Hilton Hotel Performance Analysis

This assignment requires a thorough analysis of Hilton Hotel's performance, focusing on its adherence to UK government regulations, the effectiveness of its front office and accommodation departments, and the implementation of promotional strategies to increase sales and profit. The report should highlight areas for improvement and suggest actionable steps for enhancing customer experience and achieving business success.

ROOM DIVISION

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK A...........................................................................................................................................1
a){1.3} key aspects of legislation and regulatory requirements relevant to room division
operations ...................................................................................................................................1
b){1.2}Roles and responsibility of accommodation department and reception staff.................2
c){1.1, 1.4} Evaluation of variety of services offered by accommodation department and front
staff..............................................................................................................................................3
Services offered by accommodation department and front staff................................................3
Evaluation Services offered by accommodation department and front staff..............................3
d){2.1, 3.1} Importance of the front office area and the accommodation service to effective
management ...............................................................................................................................4
e){2.3, 3.3}Evaluation of the key aspects of planning and management of the front of house
area and the.................................................................................................................................4
accommodation service..............................................................................................................4
f){2.3, 3.3}evaluation of the main operational issues affecting the effective management and
business.......................................................................................................................................5
performance of the front of house area and the accommodation service...................................5
TASK B...........................................................................................................................................6
a){4.1} Explanation of revenue/yield management....................................................................6
b){4.2} Analysis of sales techniques used to promote and maximize revenue..........................6
c){4.3}Evaluation of the usage of forecasting and statistical data in the room division ...........7
d){4.4} Calculation of performance indicators used to measure the success of.........................8
accommodation sales.................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Room division is a term used by the hospitality industry in order to coordinate the efforts
of the front office and accommodation department (Abbott, 2014). The role of room division
manager is to provide variety of information and services to the customer visiting the hotel. Front
office is the heart of the hotel industry whereas accommodation department is considered just for
the sake of cleaning purpose. In the following report, role and responsibility of Hilton hotels and
Resort have been interpreted. Hilton hotels and resorts is the international chain of hotel industry
headquarters in Tysons Corner, Virginia. This hotel was founded by Conrad Hilton in 1919.
The following is going to depict about the key aspects of legislation and regulatory
requirements that are required to be followed by the hotel industry is discussed. In addition to
this services provided by front office and accommodation department are also mentioned. In the
following report evaluation has been made of the key aspects of planning and management in
respect of front office and accommodation department.
TASK A
a){1.3} key aspects of legislation and regulatory requirements relevant to room division
operations
There are numerous number of legal rules and regulation imposed by the government
which the business organisation need to undertake at the time of there working. Some of the
rules and regulation that are imposed by the government are as follows:-
1. Environmental law: - This law suggest that the hotel industry should protect the
environment by using less stuff substances which in turn can cause the harm to the
environment. This law is mainly imposed by the government in order to protect the
environment from pollution (Ahmed and et.al, 2012). For instance: - accommodation
department should use less amount of detergent at the time of cleaning and the waste
water should be drain at the place where it does not pollute any other substance.
2. Employee rights and protection: - This law was obligatory the government in order to
protect the interest of employees working in Hilton. According to this law minimum
working hours and amount of remuneration should be mentioned in the agreement. In
addition to this all the employees should be treated equally irrespective of their gender,
caste and ethnicity.

3. Food and safety law: - According to this law hospitality industry should provide variety
of food which is healthy and could satisfy the customers. Every hotel industry is required
to follow a set standard of quality in the food and beverages offered by them (Fountain,
Fish and Charters, 2008). The hotel management should monitor the quality of the food
on a continuous basis before serving it to the customers.
