Thegeneral manager of Kings Hotel, Mr. Hedrick called a meeting todiscuss the reasons for a decrease in sales. It is of great concernto the rooms division due to a fall in room occupancy. Mr. Khan isthe reservations manager employed to improve the room occupancysales. He is responsible for managing the company bookings andensuring that the hotel is fully booked (Cooper & Whittington2010). The reservation manager has numerous decisions that he cantake to increase sales. First, he is the person in charge of decidingthe applicable room rates as well as organizing promotions. He alsonegotiates with travel agents and arranges for commissions in orderto boost sales. Mr. Khan can negotiate better discounts with thetravel agents that will enable the hotel save more. He can alsoarrange for the sales team and offer discounts depending on thedifferent seasons occurring in the tourism industry (Cooper &Whittington 2010). The seasons include peak, high and low seasons.It helps maintain the market share and keep the company running.
Mr.Khan should work with all the departments to enhance uniformity. Heshould ensure that he has a team of qualified staff who possessexcellent communication skills that will facilitate and efficientcommunication between colleagues and clients (Checketts et al.,2010). In addition, he should ensure that his team members arecomputer literate and keep revenue and booking records. On the samepoint, he should make sure that the juniors are trained on how torespond to customer requests and emails in order to boost sales. Theother important decision is to encouraging all the workers to besalesmen. Employees should not be ignored because making themsatisfied in the organization can positively influence the hotel. Agood relationship between the workers and the organization can boostsales because they may encourage their friends to stay at the hotel(Wolos, 2011).
Thereservations manager can also decide to network with other businessesin the locality that tend to attract tourists. These companies mayinclude museums, restaurants and parks among others. It will helpboost their sales as well as satisfying the customers (Checketts etal., 2010). Mr. Khan can arrange for tickets to these attractionsites hence giving clients excursion benefits. Mr. Khan should focusmore on customer satisfaction. Satisfied customers will post positivecomments on the hotel review sites. They are also likely to refertheir friends and family the hotel. It helps increase the companysales.
Thereis a number of steps that can be taken to minimize the spending byhousekeeper and front office manager. First, the housekeepingdepartment deals with company cleanliness and plays a significantrole in giving the company reputation (Enz, 2010). Clients feelcomfortable in clean and well-ordered environments. The housekeepingdepartment ensures that all the rooms are cleaned ready foraccommodation. Accommodation is the largest revenue source to thehotel and also uses a relatively higher amount of expenses such aslaundry and other items that a guest may request.
Thefirst step to minimizing spending is to identify a plan that is easyto follow (Enz, 2010). The current operation should be studied toverify its effectiveness. It should make sure that only the righttools for the job are purchased. They should also ensure that thereare concrete plans established facilitate a smooth flow of operationsduring fluctuations in occupancy. The second step is to create acleaning checklist that includes items to be cleaned as well ashighlighting the different tasks to be done in every room.
Thefront office manager is also an important person at Kings Hotel. Heis the person at the reception in every organization who receives andsees of clients. The first and last impressions in a hotel industryare very crucial (Enz, 2010). Mr. Will is the face of Kings Hotelhence he should ensure that his services leave impressions in theminds of clients. There are numerous steps that Mr. Will should taketo reduce company spending. The first step is to ensure onlycompetent staff are employed to help lead and direct others. Heshould also be in a position to address client`s complaintsexpediently. Finally, he should train other front office staffs inorder to help gain customers` confidence. The behaviors of frontoffice managers directly affect the hotel occupancy (Enz, 2010). Mr.Will should follow up and ensure that outgoing calls are businessrelated, and there is no misappropriation of funds.
Thereare numerous issues arising out of Kings Hotel case. These issuesinclude legal, health and safety as well as security. Kings Hotel isfaced by security threat whereby some of the housekeeping employeesare suspected of stealing hotel supplies (Checketts et al., 2010). Inaddition, there is also a health and safety threat whereby ahousekeeping maid had an accident in hotel`s store when he tried toretrieve cleaning supplies. The supplies had expired two months agobut were not disposed. The girl sustained injuries due to chemicalspillage in her face. As the room’s division head, there arenumerous steps to take that prevent the occurrence of suchsituations.
Thefirst issue affecting Kings Hotel is theft. Majority of the hotelsface theft as a challenge because employees are tempted to stealitems from guests, as well as the hotel (Wolos, 2011). The guestrooms have valuable items, fixtures and technology devices. There arenumerous steps that I would take to prevent theft thus controllingthe situation. Technological advance is the first step. It involvesplacing small electronic gadgets in room items, and once theymisplaced from their original positions, they transmit signals(Wolos, 2011). It will help reduce expenses when buying new items.The other step is employee screening. It helps in safeguardingcompany resources by ensuring hotel cash and items are not beingpocketed.
