Analyzing Hospitality Operation & Revenue Management at Dorchester

This report provides an analysis of the Dorchester Hotel's hospitality operations and revenue management strategies. It discusses the financial contributions from room capacity, pricing principles, and best practices for profitability. The report evaluates profitability optimization through room capacity inventory and recognizes dynamic growth in the context of technological advancements, including the use of CCTV, digital keys, and automated systems. It also examines the impact of industry codes of conduct, legislations, and best practices on accommodation procedures, emphasizing customer satisfaction through quality maintenance. The Dorchester Hotel's approach to serving both business and tourist customers is highlighted, showcasing its commitment to providing high-quality services and maintaining ethical business standards.

Hospitality Operation and Revenue Management
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Executive Summary
The Dorchester group operates its business all over the world by providing high class services.
The organization welcomes both businessmen and tourists as their guests. The hotel consists of
iconic room, which helps the organization to earn more revenue. The hotel offers quality foods
and room service to customers. The Dorchester holds a glamorous look that is eye-catching for
customers. The main aim of this hotel is to serve quality products to provide satisfaction to
customers. In this report, the innovative strategies of Dorchester have been discussed. This
discussion helps to understand the process how Dorchester earn profit by providing quality
services to customers.
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Table of Contents
Introduction......................................................................................................................................4
Discussion........................................................................................................................................5
Financial contribution from room capacity division...................................................................5
Principles of pricing on room’s product......................................................................................6
Best practices for profitability.....................................................................................................6
Evaluation of the profitability optimization through room capacity inventory...........................7
Recognition of dynamic growth in context of technological advents.........................................7
Impact of industry codes of conduct, legislations and best practices on accommodation
procedures....................................................................................................................................8
Customer satisfaction procedures through maintenance of quality.............................................8
Bibliography..................................................................................................................................11
Appendices....................................................................................................................................12
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Introduction
Being one of the largest groups in hospitality industry, the Dorchester hotel includes several
tactical operations for revenue management and hence, in order to earn revenue, the hotel
industry takes various innovative strategies to provide satisfaction to the customers. This
assignment focuses on the operation system and revenue management of the Dorchester hotel.
Revenue management is a critical part in a hotel industry. The management of Dorchester hotel
implements some innovative revenue management strategies to get success in the hotel industry
of United Kingdom. Revenue management helps the hotels to reduce its overall operation cost.
Dorchester hotel gives emphasis on the requirements of customers and they provide services
according to the needs of customers (Smith, 2017). The Dorchester hotel analyzes their room’s
prices with other hotels and then selects a standard price for their rooms. The hotel uses Ideas
Revenue Optimization to perform the revenue management system successfully and effectively.
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Discussion
Financial contribution from room capacity division
Dorchester is considered as one of the most iconic hotel in the hotel industry of United Kingdom.
The hotel consists of a large room capacity, so that the consumers get their accommodations
according to their needs. This hotel collects its main revenue by serving accommodations to the
customers. Revenue per available room is a performance metric, which is used by the hotel to
calculate the overall revenue (Adiamah et al., 2017). Dorchester hotel has experienced account
department to count daily revenue from the room capacity.
Departments in Dorchester Hotel
The Dorchester group is popular among the people because of its various services. The services
of this hotel chain are discussed as follows:
 Excellent room service
 Child care service
 Restaurants and Bars
 Laundry service
 Transport service
 Spa facility
 Valet car parking service
The revenue is calculated by multiplying the average daily room rate and the occupancy rate. On
the other hand, the revenue is also calculated by dividing the total revenue with the total number
of available rooms. The average room rate of this hotel is £408 per day. Dorchester has designed
different rates for different qualities of rooms. The hotel earns profitable revenue because of its
availability of rooms. Therefore, the hotel provides best quality and takes high prices from the
consumers to achieve large revenue. In the festive seasons, the hotel earns more revenue because
of the availability of consumers. The company runs three hotels in the UK, so that the capacity of
rooms is larger than any other hotels (ARMS, 2017). The organization uses the Ideas Revenue
Management system to experience more efficiencies and accuracy. Therefore, the organization
collects a huge amount of revenue from the room capacity division.
