Hospitality is one of the major sectors driving the economy of most nations. It is therefore critical and requires competent and proper management for it to thrive and survive in the economy. In the process of its operation and control, some conceptions need to be understood for purposes of revenue computation and record keeping to assist in making informed decisions. This paper, therefore, identifies, highlights and discusses the basic concepts as follows
Computation of ADR, Revenues and Estimation of Rooms Sold
Mon Tues Wed Thurs Fri Sat Sun Estimate the March 16 March 17 March 18 March 19 March 20 March 21 March 21 Average Rooms 185 200 185 200 215 220 190 199 Available Occupancy 50% 70% 75% 75% 83% 87% 40% 69% Rate Estimated 93 140 139 150 178 191 76 138 Rooms Sold Estimated $100 $100 $100 $100 $130 $130 $130 $113 ADR Total Daily Total $9,300 $14,000 $13,900 $15,000 $23,140 $24,830 $9,880 $110,050 Revenue In a situation where the occupancy rate of the hotel room is increased by 3%, there will be a general increase in revenue for week 3 to $122,260. Also, an increase in the Average daily rates by 5% is bound to increase the week 3 revenue to $115,775. Based on that computation, it is evident that to maximize profits; the manager should increase the occupancy rates as opposed to the average daily rates.
The art of making a more refined decision regarding the assets and essential equipment to be used by the employees is central to the performance of a hotel. As a manager in a hotel sector, the decision relating to the kitchen equipment should be rational since some factors should be considered. These include the cost, quality, durability, employees' attitude towards that equipment and finally the use and contribution that it will bring. Concerning the expense of the kitchen equipment, the manager needs to conduct the following in reaching the final decision.
First, the manager should be able to define the problem (Lunenburg, 2011, p. 8). It is the initial step in the process to come up with the right thing. At this juncture, the manager needs to recognize that there is a problem in the kitchen related to the equipment. Logically, the availability of equipment in the kitchen results in efficiency in operation hence the quality of the services. After acknowledging the deficiency in the kitchen section, the manager should subject a broader view into the matter to understand the consequences that it has towards the performance of the hotel, public image, and its general reputation.
Secondly, to come up with the right decision, the manager needs to develop some alternatives. Typically, whenever an individual issue is pressing, alternatives always be subjected to create some options which can be chosen as the best solution. In this context, the manager is to debate about the different prices of the kitchen equipment in the market. While focusing on the cost of the products to create the compelling alternatives, other factors pertaining the use and their input towards the achievement of the departmental objectives are relevant.
Thirdly, besides the development of the possible alternatives, an evaluation is conducted to each one of them. The basis of assessment is to be able to eliminate other expensive options that do not consider the interest of the organization (Lunenburg, 2011, p. 8). Furthermore, some decisions provide a solution to a single institutional challenge, but there are others that once executed assist by providing support to other aspects related to the kitchen. At this level, the evaluation will involve an assessment into the total cost of the facilities and the time it will take for the hotel to regain such an amount. Also, at the current alternative prices, what will be the time that similar products need replacement? The idea is cost effectiveness and also to have facilities that are capable of providing quality foodstuff and which are competent enough to capture the attention of the customers.
The fourth step is making the decision. As highlighted in the third step, a number of the alternative decisions were to be assessed to come up with the best among the existent. At this level, therefore, the manager is to make the best choice base on the assessment records. It is never automatic that only a single choice is to be considered, a combination of alternative may emerge to be the best option hence it is not limited.
The fifth step is the implementation of the solution. A combination of the solutions reached in the fourth step is finally placed in use. In this section, the manager is to make the purchase of the kitchen equipment based on the solution reached as a result of the cost effective assessments made. Such a decision though executed is not the final.
The sixth level involves the monitoring of the solution. In most cases, the solutions made are usually not the actual position of the market. The products of the goods in the market tend to change with time depending on the available promotions, discounts, and other market incentives. Such options may as well influence the decision on what equipment to purchase even after making an original decision. Also, it is prudent for the manager not to make the complete acquisition of the facilities but observe the sample bought and the impacts they are having in the kitchen operation. From the feedback given by the kitchen personnel and the consumers of the customers, the manager is to decide to move forth and conduct entire sales or change to a different brand of equipment which may be expensive but with a better customer feedback and ease of use.
