Final Exam Revision.docx

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Department
Dept Tourism,Sport and Hotel Management
Course
3215HSL
Professor
Marleen Pratt
Semester
Spring

Description
Final Exam Revision Week 1: Nature of service operations  Service Package: Week 2: Strategy and Business Planning Marketing  External Environmental Scan: o Societal Factors o Technological Factors o Economic Factors o Political Factors Week 4: Financial Planning and analysis  Assets = Liabilities + Owner’s Equity A = L + OE  Statement of Income: the most comprehensive of all the income related reports as it includes everything, reporting the final profit figure o DOS -> SOS -> SI (Department Operating Statement -> Summary Operating Statement – Statement of Income)  ROCE (Return On Capital Employed) = [Net Income before tax / (Total Assets – Current Liabilities)] x 100  Short Term stability: how liquid the business is (Solvent vs. insolvent) o Current Asset Ratio: used to assess short-term stability Current Assets/Current liabilities  Long Term stability: is concerned with the businesses ability to pay all of its debts o Debt to Assets Ratio: used to assess long-term stability = Total Liabilities/Total Assets x 100 Week 5: Revenue Management  Revenue management is only effective under: o Relatively fixed capacity o Ability to segment markets o Perishable inventory o Product sold in advance o Fluctuating demand o Accurate, detailed information systems o Low marginal sales cost and high capacity change cost  Two major tasks for revenue manager: o Differential pricing: Practice of differentiating products by offering different amenities and restrictions and hence setting different prices for each combination of product, amenities and restrictions. o Inventory control: How many products of each type are available throughout the selling period.  Strategies for Managing Capacity 1. Using daily & weekly workshift scheduling 2. Increasing customer participation 3. Creating adjustable capacity 4. Sharing capacity 5. Cross training employees 6. Using part-time employee  Strategies for Managing Demand 1. Customer induced variability 2. Segmenting demand 3. Offering price incentives 4. Promotion of off-peak demand 5. Developing complementary services 6. Reservation systems and overbooking  Calculate Overbooking 1. C u lost revenue for empty rooms (noshow) 2. C o cost of walking the guest (overbooking) 3. The critical probability: P(d  x)  C u Cu C o x= the number of room overbook d=the number of noshow 4. Statistic: n 2  xi X   Standard deviation () i1  Mean, an average value ( )   n1  In the normal distribution with mean ̅ and standard deviation :  68% of the observations fall with 1 of the mean  95% of the observations fall with 2 of the mean  99.7% of the observations fall with 3 of the mean  Z score: the number of SD away from the mean Z  x  X  X = Probability x  x Z   5. The RevMap:  Step 1: Customer knowledge  Step 2: Market segmentation and selection  Step 3: Internal assessment  Step 4: Competitive analysis Week 6: STR Performance Report  Competitive Set: a group of hotels used primarily for comparison against a subject property for performance benchmarking purposes  Group = rooms sold in block of ten or more and corresponding revenue  Transient = rooms sold at rack, corporate, package, or government rates and corresponding revenue  Contract = rooms sold at rates stipulated by contracts including airline crews and permanent guests  STAR (Smith Travel Accommodations Report) Week 9: Hotel Property Operation  Overall role: protecting and enhancing the financial value of the building and grounds for the hotel owners o Supporting the efforts of all other hotel departments through the timely attention to their E&M needs o Controlling maintenance and repair costs o Maintaining the most valuable asset ‘ the property’ (8-10% revenue) o Controlling energy usage o Increasing the pride and morale of staff o Ensuring the safety of those working in and visiting the hotel  Key areas of responsibility - Engineering: Refers to the application of physics, chemistry and mathematics to design and operate a building that provides a comfortable atmosphere for guests and employees.  Engineering: Designing and operating a building to ensure a comfortable atmosphere  Chief engineer would not (most likely not) have designed the buildings HVAC (heating, ventilating, and air-conditioning) systems but must have a thorough understanding, and with the engineering of the buildings utilities (electrical, water and waste systems).  Managing utilities: lighting, water, waste, gas - Renovation and refurbishment  Plan for the hotel life span, 2-4% of gross sales revenue set aside for refurbishment  6-10 years major refurbishment  Extra costs when refurbishing…: cleaning, unhappy guests may lead to discounts. - Maintenance  Refers to maintaining the hotels physical property  As a hotel ages, maintenance costs generally increase  Size of property, elevators....are the factors leading to the increase of costs  Stick to the budget and organize all the areas to be maintained in checklists o How to manage maintenance  Staffing skills and professionalism affect remarkably to the overall quality of the hotel operations  Chief engineer to administrate the maintenance assistants who possess a variety of skills: mechanic, plumbing, electricity... o Types of maintenance:  Routine/planned Exterior and interi
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