The Hotel Business - Assignment Example

Your The Hotel Business Introduction The hotel business is one of the booming industries today. The advent of globalization has both necessitated and attracted people to travel far geographic regions either for business, studies or leisure purposes. The demand for hotels have drastically increase with this change in lifestyle. The hotel industry has then been a very profitable venture for most businessmen. Travel catalyzes the hotel industry. And since technology has increased the possibility and ease of transportation, we predict that the hotel industry will also continue to boom. Unlike the local restaurants and bars, hotels have the unique feature of serving those people away from home. It is a very basic function of the hotel which distinguishes it from other types of business, "and to which other functions are supplementary" (Slavoj Medlik). In this paper, we will discuss the practical guide to achieving the legal, the safest and the best practices associated with the setting up of small hotels. We will discuss in details the aspects of agreeing contracts, employing staff, ensuring quality, working with children, health and safety around the premises (including risk-assessments), insurances, customer care and avoidance of discrimination in this paper. Main Body Agreeing Contracts Agreeing on contracts and signing becomes very fragile especially if it involves a great deal of resource and puts the integrity of the business at risk. Contract agreement can be a very sensitive issue whether it be on employment, on business links and even in some financial decisions such as investing and borrowing. People who have experience on contract agreements have something to share on how to make the process of agreeing easy and comfortable. For the hotel industry, the practical guide is the same as with the other industries. Nicolas Sharp and Sheena Etches divided the aspects of agreeing on contracts into seven(7). The first section discusses the practical guides in making the proper approach. The findings is that "the interests of both parties can never coincide on every detail" which "means that if a fair contract is to be concluded, both parties must be prepared to compromise" (Nicholas Sharp). The first practical then is learn to compromise on some details which are not necessarily essential to the over-all health and profitability of the company. On the other hand, if both parties do not agree on non-negotiable aspects such as price, then the owner must not pursue with the deal. Preparation is also very important. This is the stage where the hotel owner can study previous contracts on similar arrangements so that adapting there will be a foundation for familiarity. This is also the stage where the owner can write down the most important points that you need on agree on (Nicholas Sharp). As to the records, Sharp and Etches give two practicals: "During telephone conversations and at meetings take notes of the points covered and at the end read them back to the other person to ensure there is a mutual understanding of what has been agreed" and "confirm those points in a letter as soon as possible" while also maintaining copies of all communications (Nicholas Sharp). When the contract is with a supplier, several things must be done before inking the contract. It would be very helpful to shop for different quotes before narrowing down your choice to a particular supplier. The contract should contain the relevant information such as "how and when payment should be made" (National Consumer Agency). During the negotiation, it is highly advised to never agree to something whether verbally or in writing when you still have some points to raise and agree on. A very straight action of saying "no" to a proposal that contains some things that you do not agree on is also a must. "Tactically, it is often better for you to prepare and send the other party the contract you want, rather than wait to get the other party's version. If you have to react to another version this will put you immediately on the defensive since you will have to find reasons not to accept what the other party wants" (Nicholas Sharp). When both parties agree and conmpromised on everything already, it would not be time to put everything in the contract. "If you are using a letter contract, it is best to write at the end words such as: 'If you are happy that this letter accurately reflects what we have agreed, please sign and return the enclosed spare copy of this letter'. You should then send two signed copies, the second with a space at the end for the other person to sign with the words AGREED TO written above the space" (Nicholas Sharp). Then lastly, do not use other side letters, other agreements and other understanding outside the contract itself. Everything must be written in the contract. Employing Staff In the website Business Link, employing staff is seen as a business aspect that contains several steps. Employing staff does not end with the process of hiring. Rather it involves, taking on staff, the payment and pension schemes, managing the performance of the staffs, improving your staff's performance and managing problems and incidents (Business Link). Employing people is a form of investment. Therefore taking this investment wisely and more seriously is very valuable. The type of worker that you wish to employ would depend on factors such as (1) how constant the work is, (2) how long the work will last and (3) the number of hours of work each week (Business Link). Employment can be permanent, fixed-term contract, temporary staff, freelancers, consultant an contractors and zero-hours contract (Business Link). It would be best to match your needs with this different types of employment. In terms of payment and compensation, it is necessary to set rates that will encourage work and productivity among those who are already part of the company and at the same time attract those who are not yet part of the company to apply. This will keep the existing employees loyal and will lessen employee turnover. Making sure that the company does not violate the law is also very important. Laws on minimum wages and compensation should be seriously observed. Lastly, it is very essential that the payment scheme adapted by the company is known to the employees (Business Link). To be successful in business, there should always be a desire to improve on performance. Thus, "developing the skills of people working in your business is an important way of doing this - new skills can improve your productivity, competitiveness and profitability. Comparing the skills you have with the skills you need to achieve your business goals is an important step towards improving your performance" (Business Link). Some practicals in the improvement of performance are: reviewing your business performance, benchmarking your company