Hotel Room Division and Occupancy Analysis

This report provides a detailed analysis of the hotel room division, including the number of single, twin, double, and total rooms available. It also calculates the occupancy rate for each type of room and the overall sleeper occupancy. The data is analyzed to identify potential operational issues and provide recommendations for maximizing income.

ROOM DIVISION

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK A..........................................................................................................................................1
Covered in PPT.......................................................................................................................1
TASK B...........................................................................................................................................1
4.1 Explanation of revenue/Yield management.....................................................................1
4.2 Analysis of different sales methods to increase profits....................................................2
4.3 Evaluation of usage of prediction and statistical information in room division...............3
4.4 Calculation of performance standards used to check the success of accommodation sales. 4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Hotel is growing industries, main character of hotel industry, as they provides different
kind options at one place, like food, lodging facilities, partying facilities and many more. Room
division is a important part in all hotel industry as because this involves all the management
related products and services which are mainly related to rooms which are made available to the
people who come to stay over their. This report containing details upon hotel industry and based
on Milestone Hotel, London, which established in 1689 (Gallagher and Porzecanski, 2010.). This
hotel is one of the fine example of innovation and entrepreneurship which has started their
business with many facilities like gym, pool, sauna and cab to visit city. This hotel was famous
for their services, management for their guests food and drinks. This report is having focus on
the room divisions and yield management which is essential for each and every hospitality
organisation.
TASK A
Covered in PPT
TASK B
4.1 Explanation of revenue/Yield management.
It is fundamental for lodging business associations to pitch their space to their clients and
charging a correct cost. This is one of the perplexing and aggressive errand to set a value which
can give benefit and income. Along these lines, the refer to business association is required to
utilize different devices and methodologies with a specific end goal to deal with their income and
benefit in a viable way.
Yield administration is another idea, which has increased most extreme significance and in the
cordiality business. Yield administration alludes to the whole umbrella of techniques that can
help in getting most extreme incomes from the accommodation benefits under the given
requirements (Johnson and et. al, 2013). Anticipating the interest for the items and
administrations and after that choosing the correct circulation channels for the lodgings are
imperative parts of income or yield administration of a given Hotel.
A standout amongst the most critical things or exercises that the inns need to consider or
utilize while dealing with their incomes is the use of differential rates and levy structures so as to
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boost the rates of inhabitance in the lodging. The inns can likewise make utilization of various
booking skylines with a specific end goal to expand yield. The incomes of an Hotel would be
expanded when the inhabitance rate is 100% at the best levy structure. Appropriation of
reasonable promoting and deals systems is also essential for expanding the yield administration
of the hostel
Potential average single rate
PASR formula = Earnings at 100% occupancy of single room/ Sold rooms
PASR = 55*3000/180
= 2062 (Approx.)
Potential average Twin rate
PASR formula = Income at 100% Twin tenure/ Sold rooms
PASR = 55*2800/180
= 850 (Approx.)
Potential average Double rate
PASR formula = Earning at 100% Double lease possession/ Number of room sold
PASR = 70*4000/180
= 1555 (Approx.)
Note Per room rate is assumed for single room=3000, Twin room=2800 and Double room 4000.
Pricing : It is connected with the value separation procedure where the referred to business
association can charge diverse rates from its clients for a similar class of rooms. These costs can
be set by the client needs and their conduct and furthermore give marking down rate to propel
booking
Overbooking: This is another methodology which can be utilized at time of overbooking by the
Hotel supervisor in a powerful way. In the pinnacle time the quantity of client is too high which
required to cross out propel booking.
