Niraj - Rooms Divison Management - Final
Niraj - Rooms Divison Management - Final
Niraj - Rooms Divison Management - Final
Table of Contents
1.1) Discuss accommodation and front office services for different organizations. ......................... 5
Introduction .................................................................................................................................. 5
Accommodation and front office services in hospitals ................................................................... 5
Accommodation and front office services in educational institutions ............................................. 6
Accommodation services in hotels ................................................................................................. 7
Front office services in hotels ........................................................................................................ 7
Conclusion ..................................................................................................................................... 8
1.2) Analyze the roles and responsibilities of a range of accommodation and reception service
staff. ................................................................................................................................................. 9
Introduction .................................................................................................................................. 9
Housekeeper: An operational level position................................................................................... 9
Executive housekeeper: A managerial level position .................................................................... 10
Floor Supervisor: A Supervisory level position .............................................................................. 11
A summary of roles and responsibilities of staffs in the front office department .......................... 11
Table: 1.1..................................................................................................................................... 12
Conclusion ................................................................................................................................... 12
1.3) Discuss legal and statutory requirement that apply to rooms division operations. ................. 14
Introduction ................................................................................................................................ 14
Workplace Safety Act................................................................................................................... 14
Fire Safety Act ............................................................................................................................. 15
Immigration Act and Diplomatic Privileges ................................................................................... 15
Acts against discrimination .......................................................................................................... 16
General Laws ............................................................................................................................... 16
Consumer Law, Data Protection Act and Price Tariff and Display Acts .......................................... 17
Conclusion ................................................................................................................................... 17
1.4) Evaluate services provided by the rooms division in a range of hospitality businesses. .......... 19
Introduction ................................................................................................................................ 19
Services provided by rooms division in large hotels...................................................................... 19
Services provided by rooms division in small hotels ..................................................................... 21
Services provided by rooms division in hospitals .......................................................................... 22
Services provided by rooms division in colleges ........................................................................... 22
Conclusion ................................................................................................................................... 23
1.1) Discuss accommodation and front office services for different organizations.
Introduction
People travel from one place to another for various reasons such as education, work,
business, health services, adventure and religious activities or simply for leisure. When a
person travels to a place away from his home, he requires accommodation. There are various
organizations that provide accommodation but they differ in operations and the range of
services rendered because the goal of the organization and eventually the customers they
cater to vary. For instance, a hospital caters to the sick people and their services are centred
on providing health care facilities of the highest quality. Similarly, accommodation facilities
in educational institution is provided for students who are looking for affordable places to
stay and the services rendered is usually limited. Whereas a hotel is built for luxury and the
accommodation facilities expected by the visitors is of the highest quality containing all the
facilities. For any organization, front office is the nerve centre and as the accommodation
services vary so does the front office services provided as well. The basic features of a front
office such as location, accessibility and front office as an information hub centre remains the
same but the range of services rendered and operations carried out might vary according to
the type and the aim of an organization.
Conclusion
In conclusion, there are various organizations that provide accommodation services such as
hospitals, colleges and hotels. Hospitals cater to the accommodation needs of the patient
whereas colleges cater to the needs of the students. Their primary goal is to provide health
care services and education respectively and providing accommodation is their secondary
objective. Whereas hotels primarily focuses on luxury and comfort of the guest by providing
a suitable place of stay equipped with modern facilities. Hence, there is vast difference in the
quality of service and operations carried out within these organizations. Accommodation
services in hospital should be clean but at the same time is cheaper and the patients are
usually placed in different beds within a single room. Colleges on the other hand, provide
cheap accommodations but do include additional services required for a student such as
internet and meal services. Housekeeping and laundry is very limited if available and mostly
the student themselves are responsible for them. Rooms in a good hotel is properly equipped
and well maintained with major focus given on the comfort of the guest via quality of service
and proper products and variety of foods. Similarly, front office services provided for these
organizations, differ in size, structure as well as the roles they carry out. Front office services
for hospitals and colleges are limited to greeting, guest handling and information supply and
handling of complaints whereas in a hotel, a front office desk is responsible for providing
additional services of reservation of guests, registration, account maintenance and carrying
out cash transactions as well.
1.2) Analyze the roles and responsibilities of a range of accommodation and reception
service staff.
Introduction
Like any other organization in various sectors, an organization in hospitality industry is
divided into different departments, each with its own function in order to carry out the
operations efficiently and in a timely manner. The department employs number of staffs all
with distinct roles and responsibilities who are equally important and are required to work in
tandem to achieve the goal set by the organization. The staffs can be generally classified
according to their designation as managerial level staff, supervisory level staff and
operational level staff. In different department, the responsibility of a managerial level staff,
in general, is to manage and plan, supervisory level staff is to supervise and provide guidance
and that of the operational level staff is to carry out daily operations. However, in every
organization, the responsibility the staffs carry and the method they undertake to fulfil their
responsibilities vary from department to department. It should be stressed that the employees
carry the image of an organization in their shoulders and the responsibility of an operational
level staff is equally important to that of the managerial level staff or supervisory level staff,
which is more relevant especially in hospitality industry, where there is a constant need to
directly interact with the customers while carrying out operations. For instance, in a hotel, the
housekeeping department is primarily responsible for the upkeep and the presentation of the
rooms, such operations carried out by the housekeepers, and yet it has to have a manager, a
supervisor and number of other staffs to ensure the proper functionality of the department as
a whole.
