The document discusses various topics related to front office management functions including planning and evaluating operations, establishing room rates, forecasting room availability, budgeting for operations, and evaluating front office operations. It provides details on management functions like planning, organizing, coordinating, staffing, leading, controlling, and evaluating. It also discusses evaluating tools like daily reports, occupancy ratios, revenue analysis, income statements, room schedules, budget reports, operating ratios, and ratio standards.
this slide discuss the dties and responsibilities of hotel front office staff . this also gives an idea of the hierarchy and organizational chart of hotel front office department.
this slide discuss the dties and responsibilities of hotel front office staff . this also gives an idea of the hierarchy and organizational chart of hotel front office department.
Introduction to Reservations Department
Role of Reservations
Modes of Reservation
Sources of Reservation
Types of Reservation
Amendment Policy
Cancellation Policy
Introduction to Reservations Department
Role of Reservations
Modes of Reservation
Sources of Reservation
Types of Reservation
Amendment Policy
Cancellation Policy
MBA Finance with 9 years of Experience in Accounts, Finance , Audit , Budget and Costing
Section Manager : Budget Planing , MIS reporting , Financial analysis
Good exposure of Automobile industry Manufacturing area
Front office revenue management & it’s application in the hotelMudit Grover
• Revenue management & it’s application in the hotel industry
• Revenue Management
• Revenue: Money that hotel collects from the sale of rooms or from the sales of product & services
• Revenue Management: The process of examining & factoring in consumer behavior to achieve the max. amount of profit from a perishable good.
• Revenue Manager: Individual responsible for decision making necessary to maximize the property’s long term RevPar.
• What is Revenue Management??
• It is an umbrella term for a set of strategies that enable capacity constrained service industries to realize optimum revenue from operations.
• Making the very best use of product is yield management.
• Therefore, yield management is the management in the terms of maximizing revenue generation and also called as Revenue Management or Revenue Enhancing Technique.
• “The hotel’s aim should be high profit business rather
than high volume business”.
• Objectives of Revenue Management
• Role of Revenue Manager
• Yield Management Team
• Benefits of Yield Management
• Measuring Yield
• Revenue Management Tools
• Revenue Management Software
• Software should be much faster and more accurate.
• System should be able to monitor & mange risk automatically.
• Identify the dates when demand is low/high & revenue is low/high.
• Software should be able to guide about the provision about the special events/festivals etc.
• At last a repot to be printed suggesting about the amendments in terms of rates, occupancy, revenue etc, for maximum benefit of organization.
• Conclusion
Revenue management is system that attempts to understand, anticipate and then react to consumer behavior in order to maximize profit. Therefore, a revenue manger should be able to decide a room should be sold on rack rate for a day or two would be more profitable for the same room sold at discounted rate for a longer time which is the main objective of revenue management.
Thus a yield management team should predict the demand of the rooms, allocate the right number of rooms to various market segments by using revenue management tools in order to maximize the occupancy so as
to maximize and optimize profit.
Digital Commerce Lecture for Advanced Digital & Social Media Strategy at UCLA...Valters Lauzums
E-commerce in 2024 is characterized by a dynamic blend of opportunities and significant challenges. Supply chain disruptions and inventory shortages are critical issues, leading to increased shipping delays and rising costs, which impact timely delivery and squeeze profit margins. Efficient logistics management is essential, yet it is often hampered by these external factors. Payment processing, while needing to ensure security and user convenience, grapples with preventing fraud and integrating diverse payment methods, adding another layer of complexity. Furthermore, fulfillment operations require a streamlined approach to handle volume spikes and maintain accuracy in order picking, packing, and shipping, all while meeting customers' heightened expectations for faster delivery times.
Amid these operational challenges, customer data has emerged as an important strategy. By focusing on personalization and enhancing customer experience from historical behavior, businesses can deliver improved website and brand experienced, better product recommendations, optimal promotions, and content to meet individual preferences. Better data analytics can also help in effectively creating marketing campaigns, improving customer retention, and driving product development and inventory management.
