All these factors in the U. K. Assignment

All these factors in the U. K. Assignment Words: 1915

Subsequently, highlight the areas of concern and consider possible strategies for improvement them. To include, an identification of the modern technological developments in the hospitality industry has been made demonstrating how they can support on efficiency and profitability for the properties in the industry. In order to improve the performance Of the Newton Central Hotel budgeting had to be taken as a serious consideration. It’s suggested to list all the hotels operating in the same area and that are providing to the same demographic.

Observe and follow their performance. Take in consideration how long guests stay, the revenue per guest and per room, how many walk-ins they get, the inoculation and no-show rates, and any other relevant information available. Then, calculate and compare your hotel’s strengths and weaknesses of those competitors. Forecast the occupancy rates for the first year, based on the study of comparable hotels, adjusted for the strengths or weaknesses. The budget demonstrates that there is 2800 rooms per Period available but only 2660 were actually available in Period 2.

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The possible explanation of this is that, perhaps some rooms were being refurbished during Period 2. The chart shows clearly that the numbers of Rooms Sold increases from Period 2 to Period 3. Unfortunately, the numbers of Rooms Sold dramatically decrease from Period 1 to Period 2. However, Period 3 has a higher occupancy than Period 1 and Period 2. Table 3 (Room Sold for period 1, 2 and 3) Room Occupancy was planned at 78% in period 1, 79, 5% in period 2 and 75, 5% in Period 3. The actual room occupancy achieved was only 75% in Period 1, 74% in Period 2, and higher occupancy in Period 3 is 82%.

The room occupancy performance also shows how poor bookings were in period 2 and how good was in Period 3. According to Gilding (2002 p. 120) total room sales revenue is a combination of average room rate and actual room occupancy. Therefore, one should keep in mind the occupancy of rooms by day of the week, because declining room rate can be compensated for by increasing room occupancy and vice versa. Average Room Rate was planned to be between EYE, 40 and E 101, 10. In fact EYE, 10 was achieved in Period 1 but it is a concern that Actual Room Rates in Periods 2 and 3 were below plan, especially period 3.

If this trend in falling Room Rates continues; it would be a major problem. According to Jotas and Conman (1997 p. 153) when the potential average room rate has been calculated, the hotel can compare its actual rate to this potential each day or each period. There may be occasions when the actual rate will be higher than the potential. The trend in Rooms Sold and Room Rates result in Operating Revenue falling in every Period. This is solely the result of the number of rooms sold per Period. The chart shows that potential Operating Revenue is high than actual in Period 1.

However, if compare with other Periods, Period 1 does not decrease dramatically, like period 2 and 3. The reason for the poor performance in Period 2 and 3 needs to be explained, possibly bad weather or seasonal changes. Turning to the Costs in these three Periods it is obvious that Total Payroll dramatically increased in every Period, especially in Period 1. This had a huge effect on the Net Revenue as will be seen later. The increase in Total Payroll Costs in all Periods did come mainly from casual labor, than from overtime.

However, casual labor looks to high, need to find out why this was happened. In every Period Related Expenses were approximately on Budget. Around 5% more than potential total Related Expenses. Need to do something with laundry. Hotel spent too much money for this. Operating Costs (Total Payroll + Total Related Expenses) were totally out of control in every Period, because of both Wages and Expenses. Unfortunately, actual Operating Costs were dramatically increased between 9% and 5% more than potential Costs.

Net Revenue (Operating Revenue – Operating Costs) was below Budget in all three Periods. The worst performance was in Period 3 where Net Revenue was 51 5% below Budget. Even in Period 2 the huge increase in costs meant that the Net Revenue was 40% below plan. Even in Period 1 Net Revenue was only 17% below plan. Net Revenue per room sold was near plan in Period 1, but fell in Period 2 where only EYE, 1 was and EYE. 6 in Period 3. This is against a plan of around EYE in these Periods. The priority for the company is to reduce costs over the next quarter.

Both the Total Payroll Costs and Related Expenses have to be reduced back to the levels in Period 1, Period 2 and Period 3. Every line of the Related Expenses has to be examined and kept under control but control of wages is the most important. Room Occupancy must be raised to over 85% and the fall in the average Room Rate has to be stopped. Plans (2010) States that market forecast is a core component Of market analysis. In projects the future numbers, characteristic and trends in your target market. This forecast is based on the forecasted Occupancy Figures which give

Occupancy Rate rising to 80,5% in Period 6 form 76% in Period 4. The average in the first three Periods is around 78%, but since Period 3 showed 82% Occupancy the forecast is realistic. The Average Room Rate has been set at EYE, which is as in the Budget for the previous quarter. The main task for Period 4,5 and 6 is to invest in equipment and materials and minimize the costs of maintaining and operating the facilities. The task was successfully completed. In period 4,5 and 6 amount of laundry is dramatically decreased, what will influence positively on company s Budget.