4.2 Analysis of different sales methods to increase profits
In the Hotel business client can be separated into various classes as indicated by their
necessities and conduct. For instance, the referred to speciality unit can partition their rooms into
monetary class, corporate class, extravagant class. It can create greatest income and gainfulness
which is the shared objectives and goals for every single firm. Deals procedures that can be
utilized by lodgings for expanding incomes are talked about below:
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Overbooking Pricing:The lodging can assess its administrations offered as for its immediate
rivals and can decide its costs by contrasting their offered costs and administrations. The
lodgings can likewise make utilization of overbooking strategy on the grounds that the use of no-
show and cancellation rates additionally adds to incomes. It is a circumstance where the
aggregate number of rooms are held in the pinnacle time (Cohort, 2012). In such time, it is
fundamental for Hotel organizations to utilize income administration plots so as to expand
company's deals and income. Hence, this is the duty of Hotel director to investigations
chronicled information and compute greatest overbooking level in the Hotel. With the assistance
of such apparatus they can achieve 100% inhabitance rate which is excessively huge in the
settlement benefit segment. Overbooking hones likewise expands productivity which can
prompts benefit and conquer potential hazard on their business.
Organized Rates: Provision of exceptional arranged rates for occasional or corporate bundles or
for designations of various meetings and occasions can likewise be useful in expanding deals.
Consumer Loyalty programs: Customers get redeemable focuses or unique rebates under these
projects, in this manner expanding rehash deals. systems like utilization of operators, tying up
with carriers and incorporation of additional administrations are likewise great strategies for
expanding incomes.
4.3 Evaluation of usage of prediction and statistical information in room division
Forecasting can be characterized as an equipment of administration which help the
association to make an enterprise to adapt up to the exposure that can be emerge in future. This is
to arrange ahead of time from the information accessible from the past record and in the present
setting. Determining begins with some fundamental impression on the bases of organization's
involvement, judgement and information (Room, 2014. ). This can be for here and now or long
pulling, A portion of the strategies that is being utilized as a part of examining the patterns of
estimating is City strategy, Exponential smoothing, Moving normal, Regression examination etc.
Actual information with regards to exacting importance ca be appreciated as the zone of science
which concentrate on gathering, association, investigation and translation of numeric information
A lodging makes utilization of gauging and factual information for various purposes in their
rooms division. A portion of the basic purposes of use are:
 It can be useful for deciding the change between the real execution and the estimated
execution of the lodging.
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 It helps in conceiving showcasing and deals methodologies relying upon the evaluations
on past and determined request, costs and so on.
 The measurable information additionally displays an unmistakable and compact
perspective of the monetary and operational execution of the hostel.
Measurable examination is a significant factor of information explanation, Examination of both
the perspective that is different real execution and anticipated execution, given above is the
execution pointers for most recent three years:
Performance indicator 2014 2015 2016
Occupancy percentage 70.00% 75.00% 80.00%
ARR €2500 €2800 €3000
ADR €2600 €2700 €3100
From the above introduced information, it is discovered that there is a satisfactory rate of
addition in the execution. In 2014, the inhabitance rate was 70%, in 2015, it was 75% and in
2016, it is recorded as 80% (Salaberry, 2012).
Discussing the project deal and income than given beneath is the table speaking to the whole
information of 2015 and 2016.
Performance base projected actual
sales 192 rooms 180 rooms
revenue €620000 €599000
Later to analyse the above information, it is discovered that the anticipated target can't meet in
looking at the two year. However, there is step by step a decent endeavour of it.
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4.4 Calculation of performance standards used to check the success of accommodation sales
It is utilized as a part of measuring execution of an association. To make long haul
progress, persistent assessment of execution is required so mix-ups can be checked at the
purpose of their period (Session, and Puente, 2011). There are four execution pointer
incorporated into this document which are as per the following:
Occupancy percentage
Occupancy percentage = Units Rented Out/Total Units
= 180/215*100
= 84% (Approx.)
It is one of most vital proportion which uncovers achievement or disappointment of an Hotel. It
indicates how much rooms are filled and what number of are empty in a lodging. As a rule, 75%
is viewed as great execution yet there is no settled rate to choose great or awful execution as a
result of various size and structure of lodging and their arrangements. Out of 215 rooms
accessible in lodging, 180 are possessed which implies inhabitance proportion is approx. 84%
which is great as larger part of the rooms have a client (Davis, 2010.). This will likewise help
organization in increasing solid market position in industry and they will have sound base for
future operation of business.
