Room division management

Room division management

Executive Summary
From this assignment the modern room division operations management in the hotel can be evaluated. This assignment also discusses the importance of revenue management in the hotel. In addition, the differences in the operations performed and services provided by the four stars and one star of the room division is discussed as well.

Main Body

Task 1

1.1.           

(a) Function, organization and role of room division in a hotel

The room division department in a hotel constitutes five sub-departments and all these sub-department have their identical function, organization and role in delivering services to the guests. First, front office department; this department looks after the rooms for the guests in the hotel like designing of the room, managing services related to inventory like keys, financial statement, etc. Second is the department for reservation; this department looks after the requests and processes related to the reservation. Third, housekeeping department; the staffs of this department are responsible to carry all the housekeeping services like towels, curtains, cleaning rooms, bad sheets, pillow covers, etc. The staffs of this department also update the front office department staff regarding the room status. Forth is the uniform service department. There are various services offered to the guests by the room division department and services like bell attendants, transportation personnel and door and valet parking. Last is the telephone department. This department is responsible for managing and coordinating effective communication, extension of calls to guests, employees and management as per the caller. (Bock, and Uncles, 2002)

(b) Roles and responsibilities of staff of accommodation and reception services

The roles and responsibilities of the staffs of the room division department vary as per the sub department of this department and every staff has clear line of authority. The major responsibilities of the staffs of this department are reservations, engineering and security for guests, employees and hotel resources, laundry services, check ins, check outs, and housekeeping. The staffs are expected to deliver all the services in most effective manner and for this, the staffs are well trained and coordinated with other staff members.

1.2.          Difference between room division of a 4 star hotel and Formula 1

The four star hotels are luxurious hotels and the guests visiting this hotel expect to deliver with the high room services and more space in the rooms. The guest also expects that the room of a four star hotel must be well design and decorative (Beer, and Eisenstat, 2005). For providing the better room services, the number of staffs recruited for providing services in four-star hotel is more. However, the number of staffs in one star hotel is less, as these hotels are non-luxurious. The room maintenance, cleanliness and comfort in one star hotel are significantly less as compared to that of the four star hotel.

1.3.          Legal and statutory requirements of room division operations

There are various legal obligations associated with the room division department of a four star hotel like protection of the customers against losses of their resources, distress and harms. Some legal obligations are also associated with the guests visiting the hotel in favour of the property protection of the hotel. The hotel is socially and legally obliged to provide their guests the promise quality services this will also help the hotel in guest retention. The rooms of the hotel should include the efficient distress management like fire extinguisher, security, first-aid box, etc. The hotel is legally obliged for the protection of the property of the guests (Baker, and Huyton, and Bradley, 2000). The room division department also obliged to look after the safety and comfort of its staff members during their career at hotel.

Task 2

2.1.            Purpose and practical use of following in room division department of a hotel

      a.            Reservation reports

The reservation reports are related with the reservation made by the guests in the hotel for room. There are various sub-reports, which are associated with the reservation reports like arrivals report, occupancy reports and cancellation reports. The arrival reports contains the names of the guests, which had just arrived to the hotel after reservation. Therefore, the guest names listed in arrival lists cannot be part of cancellation report. The occupancy report contains the list of rooms, which are allotted to the arrival guests. By the occupancy report, the staff can determine the number of rooms available (Brotherton, 2003). The cancellation report constitutes the list of all the guests who had first registered the room but then had cancelled their registration for some reasons.

      b.            Forecasting and statistical data

In hotel, the room division department to forecast the number of guests, which can visit the hotel in particular duration and to estimate the number of available rooms in particular duration for the guest visiting the hotel uses the forecasting data. The data like expected room arrivals, cancellation, walk-ins, overstays, stay-over, checkouts and no shows are used as forecasting data in the hotels by the room division department staff (Brown, 2010).
The complete statistics of the guests who had visited and stayed in the hotel rooms are maintained. Other statistical data includes the compile data, registration data, reservation data, etc. The room division department of the hotel maintains various statistical data like guest statistical data, which includes the guest origin, booking source, average expenditure made by guest and average length of stay of customers at hotel rooms (Falconer, 2006).

