The hotel industry is the servicing business conducting another significant branch in the economic development of the country. The hotel industry associates many types of industry, such as the tourist industry, the transportation industry, and the food servicing industry. It is apparent that every country emphasizes on the significance of this kind of industry, with a belief that this is a source for employment, disseminating the income of the country, conducting the country’s progression, especially the progressing country such as Thailand. It is accepted that the hotel industry brings a high income to the country. Therefore, the government sector and the public sector should cooperate in promoting this kind of business. Whereby, the public sector would make the investment, and the government sector would support. It is complacent that generally the hotel industry in Thailand is being internationally accepted, due to the modernization of the hotel and the optimum service. The Thai amiability to foreigners avails the progression of this kind of business. The Oriental Hotel is an example of success for Thai Hotel, in receiving the world best hotel award for eight consecutive years. This enables the image for the Thai hotel business to become in one of the top levels in the eyes of foreigners.
Presently, various hotels expanded the network and branches, with a belief that the hotel business is still going well in Thailand, because people are still much interested to make a tour in this region of the world. Moreover, the booming tourist industry is enchanting people to put in more investment. These factors would conduct a great income to the country. More people give better interest in the study of the Hotel Academic. There was the intense teaching, training, and learning in this subject, to concur with the growth of this business. On the overall, this is directly advantageous to the hospitality industry. Because administrators and the operators attained the knowledge in the hotel business administration with a correct servicing knowledge, this would also be advantageous to other relevant business.
HOTEL BUSINESS ADMINISTRATION FORMAT
The hotel business administration has different formats depending on the policy of servicing in each hotel, which can be classified as follows:
International Chain’s Hotel
This type of hotel business is the Joint Venture operation which refers to the participation of foreign investors.
For Thailand, in the case of a joint venture, the law stipulated that the Thai people must hold shares of not less than 51% of the registered capital.
The hotel business in the Chain Hotel may not be a joint venture, but an agreement between the person paying for the license and the vender of the license in all phases of administration, right from the administrator, the policy, the marketing, and the public advertisement through the expertise in the hotel branch. The duration of this indenture depends upon both parties, which the purchaser must pay for the license right, the administrative expenses, and must give dividends to the license vender. Whereby, the name of the particular hotel conglomerate, must be shown conspicuously; such as in the case of Holiday Inn Hotel, while the Crown Plaza is the conglomerate hotel of the Holiday Inn; the Regent Bangkok is a member of the Regent International Hotel; the Hyatt Erawan, Bangkok, is a hotel in the Hyatt International, etc.
Each hotel conglomerate would have its own branches in every region of the world, such as the Regent Group International Hotel who has lots of hotels in its conglomeration.
Regent Hong Kong;
Regent Singapore;
Regent Melbourne:
Regent Taipei;
Regent Fiji;
Regent Beverly Winsor
Regent Sydney
Regent Oakland
Regent Bangkok
Regent Kuala Lumpur
In this case, the hotel reservation system enables a direct contact with the reservation central reservation of the Regent which is in the United States, Australia, and Europe. However, the contact may be on the direct telephone line, or by a letter to the Sales Office of the Regent International Hotel at Hong Kong, Tokyo, Singapore, Los Angeles, New York, London, Frankfurt, Perth, Sydney. A direct contact to every Regent Hotel through the computer line is possible with a reservation center at Alberque, United States.
Moreover, there is the type of companies with an agreement to buy the business of notable hotel conglomerates, with accepted services, for the operation. Such as the Four Season Hotels and Resorts who agreed to buy the enterprise of Regent International Hotel; while the Four Season continues to utilize the name Regent International in the operation of the Regent International in the Asia Pacific Region.
