Revenue Management Strategies in Hospitality

This assignment involves a comprehensive analysis of revenue management strategies in the hospitality industry, drawing insights from twelve academic papers and one patent. The research spans topics such as demand forecasting (Pang et al., 2015), environmental attitudes impacting hotel companies' management (Park et al., 2014), guest satisfaction measurement (Prasad et al., 2014), setting recommendation for revenue management systems (Quilichini et al., 2015), market approach for developing revenue strategies (Sigala, 2015), and more. Additionally, it explores the pros and cons of revenue management (2015) and provides an overview of yield management systems (2016). The assignment aims to evaluate and synthesize these findings to propose practical revenue management strategies for hospitality businesses.

Rooms Division Operations
Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................2
(A) Evaluating variety of services which are provided by rooms divisions in Hilton Hotel. 2
(B) Reviewing roles and responsibilities of accommodation and reception staff..................3
(C) Analysing key aspects of legislation as well as regulatory requirements........................4
TASK 2............................................................................................................................................7
(A) Reviewing significance of front of house area and accommodation service in order to
manage business of Hilton Hotel effectively..........................................................................7
(B) Discuss the key aspects of planning and management of the front of house area for a given
hospitality operation...............................................................................................................8
(C) Critically evaluate operational issues affecting the effective management and business
performance of the front of house area and the accommodation service...............................9
TASK 4..........................................................................................................................................10
(A) Discuss revenue management........................................................................................10
(B) Sales techniques used to promote and maximize revenue for organization...................12
(C) An evaluation of the usage of forecasting and statistical data in the room division......13
(D) Describe with the help of calculation of performance indicators used to measure the
success of accommodation sales..........................................................................................15
CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................19

INTRODUCTION
The hotel industry is vibrant industry in making stable the economic growth of the
country. It attracts several consumers so that they are enhanced with the exotic and leisurely
hotels' scenario which mesmerise their experience in effectively manner. This report deals with
Hilton hotel which is market leader by supplying quality services to the customer worldwide
attaining the consumers expectations efficiently. The hotel has to be very effectual in
accommodating the guests so that they may be loyal to the concern brand in that way by which
their satisfaction is enhanced in the best possible way by the organisation in effective manner.
Consumers are enhanced by the facilities the organisation provides to them.
For providing quality services, organisation needs to be conveyed to accommodation
department and front office department to be effective in their assigned tasks so that they may be
able to provide great customer experience. Rooms division is made up of these two departments.
This provided by a dedicated team who aims to cater the needs of the guests in better way. This
enhances the customers in better way. The agents of the hotel needs to be well effective in
making consumers to choice the hotel which suits their demands and requirements. As such, firm
provides everlasting and delightful experience to the customers. The organisation need to be
efficient in achieving objectives of it by making available al the facilities which are required by
the customer analysing their demands and needs and wants to total extent. This is make sure that
organisation is providing facilities at competitive prices. The organisation is required to deliver
the services to the customers of standard quality. This ensures that organisation is concerned
about the health of the customers (Afeche, 2013). The foods and beverages which are supplied
must be of standard quality. The organisation is under a duty to not to leak the information of its
employees so that privacy and security is maintained. For this several acts are enacted by the
government to make the safety and health of customers and of employees to be the first priority
by the organisation. As such, organisation is able to provide quality of services to the customers
by enhancing their level of satisfaction.
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TASK 1
(A) Evaluating variety of services which are provided by rooms divisions in Hilton Hotel
There are variety of the room services provided by the hospitality businesses. It ranges
from arrival of the guests (customer) to its departure. Hilton hotel is taken with reference to
rooms divisions. The services provided by the hospitality business includes:
Booking/ reservation of rooms:
The rooms are the major product of the Hospitality Businesses. It can be booked either
manually, over a phone call or through the means of websites either of the hotel or the trip
manager.
Welcoming of Customer by Front office Department:
Once the room is been booked by the customer, he visits the hotel & is welcomed by the
staff or the front office department of the hotel. The front office department plays an important
role in maintaining the quality of the services as well as gaining the goodwill of the customers.
Hilton hotel tries to be effective in its accomplishing of tasks. An efficient & friendly front office
department will help in gaining the customers trust & leads to customer satisfaction (Akan, Ata
and Dana, 2015).
