CH.3 Rooms Division Operations - Recent trends about operating rooms division in hotels

Use of internet websites has become a trend for hotel to communicate with customers, for example, online booking is now the major way used by customers to make reservations. Also, if customers have any esquires, most of the hotel websites has set up online Q&A to solve their problems. In addition, hotel may set agreements with third-part company e.g. travel agency for the room selling.

Moreover, outsource some of the operations is another trend. There are many different procedures can be outsourced, e.g. housekeeping, window cleaning and security etc. The most common one in Hong Kong is the F&B staffing, some agents are hired to look for temporary staff for special activities.

Finger print door lock

Increase in use of advance technology would be the trend too, for example, the traditional key card can be replaced by the bio-metrics scanner which will use customer’s fingerprint as a unique code for door lock. This could help the hotel stand out and become more competitive.

Greening the hotel will become a requirement by the public. As hotel has the endless 24-hour operations schedule, and the immediacy of good service. A successful waste reduction & recycling in hotel scan create rewards to the hotel e.g. cost savings, good company PR, and employee incentives.




Reference: http://www.hoteliermiddleeast.com/14292-hotel-key-cards-to-be-replaced-with-biometrics/#.Ukgec4ZpmxA

CH.3 Rooms Division Operations - How hotels using yield management to maximize their profit

Yield management is the process of understanding, anticipating and influencing consumer behavior in order to maximize yield or profits from a fixed, perishable resource (Netessine, S. and R. Shumsky (2002), for example, the limited rooms within a hotel. Which means it is the techniques in allocating the right type of rooms and services to the right people at the right price and at the right time.

Yield management in hotel business can be summarized as some Cs: Calendar, Capacity, Cost and Customer. These elements are interdependent, which means yield manager should take account to all these effects like the peak seasons, inventory control and customers behavior

A simple formula: Profit = Revenue – Cost, to maximize profit, either increase the revenue or lower the cost.

Demand Forecast

To increase revenue, yield manager should get a good understanding on the demand patterns, for example, from year to year, month to month even week to week as the market demand changes rapidly nowadays. A good understanding on the demand pattern could be helpful on the inventory forecasting and control.





On the other hand, in order to anticipate the no show issues, hotel may usually allow overbooking of the rooms that exceed the actual capacity during the peak seasons as to compensate the lost on those who made reservation but no show. In case of no rooms available once customers arrived due to overbooking, hotels often maintain partnerships or some agreements with other hotels to utilize as alternate arrangements for overbooked customers.

Hotel may also try to influence customers’ behavior, for example, based on customers' demand levels and preferences, management is able to shift the demand of price sensitive but time insensitive customers from peak times to off-peak times by offering discount rooms, vice versa.

To control the costs, hotel management should have a good inventory management, forecasting in order to reduce the unused waste. Also, some maintenance procedures can be outsourced to the specialists like the window cleaning company.

Reference: http://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-13622.html

CH.3 Rooms Division Operations - Examples of revenue and cost centers in hotel

There are several kinds of revenue and cost centers in hotel. Revenue Center means generating revenue while Cost Center means incurring costs to support revenue center. These could be departments, divisions or business units.

For revenue centers, examples are the front office, communications and the food and beverage departments. Front office charges customers for the lodging fees and other expenses like the fax services. Communications departments may charge customers based on the telephone usage e.g. overseas calls while customers consume F&B may also generate revenue for the hotel.

The costs break down of Marcus Corporation

Cost centers are considered to be no direct financial benefit to the hotel. For example, the housekeeping department, it is necessary to exist within an organization due to its value to the hotel as it maintains a good hygiene and high standards living environment. Moreover, the maintenance department is required to maintain all the facilities, machines etc. operate well, the parts and the workers are expenses. Also, security could be the cost center because guards are hired to secure customers safety, but the expenses are needed to create a safe, comfortable environment to customers.

Reference: http://www.hotelmule.com/html/index.html

CH.3 Rooms Division Operations - Front desk, reservation, cashier, concierge, housekeeping and laundry departments

There are many different departments within a hotel in order to handle different daily issues.

Front desk

• Front desk, where the guests have the most interaction with staff. It welcomes guests to the accommodation section: The front office has to meet and greet customers once they arrived, staff will sell and up-sell rooms to customers. Also, it has to allocate the “check in and out”, issue keys and handle guests’ luggage etc. Sometimes, it may be required to offer the mail, fax or message services.

• Reservation, it is usually the first contact point between hotel and the potential customers. It aims to process the reservation requests, control the room availability, and the most important thing is maximizing room sales through yield management or forecasting etc.