Such franchise business is highly successful with lots of advantages:
Clients procurement and room reservations can be done for all over the world with speed and reduced expenses;
Reciprocities marketing advantages;
Minimized expenses in the advertisement and public relations;
Attains lots of capital, and enables the enterprise expansion;
A system with the same standard, in the servicing of food and drink, and the accommodation;
The profit and loss is shared, enabling an assistance for each other, avoiding the instability of the enterprise;
A service in the international standard, and generally acceptable quality;
The personnel are always alert in their operation, with a constant training and development
Family Hotel
This business is done amongst the family or cousins. This type of administration has long survived ever since the hotel service has begun, because it is suitable for small hotels, and need the least administrator and personnel. Therefore, when this business is conducted within the family, brothers and sisters would cooperate in the administration and become proprietors, such as the Family Hotel in the United States with the name of ‘Mom and Pop’. There were less than 100 rooms, while the hotel was owned by the head of the family. The wife and children help in the Mini-Mart, and the Perm Parlour within the hotel, and owners would give services themselves. There are both merits and demerits in this type of business.
Merit
This type of business is independent, able to express one’s opinion and make the decision by themselves.
Need little investment.
The association between the proprietors and clients is very good.
The work control can be done extensively, because of the limited number of personnel.
Demerit
The opportunity to develop into a large enterprise is rare.
This job disbursement and the work entrustment have not been systemized.
The administrator and the personnel would join the business through the patronizing system (selected through cousins, friends, or recommendations). In this case, the staffing may not be successful in enrolling competent personnel, while the personnel himself might be conceited and arrogant, and ignored the stipulated rules and regulations.
The personnel development to a high level is limited because there are few positions.
There is another type of administration called the Family Chain; this is also the family business. However, the administrative may be hired to control the internal operation for the entrepreneur, while the marketing may be done by the entrepreneur, or may make an agreement with any private marketing company such as Utell International who would operate the marketing for the hotel, with the international room reservation. In this kind of business, every policy would come from the proprietor, or the hotel committee or the administrative who received instructions from the proprietor. When the business is successful, the proprietor would enlarge the branches to various cities which are travel sources, both internally and externally. An example of this is The Imperial Family, who started with the Imperial Hotel, Vidhayu Road. Later this hotel enlarged to Impalatara, Imperial Smui, Thongsai, Boathouse, Imperial Queens Park, etc.
Management Contract (Management Team)
This is a contract with companies dealing with the hotel management, right from commencing the hotel construction or after the hotel is built. The company undertaking this management, would have its own teamwork to control the specific hotel, through the General Manager, under the Management Contract, the undertaking company, would execute without a capital investment nor other assets in the hotel, while the proprietor would have to be responsible for all the investment. The hotel conglomerate would stipulated the policy, the operation procedure, the accounting, the marketing, while the proprietor would have to pay for these expenses, and the dividends would be apportioned according to the profit (after deducting the expenses, but not the liabilities). While in some companies, there may be the administrative assurance called the Negative Guarantee; that is should the output be ineffective, then the administration would be conducted free of charge. The administrative time depends upon the covenant, and usually not less than 10 years, because the newly constructed hotels are in the average of 3-5 first years, and are still in the Setting in Period with no dividends. But it may still be less than 10 years, such as the Dusit Thani who signed a Management Contract with the hotel conglomerate of Westin (Western International) in 1970 and the contract terminated in 1972. The contract was changed from the Management Contract to the Marketing Contract and did not need to change the name, such as the Dusit Thani who did not use the name of Western International, and the Rama Hotel, Silom, (1958), did not use the name of the Hilton International.
Presently, various hotels expanded the network and branches, with a belief that the hotel business is still going well in Thailand, because people are still much interested to make a tour in this region of the world. Moreover, the booming tourist industry is enchanting people to put in more investment. These factors would conduct a great income to the country. More people give better interest in the study of the Hotel Academic. There was the intense teaching, training, and learning in this subject, to concur with the growth of this business. On the overall, this is directly advantageous to the hospitality industry. Because administrators and the operators attained the knowledge in the hotel business administration with a correct servicing knowledge, this would also be advantageous to other relevant business.
HOTEL BUSINESS ADMINISTRATION FORMAT
The hotel business administration has different formats depending on the policy of servicing in each hotel, which can be classified as follows:
International Chain’s Hotel
This type of hotel business is the Joint Venture operation which refers to the participation of foreign investors.
For Thailand, in the case of a joint venture, the law stipulated that the Thai people must hold shares of not less than 51% of the registered capital.
