Fairmont Hotels: Managing Accommodation Services Report Analysis

This report provides an overview of managing accommodation services within the hospitality industry, focusing on the Fairmont Hotels and Resorts. It begins with an introduction to accommodation services, highlighting their scale and significance, particularly within the UK. The report then delves into different types of ownership structures, comparing the advantages and disadvantages of sole trader and partnership models, and also explores purchase methods like cash and bank loans. A significant portion of the report addresses grading and classification systems, alongside the use of online review sites, to assess hotel quality. The report also explains the key functions of a front office, including telephone services and key management, and outlines the important roles within the front office department such as reservation of rooms and handing over room keys to the guests. The conclusion emphasizes the importance of understanding accommodation statistics, ownership structures, and front office operations for success in the hospitality sector. References are included for further reading.

Managing
Accommodation
Services

Table of Content
• Introduction
• Scale and size of the accommodation services
• Different types of ownership
• Grading, classification systems and online review sites
• Explanation of functions of front office
• Key roles within the front office department
• Conclusion
• References

Introduction
Accommodation service is a part of hospitality industry where a place
in the form of rooms are given to guests for a prices. The prime
customers are tourists who travel to different states or countries and
have rest in hotels, motels, lodges etc.. The organization chosen in this
report is Fairmont Hotels and Resorts, located at Toronto, Ontario,
Canada.

Scale and size of the accommodation services
UK hospitality industry is a growing industry and contribute to the
GDP in a major way. It creates huge number of employment and
revenue for the government. The graphs shown below describes
statistics of UK hospitality industry in the perspective of world:

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• Performance by hotels in London.

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• Country-wise growth on the basis of rooms.

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• Percentage change in visits from different countries.

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• Overseas visitors to UK.

Different types of ownership
Types of ownership Description Advantage Disadvantage
Sole Trader It is also known as
sole proprietorship
and this is a easy
business arrangement
where single
individual runs and
owns the entire
business.
The main benefit of
being a sole trader is
that be your own boss
as the self employed
sole trade can run
their business as per
their choice (Cakmak and
Isaac, 2012).
The main
disadvantages is that
sole trader have
unlimited liability for
debts as there is no
legal distinction
between private and
business assets.
Partnership It is a formal
arrangement through
two or more parties to
regulate and manage a
business and also
share its profits.
The main advantage
of partnership is that
business is east to
establish and start up
costs are very low.
Apart from this it has
greater borrowing
capacity.
The liability of the
partners for the debts
of business in
unlimited and also
there is a risk of
disagreements among
the partners and
management as well.

Cont...
Purchase Method Advantage Disadvantage
Cash It fulfils the working capital
requirement. It is an easy
arrangement of money and
there is no transaction fees
with cash (Chernikova and et. al.,
2015). It is a huge advantage
that cash minimizes
bookkeeping, which means
less stress and less hassle.
The main disadvantage is that,
it is a higher rate of interest
and more compliances and
checks. It can also increase
the risk at working location
for theft not from employees
but criminal as well.
Bank Loan There are lot of advantages
such as flexibility with bank
loans, cost effectiveness in the
term of interest rates and tax
benefits etc.
Repayment burden and strict
requirement both are
disadvantages of bank loan
which require to follow terms
and conditions in a effective
manner.

Grading, classification systems and online
review sites
Basis Description Example Grading, classification
and online review
Essential These are the services
without which survival is
impossible. Guests look
for these services before
proceeding with bookings
(Costa, 2013). These can be
cheap or expensive
depending on the quality
and goodwill of hotel.
Room, bed, fan/AC,
dressing table, soaps and
cleanser, safety and
security etc.
Essential services
provided by Fairmont
Hotels and Resorts have
been liked by its
customers who have
awarded positive reviews.
Basic Basic services are
common and available to
every types of hotels.
These comprise things that
are provided to each and
every guests without
considering the amount
paid by them.
Comfortable beds,
bathroom, phone, lighting,
food, etc.
These have been named as
high quality services by
the one who have used its
services.

Explanation of functions of front office
Accommodati
on Services
Roles Responsibilities
Front office Telephone It is one of the most essential services. A telephone with
good connection must be installed in the check-in desk
which has connection with all other departments and
rooms so that requests of guests can be fulfilled in a timely
manner.
Printer and
fax machine
These two equipments are useful for printing bills and
other forms which will be stored with hotel. Further, fax
machine facilities easy transfer of papers from one location
to another.
Key room Every room has keys along with spare keys which should
be located in front office only. Further, the board behind
the receptionists should have all the keys hung in there so
that guests can be provided with right key for their room
without any hindrance.