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ROOM DIVISION AND REVENUE COLLECTION IN MILESTONE HOTEL

Student’s Name

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Professor’s Name

City

Date
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Contents
Introduction.................................................................................................................................................3
1.1. Accommodation and Front Office Services in Milestone and Hilton Hotels...................................4
1.2 Roles and Responsibilities of Accommodation Staff members.............................................................6
1.3 Legal and Statutory Requirements Applied in Room Division Operations............................................8
1.4 Services Provided by the Rooms Division...........................................................................................10
2.1 Importance of the front of House area to Effective Management........................................................11
2.2 Planning and Management of the Front of the Hotel...........................................................................12
2.3 Operational Issues affecting the Management and Performance of the Front Office...........................13
3.1 Importance of Property Interiors and Design to Effective Management..............................................14
3.2 Critical Aspects of Planning and Management of the Accommodation Services.................................15
3.3 Operational issues affecting the Management and Performance of the Accommodation Service........16
4.1 An explanation of revenue/yield management of Five Seasons Hotel.................................................17
4.2 Sales Techniques used to Promote and Maximize Revenue................................................................19
4.3 Purpose and use of Forecasting and Statistical data within the Rooms Division.................................20
4.4 Calculate Rooms Division Performance Indicators.............................................................................21
Conclusion…………………………………………………………………………………………………………………………………………….22

References.................................................................................................................................................23
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Report on Room Division and Revenue collection in Milestone Hotel

Introduction
Room division entails departments, and personal essentials which are in a position in

providing the kind of services guests expect during their stay in a Hotel (Lee, 2016, pg. 68-77).

The room division is headed by the manager who ensures concerns such as; employee

satisfaction, guest services, security, gifts shops, guest relations and financial obligations are

properly taken care of. This will make the Hotel function awesomely without facing challenges

that can result in bringing threats which ignite collapsing of the organisation.

In-room division, each department ensures there is proper coordination of the activities

associated with them in that customers will get adequate and quality services. This way

Milestone Hotel will maintain a good and well-aerated relationship with customers who in turn

prefer it during the next visit. Aspects of quality services tend to win the trust of customers who

in turn can market the Hotel to their friends who will have the urge to tour the same place as

outlined by Fouad, Elias, & Esam, (2016). In such a manner, the Hotel will attract a large pool of

potential customers.

The report is basing facts on room division and revenue collection in Milestone Hotel.

Milestone is one of the five-star Hotels with an outfit of international standards in London. The

Hotel provides various services to customers from all lanes. Quality of services is given priority,

and nothing is left to chance. This can be noted from the well-groomed employees to the suit and

comfortability which is portrayed. Its management enacts plans on how to attract the attention of

many customers as possible with the aim of maximising room occupancy hence increasing the
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revenue collection in return. Discussed below are aspects which relate to room division in

Milestone Hotel and a comparison is made to other Hotels of the same calibre.

1.1. Accommodation and Front Office Services in Milestone and Hilton Hotels
The accommodation services are essential to customers who choose a Hotel to spend

their nights and have an excellent and comfortable resting experience (Melissen, Ginneken, &

Wood, 2016, pg.35-42). The comparison of accommodation services in Milestone and Hilton

Hotels are not the same. Each Hotel has a different level of providing the services. Discussed

below is the comparison of accommodation services in both Hilton and Milestone Hotels.

Hilton offers both accommodation and front office services. The front office services

range from the time of reception to the departure of the guests. The hotel has an administration

which is the nerve centre. The staff at the administration takes control of billing, cash control and

reconciliation, security, parking, escorting guests to the bedroom, luggage handling and

cloakroom service handling. They also make early morning waking up calls, newspaper and

magazine selling. It serves as a Coordination point for other departments such as HK, FB.

Selling and promotion; tariffs and discounting.

Accommodation services in the hotel involve all housekeeping activities. It offers linen

and laundry services, hotel maintenance, rooms and public area cleaning and provision guest

supplies with toiletries, decorations and what they may request for. All these services are of

quality hence the hotel is rated as a five star.