Front office or reception has the job to not only welcoming the guests, taking their
details, & providing with the accommodation facilities but also to listen & try to solve the
queries & issues of the customer of the office. They will also take the customers' feedback & will
further send it for analysis so that the hospitality services of the hotel can be made better.
The staff or the executives of the front office desk has to be highly efficient as well as,
well coordinated with the services of the hotel. There must be no loopholes that may cause the
failure of the structure of the hospitality business.
Accommodation & other facilities:
Once the customer is welcomed by the front office department, he/she is sent with hotel
official for the allotment of the accommodation. The Accommodation or the rooms are the core
product of the hospitality industry. So it has to be in priority of the hotel to provide its customers
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with the best quality of accommodations & services so that customer gets comfortable &
satisfied.
Apart from this, accommodation facility not only include rooms or suites but also with
the good room services. A good room service is the proof for the customer that the
accommodation facility provided by the hotel will be of the utmost quality. Room services
include catering food in room, lighting, plumbing etc. There must be no denial or delay in the
room services. As failing to which, may cause a decrease in customers goodwill & satisfaction as
well as hotel's brand value (Board and Skrzypacz, 2016).
The staff looking after the accommodation has to be highly efficient & should be friendly with
the customer.
Food & Catering:
Food is an important factor which decide the quality of services provided by the hotel. In
hospitality business, food is one of the core factor that makes a hotel, a quality brand. Good food
is the guaranty of good hospitality services.
Other Services:
The other services provided by the hospitality business, like swimming pools, bar,
restaurant, spa etc. act as the perks in accommodation of the customer. Also, it helps to maintain
a quality standard of the services. It requires the different forms of rooms along with their sizes
and accommodation spaces. The role of the hospitality service is to bring out the level of
different rooms.
Accommodation department is responsible for managing accommodation arrangements and to
monitor health and safety in the hotel. While, front office deals with supervision of these
activities whether achieved or not. The main comparison between them is that they accommodate
each other nicely to provide effective services.
Front office has the role to maintain customer database in timely manner. Moreover, to monitor
occupancy status from time to time. Also, to arrange for providing value added services to
customers.
Comparison of Marriott Hotel with Premium Inn Hotel
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Marriott Hotel is highly adhered to customer suggestions and advices and as such,
customer satisfaction is attained in the hotel. Premium Inn Hotel has diversified portfolio and has
opened more than 750 hotels in UK. However, it needs to follow customer advices so that it may
earn more revenue just like Marriott Hotel.
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(B) Reviewing roles and responsibilities of accommodation and reception staff
Roles of accommodation facilities of hospitality businesses:
 Accommodation plays a very important role in gaining the customers trust & a brand
image for a hotel business.
 A good accommodation facility will help in achieving the goal of customer satisfaction.
While a normal or not so good service will make a negative impact in the mind of
customer.
Responsibilities of accommodation facilities of hospitality businesses:
 If the room is been reserved, Accommodations should be made prior the arrival of the
customer as per his requirements (han, Yueng Chan and Li, 2013). Even if the room is
not booked, basic arrangements should be made by the hotel authority to comfort the
customer.
 Any issue faced by the customer regarding any part of his accommodations should be
sorted out as quickly as possible. Hilton Hotel makes sure that no delay to service is
made as it will have an adverse effect on the customers' satisfaction & hotel's goodwill.
The provision of the toilets and appliances such as microwave oven and a mini
refrigerator shall be provided into the room
Roles of Reception staff of hospitality businesses:
 Reception staff or the Front office department is the first thing that a customer encounters
when he enters a hotel. The responsibilities of Reception Service is to provide the
information to the customers
 Reception desk manages the task of checking in & checking out of customers, taking
customers details for booking up the accommodations, welcoming the guests, listening to
the issues occurred, if any from the guests & managing the services.
Responsibilities of Reception Staff of hospitality businesses:
 The reception desk or the front office department is responsible for smooth functioning of
the services provided by the Hotel.
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 Any issue or query, related to customers accommodations or any other topic, raised by
the guest (customer), should be looked after & resolved as soon as possible. Hilton hotel
can have an edge over its competitor which is Marriott hotel. This will not only help in
making services better but also helps in maintaining the quality standard & goodwill of
the hotel.