The general roles and responsibilities of different staffs in a front office can be briefly
tabulated as follows:
Concierge Assist the Guest Make dining and other reservations for guests,
provide local information and make travel
arrangements and run errands.
Bell Boy Baggage Handling Load and unload baggage and register them,
respond to bell calls and escort guests during check
ins and checkouts.
Receptionist Guest Handling, Phone Reserve and register guests, greet the guests, reply
Handling, Accounting to queries and provide information, handle
etc. telephone, relay information to all other
departments, handle cash transaction, maintain
accounts etc.
Night Auditor Auditing the Accounts. Verify and check the accounts for error and
malpractice, prepare revenue reports, track
occupancy percentage and related statistics.
Lobby Manage the lobby. Greet VIPS, Establish Control, Develop SOP,
Manager Develop training program, Formulate strategies,
Manage resources in Front Office.
Front Office Supervise the front Assist employees, Implement Control and SOP,
Supervisor office. monitor and measure job performance, prepare
report for management, track inventory and
transactions, make recommendations.
Table: 1.1
Conclusion
In conclusion, there are different departments in an organization in a hospitality industry, and
each department has number of staffs working under different designations. The roles and
responsibilities of the staffs vary according to the department as well as their position. In a
hotel, the function of a housekeeping department as a whole is maintenance and upkeep of a
room, however, the roles and responsibilities of the staffs within the housekeeping
department is different for different staffs under various designations. A housekeeper is an
operational level position responsible for cleaning the room and stocking the supplies with
some other additional functions. An executive housekeeper is basically responsible for
Introduction
The scope of the law is broad and there are various acts and statutes placed by the
constitution for various sections of the society. A law might be in place for a person, a
corporation or a business and the constitution itself is responsible for its implementation.
There are various acts that are in place for an organization or an industry and it becomes the
responsibility of the management and the staffs to guarantee its compliance. Legal guidelines
are in place from an organization‟s inception and it should be properly followed during its
operations as well as management process. The repercussions for its disobedience can be
lethal at times. It is a fact that every business is run for profit and various sectors in
hospitality industry is not an exception. However, it is important that an organization binds
itself to the existing social and corporate laws and bases its operations within the legal
parameters while striving to achieve its goal. The normal operations of the rooms division in
various organizations within hospitality industry should comply with existing laws and might
be applicable in its various operation procedures, work place environment or circumstances
occurring due to the specific needs of the guest.
General Laws
Moreover, organizations in service industry are bound by general laws that are equally
applicable to other organizations in various sectors. Law against hiring minors or providing
rooms to them without a guardian‟s consent, law to meet the minimum wage requirement
while remunerating the employees, law against providing alcohol to the minors, law barring
admission of a prostitute into the premises are some of the laws that should be adhered to
while carrying out daily operations. Legal age to enter a contract as well as to buy alcoholic
beverages in the United Kingdom is 18. This prohibits them from buying alcoholic beverages
as well as from entering into financial agreement. Thus, an employee and the employer
Consumer Law, Data Protection Act and Price Tariff and Display Acts
In addition to above laws, an organization can be bound by number of other laws during in its
operations such as consumer law, data protection act and price tariff and display acts.
Consumer Law gives protection to the customer when they buy products or use services
against issues such as frauds and miss-selling and is managed by the Office of Fair Trading in
the UK. It ensures the quality of a product is as promoted and gives rights to consumers
regarding the product or a service. In context of services industry, consumer law ensures that
the consumers are not exceptionally overcharged and gives them the right to cancel payments
if the product and the services are not as mentioned. The Data Protection Act of 1998
controls the use of personal information of the consumers by organizations or businesses and
is applicable in services industry with equal importance. An organization in services industry
is bound to have access to personal information of the guests and this act gives privacy as
well as saves the guests from fraudulent activities. Under [The Data Protection Act of 1998],
„an organization is required to use the data, fairly and lawfully for limited and specified
purposes in a way that is adequate, relevant and not excessive. Additionally, they are required
to use it accurately and should keep it for no longer than absolutely necessary all the while
guaranteeing its safety. The legal protection is stronger for more sensitive information such as
ethnic backgrounds, health, criminal records, political opinions and religious beliefs.‟ Hotels,
Restaurants and Cafes are additionally required by the Retail Prices (Food in Catering
Establishments) Display Order, 1984 to display comprehensive price list of their food items.
The notice should be visible immediately outside or inside the area where the food is being
served and the legislation ensures that the consumers have enough information to make price
comparisons between different products and services.
