...Rate is a method to calculate the average amount paid per room per night. For example, when a hotel earned €100,000 in a year with 500 rooms available, its ADR would be €100,000/500 = €200. ADR alone is not specific enough to function as a key indicator of a hotel’s performance. A hotel may have a high ADR but occupancy can still be low, meaning that the hotel is loosing out on potential profits. The importance here is that ADR is valuable for calculating RevPar. Total Room Revenue Number of rooms sold = € http://www.wikinvest.com/metric/Average_Daily_Rate_-_Hotels_%28ADR%29 2. RevPAR Revenue per available room, referred to as RevPAR, is an indicator used to measure the revenue gained by selling hotel rooms. This indicator is one of the most important ratios of all in the process of RM, as it gives a clear picture on revenue per room and how certain tactics and decisions turn out to either have a positive or negative effect. RevPar is calculated by multiplying occupancy with ADR. This also means, that although RevPar of one hotel might be higher than that of the competitor, this hotel can still have a lower bottom line because of revenue from other departments or a bigger amount of rooms Total Room Revenue Number of available rooms = € 3. Bed occupancy The occupancy percentage for a hotel property is computed daily and can be used to predict demand, however without giving too much detail. Calculating single or double occupancy percentages can...
Words: 3365 - Pages: 14
...Chapter 1 1. Why study operations management? 2. What is the difference between the terms “production management” and “operations management”? 7. Describe the nature of operations management in the following organizations. In doing this, first identify the outputs of the organization and then use the four decision types to identify important operations decisions and responsibilities. a. A college library b. A hotel c. A small manufacturing firm 8. For the organizations listed in question 7, describe the inputs, transformation process, and outputs of the production system. a. A college library b. A hotel c. A small manufacturing firm Chapter 2 12. What is the distinctive competence of the following companies? If you don’t know the distinctive competence, see if you can determine it from the company’s Internet site or articles on the company. a. starbuck Coffee Company b. Hewlett Packard c. Burger King Chapter 3 1. Classify the following types of processes as continuous, assembly line, batch, job shop, or project: a. Doctor’s office b. Automatic car wash c. College curriculum d. Studying for an exam e. Registration for classes f. Electric utility 10. What are the strategies of the following organizations? Is the strategy defined in terms of product or process or both? a. McDonald’s b. AT&T Telephone Co. c. General Motors d. Harvard Business School 14. What techniques or approaches can be used...
Words: 413 - Pages: 2
...Chapter 8: Discussion questions Should every company become a customer focused business? Why or why not? Costumers are the most valuable assets of an organization. Whatever the organization does, either it’s about improving quality or providing variety, all is in order to enhance satisfaction level of costumers. The ultimate aim of organization is to earn customers, satisfy them, retain them and increase the number with time and grow. If an organization could make its costumer happy then it can prosper so the key to success and prosperity of an organization is its ability to value its costumers and make them happy. So in order to achieve profitability and long term benefits every organization should do customer focused business. Why would systems that enhance a company’s relationships with customers have such a big rate of failure? Surveys have shown that 50% of CRM projects did not produce the promised results. The system that is implemented in order to enhance the customer relationship has such a big rate of failure because of various reasons: · Lack of proper understanding of the system and insufficient preparation. · Manager’s inefficiency of not to try to solve new problem without even developing the business process changes and change management programs which are required for the effective implementation of CRM systems. · Implementation of the major system without the participation of its business stakeholders...
Words: 1516 - Pages: 7
...thoughts of how the hotel's management will: make sure that the way it manages the hotel is appropriate to the way it competes for business, and implement any change in the strategy and develop its operation so that it derives the long- term strategy of the hotel. In addition, the report addresses how the performance objectives might have internal benefits; and a concept from OM chapters was applied in the case. The report found that the way the management manages the hotel is appropriate to the way it competes for business. It shows that in order to implement any change in the current strategy, the hotels' management can make alliances or commercial agreements with other business, develop automatic system to offer services and payments and establish a database and provide membership with loyal customers being offered more free services or better prices or awards. The report also shows that adopting the performance objectives are very beneficial to Penang Mutiara. I. Introduction Though there are many luxurious hotels in the South- East region, the Penang Mutiara is considered one of the leading hotels in that region. This is because of a number of factors, including its differentiated strategy, good management, motivated employees and stylish design that support the luxury atmosphere. The aim of this report is to discuss how the hotel's management will: make sure that the way it manages the hotel is appropriate to the way it competes for business, implement any change in the...