       c.            Performance indicators

The indicators used by the hotel department for measuring and evaluating the performance of the department and its staffs are called as performance indicators. Generally, the performance of the hotel or of its department is evaluated by comparing its performance with that of the previous year in terms of its yield generated and revenue generated (Fleming, 2004).
Revenue available by per room and can be calculated as,
                        Average room rate multiply by occupancy percentage of room in a particular period
Second,
Gross operating profit per available room and is calculated as,
                        Gross operating profit available for per room in a duration divided by the total rooms available in the hotel
In addition, in the above formula,
 Gross operating profit = Total revenue – Total cost.

2.2.            Use of following reports

      a.            Checked out list

This list contains all the room related details, which need to be crosschecked before the guest checkouts like all the related bills, keys of room, no luggage is left room, etc. The guest can only leave the room after the checkout list is prepared and fully cleared (Gary, and Vallen, 2009).

      b.            Room status list

This room list provides the details about the room status like rooms are vacant, occupied, reserved, etc. This list is generally prepared by the staff of front desk to have a clear estimation about the available rooms for further booking.

       c.            Extra arrivals list

The extra arrivals list contains the names of those guests, which had visited the hotel but due to lack of vacant rooms were requested and suggested to move to nearby hotel of same level as that of this hotel. The details of these guests are taken so that they can be approached for next time (Bock, and Uncles, 2002).

      d.            Guest history record

The list of all the guests that has visited to the hotel is maintained as guest history record so that it is easy to contact them for the next very time. This list also plays a convenient role in collecting the feedback from the visited guests regarding the room services of the hotel. Some of the names of guest history records are also available in the guest blacklist, this list constitutes the details about the guests who have not cleared their dues or who are responsible for some other losses to the hotel (Medis, 2005).

      e.            Arrival list

The arrival list is the details of all the guests who had visited to the hotels. This list also helps in making a crosscheck for the available vacant rooms and occupied rooms. In addition, based on the feedback received the care of the guests are taken when same guest arrived for the next time.

        f.            Departures list

The departure list is prepared when the guest leave the hotel premises so that the required services can be provided to the other guests in more effective manner and all the vacant rooms can also be allotted to other arriving guests (Hamer, 2011).

      g.            In house list

This list includes the details of all the services like the charges or charge less service, which room type will be provided with what all services, etc. This list assists the room service staff in delivering right service at right time to the guests.

      h.            Housekeeper’s report

This report is generated by the housekeeping department and includes the details of all the charges related to the housekeeping services and is provided to the front desk staff so that these charges can be included in the final bill of the guests (Reichers, Wanous, and Austin, 2009).

Task 3

3.1.            Importance of interior design and property in the effective management of a hotel

The interior designing and property of the hotel is very first thing which the guests come across and therefore, this should be very attractive and pleasing. It is the design and property of the interior of the hotel, which may influence the decision making of the guests to stay or not to stay at hotel rooms. For instance, if the hotel premises are not clean then the customers may develop their view towards the hotel as dirty hotel and may expect that the rooms of the hotel may also be dirty. Therefore, it is very important for the hotel management to develop all the hotel interiors from lobby to their bathrooms to be clean, designing and attractive (Sue Baker, 2000). The lobby is the first place where the guests enter and various guests expect that bathroom provides ample counter therefore, must be well designed.