 Also, reservations or other services, that are included in the accommodations & is
provided by the hotel management is partially looked after by the front office department.
Throughout the stay of the customer, front office department or reception desk act as an
intermediate between hotel authorities & the Customer (Chang and Ma, 2015).
Supervisor is required to make constant supervision to the accommodating staff so that
customers' privacy may be maintain who avails room facilities.
Receptionists are required to main data entry in effective way so that information regarding
guests may be made.
Accommodating staff is required to maintain cleanliness and upheld quality standards so that
guests may be satisfied with the services. Moreover, also ensures that budgets are effectively
controlled. On the other hand, reception staff is responsible for receiving incoming calls,
distribution of important mails, requisition of supplies and related clerical roles as well.
Housekeeper responsibility is to maintain cleanliness in rooms so that guests may be satisfied
with the services.
Housekeepers' role is to monitor and organise work as per the schedule such as list of
room status, arrivals and departures of guests. Housekeeper supervisors are responsible to ensure
that cleanliness is being done by housekeepers and if not take corrective actions. Moreover,
immediately respond to queries of customers.
(C) Analysing key aspects of legislation as well as regulatory requirements
Legal & regulatory factors are important for the formation & functioning of the room
services or room division operations. It includes some set of rules & regulations which are to be
followed & actions conducted that ensures the smooth functioning of the Accommodation &
room services.
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 There must be some standardization & sets of rules to maintain the customers/guests
from unfair & unlawful practices.
 Daily maintenance of the accommodation( including rooms or the area provided by hotel
authority). It consists of regular cleaning of rooms/areas, supply of drinking water,
cleaning of bed sheets & other stuffs in the room (Felicen and et,al ,2014). It shows the
good management by the hotel authority & leaves a good impression on the customer.
Also, it is an assurance of meeting up the quality standards.
 Safety of the customer as well as his belongings is also a key issue which is to be looked
after by the hotel management. If there is some hazardous substance available in hotel, it
is the responsibility of hotel authority to make customers aware about it or place safety
measures.
 Safety boards & warning signs should be placed at the places of danger such as
swimming pools, ponds, fountains to avoid any sort of accidents. Also, the hotel staff
must be skilled to tackle any sort of emergency occurred to avoid any mishaps &
causalities to the customers & ensure their safety.
 Insuring the customers' health & well being & security can also a key responsibility of
the hotel management authority. If in case of emergency, during his stay, if any health
related complication arises, its lies the hotel authority responsibility to provide the
customer with all sort of medical aid required.
 Safeguarding the customers personal information, his privacy, & his goods & belongings
( including luggage) is a sort of legal liability of the hotel authority. Failing to meet the
security standards can have an adverse effect not only on brand image of the hotel but
also cause the loss in customers trust as well as his goodwill.
 Hotel management can provide the guest/customer with safety lockers, deposit rooms or
vaults to keep their belongings.
 The storage of customers luggage is also an important factor for the legal functioning of
the hotel. Hotel authority must ensure to avoid any sort of theft or loss of any belongings
or luggage of the customer.
 Apart from this, among the hotel authorities, there is a contract facility, which involves
the management of legal franchise & standards of the hotel authority. It tends to
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improvement of the management of the company (Fiig, Cholak, Gauchet and Cany,
2015).
 It also includes the role of various franchises & managements that are been involved
directly or indirectly in functioning of the businesses.
 On legal grounds there is a law which leads to the generation of the antitrust law for the
hotel businesses. It includes the depiction of growth of the market share by an hotel &
the improvement in the ranking of a hotel in international market.
 Also, it is important to get the idea of the rise in revenue of a hotel. It requires the use of
accurate data which is required & is enrolled for the introduction of various new
ventures to be included by the hotel business.
 With more addition in the luxuries provided by the hotel to its customers has lead to rise
in revenue of the hotel businesses but it has also increased the legal liability of the hotel
businesses towards its customers.