Words: 2914 - Pages: 12
... Number: +91 9204550981 ORM Project Report – “Appetite” Restaurant, JK Residency Executive Summary This project report is based on our study of Operations Management at JK Residency’s Appetite Restaurant in Jamshedpur. Started in November 2010, JK Residency can be classified as a 3 Star Business Hotel located ten minutes from Tatanagar railway station. We explored different concepts in Operations Management such as forecasting, aggregate planning, inventory control, scheduling, materials requirement planning, quality control in discussions with the captains at Appetite. The report contains our findings of our study. We have tried to analyse the operations both from a theoretical and an on-ground perspective. The operational processes at Appetite are quite different from those of a manufacturing firm primarily because it is a services business. The report begins with an introduction to the hotel industry in India and an introduction to JK Residency as a hotel. We have also looked at the Organizational Structure of JK Residency – particularly the F&B Services section which controls the Appetite restaurant. Appetite currently uses qualitative methods for forecasting. We have explored the possibility of...
Words: 8974 - Pages: 36
...Introduction: When we start to talk about hospitality and tourism sector and especially in hotel industry, they offer three core product to their consumer: accommodation, food and beverages and these all services are very vital for lodging industry, although the majority of hotels are lead for accommodation, because most revenue deriving from the sales of the rooms (Schneider, Tucker & scoviak, 1999).Hotel room sales account approximately 55% of hotel revenue as against 23% for food and 10% for beverages (British Hospitality association, 2003, table 32, 34 & 36). According to Medlik and Ingram (2003), the operating cost of UK hotel rooms are, on average 26% of room sales producing unit profits up to 74% where as F&B expenses combined are almost 65% of Food and Beverage expanses combined about 35% (table 13 & 18). Thus hotels provides both tangible and intangible products, and its relay on tangible product of food, drinks and accommodation as we discussed in starting, though it’s heavily depend on the sales of intangible products- the service- and its depend on the customer’s subjective interpretation of their experience. And quality rating by consumer can’t be judge because every customer has different grading criteria. That is called ‘Heterogeneity’. Further more the one of the most important features of the hotel product/service is the impossibilities of separation of production from consumption. The production of service and consumption are going simultaneously...
Words: 3365 - Pages: 14
...of Marriott started with a root beer and the first hotel was opened in Arlington, Virginia in 1957. In 1995, Ritz-Carlton Hotel Company became a part of Marriott International after an acquisition. Today, the company is one of the largest company with more than 4000 properties and almost 700 000 rooms in over 80 countries around the world. In order to target and satisfy every customer, Marriott offers 16 hotel brands which are divided to 6 segments: * Luxury: the Ritz-Carlton, JW Marriott…) * Lifestyle Collection: Edition, Renaissance, Autograph Collection Hotels… * Classic, Signature: Marriott Hotels * Select Service: Courtyard, Fairfield… * Extended Stay: Residence Inn, Marriott Executive Apartments… * Destination Entertainment: Gaylord Hotels… Marriott International operates and franchised hotels and licenses vacation ownership resorts, its culture embraces excellence and communication and technological innovations. In the late 1980s, after the successful implementation of Revenue Management in Airlines, Marriott has led the hotel industry in the practice of Revenue Management. It became an early pioneer of Revenue Management in hospitality. They developed a system named One Yield, which focused on improving hotel profits by timing price increases and promotions as well as using inventory controls. In addition, Marriott has also developed the Demand Forecasting System (DFS). It helps hotels to optimize the profits and revenue by figuring out...
