Loss Prevention

Name three functions of the loss prevention committee.
1. Review past accidents and security incidents, develop corrective actions, and follow ups. 2. Provide guidance and direction to the hotel’s loss control and prevention program. 3. Monitor inspection reports to ensure that a corrective action is taken promptly. Discuss the areas to be included in a hotel loss prevention inspection. High accident areas are in the areas of housekeeping, food and beverage, and engineering. In these areas employees must focuses on the safe operation of equipment; proper lifting; keeping the working area clean; wiping up spills; wearing safety equipment; sanitation; careful packing of moving equipment; and tripping hazards. Discuss the role of the director of security in maintaining hotel security.

The director of security, who reports to the general manager or resident manager, is responsible for implementing hotel security policies and procedures in coordination with the general manager and all department heads. The director of security advises the general manage: of loss control procedures for the various departments throughout tire hotel. They also review, revise, and update security procedures as necessary. They train all employees in security responsibilities, supervise the daily processing and distribution of security reports to management, maintain a chronological log of all incidents and notify outside law enforcement and fire and safety officials. Chap. 9

Describe the short, intermediate, and long-term demands on a General Manager’s time. The short-term demands of a GM’s job revolve around the day-to-day operational issues of quality service and controlling costs and revenue. Like all operations managers, a GM is under tremendous pressure to produce positive short-term results. Therefore, the GM must devote a great deal of effort to maintain operational control and can be considered an operational controller. The intermediate-term demands faced by a GM is he or she responsibility for the development and training of qualified subordinates and for implementing systems and programs to improve operational consistency and control. The GM can be seen as an organizational developer.

The long-term demand of the GM’s job relates to the major capital expenditure decisions required to ensure the long-term viability of the hotel and where the development of a certain degree of organizational stability consistent with, the hotel’s strategy. If you were directed to prepare a briefing for your hotel’s general manager about TQM, what would you say? I would first assess the whole hotel starting with lobby area, kitchen, dining rooms, pool and fitness center. Then I would go through all the rooms in the hotel to see what good and bad about them and take notes. Then I would write a TQM report about the hotel. Finally I will present it to the GM. I would tell him or her about the appearance of the hotel if it’s okay or not looking to good. Then I would inform her bout certain areas that need so improvement. So if the lobby needs some paint touch ups then I will make sure the GM knows or even if there are things broken in the rooms of the hotel. I will inform her/him about any complaints or comments by guest about the appearance or broken items in the hotel. Chap. 10

What are REVpar, ADR, and occupancy rate? What role do they have in determining revenue management formulas? REVpar- or revenue per available room is a performance metric in the hotel industry, which is calculated by multiplying a hotel’s average daily room rate (ADR) by its occupancy rate. It may also be calculated by dividing a hotel’s total guestroom revenue by the room count and the number of days in the period being measured. ADR- Average Daily Rate is a statistical unit that is often used in the lodging industry. The number represents the average rental income per paid occupied room in a given time period. ADR along with the property’s occupancy are the foundations for the property’s financial performance. Occupancy rate- the percentage of all rental units (as in hotels) are occupied or rented at a given time. The role of the three key operating indicators Occupancy Rate (OR), Average Daily Rate (ADR) and Revenue per Available Room (REVpar) are tracked using third party sources to follow direct competitor set averages in demand and price, thereby indicating penetration rate and performance index. What 3 different individuals may be given responsibility for revenue management?

What are the benefits and disadvantages of each? Common types of yield management or revenue management positions include executives, pricing or revenue officers, and consultants. These individuals have large responsibilities to review and set pricing strategies for a company’s goods or services. The disadvantage is communication between positions to where the hotel’s revenue can drop drastically because of the miss communication or no communication at which rarely happens but can happen though. What are Allocation controls? What are availability controls? What are the benefits and disadvantages of each? Allocation control- runs on computer or manually, takes into account certain availability controls such as minimum and maximum length of stay and closed to arrivals. One benefit is that ensure high occupancy during and the days leading up to the event. Disadvantage is that this could lead to a significant loss in revenue if the closed to arrival controls are applied too tightly. Availability controls- primarily used by airlines for seat allocation. It sets limits on seat in each rate category. One advantage is that this method attempts to maximize revenue based on room capacity and demand. Disadvantage is it makes it hard to sell the rooms near the elevator etc.