1 CHAPTER 2 THEORY AND LITERATURE REVIEW 2.1 THE DEVELOPMENT OF TRAVEL AND HOTEL IN CHINA According to statistics from the National Tourism Bureau, as of the end of 2013, the national total of 15044 hotels, guest room number about 200 million rooms 300 million beds, of which five stars Hotel 604, 225261rooms; four Stars Hotel 2596, 53187 rooms. Compared with 2012, five star level hotels increased 64; four Stars Hotel increased 241; Sam Sung class increased by 365; and the two star and one star wine have different degrees of reduction. From the overall point of view on the stock, the majority of domestic hotel group to achieve a rapid growth of the scale in 2012. Compar. Compared with 2012, the total number of domestic hotel group increased by 4, more than 50 of the number of hotel group has 21, an increase of 3 over 2012, while the international hotel group, the InterContinental hotel, Shangri-La hotel group, America Starwood Hotels Group Three multinational giant number of hotel rooms in China has exceeded 2 million. The form table is from Chinese statistical yearbook 2014.
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CHAPTER 2 THEORY AND LITERATURE REVIEW
2.1 THE DEVELOPMENT OF TRAVEL AND HOTEL IN CHINA
According to statistics from the National Tourism Bureau, as of the end of 2013, the national
total of 15044 hotels, guest room number about 200 million rooms 300 million beds, of which five
stars Hotel 604, 225261rooms; four Stars Hotel 2596, 53187 rooms. Compared with 2012, five
star level hotels increased 64; four Stars Hotel increased 241; Sam Sung class increased by 365; and
the two star and one star wine have different degrees of reduction. From the overall point of view on
the stock, the majority of domestic hotel group to achieve a rapid growth of the scale in
2012. Compar. Compared with 2012, the total number of domestic hotel group increased by 4, more
than 50 of the number of hotel group has 21, an increase of 3 over 2012, while the international
hotel group, the InterContinental hotel, Shangri-La hotel group, America Starwood Hotels Group
Three multinational giant number of hotel rooms in China has exceeded 2 million. The form table is
from Chinese statistical yearbook 2014.
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Different choice of different grades of hotels market positioning strategy, comprehensive
coverage, high concentration and low concentration of brand pattern has been basically formed.
Domestic hotel management group, the development of high Stars Hotel occupies the dominant
position, four or five Stars Hotel located in the local hotel management group in the proportion of
70%. At the same time, Rujia hotel, GreenTree Inn, 7 days hotel through the expansion
of economic group, have entered the top 50 of the globe hotel group. While the international hotel
management group, most of the international hotels group, or in high-end hotel, only a
few hotels group is the whole class hotel equipped with all-round development, such as IHG, Accor
Group and Wyndham group, they has a same number rooms of the top five stars hotel and the three or
four star in their Chinese market at the same time.
From the type and layout of the hotel's point of view, the group launched a different type of
hotel brand layout and expansion, and gradually formed 3 group camp: ( Chuanwen Zhang, 2012)
First, the brand of hotel group, such as Jinjiang, China Travel International, InterContinental
Hotels Group, Accor Group, hotel type their hotel brands covering tourism resort, conference and
business type, mid-range business type, almost all of the economic quick etc.;
Second, the high-end brand hotel group, such as Kaiyuan Group, BTG Jianguo, Hyatt, Wan Hao,
Shangri-La Hotel, hotel brand positioning and grades they mainly concentrated in the high-end five
star hotel, four Stars Hotel, but each type also mainly in the luxury business, conference and resort
and theme of the hotel boutique.
Third, the low-grade hotel group, such as the GreenTree Inn, such as home, 7 days, they are
mainly in the following three star economic hotel as the main project.
Four, the regional distribution of City Hotel and the pressure of market competition and further
promote the hotel to the two or three line of the city layout, the national market base In this form, but
the level of regional development is not balanced. The first Urban Inn performance indicators,
Shanghai, Guangzhou and Shenzhen in Beijing as the leading have achieved significant growth in
2012, the city of performance indicators or second-line tends to be gentle. Excess supply is still most
of the hotel market Chinese problems.
The main features of the future development of the hotel industry China The main features of the
future development of the hotel industry China: (Wangchong, 2009)
Hotel group development trend: In the increasingly high degree of international hotel industry, and
hotel management group has become the inevitable trend. The future, China need to participate in
international competition of hotel group, otherwise, will seriously hinder the process we become of
great tourism power.
