SOLUTION: summary of the report’s content | My Assignment Tutor

Guideline for HM606 Guidelines Title of the Report: Abstract: This should be a brief summary of the report’s content. It should not be longer than a quarter of a page in this instance. It should point out the aim of the report and how that was achieved. Avoid detailed description and stick to the main points only. Even though brief the abstract should be clear and well written. Remember it gives the 1st impression to the reader Table of Contents: Pg. ———1 Introduction: should briefly touch on the subject matter and what will be done in the report. You could explain the importance of the subject here Explain the financial contribution that room’s revenue producing areas make to the business unit (hotel group) (20%) Revenue Centres can be explained as the division that generates income for the hotel through the sale of services or products. The two main hotel revenue centres are the rooms division and the food and beverage division. It is no surprise that the rooms division usually makes the most money for a hotel since it usually has the largest amount of space used for guest rooms or support areas within a hotel. The exception be a casino hotel where the majority of guests stay at the hotel to gamble in the casino or restaurants with some attached Some of the revenues sources of rooms division/ accommodation are: Rooms salesConferences sales (?)LaundryTelephone/Wi-Fi Room Service (Food and drink from reception especially nights) Entertainment and leisure ticketsBaby sittingForeign ExchangeSpace rentalsBusiness centre Demonstrate and apply principles of pricing to the room’s product and evaluate the potential benefits of effective practices to profitability (20%) Good pricing decisions are very important to an organisation’s success. For most of them, the only source of profit is through the price charged for products. Company revenue (and profit) is generated through prices, while all other functions produce costs (Kotler 1998) Care must therefore be taken where pricing decisions are made. Demonstrate how some of these influence pricing: Accurate Forecasting Market/Customer understanding (customer perception value) Inventory and demand See week 4 slides for more on this Show how the benefits of some pricing methods below and demonstrate how one or some of them (especially dynamic)are applied in your chosen hotel Traditional approaches: Cost-plus pricing: C calculates prices based on costs plus a standard margin. Competition pricing: Determines prices based on competitors’ actions. Market-based pricing: This follows economic principles of supply and demand. The equilibrium price exists when the supply of hotel rooms in a given market equals the demand for hotel rooms in the same market. In essence, prices rise as demand exceeds supply, and prices fall as supply exceeds demand Value-based pricing sets prices based on estimates of how customers value the product based on their perception. Dynamic pricing (selling the right, product at the right person at the right time using the right channels) also dynamic pricing refers to pricing on demand, based on customer value and demand for hotel room inventory and Price discrimination State and evaluate methods used to optimize profitability as applied to a fixed capacity inventory, recognizing dynamic growth in related technological developments (30%) Hotels by their nature, have a fixed inventory of rooms to sell. These rooms are also extremely perishable. They perish every day; any room that is unsold tonight is gone forever. Moreover, hotel have high fixed cost and lower variable costs. Therefore, to be profitable, innovative solutions have to be designed. Consider: Overbooking Cancellation Loyalty schemes Outstanding service Length of stay management Price fencing/ Rate/Tariff structures Referrals Booking horizons Upselling/cross selling, Repeat Business Loyalty schemes Distribution Channel management Explain how industry codes of conduct, legislation and best practice directly affect accommodation Procedures (10%) Law and regulations are important. They hold organizations, businesses, people accountable for their actions. Without rules businesses would be chaotic. Good codes of conduct attest to professional standards of an organization. It also helps employees understand the standards expected from them. Some Legislation: Guest Registration Data Protection Booking Guests with Disabilities ( Eqiuality Act ) Discrimination Occupiers’ Liability Public Liability Insurance Employers’ Liability Insurance Safety Management Some ethical codes of conduct Respect for the LawHonesty, transparency and trustIntegrityFairnessConcern and Respect for othersCommitment to excellenceAccountabilityConfidentiality Identify the expectations of customers from diverse markets and explain how providers of accommodation meet their needs through effective use of quality management processes and design (In relation to pricing) (10%) Different types of customer -may want quite different things from a hotel, depending on budget, circumstances and temperament. The needs of a conference organiser will be quite different from those of a luxury leisure traveller, or chance guest who has been travelling all day and merely wants a bed for the night, or a family looking for a budget holiday break. However, some of the attributes or benefits a hotel might promote to attract customers to the hotel, include the following: Accommodation style and quality Hotel facilities and amenities Location Value for money Cleanliness and comfort Security/safety or privacy Relaxation, pleasure and entertainment Prestige and fashion Familiarity Availability Customer service and hospitality Ways to quality Consider the type of guest ( What is provided to meet their need) Determine guest needs Establish procedures for service delivery Implement Evaluate and modify Some quality System: The Star Classification Quality Models (Gap model, Perceived quality Model) Reviews sites such as TripAdvisor .com Net promoter scores The International Standards Organisation (ISO) The European foundation for quality management (EFQM) Conclusion: Reminds the reader of the major purpose and key points of the report