Room division management is an aspect of the operation management deals with creation of pleasant environment. The significant role played by the room division is working process of the hotel (Lee 2016). The report is based on accommodation facilities of a hotel industry. Two hotels are selected: Hilton hotel and Etap hotel. Hilton hotel is a luxury accommodation hotel while Etap hotel is a budget hotel.
This particular report analyzes legal and statutory requirements of room’s division operations. It also discusses on the key aspects of planning and management of front house area and hospitality operation. The operational issues are identified, which affect effective management and business performance of the front office area and accommodation service.
1.0 Legal and statutory requirements that apply to room’s division operations
There are various legal and statutory requirements that are analyzed with relevance to room division operations of the hotel industry. The requirements are in respect to health and safety of the guests, rules and regulations of cleanliness and quality standards (Chang and Ma 2015). Therefore, the requirements are as follows:
Health and safety main act, 1974: This law is related to health and safety of the guests, food quality, emergency arrangements, fire extinguishers and other necessary equipments that are maintained properly.
Immigration records: The hotel industries should require maintaining the personal details as well as records of the tourists. They should also require to record information on arrival as well as departure (Kim, Im and Hwang 2015).
Reservation contract: Based on this contract, the hotel is required to follow the Supply of Goods and Services Act, 1982 and Trades Description Act 1968. The hotel should provide their guests with proper accommodation, food, drink and others, which are mentioned under the reservation contract.
Consumer law: Under this law, it is the right of the guests to get all services that are being agreed by the hotels. They can get room arrangements into desirable way as agreed upon by the guests (Riley 2014).
Following are the key aspects of planning and managing of front office area into hotel industry’s operations:
Design: The design of the hotel is a significant aspect for the success of a business. The owner of Hilton hotel invested a lot into designing both exterior and interior parts of the hotel. Hilton’s classical structure is used as basis of their hotel design (Hoque 2013). They renovated their hotel keeping spirit of the past and taking inspiration from the beautiful surroundings.
Point of sales (POS) management system: It is one of key aspect related to POS software that is used to record and process information on sales of both the hotels. The software can also create printing for cheques of the tourists. This software provides assistance at the time of ordering of foods and drinks (De Jorge and Suarez 2014). Advanced and innovative technology is used to manage the front house area at Hilton and Etap hotels.
Destination: The perfect destination is one of the key aspects of the success of any business. Hilton hotel maintains an image of wealth, welcoming atmosphere and therefore it is a perfect destination for everyone. It offers inspired style, connection with the gateway cities and provides leisure destinations to the guests. It also provides luxury services. Etap hotel is a budget hotel that is located at the heart of Belfast city centre near central train station. It offers required comfort with modest costs (Fraj, Matute and Melero 2015). The central location of the hotel is its waterfront, shops and Belfast Cathedral; they all are at walking distance.
The key operational issues in the business performance of front office areas are as follows:
An accommodation services provide cleaning, health, safety, operational, and room services to the guests. The critical aspects of the accommodation services for Hilton and Etap hotels are as follows:
Cleanliness and quality: Being a luxury hotel, the staffs should use of cleaning products into the hotel rooms. The rooms should be chemical free and environmental friendly used to maintain high quality standards to meet with guest’s expectations. On monthly basis, windows as well as carpets are cleaned while the hotel rooms are cleaned on daily basis to meet with quality standards (Robinson et al. 2016). The accommodation manager should maintain standards of quality as well as cleanliness.
Training to the staffs: Staffs are required to train to maintain high quality standards. Strict supervision is also required to plan and manage of accommodation services.
Liaise with other departments: It is a key proportion to plan and manage the accommodation activities. They formulate and supervise the teams of the room attendants. There is also planning of staff rotations (Gannon, Roper and Doherty 2015). The accommodation departments maintain contact with the front office services to coordinate with allocation of the rooms.
The key operational issues in the business performance of the accommodation services are as follows:
4.1 Perform revenue/yield management activities to maximize room occupancy and room revenue
The sales of hotels are managed by adoption of varied tariff plans into the operation. The sales techniques consist of negotiated rate and overbooking are being introduced by the business organization into the hotel industry. Negotiated rate techniques are adopted by the hotel to introduce seasonal packages to guests. Negotiation consists of price, payment for installments for the packages with an increase of profit for the hotel industry. In order to achieve competitive advantage into the industry, discounts on repeat services availed the guests can introduced by hotels. Overbooking is taken by the hotel as the guests are cancelled booking in the future. Overbooking of the rooms provides an increment of sales to the hotels (Gannon, Roper and Doherty 2015). Up selling is also sales technique for the hoteliers where selling more that the client can got when he is used to made reservation. It is required that the employers can upgrade, package and special treats. The client’s database should be kept secured so that it is easier to give special offers, discounts as well as packages. Each of the hotels should retain existing clients as they will spend money each time they come back and better tool for the purpose of advertising. The hotel should implement of marketing strategy to gain new clients (Lee 2016). Use of media as well as internet will help to maximize the client’s database which will generate of more and more revenue.
