Terminology in Hospitality Management

Objectives:
This item was included in AEHT’s seminar for hospitality management on level 5 to 7 EQF (European Qualitiy Framework) to serve the following purposes:

• Graduates from our colleges will occupy management positions in national and international hotels / hotel chains, restaurants etc.
• One of our task as teachers is therefore to train our students thoroughly in the field of hospitality management
• as well as providing them with sufficient language competences in this field, above all in English – as the international main language in business and management.
• Thus, this workshop intends to render a useful service to AEHT member schools by helping to commonly define / harmonize the very essential terms and definitions in this respect.
• This further improvement in the quality training in the field of hospitality management will yield – as a side effect – an increased performance of candidates of AEHT’s Hospitality Management Competitions.

Contents of this chapter “terminology”, separate files:

• This present introduction, check-list of important terms and a Glossary of tourism terms, 6 pages
• General terms of management, 9 p.
• KPIs: Key Performance Indicators, of Hotels in Austria 2010, 8 p.
• Aspects of Hospitality Marketing / Kotler, 3 pages
• Business plan: basics, 2 pages
• BAR Best Available Rate, 5 pages

(Draft / suggestion only
– to be more accurately defined / completed during HEG seminar April 2011:)

CHECK-LIST OF BASIC TERMS AND FACTS ABOUT (EUROPEAN) HOSPITALITY INDUSTRY

Purpose of this list: to serve as a basis for

• harmonizing the training in AEHT member schools (to a certain extent) in this respect and
• a more appropriate preparation of candidates for the next Hospitality Management Competitions.
• F & B:

(see e x t r a t r a n s p a r e n c y : KPIs Austria)

Investment per restaurant seat in restaurant
From € to €
Depending on: quality / standard of establishment / location…

Turnover / receipts / revenue in restaurant in Euros per year:
Per seat
Per waiter / service staff

Kitchen / Storage Facilities:
Investment: very rough sum
Mixed a-la-carte and table d’hote business

Personnel / staff
In the F& B sector of a (“full” hotel, i.e. food and lodging):
Wage cost
Extra wage costs (vacation / sickness pay, social security contributions…)
In a restaurant:

• Rooms’ Division / Accomodation

Average Investment per bed / per (double) room
In a 3star hotel from € to €
In 4 stars
5 stars

Yield Management with room prices
Revenue Management
Average room rates
Rack rates
BAR best Available Rate

( see e x t r a t r a n s p a r e n c y : BAR)

( see e x t r a t r a n s p a r e n c y : REVENUE MANAGEMENT file HEG spring sem. – one MA-course and 2 books)

Occupancy (percentage per year):
In (larger) cities: 60 %
In seaside / skiing resorts with one peak season:
With two peak seasons

Sub-departments of rooms division:
Reception / front office;
Marketing / sales,
reservations / back office

House-keeping

Banqueting

Maintance and engineering: facility management

• GENERAL MANAGEMENT

(see extra transparency: Knowles textbook hospitality management)

Propriator as manager
Employed General Manager

Mission Statement of our enterprise
Strategies: differentiation, service quality,
Management Principles

Quality issues / QM

Information technology for controlling and marketing

Environmental issues of the hotel sector

Dominant management problems in hotels

• Including good practice – solutions:

Staff / HR Human Resources
Finances / economic situation general / in the enterprise,
local / regional competition >>> increased marketing,
rising cost for IT-equipment,
maintenance;

Human Resources: recruiting, training, rewarding…
“A.Berger: staff is required to be trustworthy, socially competent, committed, in possession of IT competencies;
for management positions: has undergone trainee program in all departments...”

Number of staff / total and in each division / department,
Full-time / part-time employment,
Cost of personnel: wages, social welfare… total: “payroll”
Staff “turnover” / fluctuation

• MARKETING

Philosophy

Phases / Concept: trends in demand – possible answer in product policy, pricing, sales, communications

Marketing research, MIS

Instruments, marketing mix
Product,
Pricing
Distribution Channels

Communication and promotion policy

Particular measures in hospitality industry

Cooperating with tourist destination management

(see e x t r a t r a n s p a r e n c y : Kotler)

• FINANCIAL ANALYSIS / MANAGEMENT BY FIGURES / CONTROLLING

Business Plan
Components,
Based on realistic figures and expectations

Cost structure of a hotel:
Wages
Input of food / beverages
Maintenance costs: 10 – 14 %
Marketing Cost (advertising, sales, homepage…) 1 – 10 % (e.g. McDonalds’ towards 10 %, borne by both franchise partners)
Typical taxes

Revenues / Structure of proceeds:
F&B
Rooms
Other

Financial Control:
Management of revenue and cost
Yield Management in Rooms’ Division

Sources / references cited / bibliography

Annotated further reading

Glossary of Tourism Terms

This glossary of tourism terms provides definitions of key terminology in Failte research and statistics data.

Source: [www.failteireland.ie]

Visitor

Any person travelling to a place or country other than that of their usual environment or residence for a period not exceeding twelve months and the main purpose of whose visit is other than the exercise of an activity remunerated within the place or country visited.

Tourist

Any person travelling to a place or country other than that of their usual environment for at least one night and not exceeding twelve months and the main purpose of whose trip is other than the exercise of an activity remunerated from within the place visited.

Same-day Visitor

A visitor who does not spend an overnight in the place or country visited.

Domestic Tourism

Involving residents of a country travelling only within the country.

Inbound Travel

Involving non-residents travelling in a given country.

Outbound Travel

Involving residents travelling in another country.

Holidaymaker

A tourist whose purpose of visit is for holiday or leisure reasons.

VFR

A tourist whose purpose of visit is either meeting or staying with friends and/or relatives.

Hotel

A premises with a minimum of 10 bedrooms, registered in the register of hotels kept by Fáilte Ireland in accordance the Tourist Traffic Acts 1935 – 1979.

A Guestnight or Bednight

Defined as one person staying one night in a hotel.  Thus, one person staying three nights in a hotel is counted as three guestnights or bednights.

A Bed Space

A bed space accommodates one person, a single bed counts as one bed space, a double two.

Room Capacity

This is the number of rooms declared at the beginning of the year.  In assessing occupancy rates, allowance is made for seasonality and varying capacity during the year.  Annual capacity can thus be affected by the length of time premises are open during the year.

Room Occupancy

This refers to the number of rooms occupied in relation to the number of rooms available.

Bed Capacity

This is the number of beds declared at the beginning of the year.  For capacity purposes, twin beds or double beds are counted as two beds.  As mentioned for room capacity, allowance is made for seasonality and varying bed capacity throughout the year.

Bed Occupancy

This refers to the number of guest nights taken up in relation to the number of beds available.  For example, if a room with a double or twin beds is occupied by one person it has a 50% bed occupancy rate.

Market Area

This relates to the country where the guest/visitor normally resides.

Respondent Age

This refers to the age of visitors/holidaymakers who responded to the survey.

Party Age

This includes the ages of those accompanying the survey respondent.

Regions Visited

Region of the country where visitors/holidaymakers spent at least one overnight.