haarlem
The Hague
Utrecht
London Antwerpen
Ghent
Dover Cologne
Calais
Lille Liège
Mainz Frankfurt

Brussels Mannheim

Paris
Munich

Dijon Salzburg
Zürich

Geneva
Lyon

There was a slow decline in the number of highway inns for stage coaches
due to the expansion of rail networks and a boom in holiday resorts offering
either health benefits (by mineral spas) or cooler temperatures (by moun-
tains and oceans).
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Some hotels of note that appeared during this period include:

• The City Hotel opened in New york City in 1794. It is said that this was City Hotel
the first building in America specifically built for the purpose of being a
hotel. With its 73 rooms, it was considered to be a very large property in
a city with approximately 30,000 inhabitants. The City Hotel also provid-
ed meeting rooms and eventually became the social heart of the city. It
was the largest hotel in New york until 1813, and stayed operational till
1849.
• Giuseppe Dal Niel rented the second floor of the Palazzo Dandolo in Ven-
ice, Italy and turned it into a hotel in 1822. Within two years, thanks to
48
 49

2
Rating Systems and the 2

Structure of the Hospitality

Industry
M. N. Chibili

§ 2.1 Introduction
There is no standardised set of rules for classifying hotels on a universal
level, and this chapter discusses the ratings, classifications and structures
of hotels as the predominant type of hospitality accommodation. Rating sys-
tems are as varied as the organisations employing them, but over the years
several of these systems have proven to be of greater value to guests in
helping them make their accommodation decisions. There are multiple clas-
sification criteria, including price, function, location, particular market seg-
ment, and distinctiveness of style or offerings. The diversity and changing
patterns of the use of hotels often impede precise classifications, and new
forms of accommodation are being introduced to cater to specific needs.
Structurally speaking, no matter the size or type of the hotel, it will have a
formal structure that permits it to distribute responsibility and authority
amongst the different levels of management and staff.

§ 2.2 Rating systems

Hotel ratings are often used to classify hotels according to certain objective Objective
standards such as the available facilities or the level of services provided. standards
This normally does not include other criteria, such as ambiance or charm.
There are many rating schemes and organisations worldwide, many of whom
use the star symbol to categorise hotels. The greater the number of stars
© Noordhoff Uitgevers bv

(or other symbols, such as diamonds as used in the USA by the American
Automobile Association – AAA), the higher the expected levels of luxury.

2.2.1 The emergence of rating systems

One of the first known rating systems is the Michelin Red Guide, which
started in 1900 and is the oldest and best-known European hotel and res-
taurant guide. It was created to encourage travelling by road in France, and

United Arab Emirates, Dubai: The Rose Rayhaan Tower

 50 CHAPTER 2

began reviewing restaurants anonymously by means of a three-star system

Michelin Stars in 1926. It awards the much-coveted Michelin Stars, which are granted on
the basis of five criteria: the quality of the ingredients, the flair and skill
used in preparing them in a combination of flavours, the chef’s personality
as revealed through his cuisine, value for money, and the consistency of cu-
linary standards. The stars reflect ‘what’s on the plate and only what’s on
the plate’. In other words, their award does not take into consideration the
restaurant’s décor, or the quality of the service, amenities and equipment or
2 availability of valet parking provided. The Michelin Red Guide is designed on
Premise the premise that only reviews by anonymous, professionally-trained experts
can be trusted to be accurate. A brief history of the Michelin Guide (an ex-
cerpt from the Michelin Guide Dictionary Page 7) is presented in Text 2.1.

TEXT 2.1

Brief history of the

Michelin Guide

HISTORY
1900: André and Edouard Michelin publish 2005: The first US guide is published, in the
the first MICHELIN guide. The broth- form of the MICHELIN guide New york
ers foresaw that, for the automobile City.
to become successful, motorists had 2007: The first Asian guide is launched, in
to be able to find places to refuel, the form of the MICHELIN guide To-
charge their batteries or change their kyo, and the Bonne Petites Tables
tires wherever they travelled. The France guide is introduced.
MICHELIN guide was therefore cre- 2009: The 100th edition of the MICHELIN
ated to offer drivers useful informa- guide France; first iPhone application
tion, free of charge. launched; first MICHELIN Bib Gour-
1904: First MICHELIN guide Belgique mand guide in the Benelux countries
1910: First MICHELIN guides España and and Buenas Mesas in Spain; first
Deutschland MICHELIN guide Hong-Kong Macau.
1911: First MICHELIN guide Great Britain & 2011: The US selection is extended by the
Ireland addition of Chicago, and the Japanese
1920: The Michelin guide is no longer of- selection is extended by the addition
fered free of charge. of Kobe to the Kyoto Osaka guide and
1926: The first MICHELIN stars are awarded. yokohama and Kamakura to the Tokyo
1937: First MICHELIN guide Paris guide; the first MICHELIN Bonnes Pe-
1956: First MICHELIN guide Italia tites Tables Tokyo guide is published.
1997: The Bib Gourmand distinction is intro- 2012: New Japanese cities are added, with
© Noordhoff Uitgevers bv

duced in France. Nara in the Kyoto Osaka Kobe guide,

2000: Descriptions of selected establish- Shonan in the Tokyo yokohama Kam-
ments are added. akura guide, and the new Hokkaido
2001: The selection is published online on guide.
the ViaMichelin website.
(Source: [Link])

The Michelin Guide chooses the best hotels and restaurants in each com-
fort and price category. Establishments are ranked from one to five pavilions
for hotels and from one to five fork-and-spoon pictograms for restaurants; or
 RATING SySTEMS AND THE STRUCTURE OF THE HOSPITALITy INDUSTRy 51

from ‘quite comfortable’ to ‘luxury in the traditional style’. Symbols shown

in red indicate particularly pleasant establishments in terms of atmosphere,
décor, customer reception, and/or level of service. As for gastronomy, the
stars, which are universally recognised as symbols of quality cuisine today,
are defined as follows:
• One star: A very good restaurant in its category;
• Two stars: Excellent cooking, worth a detour;
• Three stars: Exceptional cuisine, worth a special journey.
2
The AAA copied the Michelin Tire Company example, and in 1937 started its
own independent rating system for hotels and restaurants based on a sys-
tem of standards and guidelines using professionally trained inspectors. The
AAA rates hotels in the United States, Canada, Mexico and the Caribbean.
Hotels do not pay to be included in the ratings, but can submit an applica-
tion. To become AAA Approved, the hotel must first meet 27 basic require-
ments covering comfort, cleanliness and safety. If the hotel is approved, AAA
sends out anonymous inspectors to evaluate the hotel and assigns a dia-
mond rating from one to five. In 1963, AAA began assigning lodging ratings
from ‘good’ to ‘outstanding’. In 1977 the Diamond Rating system was intro- Diamond Rating
duced for lodgings, with restaurants included 12 years later.