Milestone hotel is rated a four-star after Hilton, this because it offers services which are

of less quality as of the Hilton hotel. Its front services are controlled by the administration. The
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administration has staff who are liable for offering the services. They manage the guest cycle

from arrival to departure. The services provided in this sequence include reception, caretaking,

cash controlling, security, security, luggage handling and parking services.

Housekeeping services in Milestone are managed by the housekeepers. This staff ensure

that everything is in position and guests are served to their satisfaction. Some of the services

these department offers include; minor repairs and minor maintenance, linen services and

laundry, room and public area and providing the guests with necessities and what they may need

or request for. They also ensure that guests are comfortable in their stay in the hotel.
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1.2 Roles and Responsibilities of Accommodation Staff members


Accommodation staff have different roles they play in making the Milestone Hotel look

great. This is not different in other Hotels as the same services are rendered. The procedure

followed is almost similar since the hospitality industry tends to have a standardised platform on

what each category of staff members are alienated to perform. The diagram below shows how

the staff members are divided to take different duties.

At the front office, the receptionists deal with the welcoming of customers, they assign

rooms according to the orders made by the guests, keep records of the occupied and the vacant

rooms and completing procedures when the visitors arrive and depart. Other responsibilities

include assisting the guests and responding to their questions, preparing bills and collecting the

payment, keeping and ensuring the guest records are kept up to date and making changes to the

guest status where need be. The receptionists are crucial to the Hotel as they represent what the

manager could have done.


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In the same category, security guards are also vital. They provide much-needed safety

which is a priority that can attract customers. Security entails, preventing theft cases, ensuring

customers do not interfere with any facilities within the rooms they have booked and alert the

customers of any accident reported for safety exist from the Hotel.

Housekeeping department has the executive housekeeper whose role is to ensure all the

rooms within the Hotel are in good conditions all the time (Melissen, Ginneken, & Wood,

2016,). Cleanliness tops followed by air conditioning, and room repairs. The executive

housekeeper supervises all the activities aimed at making the rooms to be well-aerated and look

attractive. If any problem concerning rooms is detected, it will be dealt with, and all will be well.

Laundry attendants are esteemed in providing the cleaning of both customers’ clothing

and the beddings of the Hotel. These services earn the Hotel extra income as the fee is levied

when customers need their clothes to be cleaned. Hotels prefer having these services since some

customers tend to have a more extended stay. The revenue collected will be used to in running

beneficial activities within the Hotel. Milestone Hotel owns laundry services which earn the

Hotel extra profits.

Chambermaids are also essential staff members in the accommodation department

(Brody, 2016, pg.34). The primary role of chambermaids is directed to be vigilant in ensuring the

customers are comfortable, and nothing goes wrong in the rooms. Sometimes they are referred as

room attendants. Based on what the chambermaids are outlined to do, customers ask for

clarifications from them on what they are expected to do or the purpose of every safety tool in

the room. If customers fall sick, the chambermaids are responsible for ensuring the health of

customers is restored. Any severe problem in the rooms will be reported to the executive

housekeeper.
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1.3 Legal and Statutory Requirements Applied in Room Division Operations


For a healthy and comfortable stay in a Hotel, there are statutory requirements which

should be followed by the Hotel management without questioning. This is to ensure the rights of

customers are protected, and even their safety is guaranteed (Noone, Enz, & Glassmire, 2017).

Customers are liable to the enjoyment and not harassment of any kind. Each country has its own

rules on how Hotels should behave and treat customers, but there are those internationally

accepted statutory laws which apply to any nation. Milestone Hotel is not an exception. The

following discussion focuses on legal regulatory requirements in Health and safety at work act

1974, data protection act 1998 and personal protective equipment at work regulations 1992.