4. Price and tariff regulation: - As per this regulation no hotel industry can charge a high
price from the customers. Every hotel; industry is required to follow a set rules imposed
by the government against the defined price of services. No hospitality industry can
charge extra money from the customers if they are not providing any beneficial/extra
services.
b) {1.2} Roles and responsibility of accommodation department and reception staff
Role and responsibility of accommodation department and staff receptionist at Hilton
 Accommodation department of Hilton has the responsibilities to offer its customers neat
and clean working environment. They should see that the rooms are properly clean and
hygiene in condition. In addition to this they should see that the towel, bed sheets,
curtains and many more are properly clean. Besides this accommodation staff department
of Hilton should see that the provision of toilets and other room appliances like
microwave and refrigerator etc should be availed to the customers.
 Responsibilities of staff receptionist is to provide all type of necessary information to
visitors. In addition to this they are mandatory to the resolve all kind of problems of the
customers in an effective and efficient manner.
 In addition to this front staff also keeps a check on the visitor and guest and in lieu of
which able to maintain the complete record for the purpose of security. They should
collect the id proof of each and every visitors coming.
c) {1.1, 1.4} Evaluation of variety of services offered by accommodation department and front
staff
Services offered by accommodation department and front staff
Hilton is a hotel industry which is providing a large number of services to the customers
who come to the hotel for the visit. They take into consideration all the necessary measures
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related to the health and safety of the customers. In addition to this they provide variety of
services to the customers like accommodation department maintain and repair all the
accommodation area or property. Accommodation services include safety and security
provision, housekeeping, laundry and linen, maintenance, interior decoration and so on. For
example suppose a customers visit and they want some addition facilitates for which staff is
required to go outside the premises than in that case it is the duty of staff to make avail the
facility to the customers that are required by them.
Front office department is the expression of all the service providers, visitors and of
customers who come to them in order to collect various information (Djumino, 2003). This
department provides various services to the visitors like making reservation, providing relevant
information, allocation of the rooms and alleviate the billing process. Individual present at the
front office should have the good communication skills, good body language and coordinating
behaviour which in turn makes the customer feels comfortable.
Therefore, it is evaluated that in order to have a better customer satisfaction and proper
functioning of the organisation it is necessary for the both the accommodation department and
front staff to work in an effective and a coordinative manner Hilton is appointing highly trained
and skilled staffs so that they can work in such a way that they satisfy there customers. This in
turn will also help the Hilton to achieve their desire goals and objectives.
Evaluation Services offered by accommodation department and front staff
Evaluation of different services offered by this department play an important role in
hospitality industry. There is variety of services that are been offered by the room division
manager. There one of the main services is to design and evaluate all the operations that take
place within business organisation (Dufton and Larson, 2011). Hospitality industry has diverse
business environment such as hotels and restaurants which provide room services and
educational campuses. Thus, it can be said that room division department is beneficial in the
organisation in order to provide better services to the customers.
The services which are provided by the room division are maintenance of the
accommodation area and allocation of the proper rooms to the customers.
d) {2.1, 3.1} Importance of the front office area and the accommodation service to effective
management
Importance of front of house area to effective management
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The front of the house area of Hilton should be so attractive that it attracts the visitors in
first impression when they enter into the premises. The premises of the Hilton hotel should be
well maintained. The layouts, interior decoration and designs at the entrance should be
fascinating. The entrance/welcome area should be proper decorated with the flowers, light and
colourful pattern on the walls (Durkheim, 2014). This in turn will catch the attention of more
people towards the Hilton. The front office department should be in front of the main entrance so
that visitor can easily communicate throughout their stay in the hotel. Room division
management should maintain the detail record of the guest arrival and departure. Record of all
the transaction in an effective manner will maintain the high level of security. This security will
protect the Hilton from any type of terrorist attract. Besides this people largely prefer to move to
the place where high level of securities are present. Along with this Hilton should inform
about the property management and the charges of extra service avail by the visitors.