In the lodging domain for example, the following criteria are used by the AAA
to define the diamonds:

• One Diamond gressively more refined and stylish.

These establishments typically appeal The physical attributes reflect an obvi-
to budget-minded travellers. They pro- ous enhanced level of quality throug-
vide essential, no-frill accommodati- hout. The fundamental hallmarks at
ons. They meet basic requirements this level include an extensive array of
pertaining to comfort, cleanliness, and amenities combined with a high de-
hospitality. gree of hospitality, service, and atten-
• Two Diamonds tion to detail.
These establishments appeal to the • Five Diamonds
traveller seeking more than the basic These establishments reflect the cha-
accommodations. There are modest racteristics of the ultimate in luxury
improvements to the overall physical and sophistication. Accommodations
attributes, design elements, and ame- are first class. The physical attributes
nities of the facility when compared to are extraordinary in every respect. The
the one diamond establishments - fundamental hallmarks at this level
typically at a moderate price. are to meticulously serve and exceed
• Three Diamonds all guests’ expectations while maintai-
These establishments appeal to the ning an impeccable standard of excel-
© Noordhoff Uitgevers bv

traveller with comprehensive needs. lence. Many personalised services

Properties are multifaceted and have a and amenities enhance an unmatched
distinguished style, including marked level of comfort.
improvements to the quality of physi-
cal attributes, amenities, and levels of (Source: Approval Requirements & Diamond Rating
comfort provided. Guidelines – Lodging, AAA Publishing, 2008)
• Four Diamonds
These establishments are upscale in
all areas. Accommodations are pro-
 116 CHAPTER 3

Summary

▶ Either called General Manager (GM), Managing Director or General Direc-

tor, the GM reports to the owners either directly or through regional of-
3
fices, and is ultimately held responsible for the unit’s success, image
and reputation.

▶ The job of the GM differs by property type and size, as well as by its ser-
vices offered. The GM’s job can be conceptualised based on job de-
mands and relationship issues in the short-, intermediate- and long run,
generic managerial work roles, and specific job functions.

▶ The main responsibilities of the hotel GM include taking full responsibil-

ity for the performance of the hotel; coordinating the activities of all ho-
tel departments; leading the staff of the hotel towards conform to their
community, environmental and financial responsibilities; participating in
determining the hotel’s policies and strategies; providing leadership of
and guidance to the hotel’s executive team.

▶ The leadership competency model for the lodging industry establishes

various dimensions for competencies required by hospitality leaders in
eight factors.

▶ The Executive Committee consists of the senior managers of the func-

tional areas who report directly to the GM; this committee is responsible
for directing, coordinating, and implementing the vision and objectives of
the hotel. The executive committee composition differs by hotel as the
organisational structures of no two hotels are the same. Apart from a
GM, it generally features a Rooms Division Manager, a Food and Bever-
age Director or Manager, a Human Resources Manager, a Sales and
Marketing Manager, a Financial Controller, a Chief Engineer, an Informa-
tion Technology Manager, and a Revenue Manager.

▶ A hotel’s property management system (PMS) is software used to auto-

mate operations; a PMS makes it possible for management and other
© Noordhoff Uitgevers bv

employees to use computers within an integrated system permitting

them to manage and control almost all operations within the hotel, even
linking them to other worldwide information networks.

▶ Since selecting the right PMS for a hotel is not always easy, it is essen-
tial to start with a needs analysis carried out by front-line staff mem-
bers; this analysis should focus on the flow of guests through the hotel
and on the communication between departments. This should be fol-
lowed by a crucial evaluation of PMSs and their developers before mak-
ing a final decision.
 117

Questions and assignments for

reflection

1 Brief describe the (most) important job-related roles of a hotel GM.

3
2 Why should hotel GMs be people who are continually seeking to improve
their skills and knowledge base?

3 Discuss the relevance of the leadership competency model for the hospital-
ity industry as described in this chapter for contemporary hospitality manag-
ers.

4 Why is it important for a hotel to own and use a PMS?

5 What are the questions faced by hotel managers when trying to determine
which PMS to obtain for their properties?
© Noordhoff Uitgevers bv
 © Noordhoff Uitgevers bv
164
 165

5
The Food and Beverage
Department
S. de Bruyn and M. N. Chibili

§ 5.1 Introduction 5

Aside from the lodging possibilities offered by hospitality organisations, the

provision of food and beverage products is also of paramount importance.
The Food and Beverage Department is in charge of this service, meaning it
has a key role to play within the hospitality industry. More and more people
enjoy a meal or drink outside of their homes nowadays. Where traditionally
the ‘lady of the house’ would take care of the cooking, and ‘going out’ used
to be reserved for special occasions only, it is now considered entirely nor-
mal and part of everyday life to enjoy food and beverage products at one of
many available establishments. This chapter provides a short discussion of
the hospitality concept, fundamentally important to all food and beverage
service operations, followed by an insight into different food service compa-
nies and various food and beverage provision and support departments, as
well as an outline of their scope and processes.

