Report: Room Division Operation Management Analysis and Strategies

This report provides a comprehensive analysis of room division operation management within the context of a hotel, specifically evaluating the Five Seasons Hotel. It delves into key aspects such as revenue and yield management, exploring strategies to maximize occupancy and sales, including techniques like price bundling, promotional activities, and up-selling. The report also evaluates the use of forecasting and statistical data to predict demand and calculate revenue per room type. Furthermore, it presents key performance indicators (KPIs) like occupancy rates and sleeper occupancy to measure the success of accommodation sales. The conclusion emphasizes the importance of staff training and adapting to industry trends to ensure effective operational management and maintain high standards.

Room Division Operation
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK B...........................................................................................................................................1
4.1 Revenue/ yield management.............................................................................................1
4.2 Sales techniques to promote and maximise the revenue .................................................2
4.3 Evaluation of the usage of forecasting and statistical data in the room division.............3
4.4 Key performance indicator for measuring the success of accommodation......................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................6

INTRODUCTION
This report covers the accommodation and front office services provided by different
firms and the services staff's role and responsibilities will be described. The significance of front
house area and the key aspects which are helpful in the effective management, are also added in
this context. The assessment has been done by evaluating the operations of the Five Seasons
Hotel which is located in Winchester. This assessment has a clause that explained the importance
of property interior and design for managing the operations effectively. As per the given scenario
revenue management and various sales techniques are also included in this report. The evaluation
of forecasting uses and statistical data is calculated. In this presented report, It will describes the
revenue and yield management and it also analysis of sales techniques which are used to
promote and maximize revenue. It also describe an evaluation of the usage of forecasting and
statistical data in the room division. At last, a description with calculation of performance
indicators also used to measure the success of accommodation sales (Scherer, 2014).
TASK B
4.1 Revenue/ yield management
Total revenue is the total income of the hotel from the sales the available rooms in the
hotel, for a specific time period. The revenue generation can be rise up if the operational
management would be done properly. It indicate that the success of the organisation is due to the
techniques used to increase the maximum occupancy of hotel rooms and services. There is the
another way to maximize the accommodation is policy under which the customer cannot cancel
the reservation in certain conditions or he will pay a penalty. There is another method is the
contracting with travel agents in order to achieve full occupancy of the rooms at the hotel. All
these methods aim to increase the sales of service and the occupancy of the rooms. The
management of the revenue can be done with the proper utilization of the resources.
The revenue can be calculated by this formula:
Revenue = Rent of room * numbers of rooms
Hence, yield management is a variable pricing strategy, which is based on understanding,
anticipating etc. so that it make influence on the consumer behaviours so that to maximize the
profits of an organisation. As per the above given formula, revenue of a hotel is calculated by
multiplying the rent of room into numbers of the rooms. Here, yield management include
1

strategic control on inventory so that it can be sell to the right consumers in a right way. This
process gives the result of price discrimination, in which consumers used only identical foods at
different pricers. Yield management is used in a fixed amount of resources which are available in
a sale. Yield management also include management system which make full control on yield
(Wang, 2014). It can be refers differently in various level like by goods, group of goods, market
etc.
4.2 Sales techniques to promote and maximise the revenue
The maximization of revenue can be done by adopting these sales techniques:
Price bundling: The price bundling is as effective approach in which the organisation can bundle
their different services in one package and then sale at the price of one service.
Pricing on the basis of individual: The organisation can charge their visitors according to their
capacity, to maximize the revenues (Saadouli, 2015).
Promotional activities: The organisation can give discount to their customers in the seasonal
period. This will increase the occupancy and maximize the revenue. By increasing the marketing
strategies by providing quality of products helps to make increase in sales output. By making
effective promotional techniques such advertisement, personal selling, e-marketing, pamplets or
holdings etc. are the tools of the promotional activity, by usimng all therse factors it also make
the great impact on revenues of a products. Thus, by using effective techniques of promotions, it
promote and also maximizer the revenue of an organisation.
Selling with suggestive: The organisation should make good relationship with their customers
which helps to offer products and services to them. To make better relationship business firm
need to advance the efforts through application of code of conducts. Selling with suggestive
include all the suggestion and guidelines which are provided by the seller to the customers sop
that customers can understand every information personally. It also have various advantages like,
it increase the sales and maximize the revenue, it also give personal attention to the customers by
making effective relationship with them. All these advantages make positive impact on revenue
and it helps to maximize it (Ivanov, 2014).
Up-selling: It is a techniques which are used by the hotel and in general this means that a hotel
sells more than the customer got. By maintaining the customer database, it will help to identifuy
2

