Operations Management in Hospitality

The assignment delves into the realm of operations management within the hospitality sector. It examines key concepts and their practical applications in hotels, drawing upon diverse case studies for illustrative purposes. The analysis encompasses various aspects of hotel operations, including revenue management, service delivery, and process optimization.

Room Division
Operations Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK A ..........................................................................................................................................1
1.1 Settlement and front office services in Fairmont and Milestone hotels..........................1
1.2 Duty of a range of accommodation and reception services member..............................3
1.3 Legal and statutory requirements ...................................................................................5
1.4 Services supply by rooms division...................................................................................6
2.1 Value of front of house area ..........................................................................................7
2.2 Key characteristic of preparation and administration of front of hotel...........................8
2.3 Key operable problems influencing impressive establishment......................................9
3.1 Value of internal place and designing to effectual management..................................10
3.2 Critical prospect of designing and establishment of the accommodation service .........11
3.3 Key functional issues impacting the effectual administration........................................12
TASK B.........................................................................................................................................13
4.1 Description of income/issue yield establishment..........................................................13
4.2 Sales method used to upgrade and increase money.......................................................14
4.3 Utilization of prediction and statistical data..................................................................14
4.4 Calculation of performance indicators utilizing in measuring accommodation sales...15
CONCLUSION.............................................................................................................................18
REFERENCES..............................................................................................................................19

INTRODUCTION
Management of room division is nothing but a characteristic of operational management
which are dealing with initiation of pleasure and a healthy environment. Room division played a
vital role in working process of a hotel. Room Division consists of two sub-departments namely
Housekeeping and Front office (Alderton and Saieva, 2013). Housekeeping is considered as just
as a cleaning sector. he surveys conducted by hotel have shown many times that cleanliness is
taken as first priority from the list of requirements of hotel guests. One who is room division
manager has responsibility for executive housekeeping and front end office. They manages
common or general operations of front offices such as reception, concierge, etc. They directly
report to deputy managers. This report is based on the management of room division and
operations of Fairmont resort and Milestone Hotels. In this project, roles and duties of the
employees of front area office are described. The laws and norms that apply to rooms division
operations are also explained. Here important prospect of planning and management of front
house area for providing hospitality operation are explained.
TASK A
1.1 Settlement and front office services in Fairmont and Milestone hotels
Fairmont hotel deals with management of food, resting facilities that is provided to
guests. Workers of front office department provide services and handle the guest by
documenting information about number of days they are staying, type of rooms they booked like
individual or dual, any other services they are demanding or not. The reservation system of hotel
is arranged by front office staff members in order to assure proper maintenance of records of
clients (Assaf and Agbola, 2011). Front office and accommodation services of corporation
usually found at the centre point of Milestone hotel for welcoming their travellers. They are
responsible for checking in and out of guests of hotel. Front office sector also take care of
reservation system.
In Fairmont hotel, employees of same sector have the duty for handle message and
taking orders such as food and other facilities from service takers. Additionally, this department
of hospitality services are responsible for all financial matters of hotel. They also handle
queries of guest and some other services involving laundry service and meal order. The
Milestone hotel shows that there is about 1500 beds reflect occupancy of rooms in hotels. This
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statistics increases in case of latter one organisation. The performance indicators reflects
partition of apartments which provides a major role of creation of money. This increases in the
rank of resort in market globally. This is because of generation of more revenue. It also needed
role of hospitality services in order to spread awareness in a channelized form so that
information related to room services gets completed.
There are several issues regarding accommodation and front office services. In order
those corporation have to use certain strategies like division of work between different sectors,
front office service are given to receptionist only. They should responsible to give answers to all
queries and problem regarding rooms or any type of services. The booking of rooms are done by
reservation system. The management of revenue is performed by cashier of hotel. If all of them
do their properly then all issues get resolved automatically.
B&B Fairmont Hotel
 Management of guest cycle: The arrival
and departure of guests are checked by
the employees of front office. When
they are arriving it is the duty of
receptionist to ask them which kind of
room they want ( i.e. single or double)
and other facilities that are needed by
them.