5.1.1 A guest’s perspective (demand)

The main reason guests visit a food service company is to eat or drink, both Eat or drink
components of their primary needs. Also called innate, basic, or physiologi- Primary needs
cal needs, these needs are important for survival. Everybody needs to eat or
drink, for example. But there are other needs that make a guest want to go
out and have a meal, snack or drink. These can be the need for contacting
other people (including service staff), or the need to have a good time with
family or friends. Such needs are called secondary needs, and they are also
© Noordhoff Uitgevers bv

Secondary needs
referred to as either social, acquired or psychological needs. Furthermore,
needs and wishes differ depending on the person as well as other factors,
such as age, profession, education, relation to the company, income, or na-
tionality (culture). Subsequently, the purposes, in conjunction with the occa-
sion and the time of day, play a very important role in the needs and wishes
of guests. If a guest visits a restaurant for a business lunch in order to dis-
cuss and finalise a very important deal, for example, the guest’s wishes de-
mands will surely and differ from those in situations where the same guest

Inner Mongolia, Helan Mountains, yurt Lodge

 166 CHAPTER 5

visits the same restaurant with family or alone. In the case of the business
lunch, a guest’s main objective is to please the business partner with a
meal, and very hopefully get a deal finalised. In such a scenario, the service
staff should be present, but also silent and discrete. In the case of a guest’s
visit with family, it would be wiser for service staff to also focus their hospi-
tality offering on the children. In those cases where the guest is alone, the
guest may now be expecting a more social and sociable interaction with the
service staff.

5.1.2 A company’s perspective (supply)

As indicated in the previous paragraph, the offerings of hospitality organisa-
tions go beyond lodging possibilities, and include food and beverage ele-
Tangible ments, both tangible products. Additionally, these very tangible products are
products offered within a certain surrounding: the building itself; the restaurant; the
bar; the meeting rooms. It should also be remembered that it is not only the
Surrounding décor, inventory, lighting, and music that make the surrounding, but other
guests are also part of – and do influence – these surroundings (ambiance).
Hospitality There is also the matter of hospitality – an intangible, behavioural aspect
provided by the persons that serve the tangible products on offer. These 3
5 elements (products, surrounding, and hospitality) form the foundation of the
hospitality formula of a food service company. A mixture of these elements
should be adapted by any food service company and should be recognisable
to guests or potential guests.

5.1.3 The hospitality model

Hospitality To get a better insight into matching demand and supply perspectives, the
model Hospitality Institute developed the hospitality model as shown in Figure 5.1.

FIGURE 5.1 The hospitality model (Source: [Link])

P N
Service B (€) Guest
provider E G © Noordhoff Uitgevers bv

The model shows the interaction between the needs and goals of the
guests (N and G) and the product, behaviour and environment of the service
provider (P, B, and E), leading to a certain guest experience as well as re-
turns for the service provider. When the needs of the guest have been met
(or even exceeded), a guest is likely to return. If the expectations have not
been met, this guest will probably not pay another visit and may in fact
share this negative experience with other people, with possible negative ef-
fects for the service provider.

In order for a company to be successful in the hospitality industry, it is cru-

cial for it to be able to assess the different needs and wishes of its guests
 THE FOOD AND BEVERAGE DEPARTMENT 167

and adapt its service offering to these needs. For a more detailed discus-
sion on services and hospitality, see Chapter 11 – Managing Hospitality Ser-
vices. As this chapter concerns the Food and Beverage Department, how-
ever, it is worthwhile to note that, according to [Link], service is Service
defined as ‘the performance of duties or the duties performed as or by a
waiter or servant’. In addition, the Oxford Advanced Learners Dictionary (on-
line - [Link]) defines hospitality in two ways.
Firstly as ‘friendly and generous behaviour towards guests’, and secondly as
‘food, drink or services that are provided by an organisation for guests, cus-
tomers, etc.’.

There are similarities between service and hospitality, yet there is one major
difference. Providing service is by nature a type of transaction (economic ac-
tivity); the provider obtains something in return for services rendered, which
is money. Guests receive products and service, and in return pay the bill.
Hospitality is the superlative of service, more in the manner of ‘a way of
life’, which is not only shown at work but also in relation to other people in
one’s private life. For more on this distinction, see Section 14.6 on hospita-
bleness.
5
Hospitality is about seriously considering one’s guests, having a genuine in-
terest in them, and doing the utmost to fulfil and, if possible, exceed their
wishes. Hospitality is about making a choice to be helpful, friendly and hav-
ing a positive impact on the people one encounters. It is about taking re-
sponsibility, making a choice to serve others instead of oneself, getting sat-
isfaction out of solving problems. Receiving payment can certainly be a
desired result when providing hospitality, but hospitality goes beyond merely
making money: hospitality is about going the extra mile, and it is something
that is or has to become part of the DNA of any hospitality industry employ-
ee. Gunnarsson and Blohm (2003) suggest a modified level of hospitality
called hostmanship, which is based on the following fundamentals: interac- Hostmanship
tion; the big picture; dialogue; responsibility; consideration; and knowledge.
Text 5.1 is an extract from Gunnarsson and Blohm (2003, p. 25), in which
hostmanship is summarily explained.

TEXT 5.1

Hostmanship is an attitude
I usually think of hostmanship as an attitu- Never forgetting that people who have con-
de. A way to live. tacted you are an extension of yourself.

Hostmanship is about giving. It’s about sha- Hostmanship is an art. The host is an artist.
© Noordhoff Uitgevers bv

ring a part of yourself and your knowledge.

This artist, for which there is a growing demand these days, is an important
aspect of sustainable business relationships that allow hospitality organisa-
tions and individuals to make the deciding difference beneficial to both
guests and organisations.
 168 CHAPTER 5

Considered as a lifestyle attitude, de Zwaan has conceived 6 pillars to ex-

plain hostmanship as indicated in Text 5.2.

TEXT 5.2

Six pillars of hostmanship

A basic serving attitude (I really like to serve mature citizen with a rollator walker hesitat-
people) ing to cross over at a crosswalk.

