Managing Accommodation Services: A Case Study of Hyatt Hotels

This report provides an overview of accommodation services, focusing on Hyatt Hotels. It begins with an introduction to accommodation services and then explores the scale and size of the accommodation sector within the hospitality industry, particularly in the UK. The report examines different for...Read More

Managing
Accommodation Services (Part-1)

Cover Content
 Introduction
 Scale and Size of accommodation service
 Different form of ownership available to accommodation service
 Role of different systems when guest look for accommodation service
 Organization of front office with accommodation services
 Role of front office department
 Conclusion
 References

Introduction
Accommodation is procedure for selecting appropriate building at good location,
establishment of various departments and sections and arranging resources in effective
way. These are one of the most important part in hospitality sector, as they provide
services which increases the convenience and comfort of the customer. The present
report is about Hyatt Hotels, which is American hospitality organization founded in 1957
that manages and franchises resorts, vacation properties and luxury hotels. The report
covers various size and scope of sector along with various kinds of ownership.

Scale and size of the accommodation services within
hospitality industry
 The UK has named as one of the best countries for investment in the hotel industry, and
helps to provide good services to consumers (UK Hotel Market Statistics, 2018). In
UK, hotel organisations which gives more occupation to people, make improvement in
living of standard.

Hotels classified based on ratings:
 There are about 649 hotels in UK, and they are continuously growing and
developing in seventh consecutive year.
UK Hotels CAGR
2012 2013 2014 201
5
2016
Occupancy 74.4 76.5 77.6 78.4 77.8
Year-on-year growth (%) 2.80% 1.40% 1.00
%
-0.80% 1.1
AARR 89.22 88.8 91.55 95.8 97.28
Year-on-year growth (%) -0.50% 3.10% 4.60
%
1.50% 2.2
Rooms Yield 66.4 67.96 71.03 75.0
8
75.64
Year-on-year growth (%) 2.30% 4.50% 5.70
%
0.70% 3.3

Summary performance of
London Hotels for the year 2012-
2016.London Hotels CAGR %(2012-
2016)
2012 2013 2014 2015 2016
Occupancy 81.4 82.8 82.6 82.8 81.6 0.1
Year-on-year growth (%) 1.80% -0.20% 0.20% -1.40%
AARR 89.22 88.8 91.55 149.7 151.45 0.5
Year-on-year growth (%) -0.80% 0.90% 0.90% 1.10%
Rooms Yield 120.65 121.75 122.61 124 123.58
Year-on-year growth (%) 0.90% 0.70% 1.10% -0.30%

Performance by hotel category
segment.
Segment (AARR) 2012 2013 2014 2015 2016
Deluxe (>£150) 4.50% 0.10% -1.80% 0.80% 1.60%
Superior deluxe (>£200) 5.90% 0.10% -3.30% -1.50% 4.10%
International deluxe (£150-200) 1.70% 0.40% 1.40% -0.80% 4.70%
First class (£100-150) 3.20% 1.90% 2.80% -2.30% 0.00%
Business class (£75-100) 1.10% 3.50% 4.10% 6.60% -14.00%
T ourist (<£75) -4.70% 1.70% 9.90% 7.50% -1.50%
T own house/boutique (>£100) 3.00% 2.00% -0.50% 4.10% 7.90%

Mid market rooms yield growth rate
for regional hotels.
Rooms yield growth regional hotels
Segment(AARR) 2012 2013 2014 2015 2016
Country House
>£80 2.10% 6.00% 5.50% -0.90% 1.00%
£70-£80 0.20% 4.00% 8.40% 7.00% 4.70%
£60-£70 1.40% 3.80% 9.20% 5.90% 6.40%
£50-£60 2.20% 2.80% 10.70% 8.50% 7.70%
<£50 - 4.10% 5.00% 17.90% 14.00% 5.30%

Different forms of ownership available to
accommodation services.
Types of Ownership/ Purchase
method
Description Advantages Disadvantages
Sole Trader Sole Trader also known as sole
proprietorship, this is the
person who is alone
responsible for all the profits
and loss of organisation. This
also runs and owns the entire
business individually. These
are self-employed and are
legally responsible for all
aspects of their business.
This have the right to retain
profits of their business, and
maintain full control on their
business.
Sole Traders often find it
difficult to raise finance to
fund their business. Also, the
decision in the business are
made by the sole trader, so for
the success or failure of the
business rests only on one
person.

Continue…
Unincorporated Association It is organisation that is set up
by help of agreement among
group of person coming
together for voluntarily or
charitable purpose.
It is simple setup founded by
help of agreements which does
not requires registration and
compliance cost is very low.
It does not hold investment
and land and there is no
statutory liquidation
procedures.
Limited Company It means when subscribers or
members of company is
limited by share invested or
guarantee. In given
assignment, Hyatt Hotel has
been taken which is public
company where capital is
collected through help of
public by issuance of shares
having less face value.
Large amount of money can
be raised, shares can be easily
transferable and not affected
by death of shareholders.
There is lots of legal
formalities for formation of
public company and high
chance of frauds ( Buhalis and
Amaranggana, 2015).