3.2.            Planning, operational, and management issues which affects the accommodation service function

There are various issues, which the hotel department come across. Specifically in the central London it is been observed that the members of the planning management were not flexible initially and therefore were more efficient to meet the requests related to any changes in existing guidelines like amalgamation of the apartments by operators and developers (Hamer, 2011). There are various other issues as well which are associated with the other departments in the hotel like accommodation management, human resources, finance, marketing, sales, and quality issues. However, the above discussed issues resulted due to the other issues of various departments like planning, operational and management issues. Therefore, the planning and operational department must focus on effective performance as it will result in arise of various issues. The quality of the services offered to the customers in a four star hotel plays a significant role. As customers, opting the four-star hotels aim at receiving the quality services and any issue in the operation would result in the improper and ineffective services (Bock, and Uncles, 2002). The issues, which may arise in the operation, are like improper record maintenance, omission of data, etc.

Task 4

4.1.            Yield management

      a.            Meaning

The planning process, which defines the way to get maximum returns in terms of high revenue, is called as yield management. The revenue for the room division department can be improved by improving the usage rate of the occupancy of the hotel rooms within a particular duration up to highest possible level. The most efficient way of increasing the revenue of the hotel is by increasing the occupancy rate of the rooms within a hotel. Increasing occupancy rate within a hotel relates with the maximum utilization of all the available resources and this will reduce the cost involved and would generate high revenues for the hotel. This is called yield management (Hamer, 2011). Therefore, yield management can use the resources available with the hotel at its maximum for generating the hotel revenue.

      b.            Activities that lead in maximising the occupancy and room revenue

From the above discussion of the yield management, it can be evaluated that it is a process, which focuses on increasing the revenue for the hotel. However, there are various activities, which are involved in the yield management. For maximizing the yield the members of the management must identify the most commercial business which would lead to maximization of the profits of the hotel like advanced booking confirmation so that there is no way left for the room vacancy. The guests must be segmented and rooms must be built and offered ranging to different prices so that all or most of the market segments are targeted. The efficient decision must be taken regarding the commission of the account holders, tour operators and travel agents, for advance booking the rates provided can be increased (Bock, and Uncles, 2002). The requirements of the leisure and business guests are different therefore; these guests must be separated based on their reason to visit. The other activity involved is the calculation of the revenues and effective forecasting of the demands.

4.1.            Sales techniques that can promote and maximise revenue

The selling techniques in hotels are used for the effective hotel promotion and for the maximization of the revenue. There are various sales techniques, which are associated with the maximization of the profits and are discussed here.
Start with rapport, under this technique the guests are make assure that they at right place and this place is the most secured place to stay.
Selling package, under this techniques the guests are make aware of the additional characteristics or values which they are receiving in the hotel as addition to the room and they are like housekeeping services, well furnished interior, city view, air conditioner, etc. Under this technique, the actual aim is to make the customers feel that they are offered with an entire complete in the hotel, which includes room as well.
Transaction pace, under this technique the customers are treated in the manner where there is no option left with the customers to say no to accept their services. For instance, the guests greeted as welcome at their first view. This technique is very effective in gaining more customers (Falconer, 2006).
Opening development and hesitation dealing, this technique is applied on the customers, which hesitates to contact with the front desk staff. So, the front desk staff are trained to make the initiate for talking and to deal with the hesitation of the customers efficiently. This is done by answering to all the queries of the customers and talking him in the manner, which makes him feel comfortable and friendly with the hotel staff (Hamer, 2011).
Emphasize on value for money, the high prices of the rooms are general issue associated with most of the customers. To overcome this issue, this technique can be used. Under this technique, all the services, which the customer would received against the money charged by the hotel are described to the customers. Therefore, this technique is used to feel customer that the money they are charged by the hotel is worthy (Bock, and Uncles, 2002).
Offering the rooms as good news, this technique can effectively be applied during seasons when the sales of the hotel rooms are high like in vacation, festival, and marriage time. Under this technique, the customer is make to feel that he is lucky enough to get the room as  it is the last vacant room of this type (Alexander, 2004).
The other techniques of selling that can be used for sales maximization and for generating high revenues are like price psychology, bottom-up, enquiry, cross selling, conversion of enquiries to sales, etc.

