Enhancing Revenue and Sales Ratio of a Hotel through Effective Management

The assignment content discusses the importance of managing sales and revenue data in hotels to encourage demand and improve room occupancy. The provided data reveals that the hotel has an average room occupancy percentage of 83.72% and a sleeper occupancy percentage of 73.23%. The study concludes that hotels should plan and schedule their services, especially during seasonal times, to manage demand aspects. It also emphasizes the importance of employee efforts in delivering quality services to clients.

ROOM DIVISION
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Table of Contents
Introduction .........................................................................................................................................3
Task A...................................................................................................................................................3
a) Discuss key aspects of legislation and regulatory requirements relevant to room division
operations (1.3)................................................................................................................................3
b) Analysis of the roles and responsibilities of a selection of accommodation and reception staff
(1.2)..................................................................................................................................................4
c) Evaluation of the variety of services offered by room division for a wide range of hospitality
businesses. Emphasize on accommodation and front office department (1.4 & 1.1)......................5
d) Assessment of importance of front of house area and the accommodation service to effective
management (2.1 & 3.1)..................................................................................................................6
e) Key aspects of planning and management of the front house area and the accommodation
services (2.2 & 3.2)..........................................................................................................................7
f) Main operations issues affecting effective management and business performance of front
house area and accommodation service (2.3 & 3.3)........................................................................7
Task B ..................................................................................................................................................8
a) Explain revenue / yield management (4.1)..................................................................................8
b) Analysis of sales techniques used to promote and maximize revenue (4.2)...............................8
c) An evaluation of usage of forecasting and statistical data in room division (4.3).......................9
d) Measure the success of accommodation sales (4.4)....................................................................9
Conclusion ...........................................................................................................................................9
References..........................................................................................................................................10
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INTRODUCTION
In hospitality sector, hotels have to emphasize on proper room division in terms of adequate
accommodation services to the clients. All the managers working in the same sector have to make
sure that they are allocating rooms in adequate manner and major emphasis here should be given to
housekeeping and front office services. The present research study has been made on hotel Hilton
which operates its business in UK hospitality market place. Furthermore, researcher has also
discussed legal framework which needs to be considered while managing operations of the hotel.
Roles and accountability of front house office are also discussed in the subsequent study and along
with that, key aspects of planning and management of front house and accommodation services are
stated. It is essential for the hotel manager to forecast the ratio of room occupancy so that on such
basis only, clients can be provided information accordingly.
TASK A
a) Discuss key aspects of legislation and regulatory requirements relevant to room division
operations (1.3)
In order to manage operations of the hotel, Hilton has been emphasizing on several legal
rules and norms which also assists the entity to deliver proper services to the clients: Healthy and safety law: Hilton hotel has been maintaining proper health and safety
standards so that while allocating rooms to clients, issues may not arise. Clients are
adequately informed about all those areas that are associated with risks (Odularu and
Bankole, 2006). Secure payments: Most of the customers at Hilton hotel prefer to pay for services through
online medium; therefore Hilton make sure that clients are not cheated from any ground. Appropriate infrastructure: In order to manage room division operations, manager of
Hilton hotel emphasizes on adequate infrastructure as that also persuades clients from
different grounds. Hilton hotel changes furniture as per different occasions which gives
attractive look to the hotel property. Diplomatic privileges: While advertising and promoting the services, Hilton hotel make sure
that they are not considering any diplomatic privileges because the hotel is highly concerned
towards customer services. All types of cheating and fraud practices are avoided at the hotel. Security aspects: The hotel has been making wide range of changes in security aspects for
the clients and this also aids in protecting people from accidents and uncertainties (Joanna
Fountain and et. al., 2008). CCTV camera and security alarm are situated at the hotel so that
accidents can be avoided. Proper keys and accessories are provided to the customers so that
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their property can be protected.
 Data protection: As per the legal aspects, Hilton hotel has been following Data Protection
Act in which information about all the clients is recorded and maintained with secure
passwords. Only authorized people are allowed to access the data and according to the need,
it can be accessed by any of the employee. Information about the clients should not be
disclosed in front of everyone.
b) Analysis of the roles and responsibilities of a selection of accommodation and reception staff
(1.2)
Roles and responsibilities of accommodation staff:
 It is essential for the Accommodation department to provide proper services to the clients
regarding room occupancy aspects. This is also the adequate way of managing demand and
supply.