Forecasting is considered as a technique in order to predict the sales revenue and services by use of effective techniques. Different types of forecasting techniques such as historical room booking model, combined room booking model as well as advanced room booking models are used into the hotel industry (Riley 2014). Estimation of demand as well as hotels sales are increased the volume of sales and estimation of chance of cancellation of reservation. Occupancy rate, room price and customer’s demand are estimated by statistical forecasting technique. Forecasting models are applied of regression analysis to calculate the demand into the market. Seasonal demand of hotel is estimated by management in addition to discounts which are offered to the guests. The result is that higher sales revenues are being achieved by the hotel industry. Most of the organization into the hotel industry is used of forecast in order to determine success as well as failure of the activities from the last year (Walker 2016). Based on the forecasted results, it is essential to take of managerial decisions based on marketing strategies. If the statistical data from the result of last year shows that the used marketing strategies are efficient for the organization, then the organization follows the same. When the results are not same, then the hotel industry requires making changes for maximizing the sales revenue.
|
Room type |
Price room/ night (£) |
No of rooms |
No of rooms occupied/sold |
|
Single |
70 |
10 |
6 |
|
Double |
96 |
15 |
9 |
|
Family (one double bed + one single bed) |
112 |
5 |
3 |
|
Rooms occupancy: number of occupies rooms/number of rooms available for sale. |
18/30*100 |
60% |
|
Double occupancy: number of double rooms occupied/total number of double rooms available for sale. |
9/30*100 |
30 |
|
Sleeper occupancy: no of sleeper/total of bed spaces available |
(6+18+9) 33 (10+30+15) *100= 55*100 |
60 |
|
Average room rate: total room revenue for a period of time/total number of rooms sold. |
(70*6)+(96*9)+(112*3) 420 + 860 + 336 |
1620 |
|
ARR |
1620/18 |
£90 |
|
Gop par: |
£1495/30 |
£49 |
Analysis of the room division is being measured using performance indicators such as average sleeper rates, average room rates as well as sleeper occupancy rates. All this room division performance indicators are used to determine the performance of the room based on total numbers of room’s availability, total rooms as well as sold of beds. The room division indicators are used to determine the performance related to sales revenue (Kim, Im and Hwang 2015). The statistical data are used to determine the success of the accommodation sales includes of percentage of room occupancy in addition to percentage of double occupancy.
Room occupancy percentage is calculated as:
= (Room occupied/Total rooms)* 100
Double occupancy percentage is calculated as:
= (Double rooms occupied/Total double rooms)*100
Conclusion
It is concluded that room division with front office as well as accommodation services forms an important part of the Hilton and Etap hotel. Effective management is required to improve the business performance of the hotels. The industry follows legislative as well as statutory requirements relevant to the division of hotel. Due to various operational issues, the room division departments are affected. The sale of the accommodation is main source of income of the hotel industry and generates high profit margin for business. Etap hotel should require adapting new hospitality trends to compete in the market and maintain quality standards.
References
Chang, H.P. and Ma, C.C., 2015. Managing the service brand value of the hotel industry in an emerging market. International Journal of Hospitality Management, 47, pp.1-13.
De Jorge, J. and Suárez, C., 2014. Productivity, efficiency and its determinant factors in hotels. The Service Industries Journal, 34(4), pp.354-372.
Fraj, E., Matute, J. and Melero, I., 2015. Environmental strategies and organizational competitiveness in the hotel industry: The role of learning and innovation as determinants of environmental success. Tourism Management, 46, pp.30-42.
Gannon, J.M., Roper, A. and Doherty, L., 2015. Strategic human resource management: Insights from the international hotel industry. International Journal of Hospitality Management, 47, pp.65-75.
Hoque, K., 2013. Human resource management in the hotel industry: Strategy, innovation and performance. Routledge.
Kim, S.S., Im, J. and Hwang, J., 2015. The effects of mentoring on role stress, job attitude, and turnover intention in the hotel industry. International Journal of Hospitality Management, 48, pp.68-82.
Lee, S.H., 2016. How hotel managers decide to discount room rates: A conjoint analysis. International Journal of Hospitality Management, 52, pp.68-77.
Molina-Azorín, J.F., Tarí, J.J., Pereira-Moliner, J., López-Gamero, M.D. and Pertusa-Ortega, E.M., 2015. The effects of quality and environmental management on competitive advantage: A mixed methods study in the hotel industry. Tourism Management, 50, pp.41-54.
Riley, M., 2014. Human resource management in the hospitality and tourism industry. Routledge.
Robinson, P., Fallon, P., Cameron, H. and Crotts, J.C. eds., 2016. Operations management in the travel industry. CABI.
Tang, C.M.F., King, B.E. and Kulendran, N., 2015. Estimating future room occupancy fluctuations to optimize hotel revenues. Journal of Travel & Tourism Marketing, 32(7), pp.870-885.
Walker, J.R., 2016. Introduction to hospitality. Pearson Higher Ed.
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