When an enterprise operating in particular industry then necessary to follow some rules
and regulations at the workplace. Some legislations which followed at the working environment
of Hilton Hotel are stated below: Health and Safety at Work Act 1974: According to this, the company has to provide safe
as well as healthy working environment to employees. It is amended at every workplace
in order to secure health, welfare as well as safety of workforce. If Hilton Hotel not
considers this act then corrective actions taken by court. The Data Protection Act 1998: According to this stated legislation, the Hilton Hotel
needs to protect information which are related to employees. In case, management
discloses personal data of workforce then they can sue upon it. Food safety legislation: Under this, when the selected company of hospitality industry
provides food items to workforce and customers then it should be highly hygienic
(Grunwald, 2014). The reason is unhygienic food items directly create negative impact on
their health system. It is enacted by Food safety Act, 1990.
 The Personal Protective Equipment at Work Regulations 1992: This Act protects user
against safety risks which might occur at workplace. These includes gloves, helmets,
harnesses for their safety.
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 Guest information: It is mandatory to record customer data which visit hotel by data
protection law.
 Licensing: To obtain license is also legal requirement to be adhered by hotel so that it
may run legally. Moreover, casinos and beverages related to alcohol require separate
licence by the law.
 Consumer Law: This is a law which helps to consumers to get protection from the unfair
trade practices of organisation. Hilton hotel should provide guests all the facilities which
are needed by them. This is enacted by Consumer Rights, 2015
 Protective clothing: Protective clothing is required so that workers who are engaged in
electrical and other work should be protected from it. This clothing includes helmets,
googles for their safety. This is initiated by Health and Safety Executive (HSE) of UK.
 Diplomatic privileges: It is the privilege which is provided to foreign diplomats as they
work in other country. It is enacted by Diplomatic Privileges Act, 1964.
 Immigration (Hotel Records) Order 1972: The guests which comes to organisation,
keeper should maintain information of each of them regarding his nationality as well.
TASK 2
(A) Reviewing significance of front of house area and accommodation service in order to
manage business of Hilton Hotel effectively
The present task consists with major two departments of the company or selected hotel
which are like front-of-house and accommodations. These both must be highly attractive and
clean because these are one of the attraction point for each and every enterprise. On the other
side, if interior location of stated both departments are bot attractive then it will directly create
negative impact on customers. Further, importance to such departments are explained below:
Front-of-house area:
Front of the hotel is very important aspect which attracts to huge customers (Heo, 2016). When
the front area of Hilton hotel is highly attractive and proper then it will become beneficial for the
company in different ways. Further, example of front-of-house are stated below:
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 Visual impact: It represents the selected hotel in attractive manner in front of targeted
customers. When font of Hilton Hotel is better, then it creates effectual visual impact and
represents hotel in effective way. It is one of the important thing for any company of
hospitality sector. Design and layout: Apart from this, design of the hotel should be proper and attractive
which comes under exterior decoration. In addition to this, if layout of the hotel will
better, then it will show attractive front among eyes of people. The design and layout is
extremely important as it implies first impression on guests. The lobby should be
designed effectively so that customers' may feel good atmosphere in Hilton hotel.
Lobbies must have a good space so that customers' may enjoy seeking by viewing outside
scenery of the hotel.
 Lighting: Under the front area lighting is another essential part which become one of the
attraction point for every local community. If hotel is decorated with full of lights then
will be considered as unique front of hospitality company.
Accommodation or Housekeeping
Apart from front-of-house area, accommodation is another department of Hilton Hotel which
provides services to the customers. Under this, bedrooms, living area, food products and other
services are included of the hotel. When accommodation of any firm is better and attractive then
people will attract in more numbers. Some illustrations of this department are stated below: Efficient use of space: In the selected company of UK's hospitality industry when space is
available for accommodation in plenty then chosen department will become highly
attractive. On the other side, if efficient and enough space is not there in hotel then
customers will not try to consume such services on consistent basis. Flowers and plants: These both the aspects are one of highly attraction of point in every
hotel. Therefore, when interior is decorated with plants and various kind of flowers then it
will provide fresh environment to customers.
 Fabrics and furnishings: Apart from this, fabrics of sofa set, bedsheets etc. must be
smooth and proper (Huang, Ho and Chiu, 2014). Moreover, when room will be properly
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and highly furnished then customers will attract towards it in order to consume
accommodation services of Hilton Hotel.
 They ensure durability and good airflow in the rooms so that guests may be satisfied.
 Proper airflow need to be maintained so that guests may not be faced with any issues.