4.2.            Forecasting and statistical data used in the room division of four-star hotel

The past data that are collected, analyzed and used to make the future estimations regarding the visits of the customers, availability of the rooms, etc. are called as the forecasting data. The forecasting data plays a significant role in the future forecasting and based on this forecasting the other forecasting are made like prerequisite of estimated sales, resources, staffs, etc.
The statistics of the guests and occupancy and revenue statistics are the two forms of the statistical data in the hotel management. The guests’ statistic is collected from the visiting guests of the hotel and is helpful in evaluating the average length of guests stay in the hotel, origin of guest, average expenditure by guest and on guest and source of booking (Bock, and Uncles, 2002). The occupancy and revenue statistic is use to measure the performance of the hotel business. The evaluation of the hotel business can be done in various ways like measuring the performance of the hotel with respect to the performance forecasted, performance of the competitors, performance of the hotel in the previous year, etc. (Alexander, 2004) From this statistical data, the occupancy and room statistics and yield percentage are evaluated.

4.3.            Indicators that are used to measure the success of accommodation sales

The occupancy statistics, room statistics and yield percentage are three measurements that are used as the performance indicators of the hotel. The occupancy statistics is measured in the hotel for measuring the performance of the hotel in terms of its occupancy. The occupancy statistics of the hotel is expected to be high as high occupancy statistics of the hotel indicates that the complete employment of all resources is done. The occupancy statistics is generally expressed as percentage of room occupancy, guest or sleeper occupancy and income occupancy (Alexander, 2004). The room statistics is the performance indicator, which measures performance of the hotel in terms of its revenue and includes guest or sleeper occupancy, room occupancy, and revenue and profit per room. The yield percentage also measures the occupancy of the hotel by measuring revenue. The revenue generated by the sale of goods, percentage of maximum possible revenues, etc. are used for measuring the performance (Alexander, 2004).

Conclusion

From the above discussion the importance of rooms’ division department, their functions and other related facts can be understood. In addition, the difference in the one star hotel and four-star hotel indicates that level of service provided is different and expectations of the customers are different as well. The accommodation sector plays an important role in the performance and success of a hotel as 60 per cent of the revenue is generated from this sector (Alexander, 2004) therefore; the quality of the service must be maintained in the four star hotel to meet the expectation level of the customers.

References and Bibliography

  ü   Beer, M. and Eisenstat, R.A. (2005). Developing an organization capable of increasing the sales while generating the profits.
  ü   Bock, T. and Uncles, M.D. (2002). “A taxonomy of differences between consumers for market segmentation”, International Journal of Research in Marketing, 19 (3).
  ü   Baker, S. and Huyton, J. and Bradley. (2000). Principles of Hotel Front Office Operations. 2nd ed. Norfolk.
  ü   Brotherton, B. (2003). The International Hospitality Industry.  Oxford: Butterworth-Heinemann.
  ü   Brown, G. (2010). The Savoy reopens after a £220m refurbishment.
  ü   Falconer, H. (2006). The future of facilities management outsourcing. Facilities Management, Vol. 13(5), pp. 10-13.
  ü   Fleming, D. (2004). Facilities management: a behavioral approach. Facilities, Vol. 22(1), pp. 35-43.
  ü   Gary, K. and Vallen, J. J. (2009). Check- In, Check- Out Managing Hotel Operations. London: Pearson Prentice Hall.
  ü   Hamer, J. (2011). London has the busiest hotel pipeline in Europe London.
  ü   Medis, A. P., (2005). Understanding and Application of Marketing Audit, Dept. Of Marketing Management, Univ. of Kelaniya.
  ü   Reichers, A.E., Wanous, J.P. and Austin, J.T. (2009). Understanding and managing the customers’ services.

  ü   Sue Baker, J. H. (2000). Principles of Hotel Front Office Operations. Norfolk: Pat Bond. 

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