future conditions and also helps to attract the customers by giving special offers, adopting new
packaging techniques or giving them discounts.
Hence, by determining the difference between sales and revenue, increasing the
marketing strategies, by rechecking the pricing strategies, expanding the distribution channels,
by making diversification in offerings, developing good relationship with people etc. are the
strategies which are used in to promote and maximise the revenue of an organisation (Huang and
Ji, 2013).
4.3 Evaluation of the usage of forecasting and statistical data in the room division
The statistical data is used to determine the ratio of occupancy. The prediction of demand
of the customers can be done with the help of forecasting techniques. These techniques can help
to analyse the trends and time when the rooms are occupied. The statistical data and forecasting
techniques does help to calculate the total generation revenue per room type. The forecasting is a
valuation techniques which is based on historical data, trends, experience of a certain value of an
uncontrollable variable for a certain period of time. It is a very useful techniques that executives
and managers in the tourism sector use. By the help of this tool, they can set up a plan which is
based on past events. Every organisations deicide their statics based on their design, structure
etc. so that they can find out actual position of company.
Hence, by using this tool organisation in the tourism sector can predetermine and
analysis the level of success in the future and also examined the failure condition too. There are
various kinds of forecasting schemes which are used by the organisation, like forecasting,
satirical, % trend projection, trend and seasonal, smoothing, expert opinion and Delphi method
etc. are used to make effective forecasting of an organisation (Huang, 2014).
4.4 Key performance indicator for measuring the success of accommodation
Occupancy rate
Room Occupancy Percentage= ( Rooms Occupied/ Total Rooms)*100
Double occupancy percentage= (Double Room Occupied/ Total Double Rooms)*100
According to the presented scenario the parameter are as follows:
Rooms
Beds
3

Occupancy
75 single rooms
75
55
60 twin room
120
50 occupied by two people, 5 occupied by one personal
80 double room
160
30 occupied by two people 40 occupied by one person
TOTAL
215
355
180 rooms lest (260 sleepers)
1) Room occupancy %: 180/215*100= 80.72%
2) Sleeper occupancy %: 260/355*100= 73.20%
As per the above solutions it is noted that twin and double rooms where in them is
accommodated 1 person the price is for single room, because the hotel is decided to
accommodate the single guests in the rooms for 2 persons. From the above calculation we can
see that the occupancy of the room is with good parameters, also the sleepers in Hotel are closed
to the room occupancy. These parameters show that in hotel work managers at a good level,
trying to accommodate all guests of the hotel.
CONCLUSION
This report has concluded that room’s operations management can be done by improving
the accommodation and staff services of the organisation. If the legal and statutory requirements
would be fulfilled then operational management can be managed effectively. The key aspects of
4

the management of front of the house area can be improved by making an appropriate plan. The
reception service and accommodation is the leading factor in the success of organisation. In
order to maintain the standards of a hotel and to develop successful activity, given the dynamics
of the sector, the organisations must adopt to the new trends. Also staff in hotels should be well
trained, motivated and with the necessary skills (Dobrzykowski, 2014).
5

REFERENCES
Books and Journals
Dobrzykowski, D. and et.al., 2014. A structured analysis of operations and supply chain
management research in healthcare (1982–2011). International Journal of
Production Economics. 147. pp. 514-530.
Huang, C. W. and et.al., 2014. Measurement of tourist hotels׳ productive efficiency, occupancy,
and catering service effectiveness using a modified two-stage DEA model in
Taiwan. Omega. 48. pp. 49-59.
Huang, Z. and Ji, Y., 2013. Design and demonstration of room division multiplexing-based
hybrid VLC network Chinese Optics Letters. 11(6). p. 060603.
Ivanov, S. H., 2014. Hotel revenue management: From theory to practice. Browser Download
This Paper.
Saadouli, H. and et.al., 2015. A stochastic optimization and simulation approach for scheduling
operating rooms and recovery beds in an orthopedic surgery department.
Computers & Industrial Engineering. 80. pp. 72-79.
Scherer, H.F. and et.al., 2014. Efficient building energy management using distributed model
predictive control. Journal of Process Control. 24(6). pp. 740-749.
Wang, J. and et.al., 2014. Modeling and analysis of care delivery services within patient rooms:
A system-theoretic approach. IEEE Transactions on Automation Science and
Engineering. 11(2). pp. 379-393.
6