Purchase method Description Advantages Disadvantages
Family Loan Family Loan means to lend money
from a family member.
One of the biggest advantages of
borrowing money from family is that
the one has to pay lower interest rate
than bank or credit union.
The major disadvantage of borrowing
money from family is that the one can
damage close relationships.
Cash Purchase Cash purchase refers to generating
funds without any financing.
Money get spent on what is needed. It can get stolen or misplaced.
Bank Loan A bank loan is the most common form
of loan capital for a business, which
provides medium or long-term
finance ( Burton and Kellaway, 2018).
Some of the advantage s are
predictable monthly payments, helps
to build business credits, built a
relationship of professional banker,
and have very low and fixed interest
rates.
The major disadvantages of bank loan
are lengthy paperwork, longer waiting
time, and requires strong credit.
Joint Purchase Agreement of co-buyer has been
made in this with another person.
In this, there is very minimal and low
risk.
Profit get shared in proportionate part.

Role of grading, classification and online review
while booking accommodation
 In hospitality industry, there are different kinds of guests, and have different kinds of
expectations from hotels. When a customer book accommodation they have their own
necessary needs and requirement which should be fulfilled by the hotel. On the other
hand, Online reviews are just one factor that might make a guest set their expectations
for their stay before they even enter the lobby.

Continue…
Elements Description Examples Roles of grading, classification
system and online review sites
Essential Before booking
accommodation, a customer
check some of the few essential
things, these are very necessary
needs of consumer which
should be considered by the
manager of Hyatt hotel.
Clean room, comfortable bed,
restaurant, friendly staff, etc.
Essential of Hyatt hotel has
been graded as A and online
review is also excellent ( Chiu,
and et. al, 2013).
Basic It means basic things which
every rooms of hotel should
have for their guests.
Meal preferences, snacks,
lighting facilities, water
facilities,etc.
Basic elements are classified as
high class service, and ranked
as grade A.

Continue…
Nice to have The things which like or nice to look
in accommodation by guests.
Cheerful welcoming smile of
employees, laundry, Wi-Fi and
attentive room services, etc.
Hyatt hotel is luxury hotel so review
of customer regarding it is superb.
Luxury The high class service provided by
hotel to their guest is called luxury.
Safety and security for single female
guest, cinema spa, luxurious cars, etc.
It is luxury hotel having all facilities
and graded as A+ category.
Hyper Luxury The deluxe and grand services
provided by hotels to their consumer
are hyper luxury.
Golf course, private check-in,
personal kitchen so that guest make
their beverage by their own choice.
Hyper luxury elements are also rated
as excellent and A++ category.

Front Office with variety of Accommodation
Services
 The front office department is known as reception in the hotel, at this place customers
come to contact with hotel for the first time and this is the place where customers get
arrived to hotel. In huge hotel organisations like Hyatt has divided their front office
department into several parts, these are as below -

Continue…
Accommodation Service Roles Responsibilities
Check in desk
Secure room key In this function, when the guests arrive, the clerks on front
desk ensure safety and secure room key. While visitors are
using room and should be provided to them and there is an
extra key of room in case of emergency.
Telephone There is a telephone on the front office desk for the
facilities of the guests, if they have any query then they
may ask the front desk manager through telephone. In this
the guest phones should be answered within three things
and the manager should use low voice pitch while talking
to the customers.

Printer The proper receipt and bills should be provided to guest after leaving room, for the
purpose of safety that if any issue occur related to trip and hotels facilities, then that can
be resolved by the slip provided by hotels to customers ( Common and et. al, 2016).
Online booking This function handled the request of the potential guests for reserving accommodations.
Front office should provide online booking facility to guest so that they can easily book
rooms.
Desirable rooms In this, the reservation employees of hotel, front office interact with the potential guest
most. Front office should provide variety of room option to visitors so that they can
prefer their desired size, price room.

Key roles within the front office department
 In a hotel industry front office department is the most visible department. It plays the
important role in image building. It is the first and last place for any guest to contact,
it is also known as communication desk.
 Front office managers
 Night audit managers
 Reservation managers
 Guest service managers

Conclusion
 From the above study, it has been concluded that accommodation service are key
part of service industry. It help in increasing the comfort level and safety of guests
by providing proper accommodation services. This report also give the
knowledge about the important of housekeeping department, along with this, it
reflect the importance of front office department.

References
 Barlow and et. al., 2013. Europe sees mixed results from public-private partnerships for
building and managing health care facilities and services. Health Affairs. 32(1). pp.146-
154.
 Brunner-Sperdin et. al., 2012. It is all about the emotional state: Managing tourists’
experiences. International Journal of Hospitality Management. 31(1). pp.23-30.
 Buhalis, D. and Amaranggana, A., 2015. Smart tourism destinations enhancing tourism
experience through personalisation of services. In Information and communication
technologies in tourism 2015 (pp. 377-389). Springer, Cham
 Burton, M. and Kellaway, M., 2018. Developing and managing high quality services for

 THANK YOU