Hotel Revenue Management Strategies

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This assignment delves into the crucial field of hotel revenue management. It examines various strategies employed by hotels to optimize their revenue streams. Topics covered include demand forecasting techniques, dynamic pricing models, yield management practices, and the impact of discounting on restaurant sales. The assignment emphasizes the importance of understanding guest behavior, market trends, and operational efficiency in driving profitability within the hospitality industry.

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Rooms division operations
management
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1.1) Discuss accommodation and front office services need to be offered and analyse the
roles and responsibilities of the accommodation and reception service staff..............................3
P2) Evaluating the types of services provided by the room division department in range of
accommodation facilities and the legal and statutory requirements............................................4
TASK 2............................................................................................................................................5
P2.1) The role and importance of the front of house section in effective management of
hospitality industry and key feature of planning and management of the front house
department for the new hospitality operations.............................................................................5
2.2 Key Operational Issues affecting the effective management and Business performance of
Front Area Officer:......................................................................................................................6
TASK 3............................................................................................................................................8
3.1 Roles and Responsibilities of design and Development of Property Interiors in the
Hospitality Operations:................................................................................................................8
3.2. Key aspects of planning and management of accommodating service function and the
Operational Issues affecting the effective management of new property:...................................8
TASK 4............................................................................................................................................9
4.1. Revenue yield management activities to maximise occupancy and rooms revenue. Sales
techniques used by the Room Division Staff...............................................................................9
4.2. Importance of forecasting and the use of Statistical Data Analysis in Room Division and
how performance indicators are calculated and measured : .....................................................10
REFERENCES..............................................................................................................................13
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INTRODUCTION
Hospitality industry is providing satisfaction of their guest. They try to provide several
types of services like accommodation, food, or other facilities it is important for customer.
According this file discuss different types of front office services and also analyse the roles and
responsibilities of the accommodation and receptions service (Walker and Walker, 2016). This
report also include different kind of room division management and Hellenic Hotel provide
effective service to their customer and they also focus on their infrastructure means they well
design their hotel and providing all types of legal protection to their staff as well as customers.
TASK 1
P1.1) Discuss accommodation and front office services need to be offered and analyse the roles
and responsibilities of the accommodation and reception service staff
The accommodation in Hellenic Hotel London providing several types of services
including large number of rooms and housing services. This hotel provides entire information
regarding room facilities to their customer. They require different types of rooms along with
their sizes and accommodation spaces is also different. This industry indicators show the division
of different kinds of rooms. Housekeeping and engineering are the two main functions of
adjustment in their hotel main motive to accommodation segment in this company is to provide
the consumer when the can stay feel relax mean giving the best conformable services.
Housekeeping also plays a very important role in this hotel the employees of this department to
monitors the rooms facilitates means they arrangement in effective way and they also make sure
proper hygiene environment providing in their room, they keep check of the stock for kitchen
and other departments. This hotel shows that about two thousand eight hundred beds show the
occupation of the room in their building. They display the rank of hospitality services in
international market and they focus on rising the revenue and providing the information about
front office it play a very important role in hotel organisations. Through front office, every
customer to easy information related this hotel services, information about room services,
facilities. So, front office is very vital for providing entire information of hospitality services.
The roles and responsibilities of accommodation and receptions services is also very
important. Hellenic Hotel also requires the comfortable room services to their customer they
providing all those facilities which is exist in hotel industry like luxury rooms, internet facilities,
qualities foods, mini refrigerators, microwave, or other facilities. They also provide healthy
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environment of the room and maintain the level of rooms. This hotel also raise the standards and
prices of rooms. The role and responsibilities of receptions services is to giving the information
to their consumers. They also help to solve queries of their customers regarding rooms, prices,
facilities or other services. They also provide the information through calls to their clients. This
maintain all records and books of account on time. Moreover, front office staff members perform
their duty in an effective manner plus they take care of consumer balances and also care price
incurred. Reception is also an important area in this hotel. This department works in night , they
also work in effective manner includes cashier, mailing department, bell services, front office.
The main role of front office department is to maintain the satisfaction level of their consumers
and fulfil the need of the clients and make them feel better through their services.
P2) Evaluating the types of services provided by the room division department in range of
accommodation facilities and the legal and statutory requirements.