Conclusion
In conclusion, there are various acts and statutes in place that are required to be complied
with in rooms division operations. The scope and the related field where the law is applied to
is broad and an organization is required to comply with it from its inception, to its
Introduction
In hospitality industry, the rooms division is in charge of providing all the services related to
accommodation and front office. The basic function of the rooms division in every business
is the same in that they exist for providing accommodation and front office services for the
guest. However, they might differ in structure and scale according to the nature and the
objective of the business and therefore due to the variance of the clients. Hotels operate for
providing luxurious accommodation and quality service which demands for rooms division to
be diverse and well structured with number of staffs under different departments. It also
becomes necessary for the rooms division in a hotel to emphasize on the décor and the
ambience of the surrounding in order to impress the clients. The case is not the same for
hospitals, the primary objective of which is to provide healthcare services for the patients.
The rooms division in a hospital is comparatively smaller but is important nevertheless.
Although the services provided by rooms division do not need to consider the décor or the
ambience of the surrounding, it is essential for the front office in the hospital to be
informative and accommodation services needs to be clean and healthy. Likewise, the
services provided by the rooms division in a college is different compared to a hotel or a
hospital as it is concentrated on fulfilling the needs of the students and therefore has different
objective and consequently has different structure.
Rooms Division
Manager
Security/Loss
Front Office Prevention Executive
Manager Housekeeper
Fig 1.1: Rooms Division Organizational Chart for a Hotel [Walker and Walker, 2012]
As is apparent from the above chart, the rooms division in a hotel is well structured and
divided into different departments, each with their individual distinct functions. Customers
that go to a hotel have higher paying capacity and consequently have high expectations for
accommodation and services and therefore, a hotel employs number of staffs across various
departments to meet the expectations of the customers. The housekeeping department in a
hotel employs number of staffs who are collectively responsible for the cleaning and the
maintenance of the rooms. Decorating the rooms and stocking the required supplies are some
other important services performed by the housekeeping department in a hotel. Additionally,
a housekeeping department in a hotel generally has a laundry section the function of which is
to provide laundry services to the clients. The rooms division in a hotel has a different section
assigned for providing guest protection and loss prevention. As mentioned by [Walker and
Walker, 2012], “the security/loss division is responsible for maintaining security alarm
Conclusion
In conclusion, rooms division in different businesses within hospitality industry provides
services related to accommodation and front office. Even though the service provided is
fundamentally similar in all businesses, the room division itself can be different in structure
and scale due to the nature and objective of the business. The rooms division in a particular
business might perform some additional services depending on the nature and financial
ability of the guests. In a hotel the services provided by the rooms division is diverse and
careful consideration is given to meet the requirement of the visitors. A hotel is well equipped
to carry out services of greeting, baggage handling, escorting, security, reservation, room
service, concierge and providing relevant information whenever required. Moreover, the
rooms division is responsible for providing services related to proper decoration and
maintenance of the room and laundry. There might be some other additional services
rendered by the rooms division which might be unique to the business depending on its
operational way and nature. However, the services provided by the rooms division in general
hospitals and colleges is limited in scale and scope in comparison to a hotel but there are
some unique functions that needs to be carried out to cater to the needs of the respective
clients. The rooms division in a college though limited also needs to provide the services of
oversight and needs to maintain a good environment for study by providing required study
materials. In general hospitals, the front office needs to assist the visitors and the patients by
directing and guiding them and providing them information and equipments useful for good
recovery.
Introduction
In order to assess the importance of the front of the house area to effective management, we
have to first, determine the resources and tools that are needed by the management to conduct
effectively in hospitality businesses. The basic functions carried out by the management are
formulating plans and policies, organizing and staffing, providing direction and establishing
control for which they need records, communication channel, performance overview and
suggestions which is provided by the front of the house area. In hospitality industry, any plan
or a policy designed by the management for customers or the business itself needs to be
delivered through the employees, the staffs in front of the house area included, as they are the
ones who first interact with the guests. The front of the house area in hospitality industry
directly or indirectly assist the management in carrying out their functions and achieving their
aims effectively by providing periodic records and reports, helping them organize resources
both human and non-human and communicating information, suggestions, decisions and
discontent to and from the management.
The importance of the front of the house area for effective management is not only limited to
communications and planning, but there are number of other functions that are carried out by
it that directly or indirectly aids in effective management. Maintaining oversight and
subsequently helping the management in establishing control is another important function of
the front of the house area in a business that aids in effective management. As it is situated in
such a key location where majority of interactions and services occurs, it is the responsibility
of the front of the house area to maintain oversight and act as a centre to all operations. In
hospitality industry, the operations of number of other departments such as housekeeping,
concierge, bell service, accounting and auditing at one point or another need to merge with
the operations of the front of the house area. It is the responsibility of the front of the house
area to guide all the employees from different departments, assist them and maintain constant
oversight over them in order to guarantee proper functioning and performance. This also
helps the management in establishing proper control as it regulates the operations and ensures
the fulfilment of performance. Furthermore, the placement of authority of oversight on front
of the house area allows the management in organizing and planning resources as it helps in
determining the requirement of resources in different departments and their performance on
available resources.