Importance of accommodation department to effective management
For an attractive and cordial welcome the interior design of the Hilton should be
attractive. This in turn increases customer satisfaction. Highly satisfied customers will prefer to
visit again and again to the Hilton for their visit. Properly decorated area creates a positive
impact in the mind of the customers whereas if the area is shabby that it can create a negative
impact on customers mind. Hilton should see that the office space should be well lit and
ventilated so that if large number of customers arrive at a time than in that case they may not feel
suffocated (Goldman and Procaccia, 2015). The furnishing and fitting present at the office
should be comfortable. Therefore, it can be said that overall interior decoration at Hilton should
be accent on a healthy working environment. The entrance of the Hilton should be decorated
with the flowers and the room should be designed with the matching fabrics and a sweet odour in
order to make customer feel comfortable who visit the hotel for there stay.
e) {2.3, 3.3} Evaluation of the key aspects of planning and management of the front of house
area and the accommodation service
Planning and management of the front area is very necessary for the functioning of the
hospitality industry. Therefore, in order to attract more and more customers Hilton hotels proper
plan, organize and manage the front area of the hotel.
Key aspects of planning and managing front of house area are as follows:-
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 Departmental planning: - Hilton group has assigned to each department and employees
well-defined roles and responsibility (Goo and Park, 2005). Full time service department
all allotted for catering, marketing, finance, housekeeping and so on in order to satisfy the
customers. Proper allocation of all the activities will help the hotel to maintain the
coordination within the department. A highly coordinated activities will reduce the
expenses of the company. And if proper planning is not done than in that case mismatch
of all the activities will take place. This in turn will increase the expenses. Security measures: - Hilton has undertaken all security measures into consideration at
the front office. They have obstructed a television at different places inside the campus
which constantly capture all the images of the visitors and employees. A high security at
the Hilton will protect the hotel from any type of terrorist attack. People prefer to visit to
that place only where they find high security of there life. But sometimes these security
measures undertaken by the company force the wrong happening to that place. The
camera installed for security purpose can be used for some illegal practices.
Key aspects of planning and management of accommodation services is as follows:-
Strategic change at the Hilton group has taken place after identifying their market
position. Hilton has introduced the concept of scorecards with an aim to implement all the
aspects of the business and to the change the environmental culture of the organisation in order
to achieve the desired objective. The employees working at Hilton were provided with the
training related to their work in order to sum-up the organisational culture. The size and
structure of the accommodation department states the number of employees working in the hotel.
After conducting the survey Hilton group has adopted new business operations. Adoption of new
system concentration on the delivery of value and utility to the customers after adopting the
oriented tactics and redesigning the organisational structure. In addition to this Hilton should
maintain the guest cycle. Guest cycle comprises of four stages in which right from entry of the
individual till its departure all are recorded. Recording of al the transaction will maintain the
security level within the premises. Besides this design of the hotel should also be so attractive
that it attracts large numbers of customers.
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f) {2.3, 3.3}evaluation of the main operational issues affecting the effective management and
business
performance of the front of house area and the accommodation service
The main operational issues that are faced by front office staff are as follows:-
 Sales and marketing: - Now days the changing market condition has increased the level
of competition among the hotel industry. In lieu of which hotel management is required
to promote their services (Hayat, 2008). Front office department is the face of the hotel
industry that attracts the potential customers. Hilton has a highly motivate and trained
staff at front office which work as a team in order to build up the market share. Quality: - Quality of the service provided by the hotel staff is necessary in order to
assure the arrival of the customers in future. The front office staff is required to maintain
the quality of the services by adhering the various policies and programs that are
undertaking in the hotel. The staff of Hilton takes lot of care in order to maintain the
quality of services and take regular feedback from the customers.
The main operational issues that are faced by accommodation department are as follows:-
 Marketing: - One of the major roles of accommodation department is to promote the
hotel brand by using various promotional activities like through advertisement in
magazines or newspaper or by placing the banners (Kuttruff, 2009). In lieu of which it
can be said that Hilton Hotel has an extremely driven and trained marketing, sales and
communication team which symbolize there company services in both offline and online
media. The effective marketing team present at Hilton is making continuous efforts to
attract more and more customers in order to increase its band image.