Health and safety at work act 1974

This act is subjected to ensure the well-being of employers, employees and guests and

ensuring that they stay in a conducive environment (Harper, 2016). Milestone Hotel must ensure

that the staff are well protected and if anything happens to their health while at work, the Hotel

should be liable. Employers and employees working in the hotel need to be aware of the rules

and regulations that are required in their working atmosphere before they start their duties to

avoid injuries. The principle law states that “Regulations such Control of substances hazardous

to health (COSHH), are in force throughout the entire hotel.”

data protection act 1998

Every person’s data and information should be private and confidential. When customers

visit the hotel, they give out information about themselves so as they are secured a room. This

guest information should be kept private and not shared with the third parties. It a customer

discovers that his or her data has been shared with other parties, he or she is supposed to sue the
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hotel for violation of his right to data protection as of act 1998. Therefore, employees in the hotel

are trained to use systems that are secure to keep the customer's details

Personal protective equipment at work regulations 1992

According to this protective equipment regulation, employers have some duties relating

to the conditions and use of personal protective Equipment during the work. Personal Protective

Equipment states that special clothes should be worn by employers during their work time to

protect their body parts because of safety. Under regulations, it is necessary that the equipment is

kept and stored properly before use to ensure that they are in better conditions. Also, protective

equipment should be appropriately maintained, and employees should be well trained on how to

use this personal protective equipment.


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1.4 Services Provided by the Rooms Division


Room division in any given Hotel has many responsibilities and services which are

directed to give customers a comfortable stay as depicted by Robinson et al., (2016, pg.1051).

The focus is drawn to Milestone Hotel and the kind of services the room division offers. They

are as discussed below

Housekeeping services such as cleanliness and proper air aeration in the rooms. It is the

responsibility of the room division to ensure rooms are neat and well-groomed before customers

check-in. This facilitates no complaints to be made by the customers as their comfortability is

assured without any threat of illness.

Security service is part of what the room division offers. Security entails the general

protection of customers residing in the Hotel rooms from being attacked by terrorist or robbed of

their belongings. The Hotel must ensure that there is no such kind of threat and each customer is

well without fear. This will make customers to prefer the Hotel during their next visitation.

Room divisions offer reservations services to customers. When a booking is done online,

it is the work of the room division to ensure there is no overbooking and each customer gets the

room he or she chose. It will be wrong if customers are overbooked and no one can help the

situation. The aspect of overbooking will downgrade the Hotel discouraging customers from the

next visit.
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2.1 Importance of the front of House area to Effective Management


The front of the office creates the first impression on the kind of services offered in the

Hotel. When customers have a glimpse of the front office, they can start admiring the Hotel

through the kind of decorations aligned. The milestone should have a well decorated front office

which is well arranged to give a good impression to customers. Sometimes customers partake the

well-groomed front office to the quality of services offered by the Hotel. The attention of

customers is controlled and taken by the outlook of the front office.

The layout of the front office enhances good air circulation. This layout ensures there is a

smooth flow of work, material, and information through a system. The key to good facility

layout is the integration of the needs of people, materials and the machines in a way that they

create a simple and a well-functioning system.

First impressions are important as they determine the increase or decrease of the

customers received in the hotel. This is because the first impression the guest gets when he or she

arrives at the hotel is what makes him or her pass judgement about the services in the hotel.

Therefore, it is vital for the hotel staff to ensure they give customers a warm welcome and to

make sure that they create a positive impression to attract more customers and maintain the old

ones to the hotel.

The front office is where all activities related to the guests such as arrival, room booking

and assigned ends. Every aspect concerned in getting assigned a room ends at the front office.

After getting a place to rest, guests can interact with other departments for directions and other

instructions concerning their peaceful stay.


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2.2 Planning and Management of the Front of the Hotel


The front of the Hotel defines the general governance and management which is of either

high standards or low standards. Milestone Hotel’s front outlook provides a view of how the

administration governs and control the most respected international hotel. Also, it a symbol of

good governance and the hotel values customers more than anything. Staff members know what

they are assigned to and no one will be just stranded without knowing his or her role. Everything

falls into place, and no confusion is detected.