Innovative formats such as social commerce and live shopping are beginning to impact the digital commerce landscape, offering new ways to engage with customers and drive sales, and may provide opportunity for brands that have been priced out or seen a downturn with post-pandemic shopping behavior. Social commerce integrates shopping experiences directly into social media platforms, tapping into the massive user bases of these networks to increase reach and engagement. Live shopping, on the other hand, combines entertainment and real-time interaction, providing a dynamic platform for showcasing products and encouraging immediate purchases. These innovations not only enhance customer engagement but also provide valuable data for businesses to refine their strategies and deliver superior shopping experiences.
The e-commerce sector is evolving rapidly, and businesses that effectively manage operational challenges and implement innovative strategies are best positioned for long-term success.
Is AI-Generated Content the Future of Content Creation?Cut-the-SaaS
Discover the transformative power of AI in content creation with our presentation, "Is AI-Generated Content the Future of Content Creation?" by Puran Parsani, CEO & Editor of Cut-The-SaaS. Learn how AI-generated content is revolutionizing marketing, publishing, education, healthcare, and finance by offering unprecedented efficiency, creativity, and scalability.
Understanding
AI-Generated Content:
AI-generated content includes text, images, videos, and audio produced by AI without direct human involvement. This technology leverages large datasets to create contextually relevant and coherent material, streamlining content production.
Key Benefits:
Content Creation: Rapidly generate high-quality content for blogs, articles, and social media.
Brainstorming: AI simulates conversations to inspire creative ideas.
Research Assistance: Efficiently summarize and research information.
Market Insights:
The content marketing industry is projected to grow to $17.6 billion by 2032, with AI-generated content expected to dominate over 55% of the market.
Case Study: CNET’s AI Content Controversy:
CNET’s use of AI for news articles led to public scrutiny due to factual inaccuracies, highlighting the need for transparency and human oversight.
Benefits Across Industries:
Marketing: Personalize content at scale and optimize engagement with predictive analytics.
Publishing: Automate content creation for faster publication cycles.
Education: Efficiently generate educational materials.
Healthcare: Create accurate content for patients and professionals.
Finance: Produce timely financial content for decision-making.
Challenges and Ethical Considerations:
Transparency: Disclose AI use to maintain trust.
Bias: Address potential AI biases with diverse datasets.
SEO: Ensure AI content meets SEO standards.
Quality: Maintain high standards to prevent misinformation.
Conclusion:
AI-generated content offers significant benefits in efficiency, personalization, and scalability. However, ethical considerations and quality assurance are crucial for responsible use. Explore the future of content creation with us and see how AI is transforming various industries.
Connect with Us:
Follow Cut-The-SaaS on LinkedIn, Instagram, YouTube, Twitter, and Medium. Visit cut-the-saas.com for more insights and resources.
When most people in the industry talk about online or digital reputation management, what they're really saying is Google search and PPC. And it's usually reactive, left dealing with the aftermath of negative information published somewhere online. That's outdated. It leaves executives, organizations and other high-profile individuals at a high risk of a digital reputation attack that spans channels and tactics. But the tools needed to safeguard against an attack are more cybersecurity-oriented than most marketing and communications professionals can manage. Business leaders Leaders grasp the importance; 83% of executives place reputation in their top five areas of risk, yet only 23% are confident in their ability to address it. To succeed in 2024 and beyond, you need to turn online reputation on its axis and think like an attacker.
Key Takeaways:
- New framework for examining and safeguarding an online reputation
- Tools and techniques to keep you a step ahead
- Practical examples that demonstrate when to act, how to act and how to recover
The digital marketing industry is changing faster than ever and those who don’t adapt with the times are losing market share. Where should marketers be focusing their efforts? What strategies are the experts seeing get the best results? Get up-to-speed with the latest industry insights, trends and predictions for the future in this panel discussion with some leading digital marketing experts.
Everyone knows the power of stories, but when asked to come up with them, we struggle. Either we second guess ourselves as to the story's relevance, or we just come up blank and can't think of any. Unlocking Everyday Narratives: The Power of Storytelling in Marketing will teach you how to recognize stories in the moment and to recall forgotten moments that your audience needs to hear.
Key Takeaways:
Understand Why Personal Stories Connect Better
How To Remember Forgotten Stories
How To Use Customer Experiences As Stories For Your Brand
Videos are more engaging, more memorable, and more popular than any other type of content out there. That’s why it’s estimated that 82% of consumer traffic will come from videos by 2025.
