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99 Cards in this Set
- Front
- Back
high quality experience
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- utility
- effectivenes - luxury/ sophistication - attractiveness/ consumer demand |
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2-D quality
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- luxury end of it
- durability of it |
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quality
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- conformance to standards
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sophistication and quality
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- interrelate
- aren't same thing - added features not conformance to standards (sophistication) |
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Total Quality Management (TQM)
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- 2 aspects: philosophy and tools
- way of thinking and also a set of tools |
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ISO
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- international standards to ensure international standards
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Baldridge award
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- award to TQM companies
- given by the U.S government to a TQM company for excellence - Ritz Carlton won for Quality Management last two years |
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Variable (services)
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- consierge
- expectations - very difficult to set standards for luxury |
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Non- Variable
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- front desk check in
- food and beverage - goal- reduce/elminate variation |
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Manufacturing's goal
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- zero deffects
- variation is bad on the manufacturing side - reduce or eliminate variation |
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Services' goal
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- good variation
- zero defections - embrace and add variation |
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loyalty
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- zero defections
- 100% retention, retain customers - word of mouth - retained customers go back and spend more |
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retention vs. new customer
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- profit from reduced operating costs
- new customer costs more to serve and know what to expect from them and they know what to expect from us - slows down system, people who havent been there take more time (starbucks) |
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Price premium
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- can charge a higher price than competitors
- loyalty goes hand in hand with it - people judge quality and sophistication in town - day you acquire new customer you're in the negative because you paid money to get them a customer, really important to turn over customers - zero defection |
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Manufacturing tools
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- want to reduce variation
- machines and computers - people are highly variable |
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Manufacturing (sampling)
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- measurement
- inspection - ex: Coca Cola pull 1 can off every 1 million and inspect it - have bad can have to stop production and inspect them all - discard before gets to customer |
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Sampling in fine dining
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- chef tasting everything before it goes out
- send people in who report to the owners |
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analysis
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- statistical
- progress - control |
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Tools of manufacturing
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- measurement
- inspection - discard - process mapping |
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Process mapping
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- reduce costs
- increase speed - reduce variation |
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how process mapping works
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- eliminate steps
- combine steps - more steps |
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Management
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- human resources
- organizational - recruiting/selection - disciplines/ firing - compensation/benefits |
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empowerment
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- employees choose when appropriate to respond
- ex: 2000 customer satisfaction allowance - training helps make this effective - can do background checks for fraud |
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Training
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- look for: standards, values, knowledge of system
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Recovery
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- we've done something bad so we have to do something about it to recover the customer
- "comp"- giving things complementary - can't discard like in manufacturing because we produce and consume at the same time - service guarantees- equivalent to warantees in manufacturing companies |
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service guarantees
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- explicit- you know about it (Dominos 30 min pizza)
- implicit- managers know about it, 4 seasons - they will comp you if they make a mistake |
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Good Guarantee
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1. unconditional- if you are not 100% satisfied we'll give you 100% of money back
2. meaningful promise- promise that you can identify and use 3. meaningful payout- the more they pay me, may not be monetary, the more it's unlikely to happen again 4. easy to invoke and collect- get them their money quickly, payout immediately, the easier the better |
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Compensation
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- if we're going to comp. we better figure out how it works
- company should be comping not employee - recovery is like discarding in manufacturing industry |
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Marketing (understanding)
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- understanding the industry
- ex: gas prices go up, travel decreases |
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consumer behavior
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- why do they behave the way they do?
- how can we manipulate them? - all about psychology, anthropology, sociology |
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strategy
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- big long-term plans and goals
- marketing and competitive strategy - how do we beat out the competition |
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Porter's 3 generic strategies
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- one size fits all
- 3 ways to set yourself apart from competition 1. cost leadership- walmart, low prices 2. differentiation- slightly more upscale, making your product different (Ex:target) 3. focus- smaller, all about filing small niches, very specific |
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Strategy : segmentation
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- segmentation: product lines in hotel industry, ex: fairfield inn
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Strategy: positioning
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-Disney vs. universal
- Disney targets children - Universal targets teens |
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market research
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- ex: comment card
- survey interview - focus group, better because it gets the social dynamic |
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environmental analysis
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- whats going on in our area of business?
