Hotel Performance Indicators Calculation

This assignment involves calculating and analyzing hotel performance indicators such as average daily room rate (ARR) and occupancy percentage. The report uses a formula to calculate ARR and provides an example calculation. It also explains the importance of these metrics in measuring accommodation sales success. The assignment concludes by emphasizing the need for hotels to focus on customer needs, interior design, staff management, and providing clean spaces to enhance guest satisfaction.

ROOMS DIVISION OPERATIONS
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Accommodation and front office services .................................................................................1
Role and responsibilities of range of accommodation and reception service staff.....................1
Legal and statutory requirements................................................................................................2
Services provided by the rooms division....................................................................................2
TASK 2............................................................................................................................................2
2.1 Importance of front of house area.........................................................................................2
2.2 key aspects of planning and management of the front of house area....................................3
2.3 Key operational issues...........................................................................................................3
TASK 3............................................................................................................................................4
3.1 Importance of property interiors and design.........................................................................4
3.2 Critical aspects of planning and management of the accommodation service function.......4
3.3 Key operational issues affecting the effective management and business performance.......4
TASK 4............................................................................................................................................5
4.1 Yield management activities.................................................................................................5
4.2 Sales techniques that rooms division staff can use to promote and maximise revenue........5
4.3 Purpose and use of forecasting and statistical data...............................................................5
4.4 Calculation of rooms division performance indicators.........................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Hospitality industry is the highest revenue generated sector that contributes well in
economic development of nation. The present study will discuss different types of front office
services and accommodation facilities that are provided by hotel. It will explain responsibilities
of staff members. Furthermore, report will define importance of front of house area.
TASK 1
1.1 Accommodation and front office services
Accommodation:
Accommodation facilities that are provided by clientele hotel to its customers are as
described: Good accommodation involves diversity in available rooms to guest, proper space etc.
Clientele hotel provides well designed rooms to the guests so that they feel conformable in the
hotel (Lee, 2016). Furthermore, all its rooms have adequate size and space sop that no consumers
feel restricted. As much as company offers accommodation to clients then it will be able to
generate more revenues. Apart from range of rooms clientele hotel provides housekeeping,
administrative service to its guests. It takes cares of laundry, maintenance so that guests feel
happy in the hotel.
Front office:
Front office services of clientele hotel are as: Front office services of clientele hotel are
room allocation, keeping records of guests, bell service, cashier, auditor etc. All these front
office services are provided by clientele hotel to its valuable customers.
1.2 Role and responsibilities of range of accommodation and reception service staff
In the clientele hotel there are various departments such as front office, marketing ,
administration etc (Ivanov, 2014). All these department's employees have to perform different
duties. Responsibility of accommodation and reception staff members are as following:
Reservation, Guest incurs charges, Rooming for guests, Checkout confirmation etc.
 Front office manager of Front office is responsible to keeper records of cash inflow and
outflow. Individual has to look at the bill paid by guests.
 Reception staff is responsible to make register for new arrivals and guest those who are
checking-out from hotel.
 Housekeepers are responsible to manage rooms and clean it.
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1.3 Legal and statutory requirements
It is very important for the hotel that to follow legal and statutory requirements in room
division operations. Clientele hotel pays attention on this aspect thus, cited firm take care of
security (Pace, 2016). It provides proper security to guests for their luggage. Company has make
contract with the security agencies those which take care of customers security concerns. In the
Front office there is enough space for entertainment as well. Company has fulfilled all legal
requirements at the time of registration of hotel. Clientele hotel Does not leak any data to third
party, it keeps protected the confidential details of guests.
1.4 Services provided by the rooms division
Clientele hotel provides wide range of services to its valuable consumers. It offers then
travelling facilities, food and shelter services etc. It provides low to high range services to
consumers as per their requirements (Davis and et.al, 2018). If guest demands for additional
security then company charges extra amount and provide them additional security services. It
offers luxury rooms, double rooms and family rooms to consumers. If any consumer come to the
hotel with family then it offers special discounts to them. Whenever college group come to the
Clientele hotel then cited firm make them available 6 sitter rooms at lower cost. These are large
size rooms in which 5-7 persons can easily stay. Furthermore, other services of cited firm are
spa, beauty parlours, health services, gym etc (Hu and Liang, 2016).
