Implementation of Revenue Management and Robot Delivery System in a Hotel

The project report concludes that yield management can guide managers to take effective decisions enhancing profits. The hotel industry focuses on advanced ways to ease organisational tasks. A robot delivery system may help reimburse costs and reduce human labour costs.

Yield Management practice
and recent technological
advances in the rooms industry

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Critical analysis and evaluation of yield management practices in the industry........................1
TASK 2............................................................................................................................................5
Recent technology development within room market place.......................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Yield management is an uncertain pricing plan of action which is based on perceptions,
judgements and determinative behaviour of customers. It is a process which is used to maximise
profits from limited resources and revenues. Mainly it is used in hotel and airline industry in
which companies use it for reservation purpose. Main purpose of this technique is to sell right
thing to to right person at right time and assure that organisation is going to acquire higher
profits in long as well as short term (Boella and Goss-Turner, 2013). Now a days advanced
technology is used by hotel industry to enhance number of customers and provide them
appropriate services. Organisation chosen for this report is Mclntyre hotel which is four star
hotel. Critical analysis of the yield management games, evaluation of strategy and
implementation of latest technologies in hotel industry are discussed under this assignment.
TASK 1
Critical analysis and evaluation of yield management practices in the industry
Mclntyre hotel is a four star hotel and it is willing to analyse the appropriate strategy that
may be used to analyse hotel's occupancy. Situational strategy is used for the analysis in which it
helps the managers to think and plan for the particular situations that may help occur in future
and affect organisational capacity of performing operations. According to this analysis
management games were played in class which is as follows:
Sun Mon Tues Wed Thurs Fri Sat Total
(d)
Rooms Sold 54 38 83 97 100 83 67 522
RoomOccupa
ncy %
54.00% 38.00% 83.00% 97.00% 100.00
%
83.00
%
67.00% 74.50%
Sleepers 96 43 109 128 151 153 116 796
Sleeper
Occupancy %
48.00% 21.50% 54.50% 64.00% 75.50% 76.50
%
58.00% 56.80%
Overbooking
No of rooms
0 0 0 0 0 0 0 0
Overbooking
penalty
£50 per room
0 0 0 0 0 0 0 0
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Rooms Revenue (a) (from Reservations Details sheet) £54310
Other Revenue (b)
(F&B + Conference room hire etc.)
£14910
Total Revenue (a+b) £69220
Commissions paid (e) (from Reservations Details sheet) £1098
Average Room Rate (a/d)
Total rooms revenue /total number of rooms occupied £104
RevPar
Total rooms revenue/total number of rooms available £77.5
Rooms Sales Efficiency (Yield) – see description below
Actual Revenue/Maximum Potential Revenue
55.40%
In first yield management game average room rate was 104 and the maximum room
potential revenues were 55.4%. The analysis is based on week days on Sunday room's occupancy
rate was 54% and sleeper occupancy was 48% and total rooms sold were 54 and sleepers were
96. it has decreased on Monday as the room occupancy rate has declined up to 38% and the
sleeper occupancy has remained 21.5%. On Tuesday room and sleeper occupancy both are
increased as room sold were 83 and the sleepers were 109. As the week end is near the
occupancy rate increased with time. The highest room occupancy was recorded between
Wednesday and Thursday in which 97 and 100 rooms are sold by hotel and sleepers for both the
days are 128 and 151 respectively. On Friday the room occupancy rate was slightly fallen as
compare to Thursday but the sleeper rate has increased on Friday (Cabiddu, Lui and Piccoli,
2013). Sleeper occupancy for the day was 76.5% and the room occupancy rate was 83%. As the
weekend arrives both the rated declined where sleeper occupancy was 58% and the room
occupancy was 67%. Overall occupancy rates for room and sleeper were 74.5% and 56.8%
respectively. There were no overbooking and penalties have been faced by the hotel. Total
revenues for the hotels were 69220 and total commission paid was 1098 for hotel.
The above analysis is based on revenue management theory, main function of this
theory is to predict consumer behaviour at micro as well as macro level. It also guides the
managers to make effective strategies so that higher profits can be acquired by managing
activities of the organisation (Revenue management theory, 2018). This theory guides managers
of Mclntyre hotel to provide appropriate services to its customers at right time so that they get
satisfied and a positive image of the hotel can be established in market (Drucker, 2014). It is
essential for managers of hotel to have sufficient knowledge of price discrimination, conference
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and financial management so that all the operations can be executed effectively. Financial
management is used to manage all the financial resources of the organisation and also guide to
use them appropriately. In conference management managers take advice from it employees so
that revenues can be measured in prior year and impressive decisions and strategies can be
formulated to manage all the expenses.