A care reflex (when a glass falls over, you

already get a towel)

Make contact – start with eye-contact, and

make sure you are really listening

Consideration (have empathy for the other,

place yourself in the other person’s shoes
– without judging)

Knowledge of what you pour or serve (this

gives power, certainty, and credibility)
Brenda de Zwaan regularly writes on hospi-
© Noordhoff Uitgevers bv

Not only putting the above into practice dur- tality related issues, and can be found at
ing working hours, but also when you see a [Link]

Symbol of This subsection ends with a short story related to one symbol of hospitality
hospitality as shown in Text 5.3, the pineapple, and its commonplace nature in many
food and beverage outlets.
 THE FOOD AND BEVERAGE DEPARTMENT 169

TEXT 5.3

Pineapples: a symbol of hospitality

Pineapples are traditionally a welcome gift in its rarity and expense, was such a status
the tropics. Centuries ago however, modes item that all a party hostess had to do was
of transportation were relatively slow and to display the fruit as part of a decorative
fresh pineapples (being perishable) were a centerpiece, and she would be awarded
rare luxury and coveted delicacy. much social awe and recognition. Colonial
confectioners sometimes rented pineapples
The fresh pineapple was highly sought after, to households by the day. Later, the same
becoming a true symbol of prestige and so- fruit was sold to other, more affluent clients
cial class. In fact, the pineapple, because of who actually ate it.

King Charles receiving a pineapple.

During the 20th century, the pineapple pri-

marily symbolized hospitality. American Sea
Captains placed the fruit outside their
homes to signal to friends that they had re-
turned after a voyage. It was this act that
began the trend of stone pineapples being
placed at the entrance of fine properties.

Pineapples appeared frequently in the deco-

© Noordhoff Uitgevers bv

rative arts on gates, bedposts, crockery,

napkins, tablecloths and door knockers. This
pineapple fountain can be found in Charles-
ton, South Carolina, USA.

Did you know: The pineapple was used by

political cartoonists during the Napoleonic
Wars to symbolize extravagance.

(Source: [Link]) Pineapple fountain in Charleston

 170 CHAPTER 5

§ 5.2 Types of Food and Beverage Service Operations

There is a large variety of service companies providing an extended selec-
tion of food and beverage products designed to satisfy all needs and wish-
es. These can range from a small ethnic restaurant in a city centre to a fish-
and-chips stall around the corner, or from a school canteen to a fine-dining
Michelin-starred restaurant. Since the structure of the hospitality industry
was classified and rated principally with a bias towards hotels in Chapter 2,
the current subsection provides a brief discussion related to the specific
Classification classification of food and beverage service operations, which can be either
small or large. A small enterprise can be a person selling spring rolls at a
street market, for example, while a large business can be a buffet restau-
rant at a holiday park selling more than 1,000 meals every day.

FIGURE 5.2 Categories and examples of food service operations

Categories Some examples (based on the Dutch market)

Commercial Quick Fast food restaurants McDonald’s, KFC, Burger King
5 Service (drive-throughs)
Lunchrooms/coffee shops Subway, Bagels & Beans, Delifrance, Bakker Bart,
Starbucks
Take-away places (often Chinese, Indian, Indonesian restaurants, Domino’s
offering delivery services) Pizza, fish & chips kiosks, sushi bars etc.
Cafeterias and motorway La Place, Haje
restaurants
Buffet restaurants Chinese, Indian, Indonesian restaurants, holiday
parks etc.
Street vendors Food trucks etc.
Ice cream parlours Min 12, Toscana, Australian Homemade
Full Casual Many Dutch restaurants
Service Bistro Humphreys, De Beren
Brasserie Flo
Single item Pancakes, chicken, steak or sushi etc.
Ethnic Greek, Italian, Chinese etc.
Family Van der Valk
Theme Hard Rock Café, Rainforest Café, Theatre restaurants
Beverage-offering food Pubs, coffee bars, wine bars, cocktail bars
service
Fine-dining De Zwethheul & De Librije
Catering Fixed location Hotels, banquet companies, clubs
Outdoor catering Customer-desired locations
Non- Institu- In-house Schools, universities, companies, factories, military
commercial tional food installations, and prisons, etc.
service Contracts Sodexo, Aramark, Compass Group
Hotels and Hotels, B&B, holiday parks, etc.
© Noordhoff Uitgevers bv

other lodging
companies
Food service Leisure attractions Sports clubs, cinemas, theaters, museums, zoos, fun
within consu- parks, music festivals, etc.
mer-based Retail stores Shopping malls, retail stores, gas stations, traiteurs.
companies
Travel food During travel Food and beverage services on board planes or cruise
service ships
At the stations Restaurants and bars at airports, bus, and train stations
 THE FOOD AND BEVERAGE DEPARTMENT 171

There are two basic types of food service: commercial food service and non- Commercial food
commercial food service. Commercial food service is offered by companies service
aiming to make a profit, and non-commercial food service is provided by or- Non-commercial
ganisations that exist for some other reason, but do offer food and bever- food service
age to their employees or other people as a service. To provide a better in-
sight into this complex world of food and beverage service companies, they
can be categorised using the basic criteria in Figure 5.2. One should keep
in mind that there are many food service businesses that will not fit any sin-
gle category exactly, instead requiring more than one at a time.

It is important to understand that there are both independent restaurants

and chain restaurants. A chain restaurant, also called multiple-unit busi- Chain restaurant
ness, has more than one location operating under the same name and own-
ership. There is also a type of chain restaurants operated as franchises, Franchises
which is a concept that allows an entrepreneur to start or continue a restau-
rant without taking too many risks. This allows the franchising company to
expand rapidly without having to finance the operation itself. The franchise
chain owner (or franchisor) lends certain rights to the entrepreneur (or fran-
chisee) running the location. These rights can refer to the use of the con-
cept, trademark, logo, operating systems, distribution channels, reservation 5
systems, marketing expertise, purchasing discounts, etc. In return for these
rights, the franchisee pays a fee and signs a franchise contract stipulating
they will operate in accordance with the guidelines set by the franchisor.