The main responsibilities of Hellenic hotel accommodation department . This department
perform their duty that the consumer come in their hotel, so they responsible for providing best
room facilities. They also providing rooms in neat and clean services. It is the role of room
division to fulfil the condition of their consumer. The room construct are divided into different
sections like front office and accommodation and reservations.
Front office and accommodation: It is very important department of Hellenic Hotel because
they provide comfortable services to their customers and they also improved the facilities in
according to consumer demand, Means they ready to provide the best qualities facilities in room
services, other in order to their clients demand. They maintain their relationship with customer so
that why they focus on their hospitality services. They manage their work in an effective manner
with skilled managers.
Reservations: This department also plays a very important role in Hellenic Hotel. It is
responsible for reserving the rooms for customer when they come. This section handles the guest
request for propriety of rooms like which kind of room customer want, room booked are for
single person or groups means providing room facilities according to client’s demand. They also
maintain all the details in each person in time to time. They direct link with their front office
department at all times.
The legal requirement are relevant to rooms division dealing Hellenic Hotel focus on
obtaining their revenue from all types if consume and occupied clients like tourist, business man,
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or others. Employees and manager also work in this hotel so they have the responsibilities to the
hotel management to take care of the legal security of their whole staff as well as guest. The ,top
level management is responsible for providing safety to their customer with their luggage as
well. They provide all types services like fire extinguishers, secure locks, security guard,
ambulances and one of the most important CCTV cameras. This hotel also focus on providing
the best room at reasonable rates. The employees are also the liability of this hotel ,they provide
the equality to their worker. They do not discriminated on their age, caste, gender, religion and
disability. This hotel is also responsible for providing their whole staff with health and safety
under Worker Regulations Act 1999,So this the legal frame work ensure that the hotel providing
all the safe facilities to their staff as well as employees it is very helpful for their protection.
division dealing Hellenic Hotel focus on obtaining their revenue from all types if consume and
occupied clients like tourist, business man, or others.
The employees and manager also work in this hotel so they have the responsibilities to
the hotel management to take care of the legal security of their whole staff as well as guest also.
This industry CEO or top level staff is responsible for providing the safety to their customer with
their luggage also. They provide all types of condition like fire extinguishers, secure locks,
security guard, ambulances and one of the most important CCTV cameras. They also focus on
providing the best room with in reasonable rates. The employees also the liability of this hotel
organisations, they provide the equality to their worker (Saadouli , and et.al, 2015) . They do not
discriminated on their age, caste, gender, religion and disability (Walker and Walker, 2016).
This hotel also responsible for provide their whole staff health and safety under worker
regulations act 1999, it is related to the protection of the worker so it is very necessary not for
only this hotel it is important for all hospitality firms. So this the legal frame work ensure that the
hotel providing all the safe facilities to their staff as well as employees it is very helpful for
their protection.
TASK 2
P2.1) The role and importance of the front of house section in effective management of
hospitality industry and key feature of planning and management of the front house
department for the new hospitality operations
The role of the front office in Hellenic Hotel is very important without this department
they can not manage their customer easily so each department of this hotel work in effective
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manner (Ivanov, 2014). The design and layout t are the first impression for this hotel on the guest
so they maintain their hospitality services as well clean and make more attractive it is necessary
for more consumer attract for increase their sales (Walker, 2015). This hotel providing quality
food it is mots important thing and providing best services it is very help for shows the positive
images of this hotel.
Hotel manager responsible for making effective planing and management of the front
house department providing quality of services for new hospitality work. The key aspect of
planing and management of front house given below.
They proper management system all the department functions like managing human resources
or finance, infrastructure or operation they can manage in proper way they also manage their
work on line system all the details, information mention in on line means booking, cancellations
can also managed through online. This hotel use IT tools means they offering their service
through email, text, online to their customer. This hotel main motive to increase their sales as
well as providing qualities services (Ivanov, 2014). It is very important for new hospitality
operations.
Responsibility planning it refers to the duties of employees, shifts, allocating jobs of Hellenic
Hotel they including all the department like front office, enquiry, they make effective plan for
maintain their hospitality service for long term. The management team make their plan how to
manage their work, how to attend their guest, so they implement this aspect, so they assignee
their work in every employee each section.
