Rooms Division Manager Report: JoJo Hotel Performance Analysis

This report provides a comprehensive analysis of the Rooms Division Manager's performance at JoJo Hotel. It begins with an introduction and overview of the core strategies employed during RevSim cycles, including the choices made regarding room distribution and their impact on other departments such as marketing and housekeeping. The report identifies and explains key issues related to the hotel, such as staff cost reduction, late checkouts, and reservation policies, offering recommendations for future profit maximization through promotional, pricing, and branding strategies. A quarter-by-quarter analysis compares the hotel's performance with the Australian marketplace, contrasting RevPAR, ADR, and occupancy ratios. The report concludes by summarizing the findings and emphasizing the importance of effective rooms division management for delivering quality services and customer satisfaction, supported by cited references.

Assessment 4: Rooms
Division Managers Report

TABLE OF CONTENTS
1. INTRODUCTION.......................................................................................................................1
2. Brief overview of core strategy and choices made during RevSim cycles........................1
3. Potential impacts of decisions on other departments in the hotel......................................1
4. Explaining issues related to the hotel.................................................................................1
5. Recommendations for the future maximisation of profit...................................................2
6. Providing quarter by quarter analysis and comparing with the marketplace ....................3
7. Contrasting hotel’s Rev Par, ADR and Occupancy ratios with marketplace of Australia. 3
8. CONCLUSION............................................................................................................................3
REFERENCES................................................................................................................................4