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Principles of pricing on room’s product
The Dorchester hotel implements some policies to fix prices of rooms. The hotel uses some
attractive principles to attract the customers. The organization offers elegant rooms and delicious
foods to the customers. The management of this hotel always gives emphasis on the quality of
products. In order to attract the consumers, the hotel launches a combo offer that is free delicious
breakfast with rooms. Therefore, the customers enjoy the breakfast with their accommodation. It
is an effective step for the hotel to expand the prices of rooms. The hotel provides various
benefits to the consumers and therefore, they are able to increase the price of accommodation.
For example, the guests can get the experience of late night shopping by the help of the staffs of
the Dorchester (Armstrong and Matters, 2017). The hotel has designed the accommodation
according to the needs of different family members. The management of this hotel arranges
baby-sitting to provide satisfaction to the parents. On the other hand, the hotel offers comforts in
the room including a special gift pack, freshly-baked cookies, luxury bathrobes, slippers, family
games and TV channels. Therefore, the customers enjoy various facilities in the hotel room. The
main aim of this hotel is to provide homely comfort to the customers (Rezaee and Choi, 2017).
Therefore, the hotel sets a high price for their services by providing various facilities to the
customers.
Best practices for profitability
The organization earns profit by providing high quality services to the consumers. The
employees of this hotel think the customers as their guest, so that they welcome them warmly
with a bouquet of flowers. The environment of this hotel is magical and splendid. As soon as the
guests enter the lobby, they are immersed by a magical festive ambience. The hotel provides all
types of facilities and enjoyment to the guests. The accommodation quality of this hotel is very
good, so that the customers prefer this hotel instead of high price. Besides, the hotel provides the
stylish cars for the comfortable journey of the consumers. The customers enjoy the journey in
BMW or Rolls Royce Phantom (Bowie, 2018). The hotel provides pick up and drop up facilities
from airport. The experienced staffs of this hotel provide services from the airport. The hotel
staffs try to fulfill every need of the customers to provide them home like feeling. On the other
hand, the hotel offers delicious foods and cocktail to the customers. In the hotel premises, there
are swimming pool, gym, spa and laundry to provide benefits to the guest. Therefore, the hotel
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provides all types of facilities in return of high price. The consumers are agreed to spend money
because they enjoy the home-like facilities in Dorchester (Wells and Chiang, 2017).
Evaluation of the profitability optimization through room capacity inventory
Dorchester is considered as one of the most luxurious hotels in the world. The hotel achieves
large profit because of its popularity among the consumers. The hotel sets a high price for the
accommodation and foods. In 2012, the Dorchester group achieved 5% rise in the revenue and it
is the recorded revenue (£304.5) in the history of hotel industry. Over the last five years, the
revenue of this hotel has increased 17.4% because the capacity of room has been increased. In
order to fulfill the needs of the customers, the organization has increased the capacity of rooms.
In 2012, the group has opened a 45-room art deco hotel to fulfill the demand of the consumers.
In 2014, the profit of this organization was reduced due to the high price (Pigden, 2015). In
2013, the group earned £16.1m but in the next year it is decreased in £14.4m. The management
of this group takes some innovative strategies to increase the overall profit. Though, Dorchester
was able to achieve the profit, the group again faces loss due to Brexit. The group easily solved
the problem by increasing the room’s price from £510 to £580. In the last of 2016, the revenue
has been increased from £336 million to £340 million.
Recognition of dynamic growth in context of technological advents
The Dorchester group uses innovative and modern technology to achieve dynamic growth in the
hotel industry. The group uses CCTV in every corner to maintain safety and security of the
guests. Besides, the organization uses digital key to open and lock the rooms to provide more
security to the consumers. The hotel uses latest technology to make the rooms soundproof. The
overall ambience of this hotel is magical because they use latest technology to make the interior
decoration. Modern technologies are used to create light effect in the whole areas of the hotel.