And with videos evolving from landscape to portrait and experts promoting shorter clips, one thing remains constant – our brains LOVE videos.
So is there science behind what makes people absolutely irresistible on camera?
The answer: definitely yes.
In this jam-packed session with Stephanie Garcia, you’ll get your hands on a steal-worthy guide that uncovers the art and science to being irresistible on camera. From body language to words that convert, she’ll show you how to captivate on command so that viewers are excited and ready to take action.
Mastering Multi-Touchpoint Content Strategy: Navigate Fragmented User JourneysSearch Engine Journal
Digital platforms are constantly multiplying, and with that, user engagement is becoming more intricate and fragmented.
So how do you effectively navigate distributing and tailoring your content across these various touchpoints?
Watch this webinar as we dive into the evolving landscape of content strategy tailored for today's fragmented user journeys. Understanding how to deliver your content to your users is more crucial than ever, and we’ll provide actionable tips for navigating these intricate challenges.
You’ll learn:
- How today’s users engage with content across various channels and devices.
- The latest methodologies for identifying and addressing content gaps to keep your content strategy proactive and relevant.
- What digital shelf space is and how your content strategy needs to pivot.
With Wayne Cichanski, we’ll explore innovative strategies to map out and meet the diverse needs of your audience, ensuring every piece of content resonates and connects, regardless of where or how it is consumed.
10 Video Ideas Any Business Can Make RIGHT NOW!
You'll never draw a blank again on what kind of video to make for your business. Go beyond the basic categories and truly reimagine a brand new advanced way to brainstorm video content creation. During this masterclass you'll be challenged to think creatively and outside of the box and view your videos through lenses you may have never thought of previously. It's guaranteed that you'll leave with more than 10 video ideas, but I like to under-promise and over-deliver. Don't miss this session.
Key Takeaways:
How to use the Video Matrix
How to use additional "Lenses"
Where to source original video ideas
SEO as the Backbone of Digital MarketingFelipe Bazon
In this talk Felipe Bazon will share how him and his team at Hedgehog Digital share our journey of making C-Levels alike, specially CMOS realize that SEO is the backbone of digital marketing by showing how SEO can contribute to brand awareness, reputation and authority and above all how to use SEO to create more robust global marketing strategies.
How to Run Landing Page Tests On and Off Paid Social PlatformsVWO
Join us for an exclusive webinar featuring Mariate, Alexandra and Nima where we will unveil a comprehensive blueprint for crafting a successful paid media strategy focused on landing page testing.With escalating costs in paid advertising, understanding how to maximize each visitor’s experience is crucial for retention and conversion.
This session will dive into the methodologies for executing and analyzing landing page tests within paid social channels, offering a blend of theoretical knowledge and practical insights.
The Pearmill team will guide you through the nuances of setting up and managing landing page experiments on paid social platforms. You will learn about the critical rules to follow, the structure of effective tests, optimal conversion duration and budget allocation.
The session will also cover data analysis techniques and criteria for graduating landing pages.
In the second part of the webinar, Pearmill will explore the use of A/B testing platforms. Discover common pitfalls to avoid in A/B testing and gain insights into analyzing A/B tests results effectively.
The Forgotten Secret Weapon of Digital Marketing: Email
Digital marketing is a rapidly changing, ever evolving industry--Influencers, Threads, X, AI, etc. But one of the most effective digital marketing tools is also one of the oldest: Email. Find out from two Houston-based digital experts how to maximize your results from email.
Key Takeaways:
Email has the best ROI of any digital tactic
It can be used at any stage of the customer journey
It is increasingly important as the cookie-less future gets closer and closer
5 big bets to drive growth in 2024 without one additional marketing dollar AND how to adapt to the biggest shifting eCommerce trend- AI.
1) Romance Your Customers - Retention
2) ‘Alternative’ Lead Gen - Advocacy
3) The Beautiful Basics - Conversion Rate Optimization
4) Land that Bottom Line - Profitability
5) Roll the Dice - New Business Models
The What, Why & How of 3D and AR in Digital CommercePushON Ltd
Vladimir Mulhem has over 20 years of experience in commercialising cutting edge creative technology across construction, marketing and retail.
Previously the founder and Tech and Innovation Director of Creative Content Works working with the likes of Next, John Lewis and JD Sport, he now helps retailers, brands and agencies solve challenges of applying the emerging technologies 3D, AR, VR and Gen AI to real-world problems.