 Accommodation department needs to ensure that rooms are clean and hygienic. Further,
rooms should be decorated enough so that it can meet the needs of clients. Accommodation department is also responsible for better housekeeping services since the
services entirely changes efficacy of hotel (Medelik and Ingram, 2000).
Roles and responsibilities of front office staff:
 The person who is sitting at the reception desk has to make sure that he or she is greeting the
clients effectually all the time when people visit the place.
 Front office staff is also required to provide adequate information to the clients regarding the
hotel and room occupancy facets. Further, the person must have the knowledge to deal with
technical systems.
 Front office staff needs to communicate properly with all the clients so that they can
enhance the efficacy of services.
 The department has to coordinate properly with the other departments so that adequate
services can be delivered to the clients.
 The department is also accountable to keep all the records in safer manner; however crucial
things should be disclosed among all the associated persons (Mehmetoglu and Normann,
2013).
 Front office staff has to make sure that the premise is clean and attractive because first
impression always gives last impression.
 Front office staff members are responsible for decoration of the premises so that to make the
hotel entity more attractive. Further, the front office department has to follow all the
disciplinary aspects so as to maintain the decorum of hotel services.
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c) Evaluation of the variety of services offered by room division for a wide range of hospitality
businesses. Emphasize on accommodation and front office department (1.4 & 1.1)
Accommodation services of Hilton hotel
Hilton hotel emphasizes on delivering proper services to the clients and before they allocate
rooms to the clients, the department make sure that rooms are clean and hygienic. Accommodation
department ensures to provide proper bed, breakfast and other services to the clients within the
room. The appliances and tools situated in the rooms are proper and risk free and this reduces the
probabilities of accidents and misshapenings. Linen and laundry services are also delivered to the
clients where clients do not require to approach other service providers. All the services are
provided at the door as per customer convenience (Nield and et. al., 2012). Managers of Hilton
hotel has great concern towards safety and security aspects where in customers are provided with
adequate information about the tools and techniques associated in the rooms. Intercom facilities are
also delivered to the clients where in they can call staff members at the time of emergency. Several
suites are also separated for luxury services where in clients can get amazing views directly from
the lobby of the rooms. Such services gives fantastic experience to the clients regarding hospitality
services. The rooms are well equipped with lights, fans, A/C and Wifi services which fulfills all the
needs of clients. Further, in the area of lobby, Wifi services are also available which helps the clients
to access laptops and other accessories.
Front office services of Hilton hotel
At the time when client comes to the hotel, first of all front office department greets them
with flowers and complementary drinks and this creates first impression of the hotel services. Front
office staff members changes their duty frequently so that every time customer's queries can be
handled. All the guests who come to the hotel are treated in proper and dignified manner so that
they may not switch to other entity. Front office services includes adequate system so that client will
not face issues related to time management. Proper arrangement is there related to waiting aspects
where in clients can wait for the services (Odularu and Bankole, 2006). Further, front office staff
ensures that queue management is effective of the business and to make it more effective, clients are
provided with Wifi services. Front office staff manages desk system in which the major role is
played by customer care department. The care department is entitled to solve all the queries and
problems of clients. The staff member also use adequate language as per the convenience of clients.
Hence, it can be said that front office staff helps Hilton hotel to enhance the capability of services
and through this, services can also be promoted to higher extent.
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d) Assessment of importance of front of house area and the accommodation service to effective
management (2.1 & 3.1)
Front office area of the hotel needs to be in proper way so that entire services of the hotel
can be managed in adequate manner. There are several provisions that needs to be added in the
same aspect: Information: Front office department is entitled to provide proper services to the clients
because they sit at the front desk. They are also required to maintain records about the room
occupancy and other aspects and for that they keep the record system always updated.
Information delivery process matters a lot to the clients because through that only, demand
can be generated (Ottenbacher and Harrington, 2009). Security aspects: Front office staff members needs to emphasize on security aspects so that
client's health can be protected. At front desk, camera and technical systems should be
affixed so that staff members can know all the activities that is happening in the hotel. This
is yet another form of facilitating controlling actions on actions of employees.