 Management of consumer cycle: They
are also responsible for providing all
facilities that is required by their guests.
And after providing them all services,
when they are moving out, receptionist
check their name in database to verify
their payments.
 Housekeeping: This is done by other
servants of hotel. They are responsible
for making a clean environment and
fulfilling all basic needs of customers.
 Laundry works are properly done
workers of B&B hotels.
 Sanitation: Good level of cleanliness
are provided in term of sanitation.
 Housekeeping: Same work is done by
employees of Fairmont but they are not
performing well and their work are not
satisfying the guests.
 Laundry activities are not properly
done by the employees.
 Sanitation: Better level of sanitation is
provided in relation to B&B hotels.
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The accommodation and front house services for the different organisations are listed
below:
a) Fairmont hotels are providing the facilities such as:
 20 bedrooms and 15 suites
 Personal dinning rooms
 Library and art room
 Wine cellar
 A small bar
 Swimming pool
 12 Treatment room
 GYM
 Fitness studio
b) Bed and Breakfast (B&B) 'Norfolk Guest House' , in Bristol is offering following services:
 En- suite rooms
 Facilities of making tea and coffee
 Wi-Fi connection
 Breakfast
 Laundry facilities
 Use of lounge and kitchen regions
 Garden
1.2 Duty of a range of accommodation and reception services member
There are different categories of staffs involving secretary, reservation superordinate,
salesclerk and housekeeper in B&B and Fairmont hotel. Their roles are described below
separately:
 Receptionist: They are having the responsibility of welcoming guests. They take their
booking order with other details of them. They document the record of occupancy rate in
order to maintain revenue of hotel. Rectification to booking according to the need of
clients is handled by them only (Batun and et. al., 2011). Whole quality of service
depends on receptionist of organisation as they are responsible for greeting their guests.
Roles of reception service givers of B&B is to provide information to their consumers.
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The troubleshooting of issues or queries faced by guests in relation to rooms or any part
of hotel is solved by receptionist only.
 Housekeeping: The housekeeper of Fairmont hotels are having responsibility of
maintaining clean and clear environment within hotel (Assarlind and Bäckman, 2013).
Cleanliness refers to improvement of service quality to guests. B&B workers are
responsible for providing pleasure as well as safety to users in order to maintain the
reputation of brand of hotels in competitive market. The housekeeping positioning is
good in B&B hotels but are not properly done in Fairmont hotels. Floor supervision is
done by the housekeeping department. They are responsible for checking that floors of
hotels are neat and clean. They are not kept wet as this causes random accidents. So,
floors' surface after washing should make dry properly.
 Room attendant: They have the responsibility to make sure that all rooms in hotels
should be clean and tidy. They also have the duty to invite their guests.
 Reservation Supervisor: They handles system of reservation by monitoring all booking
that is taken by receptionist and entered into database. They take care of all update that
has been done in reservation system. Employees of B&B are responsible for updating the
requested modification to booking details.
 Clerk or Cashier: Their task is to deal with the facilities of payment. Any issues
regarding revenue management in case of cancelling booking is also take care by them
(Branch, 2012). They have to refund money to their guests and record this update in
software of their database. B&B hotels used to transfer responsibility of payment
handling to department of reservation.
 Designing: The designing work is done by housekeeping department and it is there duty
to make front house or office attractive. For gaining success in business design, place
outer look plays a vital role. The hotel should invest more money in the designing or
improving the outer beauty of organisation by using several methods like painting,
cleaning, decoration from flowers, etc. Designing of front house region is another way to
attract consumers for their services. This will also aid making a strong bond between
their clients. They again come back to enjoy their services and also do mouth
advertisement of the services of hotels to their relatives, friends, etc. This increases the
number of clients for organisation and it ultimately increases their turnover. The
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environment around B&B hotels must be natural so that clients enjoy the beauty of nature
in morning as well as evening hours. There should be a plenty of trees and flowers in the
garden of hotel. Other accessories for playing should also be arranged in the park so that
kids also enjoy and play there. Front office reservation clerk are responsible to maintain
clear report about all paid bills and unpaid services so that this can be modified at the
time of requirement.