The second game which is as follows:
Sun Mon Tues Wed Thurs Fri Sat Total
(d)
Rooms Sold 55 55 63 76 45 51 80 425
RoomOccupa
ncy %
55.00% 55.00% 63.00% 76.00% 45.00% 51.00
%
80.00% 60.70%
Sleepers 105 102 110 89 60 53 103
Sleeper
Occupancy %
52.50% 51.00% 55.00% 44.50% 30.00% 26.50
%
51.50%
Overbooking
No of rooms
0 0 0 0 0 0 0 0
Overbooking
penalty
£50 per room
0 0 0 0 0 0 0 0
Rooms Revenue (a) (from Reservations Details sheet) £46740
Other Revenue (b)
(F&B + Conference room hire etc.)
£11130
Total Revenue (a+b) £57870
Commissions paid (e) (from Reservations Details sheet) £1180
Average Room Rate (a/d)
Total rooms revenue /total number of rooms occupied £109.9
RevPar
Total rooms revenue/total number of rooms available £66.77
Rooms Sales Efficiency (Yield) – see description below
Actual Revenue/Maximum Potential Revenue
47.69%
From the above table has been analysed that on Sunday rooms sold were 55 and sleepers
were 105, on Monday rooms sold remain same but the number of sleepers reduced up to 102.
Rate of room occupancy for both the days was 55% and sleeper occupancy rate for Sunday and
Monday were 52.5% and 51% respectively. On Tuesday both the rates increases, rooms sold on
Tuesday were 63 and sleepers were 110 and rate for both are 63% and 55% respectively. On
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Wednesday rooms sold were 76 that are increased as compare to previous days but the number of
sleepers have been decreased up to 44.5% on Thursday and Friday number of sleepers have been
decreased but on Friday number of room have been increased up to 51%. as the week end comes
both the rates increases with unexpected percentage and rooms sold were 80 and number of
sleepers on Saturday were 103. Room and sleeper occupancy for the day were 80% and 51.5%
respectively (Engelberger, 2012).
From both the games it has been analysed that room and sleeper occupancy changes with
the days as week end comas near the rates increases and start to decline with Monday. From the
first game it was analysed on Thursday room occupancy rate reaches to the peak sleeper
occupancy for the day was 75.5%. On Friday sleeper occupancy have reached to its peak and for
the same day room occupancy was 83%. form this analysis the managers may analyse that hotel
can achieve higher revenues on Wednesday, Thursday and Friday as sleepers have also been
increased in the same period. Rooms sales efficiency for the week was 55.4% and Rev par was
77.5. Average room rate for the week was 104 and total revenues including other revenues were
69220.
From the second game it has been identified that on Saturday and Wednesday the hotel
sale higher rooms. 80 rooms are sold on Saturday and 76 rooms were sold on Wednesday.
Sleeper occupancy rate for both the days were 51.5% and 44.5%. Sleeper occupancy rate reaches
to the peek on Tuesday as number of sleepers on the day was 110.
For the hotel the analysis is done with the help of simulation games in which
performance of hotel have been analysed with the help of rooms sold, room occupancy, sleeper
and their occupancy rate. Mclntyre hotel may record higher revenues on week ends and may
attain good profits. Performance of the hotel can be analysed with the help of acquired profits
and its revenues that are recorded with the help of number of customers who visit to the hotel
and book rooms. In first game total revenues for the hotel were 57870 and in second game these
were 69220. Room efficiency yield for first game was 55.4% and for second game it was
47.69%. managers of the the hotel can be analyse organisational performance with the help of
these yields in first game it was high and in second game it has reduced (Law and et.al., 2013).
Strength of first result is that it has recorded higher revenues for the hotel and weakness
for that result is that if customers book more room in week days than hotel do not have sufficient
rooms because all the 100 rooms were booked on Thursday and it is not possible for the hotel to
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provide room to the customers on that day. Strength of second result is that the hotel have
sufficient rooms for the customers if they book more rooms and weakness for the second game is
that revenues are not sufficient for the operations of the hotel.