2.2) Discuss the key aspects of planning and management of the front of house area for
a given hospitality operation.
Introduction
In a hotel, not only is front of house area a place which establishes initial positive impression
but it also is a central place that carries out number of operations related to communication
and accounting. As stated by [Watt, 2007], „the front office is an important function because
customers deal with front office staff as the centre of the hotel. They provide assistance to
guests, fulfil their needs, and meet their wants.‟ A hotel cannot expect to perform its
operations efficiently in absence of the front of house area. [Hogan, 2006] presented that
„front office staffs are the nerve centre of all hotels, and the front office is essential to keep up
with what is happening at all areas of the hotels.‟ Hence, it becomes necessary to give proper
care to certain key aspects while planning and managing the front of house area in a hotel.
Setting up in a proper location, forming and maintaining a proper environment, assigning the
right employees and allocating them required resources, establishing control mechanisms
along with supervision and appraisals of the staffs to guarantee performance and preparing
job analysis and job description for the employees are some of the key aspects that needs to
be considered while planning and managing the front of the house area.
Selection of location
Planning of the location and the layout of the front of house area is important, particularly
during the inception of a business. Front of the house area in a hotel is the area of first initial
contact with the guests and additionally is the centre of all major operations. So, the location
and the placing of the area should be such that it is easily accessible and readily available. In
order to serve its purpose in the most effective way possible, generally, the ground floor in
the front building among the properties of the hotel should be reserved for the front of house
area. Ease of accessibility saves time of employees as well as the customers and also makes it
easy to provide service faster. Planning the layout of the front office is equally as important
as the selection of its location. As it is the department that interconnects and operates with
number of other departments the layout should be such that it should have easy access from
Resource Management
Allocation and assignment of resources, both human and non-human, is another aspect that
should be taken into consideration while planning and managing for front of house area.
There are certain qualities that need to be possessed by the staffs in the front office
particularly in hospitality industry where they need to constantly interact with the visitors.
Good communication skill and behaviour, patience, tactfulness, decent personality and dress
up sense, computer literacy and basic accounting skills are some of the qualities that the
management need to consider for front office staffs when hiring due to the nature of their job.
Along with hiring staffs of desirable qualities the management must make sure that there is
proper blend of experience among the employee so that they can progressively develop and
learn with experience and guidance. Furthermore, there should be a system of review,
estimation and forecasting so that the resources needed for daily operations is available
whenever required. The front of house area should be properly and regularly supplied with
equipments and stationeries because obstruction in one of its operation is capable of bringing
the operations of the whole institution into a halt.
Conclusion
In conclusion, proper planning and management of front of house area is essential to a
business as it is the centre of all operations and vital area of first and constant interaction.
There are certain key aspects that need to be considered by the management while planning
and managing the front of house area. Selection of accessible location and creation of proper
layout is important aspects to be considered while planning the front of house area during the
inception of the business. Moreover, there are number of measures that need to be taken to
maintain peaceful and friendly environment through décor and interiors that helps in smooth
operations and also leaves positive impression on the customers. Planning and hiring the right
staffs and ensuring availability of required resources is eminent to regulate operations.
Furthermore, the management need to establish control mechanisms, oversight and guidance
system thorough structural designations of employees in order to ensure performance by the
staffs. Performing job analysis, preparing job description and periodic appraisals are some the
ways through which management can ensure regular performance and motivate the staffs.
2.3) Critically discuss the key operational issues affecting the effective management and
business performance of the front office area for a given operation.
Introduction
Majority of operations in a hotel, at one point or another is carried out through the front office
area, therefore, regarded as the nerve centre of the hotel. Reception, bell service, concierge,
mail and information handling and auditing are some of the important operations carried out
in the front of the house area and they can have number of operational issues, which, directly
or indirectly affects the business performance as well as the management process. It becomes
necessary for the management to be able to identify and address the issues in order to ensure
smooth operations which subsequently improves the business performance. For instance,
there can be number of operational issues in the reception area that impedes its performance
and it is the responsibility of the management to identify them and prevent it whenever
possible. Though the issues can be huge in number and changing over time, the management
can categorize the issues under different aspects depending on its nature and its impact.
Almost all the operational issues in the reception area in the front office that impedes its
performance can be attributed to lack of resources, miscommunication, discontent from
employees and customers or ineffective performance due to various factors.
Miscommunication
Operational issues can also be created due to improper or total lack of communication. In
hospitality industry, frequent communication is necessary between both the employees as
well as the customers as majority of operation is based on frequent interactions. When a
customer makes a request to a receptionist then, further communication to the respective
department is imperative in order to fulfil the request. Moreover, the directive from the
management regarding the services and the way they are provided should be complied with
while carrying out operations which require frequent flow of information. Requests can also
be made through some other employees in the organization and it becomes essential to relay
the information to the receptionist so that action can be taken to instruct particular staff to
accomplish it. In hospitality industry, improvements on the quality of service can be made
effectively only when customer suggestions and feedbacks are taken into consideration.