5.2.1 Quick service restaurants

As their name implies, these restaurants provide guests with speed, con-
venience, and low to medium service at relatively low prices. This service is
most often ‘self-service’ – implying that guests have to collect their food or
drinks themselves before proceeding to their tables. There are usually only
few employees in relation to the number of guests. Quick service restau- Quick service
rants include fast food restaurants, lunchrooms, take-aways (including deliv- restaurants
ery service), cafeterias, buffet restaurants, ‘street food’ stalls, and ice-
cream parlours.

OUR
E R V I CE
ICK S
© Noordhoff Uitgevers bv

QU
SPECIAL
Fast food restaurants
A fast food restaurant usually has a counter at which orders can be placed. Fast food
The menu consists of a limited number of products, which can be prepared restaurant
very quickly. The production process is mainly capital intensive, necessary Capital intensive
for a speedy production. Kitchen routes and mise en place are designed to
 172 CHAPTER 5

make processes run smoothly and efficiently. Production times of incoming

orders take no longer than 5 minutes. Once prepared, orders can be picked
up and paid for at the same counter, and either enjoyed at one of the ta-
bles in the dining room or taken for consumption elsewhere. These restau-
rants, especially those that belong to a chain, also offer drive-through win-
dows catering for guests in a hurry or not wishing to consume their food
and beverage items in the restaurant. Within this domain, the best known
example is McDonald’s, being one of the largest restaurant chains at over
34,000 restaurants in 119 countries. It is remarkable that a Big Mac in
Amsterdam tastes exactly the same as does one in Hong Kong. It should
however be noted that such companies also adapt their products or servic-
es that are available all over the world to make them suitable for local
Consistency needs in what is termed glocalisation. Such consistency raises questions.
How do they do it? How do they get such a consistent product and quality
with so many outlets? The answers are related to the systems and stand-
ards implemented to ensure the quality of service, and to employees, who
are offered intense training programmes for different positions. Lastly, the
ability to adapt to market conditions also enables them to adequately react
to the demands of the guests.
5

Lunchrooms
Lunchrooms are mainly located in shopping areas, and operate following the
© Noordhoff Uitgevers bv

Lunchrooms opening times of surrounding shops. Lunchrooms can also be found in oth-
er places where there is heavy pedestrian traffic, such as at airports or train
stations. These facilities offer different kinds of breads, like sandwiches,
buns, French bread, bagels, and croissants, with a variety of fillings. Both
hot and cold bread products are offered. Soups, salads, hot dishes, pas-
tries, cold and warm drinks are also served. Average spending is low to me-
dium, and the service varies from take-away to table service. Catering and
takeaway within this domain are expanding, making it possible for business-
es to generate revenue during off-peak hours with the help of the Internet,
which enables consumers to order their products online.
 THE FOOD AND BEVERAGE DEPARTMENT 173

5
Nowadays, there is a wide range of lunchroom type businesses available:
small outlets in bakeries with a few tables; traditional privately-owned lunch-
rooms; franchise chains like Subway; and non-franchise chains like Pret a
Manger. Because consumers are becoming increasingly health conscious, Health conscious
lunchrooms have become a major competitor to the relatively more un-
healthy fast-food sector. At the time of writing, the Subway franchise chain
has overtaken McDonald’s in terms of number of branches worldwide, hav-
ing more than 43,500 branches in 109 countries, compared to McDonald’s
34,000 restaurants in 119 countries as indicated above.

Coffee shops
Quick service businesses that offer coffee as a core business, in addition
to other products like cold and warm drinks, pastries, and other food items
like sandwiches. An well-known example of a coffee shop is Starbucks. All Coffee shop
Starbucks branches have one or more ‘baristas’ (coffee professional) in
service to ensure a high standard of specialty coffee. There are more than
21,500 Starbucks locations in 64 countries worldwide at the time of writ-
ing, and their very interesting mission statement intimates that their aim is
‘to inspire and nurture the human spirit – one person, one cup and one
neighborhood at a time’.

Take-away restaurants
These food service operations offer food for
© Noordhoff Uitgevers bv

guests to take home or elsewhere. Some take- Take-away

away places also offer delivery service. While,
not so long ago, the majority of food available
in-store or by delivery was limited to pizza, Chi-
nese food, and kebabs, there is now a huge vari- Huge variety
ety of dishes and snacks from which guests can
make their choice; these range from different
types of pizzas to exotic dishes, and from sushi
to vegetarian dishes. Quality and pricing can dif-
fer enormously, and these companies tend to flourish, particularly in cities,
268
 269

7
Marketing for the
Hospitality Industry
Dr. B. Rowson

§ 7.1 Introduction
This chapter is about marketing in the hospitality industry. First of all, what
is marketing? Simply put, marketing is managing profitable customer rela-
tionships. The aim of marketing is to create value for customers and cap-
ture value from customers in return. Essentially, there are five steps in the
marketing process: understanding customer needs, designing customer
driven strategies, integrating marketing programmes, and building customer 7
relationships whilst capturing value for the firm.

§ 7.2 What is marketing?

Marketing, more than any other business function, deals with customers.
Although in this chapter more detailed definitions of marketing and how it is
used in the hospitality sector will be explored, perhaps the simplest defini- Definition
tion is this: Marketing is managing profitable customer relationships. The
twofold goal of marketing is to attract new customers by promising superior
value, and to keep and grow numbers of current customers by delivering
satisfaction (Lovelock & Wirtz, 2011).

Walmart, for example, has become the world’s largest retailer and company
by delivering on its promise, ‘Save money, Live better.’ Nintendo surged
ahead in the video-games market behind the pledge that ‘Wii would like to
© Noordhoff Uitgevers bv

play,’ backed by its wildly popular Wii console and a growing list of popular
games and accessories for all ages. And McDonald’s meets its ‘I’m lovin’ it’
motto by being ‘our customers’ favourite place and way to eat’ the world
over, giving it a market share greater than that of its nearest three competi-
tors combined (Kotler & Armstrong, 2013).

