Room Division Operation Management

1.1 Revenue/ yield management

Total revenue is the total income of the hotel from the sales the available rooms in the hotel, for a specific time period. The revenue generation can be rise up if the operational management would be done properly. It indicate that the success of the organisation is due to the techniques used to increase the maximum occupancy of hotel rooms and services. There is the another way to maximize the accommodation is policy under which the customer cannot cancel the reservation in certain conditions or he will pay a penalty. There is another method is the contracting with travel agents in order to achieve full occupancy of the rooms at the hotel. All these methods aim to increase the sales of service and the occupancy of the rooms. The management of the revenue can be done with the proper utilization of the resources.

The revenue can be calculated by this formula:

Revenue = Rent of room * numbers of rooms

Hence, yield management is a variable pricing strategy, which is based on understanding, anticipating etc. so that it make influence on the consumer behaviours so that to maximize the profits of an organisation. As per the above given formula, revenue of a hotel is calculated by multiplying the rent of room into numbers of the rooms. Here, yield management include strategic control on inventory so that it can be sell to the right consumers in a right way. This process gives the result of price discrimination, in which consumers used only identical foods at different pricers. Yield management is used in a fixed amount of resources which are available in a sale. Yield management also include management system which make full control on yield (Wang, 2014). It can be refers differently in various level like by goods, group of goods, market etc.

1.2 Sales techniques to promote and maximise the revenue

The maximization of revenue can be done by adopting these sales techniques:

Price bundling: The price bundling is as effective approach in which the organisation can bundle their different services in one package and then sale at the price of one service.
Pricing on the basis of individual: The organisation can charge their visitors according to their capacity, to maximize the revenues (Saadouli, 2015).
Promotional activities: The organisation can give discount to their customers in the seasonal period. This will increase the occupancy and maximize the revenue. By increasing the marketing strategies by providing quality of products helps to make increase in sales output. By making effective promotional techniques such advertisement, personal selling, e-marketing, pamplets or holdings etc. are the tools of the promotional activity, by usimng all therse factors it also make the great impact on revenues of a products. Thus, by using effective techniques of promotions, it promote and also maximizer the revenue of an organisation.

Selling with suggestive: The organisation should make good relationship with their customers which helps to offer products and services to them. To make better relationship business firm need to advance the efforts through application of code of conducts. Selling with suggestive include all the suggestion and guidelines which are provided by the seller to the customers sop that customers can understand every information personally. It also have various advantages like, it increase the sales and maximize the revenue, it also give personal attention to the customers by making effective relationship with them. All these advantages make positive impact on revenue and it helps to maximize it (Ivanov, 2014).
Up-selling: It is a techniques which are used by the hotel and in general this means that a hotel sells more than the customer got. By maintaining the customer database, it will help to identifuy future conditions and also helps to attract the customers by giving special offers, adopting new packaging techniques or giving them discounts.

Hence, by determining the difference between sales and revenue, increasing the marketing strategies, by rechecking the pricing strategies, expanding the distribution channels, by making diversification in offerings, developing good relationship with people etc. are the strategies which are used in to promote and maximise the revenue of an organisation (Huang and Ji, 2013).

1.3 Evaluation of the usage of forecasting and statistical data in the room division

The statistical data is used to determine the ratio of occupancy. The prediction of demand of the customers can be done with the help of forecasting techniques. These techniques can help to analyse the trends and time when the rooms are occupied. The statistical data and forecasting techniques does help to calculate the total generation revenue per room type. The forecasting is a valuation techniques which is based on historical data, trends, experience of a certain value of an uncontrollable variable for a certain period of time. It is a very useful techniques that executives and managers in the tourism sector use. By the help of this tool, they can set up a plan which is based on past events. Every organisations deicide their statics based on their design, structure etc. so that they can find out actual position of company.

Hence, by using this tool organisation in the tourism sector can predetermine and analysis the level of success in the future and also examined the failure condition too. There are various kinds of forecasting schemes which are used by the organisation, like forecasting, satirical, % trend projection, trend and seasonal, smoothing, expert opinion and Delphi method etc. are used to make effective forecasting of an organisation (Huang, 2014).

Conclusion

This report has concluded that room’s operations management can be done by improving the accommodation and staff services of the organisation. If the legal and statutory requirements would be fulfilled then operational management can be managed effectively. The key aspects of the management of front of the house area can be improved by making an appropriate plan. The reception service and accommodation is the leading factor in the success of organisation. In order to maintain the standards of a hotel and to develop successful activity, given the dynamics of the sector, the organisations must adopt to the new trends. Also staff in hotels should be well trained, motivated and with the necessary skills (Dobrzykowski, 2014).

References

• Dobrzykowski, D. and et.al., 2014. A structured analysis of operations and supply chain management research in healthcare (1982–2011). International Journal of Production Economics. 147. pp. 514-530.
• Huang, C. W. and et.al., 2014. Measurement of tourist hotels׳ productive efficiency, occupancy, and catering service effectiveness using a modified two-stage DEA model in Taiwan. Omega. 48. pp. 49-59.
• Huang, Z. and Ji, Y., 2013. Design and demonstration of room division multiplexing-based hybrid VLC network Chinese Optics Letters. 11(6). p. 060603.
• Ivanov, S. H., 2014. Hotel revenue management: From theory to practice. Browser Download This Paper.
• Saadouli, H. and et.al., 2015. A stochastic optimization and simulation approach for scheduling operating rooms and recovery beds in an orthopedic surgery department. Computers & Industrial Engineering. 80. pp. 72-79.
• Scherer, H.F. and et.al., 2014. Efficient building energy management using distributed model predictive control. Journal of Process Control. 24(6). pp. 740-749.
• Wang, J. and et.al., 2014. Modeling and analysis of care delivery services within patient rooms: A system-theoretic approach. IEEE Transactions on Automation Science and Engineering. 11(2). pp. 379-393.

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