An organization operates on different levels according to the various department. At the

front office, the levels of technology used are high as compared to housekeeping. This is because

the front office is the department that coordinates all the activities in the hotel. This technique

used enables the organisation in the making of plans effectively and efficiently.

Procedures are also followed as planned by the management to ensure that the services

are well delivered. When guests are received in the hotel, they are sure of observing a given

procedure till they are allocated a room. They are often welcomed by the guests; they sign in as

they get allocated rooms and keys to the rooms. They are given directions by the housekeeping

department until their departure time when they return the keys to the office and pay as they

leave. This procedure helps in ensuring order and a smooth workflow in the organisation.
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2.3 Operational Issues affecting the Management and Performance of the Front Office
Financial budgeting allocated to the front office is low. Milestone does not enjoy large

economies of scale, and thus the budget allocated for activities at the front office is not adequate.

The front office should be allocated adequate funds in that all activities scheduled can happen

smoothly without challenges. This is because this is the nerve centre for all aspects concerning

guests’ arrival and booking procedures. Also, the front office needs to be decorated for attraction

purposes. All these need funds and therefore the front office should be considered to have a

higher budget than other departments in the Hotel.

Marketing strategies are not well arraigned. Milestone Hotel does not have well-aerated

strategies to market itself. The hotel is supposed to align its marketing mix that is pricing,

promotion, place and advertising. The hotel has not priced its services well, and this affects its

management. Also, its promotion and advertisements are not done in the best way possible, and

this is a major issue affecting its management and performance at the front office as it is the

department responsible for this.

The constant push to offer quality services. The staff at the front office are frequently

reminded to give credible and quality services to customers. This is a bad image portrayed. If the

staff members are not reminded, they can give substandard services that might cost the Hotel. It

is appropriate for each staff member to have a self-concern of offering quality services without

any influence. It will be a remarkable aspect when staff members get to work in giving credible

services without being told to.


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3.1 Importance of Property Interiors and Design to Effective Management


The milestone Hotel chose specific interior designs due to friendly costs involved in

maintaining it. The management evaluated different designs and their initial and maintenance

costs so that the profits realized should not be all swallowed. A cost-effective design was chosen

giving the Hotel room in maximizing profits.

The durability of the design is another aspect given weight. Milestone’s interior design

does not require regular maintenance thus providing an appropriate space for the Hotel to use its

gross profits in doing other activities which are meant to improve the performance of the Hotel.

The bedroom layout enhances mobility within the interior space. The bedrooms are

designed in a way that no one is blocked in moving from one place to another. Staff members

can access any part of the hotel without struggling but in the restriction that the rooms are not

occupied. The rooms are designed in big sizes, and this allows guests to enjoy their bedroom

environments without restrictions.

The space left free can be used to accommodate flowers and other beautiful artefacts

which decorate and make the interior of the office to look impressive. Such a beautification will

capture the attention of customers who will be impressed and consider making their ways to the

Hotel whenever they visit London.


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3.2 Critical Aspects of Planning and Management of the Accommodation Services


Operations by the use of technology have brought light in handling guests efficiently.

This is reflected in the time booking, and payments are made online to when the guest checks in

without the need for him or her to travel. The only time the guest shows up is when he or she

checks in. This aspect has simplified everything, and thus guests do not need to travel in that

they can book Hotels for their esteemed conferences or touring places.

In planning, safety precautions should be implemented to ensure the well-being of the

guests. Booking should be planned well to avoid overbooking in rooms. Forecasting should be

done to predict the number of visitors likely t be received in the hotel so that arrangements are

done on how they should be accommodated. These early arrangements help in ensuring smooth

workflow and avoiding problems likely to be encountered in the future.

Procedures should be followed in the use of revenue management strategies in

controlling the increased collection. The management of Milestone Hotel should have ways

which can be used whenever the high season of guests arrives. This is the season when revenues

increase almost double, and the Hotel should make use of this time to maximize their profits.

