The document discusses planning and evaluating front office operations in hotels. It covers competencies such as establishing room rates, forecasting rooms revenue and expenses, and evaluating operations using reports and ratios. Various room rate categories, pricing strategies, occupancy forecasting data, and formulas for determining rooms available are defined.

1. Chapter 12 Planning and Evaluating Operations Managing Front Office Operations Eighth Edition (333TXT or 333CIN)

2. Competencies for Planning and Evaluating Operations Describe the management process in terms of the functions front office managers perform to achieve organizational objectives. Explain how managers establish room rates, and identify special room rate categories. Apply the ratios and formulas managers use to forecast room availability. (continued)

3. Competencies for Planning and Evaluating Operations Explain how front office managers forecast rooms revenue and estimate expenses when budgeting for operations. Describe how managers use various reports and ratios to evaluate front office operations. Explain what front office managers can do to plan for disasters. (continued)

4. Management Functions Planning Organizing Coordinating Staffing Leading Controlling Evaluating

5. Room Rate Categories Rack Corporate/commercial Group Promotional Incentive Family Package plan Internet rate Distressed-inventory rate Complimentary

6. Pricing Strategies Market condition approach to pricing Competitive set TIMS report Phaser report RateVIEW report STAR report Rule-of-thumb approach to pricing $1 room rate for every $1,000 construction/furnishings cost Hubbart formula Bottom-up approach to pricing

7. Historical/Current Occupancy Forecasting Data Arrivals Walk-ins Stayovers No-shows Understays Check-outs Overstays

8. Percentage of No-Shows Number of Room No-Shows Number of Room Reservations Purpose: Helps front office managers decide when (and if) to sell already-committed rooms to walk-in guests.

9. Percentage of Walk-Ins Number of Room Walk-Ins Total Number of Room Arrivals Purpose: Helps front office managers know how many walk-ins to expect, especially when the hotel is near full occupancy.

10. Percentage of Overstays Number of Overstay Rooms Number of Expected Check-Outs Purpose: Alerts front office managers to potential problems when the hotel is near full occupancy and rooms have been reserved for arriving guests.

11. Percentage of Understays Number of Understay Rooms Number of Expected Check-Outs Purpose: Alerts front office manager to probable additional room availability when the hotel is near full occupancy.

12. Rooms Available Formula Total number of guestrooms – Out-of-order rooms – Stayovers – Reservations + Reservations  no-show percentage + Understays – Overstays ________________________________ Number of rooms available for sale