Russia, Caucasus, Dombai: Wooden Hotel

 270 CHAPTER 7

7.2.1 The service revolution

Service sector Across Europe and indeed around the world, the service sector of the econ-
omy is going through a period of almost revolutionary change in which es-
tablished ways of doing business continue to be shunted aside. At the sec-
ond decade of the 21st century, all ways of life and work are being
transformed by new developments in services. Innovators continually launch
new ways to satisfy existing needs, and meet these heretofore unknown
needs as well. The same is true of services directed at corporate users.

Although many new service ventures fail, a few succeed. Many long-estab-
lished firms are also failing or being merged out of existence; but others are
Progress making spectacular progress by continually rethinking the way they do busi-
ness, looking for innovative ways to serve customers better and taking ad-
vantage of new developments in technology. This is as true for the hospital-
ity sector as for any other business sector.

7.2.2 Services marketing

People use an array of services every day, although some of these, like talk-
ing on the phone or using a credit card, even taking a bus ride, or withdraw-
ing money from an ATM, are often so routine they almost escape notice un-
less something goes wrong. Other service purchases may involve more
forethought and may be more memorable experiences, for instance booking
a cruise vacation, getting financial advice, or having a medical examination.
The use of these services is an example of service consumption at the indi-
B2C vidual, or business-to-consumer (B2C), level (Lovelock & Wirtz, 2011).
7 Hospitality organisations also use a wide array of business-to-business
B2B (B2B) services, varying according to the company size to some degree, but
usually involving purchases on a much larger scale than those made by indi-
viduals or families. An independent restaurant business, for example, will of-
ten purchase their food from various suppliers, most of which deliver to the
business. In the restaurant business, food provenance is everything nowa-
days; customers often want to know the origin of the seafood, meat or veg-
etables used. This can be part of a marketing plan for the business. Having
the source of one’s produce on the menu, for example, can be a particular
selling point to restaurant customers (Ball, Rimmington, & Rowson, 2007).

Current trends suggest firms are outsourcing more and more tasks to exter-
Core business nal service providers in order to focus on their core business. So what are
services? The formal definition of services is: economic activity offered by
Time-based one party to another, most commonly employing time-based performances
performances to bring about desired results in recipients themselves or in objects or other
assets for which purchasers have responsibility (Lovelock & Wirtz, 2011).
© Noordhoff Uitgevers bv

Time-based means something a firm does within a certain time period, for
Desired results example providing dinner for customers in the restaurant that evening. De-
sired results are outcomes desired by a customer, e.g. the wish to have din-
ner with friends that evening. Other examples are going to a theatre to be
entertained, to a university to get an education, to visit a hotel to have
somewhere safe to stay and sleep when away from home. These are de-
sired results of service activities. Put simply: in exchange for their money,
time and effort, service customers can expect to obtain value from access
to goods, labour, professional skills, facilities, networks and systems. How-
ever, they do not normally take ownership of any of the physical elements
involved (Lovelock & Wirtz, 2011).
 MARKETING FOR THE HOSPITALITy INDUSTRy 271

What is so special about services marketing? Service marketing focusses Special

on the distinctive characteristics of services and how these affect both
customer behaviour and marketing strategy. Many hospitality services, for
example, are produced and delivered with the customer present at the ser-
vice firm’s facility (staying in a hotel or eating at a restaurant). The presence
of the customer in a service facility means that capacity management be- Customer
comes an important driver of a firm’s profitability. If too few customers are
present, for example, the high fixed costs of operating and staffing the facil-
ity cannot be covered. If too many customers show up, their service experi-
ence often deteriorates as service providers get busier; customers who
have to be turned away may not want to come back having been disappoint-
ed by not being able to stay in the hotel or eat in the restaurant a first time.

To address this constant struggle of having the right number of customers

show up, pricing of services tends to be highly dynamic and complicated. Pricing of
Consider the pricing of airline tickets and the terms and conditions attached services
to a discounted ticket. Prices change all the time, and typically depend on
time and date of travel, how long in advance a flight is booked, the duration
of the stay, whether tickets are flexible and allow for changes in travel dates
and itinerary, and whether they are refundable. Such pricing is also called
‘revenue management’ or ‘yield management’, previously discussed in
Chapter 4.

In hospitality services marketing, the traditional 4 Ps of the marketing mix Traditional 4 Ps

(product, pricing, promotion/market communications, and place/distribu-
tion) are adapted to the distinctive features of hospitality services; because
of the personalised nature of hospitality services, these differ from other 7
services marketing concepts (e.g. car hire or banking services) in that, in
the hospitality sector, customers are very much part of the service deliv-
ered. Then, there are the additional 3 Ps of services marketing: people, Additional 3 Ps
physical evidence and process.

The process of service delivery is often as important as the function of the

service. A service is a process from an organisation’s point of view, but from Process
a customer’s perspective it is an experience. The quality of the experience Experience
is a function of the careful design of customer service processes, adoption
of standardised procedures, rigorous management of service quality, high
standards of training and automation. Services marketing helps ensure that
these processes are designed to be viewed from the customer’s perspec-
tive (Kotler & Armstrong, 2013).

Physical environment includes the appearance of buildings, landscaping, in-

terior furnishing, equipment, uniforms, signs, printed materials and other
© Noordhoff Uitgevers bv

visible cues that provide evidence of service quality and guide customers
through a service process. The design of a physical environment can have a
profound impact on customer satisfaction and service productivity. People
relate to the frontline employees of the firm. From a hospitality customer’s Frontline
point of view, when service employees are involved, the people are the ser- employees
vice. This means that frontline employees need to possess the required
technical and interpersonal skills and a positive attitude. People can be a
key competitive advantage for many service firms. Services marketing in-
cludes building customer loyalty, managing relationships, complaint han-
dling, improving service quality and productivity of service operations, and
how to become a service leader in the hospitality industry.
 © Noordhoff Uitgevers bv
CHAPTER
460

13
 461

13
Designing Hospitality
Processes
M. N. Chibili

§ 13.1 Introduction
Designing hospitality processes is about making the services we employ us-
able, easy and desirable. As has been indicated in many of the previous
chapters, service happens over time and consists of touchpoints – either
people, information, products or spaces that we encounter. A menu, a chair
or a waitress, for example, are all touchpoints that make up a restaurant
service. Designing hospitality processes is about creating these touchpoints
and defining how they interact both with each other and with the user. An
important part of designing great service is determining who the users of
that service will be – guests, employees or suppliers. The use of design
tools and methods can deliver an in-depth understanding of user behav-
iours, likes and needs, which allows new solutions to be developed. These
solutions can be used to redesign an existing service and improving its us-
ability, or it can be used to create an entirely new service.

