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 forms of ownership available to accommodation services, including sole proprietorships, unincorporated associations, and limited companies, and discusses their respective advantages and disadvantages. It also delves into the role of grading, classification, and online reviews in the accommodation booking process, highlighting the importance of elements such as essential, basic, nice-to-have, luxury, and hyper-luxury services. The report further examines the organization of the front office within accommodation services, detailing the various roles and responsibilities such as secure room keys, telephone services, printer services, and online booking. Finally, it outlines the key roles within the front office department, including front office managers, night audit managers, reservation managers, and guest service managers, concluding with a summary of the key findings and references.

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.