Healthand safety are another disturbing issues. As the rooms division head,I will ensure that the safety measures at Kings Hotels have improved,and there will be no reported accident. I will act responsibly toeliminate potential hazards in the company. The security ofequipments, employees and guests will be one of the priorities. Theother step is ensuring that supplies are up to date, and the outdatedare disposed of (Checketts et al., 2010). There will be anintroduction of health and safety programs that will be learned byall the members. In addition, I will ensure that the departmentsfollow the laws established to eliminate any form of conflict betweenthe hotel and government. The correct legal steps will be followedwhen is found guilty of theft or any other crime committed by anemployee of the company.
Thereservation manager generates hotel room rates that are used toincrease room occupancy sales. The room rate refers to accommodationrates that exclude beverages, meals, and any other associatedservices. It only caters for accommodation expenses. There aredifferent problems associated with room rates in the hotel. It meansthat hotel managers should create rates that are affordable accordingto the market rate and also provide safe occupancy in order toimprove the bottom line (Wolos, 2011). Mr. Web’s performance is notgood, and thus he should review the Average Room Rate, Average DailyRate, and sales mix techniques. The average room sale incomedetermines the performance of the rooms division and hence Mr. Webshould consider the management report before publishing the rates andensure that they are convincing.
Thesales and marketing manager says that they received more groupinclusive tour bookings that gave low sales due to higher discounts.This is one of the problems that led to a fall in occupancy andsales. The room’s division manager should consider the sales mixmain elements on the saleable rooms in the hotel (Wolos, 2011). Thefirst component is the hotel segments such as the group inclusivetours, honeymooners, and free individual clients among others. Thesesegments should be categorized as bed, bed, and breakfast or fullboard among others. The other element, to consider, is the categoryof rooms available, for example, the single, double and triples. Mr.Web should focus more on maximizing hotel revenues by loweringtariffs to boost sales. The rooms division manager should ensure thatthere are cheap rates for low seasons and raise the taxes when demandis high. These elements are vital when determining an effective salesmix (Checketts et al., 2010).
Theyield of a company is calculated by dividing the yearly net profit bysales of a particular period. Yield is expressed as a percentage andshows the company`s operational efficiency. It also displays thepercentage profit that the company sales generate rather thancontinuing paying hotels costs (Guilding, 2012). The hotel managershould understand the yield rate because a higher rate means that thehotel saves more in profit and vice versa. The actual net profit is £455,805, and the room revenue is £ 1,014,862. Dividing the two andmultiplying by a hundred percent gives a company yield of 44.9 %.
Therevenue per available room (RevPAR) of a hotel industry is calculatedby multiplying the average room rate by the occupancy rate (Guilding,2012). It is considered as the most important ratio because itmeasures the financial performance of a hotel using both room rateand occupancy. The RevPAR matters because it shows how the hotelcharges and fills the rooms. Multiplying £ 154 by 75% gives a RevPARof £ 115.5. The hotel manager can conclude that the Kings Hotelmakes approximately £ 115.5 in sales per room each day. Depending onthe number of rooms that a hotel control, the RevPAR differs from onecompany to the other (Guilding, 2012). Also, even with lower sales, ahotel can record a higher RevPAR.
Theprimary challenge of every hotel is ensuring that it succeeds througha combined effort management and employees. Considering the roomdemand situation remains the same in February, there are numerousrecommendation that I would suggest as the rooms division manager tomaximize the room sales. The first recommendation is ensuring thatthere are policies established to facilitate a smooth flow of dailyoperations (Cooper & Whittington 2010). I will also ensure thatclients are treated and handled well and even assure them of betterdiscounts during their next visit and the referrals.
Theother recommendation is price discrimination. It categorizes clientsinto two groups according to their needs and behavior. Some customerscan pay higher prices while other negotiates for lower prices. I willimpose restrictions on leisure clients who negotiate for lower ratessuch placing deadlines for making their bookings deposits. It will beof importance in boosting the room sales.
Theother important recommendation is overbooking (Checketts et al.,2010). Overbooking helps minimize losses that may occur due tocancelations and shortening of stay period by some clients. Theoverbooked reservations can be shortlisted and in case ofcancelations, the bookings are replaced increasing the room revenue.The last recommendation is inventory control. It helps minimize thenumber of discounted rooms (Cooper & Whittington 2010). I willensure that the hotel reserves rooms for clients who pay a higherrate that leads to increased room sales.
Checketts,M., Granger, M., & Kneebone, S. (2010). Thestrategic exit: how to maximize the value of the sale or transitionof your business.[Pascoe Vale South, Vic.], Abington Park Media.
Cooper,C., & Whittington, L. (2010). HotelSuccess Handbook: practical sales and marketing actions, ideas andtips to get results for your small hotel, B&B, or guest accommodation.London, MX Pub.
Enz,C. A. (2010). HospitalityStrategic Management: Concepts and cases.Hoboken, N.J., John Wiley & Sons.
Guilding,C. (2012).Accounting Essentials for Hospitality. Revised Edition, Routledge.
Wolos,Z, J. (2011). Hoteland motel sales, marketing, and promotion: strategies to impact revenue and increase occupancy.San Francisco, Infinite Corridor Pub.