Assignment B

Hospitality Management

Unit 6: Rooms division operations management.

AB173H6

Research into occupancy and room revenue with an example of techniques to maximize and measure them.

Written by Mrs. F. Balogun

20th February 2015

Introduction.

In this assignment will be exploring the various aspects of room revenue and occupancy and talk through the techniques used to measure and maximise them. I will also describe the concept of yield management and how sales techniques can increase the revenue. Moreover I will discuss how performance indicators are used to measure goal achievement in accommodation sales.

Yield/revenue management

Yield/revenue management is main aim is to maximise the revenue yield from a combination of selling price and amount of services sold. Yield management is a tactic used by many businesses in the hospitality sector. For example in yield management the business owner will sell a hotel room, but not take into account the related spending associated with it, is what yield management focus on. The other hand revenue management is similar to yield management, it takes into consideration the related sales. Yield/revenue management can be worked out with a simple formula.

Sales techniques

There are many and various techniques used to promote and to increase revenue, the first of which is the use of pricing/discounts and promotions if these are used throughout the year in marketing to attract guests and customers. They increase potential revenue during the slow seasons and help to keep sales high in the peak times. This method creates revenue and also is a way of expanding the customer base. For example a hotel offers one night free if the guest spends a certain amount of nights and profits from related sales such as meals service or spa services.
The larger hotel chains often opts for television advertisements and billboard posters, but as most hotels are small business they tend to rely mainly on social media and word of mouth, currently the social media method of advertising is the most effective as it not only ties in with word of mouth but it provides cost effective and worldwide promotion.

Forecasting and statistical data in room division.

To use forecasting in room division the manager should collect ample data to help manage the reservation process and to help make the best decisions for the business. The data the room division team will need to collect is the number of expected room arrivals, number of expected room walk-ins, number of expected room stay overs and the number of expected room no-shows. Once the data has been collected it can be converted into statistical data, such a pie or bar chart. This will give the staff easy to use visual data to see what room are not