Cashier

• Cashier, it is a department deal with the money that customers had spent. Staff need to post charges to guest accounts or receive the payments made by guests at check-out. On the other hand, it may provide a variety of banking services, for example, the currency exchange. At night, there are night auditors to close the daily books and generate a report based on the data obtained in that day.

Concierge

• Concierges aim to raise the value of the hotel itself. It needs to assist guests with basically everything. This is a kind of broad statement, staff are expected to help with anything from seat reservation arrangement to pointing directions. Therefore the staff are required to have knowledge about the city and able to speak fluently with customers who are in need.

• Housekeeping is the largest labor department in a hotel. It maintains a good hygiene and high standards living environment in the hotel. Staff will clean the rooms, facilities etc. Also, it controls the room supplies and equipment inventory in the hotel.

Laundry

• Laundry, it may under the housekeeping department. Staff are required to do sorting, washing and drying towels, clothes etc. The services outcome should meet the highest possible standards.

 

          References: http://www.cnn.hk/2010/LIVING/10/11/cb.hotel.concierge/index.html

                                http://www.setupmyhotel.com/

CH.3 Hotel Business - Trends and Development in Hotel Lodging

Undoubtedly, the development of the hotel industry is greatly linked with the tourism industry as hotel guests are mainly travelers, businessmen on working trip and etc.  As a result, the development in hotel lodging is somehow derived from the tourism industry.  For example, if a country has a inactive tourism, there will not be many hotels as they cannot make profit on it.  So, we can say that the development of hotel industry differs in different countries.  Nevertheless, the greatest trend of it should be globalization. 

With technology nowadays, people can reserve hotel rooms online only with a few clicks.  Websites like Agoda.com, Hotels.com provide thorough information about almost every hotel in the world.  You can just select your stay duration, number of people, date, location, and then these website will quickly provide you a list of options, and then you can simply book your preferred hotel just within two minutes, which is very very convenient.  This makes the hotels a must to join these kind of website. 

Moreover, comparison among prices is very easy due to these kind of website.  Therefore, price competition will now be more important then before. 

In addition, unique features and distinction may be a main trend.  Similarly ,with rapid growth of globalization, people hold detailed information about hotels in many places.  It means that it is critical for hotels to attract customers with some special features and eye-catching gimmick.  For example, you can find that the number of unusual hotels is increasing .

CH.3 Hotel Business - Franchising and Vacation Ownership

Agreement of Franchising

A Franchise Agreement describes the Franchise relationship between a Franchisor (the owner of a business model or system being franchised) and a Franchisor (the person or business seeking to use the Franchisor's business system).

This Franchise Agreement allows a Franchisor and a Franchisee to agree to the terms of use regarding the Franchisor's brand, business system, and expertise.  Purchasing a franchise can be of great benefit to an entrepreneur looking to start a business with a proven track record for success in an attempt to limit the risk associated with starting a new business.

This Franchise Agreement sets the conditions of the use of the franchise system, including the term length, franchise fee and royalties, as well as a number of other issues such as developmental assistance, training, and marketing.

1. Marriott offers owner and franchisee opportunities across the globe: regions include the U.S. and Canada, Europe, the Caribbean & Latin America, the Middle East & Africa and Asia Pacific. Marriott International operates and franchises hotels under the Marriott, JW Marriott, The Ritz-Carlton, The Autograph Collection, Renaissance, Residence Inn, Courtyard, TownePlace Suites, Fairfield Inn, SpringHill Suites and Bulgari.
   
   JJ Marriott Hotel Hong Kong which is situated in Pacific Place, 88 Queensway · Hong Kong, China is one of the franchising family brands of Marriott in the world. JJ Marriott Hotel Hong Kong is a five star Hong Kong hotel and direct access to over 150 shops, restaurants and cineplex in Pacific Place shopping mall for the visitors.
2. Hong Kong is one of the the modern style hotels in W hotels Worldwide which has the franchising relationship with Starwood Hotels.  W Hong Kong design, living settings and cultural influence from fashion to music.  The hotel hosts grand parties to the celebrities and businessman usually.
3. Conrad Hong Kong is a chain of hotels trademarked by the Hilton Worldwide.   Conrad Hong Kong is considered to be moderate-scale mid-priced hotels that are designed for both business and leisure travelers.  The hotel brand is similar to that of the Courtyard by Marriott brand, a key competitor. Similar to other Hilton brands, Conrad Hotels and Resorts properties are independently owned and operated, franchised under a licensing agreement with the Hilton Hotels Corporation.