Reception being the focal point of the operations should constantly relay these suggestions to
the management for improvements and additionally should guide other staffs to carry out
their operations efficiently. The information coming in and going out from the reception area
should be clear and continuous so that operations can be carried out in a timely and
uninterrupted manner. Breakage of communication process from a single employee can have
significant impact on the operations of the reception area which eventually results in
discontent and dissatisfied guests consequently affecting the business performance
negatively.
Discontent Customers
Discontent customers not only create hassle and hinder the operations but also dissuade other
guests in the premises. Dealing with a discontent customer is not only time consuming but
also might be costly and can immensely impact the usual operations of a receptionist. The
best solution to the problem is avoidance which can be achieved through uniformity and
quality of service. Additionally the receptionist needs to be tactful, quick and decisive while
dealing with the customers.
Conclusion
In conclusion, there can be number of operational issues that affect business performance and
effective management of the reception in front office area. The operational issues might arise
due to number of factors and can change over time. It may arise due to lack of resources, both
human and non-human or simply due to ineffective communication. Similarly a discontent
customer might impede the normal operations of a receptionist. Moreover, a discontent
employee who is not properly motivated or is tired or lazy or simply inexperienced results in
inefficiency in performance that subsequently impedes the operations of the reception. It is
the responsibility of the management to identify and address the issues and avoid it whenever
possible. Management can be effective and business performance can be enhanced only when
the issues are identified and addressed properly which facilitates efficient and regular
operations in the reception area.
Introduction
The current trend towards luxury hotels and high end restaurants is growing in hospitality
industry and investors today do not shy away in investing lavishly for the interiors and design
of the premises. Not only does interiors and design presents attractiveness and provides
structural integrity but it also fulfils number of other functions that aids in effective
management. In today‟s market, it is the need of the customers as well as the employees for
proper interiors and design in order to carry out their services and increase efficiency. A well
thought out layout and attractive design and surrounding is a requirement in the rooms, lobby
as well as other premises within the institution. „The hotel lobby is the first impression and
message a guest receives from the hotel and needs therefore, a clear and expressive
communication in design‟ [Berens C., 1997]. A well presented lobby in a hotel instantly
attracts the guests and instils positive impression in their perception. Furthermore, it
motivates the employees and increases their efficiency which eventually enhances business
performance. It also is helpful in providing directional assistance which saves the time of the
employees and also encourages the guests to participate in different activities. The value of
the rooms and the services can be drastically increased when the premise is appealing which
subsequently results in the willingness to pay higher amounts by the customers. The inner
workings and layouts are also helpful in facilitating instant movements and reducing and
controlling crowds thus ensuring uninterrupted operations.
Directional Assistance
A good sign that is properly placed with directional advisory can be helpful in reducing the
time of the employees and also encourages the guests in participating in number of activities.
Interiors and design within the building should include proper signs for directional assistance
as the size of the hotel can be massive and a guest might be oblivious to the surrounding. It
might not always be possible to escort the guests to individual places and a well placed signs
within the building reduces the time of the employees and also minimizes cost. It also is
beneficial as it eliminates awkwardness of the guests and gives knowledge of location of
individual outlets and events which might otherwise be unfamiliar to them. Furthermore, the
importance of signs and directions is immensely significant during the times of crisis as it
provides assistance during confusion and helps in proper management.
Conclusion
In conclusion, the role of interiors and design on effective management is immense as a result
of which prospective investors today are actively investing huge amounts on it. A well
selected colour along with ambience, temperature, light and scent impacts the mood of the
employees and motivates them to increase their efficiency which has positive impact on the
business performance. It also is helpful in providing directional assistance to employees and
customers alike, thus, saving time and reducing costs. Customers are more likely to engage in
activities through freewill when signs are adequately and properly placed which gives them
the knowledge of individual outlets as well as events within the organization. A well planned
layout facilitates crowd control and allows easy movements of the employees which are
essential for uninterrupted operations. Moreover, it increases the value of the organization
and its services and increases the willingness to pay higher amounts by the guests and at the
same time reduces the instances of hassles and the risk of non-payment.
Introduction
A single organization, may it be a hotel, a motel, a resort or an inn can have number of
accommodation service functions and planning and managing each one of them is crucial for
ensuring efficient operations of all the departments within the organization. Accommodation
service functions is crucial for an institution as its absence or lack of performance can
significantly impact the operations of all other departments and can even bring the overall
business performance of the organization to a complete halt. Housekeeping, maintenance,
security, laundry and engineering are some of the important accommodation service function
in a hotel and each one of them carry out their own unique operations that fulfils particular
task relating to the accommodation need of a client. Cleanliness of rooms and surrounding,
stocking supplies and maintaining decor are some important functions carried out by the
housekeeping department that is crucial for pleasant guest experience and eventually for
enhanced business performance, thus, the management need to properly plan and manage the
housekeeping department. ‘Housekeeping operations is no longer the exclusive territory of
women, nor is it considered menial or less important than any other function in the hospitality
organization. Anyone who thinks otherwise should try to imagine hotel operations without
housekeeping; the picture might have general managers and presidents cleaning rooms‟
[O‟Fallon and Rutherford, 2007]. As we have established the importance of the housekeeping
department, its proper planning and management becomes imminent and there are number of
aspects that need to be considered while planning and managing the department.