- what are government regulations? - competitors, what are they doing? |
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Matching
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- matching customers and products
- matching segments - matching unmet needs - matching price tolerance - matching distribution channels |
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matching unmet needs
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- new product development, also called new service development or concept development
- W-brand, a concept, name, brand name design ect. - product- new hamburger, new beds ect. |
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matching tolerance
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- mstching money to consumer tolerance and behavior
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matching distribution channels
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- ex: Coca cola, own brand and make syrup
- bottling companies buy it, create product, we buy and sell to retail |
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retail
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- supermarket
- convience store - vending - fountain - resturaunt |
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pursuading
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- convincing customers to buy product
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ways of pursuading
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1. adertising- paid media
2. promotions 3. public relations 4. sales 5. electronic market- mix all other stuff through internet |
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2 subareas
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- accounting
- finance |
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accounting
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- keeping accounts of cash
- keeping records - keeping track of cash |
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finance
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- investment activities
- budgeting - how we use the money, buying a car, how paying for it - different for hospitaly |
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difference in finance for hospitality
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- real estate finance
1. appreciation- longer you keep it the more it's worth 2. asset backed- if investment goes bad, something investor can take for residual value (ex: hotel business goes out still have real estate) 3. REIT- real estate investment trust |
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GAAP
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- Generally
- Accepted - Accounting - Principles |
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IASB
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- International
- Accounting - Standards - Board |
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AICPA
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- American
- Institution - Certified - Public - Accountant |
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SEC
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- Securities
- Exchange - Commision - regulates what happens on NY stock exchange - have to follow their rules |
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Enron
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- fourtune 500 company
- accounting scandal, cooking the books - making fradulent accounting - got away with it because they did things that fell outside of GAAP but wasn't completely wrong |
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Sarbanes- Oxley
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- abbrev. Sarbox, sox
- all about taking vague things around GAAP and making them more specific |
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3 statements that show up at the end of every annual report
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1. income statement
2. cashflow statement 3. balance sheet |
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Property level
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1. General manager- manage all functions
2. AGM, EAM, RM- assistant GM, Executive GM, Resident Manager, or not exist 3. Directors/management committe |
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Rooms divison director
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1. reservations manager
2. Front office manager or Head consierge 3. Revenue manager 4. security manager 5. valet manager 6. PBX-telephone operations 7. housekeeping manager |
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PBX
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- telephones
- large revenues - charge people for making calls - virtually costs hotels nothing to provide |
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management positions
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- for all management positions you have assistants
- ex: assistant revenue manager |
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Directors management commitee
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1. Rooms division director
2. Food and beverage director 3. Sales and marketing director 4. Human resources director 5. engineering 6. controller |
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rooms division director
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- front office manager
- reservation manager - revenue manager - housekeeping - consierge, guest services manager - security - valet - pbx |
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food and beverage director
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- all resturaunt
- food, mini bar ect. |
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sales and marketing director
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- renting rooms in large groups
- ex: AMA for weekend |
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Human resources director
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- hiring, firing, payroll
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Engineering
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- labor unions
- HVAC Heat Ventilation Air Conditioning |
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Controller
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- usually not CPAs but spend life in fiances, quivalent to CFO at corporate level
- night auditor, organize financial records from day before at night - organzies them and makes report - usually only manager at 3am, mans front desk |
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Where is most revenue
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1. Rooms divison
2. Food and beverage 3. sales and marketing |
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Labor unions
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- all employees divided into two categories
- management - hourly workers - management represents owners what is good for owners - hourly workers interested in what is good for themselves - want more pay, owners want to pay less - unions reduce control and increase costs - 5% of hotels - resturaunts less - higher in Europe |
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Rack rate
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- highest you charge for a room
- customers pay less usually |
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overbooking
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- booking more rooms than you have
- incase of "no shows" - potential problem: if get less than predicted you have to "walk" them - get them some other place to stay - less common in luxury segment very bad to walk someone in this segment - common in airlines |
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Overbooking in luxury
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- 4 seasons calls Ritz
- has limo take over - stay Ritz our expense until we can accomodate them - pay Ritz butlers to pack and unpack them |
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Skip
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- someone who leaves without checking out and paying
- happens less now because they take your credit card |
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guest folio
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- someones financial info while they've checked in on property
- keep track of all your charges |
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Guest history database
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- keeps track of reg. customers overtime each time they stay
- ex: how much they spend, their preferences |
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city ledger
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- ledger- old fashion accounting book
- credit we provide to customers back before credit cards - most people then paid cash but local regular, keep ongoing account for them - basically "inhouse" credit for someone who isn't overnight guest |
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revenue or cost center
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- revenue center- part of a hotel that generates guests money (front desk, food and bev areas)
- cost center- not generating revenue, may be doing something for guests but not generating rev (back of house, acounting office) cost of doing business - key issue is whether or not it is generating revenue |
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Top service complaints (food and bev)
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1. speed of service
2. attentiveness- did server pay attention 3. rude employees 4. accuracy |
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speed of service
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- too fast in fine dining is bad
- too slow in QSR is bad - pacing, sequencing for certain dishes |
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attentiveness
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- can't get waiters attention, can't find them
- or are they too attentive |
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Food and bev industry breakdown in hotel
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1. Chef
2. Executive Sous chef 3. other sous chef, day evening, night |
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Sous chefs
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- evening sous cehfs usually prepares for breakfast
- banquet sous chef is sous chef but all they do is banquets - pastry chef- another sous chef, position is actually a little higher usuallu more important, does desserts and baking - get cooks under them |
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cooks
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- Garde manger- salad, cold station, shrimp cocktail
- bunch of stoves, typically each stove with cook in front of it, one fish and pasta, one chicken and vegetables, set up in a line (line cooks) |
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expeditor
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- only link betwen chefs and rest. manager
|
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front vs. back of house
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- front of house (right side managers)
- back of house (left side, kitchen, chefs) - chefs typically have alot of experience and power |
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Front of house management
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- resturaunt, lounge, room service
- all have managers, assistance managers and right below you have the Maitre'D |
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Maitre'D
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- depends where you go
- basically supervises servers or serves as a host - can be senior waiter 2. captains 3. waiters 4. back waiters- run things back and forth 5. bussers, set/clean tables |
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Lounge & Banquets
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- add bartender, have own bartender
- junior waiters start in banquets |
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room service
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- managers and assistant managers
- waiters only for room service |
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fine dining
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- best people because more profit coming through here
- alot of jobs dissappear when not dealing with 5 star resturaunt in hotel |
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IT
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- Information systems/technology
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MIS
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- Management Information Systems
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CRS
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- Central Reservations System
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GDS
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- Global Disribution System (SABRE)
- provides interconnectivity within all CRS systems |
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Expedia
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- Expedia to GDS to Delta CRS, Avis CRS, Hilton CRS
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POS
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- Point Of Sale
- cash register - leading company Micros |
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PMS
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- Property Management System
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PMS distribution
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- POS
- ELS - PBX - PPV - back of house, energry , security, accounting, time and attendance |
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ELS
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- Electronic locking system
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PBX
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- telephone
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PPV
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- Pay Per View
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