The U.S. hotel industry was worth more than $200 billion in 2017. Two years earlier, the number of hotel rooms available reached the five million mark. Experts estimate that there are over 54,200 accommodation facilities in the United States alone. If you are planning to start a business in this niche, it is important to know a thing or two about the structure of the hotel industry.
Organizational Structure of a Hotel
Approximately 15.2 million people were employed in the hospitality industry in 2015. From general managers and financial directors to department managers and maintenance staff, each employee has a well-defined role in this type of organization. Hotels require a formal organizational structure to carry out their daily activities. This structure influences all processes and operations.
As a hotel owner or manager, it is your responsibility to organize the workforce. An effective hotel organogram can increase work efficiency and productivity. It is important to delegate tasks within and among departments, define the role and functions of each department and be clear about who is doing what.
A hotel organogram is an organizational chart that illustrates the structure of a hotel and the role of each department or unit. Basically, it shows how the hotel is structured and how the available positions relate to each other. What this chart looks like depends on the facility. An international hotel chain, for example, will have a more complex structure compared to a local hotel or a small resort.
Understanding the Hotel Organizational Chart
Most hotels use a hierarchical organizational structure with pre-defined roles and departments. Their employees have clearly-defined responsibilities and everyone knows their roles. Usually, a general manager is at the top of the hierarchy, and this position oversees the various departments within the hotel.
Each specific department is run by medium- and low-level managers. They coordinate employees' activities, assign tasks, supervise work operations and monitor the overall performance of the department they are responsible for. The financial director/manager, for example, supervises the work of the hotel's accountant and the cashier. Logistics managers are in charge of the staff responsible for purchases and maintenance.
No two hotels are the same. The structure of the hospitality industry depends on several factors, including the establishment size, its services and amenities, its budget and its business goals. Most facilities have several key areas in common, though; these usually include the executive management, front desk services, housekeeping staff, kitchen staff, maintainable personnel, accounting and marketing. A small hotel may assign its marketing activities to the front desk department, while a luxury resort may have a separate division in charge of advertising, PR and sales.
Importance of a Hotel Organogram
The purpose of a hotel organogram is to clearly describe the authority, responsibilities and duties of each department and its staff. It illustrates who is in charge of what and who is subordinated to whom and makes it easier to monitor employee performance. It also helps employees understand their daily tasks and relation to other employees.
Each hotel has a different organizational structure depending on the services provided. For example, a luxury mountain resort may have individual departments in charge of entertainment, spa and wellness services, medical services and more. An organizational chart helps streamline these operations and makes planning easier. It also allows for effective resource allocation and smarter hiring decisions.
A hotel organogram may also come in handy if you ever decide to expand your operations. For example, you can use this tool to see how each department performs and identify areas where you could cut costs. Having the right structure in place will help you avoid unnecessary expenses and keep your operations running smoothly while maximizing employee productivity and performance.
- Statista: Revenue of the United States Hotel Industry From 2001 to 2017 (In Billion U.S. Dollars)
- Business Travel News: U.S. Hotel Supply Breaks 5 Million-Room Mark
- American Hotel & Lodging Association: Frequently Asked Questions
- Credit Donkey: Hotel Industry Statistics: 23 Facts and Trends to Know
- Kullabs: Various Departments of a Hotel
- Lucidchart: Hotel Organizational Chart Template
- Study.com: Organizational Structure in the Hotel & Lodging Industry
- Widsom Jobs: Hotel Organization Structures - Hotel Management and Operations
Andra Picincu is a digital marketing consultant with over 10 years of experience. She works closely with small businesses and large organizations alike to help them grow and increase brand awareness. She holds a BA in Marketing and International Business and a BA in Psychology. Over the past decade, she has turned her passion for marketing and writing into a successful business with an international audience. Current and former clients include The HOTH, Bisnode Sverige, Nutracelle, CLICK - The Coffee Lover's Protein Drink, InstaCuppa, Marketgoo, GoHarvey, Internet Brands, and more. In her daily life, Ms. Picincu provides digital marketing consulting and copywriting services. Her goal is to help businesses understand and reach their target audience in new, creative ways.