Staff rota system in Hilton Hotel
Time Activities
7.00 AM Work
7.10 AM Glass door cleaning
7.20 AM Mop at the entrance
9.00 AM Vaccum on carpets of rooms
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Illustration 1: Booking forecast of arrival list

10.00 AM Breakfast
1.30 PM Lunch break
2.00 PM Cleaning lounge area
4.00 PM Off for the work
(B) Discuss the key aspects of planning and management of the front of house area for a given
hospitality operation
The key aspects are as follows:
1. Use of technology-
Technology is gaining wider pace in hotel industry. Hilton hotel tries its best to use
modern technology to provide better guest experience so that they can be enhanced in most
effective way. This will enhance their satisfaction. Accommodation services are of important
part of the hotel as customer seeks to book it and get a leisurely experience. This requirement of
customer makes company to develop the accommodation services according to the needs and
wants of consumer.
2. Health and safety-
The front office has the responsibility to ensure proper safety to the guests who have
come for spending leisure time in hotel. Guests should be provided with the internal alarms by
which they can inform the front office regarding any mischief activity if had taken place in the
rooms. This will ensure that they are under proper security and safety. Health is also main
concern which is taken care by front office department. Guests can come to front office, if they
find any unhygienic condition the food provided to them by the concern department.
3. Operation department-
Operation department tends to improve the working of the staff in effective manner.
Front office is highly integrated with the operation department. There are huge varieties of
services offered like gym, banquet etc. which require huge amount of accommodation for more
amount of people in the hotel. Operation department manages its department in effective way by
which they can accommodate the guests in easy way (Ivanov, 2014). This in turn help front
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office department as all the accommodations and facilities are managed by the operations team in
effectual manner.
4. POS management-
Most of the hotels are offering POS (Point Of Sales) in their premises. This helps to
collect the revenue from the hotel. It is organized with reports that can be generated instantly and
services offered by the hotel can be categorized. These are a tool for boosting online booking of
hotel. As such, hotels can be highly benefited by it in effective manner. Hilton hotel uses the
POS terminal in its hotel as it is the most trusted tool for making payment by the guests who
arrive in the hotel. As a result, it increases its revenue in effectual manner, and customer
satisfaction is also achieved. Front office maintains the POS terminal for effective sales to
guests.
5. Night audit team-
This team is entrusted with providing some bed and breakfast arrangements in the night
for next morning.
6. Revenue management-
The team is entitled with managing costs so that revenue may be effectively gained and
earned.
(C) Critically evaluate operational issues affecting the effective management and business
performance of the front of house area and the accommodation service
The Hilton Hotel operates its business o a large basis which ensures that it can
accomplish its objectives in a netter and effective way. This is done by creating an environment
by which each department can effectively achieve its targets in synchronized way. As such,
customer satisfaction is maintained to full extent. Accommodation service is affected with the
operational issues relating to finance. This is explained as follows:
1. Financial cost and budget-
The main issue in hotel industry is that of operational costs which are to maintained
effective by the accommodation and front office department. The limited resources in hotel is to
be taken care so that all the funds are fully optimized and utilized by the management in
effective way to ensure delight guest experience (Kim, Im and Hwang, 2015). The Hilton hotel
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has to keep p with the technology and each add on expenses like increasing the WiFi speeds of
the hotel so that guests can check on their mobiles. Also, hotel spend on the renovation of the
hotel so that it can deliver the required comfort to the customers for their enhancement of
experience.
2. Marketing issues-
Accommodation and front office departments are also impacted by the marketing team.
Marketing team is required to promote the Hilton hotel in effective way that can lead to increase
in guests in large number as well as maximizing the revenue from them in effective way which
increases the reputation and brand name of the aforesaid hotel. They are required to make
effective marketing of services to customers so that they are attracted to the hotel for availing the
quality services. The operational issue is related as to how to manage the employees which can
lead to speedy promotion activities to gain guests (Kimes and Wirtz, 2015). This is required to
convey the message to accommodation department so that it can make effectively manage the
consumers.
3. Human resource issues-
Human resource is important issue as right kind of employees must be selected in hotel to
accomplish the assigned tasks to them. This is required so that staff selected can deliver the
quality of services to customers in efficient manner. Staffing skills are required so that they may
achieve the allocated tasks in effective way. But to hire effective staff is operational issue to
management because it is connected with the accommodation and front office efficiency.