At the same time, we should realize that the Chinese hotel group compared to the state and the
international hotel group, there is still a large gap. Whether it is the scale of operation, visibility, talents
management system, training mechanism, brand, market development, the external image, Chinese
Hotel Group in the future for a long period of time is very difficult with large foreign hotel group to
form a strong competition, therefore, the next period of about five years is the management group in
China the rapid development of the local hotel, a prime time to catch up with the foreign large-scale
hotels group.
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Development of information technology, the trend of intelligent hotel: To master the most
advanced international hotel things, such as application of information technology in the hotel industry,
which we are already doing, but we a lot of enterprises are still at a primary stage (Xunjing, 2005).
Compared with other domestic industries, the hotel industry in line with the international is proud, but
with the international standards, we still need a lot of to grasp and use. With the rapid development of
IT technology and other high-tech, high-tech innovation also show rooms traces, industry information,
networking, intelligent will become the new trend.
Stars Hotel scale and efficiency will be sustained and stable growth:In our country, social stability,
sustained economic growth, per capita income, improve the tourism and leisure has become a fashion,
to create a good foundation for the rapid development of the domestic hotel. The United Nations
Travel Agency forecast, to 2020,China may overtake France as the world 's biggest tourism destination
of the most popular,9500 – 1390million times, the average annual growth rate of 5.7% - 7.75%. In
2020 the world's 16 billion international visitors, Chinese will have 1300 million tourists, to become
the world's first entry.
The rapid development of high-grade hotel: At present, our country is still less than half the
number of Stars Hotel, Germany, Britain, France and Italy, the average level of the total number of
rooms, China Stars Hotel is about23 million, is expected to 5 within 7 years to grow to 50 million.
Chinese hotel market more than American is expected in 5 to 10 years. According to authoritative
estimates, the next ten years the average growth rate of high-end hotel number will be more than 15%,
therefore, to create high-end hotel growth source of future high-end hotel.
Chinese mainstream high-end hotel is to be the development of real estate industry and
multinational brands: The future for a long period of time, China hotel industry high-end hotel market
will continue to be the local real estate industry Multi-National Corporation brand of hotel
management mode of cooperation is the mainstream, the reason is in many aspects of domestic hotel
management group and the international famous hotel management group in the high-end hotel
business experience, mode of operation, reserve of talents and brand there is still a gap between the
construction etc. (Hanyu, Wangna, 2010). Real estate developers with the introduction of
Multi-National Corporation brand of hotel management, so as to enhance the real estate project grade
and added value of the profit model is fueling the prevailing wind, also further weaken the share of
domestic hotel management group in the domestic high-end hotel management market. However, we
should see, local hotel group is also aware of their own gaps and deficiencies in management,
vigorously expand the number of hotel at the same time, but also pay attention to pay close attention to
internal management system, brand construction, personnel training and the introduction of the
mechanism and the construction of information, thereby further reducing between these aspects and
the international hotel management group the gap in the Chinese, high-end hotel management market
to gradually expand its influence.
Resort hotel demand will grow rapidly: With the continuous development of tourism, leisure
tourism has gradually entered people's lives, resort hotels to adapt to the current tourism from
sightseeing to leisure type change in such a big trend. According to statistics, China's resort hotel is not
the world's top products. The hotel in strong demand, many of the world's top hotel management group
is rapid deployment Chinese, is likely to be the birth of a world-class luxury travel products in the next
few years. (Wangsai, 2014)
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Economics Hotel will still need to speed up development, brand integration: In recent years, the
rapid development of the economics hotel and the formation of the three camps: one is the national
domestic economics hotel brand; the two is the regional domestic economics hotel brand; three is the
international brand of economics hotel. Although there have been many economics hotel brand, but
according to statistics, at present the country hundreds of economics hotel brand, chain scale up to
more than 50 only about 15, the size of more than 10 chain is less than 30. In the future 3 to 5 years, on
the one hand, the economics hotel market will continue to struggle, capital development speed contest,
at the same time, the hotel brand competition, service competition and training the comprehensive
management ability of competition will be more and more in the competition dominant position. Those
in capital strength are weak, only pay attention to the scale and the core competitiveness of the
enterprises will face the fate of merger, acquisition. From the static point of view, the two or three line
and the rural market is still China ever bright Hotel development space, and the existence of a large
number of low-end, widespread non brand tourist hotel let also provides a broad market for mergers
and acquisitions, brand driven. State point of view, the future market pattern will be more than 10
well-known hotel brand oriented, market
2.2 LITERATURE REVIEWS AND RELATED THEORIES ABOUT HOTEL MANAGEMENT AND ROOMS
DIVISION OPERATIONS
The primary function of a hotel is to provide lodging accommodation. A large hotel is run by a
general manager and an executive committee that consists of the key executives who head the major
department: rooms division director, food and beverage director, marketing and sales director, human
resources director, chief account or controller, and chief engineer or facility manager (Philip R Kotler,
John T Bowen and James Makens 2014). These executives generally have a regional or corporate
counterpart with whom they have a reporting relationship, although the general manager is their
immediate superior. But hotel management structure differs among larger, midscale, and smaller
properties. The midscale and smaller properties are less complex in their management structure than
are the larger ones. However, someone must be responsible for each of the key result areas that make
the operation successful. The manager has the ultimate responsibilities for all human resources
decisions. The same scenario is possible with each of the following areas: engineering and
maintenance, accounting and finance, marketing and sales, food and beverage management, and so
on.