Management of resources to ensure its availability, proper scheduling and designations,
creating and implementing standard of procedures, establishing control mechanism and
maintaining oversight with proper guidance are some critical aspects to be considered while
planning and managing the housekeeping department in the organization.
Introduction
A hotel or any other organization in hospitality industry can have number of accommodation
service function each tasked with unique responsibilities to fulfil the accommodation need of
the customers. However, housekeeping is a major accommodation service function in an
organization as it is one of the largest departments in the hotel and employs number of staffs.
The importance of housekeeping function is immense as already mentioned previously and
due to its sheer size it can have number of issues that impedes the normal operations of the
department. The issues can be either internal or external since it can either be under the
control of the management or out of their control. It is however, immensely important for the
management to identify and address these issues in order to regulate normal operations and
enhance business performance. Addressing, solving and avoiding the issues additionally
allow management for effective control and governance. The operational issues that impede
its functioning can arise from number of factors and it is important for management to assess
every possible factor and avoid it whenever possible. Operational issues during normal
course of functioning may arise from unavailability of resources or due to improper
workplace environment. It may also simply arise due to unforeseen circumstances such as
natural disasters and injuries and maybe beyond the control of the organization. Additionally,
inefficiency in performance can result due to number of underlying factors such as tiredness,
lack of motivation and incentives or malcontent.
Natural Calamities
As per my personal experience during the recent earthquake of Nepal, natural calamities can
also be an operational issue that hinders the normal functioning of the housekeeping
department and is beyond the control of the organization. Although the structure in luxury
hotels around the valley were strongly built, people refused to go to work due to fear and
confusion or simply due to personal loss which brings the functioning of the department to a
halt. Moreover, it thwarts the flow of tourists into the country which abruptly stops the
business performance and brings the normal operations of the housekeeping department to a
stop.
Introduction:
In hotel industry, yield management is defined as „an integrated continuous and systematic
approach used to maximize room revenue through the manipulation of room rate in response
to forecasted patterns of demand‟ [Jauncey, Michel and Slamet, 1995]. Revenue management
and yield management involves predicting customer behaviour through market segmentation,
forecasting demand and optimising prices for several different types of products. [Nagle and
Holden, 1995] clarify the purpose of yield and revenue management by defining it as „a
discriminatory pricing procedure which involves setting different prices for different
segments of the market so as to maximize revenue gained.‟ Society consists of people of
different classes with different spending power and the purpose of revenue management is to
maximise revenue by targeting all the sections of the society differently. This involves
development of discrimination in pricing based on purchasing power of the clients and may
also create fluctuations in pricing dependent on timing, place as well as individual need.
Performance of revenue and yield management to maximize occupancy and rooms revenue
requires forecasting of demand pattern and market segmentation based on purchasing power
of the customers so as to ensure success through maximum collection of revenue. For
instance, the seat in the airplanes is similar and yet the price is segregated based on the types
of clients along with provision for extra services which is helpful in gaining maximum
revenue and occupancy in a single operation. Seats in cinemas are another example of
revenue and yield management as it creates discriminatory pricing based on the location of
the seats. Similar is the case for the rooms in a hotel, which is perishable and structurally
identical apart for some added benefits which are engineered through revenue and yield
management for increased room revenue. Some of the activities that can be implemented for
revenue and yield management in order to maximize occupancy and rooms revenue in hotel
are customer segmentation, situational pricing and allocation, customer prioritization and
increased price for foreigners.
Customer Segmentation
„Traditionally, hotels segment their guests based on the purpose of the stay. Segmentation
involves subdividing markets, channels or customers into groups with different needs. It is
then possible to deliver a tailored proposition which meet these needs as closely as possible‟
[Hospitality Professional Association, 2013]. Customers may be segregated as per their
Situational/Conditional Pricing
Situational or conditional pricing and allocation is another activity that when followed can
ensure revenue and yield maximization. A customer that requires three rooms is more
profitable than the customer with the need of a single room. Similarly, the price of a hotel
during off-season is more likely to be cheaper than its price during on-season, thus, creating
price discrimination based on the timing of the year. Moreover, pricing based on geography is
applicable in restaurants and relevant service industries as the price for hot beverages is more
likely to be expensive in colder areas. When a hotel or any other organization in services
industry bases its price and room availability on situational circumstances it can create
demand and significantly increase the price and occupancy of the rooms thus, eventually
ensuring revenue maximization for the given situation.
Customer Prioritization
Prioritizing on particular customers and focusing ones services and availability on them is
another aspect of revenue and yield management for maximization of profit and occupancy.