In this webinar, Vladimir will be covering the following topics:
Applications of 3D and AR in Digital Commerce,
Benefits of 3D and AR,
Tools to create, manage and publish 3D and AR in Digital Commerce.
Mastering Local SEO for Service Businesses in the AI Era is tailored specifically for local service providers like plumbers, dentists, and others seeking to dominate their local search landscape. This session delves into leveraging AI advancements to enhance your online visibility and search rankings through the Content Factory model, designed for creating high-impact, SEO-driven content. Discover the Dollar-a-Day advertising strategy, a cost-effective approach to boost your local SEO efforts and attract more customers with minimal investment. Gain practical insights on optimizing your online presence to meet the specific needs of local service seekers, ensuring your business not only appears but stands out in local searches. This concise, action-oriented workshop is your roadmap to navigating the complexities of digital marketing in the AI age, driving more leads, conversions, and ultimately, success for your local service business.
Key Takeaways:
Embrace AI for Local SEO: Learn to harness the power of AI technologies to optimize your website and content for local search. Understand the pivotal role AI plays in analyzing search trends and consumer behavior, enabling you to tailor your SEO strategies to meet the specific demands of your target local audience. Leverage the Content Factory Model: Discover the step-by-step process of creating SEO-optimized content at scale. This approach ensures a steady stream of high-quality content that engages local customers and boosts your search rankings. Get an action guide on implementing this model, complete with templates and scheduling strategies to maintain a consistent online presence. Maximize ROI with Dollar-a-Day Advertising: Dive into the cost-effective Dollar-a-Day advertising strategy that amplifies your visibility in local searches without breaking the bank. Learn how to strategically allocate your budget across platforms to target potential local customers effectively. The session includes an action guide on setting up, monitoring, and optimizing your ad campaigns to ensure maximum impact with minimal investment.
Mastering Local SEO for Service Businesses in the AI Era is tailored specifically for local service providers like plumbers, dentists, and others seeking to dominate their local search landscape. This session delves into leveraging AI advancements to enhance your online visibility and search rankings through the Content Factory model, designed for creating high-impact, SEO-driven content. Discover the Dollar-a-Day advertising strategy, a cost-effective approach to boost your local SEO efforts and attract more customers with minimal investment. Gain practical insights on optimizing your online presence to meet the specific needs of local service seekers, ensuring your business not only appears but stands out in local searches. This concise, action-oriented workshop is your roadmap to navigating the complexities of digital marketing in the AI age, driving more leads, conversions, and ultimately, success for your local service business.
Key Takeaways:
Embrace AI for Local SEO: Learn to harness the power of AI technologies to optimize your website and content for local search. Understand the pivotal role AI plays in analyzing search trends and consumer behavior, enabling you to tailor your SEO strategies to meet the specific demands of your target local audience. Leverage the Content Factory Model: Discover the step-by-step process of creating SEO-optimized content at scale. This approach ensures a steady stream of high-quality content that engages local customers and boosts your search rankings. Get an action guide on implementing this model, complete with templates and scheduling strategies to maintain a consistent online presence. Maximize ROI with Dollar-a-Day Advertising: Dive into the cost-effective Dollar-a-Day advertising strategy that amplifies your visibility in local searches without breaking the bank. Learn how to strategically allocate your budget across platforms to target potential local customers effectively. The session includes an action guide on setting up, monitoring, and optimizing your ad campaigns to ensure maximum impact with minimal investment.