 Sanitation: If the hotels are of high standards then it also the responsibility of managers
to inform their housekeepers to make clean the place of sanitation. The bathrooms, wash-
rooms, lawns, outer environment, etc. must be clean and clear. This will improve the
health and hygienic conditions of guests as well as employees working there.
1.3 Legal and statutory requirements
The lawful and enactment requirements includes correct or accurate arrangement of
rooms work. It involves general norms like regular repairing of room and region provided. It
focuses on cleanliness section and try to enhance this. It reflects the governance of hotels by
providing better standard of rooms. It also ensure a provision of safety deposit boxes.
Additionally, it involves safety of storage region that includes keeping luggages at right position
so that they are not theft by any one. The room separation and work administration in Fairmont
hotel are required to fulfil the wellness and guard of guests, utilization of unsafe substantial,
security of data, correct distribution of cost and traffic information to customers and cooperation
with the present legal document in UK (Chon and Yu, 2012).
The services of room division is needed to obey the health and safety act. This assures a
flourishing surroundings in building for workers as well as consumers. On the other hand,
organisation needed to keep abidance with the act of data protection 1998 by keeping guests data
private and maintain secrecy for them (Assaf and Agbola, 2011). For example, the important
data such as name, address, date of birth, mobile number, etc. cannot be shared with any other
unknown guest or organisation. The room division operation of hospitality corporation having
responsibility for management of hazardous waste. For instance, substances like detergent,
wasted oils, insecticides, pesticides, room fresheners are the common materials that are used by
hotels and properly managed by recycling.
Different legal and statutory requirements that can be applied to room division operations
are listed below:
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 Fire regulations: Hotel must have fire alarms so that in the case of emergency, people
can use that and take exist immediately.
 Health and safety act 1974: This law states that health and safety should be ensured at
hotel by protecting people from random accidents like getting slipped on wet floors, etc.
 Data protection act 1998: This law give the facilities to users about protection to their
personal information. No employee is allowed to give any of the information regarding
their guests to other people without their permission.
1.4 Services supply by rooms division
The cordial reception businesses in room division work by offering the relationship of
business with other organisations. Most of arrangement of administrative division rules and
regulations are precede in order to give proper services. Certain issues are occurred related to
hospitality organisation that are tried to resolve by staffs members. The Fairmont hotel are
maintaining special department as front office and house keeping in order to give services to
their customers. The housekeeping services have responsibilities of keeping hotel neat and
clean. On the contrary, front office sector of enterprise do reservation by taking order from their
guests as well as provides the dormant facility to them. The front-most bureau of Milestone
building is maintained by bank clerk and secretary so that proper work are given to their
consumers.
The reservation system of hotel write all details of guests involving their transfer of
booking details into database. Housekeepers are responsible for providing laundry services, room
cleaning services and many other to their guests. The room division department of hotel in UK
are also plays role of resolving queries related to booking of rooms for consumers. The
performance indicator shows partition of flats which plays a major role in creation of revenue
(Davis and et. al., 2013). This increases the rank of hotel in all over world because generation of
revenue is enhances per annum. Different services provided by hotel includes restaurant,
facilities related to health, spa and beauty parlours for men as well as women. These are actually
based upon the popularity by guests. If more luxurious services are provided by hotel, then it
imposes extra charges from their consumers.
Some special services provided by room division are listed below:
 Management of guest cycle: This is the duty of receptionist to check the arrival and
departure of guests in hotels. They have to check for the number of customers that are
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accommodating the rooms and also at the time of departure they have to check for the
payments done by them in their database.
 Reservation system: This facility is also provide by worker of front office. Clients
coming in the hotel should have to first their names in database by giving payments of
their room.
 Housekeeping: Some other workers are employed for this task. They are having the
responsibilities of cleaning the rooms, wash-rooms and also the surfaces. Also they have
to do laundry services to their guests.