§ 13.2 Configuring the processes

Once the general design of a process has been conceived, its separate ac-
tivities must be configured. Slack et al. (2013, p. 109) state that:

‘This detailed design of a process involves identifying all the indi- Individual
vidual activities that are needed to meet the objectives of the pro- activities
© Noordhoff Uitgevers bv

cess, and deciding on the sequence in which these activities are to Sequence
be performed and who is going to do them. There will, of course, be
some constraints to this. Some activities must be carried out before
others and some activities can only be done by certain people or
equipment. Nevertheless, for a process of any reasonable size, the 13
number of alternative process designs is usually large. Because of
this, process design is often done using some simple visual ap-
proach such as process mapping.’

United States of America, New Jersey, Atlantic City: The Revel

 462 CHAPTER 13

13.2.1 Process mapping and service blueprinting

Process mapping, also called process analysis, is the practice of using a
Workflow workflow diagram to promote a clearer understanding of a process or series
diagram of parallel processes. It allows one to describe how activities (information,
Purpose materials, or people) within a process are linked. The purpose of process
mapping is to use diagrams to better understand processes currently in use
and to identify possible improvements in order to provide better customer
focus and satisfaction. Process mapping helps to identify the best and most
suitable practices, and to find appropriate benchmarks that can be used to
measure how services can be better presented to the customers. HTC

FIGURE 13.1 Some common process mapping symbols

An oval is used to show

the input to start the process or
the output at the end of the
process

A box or rectangle is used to

show a task or activity performed
in the process

Arrows show direction or

the flow of the process

A diamond
shows those points
in the process where a
yes/no question is asked
or a decision
is required

Yes

There is usually only one arrow No

out of an activity box. If there is
© Noordhoff Uitgevers bv

more than one arrow, you may Make sure every

need a decision diamond. feedback loop is
closed, i.e., every path
takes you either back
13 to or ahead to another
step
An oval is used to show
the input to start the process or
the output at the end of the
process
 DESIGNING HOSPITALITy PROCESSES 463

Consulting ([Link]) indicates that process mapping itself

‘should be led by the process owner but should also include input from their
team and indeed consultation with other parties across the business. It is
critical that the maps accurately depict how a current process actually works
in practice’. In developing these maps, major activities must be identified
first; subsequently, sub-tasks must be defined within each of the broader
areas of activity. In order to design process maps (also called flowcharts), Flowcharts
some common symbols have been adopted over time – however, there is no
universally used or accepted set of symbols for specific types of processes.
Some common process mapping symbols, accompanied by their meanings,
are illustrated in Figure 13.1.

Creating flowcharts in Microsoft Word, for example, is fairly straightforward.

In the Insert – Shapes menu option, there is a palette of 28 shapes termed
‘flowchart’ (Word 2013); placing the cursor over these symbols displays
their titles. The names of the symbols are shown in Figure 13.2; from left to
right (FLTR), and from top to bottom.

FIGURE 13.2 Flowchart symbols from Microsoft Office Word 2013

Flowchart

Top row FLTR: Process, Alternate Process, Decision, Data, Predefined

Process, Internal Storage, Document, Multi-Document, Terminator,
Preparation, Manual Input, Manual Operation

Middle row FLTR: Connector, Off-page connector, Card, Punched tape,

Summing Junction, Or, Collate, Sort, Extract, Merge, Stored data, Delay

Bottom row FLTR: Sequential Access Storage, Magnetic Disk, Direct

Access Storage, Display

In order to create process maps, the following easy steps can be used
(adapted from the Iowa State University of Science and Technology, www.
© Noordhoff Uitgevers bv

[Link]):
Step 1: Determine the boundaries
1 Where does a process begin?
2 Where does a process end?
13
Step 2: List the steps
1 Use a verb to start the task description.
2 Use a flowchart to either provide (the minimum amount of) in-
formation required to understand the general process flow or to
describe every finite action and decision point in greater detail.
 © Noordhoff Uitgevers bv
CHAPTER
490
 491

14
Delivering Hospitality
Services
Prof. C. Lashley

§ 14.1 Introduction
A major concern for hotel managers is in ensuring that visitor experiences
at least meet expectations. Customer dissatisfaction occurs when custom-
ers feel they are not getting what they expect – equipment that does not
work, facilities looking shabby, or staff not serving them in a hospitable or
friendly way. Customer retention and the attraction of new customers de-
pends on ensuring that customers have a clear idea of what to expect from
a hotel operator, and ensuring that their expectations are lived up to. The
key issue for hotel management is to deliver what they have said they will
deliver. Tangible products and services and employee performance are fun-
damental elements of successful hotel service delivery.

§ 14.2 Same pool of customers

Too many hotel companies have, in the past, paid too little attention to
guest experiences beyond sale. yet all hotels are in competition for custom- Competition
ers. They need to:
• Retain existing guests and minimise guest visits to competitors in the
same area; or
• Attract guests from competitor destinations; and
• Maximise hotel traffic.
© Noordhoff Uitgevers bv

Maximising weekly traffic ensures more spending towards the hotel’s ac-
commodations, restaurants, bars or other leisure services. Fixed costs re-
main the same; whatever the number of visitors, maximising spending on
any one week produces higher profits. Creating customer dissatisfaction Dissatisfaction
produces the reverse effect; fewer guests visit the site, which reduces traf-
fic profits. In effect, the same levels of fixed costs are recouped over lower
sales volumes: profits fall.
14

Egypt, Oasis of Siwa: Shali Resort

 492 CHAPTER 14

§ 14.3 Satisfiers and dissatisfiers

Herzberg et al. (1957) provide a useful model for understanding customer
responses to service experiences. Figure 14.1 lists potential dissatisfiers
Motivational and satisfiers in hotel services. Essentially, they suggest three motivational
states states. Dissatisfiers are those aspects of service that cause dissatisfac-
tion – if they are not as expected, or are defective.