When procedures are followed keenly, guests are served well to their satisfaction and also makes

work easier for the management team.


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3.3 Operational issues affecting the Management and Performance of the Accommodation
Service
Staff is lacking adequate skills to handle customers. Milestone Hotel lacks programs

which need to train Staff members on proper ways of handling all types of guests. Sometimes,

some rude guests can come and cause havoc. It will require staff members with scaled skills to

handle such customers. It is good to uphold the name of the Hotel without tarnishing it with mare

angriness. The Hotel should have programs to train recruited staff in that they can adhere and

learn on how to treat people.

Financial mismanagement. The accommodation services cannot be improved of the

budget allocated is not adequate. The rooms are also supposed to be sold at favourable prices to

ensure there is profit, and there is extra revenue to help in carrying out the maintenance.The

rooms’ cleanliness, repairs and aeration should be kept at stake without compromising since

guests love a clean and comfortable place. The management of Milestone Hotel should consider

allocating the accommodation department adequate funds to effectively facilitate the activities.

The employee turnover should be maintained well. Enough employees are supposed to be

recruited so as the provision of services runs smoothly and effectively. When there are enough

employees, the quality of services offered is usually high hence there is need to have enough

qualified staff. Also, rewarding employees is necessary. This will motivate them to offer quality

services to guests thus upholding a proper name of the Hotel (Solnet, et al., 2016, pg.212).
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TASK B

4.1 An explanation of revenue/yield management of Five Seasons Hotel


Revenue refers to the amount of cash made through the various services offered to

customers at the Hotel (Kimes, 2016, pg. 247). Its management involves using some techniques

to predict consumer behaviour and product availability to maximize its yield growth. Each day

people book rooms, food and other extra services such as laundry and they have to pay for them.

The data collected for the Five Seasons Hotel displays the number of rooms occupied in May and

the revenue collected is to be calculated in ascertaining whether there were profits realised. The

discussion below outlines how revenue is managed at the Five Seasons Hotel.

There should be inventory management (Kimes, & Ho, 2017, pg.1-15). All transactions

taking places such as the booking of rooms, purchases of food and the payments made to various

services offered to guests should be recorded. This can be made possible by using an inventory

software which ensures there are proper records entered. This will control possible loss of money

through fraud staff members.

Internet marketing of the Hotel. Five Seasons Hotel will be known to many people if

mechanisms of using the internet will be availed. Platforms such as social media will be of great

help in marketing the Hotel. Many people nowadays make use of social media and can easily

find the Hotel accompanied by the kind of services offered. Through the development of the

website links, the Hotel will facilitate online booking and payments to be made as customers will

have been satisfied with what is displayed on the Hotel’s site.

Also, the hotel needs to forecast the demand for its services so as they get light on how

they should operate to maximise profits. Negotiated prices and differentiated structures of tariffs

to maximize room occupancy. Five Seasons Hotel should come up with structured ways of
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ensuring prices are not fixed but are flexible in that the Hotel can attract customers to increase

room occupancy. This strategy is aimed at increasing the revenue collection at an aggregated

profit.
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4.2 Sales Techniques used to Promote and Maximize Revenue


Five seasons Hotel will increase its sales revenue through many ways that will ensure

nothing is left to chance. Discussed below are some of the methods

The Hotel should have different ways which guests can book the rooms. This can be

attributed to either online or manual booking for those who cannot make it online. The two

methods will cater for all types of guests without closing the door for anyone. Online booking

and payments will be availed to those customers who access the internet can while those who

cannot have access; they can come to the Hotel and book manually or book through agents of the

Hotel. This way a large number of customers will be reached hence increasing the revenue.

Five seasons Hotel should sell other services apart from rooms. The kind of services

includes, supper and breakfast making, conference holdings, laundry and transport services. To

attract customers, the Hotel should set standardized prices in that their customers cannot opt for

alternative services from outside which might be cheaper. This will yield and promote

maximisation of revenues collected.