2.1 Value of front of house area
The frontal house in Fairmont hotel gives the visitor assisting occupation add-on to
nutrient and drinkable facilities and settlement. They make accurate coordination among
different sectors and handles cash payments and receipts from their customers. Some of the
services provided by front house area are listed below:
 Welcoming guest or giving first impression to them: Reception area have duty to
welcome and greet people by explaining services provided by them. Each and every
queries related to the service is handled by receptionist only. This is the first impression
that is given to guests that are coming. For example, guards standing outside the hotel
should give respect to people coming in hotel. After that receptionist say hello to them
with a sweet smile and welcome them by asking their good name.
 Coordination of all guest activities: This can be done as following:
▪ Query management: The query related to rooms and any other hospitality
services also resolved by staff members of front office. The room division
department have to manage quality of hotels. For example: if guest asked for the
availability of room then receptionist tell this to them by providing the details of
rooms with their prices.
 Reservation sector: The front office has separate division involving reception,
cash counter, reservation system, etc. Reservation department deals with booking
order from guests by giving them correct reservation forms and register it into
software of database (Gul and et. al., 2011).
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 Cash handling: Cashier performs or manages the cash by taking payments from
different modes in hotels. The payment or money received by customers are
updated and entered into the system database on regular basis by them so that no
disputes will rise in future. The cash returned by cashiers in the case of
cancellation of booking is also entered into database in order to give answer to
manager of hotel.
 Housekeeping : The housekeeping department are responsible to provide better
services regarding cleanliness and maintaining a healthy environment. In addition,
several hotels provide facility of doctors in case of any emergency.
2.2 Key characteristic of preparation and administration of front of hotel
Preparation and administration of foremost house arena of Fairmont hotel assures
effectual point of income governance, designing and ambiance care, managing the complaints of
guest with help of computerized reservation system and management of guest services. The
designing and establishment needs impressive management of visiting and going out services to
the customers of hotel. Additionally, the governance of reservation method is also needed. This
effectiveness is assured by updating early check in of consumers as well as their delayed check
in (Khanna, 2015). There is also maintenance of room status report. The guests complaints are
also arranged or resolved by receptionist regarding services of hotel.
This is an integral part of hospitality. For example, corporation gives feedback forms to
their consumers and gathering responses from them in hotel. This gives an idea or
recommendation to hotel owner in order to improve their service facilities. The planning and
managing the front house department identifies design, ambience as well as cleanliness of
environment of organisation. This also decides its external and internal designing of hotels. The
enterprise in United Kingdom create an effective planning for music, flowers, colour, lighting,
etc. in order to establish good or attractive atmosphere of hotel. The complete cleanness of hotel
is also required so that healthy and hygienic conditions are provided to guest. This is received
by repairing of hotel land site, by daily detection of rooms, cleaning of floors and curtains of
hotel every day.
Some of the characteristic of preparation and administration of front of hotel are
described below:
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 Security to staff and guests: Organisation have to make some policies in order to
increase the safety level. This can be done by putting cameras every where in the hotel.
Guards should be appointed for securing the safety of their guest and staffs also.
 Health and safety: Hotel managers can maintain health and safety by providing healthy
foods to their clients. This will improve the image of hotel as customer do mouth
advertisement about their food quality and services which they received.
 Consumer and data: Safety should also provided to the consumer data. Any information
of users can not be provided to any other stranger without their permission.
 Use of technology for productivity: Enterprise can use the modern technology in
increasing their production. They can offer online business and booking of rooms. This
will increase the selling of rooms.
2.3 Key operable problems influencing impressive establishment
The problem related to operation of Fairmont hotel can be identified by satisfaction level
of consumers, quality management, sales as well as management of finance of hotels. Some of
the issues are discussed below:
 Satisfaction level of consumers: Most of people are not getting satisfied by the
services provided by hotel. This is a very serious issue of hotel. According to the view
point of Langabeer II and Helton (2015) if the organisation manages area of front office
very effectively then will surely achieve higher level of consumers satisfaction and a
large number of travellers gets attracted towards them. This will ultimately increases turn
over of corporation. The hotel deals with services of front end office effectively by
greeting and welcoming their guests, resolving consumer query so that they receive
higher level of customer satisfaction. On the contrary, Lewis and Brown (2012) says that
ambience of hotel decides level of consumer satisfaction. However, it can be concluded
that impressive relationship management with guests provides the overall level of
consumer gratification.