performance against your competitors, analyze your strengths, weaknesses, opportunities and threats, analyze the skills that the business requires, learn the personal skills, potentials and ambitions of your staff and matching the staff development programs that will answer the need of your employees (Business Link). Lastly, companies face problems such as redundancies, disputes and grievances. "Therefore it's crucial that you have written disciplinary rules and procedures. If problems do arise, these procedures should help dissuade employees from making tribunal claims and ensure you deal with employees fairly" (Business Link). Some of the things that will help sort this problem out are: writing rules and procedures in writing and abiding by the Acas code of practice on disciplinary and grievances procedures. Employing staffs take careful consideration. Inability to handle them correctly does not only entail financial risks but may also result to legal problems that can tarnish the credibility and integrity of the company. Ensuring Equality Starting December 1, 2003 the European Union has issued a directive that makes it illegal 'for an employer to discriminate because of a worker's sexuality" (Equality and Employment Rights Department). The law was not enacted to specifically protect lesbians, gays and bisexuals but it includes everyone in the protection against discrimination. "In the unlikely event that an employer refused to employ someone, or treated them less favourably, because they were heterosexual, and one of the exceptions did not apply, this would also be unlawful" (Equality and Employment Rights Department). Building equality in the workplace can be achieved by mainstreaming equalities into each part of an organization's work. "It is done by ensuring that an equalities perspectives is built into every part of the organization's work" (Infoscotland.com). Mainstreaming equalities also means establishing a corporate culture which provides equal opportunities and chance to participate without regard to race, gender, disability, age, sexual orientation, language, social origin and beliefs. "In order to mainstream effectively organizations should ensure that they have systems and processes set up to suit the needs of different people from the beginning. Equal access can vary for different people depending on their specific needs. For example, providing access for wheelchair users in office buildings or providing space for religious prayers. More women than men have responsibilities for looking after children and would benefit more from flexible working hours" (Infoscotland.com). Equality also means women and men have equal pay for work of equal value. This covers other benefits such as care and private health care. Work are considered of equal value if they are the same in terms of the demand of the job (Business Link). Some of the practical guides in promoting equality are as follows: develop and equal opportunity policy, provide equality trainings for all people, draw up clear and justifiable criteria which are demonstrably objective and job related and Develop links with local community groups, organizations and schools, in order to reach a wider pool of potential applicants (Equality and Employment Rights Department). Working with Children Employing the children which may be up to the age of 25 necessitate adherence to some legal responsibilities. "To protect the health and welfare of young people there are strict laws governing their employment" and "to ensure young people receive the best opportunities there are laws governing their training and education - as well as voluntary and financial schemes from which your business could benefit" (Business Link) According to the National Council for Educational Excellence, employers can only: offer work experience places for students or work shadowing for teachers provide resources, equipment and use of premises set actual business problems for students to solve in their projects give talks and lectures to enrich the curriculum with real business experience Source: (Business Link) The hotel business can also involve fresh graduates in accordance with the recomnnedation of the government, that is through "internships, post-graduate training, teaching, volunteering, setting up their own venture and knwoledge transfer partnerships" (Business Link). Work experience placement is an excellent way of helping the society and at the same time utilize labor resource for free. Specifically, this helps buld their business by "accessing new skills, promote company as an employer of choice to a wide pool of graduate, access a cost effective additional staff resource and recruit talented and skilled graduates" (Business Link). Health and Safety around the premises (Including risk assessments) Ensuring the health and safety of the workers is a primary responsibility of the firm. Work environment should not necessarily be comfortable but should be safe and conducive to work. For the hotel business, the right approach to ensuring health and safety would not just up the level of complying with the minimum requirements. Enhancing the work environment to the best possible also helps the business. "Poor health and safety leads to illness and accidents and significant costs for your business" while "effective health and safety practices pay for themselves. They also improve your reputation with customers, regulators and your own employees" (Business Link). The hotel should have a standard operating procedures which pertains to the concerns such as personal preparation and behavior of personnel, preparation of the work area and equipment, maintenance of the work area and emergencies (Erickson). Specifically, the actions to be implemented are: to create a health and safety policy which must be put in writing, ensuring that the workplace meets the minimum standards of comfort and cleanliness and recording major injuries diseases and dangerous accidents in an accident book (Business Link). An example of this regulation, which can also be very beneficial to the company is the Hazard communication regulation. The hotel business has to inform the employees information on "what the Hazard Communication Standard is and what it requires, what chemicals in the workplace are hazardous and what those hazards are, how and where to obtain information about hazardous chemicals and how to use this information to ensure personal health and safety, and what the employer is doing to ensure compliance with the Hazard Communication Standard" (Erickson) Insurances Since health and safety problems entails huge costs on the part of the company, an insurance can help hedge the risks. "Insurance provides some protection, though it rarely covers all the costs of accidents or illnesses" (Business Link). As a legal requirement, employer should have employer's liability insurance once it