Hotel and Lodging Career Research Essay

Executive Summary With high curiosity and interest in many fields, I have changed my career goal from archaeology to science then to architecture and finally to entrepreneurship in hospitality and traveling. In preparation for launching my own business, I determined to learn more about the hotel and lodging industry through a financial and accounting position. A hotel is an establishment that provides temporary accommodation and various services depending on the rate per night a customer can afford. Nowadays, as customers’ needs and affordability vary, hotel and lodging facilities could be classified into multiple levels of definitions based on economic structure, price, chain scale, location, room configuration or market served. A large hotel with full service often comprises many departments with specialized employees. A General Manager leads the main operating departments which consist of Room, Security, Food and Beverage and Minor Services. The administrative departments of a hotel are Accounting, Engineering and Marketing and Sales. As of 2007, in the US, there are approximately 49 thousand hotels and lodging properties that have over 15 rooms, providing about 4.5 million guest rooms and generating 139.4 billion dollars in revenue. The U.S hotel and lodging industry employs about 1.4 million workers and serves both business and leisure travelers. International travelers make up 22% of lodging room occupants. In the current economic downturn that started in late 2007, decreases in both traveling and financing has pulled earnings of hotels in the US down by 11.6% in occupancy rate, 8.6% in average daily rate, and 19.1% in revenue per available room, leaving the industry in a struggle to attract customers and provide jobs for their employees. A typical entry-level administrative position in a hotel requires a four-year bachelor’s degree in a business related major. Other desirable traits for candidates are leadership skills, communications skills, confidence, and more. There are few administrative positions in the current hotel and lodging industry that college graduates can obtain, but they are exciting jobs that promise quick advancement, relocation opportunities, and even room rate discounts for associates. Financial and accounting positions in the hotel industry include Assistant Controller, Senior Assistant Controller, and Director of Finance and Accounting. Assistant Controllers and Senior Assistant Controllers work at the daily operating level and assist the Director of Finance and Accounting in making decisions. Directors of Finances and Accounting work at strategic decision making and are members of the executive committee of the hotel, overseeing the health of the hotel in general. With leadership skills, communication skills and by going beyond the expected and being willing to relocate, a new college graduate could advance quickly in the hotel industry. The knowledge I will gain from working in hotel and lodging industry will prepare me to launch my own lodging business.â€Æ' From myriad interest to a focus on hospitality With a high level of curiosity and thousands of questions in mind, I have been an explorer since I was small. By the time I was 10, I decided to discover the secrets of the world by becoming an archaeologist, who travels to different places and digs things up all day. Before I thought further about digging around, however, I became captivated by Thomas Alva Edison – the genius inventor with thousands of inventions. My hope for becoming an inventor was so high that I started to study really hard in order to understand more about natural science. For two years, I kept my enthusiasm, but the attraction for houses and buildings soon dawned on me. At the time, I was really good at industrial technology courses, especially industrial drawing and blueprint design. Being a visual learner, I had no difficulty interpreting blueprints. I even scribbled some of my own ideas and purchased numerous issues of architectural magazines. When I got into high school, I told myself that I would take an exam to get into an architecture school. However, in Vietnam, at the time, there was a movement of studying abroad. Even though I got into the science division of high school, English has always been my forte, and I had feelings of uncertainty about becoming an architect. Then, in my last year of high school, I applied for a high school exchange program in the United States and took the first step on my study abroad route. As I matured abroad, I stepped away from my childhood interests and thought carefully about the reality of each job I was interested in. Still being enthusiastic about discovering the world, I shifted my method from being an archaeologist to being a traveler. Still enamored of great buildings and designs, I desired to work at nice hotels and resorts or build my own. With my parents owning a business, I was strongly influenced by the independence and creativity of entrepreneurship, which inspired me to become an entrepreneur specializing in hotels and traveling. More importantly, as I studied abroad I developed a sympathy for others travelers and discovered a passion to fulfill others’ need while away from home. Hospitality is also a career that is people-oriented, offering tremendous opportunities to improve communication skills and meet people. As I am pursuing a double major in Accounting and Finance, I look forward to obtaining a financial position in a hotel, in