However, amount of efferent supplies were slightly increased from Period 4 till 6. Casual Wages and overtime have been allowed to stay in the same amount of wages and salary over Period 4 to Period 6. Related Expenses need to the brought back to similar levels as Period 1 and Period 2. The Total Costs will then be brought under control and the result is a realistic Net Revenue Figure compared to Operating Revenue for these three months. Nowadays people create thousands and thousands technological innovations, many of which have now been proven in practice.

The purpose of this assignment is to consider recent technological advances in the industry that improve and streamline ways in which room reservations can be received and processed by the hotel company, or can benefit the residents checked into the hotel -as well as guests using the additional facilities, offering added services or energy saving alternatives In 2012, the electronic locking field will be crowded with new technologies that allow hoteliers more flexibility and cost saving than ever before.

RIFF ; based key cards will be more affordable than ever, near-field communication- enabled mobile devices will finally the States and Great Britain. New technology like crypto-acoustic credentialing will allow guests to skip check-in ND use their phone like a secure room key. Increased supply of RIFF chips has helped reduce prices, and prices are expected to drop even further. Mobile devices equipped with near-field communication technology will allow guests to unlock doors and get in touch with other elements of the hotel trough their mobile. This technology will help hotels to reduce front-desk staff and focus on guest satisfaction.

However, some hotels, for example, The Hotel Brussels in Belgium does not want to reduce front-desk staff. The Hotel installed Mobile Key by Openness to allow guests to bypass waiting in line for he traditional front desk check-in procedure and head straight to their room, using their mobile device as their room key. Even more conveniently, Openness and Intensity integrated their products so that, once a guest downloads the ICE (Interactive Customer Experience) app to their smartened, Mobile Key exists as an accessible service through the ICE menu.

The good example Of offering added service – The Hotel Brussels in Belgium. The technology package for hotel includes a variety of interfaces designed to allow guests to access a hotel’s services including Intensity’s ICE (Interactive Customer Experience) enterprise platform. This is comprised of: ICE TV, for in- room televisions, ICE Connect, for guests’ laptops, and ICE Mobile, for guests’ personal smartness and tablets. Using their choice of these electronic devices, guests can perform functions such as ordering in-room dining, reviewing information about the hotel or local attractions, and scheduling wake-up calls.

Important and handy the additional facility in hotel is the technological babysitter. Parents with little children want to use those facilities which use non-parents like going to gym, going to a bar for drinks or going out to dinner. Thus pitching breaks at parents, pushing the fact that these facilities are on hand is likely to appeal. “Combining these with a cheaper option, supplied room monitors for parents that function throughout the hotel – and advertising hotel holidays on this basis could even stimulate stays from local families”. (Minute, 201 2) There are many ways that can be used to save the energy in the Hotel.

Almost regardless of any new technological innovations one thing that should be done in every single hotel is to replace traditional tungsten bulbs with energy- efficient, compact fluorescent lamps to reduce operating and maintenance costs. Also, maintenance should identify and replace all failing lights in the premises. In recent years, new technology has introduced timers to switch Off the light in non-essential lighting hours. All these factors in the U. K. Hospitality sector are responsible for more than 3. 5 million atones of carbon emissions per year. It is estimated that energy savings of up to 20% are possible across the sector.

B. Rickety (2010). Another way that can be used to save energy it is power from bike. The CEO- friendly brand of Stardom Hotels & Resorts Worldwide has installed a stationary bike with a pedal-powered generator in each of its fitness centers. Customers join associates in a pedal-pushing effort that generated enough electricity to power up flat-screen plasma monitors and laptops for a virtual ribbon-cutting. ” (Hotel Management, 201 2)The new power-generating bikes are just the latest in a series of design features and amenities that enhance the wellbeing of Element guests while offering them tools to be productive and active.

Fitness centers are well equipped and open 24 hours. Saline pools and bikes to borrow are also available. Other green initiatives include: Guest rooms and public spaces are designed to get plenty of natural daylight. Complimentary RISE breakfast offers healthy options including egg white wraps and fruit smoothies. Free Wi-If is available in public spaces and in guest rooms, which also include ergonomic chairs at workstations. To conclude the report Part A: Budgeting; the last three months have shown a big movements in rooms sold and especially in Revenue, of course need to increase results, but in overall there results are acceptable.

However, these were badly affected because of a big increase in operating costs in every period, but mostly in period 3, because actual Room Rate is lower than potential. The better operating Revenue in this Period was lost because of cost increases and the position of the company was worst in Period 3 than in Period 1 and 2. This happened even though sales in Period 3 were much better than in Period 1 and 2. The forecast for the next three Periods is based on some slight improvement in Occupancy Rate and Average Room Rate which are not too high, and a much better control of costs.

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