Rooms Division Management: Direct Reservations and Occupancy Analysis

This discussion post analyzes the key factors influencing rooms division management, specifically focusing on hotel reservation methods and their impact on revenue. The student shares the writer's perspective on the importance of reservation types, highlighting the revenue implications of using Online Travel Agencies (OTAs) versus direct bookings. The analysis explores how factors like age influence booking preferences and the tactics OTAs employ to attract customers. The student suggests additional factors the author should consider to generate direct reservations, such as customer satisfaction, cost advantages for direct bookers, website user-friendliness, and the reliability of the hotel's direct reservation system. The connecting issue between OTAs and direct reservations is also discussed, emphasizing the need for hotels to introduce unique factors to encourage direct bookings and increase occupancy, ADR, and RevPAR. The post concludes by underscoring the importance of maintaining customer loyalty and attracting new customers through strategic initiatives.

Running Head: ROOMS DIVISION MANAGEMENT
Rooms Division Management
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Do you share the writer’s views on the importance of the topics from a room’s division
management perspective?
I share the writers view on the topic concerning hotel from a room’s management
prospective. According to the writers view concerning hotel bookings, the type in which
guests use to request for reservations impacts the amount of revenue which hotels get. If for
example reservations are made through OTAs, some revenue which could have been received
by hotels goes to the OTAs. The writer also argues that some aspects like age determines the
method which a guest chooses for booking. This is very true because people who are above
the age of forty mostly prefer using online travel agencies as compared to those below this
age.
I believe the writer was correct in mentioning that OTAs have come up with various
tactics to get more sales than hoteliers. In the business world, maintaining customer loyalty is
quite fundamental (Akazue, 2016). Introducing key strategies of attaining new and
maintaining current customers like family/friend recommendations, personalized offers and
recommendation tailored by OTAs will keep them attracting more customers.
Should the authors consider any other factors in trying to generate direct reservations and
thus increase occupancy, ADR and revPAR?
The writer should consider other factors in trying to generate direct reservations in
order to increase occupancy because apart from the ones considered, there are others which
can play a key role. Satisfaction is one of the other factors which the writers could have
considered because it increases the chances of customers to prefer using a service from one
organization than the other (Rahimi, 2014). This means considering to ensure the clients
receive full satisfaction from direct reservations can play a significant role in increasing
Occupancy, ADR and revPAR. Other factors which the authors should have considered are

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the advantages which customers get when they make direct reservation. This is because a
customer will always seek for services through where they realize cost saving advantage.
These factors would include being given one of the meals free, or any other factor which can
give the customers cost advantage.
The writer should have also considered another factor like the friendliness of the
hotel’s website. In some cases, customers and especially those with little knowledge will
always prefer book reservations using websites which are user friendly (Nayak, 2013). If the
hotel’s website is complicated, then the customer will seek the service from OTAs. Other
factors which the writer should consider include reliability of the hotel’s direct reservation
websites, professionalism of the customer care personnel and so forth.
Can you see any connecting issue?
There is a connecting issue between considering other factors in trying to generate
direct reservations and most customers booking reservations through OTAs because based on
the writer’s view, there are several factors which make most clients to prefer booking
reservations through OTAs. The only way of addressing these issues to increase occupancy,
ADR and revPAR is by considering to introduce other factors which would make the
customers to realize the importance of direct reservations (Mohajerani, 2013). Revenue and
number of guests in hotels can only be increased though ensuring maintaining current and
attracting new customers. This can only be attained by ensuring there are unique factors
which makes the customers to prefer being associated with a particular hotel and not the
other.

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References
Akazue, M. I. (2016). Enhanced Hotel Management Information System for Multiple Reservation
Booking. International Management Review, 12(1), 65-89.
Mohajerani, P. A. (2013). Customer Satisfaction Modeling in Hotel Industry: A Case Study of Kish
Island in Iran. International Journal of Marketing Studies, 4(3), 65-96.
Nayak, S. (2013). "Defining Service Quality for a Boutique Hotel from a Business Traveler
Perspective". Asia Pacific Journal of Management & Entrepreneurship Research, 2(1), 87-90.
Rahimi, R. (2014). Organisational Culture Perspective and Implementing Customer Relationship
Management (CRM) in Hotel Industry: Case of a Chain Hotel in the UK. European Journal of
Tourism Research, 8, 56-69.