So this hotel staff work in proper way they manage all the work and providing qualities
services. This hotel also focus on safety of the client as well worker so this is also key feature
this hotel management they provide their customer protection (Saadouli , and et.al, 2015) . They
also include data mining it is related to customer informations and they also providing the details
their hotel services and updating important information for build their relationship with
consumer. The staff of front house also help their guest to solve nay doubt or query regarding
their room facilities or services.
2.2 Key Operational Issues affecting the effective management and Business
performance of Front Area Officer:
Shortage of labour: The hospitality industry runs on manually more than other areas it
requires the highly trained workforce for it operations, further the hotel industry is a
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seasonal industry at the peak timings the need of the labour increases, now it becomes
important for the front office area to manage the shortage of labour for the performance
of the assign task.(Ferguson and Smith, 2014)
Maintenance of the Ambience: The ambience of the hotel attracts more number of
customers than the other factors, the good ambience will leads to the branding of the
hotel. This becomes important for the front office to maintain the ambience of the hotel.
Customer services: The hospitality industry is directly linked to the customers. They
provide the direct services with no other intermediation. So there is need to have the best
customer services. This is the foremost duty of the front desk office to provide on time
services, proper allotment of rooms, reduces the complaints of the customers.
Keeping of hygiene: The operational issue of maintenance of hygiene. The sanitation
should be proper, the rooms should be cleaned and maintained. The people should asked
to leave the room in a good conditions and disposed of the waste and unnecessary thing
which is not in use. The front area officer has to maintain and look that these task should
be done properly.
Linguistic Barriers: Being the part of tourism industry the front area officer come across
the problems of languages. They are not able to understand the native language of other
people and this leads to the problems of communication between the customer and the
hotel staff and the requirements of the customer is not fulfilled.
Building up of impression: The front area officer is in direct contact to it customer the
interaction between the both gives the impression of the hotel and it service to the
customer. So the front area officer should be humbled, patiences and polite when it
comes to the treating of customer.
Management of Manpower: The employees are the strength of every hotel industry there
is need and important to manage the same strength. The maintaining of the manpower of
your organisation is the biggest challenge for the front area officer and if the officer is
unable to manage the staff this will result in incompetent services by them and harm the
organisation.
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TASK 3
3.1 Roles and Responsibilities of design and Development of Property Interiors in the
Hospitality Operations:
The hospitality Industry provides the accommodation services so there is a key role of the
effective property interiors to be maintained. The interiors can be in various forms; lighting
flooring, spacing, furniture, fittings. The customer is affected with the good location and physical
appearances and this motivates him to pursue the service of the hotel. The impression of the
hotel came first from the interiors and the first impression will work to make the customer loyal
towards the hotel. The good interior of the hotel will be able to promote about the hotel itself,
further, as the customers can promote the hotel with there word of mouth and this will bring
along more people to the hotel. Above all the effective interior of the hotel will bring along the
more satisfaction from the customers, they feel the sense of relax and comfort and the satisfied
customer leads to the best assets of the organisation. The hotel industry has established it paces
on the online sector, so the image of the hotel is been posted to the people who are beyond the
geographical boundaries through these online platforms, and the picture with a good interior and
effective design will enable the customer to opt for the hotel, this will make the competitive
advantage over the competitors(Gross and Pullman, 2012)
The finest details of the hotel, it proper structures and sanitised floors will enable
customers to see how well the hotel is been treated and to make rank for the hotels; three star,
five star and seven star. Similarly, the Hellenic Hotel needs to improve it ambience to get more
customers to it places. The hotel has to undergo many changes to improve it quality of floors and
walls, work on for it designs and need to opt for better location so that the hotel can attract
people from higher class to increase it profits base.
3.2. Key aspects of planning and management of accommodating service function
and the Operational Issues affecting the effective management of new
property:
Accommodation service are the key players of the operation of the hotel. They provide a
wide range of services to there customers that include laundering of clothes, ironing, room
services, sanitation, food and beverages and similarly many other service with long list goes on.