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4. Management Functions
Planning
•Process of thinking about & organizing activities required to achieve desired goal
•Involves creation & maintenance of plan, such as psychological aspects require
conceptual skills
Organizing
• Systematic process of structuring, integrating, coordinating task goals, & activities to
resources in order to attain objectives
5. Management Functions
Coordinating
• Synchronization & integration of activities, responsibilities, &
command & control structures to ensure resources of
organization are used most efficiently in pursuit of objective
Staffing
• Process of hiring suitable candidates according to their
knowledge & skills in an organization
6. Management Functions
Leading
• Act including how to inspire & motivate individuals, manage talent,
influence without authority, & lead teams
Controlling
• Function of establishing benchmarks or standards, comparing actual
performance against them, & taking corrective action, if required
Evaluating
• To judge or calculate quality, importance, amount, or value of
something
7. Front Office Planning Function
Establishing
Room Rates
Forecasting
Room Availability
Budgeting for
Operations
10. Market Condition Approach
How do our rates compare to those of our competition
Are our rates much lower or higher than those of competition
How are our rates affecting our revenue & our share ofbusiness
What is our occupancy percentage
What is occupancy percentage of competitive set
Will our total revenue improve if we increase/decrease rates
Have any trends emerged during past six months
11. Rule of Thumb
• Approach$1 for each $1000, 70%
Occupancy
• Considerations
• Inflation Rate
• Old Value / Current Value
• Extra Services Profitability
12. Hubbart Formula Approach
Calculate hotel’s
desired net income or
return on investment
Calculate pretax
profits
Calculate all operating
costs
Calculate all fixed
expenses
Calculate non room
profit / loss
Determine room
revenue needed to
cover costs & NI / ROI
Forecast rooms to be
sold based on
estimated occupancy
Calculate hotel’s
required ADR
13. Planned Rate Changes
Rates are likely to change during calendar year depending on factors
such as location, seasonality or major event
Hotels may publish Rack Rate Range
Factors reflecting rates
• Peak, high demand
• Off-Peak, low demand
14. Forecasting Room Availability
Thorough
knowledge of hotel
& surrounding
Market profiles of
constituencies
served
Reservation trend &
history lead times
List of special events
scheduled
Business & historical
profiles of groups
Room availability of
competing hotels
Plans for hotel
renovations impact
no of rooms
Plans of competitive
hotels
16. Forecasting Data
Based on Historical Trends & Records
Based on Existing Reservations
• Number of Expected Arrivals
• Number of Walk-ins
• Number of Stay overs
• Number of No Shows
• Number of Under stays
• Number of Expected Check outs
• Number of Overstays
17. Rooms Available Formula
Total number of guestrooms
– Out-of-order rooms
– Stay overs
– Reservations
+ Reservations no-show percentage
+ Under stays
– Overstays
Number of rooms available for sale
18. Sample Forecast Forms
10 Day Forecast
Developed jointly by
FOM & Resv.
Manager, perhaps in
conjunction with a
room availability
forecast committee
Consists of: daily
forecasted
occupancy, groups
commitments &
comparison of
previous period’s
forecasted & actual
room counts &
occupancy %
Prepared for F&B,
banquet, & catering
operations
Help departmental
managers plan their
staffing & payroll
levels for upcoming
period, should be
completed &
distributed in
advance of coming
period
Automated systems
have programs to
help managers
accurately forecast
business
19. Sample Forecast Forms
3 Day Forecast
Updated report that
reflects more current
estimate availability
Details significant
changes or events not
highlighted on ten-day
forecast
Guide management in
fine-tuning labor
schedules & adjusting
availability
Daily revenue meeting is
held to focus on
occupancy & rate
changes for next several
days; results of this often
reflect in forecast
20. Sample Forecast Forms
Room Count Considerations
Control books, charts,
software applications,
projections, ratios, &
formulas can be essential
in short & long-range
room availability planning
Each day in some hotels,
front office management
performs several physical
counts of rooms occupied,
vacant, reserved, &
expected to check out, to
complete occupancy
statistics for that day
Automated system may
reduce need for most
physical counts, since
system can be
programmed to
continually update room
availability information
Important for front desk
agents to know exactly
how many rooms are
available, especially if
hotel is expected to
operate at nearly 100%
occupancy
21. Budgeting for Operations
Forecasting Room Revenues
• Important long-term planning that FOM performs
• Annual operations budget is profit plan that addresses all revenue sources & expenses
• Annual budgets are commonly divided into monthly plans that, in turn, are divided
into weekly & daily
• Budget are standards against which management can evaluate actual results of
operations
• Room revenues & profits are usually greater than for other hotel revenue areas,
accurate rooms division budget is vital to creating hotel’s overall budget