The hotel business in the Chain Hotel may not be a joint venture, but an agreement between the person paying for the license and the vender of the license in all phases of administration, right from the administrator, the policy, the marketing, and the public advertisement through the expertise in the hotel branch. The duration of this indenture depends upon both parties, which the purchaser must pay for the license right, the administrative expenses, and must give dividends to the license vender. Whereby, the name of the particular hotel conglomerate, must be shown conspicuously; such as in the case of Holiday Inn Hotel, while the Crown Plaza is the conglomerate hotel of the Holiday Inn; the Regent Bangkok is a member of the Regent International Hotel; the Hyatt Erawan, Bangkok, is a hotel in the Hyatt International, etc.
Each hotel conglomerate would have its own branches in every region of the world, such as the Regent Group International Hotel who has lots of hotels in its conglomeration.
In this case, the hotel reservation system enables a direct contact with the reservation central reservation of the Regent which is in the United States, Australia, and Europe. However, the contact may be on the direct telephone line, or by a letter to the Sales Office of the Regent International Hotel at Hong Kong, Tokyo, Singapore, Los Angeles, New York, London, Frankfurt, Perth, Sydney. A direct contact to every Regent Hotel through the computer line is possible with a reservation center at Alberque, United States.
Moreover, there is the type of companies with an agreement to buy the business of notable hotel conglomerates, with accepted services, for the operation. Such as the Four Season Hotels and Resorts who agreed to buy the enterprise of Regent International Hotel; while the Four Season continues to utilize the name Regent International in the operation of the Regent International in the Asia Pacific Region.
Such franchise business is highly successful with lots of advantages:
Family Hotel
This business is done amongst the family or cousins. This type of administration has long survived ever since the hotel service has begun, because it is suitable for small hotels, and need the least administrator and personnel. Therefore, when this business is conducted within the family, brothers and sisters would cooperate in the administration and become proprietors, such as the Family Hotel in the United States with the name of ‘Mom and Pop’. There were less than 100 rooms, while the hotel was owned by the head of the family. The wife and children help in the Mini-Mart, and the Perm Parlour within the hotel, and owners would give services themselves. There are both merits and demerits in this type of business.
Merit
Demerit
There is another type of administration called the Family Chain; this is also the family business. However, the administrative may be hired to control the internal operation for the entrepreneur, while the marketing may be done by the entrepreneur, or may make an agreement with any private marketing company such as Utell International who would operate the marketing for the hotel, with the international room reservation. In this kind of business, every policy would come from the proprietor, or the hotel committee or the administrative who received instructions from the proprietor. When the business is successful, the proprietor would enlarge the branches to various cities which are travel sources, both internally and externally. An example of this is The Imperial Family, who started with the Imperial Hotel, Vidhayu Road. Later this hotel enlarged to Impalatara, Imperial Smui, Thongsai, Boathouse, Imperial Queens Park, etc.
Management Contract (Management Team)
This is a contract with companies dealing with the hotel management, right from commencing the hotel construction or after the hotel is built. The company undertaking this management, would have its own teamwork to control the specific hotel, through the General Manager, under the Management Contract, the undertaking company, would execute without a capital investment nor other assets in the hotel, while the proprietor would have to be responsible for all the investment. The hotel conglomerate would stipulated the policy, the operation procedure, the accounting, the marketing, while the proprietor would have to pay for these expenses, and the dividends would be apportioned according to the profit (after deducting the expenses, but not the liabilities). While in some companies, there may be the administrative assurance called the Negative Guarantee; that is should the output be ineffective, then the administration would be conducted free of charge. The administrative time depends upon the covenant, and usually not less than 10 years, because the newly constructed hotels are in the average of 3-5 first years, and are still in the Setting in Period with no dividends. But it may still be less than 10 years, such as the Dusit Thani who signed a Management Contract with the hotel conglomerate of Westin (Western International) in 1970 and the contract terminated in 1972. The contract was changed from the Management Contract to the Marketing Contract and did not need to change the name, such as the Dusit Thani who did not use the name of Western International, and the Rama Hotel, Silom, (1958), did not use the name of the Hilton International.
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