Management Contract

A management contract, which also called Outsourcing or sub-servicing, is an arrangement under which operational control of an enterprise is vested by contract in a separate enterprise which performs the necessary managerial functions in return for a fee.  Management contracts involve not just selling a method of doing things (as with franchising or licensing), but involves actually doing them.  A management contract can involve a wide range of functions, such as technical operation of a production facility, management of personnel, accounting, marketing services and training.  In Asia, many hotels operate under management contract arrangements, as they can more easily obtain economies of scale, a global reservation systems, brand recognition etc.

Starwood Hotels and Resorts Worldwide Inc

Starwood Inc's Management Services





Contracts of the company include hiring, training and supervising the managers and employees that operate these facilities.  For additional fees, it provides centralized reservation services and coordinates national advertising and certain marketing and promotional services.  Starwood also prepares and implements annual budgets for the hotels it manages and is responsible for allocating property-owner funds for periodic maintenance and repair of buildings and furnishings.

Mamaison Hotel Management 

It offers a unique brand with non-standard properties to the customers.The hotels cater to innovative and niche interests. Mamaison has an efficient management team to dedicated to marketing strategies, innovative sales and global distribution system to build their hotel reputation.

                Mamsion's Management team

Accor

It managed more than 2700 hotels has expertise experience to the hospitality industry.  They have efficient distribution system and customer loyalty program to attract more new guests.

                      

                                                                           
                                                                          Accor's Management contract 

Vacation Ownership

Vacation Ownership is a period of time that customer could purchase the condominium style resorts in the fixed weeks or pointed clubs for only cost the client a percentage of full vacation resort budget.  Customers should pay annually and use it a specific period of time each year.

      Hyatt Vacation Club

       Vacationers can enjoy the excellent hospitality services and luxury          club facilities that they can expect.

       Hyatt membership provides you to access fifteen vacation clubs,              more than 400 Hyatt hotels and an additional 2,400 resorts through        the company's exchange affiliation with Interval International.

Four Seasons Residence Club

The Four Seasons Residence Club in California offers
you a unique pacific coastal community for vacation.
Vacationers can also enjoy the personalized services
 and amenities of a Four Seasons hotel or resort in
 the world by joining the membership program.

                                                                                                                      

Accor Vacation Club

Accor Vacation Club in Australia is popular for the family to enjoy their summer vacation.  Accor Vacation Club provides the " home-away-from-home" feelings, large size and amenities bring the                                                                                          sunshine to each family.

Pros and cons of Vacation ownership

Vacation Ownership is one of the timeshare properties which offer the customers better accommodations and environment to their vacation.  As typically we can enjoy the luxury and grand facilities and services in the vacation each year compared to the hotel rooms.  The vacationers can have a relax and stress-free holiday that exceed other hotels and vacation plan can provide.

Also, the vacation club membership can allow us to join other clubs' resorts and hotels around the world. Customers could enjoy the membership benefits to vacation, dining and shopping.

However, it is not the best choice for customers who will not take vacation each year.  It is not flexible plans to pay the fees for each year to have the vacation ownership.  Also, people will be easy to get bored by the vacation facilities and services when they go usually each year.  When the vacation club can not tempt the customers who might want to end up their ownership or change to another club.

Reference:
http://development.starwoodhotels.com/development_opportunities/management_services

http://www.mamaison.com/development.html

http://www.hyattresidenceclub.com/hvc/en/offers.html

http://www.accor.com/en/franchise-and-management/our-contracts/management-contract.html                                                            http://accorvacationclub.com.au/resorts/ 

http://www.fourseasons.com/find_a_hotel_or_resort/?c=t&_s_icmp=tmenu  

CH.3 Hotel Business - Different Types of Hotels

CITY CENTER

Here is an example of city center hotel - New York Hilton Midtown, a 4-star hotel which locates at the city center of New York City. It is very suitable for businessmen and tourists because it is near to tourist spots.

RESORT

Next is Osprey. It is rated as the best resort hotel in USA.  It is located at Beaver Creek, far away from the city center.  People should try this hotel if they have a long vacation and want to live quietly.

AIRPORT

This is Grand Hyatt DFW, which is integrated into International Terminal D and is accessible from all terminals at the Dallas/Fort Worth International Airport.  Travelers who want to live near to the airport are highly recommended to try this hotel.  It also has a lot of positive feedback from the customers.

MOTEL

This is a Motel 6 Oceanside, which is located near to the coast highway in California and also the coast.  It provides spa services and reasonable prices.  If you drive to travel California, Motel 6 is a good choice for lodging. 

