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Hospitality Operations and Revenue Doc

   

Added on  2020-10-22

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Hospitality Operations and Revenue
Hospitality Operations and Revenue Doc_1

Table of ContentsINTRODUCTION...........................................................................................................................3MAIN CONTENT...........................................................................................................................31) Explain the financial contribution that room’s revenue producing areas make to the businessunit...................................................................................................................................................32) Demonstrate and apply principles of pricing to the room’s product and evaluate thepotential benefits of effective practices to profitability.............................................................53) Evaluate methods used to optimize profitability as applied to a fixed capacity inventory.....64) How hotel sector legislation and best practice directly affect accommodation procedures...75) Identify the expectations of customers from diverse markets and explain how providers ofaccommodation meet their needs................................................................................................8CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................11
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INTRODUCTIONHospitality business is one of the fastest growing sector in every nation, the commonreason behind is the increased tourism or people engagement to visit or see any specific places orlocation (Hanelt and et. al., 2015). Hotel industry is one of the diverse industry with itscontribution on nation economy and generation of employment. Selling rooms or events aremajor revenue of hotel industry, as there is no specific funding by any business entity or supportof governments. On this basis, hotel decides their pricing of the room products and itscomponents. This report will be carry on Cairn groups of hotel which is the leading chain ofpremium hotel in an entire with almost higher customer loyalty and acquisition. This chain ofhotel has approx 34 branches in both domestic and different part of the world. Apart from this, report will cover financial contribution that room revenue's producingarea makes to the business units, principles of pricing to the room's product and its potentialbenefits to effective business practices to profitability. This report will also reveals about thecode of conduct, legislation & best practice such as business sustainability which directly affectsthe accommodation procedures. Lastly, this report will identify an expectation of customer'sfrom diverse market and providers can meet demand of quality management procedures. MAIN CONTENT1) Explain the financial contribution that room’s revenue producing areas make to the businessunitIn the United Kingdom, hotel industry is much enriched, because of increased tourisminto the country as well as rise of people engagement such as business meetings, seminar's,cultural functions etc., are some of an area of revenue generation in the hotel industry (McCannand Barlow, 2015). Cairn Group which is the leading international group of hotel chain withapprox. 34 large hotel in both UK and other part of the world. This hotel chain has beenconsidered as premium hotel groups with almost 50 years of business era. There major successpath is serving customer's beyond their expectation or knowledge. In last stanza, it was discussedthat selling room is the core business function of every hotel and also their revenue generationdepends on that. Apart from this, others are complimentary generation. Revenue is used to become from per room charge basis on every section of the hotel, whether standard, deluxe and
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premium (Li and Stacks, 2015). As, this is a major source of income, Cairn hotel group hastaken collective revenue management system to manage their revenue. They have total of 34large hotels and each of them has 250 rooms. The above given table will be helpful to showrevenue per room and its contribution to financial status of the business. The revenue for theCairn hotel group varies from different countries, as per their currency, economic rates orbusiness estimates. In the given table of revenue per room will be discussed by taking 5 hotelbranches in an entire UK: Cairn hotel branches Revenue per room Contribution to financial positionRoom600 pounds/room for premium400 pounds/room for deluxe250 pounds/room for standardsThis would contributes into profitmaking capacity of the Cairn hoteland its entire contribution will be30 percent of a total revenues. Laundry 75/pounds till 5 pairs85 pounds till 9 pairs 90 pounds till 10 pairsThis contributes to 9 percent of thefinancial capacity of the business.This is considered as extra incomefor the Cairn groups of the hotel.Front house There is no as charge of the frontas this cover under services andcustomer care offered by the hotel,but it helps to creates revenue forbusiness firms. This department contributes about2.1 percent of financial by initialcheck in of the customer till the lastcheck out and bill payment & finalapproval to leave. 2) Demonstrate and apply principles of pricing to the room’s product and evaluate the potentialbenefits of effective practices to profitabilityIn every hotel, manager are focused towards pricing of their room and application ofvarious charges for ascertaining cost per room. While calculating pricing of hotel room, Cairnhotel group used to considers various principles for calculating price of room products(Kasemsap, 2019). During the calculation of the pricing, various components such as surcharge,GST, bills & other expense used to be carried. Various principles such as cost based, customerbased and competitor based pricing has to be considers: The discussion of each and every principles are as follows:
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