The final decision made by the manager is likely to be competent and informed since it is not only based on the mere opinions but also an assessment conducted. Furthermore, the fact that the purchase of the kitchen equipment was made on phases after accessing the feedback of the customers and the employees makes the decision sharp and more strategic to meet the objectives of the department. Notably, even though the business is directly motivated to maximize the profits and reduce expenses, purchase of kitchen equipment cheaply or expensive is more of an investment in the firm as long as the manager is convinced that the hotel will regain the amount spent after a given period.
Factors that Affect the Room Rates
Charges on rooms can never be the same on a daily basis, at the same time price differentiation must be employed among the existing rooms in a hotel depending on some factors. Some of the common factors influencing the rates of room in a hotel include the following;
The first aspect is the room occupancy and demand (Zhang, and Law, 2011, p. 977). Availability of the rooms and the level of demand determines the rates that the manager will charge in a single room. If the demand is high, the rates probably will have to rise, and if the demand is low, the prices will as well decrease. Also, if most of the rooms are occupied, the few available vacant rooms are likely to be charged at a higher price compared to when the occupancy rate is low. In the corporate world characterized by competition, opportunities need to be made to maximize profits. Therefore, in a situation where all the factors favor the use of an individual hotel raising the demand, charges have to be elevated.
The second aspect involves the location of the hotel, in most cases, if the hotel is located in the areas such as next to a tourist attraction site or within a city the prices of the rooms are likely to be higher as opposed to those located in the remote areas (Zhang, and Law, 2011, p. 977). The reason is, such areas are more convenient, secure and comfortable.
Thirdly is the type of the room. Most hotels offer three categories of rooms which involve the standard, suite or the family rooms. In these rooms, there are different facilities fitted hence rates differs depending on the degree of deluxe.
The fourth-factor concerns aspect of competition. The hotels just like other business sectors engage in competition and therefore in most cases tend to better services so as to lure the customers. As much as they are driven to create and retain customers, their objective to maximize revenue and meet the daily expenditure is not neglected. For this reason, therefore, in the midst of the better hotel deals, rates differentiation are usually employed. The motive of differentiation is not to take advantage of other customers, but it is by the level of facilities, comfort, space, and the high profile the room has depending on the services.
The fifth and sixth factors to be considered are season and day of the week respectively (Zhang, and Law, 2011, p. 978). In a year, there are particular months which are regarded as high seasons for the hotel industry. It is a period when most schools are closed hence many families prefer preparing family vacations. During such periods, the prices of the rooms are usually high as a result of the demand. Contrary to this, during the low seasons, customers are few hence the prices of the rooms tend to be low. Low seasons, therefore, are considered to be the periods of preparedness for the coming high season. Hotels, therefore, tend to operate at low costs making the minimal profit with an ultimate objective of maximizing returns during the high seasons.
Also, considering the days of the week, the charges for the hotels are usually low during the working days but tend to increase during the weekends. It is the weekends that individuals are free from duty hence have an opportunity to go for a vacation, meet a friend or spend some time in a hotel room.
Effect of Employee Health on Performance
The performance of an employee in any given line of duty depends on his or her health condition. Regardless of the competence or experience, the health status of an employee is critical and will translate to the performance of the entire institution (Kompaso, and Sridevi, 2010, p.89). In a situation where a given employee is ill, it implies that the available employees who are in good health condition will have to adjust and share the duties which were initially being performed by that employee. It is because, at a reduced health state, efficiency in the delivery of quality services interfered with making an employee perform poorly. On the contrary, in a situation where the employee is in a good health condition, the level of performance is bound to improve.
The performance of the hotel is not only dependent on the competence, strategic plans executed, efficiency in decision among other factors but it is rooted on the wellness of the employees as well. The health conditions of the workers determine their ability to perform efficiently to meet the objectives of the company. Also, the capacity of the employees to be able to compete favorably in the market and maximize profit compared to its competitors depends on the health of the employees. If the health standards of the employees are good, the business will perform and meet its objectives based on the plans. Conversely, in a situation where the sanitary conditions of the employees are deteriorating, the company will ultimately not meet its target as initially stipulated.
The primary concern of the hotel guests is the quality of service. The overall operations of the employees and the performance of the hotel are dependent on the feedback of the customers who are the guests (Kompaso, and Sridevi, 2010, p.89). In a situation where the health standards of the employees are good, their ability to deliver quality services is higher hence a good feedback which translates to creation and retention of more guests. On the contrary, if the employees are not doing well health wise, their ability to offer better and quality services will be sma...
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