 Quality management: Many operational issues are faced by business organisation while
managing the quality in hotel industries. But it is very important to do total quality
management of front office area as if front office is correctly managed then the guest
will get an idea that all other rooms will also not managed effectively. So, they avoid to
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use the services of Fairmont hotel in UK. So, it is very essential to make better
arrangement of front area offices in organisation.
 Food quality management: Nakayama and Bucks (2012) thinks that effective operation
management of front office will enhance the sales volume of hotels. But Powell and et.
al.(2012)said that this can only be achieved by offering healthy & spicy food as well as
luxurious accommodation services by hotel owners to their guests. The increase in
volume of sales of organisation will increases financial strength of hotel in turn.
 Financial and budgeting decisions: one of the issue of organisation is improper decision
making regarding finance and budgets. Due to this proper management gets disturbed and
affected. Because of improper budgets, managers are facing problems in implementing
different required policies.
 Human resource planning: Managers are also facing certain problems while appointing
suitable workers for their hotels. This can be solved by associating human resource
planning as they will select best employees and also provide them better training before
joining.
 Quality service delivery & customer care: Hotel is not giving good quality services to
their guest. They are complaining but appropriate actions are not taken. This gives
negative impact of the organisation which is not good. So, enterprise ought to give proper
customer care services.
3.1 Value of internal place and designing to effectual management
It is the property of internal designing that determines the design of the building room
inside. Internal property designs intend ambiance of the Fairmont organization. The value of
internal place and designing are listed below:
 The different property of internal design of hotel room involves colours, form and
structure of building area that attracts most of consumers and also provide organisation
to compete with other hotels internationally (Repp and Keene, 2012). The Fairmont hotel
in UK focuses more on interior design in order to maintain a good atmosphere in hotel
premises.
 The impressive formation of corporation establish reputable trade name and also assures
attribute in the competitor-y marketplace by keeping good and attractive indoor
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geographical area designing. This design will attract a large number of tourists in market
and provide increasing sales rate in present environment of business.
 The interior design of organisation involves designing of room, lightning, heating
facilities and efficient use of spaces available within hotel.
 If interior design of hotel is well decorated then this will aid in gaining competitive
advantage in the market. The variations or differences in internal property shows level of
its importance. It includes the products of better quality.
 This also involves the safety of storage area including keeping of luggage at right
positions. It raises standards as well as cost of room. The receptionist are responsible
for providing information to their guests.
 They also troubleshoot the questioning and issues that are coming from side of
consumers in their particular apartment or any portion of hotel. When all these services
are effectively provided by corporation then their rank will be increase in the
international market. It so due to rise in turn over of hotels.
 Suitability of fabrics/ furnishing/ fittings: This can be done to improve the value of
internal places. Surfaces of floors should be kept neat and clean, beautiful curtains and
bed-sheet should use to attract the customers.
 Lighting & effect of colour: Proper lighting should be done by using colourful bulbs so
that one get attracted by seeing it at once only.
 Proper use of space & planting flowers: Space can be used properly by planting
beautiful flowers like roses, jasmine, etc. This will improve the environment of hotel.
3.2 Critical prospect of designing and establishment of the accommodation service
The Fairmont hotel in the UK has faces critical issues in services of accommodation in
terms of its security interest administration, area repair and internal ornamentation. Critical
prospect of designing and establishment of the accommodation service are following:
 Lien management: The lien management in hotel is performed by paying special focus
on quality. This is also done by maintaining anti-allergic bed facilities, controlling of
pest and also by providing safety and security to their users. These management although
incurs high cost at the starting, but it aids in enhancing the quality and this also helps in
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retaining consumers for long time. Another technique adopted by hotel in order to attract
customers in market for assuring quality service is room maintenance.
 Financial Investment: It has been seen that they are not investing as much amount of
money that are invested by other five star hotels regarding the interior design of rooms in
hotel. The internal designing of building require a large amount of money in starting or at
beginning. However, Fairmont hotel of UK has been taking initiatives for management of
interior design of hotel so that they can achieve competitor y advantage in the market
world wide.