TASK 4
(A) Discuss revenue management
The revenue management is the management of organization to sell its products or
services to the right person at the right time at right place with right and competitive packages so
that firm can earn revenue from selling of services and goods to consumers which yields good
quantum of profits to it in effective way.
The three factors which affects revenue management are as follows:
1. Price discrimination-
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Price discrimination means that hotel charges high amount to its customers so that it can
earn revenue from that. Price discrimination helps organization to have efficient sales of it
services to customers so that it may earn extra revenue from those customers. It affects
marketing performance of the hotel. This indicates that hotel are benefited from applying price
discrimination rather than applying single strategy to attain speedy sales of services to
consumers. By applying price discrimination, hotels enhances consumers experience, taking
advantage of customers willingness to pay for it (Kosová and Sertsios, 2016.). Also, it is
benefited by reaching new guests segments and being able to charge higher prices in order to
gain cost advantage.
2. Perish ability of product-
The products offered to guest are some of perishable nature. Perishable products' means
that products looses its value after sometime. This makes product of no use to the hotel. Hilton
hotel tries its best to clear off the stock of perishable products as soon as possible so that it may
not face losses for not usability of the product. As such if products are not used within stipulated
time, it affects the firm revenue in negative way.
3. Inventory Management-
The inventory management is the essence of revenue management in the hotel industry.
Inventory management is required to be effective so that the foods and beverages required to the
guests can be easily forecasted so that products are fully utilized and guests have delighted
experience. Inventory management also let managers to automate the tracking of rooms in
effectively so that revenue is earned by the department in effective way leading to enhanced
consumers experience.
Advantages of revenue management:
1. Revenue management helps to maintain right balance between general managers and revenue
managers having clarity between their responsibilities and duties.
2. Employees are directed towards the goals which are stated by managers to them, leading them
to complete the assigned tasks.
Disadvantages:
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1. Perishable products are an obstacle to revenue management because the goods which are of
perishable nature leads to decease in revenue to the firm.
2. The inventory when is overestimated and received in the storehouse may lead to unnecessary
increase in hotel's operations cost leading to decrease in revenue for organization.
(B) Sales techniques used to promote and maximize revenue for organization
The various techniques used in maximizing revenue are:
1. Market-based pricing-
Hilton hotel needs to be put a price which is market-based. Market-based price means
that company is charging the price from the customers which are charged by their rivals. If rivals
charge less price for the similar product. Then they achieve speedy sales. As such, organization
like Hilton which is giant in hospitality industry needs to charge that price which is charged by
their competitors (Luo, Yang and Law, 2014). If price is charged high for same products then
organization will lose its customer and rivals will gain advantage to maximize their revenue and
effective sales of their products.
2. Tariff Structures-
The organization charges different tariff rates for different services offered to consumers
to deliver quality of services to them and enhancing delightful experience. The gusts are offered
room facility at different price depending ion the size of the room for its facility. Different rooms
are charged by hotel depending on the requirement of the guests. If customer wants ancillary
services, then tariff is charged accordingly to them in availing of services. Each of type of
structure has different consequences to hotel to meet customer demands in effective manner.
This helps to ensure speedy sales to them in effectual manner. Managing the occupancy and
tariff for the hotel, marketing and sales form a big part of it because occupancy would increase
with such act by Hilton hotel.
3. Customer Loyalty Schemes-
The customers experience should be enhanced in a way that it can create customer loyalty
to brand. Hilton hotel initiates priority to customer loyalty because its consumer satisfaction that
is the basis of running the business. Schemes should be given ti customers so that they are
attracted to the hotel leading to increase in revenue. For this, specific market should be
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segmented to apply schemes to them in effectual manner. Offering discounts on regular intervals
also help to make customer loyal to the brand. Discounts can be offered like 10 % on advance
booking is great incentive to firm in maximizing its consumers on large base and as a result, they
can quickly make sales by offering discounts.
