Alternative Courses Of Action : The Parcel Management Program

1867 Words Aug 13th, 2015 8 Pages
Alternative Courses of Action:
In 2009, the parcel management program was established to manage what would typically be the receiving department of the hotel. In the locations that operate with parcel management, they provide the additional service of receiving all packages and freight, regardless of courier and collect a fee from the recipient upon delivery. In FY15, 31% of total revenue, or $16.9 Million was derived from parcel management services, available at 60 of 105 locations. This also benefits the logistics side of FedEx as 75% of the packages received are from UPS, however 75% of the packages shipped outbound are FedEx, meaning that customers that would typically ship UPS or another competitive courier service are opting to use FedEx due to convenience. From 2005 – current the program has grown to over 105 hotel locations and 11 convention centers. These centers, both business center only and those offering the additional parcel management average well above the national average of a traditional operating center or OPC.
The most reliable measure of success of these locations is determined by analyzing two metrics. The number of annual Group Room Nights (GRN) or number of rooms booked for meetings, conventions, exhibitions, etc. against the amount of annual revenue. If a store generates an average of $4 per Group Room Night, it’s generally considered to be positive in terms of budget over plan and conversely, a source of operational risk or mismanagement or a…
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