TASK 2
2.1 Importance of front of house area
Front office department is the area that impacts on the mind of clients, if one customer is
getting satisfactory response at front office desk then they make plan in the future to come again
to this hotel. Thus, it is very important that Clientele hotel makes its front house areas well
managed. Interior and exterior needs to be attractive, it should be clean and staff needs to behave
well with guests (Secchi and et.al, 2016). Each front office employees will get different duties:
 Reservation team will book rooms of guests over phone or email.
 Receptionist will be responsible to not arrival and check out timing of guests with full
details.
 Customer service team will communicate with customers through telephone and emails
and will confirm them their booking details.
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All these services will be beneficial for the Clientele hotel in enhancing satisfaction level
of consumers. By this way they will give positive reviews to others as well. This is important in
raising revenues of the hotel. As front house area of Clientele hotel is performing well thus, in
the year 2015 profit of hotel has been increased by 10% (Lee, 2015).
2.2 key aspects of planning and management of the front of house area
With the changing demand it is essential for Clientele hotel to make changes in its front
house areas and make it modernize. It is possible through effective planning and management.
Key aspects of planning and management of front house area in Clientele hotel are as following:
 Property management system: Cited firm has many departments such as finance,
operation, marketing, human resource etc (Zha and et.al, 2015). All these things can be
managed by using advance information technologies. Effective management can be
helpful in raising quality of services.
 Reservation and room management: Booking and cancellation needs to be managed
through IT platforms and information needs to be circulated on time to consumers.
 Guest account management: It is essential key aspect of planning and management in
which Clientele hotel has to manage records of guest when they arrival, their checkout
time and their all necessary details (Tribus, 2015).
 Hospitality standards reflects that hotel needs to provide amenities, gaming zone,
conference hall to consumers. Cited firm should manage these thongs in workplace
effectively so that all guests can feel happy.
2.3 Key operational issues
There are various issues that can impact on effective management and business
performance of Clientele hotel to great extent. Designing, cleanliness, food quality and other
services are taken into consideration by the guest. Any fault in cleanliness and poor environment
can affect brand image of the firm. Mouth publicity impacts a lot on the image of the company,
if people are giving negative reviews about hotel then it will spoil its image. For example
unclean toilet can decrease trust of users and can create bad impression in the mind of customers.
Furthermore, if front office staff members are not performing their duties well and not
communicating with guest properly then it will decrease trust of them dn they will never plan to
come to this place again. Such type of issues can impact on brand image and profitability of the
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hotel greatly (Formula to Calculate Average Room Rate (ARR) | Average Daily Rate (ADR),
2017).
TASK 3
3.1 Importance of property interiors and design
Clientele hotel is the popular hotel that concentrates on needs of consumers and provide
them services accordingly. Company have made design in such manner so that it looks attractive
and gorgeously. Decision of interior and designing need to be taken after market research. Some
times interior of the building do not like by consumers buy company still implement it for
business promotions. Interior and designing make the person feel refreshing like a new home and
they like to spend their time here (Lee, 2016). By this way they make choice to come to this
place again. Hotel always takes feedback from consumers and as per their choice they have to re-
decorate their hotel building. Correct colour and attractive interior help the hotel in attracting
new consumers and making them feel happy and refreshing.
3.2 Critical aspects of planning and management of the accommodation service function
There are various aspects of planning and management of accommodation service
functions. These are explained as below:
 Spacious room: It is essential for Clientele hotel that to provide clear space in room to
guests. If consumers are getting good environment in hotel then they will stay in
organization but if they find narrow rooms then they may feel uncomfortable.
 Cleaning services: It is another critical aspect that need to be taken into consideration.
Clientele hotel should clean its space, rooms, toils so that consumers feel refreshing.
 Well decoration: It is another critical aspect, proper infrastructure, good interior can
enhance beauty of the hotel (Ivanov, 2014).
 Building regulation: Company needs to follow all legal requirements in order to run
business in effective manner.
 Quality and experience of staff: Employees need to provide quality services to customers
and have to make them feel comfortable (Secchi and et.al, 2016). If they do not behave
well with them then it may decrease interest of them and they may leave hotel.
3.3 Key operational issues affecting the effective management and business performance
There are various issue that can affect effective management and business performance of
Clientele hotel. These are as following:
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 Physical condition of hotel needs to be good otherwise people will not take much interest
in coming to the hotel.