4. Agents-
The agents are of utmost importance because they directly deals with the customers in
making decisions about to choose which organization or not depending on the nature of
consumers and his requirements and wants. The agents effectively analyses the needs of the
consumers leading them to make a choice according to their suitability (Massel, Park and
Reichelt, 2017). Hilton hotel also utilizes the agents in making effective sales to organization in
effectual manner which maximizes their revenue needed for operations. Agents helps consumer
to book their hotels for spending quality time with their families and friends. As such, skilled
agents are important to organization for speedy sales to new as well as to prospective consumers.
5. Selling other services-
The other services mean selling of ancillary services to guests of the hotel. Hilton hotel
makes sure that it offers ancillary services to its guests according to his needs so that sales can be
achieved in effectual manner. The ancillary services consist of providing cars ti guests to roam
around to see scenic beauty or any concerts which are conducted by the hotels. This ancillary
services provide good amount of revenue to hotels in effective way.
(C) An evaluation of the usage of forecasting and statistical data in the room division
The forecasting is the ultimate source of anticipating the future performance of the
organization so that it can make its demand according to the anticipation of needs of consumers.
This is useful for the organization so that effective demand can be made and no wastage of
resources is observed by the organization. Hilton hotel also makes certain budget for its effective
functioning. This help to attain specialization in the organization.
The purpose of forecasting is as follows:
1. Maximizes efficiency-
Hotels are fully optimized if effective forecast about future is made. This increases
efficiency of the organization to achieve goals which are stated by it. This helps employees to
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make their work in effective manner so that they may increase their efficient in accomplishing
their assigned work. This helps organization to maintain its efficiency in way which makes
organization more vibrant in achieving goals and by increasing profit margin.
2. Clarity-
The hotel can forecast its efficiency by making decisions which are required for its
effective functioning. This helps team members to be efficient because they know what they
have to accomplish the targets as stated by the organization (Oukil, Channouf and Al-Zaidi,
2016). Thus, it makes clear to all the departments like housekeeping, accommodation and front
office to be determined to make and achieve the desired targets of the organization. This ensures
clarity to employees regarding their achievement of tasks and leads to no duplication of work.
3. Price establishment-
Forecasting is essential because it helps organization to maintain a price in ahead of their
rivals. This makes organization more effective than the rivals as they constantly know about the
strategies of the competitors. Thus making more vibrant than competitors. When price is
forecasted by the Hilton hotel for its different facilities like gym, swimming pool, rooms etc., it
ensures that price is market based and competitive in nature. By applying this strategy, firm is
able to achieve its price stability in effectual manner. This will help organization as well as
consumers to make suitable facilities to be availed by them. This will help organization to ensure
that it achieves customer satisfaction and good quantum of revenue.
Hilton hotel is required to compare its actual performance with the budgeted one. This
will give clarity in making any corrective action if any difference or discrepancy is found in the
organization. Thus, it is efficient for the organization to make effective action regarding its
performance. As, the statistics show that Hilton hotel has managed to increase its inventory by
21.6 % which is remarkable growth by it by competing well with its competitors. It has increased
its inventory and for the first time it has crossed the mark which shows its dedication to serve the
demands and needs of consumers in effective manner.
The historical figures of the hotel is amazing. It is increasing its price so that it may earn
revenue from satisfying the needs and demands of consumers effectively. The price which it
charges currently is more than its rivals. However, it can be justified that current price is correct
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by analyzing the quality of services it offers to its customers. The prices are high but it is
justified by the type of services it provides to its customers. This makes it efficient in eyes of
consumers and consumers despite of high prices are attracted towards the Hilton hotel only
(Pang, Berman and Hu, 2015).
Compilation of operational and financial reports- Hilton hotel is producing god revenue
in increasing its revenue. It has earned capital growth of 6.6 % in 2016. It has crested over
20,000 new hotel jobs which shows that it is financially sound. Revenue which it had earned in
2016 was 11,663 millions in dollars which has increased up to 3.5 % than in 2015. These figures
and facts shows its achievement quite nicely and effectively. It has accomplished several
milestones.
(D) Describe with the help of calculation of performance indicators used to measure the success
of accommodation sales
 The Revenue Per Available Room or Rev par
The revenue per available room means that revenue management balances the demand and price
effectively to create the revenue. Normally, when occupancy falls, price i.e. room rate declines.