Words: 1841 - Pages: 8
...Lisa Nash Case Study: Hard Rock Café DeVry University Managing Supply Operations Professor Albert Lapierre March 14, 2014 Case Study: Hard Rock Café The definition of forecasting is to compile previous data and predict what will happen in the future. Forecasting will help determine to outcome of future sales projections in the business world. The Hard Rock Cafe` uses the following forecasting types: moving averages, weighted moving averages, exponential smoothing, and regression analysis. The reason that Hard Rock uses forecasting is for the long term, short term, purchasing orders, and buying supplies in their Cafés, hotels, and night clubs. The sales forecast for the company is used by the month, year or five year plans depending on the department and its financial responsibility. It is important that the financial choices are made wisely because it will determine how long the company will need to be in contract with various vendors that supply meat, produce, and condiments just to name a few. When there is a desire to expand the business it is very important to have a forecast report to present to the lending institution so there will be an appropriate amount of funds requested to complete the expansion. The method used to determine a manger’s bonus is the weighted measure 40/40/20 and it is based on the last 3 years of sales at their store. If the store has met their sales goal then the manager will receive their bonus. The POS is formatted based on...
Words: 515 - Pages: 3
...Why is demand in tourism different from other industry operations? i. Tourism industry is dominated by small and often owner-managed firms. ii. There is also great diversity in the different types of operation such as hotels, restaurants, pubs and so on and therefore it is difficult to generalize about the organisational structure of organization within the tourism industry [wood 1994]. iii. The tourism industry tends to employ large numbers of individualistic and even idiosyncratic proprietors and managers and its stated that being able to have direct control over the operation is seen as the main attraction of entering the industry for proprietors and managers [Wood, 1997]. iv. Managers in the tourism industry are found to be different in personality from managers in other industry. For example studies by Lockwood [1989], stone [1988] and WORSFOLD [1989] found hotel managers to be more autocratic, assertive, competitive, stubborn, spontaneous, cynical, critical, controlling and practical. What techniques were suggested for improving the quality of services in response to fluctuations in demand? i. The “chase and level strategy” where the firm chase demand by offering flexible working hours, etc. The firm alter the level of demand by utilizing marketing mix [sassier 1976] ii. “Yield management” is used to alter demand by carefully forecasting, overbooking, choosing high yield customers etc. [KIMES 19890] iii. “Intelligence enhancement strategy” is used to analyse historical...
Words: 479 - Pages: 2
... | | | |Lecture Outline | | | |Workforce Planning and Forecasting |In Brief: This chapter explains the process of | | |Strategy and Workforce Planning |forecasting personnel requirements, discusses | | |Forecasting Personnel Needs (Labor Demand) |the pros and cons of methods used for recruiting| | |Improving Productivity Through HRIS |job candidates, describes how to develop an | | |Forecasting the Supply of Inside Candidates |application form, and explains how to use | | |Forecasting the Supply of Outside Candidates |application forms to predict job performance. | | |Talent Mgmt. & Predictive Workforce Monitoring | | | |Developing an Action Plan to Match Projected Labor Supply and Demand |Interesting Issues: The Internet has changed | | |The Recruiting Yield Pyramid |the face...
Words: 5358 - Pages: 22
...MAJoR ITSDI ASSIGNMENT MARRIOTT HOTEL | Group 11 Section –‘X’ | MAJoR ITSDI ASSIGNMENT MARRIOTT HOTEL | Group 11 Section –‘X’ | XAVIER INSTITUTE OF MANAGEMENT,BHUBANESWAR XAVIER INSTITUTE OF MANAGEMENT,BHUBANESWAR MAJOR ITSDI ASSIGNMENT MARRIOTT HOTEL Contents EXECUTIVE SUMMARY 3 Industry Analysis 7 OLC (Organization life cycle): 9 FUNCTIONS 12 APPLICATION INTEGRATION 18 Technological Integration 19 DEPARTMENT SCORECARD 29 CHANGE MANAGEMENT FOR CLOUD STRATEGY 35 Managerial Implication for cloud Strategy (what does the cloud strategy mean for stakeholders) 43 RISK MANAGEMENT 44 CONCLUSION: 45 EXECUTIVE SUMMARY Hotel industry is an essential part of tourism. Expansion of hotel industry inevitably depends on the development of tourism which in turn is responsible for around 40-45% forex earning. Recently initiatives have been taken to boost travel and tourism by the Government. Marriott Hotels: Complete brand portfolio is the most important strategy for Marriott. The company operates in five business segments with each segment having several brands targeting different customer bases (luxury, upper moderate, moderate and lower moderate). This gives it high brand recognition and diversified revenue resources. IT in Marriott (Real Scenario): IT solutions are a large way to...