CASINO

When you talk about casino, Las Vegas will always come to your mind.  Caesars Palace Hotel is a grand and famous hotel in Las Vegas. You can have some crazy nights and maybe some gambling there.  Go visit it when you go Las Vegas for vacation.  The movie "Hangover" was filmed there ! 

CONVENTION

Next is San Francisco Marriott Marquis Hotel.  It is a convention hotel which provides facilities for groups conventions.  It is usually not for causal lodging and travelers.  It receives a lot of positive comments from previous customers. 

ECONOMY

There is also hotels which are economy such as USA Economy Lodge located at Birmingham.  It provides economy rent from $34USD daily or $119USD weekly.  It is suitable for backpackers or leisure travelers.   However, this kind of lodge will not provide many services other than lodging service.  If you hope to enjoy more extra services, this economy lodges may not be your first choice. 

BOUTIQUE

Petit Ermitage Hotel, located on Beverly Hills, is a good example of boutique hotel. It has nice and special setting of everything, for example, interesting style, unique decoration.  This kind of hotel not only give you a lodging service, but it also provides you an impressive experience in your life time. 

CONDOTEL

Condotel is known as a combination of hotel and condominium.  Similar with extended-stay, the services it provides is more like residential services than hotel services.  The stay time is also relatively longer, maybe 1-4 weeks.  It is usually for a family's vacation.  The condotel shown in the picture is Big Balloon, located at South Carolina. 

EXTENDED-STAY/ALL-SUITE EXTENDED STAY

Majority of guests are long term, probably one month or few months.  It is more like an apartment than a hotel.  Some all-suite extended stay hotel provides with kitchen and other facilities that you can find at home. The hotel shown in the picture is First Hill Apartments, which is at Seattle. 

BED & BREAKFAST

A very small scale hotel business that done by the house owners who probably also live in the house.   Something like host family, and it provides lodging service and breakfast.  Generally, the price is more reasonable and it is a good option for low-budget travelers.  Moreover, warm greeting and a sense of harmony are the great selling point of this kind of hotels.  That is Eagle & Rose Inn, Middletown in California.

MIXED-USE

Very similar to extended-stay, it is a kind of hotel that provides different kinds of lodging services such as periodic and permanent.  Comparatively speaking, facilities are more practical, so they would not be very grand and fancy.  Here is an example, America's Best Value Inn in San Francisco.

Woodlyn Park

UNUSUAL HOTELS

Woodlyn Park has a variety of Unusual lodging experiences for you to try.  Join Billy Black and his team at their famous Woodlyn Park location to experience New Zealand traditional crafts and shows in these amazing properties.

A single underwater room in a Swedish lake near Stockholm.  The Utter Inn is the brainchild of Mikael Genberg, a local artist and sculptor who has chosen to focus on "making art for the public".  The single room of the hotel lies 3m below the surface of Lake Mälaren in Västerås, Sweden and contains only twin beds and a table. 

Originally a place for friends to stay while they enjoyed the hunting and fishing resources of the Hulio Hulio reserve, the name is from a favourite book of the owners.  The story describes a mountain that has magical powers and grants wishes – The Magic Mountain.  With a waterfall cascading from the pinnacle of the roof, the lodge is indeed a special place.

Eve, Eryn and Melody are three spherical treehouses, suspended in a patch of Vancouver Island forest.   Beautifully crafted, the joinery is yacht-style with brass trim, varnished wood and cane doors.  Even the smallest, single-person-sized Eve, provides a spiritual connection for guests to the forest, swaying in time with the trees to encourage creative thought.

Reference:
http://www.rainbowskill.com/wp-content/uploads/2010/03/Hotel.jpg
https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi-V6N1GLERnQJLjMxiHvjKwJjQW8D0Rz-tp3GP_o74EDri_brOF_fCvomGmkKk-Uy5PFqoh3Ic7Jr94Osnk_FuTAzRBia792iWS8klGmHmCUs0wU7DU6H_rAGUQKlDTg2mQRFm-9NmFVg/s1600/Beijing+International+Hotel.jpg
http://www.destination360.com/north-america/us/florida/south-florida-beach-hotels
http://www.hotels-st-lucia.com/images/hotels-vacation-club-1.jpg
http://www.enodiahotel.com/background/653/27-NIGHT-VIEW-POOL.jpg
http://www.letstravelzine.com/wp-content/uploads/Taj-Mahal-Palace-Hotel-Mumbai.jpeg