Wk_4_Accommodation_operations

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Feb 2011 1

Week 4: Rooms Division

Operations

Topic Objectives

Understanding the Rooms Division products,team and their roles

Establish the processes of the guest cycle for theoperation

Calculate RevPAR, ADR, ROP and Yield Discuss green challenges and energy

management and how this impact business


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2009 Tourism Earnings

Regional Comparison

USD 203 Billion, 24%

Fiji FJD816.9 million(USD563.7m (0.3%)) (0.9x 10-8)

Feb 2011 2

USD852b Receipts

Source: http://www.statsfiji.gov.fj/Releases/FFF2010.pdf


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Accommodation Revenue for

Fiji in 2009

Feb 2011 3

Source: http://www.statsfiji.gov.fj/Releases/FFF2010.p df

42.2 % = FJ$517.7m RoomRevenue

57.8% lost through non saleof rooms? 517.7/0.422 = 1,226.8

57.8% = FJ$709.1

709.1/302 = FJ$2.3m


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How can Fiji sell more rooms?

1. Market some more? Tourism Fiji and theIndividual properties

2. Access new markets? India, China, Local?3. Retain main markets Australia, NZ

4. Develop partnerships? BFTE?

5. Managing the intangibles & MOTs.Developing consistent quality Training,Development, Networks & Resources.

Feb 2011 4


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Global Room Prices 2009

Feb 2011 5


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Rooms Division

Organisational Chart. (Walker, 2009, p. 127)

RDM

EH

Rooms Public Area Laundry

FOM

Reservations

Cashier

Concierge

Reception

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Rooms Division Roles &

Responsibilities

Role Responsibilities

Manage the Departments,MaintainStandards andControl Finances

Director Rooms Division

Delegate t he management tasks to departmentmanagers Liaise with executive management

Accountable for the overall performance of the dept.Sell and complete roomsreservations. Reservationist

Update room rates and related information Maintain rooms sales information and system

Manage the Front OfficeReception.Front Office Manager

Delegate tasks to front office staff Liaise with shift supervisors to maintain standards Prepare department staff schedule

Greet guests and carry theirluggagePorter

Liaise with reception about guest schedules Record rooms and check in events

Provide personal service andinformation to guestsConcierge

Attend to all guest personal needs Liaise with otherdepartments forguest feedback andneeds

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The Guest Cycle.(Walker, 2009, p. 127)

Reservations Stage How was the guest reservation/

confirmation acquired?

Marketing, Networks,Partnerships, Technology (CRSor GDS)

In-house Stage Team Management

MaintainingStandards Tasks& Procedures

Use of Resources Equipment& Technology

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Issues of Note

Property Management System

Yield management

Loss prevention and safety

Property Management System

Yield management

Loss prevention and safety

Departments and products/services

Departments and products/services

Developing quality productsHow?

Front Office & Housekeepingpp.197 - 205

Developing quality productsHow?

Front Office & Housekeepingpp.197 - 205

Roles of personnel:Skills

Tasks

Responsibilities

Roles of personnel:Skills

Tasks

Responsibilities

Rooms Division

(MOTs)

Rooms Division

(MOTs)

Feb 2011 9


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Hotel Room Types/ Prices

TypeType

SizeSize

SingleSingle

DoubleDouble

SuiteSuite

PenthousePent

house

QualityQualityStandardStandard

PremiumPremium

LocationLocation ViewView

ApartmentApartment BedroomsBedrooms

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Servicing Hotel Rooms

Topic Reading: OShannesy et al, 2001

Manager role Task allocation (PMS)

Operating procedures equipment andresources

Cleaning procedures standards and safety(guest service, room security, worker safety)

Feb 2011 11


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Feb 2011 12

Different Room Rates (p. 131)

Rack rate

Corporate/ Government/ Agent/ discount

Corporate contracted rate Halfday

Group rates

Complimentary rooms

Why do hotels have different rates/ prices foreach room type?


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Feb 2011 13

Property Management

Systems (PMS)

PMS

(roomMaster 2000, Micros Fidelio)

Computer-based applications Reservations management

Rooms management

Guest account management

General management Based on information and reports regarding costs, sales,

guest numbers and products sold


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Feb 2011 14

Reservations - CRS

IHG.com Central System Best Rates

Real time roominventory

Inventory update


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Feb 2011 15

RevPAR

1. How is RevPAR used?

It is a measurement of business

performance (revenue against roomsavailable) per time span

It is the result of business performance: Market Share/ Knowledge

Product Quality

PricingStrategy/ Competition


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Feb 2011 16

RevPAR

RevPAR is affected by:

1. The Room Rate.

The room rate is determined by quality,market share, location & marketing ability

2. The Occupancy Rate.

The occupancy rate is effected by roomrate, demand, competition, economy factors


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Hotel Statistics Occupancy Statistics

Room Occupancy Percentage of(ROP):

Rooms Occupied

Total Rooms Available

Revenue Statistics Average Daily Room Rate (ADR):

Total Rooms RevenueTotal Number of Rooms Sold


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Feb 2011 18

Yield Management

Uses data (past) to forecast demandSets prices to suit demandResets prices to match demandTo stimulate demand when it is low

To maximise revenue whendemand is high

Increasing profitabilityNot simply minimising perishabilitySource: http://www.managingchange.com/dynamic/yieldmgt.htm

Formulae: Possible Revenue/Actual Revenue x 100/1(Walker, 2009, p. 144 for an alternative formulae)


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Feb 2011 19

Global Hotel Performance

Source: http://www.hotelnewsnow.com/media/File/PDFs/monthly_charts/GlobalHotelReview_Me dia_December_2010.pdf


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Feb 2011 20

Rooms Division Challenges

1. Team diversity retention

2. Technology information and processes

3. Worker productivity standards, economics4. Yield management - perishability

5. Green policies/ benchmarks and energy

management6. Property andguest security


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Feb 2011 21

Summary

1. Hotel revenue and housekeeping

2. Team responsibilities for quality andstandards

3. Room types and value addition

5. Maintaining standards cleanliness/ time

6. Guest cycle and rooms reservation

7. Hotel room statistics:ADR, Occupancy Rate and RevPARcalculation

Wk_4_Accommodation_operations

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