It is a bit much that a lodging which has more space will acquire high income in light of
the fact that in friendliness industry room have distinctive cost by their area and offices gave.
ARR is ascertained by numerous lodgings so they can discover normal income that they have
earned from aggregate room that is involved by clients (Loughlin, Manson and Foreman, 2013).
Referred to organization has earned 599000 as aggregate incomes from 180 room that are
involved by buyers. This implies they have earned 3327.77 dollar from each room.
Average daily rate
ADR = Room Revenue/Room Sold
= 59000/180
= €3327 (Approx.)
Rates of room changes as per their request and supply on the grounds that in positive season
organization charge more cost for a specific room contrast with off season cost. This rate is
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identified with the cost of room on everyday schedule (Room D.A.L,2015). To ascertain ADR,
referred to firm need to consider add up to income and rooms sold. 599000 is the sum that is
earned by lodging from offering 180 spaces for a specific time frame. This implies they have
earned approx. 3327 dollars for every space for a chose time frame.
Revenue per available room –
RPAR = Average Daily room rate*occupied rate
= 3327*84%
= €2795 (Approx.)
This execution metric help with computing income that can be earned by from empty rooms. To
compute this figure referred to firm need to consider normal day by day room rate and
inhabitance rate. 3327.77 is the approx. normal day by day room rate of Hotel and its inhabitance
rate is 84 which implies that they have 2794.68 as their RAR.
Rooms types Room Rates Number of rooms Beds Occupancy
Single €55 75 75 55
Twin €80 60 120 50 occupied by 2
5 occupied by 1
Double €80 80 160 30 by 2
40 by 1
Total 215 355 180
Room occupancy: Occupied rooms/ Number of rooms * 100.
Room Occupancy: 180/215*100= 80.72%
Sleeper occupancy: Sleepers rooms left/ Number of Beds * 100.
Sleeper occupancy: 260/355*100= 73.20%
From the above analysis it can be concluded that rooms are available in the hotel so that they can
provide to the different guest as per their requirement.
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CONCLUSION
The above present report has been concluded about the room division which assumes a
fundamental part in the income era of a lodging association. The front line services and
housework, both of them critical for the finest working of the inn. In between different
departments correspondence is fundamental to thrive understanding amongst representatives and
prompt the fruitful administration of the inn. A lodging faces numerous operational issues so the
room division chiefs ought to guarantee that the thought of creative arrangements to manage
such issues. For most extreme income era, the inhabitance of the rooms needs to near 100
percent. Logging and utilizing execution markers can assist the lodging association with
maximizing their income in a more organized way.
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REFERENCES
Books and journals
Gallagher, K. and Porzecanski, R., 2010.The dragon in the room: China and the future of Latin
American industrialization. Stanford university press.
Johnson, J.A. and et. al., 2013. Direct measurement of room-temperature nondiffusive thermal
transport over micron distances in a silicon membrane.Physical review letters. 110(2).
p.025901.
Cohort, E., 2012. Ms. Rachel Leiton, Director Division of Energy Employees Occupational
Illness Compensation US Department of Labor 200 Constitution Avenue, NW, Room
C-3321.
Room, D.B.B., 2014. State of Utah DIVISION or WATER QUALITY Wand 1-MW “.Work.
Room, D.A.L., 2015. Division of Education and Human Services.
Session, S.B. and Puente, A.E., 2011. Division 40 Annual Meeting Program Summary.The
Clinical Neuropsychologist. 25(5). pp.850-857.
Salaberry, M.R., The Elephant in the Room: The Hierarchical Division of Spoken and Written
“Grammars”.
Davis, H., 2010. Sci-Tech 2010 Conference Sessions-Sessions Led by or Co-sponsored by the
Sci-Tech Division. Sci-Tech News.64(2). p.13.
Loughlin, K.R., Manson, K. and Foreman, R., 2013. Beth Schwartz and Phyllis Heuttner
Division of Urology. Temperature and Environmental Effects on the Testis. 286. p.183.
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