The manager tries to maximize both the parameters. Rev par measures this performance. Rev par
measures demand so that revenue can be measured by the manager effectively. It is easy to
compute. However, it measures room income only. It is 47,700 from the analysis of the table
which is good.
 Room occupancy percentage (Bed occupancy)
The room occupancy rate measures how many beds are occupied by the guests. It is usually
measures the economic health of the hotel industry. It reflects both demand and supply. Today,
there is more value in residential units then is observed in luxury hotel units. It measures
consumer demand by number of rooms sold. This information is counted by hotel every night.
Hilton hotel has 83 occupancy rate which shows that it delivers quality of comfort to the
customers and it helps to earn revenue to it in effectual manner.
 Average room rate
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This shows that how many rooms have sold which has generated the revenue for the company. It
helps to measure the effectiveness of the organisation to make the revenue from delivering the
rooms at competitive prices. By such practice, organisation produces more revenue from the
customers by providing them exotic pleasure of services and quality rooms at competitive prices.
The table shows that 533 average rooms are given to consumers by providing luxury to them.
 Average sleeper rate
This measures that how many guests are slept in the hotel on a day. This is required to be
measured so that organization conses to know that how many rooms are left to be provided to the
new guests which arrives at the hotel for staying (Park, Jeong Kim and McCleary., 2014.). This
information is required by the management team so that they can provide the information to
accommodation department to make the arrangements for the new consumers. This will give
organization clarity regarding the rooms avail for sleeping to customers and customers will be
delighted by the comfort provided by the organization. This will enhance the customer
satisfaction and will be loyal to the hotel. This table shows that 73 are occupied by the sleeper.
Hilton hotel located in US has resulted a room breakdown for October
Room type Number of rooms Beds Occupancy
SINGLE
ROOMS £265
75 75 55 occupied
TWIN
ROOMS £380
60 120 50 occupied by two people, 5
occupied by one person
DOUBLE
ROOMS £415
80 160 30 occupied by two people, 40
occupied by one person
TOTAL 215 355 180 rooms let (260 sleepers)
Room occupancy rate
Rooms sold/occupied X 100 = 180 * 100 = 83.72 %
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215
Total rooms available
Room occupancy rate
Sleeper occupancy rate
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Average daily rate
22

Yield percentage rate
CONCLUSION
Hereby it can be concluded that hotel organization need to be effective in meeting the
needs of the customers by making available better facilities at competitive price. The firm should
be able to provide quality services to consumes so that they are mesmerized. Organization need
to cater to the needs of customers so that they are not driven away by the rivals. The prices which
are fixed by the organization should be not high in comparison to that of rivals. Else, consumers
will drive towards them making loss to the organization. The organization should provide quality
services to the consumers. This is possible when accommodation and front office departments
are efficient in their accomplishment of work which is allocated to them. The organization need
to be efficient to make accommodation and front office department effective.
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The synchronization of the departments is required so that organization become vibrant in
making sales effective so that it may earn good amount of revenue by achieving customers
satisfaction in effectual manner. The organization is required to enhance customer satisfaction by
providing quality of services to them at competitive prices. Government has also enacted various
laws to make hygienic conditions in hotel so that standard quality of foods and beverages are
maintained. The acts are Health and Safety at Work Act 1974, Data Protection Act 1998, Food
safety legislation Act. These acts help organization to make effective and apply those in their day
to day operations. The organization provides the facilities to employees as well. The safety act is
made with this objective only. Hence, organization is required to follow the consumers'
requirement so that it may achieve good revenue and delightful experience of the customers.
Feedback table
Client questions Writer changes Page number
1.1 Comparison of businesses Done 3, 4
1.2 roles and responsibilities of
a range of accommodation and
reception services staff
Done 6
1.3 Legal and statutory
requirements
Done 8, 9
2.1 Importance of the front of
house area
Done 10, 11
2.2 key aspects of planning
and management of the front
of house area
Done 12
2.3 key operational issues
affecting the effective
Done 14
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management and business
performance of the front office
area
4.1Revenue/yield management Done 14
4.2 sales techniques that rooms
division staff can use to
promote and maximise
revenue
Done 16
4.3 purpose and use of
forecasting and statistical data
within the rooms division
Done 18
4.4 rooms division
performance indicators to
measure the success of
accommodation sales
Done 23
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