The larger hotels , the rooms division has several departments that all work together to please
guests. In midsize and smaller properties, those departments may be reduced in size and number, but
they still need to serve guests. The rooms division consists of the following departments: front office,
reservations, housekeeping, concierge, guest services, security, and communications.(John R. Walker,
1996)
Front Office
Front office has been described as the hub or nerve center of the hotel. It is the department that
makes a first impression on the guest and one that the guest relies on throughout his or her stay for
information and service. It’s duty is to enhance guest services by constantly developing services to
meet guest needs. The function of front office are the followings:
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To sell and up-sell rooms
The front office will hand over all the expected arrivals and available rooms after reservations
office closed at 6:00p.m. The front office will try to sell out all the remaining rooms to call-in or
walk-in guests to ensure 100%occupancy. Also, it should apply the yield management that is upselling
the features of a larger room, a higher floor or a better view in higher price for someone booking a
room with shortly notice when the demand of room is high.
To maintain balanced guest account
The office should make use of the property management systems(PMS) and point-of-safe
terminals(POS) to open a guest account for each customer and post all charges from the departments.
This means that guest charges from the various outlets are directly debited to the guest’s account and
payment can be received on guest check out or transferred to the city ledger.
To offer service such as handing mails, faxes, messages and hotel information
Customers always approach the front desk with questions so the front desk employees should have
enough knowledge about the hotel. The front desk is staffed throughout the twenty-four hours by three
shift to provide service. Ever shift has different duties to do. Most likely, the front desk need to note
things and check on the log book to see if there is some guests request for room switches, check on the
room status, number of expected checkouts still to leave in order to update the forecast of the night’s
occupancy and handle guest check-ins and take reservations.
Reservations
The reservation department is one first contact to the guest making the reservation for room. Since
some guests may be shopping for the best value, it is essential to sell the hotel by emphasizing the
hotel’s advantages. It’s main responsibility is to sell all of the hotel rooms for the maximum dollars and
avoid guest resentment of being overcharged. The reservation can be done by a variety of sources such
as telephone, corporate 1-800 numbers, travel agents, internet and walk-in. The central reservations
system interfaces with the hotel’s inventory and simultaneously allows reservations by individual
hotel reservation personnel. There are two types of reservation that the department need to consider.
Confirmed reservation
It is a reservation made with sufficient time for a confirmation slip including confirmed dates,
types of room booked, number of guests and soon. It is to return to the guests by mail or fax so that
they can bring the slip to the hotel to verify the booking. If the guest arrive late, the hotel may have the
right to cancel his or her reservation and sell the room to others.
Guaranteed reservation
The hotel will take the credit card number of the guest to ensure the payment of the room. The
guest chooses to have guaranteed reservation has the promise from the hotel to provide room even if
the guest arrive late. However, if the guest does not show-up, the hotel will charge him for one night
accommodation automatically.
Housekeeping
The four major areas of responsibilities for the executive housekeeper are as follows:
Leadership of people, equipment, and supplies
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Cleanliness and servicing the guest rooms and public areas
Operating the department according to financial guidelines prescribed by the general manager
Keeping records of supplies and equipment to control inventory
Concierge
The concierge is a separate department from the front office room clerks and cashiers. Concierges
serve to elevate a property’s marketable value and its image. They provide the special touch services
that can cater to a guest’s precise needs. They should not only have a detailed knowledge of the hotel
and its service, but also of the city and even the international details. Also, they can speak several
languages. They will assist the guests with a board range of service, such as restaurant reservation,
advice on local activities, tickets to show or VIP’s messages and special request.
Guest service
The guest service department is responsible to give the guest positive first impressions. The staff
consists of door attendant, bell person and concierge.