1. INTRODUCTION
Rooms divisions management should be there so that quality services may be imparted to
customers in effective way. Present report deals with analysing management and flash report of
JoJo Hotel which is engaged in hospitality industry. RevSim cycles, ADR, occupancy rate are
assessed to make interpretations.
2. Brief overview of core strategy and choices made during RevSim cycles
The core strategy used in JoJo Hotel is that diversified rooms are provided by the hotel
and as such, higher amount of profits are generated in the financial year leading to increase
overall financial performance in the best possible manner. This strategy has worked effectively
for the hotel and decision made by management lead to fulfilment of stated objectives in
effective way. On the other hand, in order to generate profits from rooms, various choices were
made during RevSim cycles quite effectually. It can be analysed from the excel that total rooms
sold per distribution channel had been remarkable for the hotel (Font, Garay and Jones, 2016).
There were rooms such as premium, BAR standard, package, guaranteed and qualified category
as well. Moreover, another category of rooms were contract, tour, large and small group. These
choices made during RevSim cycles were fruitful for JoJo Hotel as it was able to earn revenue by
selling diversified category of rooms and attaining revenue quite effectually.
3. Potential impacts of decisions on other departments in the hotel
There were numerous impacts of decision on varied departments in hotel. First of all,
employees working in marketing and promotional unit have to provided with the hard work in
order to provide attractive offers to the customers so that they may be able to come to know
various categories of rooms and as such, overall sales can be injected in a better way.
Furthermore, expenses of departments were increased and because of decisions made by
management, budget was required in order to meet targets (Yuan and et. al,2017.). The
employees were resistant to carry out activities which were listed in management reports.
Moreover, another potential impact was also found on the workers which were engaged in
housekeeping department as rooms were maximised up to a high extent and thus, work was
maximised as well. Thus, these were some potential impacts of decisions.
4. Explaining issues related to the hotel
1. Reducing staff costs-
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The reduction of staff costs is one of the important element in the hotel. It has negative
impact on sales and profits are decreased up too much extent. The main reason behind such
reduction is that loss of productivity which is provided by employees (Murphy. 2016). Staff costs
are required to be incurred so that overall performance of JoJo Hotel may be maximised up to
great extent. Thus, in order to increase productivity, it is required that reduction of staff expenses
should be done in effective way so that it may not deteriorate profits.
2. Offering late checkouts-
This issue has been taken into account by JoJo Hotel in achieving customer satisfaction in
effective way. It is helpful for customers as firm allows late checkouts by which they can reside
more time in the hotel (Jones. 2018). Furthermore, front office department has also streamlined
procedure as guests are allowed such facilities.
3. Accepting reservations from leisure customers-
The reservations should be taken from each and every customers so that they may be
satisfied up to higher level. This is essentially required in order to treat all guests equal and no
reservations shall be made of only leisure customers. It is required that JoJo Hotel should take
this aspect in practice and take reservations from guests in effective way (Xu and Li, 2017).
5. Recommendations for the future maximisation of profit
Promotional Strategies
Their can be many aspects in the formation of strategies for the profit maximisation as
they can conduct various promotional activities such as advertisements on print and no print
media, broadcasting on various television and radio channels which has a reach to larger
audiences.
Pricing Strategies
Pricing is the important factor as customer in this industry are very price sensitive they
want to avail maximum services in comparison to the payment they are paying for that. So their
should be implementation of effective strategies related to pricing that would lead to provide
satisfaction to the customer on this aspect and also lead to earn more profit and keeping it the
differential factor in them market for the visitors to differentiate them from the competitors.
Branding
Branding is considered very important in this industry as people are more loyal towards
the brand as compared to other factors. Hotels should create the perfect image of the brand in the
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minds of the customer so that they would be more attracted towards it as compared to opting for
other rivals.
6. Providing quarter by quarter analysis and comparing with the marketplace
It can be interpreted that performance of JoJo Hotel is good enough as it has implemented
well-structured strategies to effectively carry out profits in effective way. It can be highlighted
from guest satisfaction as services to them in Quarter 1 was 55 %, while in next Quarter it was
decreased to 21 %. This means that about 34 % decreased was found in this quarter. The highes
was 66 % and lowest was 55 % in quarter. However, it again hiked to 32.78 % in next quarter.
Highest was 52 % and lowest was 21 %. It again reached to 39.08 % in Quarter 4. The staffing
level and associate facilities have pretty much hiked in recent quarters in the best possible
manner. The net profit was 93703 in Quarter 1, increased to 138345 in Quarter 2, while it again
hiked to 972662 in Quarter 3 and further maximised to 1111958 Quarter 4. This shows
performance of the hotel has increased from first quarter to last one. Thus, it can be said that
hotel is able to produce profits quite effectively.
7. Contrasting hotel’s Rev Par, ADR and Occupancy ratios with marketplace of Australia
The Rev Par of the hotel is increased in as it was 82 in Quarter 1 which was hiked to 92
in next quarter (Melbourne hotels: occupancy increase, RevPAR decline. 2017). Moreover, it
was increased in next quarter to 120 and in next quarter was decreased to 107. It can be
compared with Australian marketplace as it was dropped down by 2% and as such, hotel has
good Rev Par. On the other hand, ADR was increased by 0.6 % and performance of JoJo Hotel
has been steadily and increased in further quarters. This is evident from quarter 1 as it was 89.7,
89.6 in next quarter and increased to 100.8 in quarter 3 and 108.7 in last quarter. Occupancy
ratios are decreased in recent quarters of hotel while, marketplace had declined 2.6 % to 80.9 %.
Occupancy ratio was 100.3 in quarter 1, increased to 102, which decreased to 99.3 and further
reduced to 93.3 in quarter 4.
8. CONCLUSION
Hereby it can be concluded that rooms division management is crucial for the hotel so
that it may be provide quality services to customers. This is required so that customers may be
satisfied.
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REFERENCES
Books and Journals
Font, X., Garay, L. and Jones, S., 2016. Sustainability motivations and practices in small tourism
enterprises in European protected areas. Journal of Cleaner production.137.pp.1439-1448.
Xu, X. and Li, Y., 2017. Maximising hotel profits with pricing and room allocation strategies.
International Journal of Services and Operations Management.28(1).pp.46-63.
Yuan, Z. and et. al.,2017. Designing public storage warehouses with high demand for revenue
maximisation. International Journal of Production Research.55(13).pp.3686-3700.
Online
Melbourne hotels: occupancy increase, RevPAR decline. 2017 [Online] Available Through:
<https://www.accomnews.com.au/2017/05/melbourne-hotels-report/>
Murphy. 2016 Quick tips to cut your hotel's costs [Online] Available Through:
<http://blog.frontdeskanywhere.com/quick-tips-to-cut-your-hotels-costs>
Jones. 2018 How Lenient Are Hotels When It Comes To Checking Out Late? [Online] Available
Through: <https://www.forbes.com/sites/quora/2012/06/13/how-lenient-are-hotels-to-checking-
out-late/#102ef2dd3ba6>
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