• Budget planning process requires close cooperation of all managers
22. Budgeting for Operations
Forecasting Room Revenues
• FOM’s primary responsibilities in budget planning are forecasting rooms revenue & estimating
related expenses
• Historical financial information often serves as foundation on which FOM build revenue forecasts
• Method of rooms revenue forecasting involves analysis of rooms revenue from past
• Approach to forecasting revenue bases revenue projection on trends of past room sales &
average rates
• Detailed approaches to forecasting rooms revenue consider variety of different rates
corresponding to room types, guest profiles, days of week, seasonality of business, & other
factors
23. Budgeting for Operations
Estimate Expenses
• Expenses are variable, they vary in direct proportion to rooms
• Historical data can be used to calculate approximate % of rooms revenue that each expense item may represent
• These % figures can then be applied to amount of forecasted rooms revenue, resulting in $ estimates for each expense
category for budget year
• Rooms division expenses are payroll & related expenses, guestroom laundry, guest supplies, hotel merchandising,
travel agent commissions & direct reservation expenses, & other
• When rooms division expenses are totaled & divided by number of occupied rooms, cost per occupied room is
determined
• Cost per occupied room is often expressed in dollars & as %
• Method of estimating expenses is to estimate variable costs per room sold & multiply these costs by number of rooms
expected to be sold
24. Budgeting for Operations
Refining Budget Plans
• Budget plans commonly supported by detailed information gathered in budget preparation
process & recorded on worksheets & summary
• Support documents should be saved to provide explanation of reasoning behind budget; may help
resolve issues that arise during budget review & may assist in preparation of future budgets
• Many hotels refine their budgets as they progress through the year: reforecasting is normally
suggested when actual operating results start to vary significantly from budget
• Significant variations may indicate that conditions have changed since budget was first prepared
25. Evaluating Front Office Operations
Evaluating results is management
function; without evaluation,
managers will not know
attainment of planned goals
FOM should evaluate results of
department activities daily,
monthly, quarterly, & yearly basis
Tools use to evaluate success of
operations include: daily report of
operations, occupancy ratios,
rooms revenue analysis, income
statement, rooms schedule,
rooms division budget reports,
operating ratios, & ratio standards
26. Evaluating Front Office Operations
The Daily Operations
Report
Occupancy Ratios
Room Revenue
Analysis
The Hotel Income
Statement
The Rooms Schedule
Rooms Division
Budget Report
Operating Ratios Ratio Standards
27. Evaluating Front Office Operations
Daily Operations Report
• Report of operations is also known as manager’s report, daily report, daily revenue
report
• Summarizes hotel’s financial activities during 24 hours
• Provides means of reconciling cash, bank accounts, revenue, & accounts receivable
• Serves as posting reference for accounting journals & provides data that must be
input to link front & back office automated functions
• Structured to meet needs of individual properties
• Copies are usually distributed to GM & department/ division managers
28. Evaluating Front Office Operations
Occupancy Ratios
• Measure effectiveness of front office & reservations sales staffs in selling
guestrooms
• Include occupancy percentage, multiple occupancy, average daily rate,
revenue per available room, revenue per available customer, & average rate
per guest
• Front office system typically generates occupied rooms data & calculates
occupancy ratios for FOM to review
29. Evaluating Front Office Operations
Occupancy Percentage
• Commonly used operating ratio in front office is occupancy %
• Occupancy % relates number of rooms sold to number of rooms available during specific period of time
• Hotels use number of rooms sold to calculate occupancy percentage, while others use number of rooms
occupied
Multiple occupancy
• Forecast F&B revenue, indicate clean linen requirements, & analyze average daily room rates
• This ratio is also referred to as double occupancy ratio
• Multiple occupancy can be calculated by determining multiple occupancy percentage or by determining
average number of guests per room sold
30. Evaluating Front Office Operations
Average Daily Rate
• FOM calculate average daily rate even though rates within property can vary
significantly depending on type of room, type of guest, day of week, & season
• Hotels include complimentary rooms when calculating average daily rate, to show
their effect on rate
Revenue per Available Room
• Important hotel statistics, provides statistical benchmark for comparison with similar
hotels
• Divides total room revenue of hotel by number of available rooms
31. Evaluating Front Office Operations
Revenue per Available Customer
• RevPAC divides total revenue of hotel by number of guests staying overnight
• Hotels with high volumes of multiple occupancy, RevPAC is especially
important, since it provides average room rate spending figure per guest