Regular customers with good history should get more priority than occasional visitors as it
ensures long term business in the organization. Similarly, customers that arrive in groups
should get priority over the ones that are single as group customers require more rooms and
guarantee maximum utilization of available services. Moreover, VIPs, celebrities and society
idols get priority in any organization as they are helpful in enhancing the image of the
organization as well as attracting more clients.
Conclusion
In conclusion, there are various activities of revenue and yield management that is helpful in
maximizing the occupancy level and rooms revenue. Revenue and yield management requires
forecasting of demand, market segmentation and optimization of prices based on different
conditions. It is necessary to develop and implement discriminatory prices based on situations
and demand in order to perform activities of revenue and yield management for maximum
realization of revenue and occupancy levels. Segmenting customers based on their purpose of
stay helps assess their revenue realization potential and assures prioritization for
maximization of profits. Situational pricing and allocation is necessary to ensure maximum
revenue during situational constraints. Furthermore, placing priority over potential realization
of profits and increased pricing for foreigners in return for added benefits and hospitality are
some additional activities that can be performed for maximization of revenue and occupancy
levels.
Introduction
Organizations in services industry operate for profit and it is the aim of the management to
constantly maximize the available profit through increased sales and occupancies. The staffs
in the rooms division are the ones who are responsible for selling and allocating the rooms
and the management in today‟s market take necessary steps to educate their staffs about
different sales techniques and even prioritize over the ones with intrinsic marketing abilities
while hiring. There are number of techniques that can be applied during normal course of
operations to promote and maximise revenue of an organization. The technique used may be
something innovative and new or it might be something already in place that always results in
increase of revenue and its implementation is dependent on situations, timing or the nature of
the clients. Upselling and overbooking are some of the basic techniques applied by the staffs
in the rooms division to ensure promotion and maximization of revenue. Offering
complimentary items and using social media outlets and viral marketing for promotional
activities, are some examples of various other sales techniques that can be used by the rooms
division staff for sales promotion. Furthermore, placing priority on repeat customers and
providing off-season specials have significant impact on the buying decision of the customers
and can eventually promote and maximise revenue in an organization.
Upselling
„Upselling entails offering your hotel and resort guests additional services and amenities for
an additional, often nominal, charge either immediately post-booking (often during the
confirmation process), via email prior to arrival, upon check-in, or during their stay‟ [Peter
T., 2013]. It helps in increasing the value of the primarily offered product by addition of other
products and services and also enhances the experience, therefore, inspiring re-use.
Nevertheless, the role of upselling in maximizations of revenue, through increase in number
of sales is immense and thus it can be an effective technique in the rooms division for the
staffs to promote sales. Electronic retailers offering home delivery and extended warranties,
airlines charging more for exit row sit or comfortable chairs and fast food restaurants offering
extra size meal or persuading for additional foods and beverages are some good examples of
upselling prevalent on the present day market. As per this technique, the customers have
incentives to buy more in order to gain maximum money‟s worth and an organization can
push its sales and can benefit through additional sales. In the context of hotels, upselling can
Overbooking
Overbooking involves booking more rooms than the available capacity of the hotel so as to
account for no-shows and cancellations during the course of business. The rooms in a hotel
are perishable and the revenue once lost for the day cannot be realized again. No-shows and
cancellations is a major loss for the hotel as the room that is already assigned to someone can
be hard or impossible to be transferred to someone else under time constraints. Thus, the
employees have the tendency to overbook the rooms so as to account for no-shows and
cancellations and it is a helpful technique to guarantee maximum revenue generation. „The
challenging issues in using overbooking are determining the appropriate number of excess
reservations, minimizing total compensation cost, addressing legal and regulatory issues, and
dealing with market acceptance, especially the ill-will or negative effects from users who
have been denied access‟ [Talluri and Ryzin, 2004]. Although overbooking can be
significantly useful in guarantying optimum revenue, it poses risk of loss as well as legal
repercussions in cases of inability to fulfil one‟s promise of room allocation for the guest.
Therefore, proper limits should be placed on its practice and careful calculations should be
done based on past records of no shows, cancellations and occupancy levels.
Off-season Specials
The sales of the rooms and the products is bound to suffer during off-seasons due to decrease
in number of visitors However, the staffs in rooms division can create off-season specials and
packaged deals to ensure maximum collection of revenue even during dire times. Even
though the number of customers is less, the special deals on additional services and items is
bound to attract them and this allows mass transactions within limited number of clients.
Although the profit generated is less, it allows continued normal operations of the
departments and provides an organization with sustainability. Similarly, priority for regular
customers is another useful technique that allows continual revenue generation in the future
and is of immense benefit to an organization.