 Staff capabilities and behaviour: If employees are not providing them quality services
then it will decrease their satisfaction level ad they will spread negative publicity of the
firm (Hu and Liang, 2016).
TASK 4
4.1 Yield management activities
One of the great way to enhance revenue of hotel is to sell rooms at higher prices. As
cited firm provide luxurious services and all its consumers are high income class thus, it can sell
its rooms at high prices in order to raise profit. Furthermore, charges on cancellation of booking
can be another way to enhance revenues. In addition, selling rooms as per the profile of
consumers can help the cited firm in raising profit (Zha and et.al, 2015).
4.2 Sales techniques that rooms division staff can use to promote and maximise revenue
Clientele hotel can adopt various sales techniques in order to promote business and
maximize its revenues. Company can implements promotional activities. For example in public
occasion it can decorate its hotel and can give additional discounts to consumers. Furthermore,
attractive package system can attract more consumers towards the hotel. Furthermore, use of cost
leadership technique is another good sales technique (Tribus, 2015). Main consumers of
Clientele hotel are foreigner and high class people thus, entity can offer them best services
without concerning them regarding price. Cited firm can make connection with travel agencies.
By this way it will be able to target more customers and will be able to enhance its sales
revenues.
4.3 Purpose and use of forecasting and statistical data
Statistical data and forecasting help the firm in making changes in workplace so that
necessary improvements can be make in organization. By looking at the statistical data and past
records it can be identified that Clientele hotel is performing well in the market and its sales
revenues are increasing every year. Forecasting supports in identifying the demand of guests. By
this way hotel can make modification in its existing strategy and can improve its working
performance (Davis and et.al, 2018). By this way entity can provide more satisfactory services to
clients as per their requirements and can enhance their trust as well. The main purpose of using
these tools is to find out issues in business and implement strategy to resolve these problems.
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4.4 Calculation of rooms division performance indicators
Average daily room rate
It is the technique that help in analysing that whether company is able to recover cost of
room or not (Formula to Calculate Average Room Rate (ARR) | Average Daily Rate (ADR),
2017).
=Total rooms revenues/ total occupied rooms
=25000/250
=100
Occupancy percentage
Clientele hotel provides wide range of rooms to guest: single, double, multiple etc. If
multiple rooms are occupied in high amount then company can be able to generate more profit.
=260-180/140
=0.5714
All these performance indicators are used to measure success of accommodation sales of
the hotel. From the calculated data it is identified that Clientele hotel is performing well and able
to generate more revenues.
CONCLUSION
From the above report it can be concluded that hotel always concentrate on needs of
consumer and accordingly it should provide them products and services. It is essential to
concentrate on interior and designing so that good impression can be made on consumers. Staff
members have to deal with clients well and have to provide them clean and clear space. This is
the way through which hotel can enhance satisfaction level of guests n
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REFERENCES
Books and Journals
Davis, B. and et.al., 2018. Food and beverage management. Routledge.
Hu, J. L. and Liang, H. L., 2016. Operating Efficiency of International Tourist Hotels in Taiwan
by Taking Into Account Congestion. International Journal of Hospitality & Tourism
Administration. 17(3). pp.223-242.
Ivanov, S., 2014. Hotel revenue management: From theory to practice. Zangador.
Lee, S. H., 2016. How hotel managers decide to discount room rates: A conjoint analysis.
International Journal of Hospitality Management. 52. pp.68-77.
Lee, S. K., 2015. Quality differentiation and conditional spatial price competition among hotels.
Tourism Management. 46. pp.114-122.
Pace, L. A., 2016. How do tourism firms innovate for sustainable energy consumption? A
capabilities perspective on the adoption of energy efficiency in tourism accommodation
establishments. Journal of Cleaner Production. 111. pp.409-420.
Secchi, E. and et.al., 2016. The role of service improvisation in improving hotel customer
satisfaction.
Tribus, M., 2015. The germ theory of management. Проблемы управления в социальных
системах. 8(12).
Zha, Y. and et.al., 2015. Service supply chain coordination with platform effort-induced demand.
Annals of Operations Research. 235(1). pp.785-806.
Online
Formula to Calculate Average Room Rate (ARR) | Average Daily Rate (ADR). 2017. [Online].
Available through <https://setupmyhotel.com/train-my-hotel-staff/front-office-training/
534-fo-formula-adr-arr.html>
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