Hotel Management - 3. Hotel operation structure, cost centers and typical organisation chart

Summary

This video educates viewers on the operational and cost structures of a typical hotel. It outlines the various departments, including room division, food and beverage, and administrative units like HR and finance. The video also discusses how some hotels may combine or outsource certain departments based on size and location. It emphasizes the importance of individual performance measurement for each division and hints at upcoming content on hospitality accounting standards.

Takeaways

• 🏢 The video discusses the operational and cost structure of a typical hotel, focusing on various departments and their functions.
• 🔑 The hotel's cost structure begins with general management and branches out into specific departments such as rooms division, food and beverage, and administrative departments.
• 🏨 The rooms division includes front office, housekeeping, concierge, and sauna services, which are crucial for guest satisfaction.
• 🍽️ The food and beverage department encompasses all-day dining, specialty restaurants, kitchens, and is a significant revenue generator for hotels.
• 💼 Administrative departments like marketing, finance, procurement, and human resources support the overall hotel operations.
• 🏋️‍♂️ Additional operating departments may include spa, laundry, transportation, and gift shops, depending on the hotel's offerings and location.
• 🔧 The maintenance department is responsible for the upkeep and repair of the hotel's physical property, ensuring a safe and attractive environment for guests.
• 📊 Hotel profit and loss statements and financial reports are divided by department to measure individual performance and efficiency.
• 👥 The organizational structure of a hotel can vary, with some having more departments like room service, bars, or banquet facilities.
• 🌐 The size and individual requirements of a hotel property influence its departmental structure and cost allocation.
• 🎥 The next video will cover accounting standards used in the hospitality industry, providing further insight into hotel financial management.

Q & A

What are the typical operational cycles in a hotel?

The typical operational cycles in a hotel are related to the guests' arrival, their stay at the property, and after their visit.

What is the role of general management in a hotel's cost structure?

General management oversees the various departments in a hotel's cost structure, which includes rooms division, food and beverage, and other administrative departments.

Which departments are included in the rooms division of a hotel?

The rooms division of a hotel typically includes front office, housekeeping, concierge, and sauna services.

What departments make up the food and beverage department in a hotel?

The food and beverage department consists of all-day dining restaurants, specialty restaurants, kitchens, and other related services.

What are some examples of other operating departments found in a hotel?

Other operating departments in a hotel can include spa, laundry, transportation, and gift shops, depending on the hotel's offerings.

How does the size and location of a hotel property affect its departmental structure?

The size and location of a hotel property can influence its departmental structure, with some hotels combining or omitting certain departments based on their individual requirements.

What is the purpose of dividing hotel profit and loss into individual divisions?

Dividing hotel profit and loss into individual divisions allows for the measurement of the performance of each division within the hotel.

Can you provide an example of a different hotel structure mentioned in the script?

An alternative hotel structure includes a general manager overseeing executive assistant managers and individual departments like room division, personnel, HR, accounting, marketing, engineering, and purchasing.

How might the front office department differ in organization from one hotel to another?

The front office department may include additional services like room service, bars, or banquets, depending on the specific organization or setup of the hotel.

What will be the focus of the next video in the series?

The next video will focus on the accounting standards used for hospitality.

Outlines

00:00

🏢 Overview of Hotel Operation and Cost Structure

This paragraph introduces the operational and cost structure of a typical hotel. It explains that hotels have a cost structure that includes general management and various departments such as rooms division (front office, housekeeping, concierge, sauna services), food and beverage (all-day dining, specialty restaurants, kitchens), and administrative departments (marketing, finance, procurement, HR, IT). It also mentions that some hotels may have additional departments like spa, laundry, transportation, and gift shops, depending on the property's location and size. The structure can vary, with some departments being combined or outsourced. The paragraph concludes by mentioning that the next video will discuss accounting standards used in the hospitality industry.

Keywords

💡Hospitality Operation Cycles

Hospitality operation cycles refer to the various stages involved in managing a hotel's guest experience, from arrival to departure. In the video, this concept is foundational as it sets the context for understanding how a hotel's operations are structured to cater to guests' needs. The script mentions that these cycles are related to guests' arrival, their stay, and post-visit experiences.

💡Cost Structure

Cost structure in the context of a hotel refers to the breakdown of expenses and how they are organized within the hotel's operational framework. The video discusses the cost structure as a critical aspect of hotel management, highlighting that it includes general management and various departments, each with its own set of costs. This structure is essential for budgeting and financial planning.

💡Rooms Division

The rooms division is a key department within a hotel, encompassing front office, housekeeping, concierge, and sauna services. As explained in the video, this division is responsible for the guest accommodations and related services, which are central to the hotel's core business. It is an example of how a hotel's operations are segmented to streamline guest services.

💡Food and Beverage Department

This department oversees all aspects of food and drink services within a hotel, including restaurants, kitchens, and possibly bars. The video script mentions this department as a significant part of the hotel's operations, indicating that it plays a crucial role in guest satisfaction and contributes to the hotel's revenue.