order to learn about the cost and profits of operating a hotel and the process of financing hotels specifically. As I increase my knowledge, my final direction is to launch a hospitality business of my own, providing customers with unique impressions, positive experiences and exceptional services. Hotel and Lodging Industry at a Glance As people travel for various purposes, hotels are convenient facilities that offer temporary accommodation and services during the stay at appropriate prices. Thus, a harbor view room with large bathroom, TV, in-room Internet, air conditioning, 1,000 thread-count bedding, coffee machine, morning paper, and more in a hotel that has a three-star restaurant, conference room, and swimming pools and is located in the middle of all the action could cost hundreds of dollars a night. Meanwhile, a bunk bed in a hostel, with a shared bathroom at the end of the hall and common kitchen costs about twenty dollars a night. With a diversity of customers, hotels and lodging facilities nowadays are thoroughly differentiated based on the services provided. In the book A Host of Opportunities: An Introduction to Hospitality Management a hotel can be classified into multiple definitions based on its structure, price, chain scale, location, room configuration or market served (Hoof 75-83). Hotel Organizational Structure In order to effectively handle myriad customers’ needs, a large hotel could contain many departments including Rooms department, Food and Beverage department, and other administrative departments. Smaller hotels or family-owned facilities may not have the same range of staff or definite departmental arrangement; instead, lodging managers and employees may multitask. Below is a diagram of a large hotel’s departmental organization and its employees, from A Host of Opportunities: An Introduction to Hospitality Management. Scope of U.S Lodging Industry According to the American Hotel and Lodging Association’s â€Å"2008 Lodging Industry Profile,† by 2007 there were 48,062 lodging properties of 15 rooms and up in the United States. Those properties made up a total of 4,476,191 guestrooms and generated $139.4 billion in sales. The revenue per available room (RevPAR) was $65.52, and the average occupancy rate was 63.1%. Room rates rose constantly, while the most updated average room rate stood at $103.87 in 2007. The before tax profits was $28 billion, according to Smith Travel Research (STR), an organization specializing in benchmark and research for the lodging industry (qtd. in â€Å"2008 Lodging Industry Profile†). Hotel properties across the country employed about 1.4 million workers. Meanwhile, lodging customers were comprised of 44% business travelers and 56% leisure travelers. The United States ranked first in international customer receipts with spending from international travelers at $122 billion, and continued to receive more international travelers than previous years at a 10% growth rate. This enormous flow of international travelers made up 22% of all lodging room nights in 2007 (â€Å"2008 Lodging Industry Profile†). Thus, by 2007 the U.S hotel and lodging industry was still prospering, until it got caught later in the current of the economic downturn. Hotel and Lodging Industry in Current Economic Downturn The current economic slowdown discouraged consumer spending on vacation travel and business spending on business travel, which affected the hotel industry directly. According to Smith Travel Research â€Å"the U.S hotel industry posted declined in the three key performance measurements during the week of 26 April – 2 May,† as in STR’s recent weekly U.S performance report (qtd. in â€Å"STR posts US results for week ending 2 May 2009†). The three key measurements are industry occupancy rate (OC), which declined by 11.6% over a year performance, average daily rate (ADR), which declined by 8.6% and revenue per available room (RevPAR), which declined by 19.1% (â€Å"STR posts US results for week ending 2 May 2009†). As the earnings decline, hotels cut costs in a variety of ways including employments, make it harder even for college graduates to find good positions. Preparing for a Career in Hotel Management In order to obtain an administrative position in a hotel, a bachelor’s degree from an accredited college or university is preferred, especially for finance and accounting positions. In the Marriot International Incorporate’s description of financial and accounting positions provided by Beth Zabawa, Director of Finance and Accounting at Renaissance St. Louis Grand & Suites Hotel, a candidate for the Assistant Controller position – the entry level financial position – should have â€Å"4-year bachelor’s degree in Finance and Accounting or related major; no work experience required† (Zabawa). However, in place of work experience, exceptional interpersonal skills and positive attitude such as leadership skills, communication skills and confidence are desirable (Zabawa). Financial and Accounting Positions in the Hotel and Lodging Industry Hotel and lodging careers do not suggest working only as a front desk clerk or housekeeping. Many management positions in hotels such as general manager, controller, and sales offer quick advancement, relocation opportunities, and many other novelty benefits such as hotel-associate-only discounts on room rate. These positions are good starting points for college graduates. For finance major graduates, positions in the hotel industry may be limited but could be uniquely