The hotel consists of seminar room and conference hall for organizing meeting and international
seminar. The technical team of this hotel uses latest technology such as small audio system to
decorate the conference hall (de‐Miguel‐Molina et al., 2018). The guests enjoy the facilities of
digital conference in the conference room. Besides, the hotel uses automated check-ins and
check-outs system to avoid long queues in the reception. The Dorchester groups of hotels have
launched infrared sensors for the room to avoid the disturbance of house-keeping staffs. The
group takes the help of social media to collect feedbacks from the customers. On the other hand,
they have launched mobile booking apps to provide easy booking facilities to the customers.
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Overall, the Dorchester group has improved its quality by the help of modern technology
(Vasylyev, 2017).
Impact of industry codes of conduct, legislations and best practices on accommodation
procedures
The Dorchester group runs its business all over the world, so that they maintain the high
standards of business ethics. The hotels of this group always deal fairly with the guests,
employees, business partners and competitors. The organization always provides best quality
services to the guests. The guests enjoy fresh and healthy foods and drinks in food court of this
hotel. The hotel has appointed best quality chefs, who taste all the foods before serving to guests.
Besides, the Dorchester has implemented a fix price for accommodation, so that the customers
do not face any issue regarding price. Besides, the Dorchester group follows laws and
legislations of United Kingdom to provide customer satisfaction. The organization maintains
hygiene to provide foods and beverages. Besides, the room service frequently cleans the rooms
to maintain hygiene. The Dorchester has a fire exit to avoid the risk if any fatality is happened.
According to Gas safety Regulation (1994), the hotel uses gas equipments safely and securely.
Therefore, the hotel abides the fire safety regulations to provide safety and security to guests
(Noone et al., 2017).
The Dorchester group is conscious about criminal activities, so that they check ID proof during
check-in. The employees are always alert to notice safety and security of guests. Besides, the
guests can easily contact with the workers, when they face any problem. The organization
appoints medical team to provide 24 hours medical services to customers. Guests are the main
priority to this hotel, so that they maintain customers’ code of conduct to provide them
satisfaction. According to the Health and Safety Act (1974), the organization offers benefits to
the employees if they face any injury or illness in the work place. The employees of this hotel
work in shift pattern that helps to reduce their work log. The hotel staffs protect the valuable
objects of the guests. It is said that, the Dorchester abides the laws and legislations regarding
employees and guests to operate business effectively.
Customer satisfaction procedures through maintenance of quality
The Dorchester faces two types of customers such as business men and tourists in the hotel. The
dealing process is totally different for them. The organization is able to fulfill the needs of these
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two types of guests. The businessmen are their regular customers and on the other hand, tourists
visit the hotel in the season time. Therefore, the hotel provides more facilities to the businessmen
because they increase the revenue in regular basis. The Dorchester organizes international
conference in their conference hall to provide satisfaction to the businessmen. On the other hand,
the organization is aware to provide quality services to the tourists to gain reputation all over the
world. The hotel arranges various activities to provide enjoyment to tourists. In recent times, the
group has launched amusement park to attract tourists of different countries. The staffs of the
hotel are very energetic to provide services in time to time (McGovern, 2017). The guests enjoy
laundry facility, spa, transport facility and baby-sitting facility in the hotel. Therefore, Dorchester
is able to provide satisfaction all types of guests according to their needs.
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Conclusion
Thus, the main aim of Dorchester is to provide best quality services for achievement of huge
profit. The hotel has appointed experienced and energetic employees to provide services to the
customers time to time. On the other hand, the hotel has implemented various new strategies to
attract more customers. The latest strategy of this hotel is to provide free breakfast with
accommodation. Besides, Dorchester has launched some amusements to bring more customers in
the hotel. In the festive season, the hotel provides some discounts to guests. The employees of
this hotel are very friendly to the guests and they provide homely ambience in the hotel. The
business men visit this hotel frequently due to homely ambience. On the other hand, tourists also
visit this hotel for standard quality. Therefore, in order to earn more profits the Dorchester
provides advantages and benefits to the guests.
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Bibliography
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Wree, P., Sauer, J. and Wimmer, S., 2018. Economic Evaluation of Yield-Increasing Wheat
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Appendices
Figure: 1( Yearly revenue of Dorchester), Source: (Wree et al., 2018)
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