TASK 2
Recent technology development within room market place
Technology is very dynamic and changing very frequently now days. This is very
important for every industry to adopt new technology and attract the customers. The technology
advancement is very helpful in the taking competitive advantage. By adopting new technology
Mclntyre hotel can overcome its competitors and can gain more market share. This is very
helpful in the simplifying work of staffs. As every department of organisation uses different kind
of technology in order to work effectively and get completed their work within a given time
period. There are several of reasons to adopt new technology such as dynamic environment,
competitors and need arises for advancement of technology (Rogers, 2013). The hospitality
industry is adopting new innovation very promptly to satisfy needs of customers. This assist
hotel industry to work efficiently so that competitive advantage can be taken. The digitalization
is adopted by every industry to be sustainable in market for long time period. There are different
technologies system which is implemented and adopted by the business, these are as follows:
Robotic delivery system:
The people are now days replaced by robots. As robots are new revolution in the market,
they are trained in well manner to perform various kind of activities. Robots are used by different
industry to perform their activities. For example in manufacturing industry these are used for
carrying out raw material within factory from one place to another place. So this is how they are
making people life more easier. This is most popular in hotel industry as this is service industry
and organisation wants to deliver best services to its customers. So Mclntyre hotel can use this
robotic delivery system to deliver food and other services to guest. Priorly, these kind of services
were performed by waiters and other house keeping staff. But after digitalization now robot has
taken place and performing all these activities. These robots are very helpful for employees as it
allows staff to more interact with customers and to be more presentable to guest by reducing
several time consuming task (Zhang and et.al., 2015Z). There are different benefits for hotel
industry of these robot technology. These robots are not only making work simple for the
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employees only but also this gives customers a seamless experience. To implement this robot
technology it required huge cost and other resources for organisation. If organisation have not
enough resources than it could be heavy loss for the company to adopting this kind of
technology. The technology is simplifying the works but at same time this is also cutting several
number of employment from industry. The work which is used to done by employees now it is
replaced by robots. So this has huge impact on cutting employment.
Mobiles for keyless entry:
The mobile is completely new evolution in the digitalization market. As mobile is making
people life simple, joyful and some time stressful also. The mobile is very common device which
can be used by a children to an old person. There is no specific age limit regarding use of this
device. This is totally giving a new experience to its users. There are various kinds of benefits of
this device which is availed by the different industry including hospitality and other (Zhu,
Mukhopadhyay and Kurata, 2012). This may help the Hotel to improve its quality of services
and also enhance its profits by increasing its sales. All the purposes of the hotel can be acquired
with the help of new and innovative techniques as all the customers are becoming technology
friendly. This help to save the time of customers and also the hotel staff.
Both the above mentioned technologies can be used by Mclntyre hotel so that all the
organisational goals can be achieved. Delivery system can be improved. with the help of robots
and it will save the time of activities that are performed in high time will be completed in less
time with the help of robots. Mobile key system will help to enhance safety in the hotels.
CONCLUSION
From the above project report it has been concluded that yield management can guide the
managers of an organisation to take effective decisions that may help to enhance profits.
Technologies changes with time and new technologies are launching in market. In hotel industry
advanced ways are used to get an ease in the organisational tasks. This sector is mainly focused
with robot delivery system where they may reimburse all their cost in a specific time period and
it may also help to reduce costs of human beings that are faced by organisation to provide them
training and salaries.
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REFERENCES
Books and Journals:
Boella, M. and Goss-Turner, S., 2013. Human resource management in the hospitality industry:
A guide to best practice. Routledge.
Cabiddu, F., Lui, T. W. and Piccoli, G., 2013. Managing value co-creation in the tourism
industry. Annals of Tourism Research. 42. pp.86-107.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Engelberger, J. F., 2012. Robotics in practice: management and applications of industrial
robots. Springer Science & Business Media.
Law, R. and et.al., 2013. Progress and development of information technology in the hospitality
industry: Evidence from Cornell Hospitality Quarterly. Cornell Hospitality Quarterly.
54(1). pp.10-24.
Rogers, T., 2013. Conferences and conventions 3rd edition: A Global Industry. Routledge.
Zhang, X. and et.al., 2015. Managing nitrogen for sustainable development. Nature. 528(7580).
p.51.
Zhu, X., Mukhopadhyay, S. K. and Kurata, H., 2012. A review of RFID technology and its
managerial applications in different industries. Journal of Engineering and Technology
Management. 29(1). pp.152-167.
Online
Revenue management theory. 2018. [Online]. Available through:
<https://www.customer-alliance.com/en/articles/hotel_revenue_management_1/>
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