rewarding. At small establishments, the lodging manager often oversees both operating activities and administrative activities, including bookkeeping and financing. Only large hotels need and are able to afford several accounting and finance positions. Some of the financial and accounting positions are Assistant Controller, Senior Assistant Controller, and Director of Finance and Accounting. Description of the jobs In the Marriot International Incorporated’s description of financial and accounting positions provided by Zabawa, the entry-level position for a college undergraduate is Assistant Controller, who works at the daily operating level. An assistant controller’s â€Å"primary responsibilities include financial analysis and financial reporting, budgeting and forecasting, audit and control, asset and liability reconciliation, working capital and control† (Zabawa). Zabawa said that Assistant Controller mostly works in the office, reports to the Director of Finance and Accounting and attends meetings with other departments. She also provided other information about salary and benefits, training, opportunities for advancement for financial positions and some advice for college graduates starting in the industry. Incoming employees begin with an extensive Management Program that lasts about 6 to 8 weeks, equipping the person with the knowledge and processes involved with working at Marriott Inc. Following the extensive training are online training and a 1-week class that evaluates the new employees and train them to work in groups. The starting salary for an Assistant Controller is at around $40,000 a year. Beside salary, associates at Marriott Inc. receive benefits such as health insurance, life insurance, disability insurance, dental insurance and a 401k plan. Depending on the properties, employees may benefit from working in a hotel by receiving free lunch or discount rates when staying at the chain’s properties. After 12 to 18 months, there is an opportunity for the Assistant Controller to transfer to other properties of Marriott Inc. or to be promoted to Senior Assistant Controller (Zabawa). Senior Assistant Controller’s responsibilities include overlooking the tasks of the Assistant Controller and assisting the Director of Finance and Accounting in reporting and making decisions. After 12 to 18 months to two years, a Senior Assistant Controller at Marriott Inc. could either transfer to other properties or become Director of Finance and Accounting at smaller properties (Zabawa). The Director of Finance and Accounting enjoys many different aspects of financial careers. As part of the Executive Committee of the properties, the main responsibilities of a Director of Finance and Accounting are strategic decision making. Stepping away from the daily paper work of the Assistant Controller or Senior Assistant Controller work, a Director of Finance and Accounting â€Å"attends meetings to discuss the hotel’s operational strategies, controls spending and develops budget, studies competitors and communicates with the estate’s owner,† described Zabawa. She revealed her opinions for the Director of Finance and Accounting position as exciting, informational and engaging. The work is different each day, the reports the Director of Finance and Accounting received provide thorough knowledge of the hotel and lodging industry and Marriott Inc. has a very loyal working culture with each associate working as if the hotel is their own business (Zabawa). Zabawa advised new college graduates pursuing hotel careers to be innovative, confident, assertive, and proactive, and find ways to add value to the business. Interpersonal skills such as communication skills, both speaking and writing skills, and leadership skills are invaluable for college graduates to advance in the hotel and lodging industry (Zabawa). The flow chart below demonstrates the time and skills an entry level position in the Finance and Accounting office needs in order to advance to the next level. Conclusion The hotel and lodging industry is the intersection between the travel and hospitality industries that offers many different directions to explore. While working in a financial position in a hotel, I will be able to learn more about the financial aspect of hotel operation, gain experience in customer service and find a niche for myself to debut in the hotel industry. Combination with private service is a possible solution to my entrepreneurship direction. In comparison with US and European hotel industry, Asian markets are less professional and developed. As I start in Vietnam, I want to broaden the Vietnamese tourism industry with ethnic hotels or lodging facilities that would bring a truly authentic experience to travelers to Vietnam. With later international expansion, I hope to establish a model of authentic traveling and cultural interaction in the world tourism industry. Work Cited â€Å"2008 Lodging Industry Profile.† American Hotel and Lodging Association. 30 Apr. 2009. â€Å"Dedicated Staff.† The Knightsbridge London. 30 Apr. 2009. Five Star Concierge Service LLC. 30 Apr. 2009. Hoof, Hubert, Gary Vallen, Marilyn Mc. Donald, and Paul Wiener. A Host of Opportunities: An Introduction to Hospitality Management. New Jersey: Pearson Prentice Hall, 2007. Print. â€Å"Housekeeping Service.† The Knightsbridge London. 30 Apr. 2009. â€Å"STR posts US results for week ending 2 May 2009.† Hospitalitynet.org. Hospitality Net, 8 May. 2009. 10 May 2009. Zabawa, Beth. Personal Interview. 8 Apr. 2009.