Rooms Division Operations Management at Hilton Hotel: Services, Roles, Legal Regulations, and Yield Management Analysis

This report discusses the services provided by front office and housekeeping departments, roles and responsibilities of the front office and housekeeping department, legal and statutory regulations of Hilton hotel, and critical analysis of yield management or revenue management at Hilton Hotel. It also includes a detailed explanation of the tactics of yield management that revenue manager apply within Hilton hotel to improve the occupancy and average daily room rate.

Room division
operation
management(BJ)

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Explanation of the services provided by front office and housekeeping departments. ..............1
Description of the roles and responsibilities of the front office and house keeping department.
.....................................................................................................................................................2
Describing the legal and statutory regulations of Hilton hotel. .................................................4
Critical analysis of the yield management or revenue management...........................................5
CONCLUSION................................................................................................................................6
REFERENCES ...............................................................................................................................8

INTRODUCTION
Operations management is the the process of improving the business practices for
maximising the efficiency of the enterprise. It includes various functions of management such as
planning, organising and controlling the activities of the enterprise. It assists in increasing the
revenue and reducing the cost of the organisation(Al-Hilo and et.al., 2020). The room division
management operation consist various tasks such as front office, room reservations,
housekeeping responsibilities, concierge division and guest services. This report includes the
services provided by rooms division and role & responsibilities of front office and housekeeping
department. The organisation chosen for this report is Hilton Hotel. It is a global brand of
America. It is founded by Conrad Hilton. It also includes legal and statutory regulations of
Hilton hotel. It encompasses the critical analysis of yield management or revenue management.
There are various elements of yield management. The detailed explanation of the tactics of yield
management that revenue manager apply within Hilton hotel to improve the occupancy and
average daily room rate.
MAIN BODY
Explanation of the services provided by front office and housekeeping departments.
Front office : It is known as the nerve centre of the hotel. This department is customer facing
division, the front office mainly perform function which are having direct contact with clients. It
is located at the foyer and lobby area of the hospital. There are various functions of the front
office such as reservation, guest service, check -in , check out and inquiry. The front desk
supervisor is responsible for the functions of the front office. There are various services
provided by Hilton hotel by its front office department which can be described as given below:
 Guest registration: It includes the information of all the guests for official purposes. In
context of Hilton, there are large number of guest arrived on a daily basis. The front
office department is responsible for several activities such as check-in, assignment of
rooms, welcoming and room rate(Bahnasse and et.al., 2018). It also includes greeting
customers by using a positive affirmation.
 Time management : The manager of front office oversee various functions. There are
various jobs performed in this area. The key role is to note the time taken for each
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activity performed on regular and weekly basis. The priority meeting are conducted by
the mangers on the matters which are to be addressed immediately. The front office
manager suggest various tactics to solve the issue of the overlapping of the tasks to be
performed. One work should be performed at a single time.
Housekeeping departments : It is operational department in the hotel which is takes charge of
the cleanlinesses, maintenance, aesthetic look of the area, comfortable and safe environment. The
functions of housekeeping depends on the category of the hotel(Brée and et.al., 2019). It is
considered as a back office. In context of Hilton, there are various services provided by the
housekeeping department can be defined as given below:
 Room maintenance: There are various broken items and messy environment of the rooms
of hotel. The effective maintenance of the rooms includes its activities such as dusting,
sweeping, vacuum and mopping. There is regular cleaning and deep cleaning. The
regular cleaning is completed in one to three hours whereas deep cleaning includes
moving of the fixture to reduce the spiders.
 Assistant executive housekeeper : there are various departments such as linen or uniform
supervisor, desk control supervisor, floor supervisor, night supervisor, public area
supervisor and horticulturist. The desk control room of Hilton acts as a coordination
between the front office and other departments. The linen room is responsible for issuing
and receiving the current linens(Chen, Chen and Luo, 2019). The laundry section is
responsible for cleaning the fabrics which are used in the Hilton. There are separate room
for the flower which are kept in air conditioned area to keep them afresh.