 Resource management: The overall amount of bedding is approx one lakh seventeen
thousand and six hundred. This reflect an residency proportion of bedding of about 64%
(Shuai and Wu, 2011). In the year of 2010, the corporation gained a profit of about 12%.
Also, there is a requirement of bar for seat coffee. This equipped form of organisation
need a large of facilities. Correct worth must be provided for handling of different kind of
response supply in building. It may attracts a large number of travellers and as a result
turn over of corporation increases. It has been seen that there is about 7% revenue in
year of 2009 but it has been raised by 15% in year of 2011.
3.3 Key functional issues impacting the effectual administration
The Fairmont hotel in UK has been facing several serviceable issues in regarding selling
and encouragement work in existing situation of business. They also suffers from income growth
due to this they are not doing effective marketing and promotional activities. Consumers rarely
found advertisement of hotel through various promotional channel like Face book, What's app,
twitter, newspaper, journal, etc. in present time. So, users or travellers are are not aware about
the services provided by Fairmont hotel. But they are not providing same as five star hotel are
offering. They faces many operational issues in terms of compliance with the standard of
services in current time. The service quality regarding cleanliness and maintenance of hotel
rooms are most affected sections (Subramanian and Ramanathan, 2012). Hence, it is clear that
the non-compliance with standard of quality, cleanliness, maintenance of room, and low
activities in terms of promotion are some of the main or major operational issues that is faced by
Fairmont hotel in UK. Some of effective strategies are used to develop by corporation in order
to deal with these issues or problems. It also involves logical ideas of business that are needed by
services of accommodation. It requires the role of proper functioning of management of front
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office area. Some of the issues that are effecting the effectual administration are explained
below:
 Financial and budgeting decisions: The enterprise faces problems in making decision
about budget as there needs a large sum of money in the form of investment. They are not
sure how much amount of money is invested in which department.
 Human resource planning: They are also facing issues in hiring the skilled workers in
their hotels. They have to include human resource management for this task.
 Customer care: There are many feedbacks given by clients which have to address. But
they are confused which one is given more priority and resolved.
 Quality service delivery: Organisation is getting failed in delivering good quality
services to their clients. This is impacting badly the branding of the hotel. So, managers
ought to take proper decisions to meet the demands of their guests so that they receive
positive feedbacks from them.
TASK B
4.1 Description of income/issue yield establishment
The success of Fairmont hotel that are selling rooms by giving good quality services in
terms of accommodation. A way of increasing revenue is offering the well maintained room
with right or fair price. In a continuously changing industry, most of hotels are using modern or
updated software having the aim to determine whether traffic are exceeding general traffic set
by organisation or not. This aid in getting the latest information about changes in the
corporation, fast and appropriate.
 Certain policies are also implemented in hotels in order to maximize room occupancy and
revenue. No cancellation policy can be applied. This states that consumers cannot cancel
their booking at free of cost (Wilhelm, 2011). This charge can be of one night
accommodation or it can be simply a cancellation fee. But it depends on the different
organisation.
 Another policy in order to avoid loosing of money is no-show policy. This sates that the
revenue are not refunded once booking is done even after cancellation of booking.
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 Additionally, rearrangement of rooms is another efficient method of increasing money.
That is nothing but giving right rooms to right people at right price.
 Occupancy can be maximised by doing price discrimination by using differential rates
and traffic structures.
 Hotel should give WI-FI facilities or internet services to their guests. This will attract
them as it is the basic need of all people.
 Price fencing and negotiated rates can be offered by going seasonal packages.