Door attendants are dressed in impressive uniforms. They greet guests at the hotel front door, assist
in opening or closing automobile doors, removing luggage from the trunk, hailing taxis, keeping the
door entrance clear of vehicles and giving guest information about the hotel and the local area in a
courteous and friendly way.
Bell person is mainly to escort guests and transport luggage to their rooms. They also need to
explains the service of the hotel and points out the features of the room to the guest. For example, the
lighting, TV, air-conditioning, room service etc.
Security
Security department is providing guest protection and loss prevention. And it includes four
elements.
Security officers make regular rounds of the hotel premises, observing the suspicious behavior and
taking appropriate action, investigating incidents and cooperating with local law enforcement
agencies.
Equipment includes two-way radios, closed-circuit television cameras, smoke detectors, fire alarms
and electronic key cards etc. which can provide the guest more safeguard.
Safety procedures are some guidelines for the staffs and the guests to ensure their safety. For
example, security officers should be able to gain access to guest room, store room and office all the
times.
Identification procedure is to offer identification cards with photographs to all employees. The
guests can contact with name-tagged employees that not only project a friendly image for the property,
but also useful for security reasons.
Communication
The communication department will manage the in-house communication, guest communication
and also the emergency center by CBX or PBX technologies. For example, the call billing system will
charge the customer if the customer make a long-distance call placed from the guest room.
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Also, communication department is a profit center. It is because hotels generally add a 50 percent
charge to all long-distance phone calls.
Guest cycle and key performance indicators of hotels
The Guest Cycle
Most likely, the guest cycle consists of four main stages: pre-arrival, arrival, occupancy, departure.
These stages are work in a cycle so these are known as guest cycle in whole. (Cizmar, S., Weber, S.
2000)
Pre-arrival in other words is reservation. It is the stage where the guest chooses the hotel and makes
the reservation. Important information is gathered at this stage, which allows the next stage to run
smoothly. Normal reservation, confirm reservation and guarantee reservation are the three types of
reservation in this stage. Normal reservation means the guest have book the room only. Confirm
reservation is that the customer will receive a confirmation number from the hotel regarding to the
booking for a room at a particular date, and the guest do not need to pay at this stage. Guarantee
reservation will charge the guest for the first room night even if they didn’t occupy the room; however
they will guarantee to have a room at all stage.
The arrival stage is when the guest actually arrives and registers at the hotel (check-in). Here the
guest verifies the information gathered previously at the reservation stage, confirms method of
payment, signs the registration card, and collects the key. The guest will classify for their room type
first, then the hotel will reserve a room from the whole; and hence, after deducting credit limits from
their credit card, the guest will collect the key.
The occupancy stage deals with security of the guest along with the coordination of guest services
to ensure guest satisfaction and try to encourage repeat guests. The front desk plays an important part
at this stage as this is the area where guests will make their requests or raise their problems, to which
the front desk staffs need to respond in a timely and accurate manner. At this stage the front desk need
to keep guest accounts up-to-date so that the final stage of the cycle runs smoothly.
Departure is the moment when the guest is ready to check out. The main objective here is to settle
the guest account, check if there is more guest charges after checking the room, update room status
information, and create a guest history record. In an attempt to ensure repeat guests, it is important to
find out if the guest has enjoyed their stay at this point.
Three key performance indicators:
Percentage of Occupancy: Percentage of occupancy in hotel industry refers to the percentage of
rooms occupied in a hotel at a given time. The occupancy rate helps a hotel’s administrators evaluate
their business and determine whether the hotel has a vacancy for letting out rooms to walk-in guests. A
hotel front-desk clerk or manager should know the information required to determine the hotel
occupancy. (Kotler, Bowen, 2014)
Percentage of occupancy is determined by dividing the number of occupied rooms by the number
of available rooms. Conversely, the vacancy rate is the number of rooms in a hotel that are not rented
out as compared to the total number of rooms in the hotel.
Percentage of Occupancy = (Rooms Occupied/Total Hotel Rooms )x 100%
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For example, if the hotel has 88 rooms and 44 occupied rooms, the formula for hotel occupancy
would be: 44 divided by 88, which equals 0.50 or a 50 percent hotel occupancy. The vacancy rate is
also equals to 0.50 or a 50 percent (44/88)
A 200-room hotel with 150 rooms occupied would have a 75% occupancy rate. And the vacancy rate is
25% (200-150/200)
Double/Multiple Occupancy Percentage: This is the proportion of a hotel’s rooms that are
occupied by more than one person. This percentage indicates that sales mix and helps balance room