Blog 4-Support Functions In The Hotel Industry

Backtracking back to blog 2, we identified many different functions that support operations and management services within a hotel. These support functions are vital to ensure successful delivery of services to guests on a daily basis.

 

Guest Services

Guests are the main source of revenue for any hotel, therefore having a support system in place to deal with all guest enquiries, complaints and feedback provides the hotel with a unique opportunity to further improve services and operational procedures. Due to the scale of operations and the number of guests handled on a daily basis, it is also important for guests to receive information quickly. Therefore a dedicated guest support function allows hotels to achieve the quick turnaround of enquires, issues and problem resolution. (Focus hotels, 2013)

Sales and Marketing

These are two separate and distinct areas of the business, and require a good understanding of the local market place that the business is operating in. Marketing function identifies the target market and needs of guests to develop various products, services and marketing strategies. The sales function helps to implement these strategies in a bid to drive profitability using promotions and different selling techniques. The downside is that large budgets can be used up quickly providing little or no return if not managed effectively. (Focus hotels, 2013)

Human Resources

As this is one of the highest areas of cost, hotels need to ensure the right people skills and knowledge are in place to develop the business. HR support function makes sure all employees have the correct provision and facilities in place to successfully achieve the business objective. (Hilton Worldwide, 2013)

Financial Management

Using the best practice, finance division ensure the smooth control of the business by setting budgets, forecasting profit and loss, managing cash flow and overseeing all payments and transactions of guests and employees payroll. (Focus hotels, 2013)

Procurement & Supply

To ensure that all purchases for the business are made at best market prices from a list of nominated, industry suppliers. Including:

• Food purchasing
• Liquor purchasing
• Laundry
• Energy
• Boiler plant, fire alarm system and kitchen maintenance contracts
• Guest Supplies
• Stationery

The support function ensures every department purchase within an established limit which may be agreed by finance, and are responsible for managing all aspects of purchases, from placing orders to arranging delivery and making payments. (Focus hotels, 2013)

Maintenance

The role of maintenance support function is important to assist with both planned and reactive/unexpected maintenance, defect repair and health & safety checks. Their experience in the building trade means they can tackle general building maintenance to ensure the daily running of hotel, but also oversee bigger developments such as extensions and renovations. (Focus hotels, 2013)

IT & Technology

Having a IT support function saves time and money for hotels when systems crash or become inoperable. They are experts who build the technology infrastructure, and therefore are responsible for ensuring critical data is connected, protected and backed up where necessary. They also modify and update technology when requested. (Hilton Worldwide, 2013)

Outsourcing

Having identified a number of support functions, we can see that they play a big role in the daily operations of a hotel. However, hotel operations vary in size and scale which means smaller establishments utilise either a few or none of the functions described above, while larger establishments may have all the support functions plus additional functions to oversee other areas of the business. In such cases, it can become unfeasible for small and large businesses to be managing different function areas. The smaller hotels do not have the capacity or the resources to manage so many additional tasks, while larger hotels are over burdened with too many support functions. This is where outsourcing some of the support functions could bring benefits to big and small hotels.(Moulds.R, 2013)

For example, it may be advantageous for a hotel big or small to outsource their IT & Technology support function to a company that specialise in the field. It will reduce the burden of activities hotel management face, as well as the overheads spent on a separate labour force, office space and expensive equipment. Hotel management can therefore refocus and concentrate on achieving results in core activities such as guest services and sales and marketing. In addition, with the technology market continuously evolving and growing with new products and services, outsourcing gives hotels greater flexibility when thinking about future change to stay current and up-to-date.

In contrast, if a hotel decided to outsource guest service support function to agency staff to look after the front desk and reception, it may prove to be a big disadvantage for the hotel. Not only will guests be receiving inconsistent service, the staffing will lack the brand standard service approach and not be able to effectively resolve guest enquiries and issues as quickly. With greater physical distance between hotel management and the employees, there is a loss of control over that support function as agency staff regularly changes, making it difficult to implement change and compliance which compromises productivity. Agent staff not being on the payroll and not directly employed by the hotel can also pose a security threat to guests. Those working on the front desk have access to confidential guest information as well as there bank card details. The hotel may remain legally liable in any case of fraud. (Moulds.R, 2013)

 

Sources

• Focus Hotels, 2013. Hotel Management Specialists. Available at: http://www.focushotelsmanagement.co.uk/services.html

         Accessed  at: 1^st Dec,2013

• Hilton Worldwide, 2013. Management Service. Available at: http://www.hiltonmanagementservices.com/en/support-functions/owner-relations.html

       Accessed at: 1^st Dec,2013

 

• Mould, R 2013, Support Functions in the Hospitality Industry at Hammersmith College, London, on 26 November 2013.