4.2 Sales method used to upgrade and increase money
The basic measures taken in Fairmont hotel to maximize income is recruiting capable or
confident workers who recognise each and every thing about services that are provided by
enterprise. A skilful discussion regarding the condition of contents, cost, and payment instalment
for packages can effectively enhance profit for hotel and also aids in retaining long term
relationship from their consumers. The workers who have responsibilities of selling have to
recognize the method of sales such as bottom-up, top-down, up-selling and cross-selling
(Wyngaard and De Lange, 2013). Up-selling is a method used by most of hotel manager in
which marketing more than that the visitor got at the time he or she do reservation. Hence, it is
necessary for employees to offer other services which might be of interest of their clients such
as up-gradation, special treats, etc. The organisation should keep a database that is related to
clients. It will aid hotel to recognise repeat quest, and can be proved helpful in retaining them
through providing special offers, discount rates and several other packages. It is very necessary
for hotel to pay attention on their existed clients by giving all the services that are demanded by
them. As they will give currency all time period they return back, they also become a great
technique to do advertisement that is free of cost too. Apart from this, corporation have to
implement new marketing strategies so that they gain new clients. They can use media, journal,
television channel, internet, etc. in increasing their promotions or publication. This will aids in
generating more revenue.
4.3 Utilization of prediction and statistical data
Forecasting can be simply defined as a technique that is used by managing director in
organisation to design upcoming activities which is based on previous year result. Statistical
data can be defined as important data or numerical information that is used for doing
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performance measurement. Effective integration and discovering of statistical data can be
received by doing survey about the likes and dislikes and any purchasing habits of travellers.
The Fairmont hotel has statistical data of previous years, this is used to create marketing
strategies for future by examining their pros and cons (Xu and et. al., 2011). Different
organisation with in hospitality sector are using this technique of forecast in order to determine
profit or loss of last year or previous year activities. If the data from past year shows that
strategies which were used are efficient, then industry will utilize same. But the results varied,
then it is also a plus point for corporation, as they in advance what areas they need to improve or
develop and do modification as per that in order to increase profitability. By examining
historical trends and figures, current pricing can be made as this will show the increment in the
costs of different raw materials. Actual performance should be compared with the projected one.
This will give an idea to improve the services.
4.4 Calculation of performance indicators utilizing in measuring accommodation sales
Rooms types Number of rooms Bed Occupancy Price or tariff
Single 75 75 55 60 Pound
Twin 60 120 50 filled by 2
5 filled by 1
90 Pound
Double 80 160 30 by 2
40 by 1
90 Pound
Total 215 355 180
Rate: Single(£55), Twin(£80), Double(£80)
Room occupancy percentage: 180/215*100= 83.72%
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Sleeper occupancy percentage: 260/355*100= 73.23%
Average room rate: 11.90/ 180= £66.11
From the above based analysis, it can be concluded that there are so many rooms
present in hotels and it can be provided to different visitors as per their need either they want
single or double.
The percentage of rooms occupancy is 83.72% and it aids in achieving more
profitability and ultimately turnover of corporation gets increased. Also, the rate of sleeper
occupancy is about 73.23% and the rate of average rooms is 66.11 Pound. Hence, it can easily
afford by visitors. By this way, Fairmont can earn more profit.
We will consider three type of room i.e., single, twin and double with numbers of rooms
available in the hotel. Price, beds and occupancy are also considered.
Type of Room Rooms Available Price Beds Occupancy
Single 70 £60 70 50 occupied
Twin 65 £90 130 40 occupied by2
10 occupied by 1
Double 75 £90 150 30 occupied by 2
20 occupied by 1
Total 210 350 150 room (220
guests)
Percentage of Room Occupancy:- 150/210*100 = 71.42%
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Percentage of Sleeper Occupancy:- 220/350*100= 62.85%
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CONCLUSION
From the above based report, it has been concluded that room division management is
nothing but partition and maintenance of rooms accurately in hotels so that guest visiting there
get attract towards there services and decides to stay there. The front office and accommodation
services are effectively managed by the different department of hotels like reservation providing
employees, receptionist, etc. There are different duty and obligation of settlement and staff
members of reception services . There are several laws that are applied in the hotels in order to
give better hospitality services to their guests such as norms like sharing of important
information like name, email-id, mobile number, etc. are strictly prohibited to other organisation
or any unknown guest. The front house area must be effectively managed as if customers will
visit hotels and watch that front office area is not clean then, they think the rooms will also dirty
and as a result they avoid to stay there. Hence, organisation ought to maintain clean and
attractive environment in their front office.
18

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