There is the need to have a proper planning to execute these service in accordance and need of
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management to control and review these services. The most important planning is of service
management as the development of the service management program will lead to involve of key
areas like front line employees, the guest list, hiring of the well trained and competent people
who leads to growth of the hotel. No accommodation can be successful unless it includes the
involvement of the front line employees who are the one who delivers the services directly to the
customer. The accommodation services need to have the proper procedure to follow for there
staff to avoid any chaos in line, a complete detail of the guest and the formulation of business
plans according to the requirement of those guest. (OSEI and et. al, 2012)
The accommodation services need to have a full information when it is engaged in online
bookings so that it can handle the work more properly. The operational issues of the
accommodation services function is that they are not able to get a well trained staff who have the
knowledge in relation to the location of the city, staff is unknown to the languages of the city
they are unaware of the basic traditions and culture of the area, etc. The hotel has to suffer the
loss because of the lack of tourist and visitors to the city, the tourism industry is declining, this
leads to the burden on the hotel and its operational needs are not meant. The physical condition is
not in favour of business as the harsh climate reduces the chances of the visitors and further the
location of the hotel is at far distance from the basic amenities and transport system, this creates
the customers to switch and opt for the hotel nearer to the transport system. The hotel is suffering
from the investment issues as there is lack of proper investment on the maintenance of the
rooms, sanitation and hygiene in many areas the customers are complaining about the unfiltered
water, contaminated rooms.
The workforce is not well trained to manage task and attain goals on time. There is lack
of effective management of workforce which is hampering the working of the hotel(Qudrat-
Ullah, Seong and Mills, 2012)
TASK 4
4.1. Revenue yield management activities to maximise occupancy and rooms revenue.
Sales techniques used by the Room Division Staff
To gain the best revenue out of the room division the hotel should follow the yield
management. The yield management is a new concept which is calculated the maximum benefits
from time-limited resources. The hotel should adopt this management techniques so that it get to
know how much it will be able to generate from it given resources, it enables the hotel to
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calculate the potential revenue in terms of the sales of various services. The revenue
management studies the consumer behaviour and enables to get the right price of the
product/service, this will help to divide room accordingly and it will be profitable to the hotel if
the rooms are allocated according to the right price and taking in consideration the consumer
satisfaction, this will generate more consumers to the hotel.(Khana and Radzi, 2012)
To increase the Sales the Room Division Staff needs to follow some Sales Techniques;
there are many sales techniques to be followed, but few effective techniques are; to have the
proper personal competent front area staff and front line operators, increase the base of the
facilities to the customers. Attain the customers on time this will bring sense of belongingness
and this will drive satisfaction in them. Always make the customers aware of all the information
about the hotel and it surroundings(Bujisic, Hutchinson and Bilgihan,2014) Provide the
incentives like the discounts to regular visits, free Wi-Fi with hotel rooms, additional discounts
on first bookings, lower price than the competitors, free one night stay on twice visit, cash
discounts in online bookings, refunds on earlier cancellations etc. to lure and maintain the
customer regularly to be the guest of the hotel. Further, providing of the best customer services
to the customers, handling there grievances and complains will bring the loyalty towards the
hotel and it will maintain the Customer Lifetime Value(Pantelidis ed., 2014)
4.2. Importance of forecasting and the use of Statistical Data Analysis in Room Division and
how performance indicators are calculated and measured :
The forecasting helps the management to know that what will be the future conditions,
and what necessary actions can be taken by the management so that it will bring more profits in a
cost effective manner. The Hellenic Hotel should properly analyse it past outcomes, adapt the
techniques, which benefited the hotel so that it can be adopted for future benefits. The statistical
data in the functioning of hotels are important the company comes to know about how many
rooms are occupied, what rate each room has and how much revenue does each room generate in
a year, etc. this help the hotel to make and accommodate room according to it different price
helps the accommodation area to know which room is to be generated to which class of people, if
some rooms are generating good revenue then the hotel will make or build more such rooms. The
total rooms are 300 and 50% rooms are occupied this means there will be more rooms available
in season time(Pan, Chenguang and Song, 2012)
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This will be a profitable for the hotel as they can accommodate more customers and
generate revenue to the business. Further it helps to get to know that there is a need of
developing more rooms to get more people in the seasonal time(Murphy, Semrad and Yost,
2013)
Calculation of Performance Indicators:
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Type of room Total room Charge Bedding Number of
Occupied
Single room 90 $50 90 50 occupied
Twin room 120 $70 240 45 occupied by 2
5 occupied by 1
Double room 90 $70 180 25 occupied by 2
25 occupied by 1
Total room 300 550 150 room let(280
guest are there)
Percentage of room occupancy: 150/300 *100 = 50%
Percentage of sleeper occupancy: 280/550*100 = 50.09%
Rate of Average room: 19200/150 = $128.