Conclusion
In conclusion, rooms division staffs in hospitality industry in today‟s market need to have
proper knowledge and understanding of various sales techniques in order to promote sales
and maximize revenue. It also is the responsibility of the management to educate its staffs
about the techniques available so that success of business performance can be ensured. The
sales techniques that can be applied for promotion of sales and maximisation of revenue may
be new and innovative or it may be old. However, it is dependent on different situations, time
and clients and varies accordingly. Upselling is a technique that promotes additional products
or services in nominal price and is helpful in increase of sales as well as maximum revenue
realization in a single instance. Overbooking is another technique that requires careful
Introduction
„Forecasts are a basic input in the decision processes of operations management because they
provide information on future demand. The importance of forecasting to operations
management cannot be overstated. The primary goal of operations management is to match
supply to demand‟ [Stevenson W.J., 2012]. Predicting demands for the future requires
statistical data from present and the past based on which patterns are studied and its future
implications can be calculated. Proper forecasting that predicts future demands and pattern
can be utilized for number of purposes and it allows the management to adapt and plan for
the future. Thus, forecasting performed through statistical data is a useful tool to anticipate
the future and plan accordingly. Planning is done for the future with set objectives and
anticipation of certain rewards. Forecasting and statistical data is a key element for future
planning and anticipation. In addition, to its use in planning, forecasting and statistical data
can be used for estimation, availability and allocation of resources, measuring performance
and increasing efficiency. Preparations for anticipated circumstances in the future, proper
price setting and its utilization in budgeting are some other useful applications of forecasting
in the services industry. Furthermore, future planning includes number of different useful
aspects like staffing requirement, determination of size of operations and suitable price
setting which can be achieved through regular collection of statistical data and relevant
calculations to produce useful forecasting.
Conclusion
In conclusion, forecasting through collection of statistical data is applicable in hospitality
industry for number of purposes and can be immensely beneficial for an organization. Future
planning and decision making is an important application of forecasting that aids in
management process. Determination of the required amount of resources and its allocation
along with determination of the size of the staffs for the future can be achieved through
calculation of past records and performance and relevant forecasting calculations. Forecasting
also is helpful in developing pricing model that eventually guarantees profit and assures
regular future sales. Furthermore, it is an important tool for budgeting and preparations for
future anticipations and thus, secures success of business operations.
Introduction
There are number of rooms division performance indicators that can be used to measure the
success of accommodation sales in a hotel. Calculation of occupancy percentage, RevPAR,
RevPAG, Average Daily Rate/Average Room Rate and Yield are some of the performance
indicators that in one way or another helps in measuring the success of accommodation sales
in a hotel.
„ADR = Total Revenue from Room Sales / Total number of rooms sold
Occupancy Rate = Total rooms sold / Total rooms available for sale
„Room yield is the ratio, given as a percentage, between the actual rooms sales revenues and
the total potential room sales revenues during a given period. The formula to calculate yield
is:
In order to apply these indicators and perform relevant calculations lets use a simple problem
given by [Vallen and Vallen, 2013] in their book Check-In Check-Out.
= 600/800
= 0.75
This indicates that 75% of the rooms in the given hotel are occupied out of all the available
rooms for sale. In other words, the hotel is successful in selling 75% of its room but still
needs to sell 25% more in order to gain maximum available revenue.
= 48000/600 = $80.00
RevPAR takes into account all the available rooms for sales hence gives more accurate figure
regarding the overall sales performance. $ 60 indicates that out of all the 800 rooms available for
sale, the hotel in average earned $60 per each room. Its assessment also motivates the organization
to increase the occupancy rate in order to increase the RevPAR and eventually the total revenue
coming into the firm.
$68.57 indicates that in average the total revenue collected from a single guest was $ 68.57. It
motivates the staffs to increase the number of revenue from each guest and also encourages
them to push sales to every one of them individually.
In order to calculate yield, let‟s assume that the normal rate for a single room in the above
hotel is $80 and all the available rooms are single. The realized revenue as given is $48000
whereas the potential can be significantly higher.
= 800 (X) 80
= $64000
Now, yield can be calculated as:
Yield = Revenue Realized / Potential Revenue
= 48000/64000
= 0.75 or 75%
Yield measures the efficiency of sales in the hotel. It computes the revenue realized with its
actual potential and gives the management an insight into efficiency of their performance. In
the above figure, out of 100% total efficiency the hotel was able to realize 75% of the
available revenue hence 75% its efficiency of sales of the rooms. Low yield calculations
mean that the management should enhance its sales performance and thus increase its overall
efficiency so that the organization can gain maximum revenue available at any given time.
Conclusion
In conclusion, there are different rooms division performance indicators that can be used to
measure the success of accommodation sales. Measurement of occupancy level, yield, ADR,
RevPAG and RevPAR are some useful performance indicators that give the management and
the staffs an insight into their performance efficiency relevant to room sales. Occupancy level
measures the amount of sold rooms and consequently provides information on the amount of
rooms that are vacant and available for sale. Yield measures the efficiency of sales
performance and helps in determining the amount of revenue that is not realized. Average
Daily Rate gives information on the average price of a room for any given day whereas
Revenue per Available Guest and Revenue per Available Room gives the total revenue
collected from an individual guest and from a single room respectively. These performance
indictors when used collectively provide valuable information relevant to sales performance
and thus, are helpful in measuring its success.
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