Yield Management Reading Packet

We must know which visitors we can expect. For example, guests for a wedding (because a wedding will be held in one of the halls of the hotel), or businessmen who come for a business meeting, or a family on vacation.

2.3.1 The proposed project will face a high level of repetition as there will be a certain amount of similar or identical hotel rooms and floors. Thus, the workers’ expertise will increase with time. However, the design

They upgrading a hotel first upgraded employee facilities. When a survey at London hotel showed dissatisfaction with workers’ areas, installed new floors, lockers, and showers within three months. Four-seasons needed to get it down to the front line: clerks, bell-staff, bartenders, waiters, cooks, housekeepers, and dishwashers, the lowest-paid and in most companies the least-motivated people, but the ones who would make or break a five-star service reputation. Four-seasons needs employees able and willing to respond on their own to whatever comes up, employees who can spot, solve, and even anticipate problems. That means delegating authority as well as responsibility. Four-seasons pay attention on how to treat employees and make them feel confortable when they work in hotel because employees could bring positive attitude towards customers if they in good mood.

The understanding, learning, feeling and then drawing a conclusion is the main key to achieve the best results in your business. As everybody in the team first has to eat, see, hear and experience what a hotel has to offer and has in order to understand where you are actually working, what is the product you are offering and what can you do about it. Only then, after knowing its disadvantages and advantages, you can start offering the service to your

As we discussed in class, every business is faced with these issues and they are important to managers making strategic decisions. One of the first things learned about business is that if there is no demand for a good or service, the firm that provides it will not continue to exist. Over time the hotel industry has continued to change with market conditions and make itself attractive to business

Report projects population growth as well as retail sales growth, along with a demand for additional hotels. Such growth will increase demand for other services and products. Also, with emphasis on room types, outdoor or indoor rooms, overlooking the beach.

Amber Inn & Suite, Inc. was built in 1979 and is composed of 250 hotels chain empire of which each consisting an average of 120 exquisite guest rooms or suite units. The profits are $422.6 million and deficits of $15.7 million. The Amber Inns & Suite have total of 30,000 rooms. The Company’s objective is to cater mainly to professional clienteles that are traveling with fabulous guest rooms at an economical price. Amber Inn & Suites, Inc. is located in areas amid ten western and Rocky Mountain States with two hundred fifty numerous property hotel chains. In most cases, each property is made up of one hundred twenty single guest rooms or suite units. Amber Inn & Suites Inc. positions its properties on prime areas such as major

Hilton Hotels is one of the biggest players in the US lodging industry. It contributes to about 9% of the total rooms in US lodging market. It has presence in over 78 countries with more than 2500 hotels. Lodging industry is highly capital intensive industry, so to reduce capital expenditure Hilton Hotels opted for self-owned Hotels as well as franchising model with the real estate owners. One of the key features of lodging industry is low switching costs for customers. There is very little margin to differentiate from the major competitors in the industry which include Marriott international, IHG, Accor etc.

3.1 For each hotel, what is the role of technology and the role of operations

• Measuring and reporting on their progress. The internal environmental management tool used within company-managed hotels will be extended to all properties, allowing them to track and report on their commitments and design processes and programs that identify areas of opportunity to drive innovation and efficiencies.

A lot of business travellers want to stay in well known hotels like Mariott or Hilton. Only 16% want to stay in individual hotels. So for the industry it is important to have a very good reputation. Of course the people try to get the best price for a room and most hotels have company rates which are below the normal rack rate. Also important for a booking is the location of the hotel and the bonus programs. For 26% of the guests Airline milage is important. So the hotels have to work with airline companies and they want special conditons as well.

The center of the case is to come to a decision as to the 60 additional rooms reservation is to be accepted. How managers are to maximize revenue capacity and predict efficient forecasts to make good decisions when handling reservations in the case of demand increasing forecasting and overbooking decisions if they are detrimental to customer loyalty.

To remain profitable, hotels must operate with around 65-70% capacity . Due to seasonality, political and economic events, some hotels are finding it difficult to maintain profitable occupancy levels and have started to provide services along multiple levels within the industry's

Hotel rooms that go unoccupied for the evening cannot be stored and used it at a later date

Chan, ESW & Wong, SCK 2006, ‘Hotel selection: when price is not the issue’, Journal of Vacation Marketing, vol. 12, no. 2, pp. 142-159, (Online Sage).