 Administration: Front office staff is accountable to manage administration related
information; thus they need to be remained updated in all areas so that work can be managed
in proper way. The front office department can also access the service delivery and
accordingly they can make changes in the customer services. The person sitting at the
reception needs to collect information about all department so that necessities can be
provided to them directly. At the same time, people who are coming to visit the hotel have to
acquire permission from the staff members due to restricted entry (Gregory, 2011).
Hence, from the discussion, it is clear that front office staff needs to analyze if all the
security actions are followed in the hotel premises when customers enter into the hotel.
Property of the hotel needs to be designed in essential manner so that clients can be
persuaded towards the same. Here technology plays crucial role because through that only,
innovation and creativity can be facilitated. With the help of adequate technological aspects, day to
day operations of the hotel can be managed and new service provision can also be added in the
existing service aspects. This is useful in terms of enhancing the opportunities of expansion and
diversification in new markets. However, while involving in such aspects, the hotel has to make
sure that they are following all the trade regulations and aspects.
Accommodation services of the hotel should be managed in such a way so that it can
augment the sustainability opportunities in the same market place (Joanna Fountain and et. al.,
2008). Rooms, lobbies and the entire premises should be neat and clean so that health related issues
can be avoided. While allocating rooms to the customers, accommodation department has to make
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sure that rooms are clean and are comprised with all the basic elements. There should be proper
bed, bedsheets and services in the room so that client's needs can be fulfilled. In order to maintain
the standard of services, all the departments of Hilton hotel needs to work in collaborative manner.
e) Key aspects of planning and management of the front house area and the accommodation
services (2.2 & 3.2)
Front office staff has to plan about the conference and other services so that clients can make
use of such amenities at the time when required (Desivilya and Michal Raz, 2015). The customer
care department of Hilton hotel emphasizes chiefly on Point of Sale aspects so that customer
confidence can be raised and this can also aid in retaining the end users. In the similar manner, the
department has to manage services ranging from information management to room occupancy
aspects. While allocating rooms to the clients, the front office department needs to ensure that
rooms are fully furnished and properly managed. All sorts of risks associated practices should be
avoided so that client's health can be protected.
The hotel has to plan out each and every aspect so that to avoid the probabilities of
implementing new changes. While planning for the services, all the staff members should be invited
in decision making process so that they can contribute in managing goal achievement. Properly
duties should be delegated to all the clients so that standard of the services can be maintained
(Phumchusri and Maneesophon, 2014). Main focus should be given to quality facets so that client
can be satiated and retained for longer period. Several provision needs to be made regarding client
feedback and opinion. In order to manage services in effectual way, Hilton hotel considers clients
opinion in service delivery process. These actions not only leads to client satisfaction but also
encourages them to promote the services in other market segments. At this stage, proper provision
should be made regarding the business resources.
f) Main operations issues affecting effective management and business performance of front house
area and accommodation service (2.3 & 3.3)
Issues that affects effective management and business performance of Hilton hotel are
mentioned in the below section: Staff training: The staff members of Hilton hotel should be imparted with training and
coaching so that they can learn different methods to deliverer proper services to the clients. Lack of transparency: It is vital for the Hilton hotel to maintain transparency in all service
aspects so that people can manage their interest accordingly. Lack of transparency affects
employee motivation and as a result, stakeholders interest get affected (Arcidiacono and et.
al., 2015).
 Financial issues: Unavailability of financial resources affects service provisions of Hilton
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hotel; thus this could affect the overall operations of the management. Proper financial
resources are required so that competition can be managed in adequate way as for that new
strategies needs to be developed. Thus, all the financial statements should disclose actual
position of the hotel in external market place.
Furthermore, there are several other factors as well which generates issues at Hilton hotel
and in terms of consequences, they affect overall business performance:
 Issues related to pricing aspects may generate especially when the hotel is unable to deliver
adequate information about the room services. Thus, in order to increase the ratio of
occupancy, it is essential for Hilton hotel to specify pricing elements (Abdelhadi, 2015).