💡Administrative Departments

Administrative departments in a hotel are responsible for non-operational functions such as marketing, finance, procurement, and human resources. The video script describes these departments as essential for the smooth running of the hotel, providing support services that enable the hotel to meet its business objectives.

💡Sales and Marketing Division

The sales and marketing division is highlighted in the video as a key component of a hotel's operations, focusing on reservations, marketing, revenue management, and sales. This division is vital for attracting guests and generating revenue, showcasing the strategic importance of marketing in the hospitality industry.

💡Maintenance Department

The maintenance department is responsible for the upkeep and repair of the hotel's physical assets. As mentioned in the video, this includes property maintenance and repairs, which are critical for ensuring guest safety and a positive guest experience. This department is an example of the behind-the-scenes operations that contribute to a hotel's overall quality.

💡Executive Office

The executive office typically includes top-level management positions that oversee the hotel's strategic direction and operations. The video script positions the executive office as a central component of the hotel's organizational structure, emphasizing the importance of leadership in driving the success of the hotel.

💡Profit and Loss

Profit and loss reports are financial statements that detail a hotel's revenues, expenses, and ultimately, its profitability. The video mentions that these reports are divided into individual divisions, allowing for the measurement of each division's performance. This is a key aspect of financial management in the hospitality industry.

💡Accounting Standards

Accounting standards are the rules and guidelines that govern financial reporting and accounting practices. The video teases the topic of accounting standards for hospitality, suggesting that these standards are important for ensuring accurate and consistent financial reporting within the industry.

💡Outsourcing

Outsourcing refers to the practice of contracting out non-core business functions to external service providers. The video script mentions that some hotels may outsource certain operations, such as reservations, to focus on their core competencies. This is an example of strategic decision-making in hotel management.

Highlights

Introduction to the hospitality operation cycles and their relation to guest arrival, stay, and departure.

Exploration of the cost structure of a typical hotel, including general management and various departments.

Description of the rooms division, which includes front office, housekeeping, concierge, and sauna services.

Details on the food and beverage department, encompassing all-day dining, specialty restaurants, kitchens, and more.

Discussion on administrative departments responsible for marketing and other activities.

Mention of other operating departments like spa, laundry, transportation, and gift shops.

Explanation of additional administration departments such as finance, procurement, human resources, and information technology.

Breakdown of the sales and marketing division, including reservations, marketing, revenue management, and sales.

Highlight of the maintenance department's role in property maintenance and repairs.

Variability in hotel departments based on location, size, and individual requirements.

Differentiation in hotel structures, with some having combined departments or outsourcing certain functions.

Example of a typical hotel structure with a general manager overseeing various departments.

Alternative hotel structure examples, such as having separate departments for personnel, HR, accounting, and more.

Variations in hotel organization, including the possibility of additional departments like room service, bars, and banquets.

Teaser for the next video, which will cover accounting standards used in the hospitality industry.

Conclusion and a thank you note for watching the video.

Transcripts

hello and welcome back in the previous

video we learned about the hospitality

operation cycles how it is related to

the guests arrival and then while they

are at the property or after they visit

the property in this video we will be

learning about various operation and

cost structure of the typical hotel

so the typical hotel has a cost truck

has general management and then after

the general management they are divided

into various departments such as rooms

division which consists of front office

housekeeping concierge and sauna

services then there is a food and

beverage department which consists of

all-day dining restaurant specialty

restaurant kitchens and other

administrative departments for marketing

and other activities then there are

other operating departments which

consist of spa laundry transportation

gift shops depending on your particular

hotel then there are other

administration departments which consist

of finance and procurement human

resource information technology

executive office sales and marketing

division will consist of reservations

marketing revenue management and sales

then there is a maintenance department

we takes care of privity maintenance of

the property and then the repairs so

some hotels may have all of these some

hotels may have additional departments

such as renting of offices and other

departments such as sea sports and in

depending on the on the location of the

property size of the property some

hotels have combined them like there is

no gift shop or the gift shop is part of

front office there is no spa or there is

no laundry or sometimes the the

executive finance and procurement is

taking care of executing office some

some hotels may not have revenue

management or separate reservations

which may be outsourced or it depends on

the Hobbit Hotel of these operating

departments or the cost structure

depends on the size of the property and

is there

individual requirements but this is a

very general department the general

structure of the hospital hotels so the

hotel profit and loss and financial

reports are also divided into each

individual division so that the

individual performance of each division

can be measured another example of a

typical hotel structure can be this is

can we look at here where you have a

general manager which is governing the

executive assistant manager and then

there are individual departments such as

room division personnel HR accounting

marketing engineering purchasing food

and beverage so this is another type of

example in the previous example we saw

purchasing it part of accounting and

finance subdivision can have it

separately subject there is no other

departments like aspire other things are

part of the rules division and some

hotels may have more than in front

office they have like room service they

have bars banquet so it all depends on

the individual particular organization

or setup of the hotel so in the next

video we'll be learning about what are

the what is accounting standards used

for hospitality so stay tuned thank you

very much