Departmental Organization of a Hotel

A hotel is an organization made up of different departments all of which have to work in close co-ordination for the efficient working of the organization.
Some departments are more important as far revenue is concerned, some do not produce revenue but are very important from the operational point view.

Thus the departments of the hotels can be classified under the three main headings:

1) Operating and revenue producing.
2) Operating and Non Revenue producing.
3) Non-operating and Revenue producing.

Operating and Revenue producing departments (O.R.P.):

Minor revenue producing departments:

a) Laundry: The hotel may have its own laundry or may have a contract with an outside laundry. In any case laundry of guest clothing is a facility provided by the hotel & is charged for.

b) Telephone department: Guests are charged for the local and trunk or STD calls. Charging can be done either by the telephone operator or in case of direct billing by telephone meters. In a small hotel, there would be just a small switch board, probably operated by the receptionist. In large hotels, there exists a separate telephone department, where the board is manned by operators working in shifts.

c) Swimming pool: Though hotel guests are not charged for using the pool, their guests can be charged for this facility. Many hotels offer a free swim along with a buffet lunch (charged per head) setup near pool side.

Major revenue producing departments:

1) Rooms departments: These are the departments concerned with the actual sale of rooms. This revenue producing section earns around 60% of the total hotel revenue. The departments under this section are Housekeeping and Front office. Front office is concerned with actual sale of rooms and hence comes in direct contact with the guest. Housekeeping is concerned with keeping the guest rooms clean and in a position to be sold. Hence though housekeeping is a behind the scene activity it is extremely important.

2) F & B Department: These are the departments concerned with the production of food & beverage items and their sale. F & B Production includes all kitchens, bakery, confectionary, stores and pantry. All these are behind the scene and responsible to the total preparation of food items right from the storage of raw materials to the presentation of the final dish. F & B Service includes all the service outlets where the food prepared by the production areas is sold to the guests.

These areas can be listed as:

a) Restaurants:  General as well as specialty restaurants. These restaurants have fixed hours of service.

b) Coffee Shop:  A coffee shop is open 24 hours of the day & serves mainly snacks & beverages. Heavy meals are generally served only during lunch and dinner time. A coffee shop generally has an informal atmosphere and plated service.

c) Bar: Serves alcoholic and non alcoholic beverages along with snacks. A permit is required to operate it and there are fixed hours of operation.

d) Room Service: 24 hours service in most large hotels.

e) Banquets: It is the major revenue producing department, among the F&B service departments. Some of the banquet functions are Dinners, Lunches, Wedding receptions, Cocktail parties, Conferences, Club meetings, outdoor caterings, etc.

Operating and Non revenue producing departments (O.N.R.P.):

a) Personnel: Deals with recruitment and training of staff, staff induction, promotions, welfare, etc.

b) Security: Deals with all unusual events in the hotel.

c) Maintenance: They are responsible for total maintenance and upkeep of rooms and public areas, i.e. Air-conditioning Lifts, Plumbing, electricity, Lighting,

carpentry, etc.

d) Accounts: Receives a copy of all departmental vouchers & the guest bills. Maintains cash register, city ledger, etc. prepares sales summary sheets for each day’s sales.

e) Sales and Marketing: Sales is concerned with getting and maintaining clientele for both rooms and food & beverage.

Non-operating and Revenue producing departments (N.R.P.):

They include travel agencies and airline offices, book shops, chemist, florist, bank, beauty parlour, etc. They either be let out on commission bases or on rental bases. These concessionaries should be reputable as for the guest they are a part of the hotel services.