Average Rate per Guest
• Average rate per guest is of special interest to resort hotels
• All guests are included in this calculation; some hotels include children
32. Evaluating Front Office Operations
Room Revenue Analysis
• Room variance report lists rooms that have been sold at other than their rack rates
• Managers use room variance report to review use of special rates to determine whether
staff has followed policies & procedures
• FOM evaluates sales effectiveness of front office staff is to generate yield statistic, which
is actual rooms revenue as % of potential rooms revenue
Yield Statistic
• Potential rooms revenue is amount of rooms revenue that can be generated is all rooms
in hotel are sold at their rack rate on given day, week, month, or year
33. Evaluating Front Office Operations
Hotel Income Statement
• Provides important financial information about results of hotel operations for given period oftime
• Reveals amount of net income for given period, so it is important financial statements management uses to
evaluate hotel’s success
• Rooms division information appears on first line, under category of operateddepartments
• Amount of income generated by rooms division is determined by subtracting “payroll & related expenses” & other
expenses from amount of net revenue produced by rooms division
• Payroll expenses charged to rooms division may include those associated with FOM, front desk agents,
reservations agents, housekeepers, & uniformed service staff
• Rooms division is not merchandising facility, there is no “cost of sales” to subtract from net revenue amount
• Revenue generated by rooms division is usually largest single amount produced by revenue centers within hotel
34. Evaluating Front Office Operations
Rooms Schedule
• Income statement contains summary; separate departmental income
statements prepared by revenue center, called “schedules,” provide
details
• Accounting division, not front office accounting staff, usually prepares
rooms schedule
• By carefully reviewing rooms schedule, FOM may be able to develop
action plans to improve division’s financial condition & services
35. Evaluating Front Office Operations
Rooms Division Budget Report
• Hotel’s accounting division prepares monthly budget reports that compare actual revenue & expense
figures with budgeted amounts
• Budget reports can provide timely information for evaluating front office
• Budget report should include both monthly & year-to-date variances for all
• % variances are determined by dividing dollar variance by budgeted amount
• Dollar & % variances are shown because either type of variance alone may not indicate significance of
variances reported
• It should be expected that actual results will differ somewhat from budgeted amounts, since budgeting is
not perfect science
• Significant variances from budget should be investigated by management
36. Evaluating Front Office Operations
Operating Ratio
• Assist managers in evaluating success of front office operations
• Dividing payroll & related expenses by division’s net room revenue
yields one of most frequently analyzed areas of front office operations:
labor cost
• Operating ratios should be compared against standards such as
budgeted percentages; any significant differences should be
investigated
37. Evaluating Front Office Operations
Operating Standards
• Operating ratios are meaningful when compared against useful criteria such as planned ratio
goals, historical ratios, & industry averages
• Ratios are best compared against planned ratio goals
• Industry averages can be found in publications prepared by national accounting firms & trade
associations serving hospitality industry
• Operating ratios are only indicators; they do not solve or reveal source of problem(s)
• At best, when ratios vary significantly from planned goals, previous results, or industry averages,
they are indicating that problems may exist
• More analysis & more investigation are usually necessary
38. Planning for Disaster
Power Failures Automated System
Failure
Criminal Activities Severe Weather
Flood, Rain Fire Terrorism
39. Planning for Disaster
Disaster
planning is
often
overlooked by
managers;
nevertheless, it
is important for
managers to
have disaster
plan in place &
make sure that
staff is familiar
Types of
disasters to
consider, from
power failures
to acts of
terrorism
It is impossible
to plan for
every
conceivable
disaster, but
plans should be
in place for deal
with those that
can be foreseen
Given today’s
level of hotel
automation, it is
important for
disaster plans
to state what
corrective
actions front
office need to
take if essential
technology
applications fail
FOM should
prepare for
possible
criminal activity
40. Planning for Disaster
Severe weather,
floods, & other
natural
disasters
require special
planning to
deal with
Natural disaster
plans should be
coordinated
with local &
regional
disaster
planning
agencies
Fire, terrorism
attack, or
others may
require
complete hotel
evacuation &
shutdown of
operations
Staff must
know how to
conduct
themselves in
situations &
what their
responsibilities
are in assisting
guests &
securing hotel
Managers
should
periodically
review &
update disaster
plans for its
effectiveness,
disaster training
regularly
scheduled &
ongoing activity