 Customer: - In order to attract more and more customers Hilton group of hotels have
came up with different offers and schemes like free day stay at some brands of the
company. Different types of scheme offered by the Hilton help the hotel to attract large
number of customers towards the company.
TASK B
a) {4.1} Explanation of revenue/yield management
Yield management is the process of forecasting and influencing the behaviour of the
customers which in turn will help the company to generate more income. Therefore, the concept
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of yield management in hospitality industry is very important. The operations that take place in
the hospitality industry mainly focus on in increasing revenue in the same way as it take place in
retail industry. Likewise the retail industry and hospitality industry cannot make an attempt hard
to offer more than what is actually available.
For example: - In Hilton hotel there are 200 rooms with around 330 beds. Therefore, in
case if hotel gets an order to book around 150 rooms with 250 beds after 2 months. Therefore,
this in turn increases the demand of the hotel. Further, if customers ask for extra discount against
the big order placed by him than in that case company should keep the profit after discount.
Therefore, at last it can be said that in order to influence growth company should
maximize revenue/yield management. Hilton is required determine its past tenancy in order to
forecast its tenancy (Mackenzie and Chan, 2009). On the basis of which company will be able to
generate more profit. Thus, at last it can interpret that Hilton group of industry should plan all its
operations in such a way that they are able to increase level of tenancy and probability.
b) {4.2} Analysis of sales techniques used to promote and maximize revenue
Different types of sales techniques that are used by the Hilton hotel in order to promote
and maximize revenue are as follows:-
 Offers and discount: - In order to increase revenue Hilton hotel should provide various
types of offers and discounts. This in turn will attract more and more customers. Hotel
industry can offer various types of packages like offering 2-3 days package at low cost or
with extra facilitates. Therefore, well-defined offering will help the Hilton to gain the
attention of the customers towards the hotel. This in turn will increase the revenue of the
company.
 Recommendation and sale lead: - Satisfied customers extend the word of mouth and
give recommendation to the hotel in the form of feedback. These feedbacks help the
company to know the area where they are required to improve (Zhang, Ye and Law,
2011). In addition to it also help the company to increase their sales.
 Discussion of duty: - the rates of the room should be negotiated with the customers
before making the final agreement. Hotel can charge high price at the time of peak season
and can reduce the rates in off seasons.
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c) {4.3} Evaluation of the usage of forecasting and statistical data in the room division
`Forecasting is very important in case of room division. Hilton hotels and restaurant in
order to plan all its operations in effective way need to forecast its future demand. Similarly, in
order to achieve the high growth rate Hilton hotel need to review its statistical data. Therefore,
some of the ways in which statistical data and forecasting play a significant role in room division
are listed below:-
 Foresee profitability: - Through forecasting Hilton hotels will be able to foresee its level
of probability that can be earned by them in future. In lieu of which company will also
be able to analyse the feasibility of the operations that are going to take place in future.
Therefore, it can be said that forecasting of future information can help the company in
generating more revenue by increasing visit of the customers.
 Price structure: - Forecasting and access of all the statistical data provide assistance to
the company in order to fix the price of the services offered by them. It is very beneficial
for the Hilton to set the price of the services offered by them in a highly competitive
manner and which in turn guarantee profitability.
d) {4.4} Calculation of performance indicators used to measure the success of
Accommodation sales
The Hilton hotel industry can measure its business performance by adopting the various
performance indicators.
Occupancy rate: - This determines the percentage of room that is occupied by the specific hotel
unit. This indicates the extent to which the hotel industry is capable of employing its total
susceptibility.
Table 1: Room occupancy rate
Types of rooms
Total
available
Total
occupied
Single rooms 75 55
Twin rooms 60 55
Double rooms 80 70
Total number of
rooms 215 180
Room occupancy
rate
Occupied rooms/ Total number of
available 83.72%
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Table 2: Sleeper occupancy rate
Types of rooms
No. of beds
available
Number of beds
occupied
Single rooms 75 55
Twin rooms 120 105
Double rooms 160 100
Total number of
sleepers 355 260
Sleeper
occupancy rate
Occupied beds/ Total number of
beds available 73.24%
Average daily rate: It shows the per day rate that is charges by the hospitality industry on
per occupied room. Average daily rate is calculated by using the following formula.