 While entering into new market place, it is essential for the hotel to consider market terms
and conditions because market related issues can affect overall business processes. This
could also reduce the standard of services. Proper decisions should be taken related to
identification of customer segments so that better services can be provided at the same time.
 In the present hospitality sector, Hilton hotel faces huge competition because of the large
pool of entities exist in the same industry. Competition needs to managed in adequate way
so that business can survive for longer span in the same industry (Ness and Søreide, 2014).
TASK B
a) Explain revenue / yield management (4.1)
Yield management is the concept of managing inventory where in right kind of services are
delivered to right customers at right time. As per the technique, major focus is given towards
increasing revenue aspects of the hotel in larger volume. The use of yield management could help
hotels to undertake proper decisions related to allocation of business resources in different areas.
Sales capacity of the hotel can be encouraged because the technique allows the business to think
beyond the service capabilities (Revenue and Yield Management, n.d). The technique focuses on
price discrimination; thus it avoids comparison from all aspects. In case of high demand, revenue of
the hotel can be increased by selling more quantity and this can help the hotel to augment the level
of prices.
b) Analysis of sales techniques used to promote and maximize revenue (4.2)
A range of sales technique are there in the hotels that aids in augmenting sales ratio and
among those, seasonal pricing is considered the one which can boost sales ratio through huge
selling of units. Further, hotels can also use market based pricing approach in which business can
generate more profit in less time. As per the technique, structure prevailing in the market can be
ascertained. Customer loyalty schemes can also be used where in clients should be provided
different schemes and discounts (Rajgopal, 2013). This can also attract them towards repeat
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purchase and customer will also promote the services to other segments. Travel agents and tour
operators can also assist the hotels to increase the ratio of sales as they are entitled to promote the
services among customers on higher extent.
c) An evaluation of usage of forecasting and statistical data in room division (4.3)
Forecasting is required in hospitality sector since that aids in managing services related to
room division and other aspects. Room price optimization can be termed as a effective approach to
allocate resources while allotting rooms to the clients. Considering forecasted data, the management
of the hotel has to emphasize on augmenting the ratio of room occupancy through proper booking
systems. In peak season, pre planning is required about all the services so that to meet demand
properly (Pizam and Oh, 2008). Hence, considering these elements it can be said that revenue and
sales ratio of the hotel can be encouraged. Sales and revenue data of the hotel needs to be managed
in adequate way and that should be compared with monthly and weekly sales ratio so that the areas
of improvements can be found out. Hence, having proper consideration towards room occupancy,
demand can be encouraged as per the market criteria.
d) Measure the success of accommodation sales (4.4)
Types of
room
No. of
rooms
Beds Occupancy Occupied
Single room 75 75 55
Twin room 60 120 50
5
2
1
Double
room
80 160 30
40
2
1
Total rooms 215 355 180 room let (260 guests) 260 guests
Room occupancy percentage
180/215 x 100
= 83,72 %.
Sleeper Occupancy percentage
260/355 x 100
= 73,23 %.
CONCLUSION
Summing up the research study, it can be said that hotels have to plan and schedule each and
every thing especially in seasonal time because through that only, they will be able to manage
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demand aspects. Concluding the entire research, it is articulated that performance of the business is
based on employee efforts as they directly deliver services to the clients. The demand for hospitality
services can be encouraged if the hotel would follow quality aspects in all the service areas. Hence,
from the research study, it is clear that accommodation department and housekeeping department
both have to put efforts in managing hospitality services.
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REFERENCES
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Gregory, R. M., 2011. The faggot clause”: the embodiment of homophobia in the corporate locker
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Joanna Fountain, J. and et. al., 2008. Making a connection: tasting rooms and brand loyalty.
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Phumchusri, N. and Maneesophon, P., 2014. Optimal overbooking decision for hotel rooms revenue
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Pizam, A. and Oh, H., 2008. Handbook of Hospitality Marketing Management. Elsevier.
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Rajgopal, V., 2013. Average room rate-is it a myth. [Online]. Available through:
<http://hotelexecutive.com/business_review/2293/average-room-rate-is-it-a-myth>.
[Accessed on 4th December 2015].
Revenue and Yield Management. n.d. [Pdf]. Available through:
<http://www.goodfellowpublishers.com/free_files/Chapter%207-
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