employs staff. Aside from the legal requirements, insurance can also be used against clean-up costs and product liability. With the presence of many insurance premiums, it is needed to be strategic in the choice if one. Business Link offers practical guides in the choosing of insurance premium and insuring the company. The first essential thing to do is to get advice from professionals. After soliciting help from professionals and experienced agents and brokers, the next thing to do is to assess the product options. Aside from liability insurance, some other insurance that might be worthwhile for investments are "insurance of goods in transit and during warehousing" (Business Link). Once the hotel business gets suppliers from other countries or establish branches in foreign countries, marine cargo insurance can also be very helpful. Lastly, it is helpful to review the company's insurance regularly so that it will be updated to the current legislations and to take advantage of the great insurance quotations. "To protect yourself and your business, getting adequate insurance cover is vital. It is worth consulting your insurance broker to find out which types of insurance, and what levels of cover, are appropriate for your business" (Business Link). Although, it is essential to choose the insurance that fits the needs of the company. Customer Care Customer care is a very essential part of the business. It can actually be a very brilliant marketing strategy. Excellence customer care both attracts and retains customers. In the hotel industry, customer care is characterized by clean, orderly and attractive designs, furnitures and fixtures and friendly customer service. One practical guide in retaining customer is keeping track of the customers' travel history and preferences so that excellent service can be provided (International Business Machine). This will necessitate a database and IT system that enables the hotel to collect and store such huge data. IT companies such as the IBM provides such kind of IT service. A huge investment for this purpose can prove to be worthwhile for the company. IT can also be very helpful by serving as an avenue for customer communication. A hotel website that features the amenities of the hotel, the schedule and even the room and rates, the contact numbers and the current promotions is now very popular. If airline industries can use the internet for bookings and reservations, the hotel industry can also do so. The internet provides a way of communication despite busy schedule. It is also a very cheap way of announcing changes in the schedule of hotel services. Customer care can be very cheap yet effective. Small perks such as discounts on shopping and on travel associated with the hotel accommodation can be very attractive. Free lifestyle and fashion magazines can also be given. The hotel world network website gives practical's on achieving proper customer care: 1. It is not the customer's responsibility to be loyal to you; it is your responsibility to earn their loyalty. 2. Never make the customer feel like they are an interruption. 3. Smile with your eyes as well as your mouth. 4. Stay focused on the customer until they leave and invite them to come back. 5. Never make the guest ask for help. 6. Always treat the customers' remarks as concerns, not complaints. 7. Never let the customer leave confused, but exceed their expectations. 8. Don't keep employees who don't care about the customers' experience. 9. Don't train people in the concept of service; train them in the art of demonstrating hospitality. 10. The mission of getting the customer in the door is only half the job; the other half is to bring them back with a smile. Source: (Henning) Avoidance of Discrimination Avoiding discrimination can be very helpful to the company. It improves chances of recruiting the best person as it increases the pool of applicants and promotes diversity in the workplace. It also improves the probability of getting the best performance from the employees. "However, unlawful discrimination discredits you as a business and can be very costly" (Business Link). It is deemed unlawful to discriminate in terms of sex, including pregnancy and maternity, marital status, including civil partnership status, gender reassignment, a person's disability, race, age, sexual orientation, religion/belief, trade union membership or non-membership and status as a fixed-term or part-time worker (Business Link). The greatest concern for employers and for the government is to avoid discrimination against the disabled. The "business may have in place certain practices, policies and procedures which make it impossible or unreasonably difficult for disabled people to access your services. You must, where reasonable,take steps to change any practice, policy or procedure to mitigate this. You must not wait until a disabled person wants to use a service before making any reasonable adjustments" (Business Link). Practical guides on this are: removing the practice, policy or procedure altogether, making exceptions to the practice, policy or procedure to accommodate disabled people and instructing and training all employees so that they are aware of these changes (Business Link). There are laws such as the Employment Equity Act in Canada which aims to improve worker representation of women, aboriginal peoples, visible minorities and people with disability. The hotel company must be aware and must comply with such rules. In the end, avoidance of discrimination will pay off in terms of wider pool of workers and company integrity. Conclusion The hotel business can both be very interesting and challenging. Legal requirements may seem to be burdensome for a starting businessman, but practicality tells us that these legal rules are actually beneficial to the over-all health of the company. They can prevent further damages and losses and maintain good image for the company. The most practical way to business success would be to surpass the level of legal requirements so as to achieve excellence for the company. In the end, ethical practices will pay off. Works Cited Business Link. http://www.businesslink.gov.uk. 24 November 2009 . Equality and Employment Rights Department, TUC. "LGBT Equality in the Workplace." 2006. Erickson, Paul A. Practical guide to occupational health and safety. California: Elsevier Science (USA), 1996. -. "Practical Guide to Occupational Health and Safety ." ScienceDirect (1996): 53-70. Henning, Mike. hotelworld network. 13 October 2009. 24 November 2009 . Infoscotland.com. 24 November 2009 . International Business Machine. 24 November 2009 . National Consumer Agency. http://www.consumerconnect.ie. 24 November 2009 . Nicholas Sharp, Sheena Etches. Knowledge Bank. April 2003. 24 November 2009 . Slavoj Medlik, Hadyn Ingram. The Business of Hotels. MA: Elsevier Butterworth-Heinemann, 2000. Read More