Words: 8852 - Pages: 36
...Forecasting at Hard Rock Café Managing Operations Across the Supply Chain Trapanger Stephens DeVry University Dr.Thomas Knopp 1. Describe three different forecasting applications at Hard Rock. Name three other areas in which you think Hard Rock could use forecasting models. Sales forecasts: • Long range forecasting: in setting a capacity plan • Intermediate term forecasting: for locking in contracts for leather goods (used in jackets) and for food items as beef, chicken, and pork • Short term forecasting: daily forecasts which contain the effect of special events in the town (including staff forecast) Human Resources: • Bonuses for managers: a 3-year weighted moving average is applied to cafe sales and if the cafe general managers exceed their targets, a bonus is computed • Staff recruitment: Adapt the necessary workforce according expected demand. • Staff management: Determine necessary roles on each section of the restaurant. Menu planning/placement: • Regression analysis. • How could affect price variations on one product to the rest of the elements on the menu • How could affect reorganizations of the menu to the sales. Other possible areas of application: • To include seasonal forecasting in the menu planning • To predict customer...
Words: 541 - Pages: 3
................. 3 3. Introduction........................................ 4 4. Activity 2..............................................5 5. Activity 3..............................................17 6. Activity 4 ..............................................22 7. Activity 5...............................................28 8. Activity 7..............................................38 9. Activity 8...............................................41 10. Activity 9...............................................41 11. Conclusion.............................................43 12. Reference..............................................44 3 Introduction Hospitality industry covers the area within the service industry that includes hotel industry. Room division operation is one...
Words: 8930 - Pages: 36
...Management. Industries such as airline industry or hotel industry tend to adopt this technique to allocate limited resources. Sometimes it is known as perishable asset revenue management or simply revenue management because it is also adopted by companies which deal with highly perishable goods or “services which cannot be stored at all” (Netessine, 2002). Kimes and Wirtz (2003) defined revenue management as “the application of information systems and pricing strategies to allocate the right capacity to the right customer at the right price at the right time”. As pricing serves as an important factor in yield management, I would like to discuss the issues of pricing strategy regarding to the application of yield management. The pricing strategy involves in yield management is commonly known as price discrimination. The hotel or airline industries tend to use this most often due to the following industrial traits: 1. Fixed capacity 2. Predictable demand 3. Perishable inventory 4. Appropriate cost and pricing structures 5. Uncertainty of the demand There are 6 elements in Yield Management. According to Forgacs (2010), Yield Management consists of product definition, competitive benchmarking, strategic pricing, demand forecasting, business mix manipulation, and distribution channel management. [pic] Figure 1: Six elements of yield management (Forgacs 2010) The ideal situation for a hotel in a possible circumstance is to sell every...
Words: 1255 - Pages: 6
...Running head: APPLE’S MAKE VS. BUY Apple’s Make vs. Buy Decision Julynn Middleton Professor Wangemann Hr Management Foundations October 14, 2011 What approaches to recruiting might be best suited for Apple’s talent acquisition? Apple has decided to start producing a product that they previously outsourced to other companies. This decision will ultimately require them to employ more labor and skill in the department making the components. It is obvious that Apple is going to need to hire more power. I suggest that they go about this by starting on the inside. They should first look to internal candidates to move from other departments into the new area. These people are going to already possess the knowledge of the company and have experience too. In addition these employees may be able to provide referrals of their associates for the positions. It is likely that Apple will be able to find a great team among their current labor force. I would also recommend that Apple put together a team of recruiters and go out into the world to look for new and fresh talent. I would start by going to Universities and talking to the technology graduates. These young fresh faces are going to come with a great deal of energy and drive to prove themselves in a company as big as Apple. It may prove to be quite beneficial to the organization to spend a little extra money and get the new ideas, talent and perspectives of the new graduates. I also think that Apple should reach out to those...
Words: 1678 - Pages: 7