The price is relatability lower and it is offered for both twin room and double
room. So it is a better offer to opt for(Hernaiz, 2017)
CONCLUSION
The report concludes that what are the key roles and responsibility that affects the
management of the front area officers i.e. to deal with shortage of labour, management of
manpower, looking for ambiances. The key role played by the interior of the organisation in
attracting more customers and increasing there satisfaction and giving them better experience to
remember. They are important for the organisation in increasing the loyalty towards the hotel.
The planning and management of the accommodation service should be in proper form and it
should meet the requirements of the customers. There are various operational issues faced by the
accommodation team. The requirement of the revenue and yield management and the needs of
various sales techniques to be followed to increase the sales of the organisation. Lastly the report
says the needs of various statistical data and the performance indicators in the hotel management.
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REFERENCES
Books and Journals
Bujisic, M., Hutchinson, J. and Bilgihan, A., 2014. The application of revenue management in
beverage operations. Journal of foodservice business research. 17(4). pp.336-352.
Chatzimichael, K. and Liasidou, S., 2018. A parametric decomposition of hotel-sector
productivity growth. International Journal of Hospitality Management.
Dargahi, S. and Pazhouhanfar, M., 2014. The Role of Hotel Architecture in Tourists Attraction
Development. European Online Journal of Natural and Social Sciences. 3(4 (s). p.276.
Durna, U., Dedeoglu, B. B. and Balikçioglu, S., 2015. The role of servicescape and image
perceptions of customers on behavioral intentions in the hotel industry. International
Journal of Contemporary Hospitality Management. 27(7). pp.1728-1748.
Ferguson, M. and Smith, S., 2014. The changing landscape of hotel revenue management and the
role of the hotel revenue manager. Journal of Revenue and Pricing Management. 13(3).
pp.224-232.
Gross, M. A. and Pullman, M., 2012. Playing their roles: Experiential design concepts applied in
complex services. Journal of Management Inquiry. 21(1). pp.43-59.
Hernaiz, M., 2017. SUSTAINABLE OPERATIONS IN HOTELS: Methodology to benchmark
the water consumption in small and medium-sized hotels in Germany.
Ivanov, S., 2014 .Hotel revenue management: From theory to practice. Zangador.
Khana, A. A. and Radzi, S. M., 2012. Relationship between yield management practices and
hotel performance: A study on 4 and 5 star hotels in Kuala Lumpur. Current Issues in
Hospitality and Tourism: Research and Innovations. p.297.
Laudon, K.C. and Laudon, J.P., 2016. Management information system. Pearson Education India.
Moultrie, J. and Livesey, F., 2014. Measuring design investment in firms: Conceptual
foundations and exploratory UK survey. Research Policy. 43(3). pp.570-587.
Murphy, K., Semrad, K. and Yost, E., 2013. The impact of discounting room rates on in-house
restaurant sales. International Journal of Hospitality & Tourism Administration.
14(1).pp.50-65.
OSEI and et. al, 2012. TRAINING AND ITS IMPACT ON PERFORMANCE OF FIRMS IN THE
HOTEL INDUSTRY (Doctoral dissertation).
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Pan, B., Chenguang Wu, D. and Song, H., 2012. Forecasting hotel room demand using search
engine data. Journal of Hospitality and Tourism Technology. 3(3). pp.196-210.
Pantelidis, I. S. ed., 2014. The Routledge handbook of hospitality management. Routledge.
Qudrat-Ullah, H., Seong, B. S. and Mills, B. L., 2012. Improving high variable-low volume
operations: an exploration into the lean product development. International Journal of
Technology Management, 57(1/2/3), pp.49-70.
Saadouli, H., Jerbi, B., Dammak, A., Masmoudi, L. and Bouaziz, A., 2015. A stochastic
optimization and simulation approach for scheduling operating rooms and recovery beds
in an orthopedic surgery department.Computers & Industrial Engineering,80, pp.72-79.
Walker, J.R. and Walker, J.T., 2016. Introduction to hospitality management. Prentice Hall.
Walker, J.R., 2015.Exploring the Hospitality Industry, 2/e. Pearson Education India.
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