Table 3: Average daily rate
Types of
rooms Total available Total occupied Price
Revenu
e
earned
Single rooms 75 55 £ 80 per person/room 4400
Twin rooms 60
50 occupied by
two & 5 by one
£120 per room & 80 in
case of single
occupancy 6400
Double rooms 80
30 occupied by
two & 40 by
one £170 per room 11900
Total revenue
earned 22700
Total number
of rooms
available
Average daily
rate
Daily revenue/
number of room
occupied 126.11
In order to calculate average daily rate, the prices for different categories of rooms are
assumed. As In order to calculate the average daily rate, the cost of different types of room is
considered. Hence, as per the fictitious values and estimations, £ 126.11 is charged preoccupied
room by Hilton hotel.
Yield percentage: It is the percentage that is calculated by the Hilton group by comparing
the potential revenue (Rooms Division Operations Management. 2014).
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Table 4: Yield percentage
Revenue earned Potential revenue
4400 6000
6400 7200
11900 13600
22700 26800
Yield percentage (Revenue earned/ potential revenue) 84.70%
On the basis of yield percentage, it can be concluded that the Hilton hotel is rendering
decent amount of yield. The business unit is therefore considered to operate in an efficient
manner.
CONCLUSION
From the following report it can be concluded that for the success of the hotel Hilton
group need to follow all the rules and regulations that are imposed by the UK government. In
addition to this, it can concluded that development of front office and accommodation
department is required to perform various functions and responsibilities in order to attract more
and more customers in the changing environment. At last it can be said that in order to increase
its sales and generate more profit Hilton hotel is required to undertake various promotional
strategies into consideration.
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REFERENCES
Books and Journals
Abbott, A., 2014. The system of professions: An essay on the division of expert labor. University
of Chicago Press.
Ahmed, S., and et.al., 2012, March. Automatic room detection and room labeling from
architectural floor plans. In Document Analysis Systems (DAS), 2012 10th IAPR
International Workshop on (pp. 339-343). IEEE.
Barros, C.P., 2005. Measuring efficiency in the hotel sector. Annals of Tourism Research. 32(2).
pp.456-477.
Djumino, A., 2003. Room Division Knowledge. Surakarta: IGIE Hotel School.
Dufton, L. and Larson, K., 2011. Randomised room assignment-rent division. In Workshop on
Social Choice and Artificial Intelligence (p. 28).
Durkheim, E., 2014. The division of labor in society. Simon and Schuster.
Fountain, J., Fish, N. and Charters, S., 2008. Making a connection: tasting rooms and brand
loyalty. International Journal of Wine Business Research. 20(1). pp.8 – 21.
Goldman, J. and Procaccia, A.D., 2015. Spliddit: Unleashing fair division algorithms. ACM
SIGecom Exchanges. 13(2). pp.41-46.
Goo, J. and Park, T., 2005. The Effect of Hotel Room Division Service Quality on the Post
Evaluation. Tourism Study. 20. pp.87-102.
Hayat, K., 2008. No room for doubt and division. The News International.
Kuttruff, H., 2009. Room acoustics. CRC Press.
Zhang, Z., Ye, Q. and Law, R., 2011. Determinants of hotel room price: An exploration of
travelers' hierarchy of accommodation needs. International Journal of Contemporary
Hospitality Management. 23(7). 972 – 981.
Online
Mackenzie. M. and Chan, B., 2009. Introduction to Hospitality.[Pdf]. Available
through:<http://www.edb.gov.hk/attachment/en/curriculum-development/kla/pshe/nss-
curriculum/tourism-and-hospitality-studies/Introduction_to_Hospitality_Eng.pdf>.
[Accessed on 4th February 2016].
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