 Budgetary control: There are several expenses which are related to housekeeping
activities, the manager of the housekeeping department control the expenditure of several
activities. The usage, rate and costs of all items related to inventory must be considered.
Description of the roles and responsibilities of the front office and house keeping department.
Every department has to perform various roles and responsibilities. The front office and
house keeping department perform various functions which can be elaborated as given below:
 Responsibilities of front office department :
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1. Front office manager : The responsibilities of the front office manager is time
management which can improve the efficiency of the managers. There are several time
wasters such as interruptions, lack of objectives, priorities and deadlines(Gao, Yu and
Shiue, 2018). There are various courtesy programmes, work performance records and
vacations etc.
2. Assistant front office manager : It assists in supervising and coordinating the daily
operations of the staff in front and solves internal issues. They take interview and also
recruit applicants.
3. Reservation manager or assistant manager reservation: The role of reservation
manger is to supervise and solve the queries of reservation agents. It keeps computation
of all the reservations and analyse the half yearly report of all the financial statements and
its production activities.
4. Lobby manager : The function of the lobby manger is to coordinate all the departments
for handling of guests. It also attend the meeting of general manager. It also coordinates
with the travel counter, airlines regarding arrival and departure of flights. It also ensures
strength for manpower.
5. Page boy : The main task of page boy is to welcome the guest by garlands and floral
greetings. It helps the guest in using the elevators.
Responsibilities of house keeping department:
1. Executive housekeeper or director of housekeeping : It directly reports to the general
manager, resident manager and room division manager. Its main function is to motivate the
employees and helps to set their efficiency level high. It ensures hygiene and precautions of
safety. It also conducts on the job and off the job training sessions(Islam and et.al., 2019). It also
set the standard operating procedure (SOP) for cleaning and also framing of new strategies for
improving the effectiveness of labour and use of product.
2. Deputy housekeeper : The deputy housekeeper will report to executive housekeeper of Hilton
or director of housekeeping. It takes the responsibility of the cleaning of all guest rooms, public
areas and back of the office areas. It also perform the tasks of making forecasts and prepare
budgets for maintaining operating and capital expenditures.
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3. Floor supervisor or floor housekeepers : The main responsibility of the guest rooms is with
floor keepers(Kondoh and et.al., 2019). There are three or more floors under one supervisor. It
transfers the keys of the different attendants. It also monitor the scanty baggage.
4. Public area supervisor : It reports to the assistant housekeeper. It is responsible for cleaning
of public areas and also makes surety about the arrangement of flowers is done properly or not. It
also takes care of the cleaning of banquet halls and conference room. It must be ready all the
time for various functions.
Describing the legal and statutory regulations of Hilton hotel.
Legal and statutory regulations: The government of each country frame various laws and
regulations which are to be followed by the particular organisations. The statutory requirement is
a requirement which is imposed by the law of the specific country. The laws and policies are to
adhered by every organisation which helps in gaining the confidence among public. In case of
hospitality sector, there are different legal requirement which are to be followed by the hotels. In
context of Hilton hotel, the legal and statutory requirements can be described as given below:
 The board of directors of Hilton hotel has followed business conduct and ethics to
promote the fair and ethical procedures in the hotel. It safeguards the hospitality sector
from the wrong doings. The internal reporting is also done, in case the code of conduct is
violated(Lee and et.al., 2020)(. It also gives surety about the assets, confidential data and
various opportunities.
 The director, officer and employee is under obligation to act with integrity. The integrity
includes honesty and truthfulness in conducting the operations of the enterprise. While
auditing, there should be no provisions used for window dressing. For reducing the
impact of these practices, the accounting standards and policies are used to ensure that
organisation is following all the rules effectively.
 All the employees must ensure that assets of the hotel are used for the business purpose
only.
There are several laws of the Hilton hotel which can be analysed as given below:
 Health and safety work act, 1974: In case of hospitality sector, there are various
substances which are hazardous for the workers and may cause injury to the health of the
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personnel( Mohseni and et.al.,2018). In context of Hilton hotels, it may use cleaning
fluids such as bleach and various equipments for repairing the building.