If hotel visitors find dissatisfiers to be as expected, or even better than ex-

pected, they do not cause satisfaction; only an absence of dissatisfaction.
Satisfaction only comes from the satisfier list of emotional experiences,
largely dependent on frontline staff. Satisfied customers are the most likely
to (want to) return to the destination.

FIGURE 14.1 Herzberg et al.’s satisfiers and dissatisfiers applied to hotel

operations

Dissatisfiers Satisfiers
Own room or suite décor Quality of guest/host transactions
Décor of the hotel Hospitableness of hosts
Quality of equipment in accommodation Emotional responses to service
Quality of leisure equipment Treatment exceeds guest expectations
© Noordhoff Uitgevers bv

Landscaping of grounds Frontline staff performance

Parking facilities Empathy
Range of leisure facilities Feeling at home away from home
Restaurant and bar choices
Alternative destination attractions

Hotel managers therefore have to ensure that the tangible aspects of the
14 offer meet customer expectations to avoid dissatisfaction, but also have to
Hospitable and ensure that the service interactions with staff are always hospitable and
friendly friendly, and produce a favourable emotional experience for visitors.
 DELIVERING HOSPITALITy SERVICES 493

The matrix in Figure 14.2 is not an exhaustive list of product and service
tangibles and intangibles for hotel experiences. It does, however, show
some aspects of hospitality operations as being more measurable and ca- Measurable
pable of being monitored than others. The significance of different features
varies between different types of service operations, and the nature of how
characteristics are defined varies as well. Speed is one of the tangible as-
pects of the service provided, for example. Most service operational stand- Operational
ards set down maximum target waiting times for guests at the reception standards
desk or while waiting to be served meals or drinks.

FIGURE 14.2 Quality characteristics matrix for a hospitality operation

Tangible Intangible
Hotel buildings and facilities Atmosphere
Nature of product

Room and facilities Décor and furnishings

The food and drink products offered in the hotel Feeling
Serving goods (plates, glasses, cutlery, linen, etc.) Comfort
Information (menu) Perceived quality
Process (e.g. credit cards)
Actions Warmth
Accuracy of communication prior to visit Feeling at home away from home
The service contact

Accommodation preparedness Feeling valued as guests

Process Friendliness
Speed Care
Script Complaint handling
Corrective action Fault correction
Hospitableness

§ 14.4 Characteristics of the experience

Service requirements vary according to the service being purchased; in es-
sence, it is important to communicate an expectation and then ensure that
these planned customer expectations are met during the service experienc- Expectations
es. Guest expectations of service quality become an important defining fea-
ture of service quality when compared to experiences of the service. Guests
have a base level of expectations of any service – their minimum expectan-
cy. They have a level of expectation of what a service should be like versus
what they are looking for.

Guests also predict the expected quality. Visitors may vary in their expecta-
© Noordhoff Uitgevers bv

tions; and customers with more experience with a service may well have
higher expectations than those with less experience of it. Hotel operators
have a role in shaping expectations, and may influence consumer expecta-
tions through advertising and other promotional activities. It is important
that the service delivered in a hotel matches these expectations it has en-
gendered in its audience.

14
618

APPENDICES
APPENDIX A

Sample SOP for dusting hotel rooms

Housekeeping Department
Sample Standard Operating Procedure
Dusting of the Hotel Rooms
Dusting doors and windows:
• From your caddy basket take a duster.
• Fold duster into four folds.
• Sprinkle with dusting solution and dust inside and outside of each door, frame and wooden window
frames.
• For areas which cannot be reached, use a feather duster and remove the dust and cobwebs.
Dusting mirrors and fixtures:
• If the mirrors have wooden panels, then dust them.
• Wipe the mirrors with a damp cloth or sponge.
• Wipe the mirrors again with a clean dry cloth from top downwards
• Dust the picture frames with the dusting cloth, and wipe them again with a cloth sprayed with surface
cleaner in order to provide a polished finish.
Dusting dressing table and night stands:
• Wipe the side, front, edges and top using dusting cloth.
• Open the drawer and wipe inside in case the guest has checked-out.
• Polish all surfaces using a cloth sprayed with surface cleaner solution.
Wipe and disinfect the telephone:
• Pick up the receiver and listen for the dial tone.
• Report any issues found on the telephone to the Facility Engineering and Maintenance Department.
• Spray disinfectant on the wiping cloth, and wipe the mouthpiece and earphone.
• Repeat the same steps on any other room and/or bathroom telephones.
Dusting other furniture:
• Remove any items on the table.
• Wipe the table surface with a wiping cloth sprayed with surface cleaner.
• Start cleaning from the top and work towards the base and legs of the table.
• Dust and wipe all the chairs.
• Dust all lamp shades, and other fittings.
Dusting LCD TV, I-Pod Dock, and Alarm clock:
• Turn off the TV, as it is easier to spot the dirt on the black surface.
• For cleaning the LCD screen use, use a soft, clean, lint-free, dry cloth or a microfiber cloth.
• Never use cleaning fluids, wax, or chemicals to clean the LCD screen.
© Noordhoff Uitgevers bv

• Wipe the frames of the TV with the same cloth.

• Use a microfiber cloth to clean other electronic gadgets in the room.
General Dusting Tips:
• Wipe gently removing dusts and fingerprints.
• High dusting that cannot be reached with cloth should be done with a feather brush.
• Dusting is done with the A/C on, and main door open for aeration of room.
• All areas are dusted with a duster or a feather brush whichever is more appropriate.