Comprehensive Report on Managing Accommodation Services (Part-1)

This report provides a comprehensive overview of managing accommodation services, particularly within the UK hotel industry. It begins with an introduction highlighting the importance of the hospitality sector and the need for effective management. The report then delves into the scale and size of accommodation services, emphasizing the growth in the UK hotel market. It explores different forms of ownership available, including sole trader, limited company, and franchise models, outlining the advantages and disadvantages of each. The report also examines the role of grading, classification, and online reviews in influencing guest booking decisions, covering essential, basic, nice-to-have, luxury, and hyper-luxury services. It describes the organization of the front office, including reservation services and equipment, and details the key roles within the front office department. The conclusion reiterates the importance of effective management to ensure customer satisfaction and maintain a positive reputation. The report includes several references to academic sources.

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
Hospitality industry provides two services viz. Accommodation services for people who are travelling away from
home and dining facilities outside their home. The former is a basic need which provide lodging facility for
tourist to stay and rest. UK have seen growth in hotel industry over the last few years. The contribution is 3.8
million jobs out which 11% is of total UK number (UK Hotel Market Statistics, 2018). It is a great source of
revenue for UK therefore, effective and proper management of accommodation services become necessary.
Managing the accommodation means making future plans and strategies and managing resources for a pleasant
stay of guests.

Scale and size of the accommodation services within
hospitality industry
◦ UK hotel development index has name UK as one of the best country for investment in hotel
industry. This industry has seen a growth of 3.3% in hotel market and 68% contributed to new
rooms.

Revenue from Hotel Accommodation in UK

Different forms of ownership available to
accommodation services.
Types of Ownership/ Purchase method Description Advantages Disadvantages
Sole Trader Sole trader is an individual who has absolute
ownership. The liability is unlimited. Owner
has the absolute authority to employ staff
(Burton and Kellaway, 2018).
Minimum start-up costs with maximum
privacy. Full control over the business,
improved customer service, easy conversion of
structure and wind up of business. Owner keeps
all the profit
Unlimited liability for unpaid debts due to
absence of legal distinction, difficulty in
raising capital, taxed as a single person. Also,
the life span is limited to owner's life.
Limited Company The liability of members is limited to the
nominal or guaranteed amount paid. Starwood
Hotel & Resorts is a private limited company
with share capital..
Limited liability and separate entity. Various
taxation advantages, strong control over
company's affairs.
Restricted capital raising and dilution of
powers. High legal restrictions and financial
requirements.
Unincorporated association The organization is formed by executing an
agreement between people who have mutual
interest. Such businesses don't required
registration.
Minimal legal compliances or financial
requirements.
Jointly and severally liability for unpaid debts.
Such business cannot hold assets in its own
name as there is no legal identity.

Purchase method Advantages Disadvantages
Family Loan These loans usually have lower interest rates
with more flexible repayment terms. .
Lack of clarity of financial liabilities. Also,
there are increased tax issues.
Bank Loan Loans are cost effective. Also, the interest
amount is a tax-deductible expense. Thus,
borrower gets tax benefits.
Loans are not flexible which means that
borrower have to pay high amount of interest on
loan.
Franchise Franchises have a higher rate of success than
start-up business.
Restrictions on products selling by and
execution of formal agreement with franchisor.

Role of grading, classification and online review while
booking accommodation
◦ Hotels look for systems and ideas which can provide uniformity in its services to ensure quality. Thereby, it is
vital to have a reliable system which grades and authenticate hotel's quality regarding various facilities and
services to increase customer satisfaction. A customer always some of the information before booking a hotel.
The trend to check the review have shifted to online ratings.
Basis Description Examples
Essential These are the most important needs and
without which a hotel can never fulfil its
customers’ demands. Essentials are required
for every situation.
Rooms
Rooms, housekeeping service, parking
facilities, food services, restaurant, security
etc.

Continue…
Basic Basic needs are vital to survive and are part of accommodation. These
are a part of essential services and all the customers have right to
these services. However, more services may be added by paying
more. These are common for all customers irrespective of how much
they have paid.
Food, hotel comfortable beds, attentive answers to guest call, lighting,
cleanliness, upstanding customer service, great amenities and easy
check-in and checkout procedures.
Nice-to-have These are the items that are other than the basic and essential services.
These are provided to make a customer stay for a long time
Swimming pool services, wifi, laundry, discretion with names,
Luxury These are upscale services provided by luxury hotels. These services
are provided when a customer pay additional amount to avail these
services.
Spa, modern cuisine, gym, luxurious cars, pet sitting, personal trainer
in health club,
Hyper-luxury These are the services which are rare, exclusive, of extremely high
quality, and are premium . A hotel provides these services for a
limited time and is available for certain customers who are willing to
pay the price
Boutique designed room, golf course, personal kitchen and butler

Continue…
◦ Front office or reception is the most important and visible area in a hotel. It is the most important part for any business.
Every hotel has a reception desk irrespective of its size or type. It serves as a nexus between the guests and hotel.
Receptionist collect the guests and assist them in completing all the formalities
Sections of front office Services Equipments
Reservation This service is provided the front desk or reception in
the hotel. It is necessary for guests to have reservation,
as without it, a person can not claim his right to use and
access the services of a hotel unless and until he has a
valid reservation. But, a guests can have reservation
only when rooms are available. Together with required
payment may and terms and conditions have been
agreed by guests.
Telephone can be used to make booking from a distance
and printer is used to print form that is to be filled by
guests as well as receipt of payment.

Front Office with variety of Accommodation Services
Rooms The prime services related to a room such as
housekeeping, security, maintenance etc. A room of
a hotel should be cleaned before it is allotted to a
person as customer expect a decorated, aromatic
clean room. Further, related items and services are
also provided like towels, bathroom related items,
fans, AC, locker, upgrading reservation during
registration, promotional packages, movie library,
etc.
Reception need equipments like, fax machine,
computer system, entry registers, printers and etc.
Concierge The employee in hotel who use to take the duty of
receiving the guest and carrying them from gate to
their rooms in multi-tenant organisations like hotel
is known as concierge. The position for these
employees are decided by the security guards.
Every room has a separate telephone to make calls
to reception, housekeeping etc.

Key roles within the front office
department
◦ A hotel front office department is required for efficient and smooth running of the overall hotel
activities. The role includes various administrative, staffing and guests related queries. Training
is provided to reception and reservation staff (Jamieson and Jamieson, 2014). Basically, front
office plays multiple tasks. In current scenario, Starwood Hotel & Resorts is considering to
reduce the costs by removing one of the staff positions.