 Working time regulations, 1998: In every organisation, there are bundle of tasks to be
performed. Each employee require rest breaks and flexible working hours. The busy
environment of hotel reduces the efficiency of the workers. Therefore, the Hilton hotel
must adopt this law to improve the efficiency of the employees.
 Gas safety ( installation and use ) regulations, 1994: In hospitality sector, such as
hotels it require various equipments such as gas, stove and geysers. It is required to boil
the water for various purposes. There can be leakage of gas which would result in
disasters.
 Employer's liability (compulsory insurance) act 1969: there is always possibility of
risk and accidents in the hotels. The vital concept to mitigate the risks of the hospitality
sector is to insure both the parties such as employer and employee. The insurance reduces
the losses occurred due to certainty and uncertainty in the enterprise.
 The trade description act, 1968: This law states that organisations must provide true and
fair view of the hotel facilities and not mislead the public in any way. While conducting
activities of marketing, it ensure that fair view can be shown to the consumers.
Critical analysis of the yield management or revenue management.
Yield management: It is a dynamic pricing strategy which is dependent on the ongoing
market demands. It helps to improve the level of profitability of the organisation. It assists in
earning maximum revenue per available room ( Rev Par).
The different elements of yield management used by Hilton can be elaborated as follows
1. Group bookings : It helps in earning revenue in large volume. In this, the hotels receive
advance payments of sales of two to three months.
2. Transient Or Fit room sales : these rooms are issued to free individual traveller. The
controlling discounts is crucial for earning high revenue and return from hotel
activities(Mori, Knopf and Umegaki, 2018).
3. Food& beverage activity and hotel yield: The activities related to the food and
beverage are generators of revenue in the hotel. Therefore, the coordination and
communication between several departments helps in maximising the sales from all
centres(Waldman, 2018).
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4. Local and area-wide activities and hotel yield: There are various meeting and
conferences held in the hotels which attract large number of people.
5. Special events and hotel yield : for improving the yield of hotels, there are various
functions such as concerts, festivals and sports are conducted. There are various events
such as Hilton bus tour, recruitment open evening etc.
The tactics of yield management to improve the occupancy and average daily room rate can be
elaborated as given below:
The average daily rate (ADR) signifies the revenue earned for an occupied room each day. It can
be calculated by using revenue generated from rooms divided by rooms sold. The average daily
rate of Hilton worldwide inc. hotels starting from the year 2012 to 2021. in the year 2012, it was
computed at 131. 35, it was gradually increasing till 2018 and declines in the year 2019. In the
year 2020, it was analysed at 114.03 and in the year 2021 it was 128.82.
Occupancy rate : It is determined as the ratio of occupied and sum of usable rental space.
The analysts uses rates of occupancy when discussing various sectors rates(Zhang and
et.al.,2019).It has still high ADR and occupancy rates such can be described as given below: in
the year 2018, it was high as compared to the other following years. From the year 2019, it
started declining. The main reason for the same is covid19, which is a global pandemic and
affects each sector badly. But in case of hospitality sector, people reduce the use of external
services. People fear to consume the beverage, food and bedrooms were vacant. The hotels has to
suffer losses which declines the revenue of the Hilton too. In the year 2021, it again starts
increasing because Hilton assures the consumers about the sanitisers services used in the hotels.
CONCLUSION
From the above report, it can be concluded that hospitality sector is a industry which
comprises lodging, food and drink service and event planning etc. There are various departments
in the hotel such as front office and back office. The front office is responsible for rendering
services directly to the customers. The back office perform various functions such as providing
quality services which may not increase the revenue of the organisation directly. Both the
departments, provide numerous services. The specific departments provide their distinct role and
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responsibilities which enhances the efficiency of the Hilton hotel. In every country, there are
different legal procedures which are required to be adopted by the specific industries. There are
various elements of yield management which helps in operations of the hotel.
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