Chapter 12 Planning and Evaluating Operations Managing Front Office Operations Eighth Edition (333TXT or 333CIN)
Competencies for Planning and Evaluating Operations <ul><li>Describe the management process in terms of the functions fron...
Competencies for Planning and Evaluating Operations <ul><li>Explain how front office managers forecast rooms revenue and e...
Management Functions <ul><li>Planning </li></ul><ul><li>Organizing </li></ul><ul><li>Coordinating </li></ul><ul><li>Staffi...
Room Rate Categories <ul><li>Rack </li></ul><ul><li>Corporate/commercial </li></ul><ul><li>Group </li></ul><ul><li>Promoti...
Pricing Strategies <ul><li>Market condition approach to pricing </li></ul><ul><li>Competitive set </li></ul><ul><li>TIMS r...
Historical/Current Occupancy Forecasting Data <ul><li>Arrivals </li></ul><ul><li>Walk-ins </li></ul><ul><li>Stayovers </li...
Percentage of No-Shows <ul><li>Number of Room No-Shows </li></ul><ul><li>Number of Room Reservations </li></ul>Purpose:  H...
Percentage of Walk-Ins <ul><li>Number of Room Walk-Ins </li></ul><ul><li>Total Number of Room Arrivals </li></ul>Purpose: ...
Percentage of Overstays <ul><li>Number of Overstay Rooms </li></ul><ul><li>Number of Expected Check-Outs </li></ul>Purpose...
Percentage of Understays  <ul><li>Number of Understay Rooms </li></ul><ul><li>Number of Expected Check-Outs </li></ul>Purp...
Rooms Available Formula <ul><li>Total number of guestrooms </li></ul><ul><li>–  Out-of-order rooms </li></ul><ul><li>–  St...
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Chapter 12

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Transcript of "Chapter 12"

  1. 1. Chapter 12 Planning and Evaluating Operations Managing Front Office Operations Eighth Edition (333TXT or 333CIN)
  2. 2. Competencies for Planning and Evaluating Operations <ul><li>Describe the management process in terms of the functions front office managers perform to achieve organizational objectives. </li></ul><ul><li>Explain how managers establish room rates, and identify special room rate categories. </li></ul><ul><li>Apply the ratios and formulas managers use to forecast room availability. </li></ul>(continued)
  3. 3. Competencies for Planning and Evaluating Operations <ul><li>Explain how front office managers forecast rooms revenue and estimate expenses when budgeting for operations. </li></ul><ul><li>Describe how managers use various reports and ratios to evaluate front office operations. </li></ul><ul><li>Explain what front office managers can do to plan for disasters. </li></ul>(continued)
  4. 4. Management Functions <ul><li>Planning </li></ul><ul><li>Organizing </li></ul><ul><li>Coordinating </li></ul><ul><li>Staffing </li></ul><ul><li>Leading </li></ul><ul><li>Controlling </li></ul><ul><li>Evaluating </li></ul>
  5. 5. Room Rate Categories <ul><li>Rack </li></ul><ul><li>Corporate/commercial </li></ul><ul><li>Group </li></ul><ul><li>Promotional </li></ul><ul><li>Incentive </li></ul><ul><li>Family </li></ul><ul><li>Package plan </li></ul><ul><li>Internet rate </li></ul><ul><li>Distressed-inventory rate </li></ul><ul><li>Complimentary </li></ul>
  6. 6. Pricing Strategies <ul><li>Market condition approach to pricing </li></ul><ul><li>Competitive set </li></ul><ul><li>TIMS report </li></ul><ul><li>Phaser report </li></ul><ul><li>RateVIEW report </li></ul><ul><li>STAR report </li></ul><ul><li>Rule-of-thumb approach to pricing </li></ul><ul><li>$1 room rate for every $1,000 construction/furnishings cost </li></ul><ul><li>Hubbart formula </li></ul><ul><li>Bottom-up approach to pricing </li></ul>
  7. 7. Historical/Current Occupancy Forecasting Data <ul><li>Arrivals </li></ul><ul><li>Walk-ins </li></ul><ul><li>Stayovers </li></ul><ul><li>No-shows </li></ul><ul><li>Understays </li></ul><ul><li>Check-outs </li></ul><ul><li>Overstays </li></ul>
  8. 8. Percentage of No-Shows <ul><li>Number of Room No-Shows </li></ul><ul><li>Number of Room Reservations </li></ul>Purpose: Helps front office managers decide when (and if) to sell already-committed rooms to walk-in guests.
  9. 9. Percentage of Walk-Ins <ul><li>Number of Room Walk-Ins </li></ul><ul><li>Total Number of Room Arrivals </li></ul>Purpose: Helps front office managers know how many walk-ins to expect, especially when the hotel is near full occupancy.
  10. 10. Percentage of Overstays <ul><li>Number of Overstay Rooms </li></ul><ul><li>Number of Expected Check-Outs </li></ul>Purpose: Alerts front office managers to potential problems when the hotel is near full occupancy and rooms have been reserved for arriving guests.
  11. 11. Percentage of Understays <ul><li>Number of Understay Rooms </li></ul><ul><li>Number of Expected Check-Outs </li></ul>Purpose: Alerts front office manager to probable additional room availability when the hotel is near full occupancy.
  12. 12. Rooms Available Formula <ul><li>Total number of guestrooms </li></ul><ul><li>– Out-of-order rooms </li></ul><ul><li>– Stayovers </li></ul><ul><li>– Reservations </li></ul><ul><li>+ Reservations  no-show percentage </li></ul><ul><li>+ Understays </li></ul><ul><li>– Overstays </li></ul><ul><li>________________________________ </li></ul><ul><li>Number of rooms available for sale </li></ul>

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