Tariff structures and negotiable rates will allow revenue maximization. If the
hotel allows corporate packaging at times, it will encourage more customers, and they will also
maintain old customers. This is because they will know they can be able to bargain the rates or
they can even be offered packages which are a factor that encourages them to revisit the hotels
hence more revenue generation.
Customer loyalty schemes. The Hotel will be able to retain customers without them

migrating to other Hotels through the offering of quality services.If employees treat the guests

well, they will build a strong relation hence the customers will maintain their visits to the hotel.

This will also attract more customers like the ones who have already visited the hotel will be
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talking in a good manner that makes the hotel sound a perfect place to seek for accommodation

services.

4.3 Purpose and use of Forecasting and Statistical data within the Rooms Division
Forecasting refers to future predictions made concerning improvement that might be

experienced, unlike the current situation. Statistical data is used in bringing forth the forecast of

the performance of an organisation in that the threats of collapsing can be avoided. Discussed

below are ways forecasts can be used within the room division

Forecasting Helps in compiling financial and operational reports. This is a good platform

that can project the future of Five Seasons Hotel and bring forth the expected performance

improvements. The reports outline the kind of transactions done, and thus no single coin will get

lost. Strategies used before can be avoided and new tactics used in seeing the Hotel scale in the

ladder of the quality service offering.

Historical performance trends of the Hotel will be looked at, and new mechanism adopted

to improve the operational aspects of the Hotel. Mistakes made from previous years will help the

management find mechanisms on how to improve and shape the future of Five Seasons Hotel.

This is through improvements in the marketing strategies and the kind of services offered.

Comparisons will be made to another Hotels’ performance. Five Seasons Hotel will have

a chance to compare performance indices from previous years and be able to see which methods

are applied. Then the Hotel can shift to methods that can make it improve in serving customers

well.
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4.4 Calculate Rooms Division Performance Indicators


Performance indicators are used as a clear picture of how the rooms are divided to

generate revenue. Some of the indicators include the occupancy percentage which shows the

total number of rooms occupied about the rooms’ available. Average room rate gives the amount

of the total revenue obtained after the rooms have been sold.The calculations done below portray

the revenue collected by Five Seasons Hotel during May.

rooms occupied
Room Occupancy = × 100
Total number of rooms

180
= ×100 = 83.7%
215

Room Occupancy = 83.7%

total room revenue on a given day


Average Room Rate ¿
total rooms sold

11900
=£ 66.11
180

number of sleepers
Sleeper Occupancy Percentage ¿ ∗100
total possiible sleepers

260
* 100 = 73.23%
355

Revenue per available room¿ average room rate∗occupancy rate


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= 6611*8372 ¿55,347,292
Conclusion

In conclusion, Milestone and Hilton hotels help in offering a range of services in accommodation
to guests which in turn generates revenue. The hotels have workers who are responsible for their
various activities to ensure that guests are offered quality services. Each employee has duties and
responsibilities to carry out in providing the success of the organisation. These hotels maintain
high standards through the offering quality services. In the hospitality industry, room division is
divided into the front office and housekeeping departments which are essential to the success of
the hotels. The front office is responsible for offering administration services while
housekeeping helps in maintain the accommodation premises. The Performance indicators give a
general overview of how the rooms are divided to generate revenue
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References
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Tourism, and Hospitality, 8(1).

Harper, D., 2016. Hotels and Resorts: An investor's guide. Routledge.

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Pricing Management, pp.1-5.

Kimes, S.E., 2016. The evolution of hotel revenue management. Journal of Revenue and Pricing

Management, 15(3-4), pp.247-251.

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analysis. International Journal of Hospitality Management, 52, pp.68-77.

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Hospitality Management, 54, pp.35-42.

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Callan, V.J. and Callan, V.J., 2016. Attitudinal similarities and differences of hotel
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