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Rooms Division Department: Operational Issues

I- Forecasting Room Availability: Forecasting room availability is forecasting the number of rooms available for sale on any future date. This type of forecasting helps manage the reservation process, guides the front office staff for an effective rooms management, and can be used as an occupancy forecast, which is, further, useful in attempting to schedule the necessary number of employees for an expected volume of business. In order to forecast room availability, the following data are needed: a) Number of expected room arrivals b) Number of expected room wal !ins c) Number of expected room stayovers d) Number of expected room no!shows e) Number of expected room cancellation f) Number of expected room understays g) Number of expected room chec !outs h) Number of expected room overstays These above!mentioned data help the front office in conduct various daily operational ratios such as: a) b) c) d) e) No!shows " # $number of no!show rooms) % $number of rooms reserved) & '(( )ancellation " # $number of cancellation rooms) % $number of rooms reserved) & '(( *al !ins " # $number of wal !in rooms) % $total number of rooms arrivals) & '(( +verstays " # $number of overstay rooms) % $number of expected chec !outs) & '(( ,nderstays " # $number of understay rooms) % $number of expected chec !outs) & '((

The forecasted number of rooms available for sale for any future date can be trac ed using the following formula: Forecasted Number of -ooms .vailable for /ale # Total Number of 0uest -ooms 1 Number of +ut of +rder -ooms ! Number of /tayovers -ooms 1 Number of -eserved -ooms 2 Number of No!show -ooms 2 Number of )ancellation -ooms 2 Number of )hec !+ut -ooms 2 Number of ,nderstay -ooms 1 Number of +verstay -ooms ,nder non!automated and semi!automated systems, the number of rooms available for sale forecasts can be calculated only upon demand and need and might vary from three!day to ten! day forecasts. 3owever, under fully automated systems, forecasts can be done at any moment for any future period of time. For, computers run forecasts on a room count considerations, hence eliminating tedious labor wor and human error margins. II- Operational Ratios: '. +ccupancy -atios:

+ccupancy ratios measure the success of the front office in selling the hotel4s primary product $i.e. guestrooms). 5elow are some common ratios used in the front office department: +ccupancy -atios shall be computed on a daily basis by the Night .uditor, and communicated to related department managers the next day6 For any ratio to be significant, it should be compared to a certain benchmar , which might include: '. 7ast 8eriod4s -atio 9. 5udgeted or 8lanned -atio :. )ompetitors4 or Industry .verage -atio Occupancy Percentage # $Number of -ooms +ccupied) % $Total Number of -ooms .vailable For /ale) & '(( Multiple Occupancy Percentage # $Number of -ooms +ccupied by More Than One Guest) % $Total Number of -ooms +ccupied) & '(( ingle Occupancy Percentage # $Number of /ingle -ooms +ccupied) % $Total Number of /ingle -ooms .vailable For /ale) & '(( Double Occupancy Percentage # $Number of ;ouble -ooms +ccupied) % $Total Number of ;ouble -ooms .vailable for /ale) & '(( Triple Occupancy Percentage # $Number of Triple -ooms +ccupied) % $Total Number of Triple -ooms .vailable For /ale) & '(( 7et4s consider the following problem: <asin 3otel has 9(= rooms: => are triple, ?( are double and the remaining is single. +n the night of @ay Ath, (: the night auditor counted 'A> rooms occupied, =: are triple, >B are double, and the remaining are single. @oreover, the house eeping department communicated only = rooms $all single) out of order for the night of @ay (Ath, (: a) *hat is <asin 3otelCs +ccupancy -ate for the night of @ay (Ath, (:D 3otel4s +ccupancy -ate # 'A> % $9(= ! =) & '(( # !"#$% & b) *hat is <asin 3otelCs /ingle, ;ouble, and Triple +ccupancy rates for the night of @ay (Ath, (:D /ingle +ccupancy -ate # A= % $AA!=) & '(( # !'#!$ & ;ouble +ccupancy -ate # >B % ?( &'(( # !(#(" & Triple +ccupancy -ate # =: % => &'(( # !$#$( & )# Other Operational tatistics: Average Guests Per Rooms ol* # $Total Number of 0uests) % $Total Number of -ooms /old) Average Daily Rate # $.ctual -oom -evenue) % $Total Number of -ooms /old) Average Rate per Guest # Revenue Per Available +ustomer ,RevPA+- # $.ctual -oom -evenue) % $Number of 0uests) Revenue Per Available Room ,RevPAR- # $.ctual -oom -evenue) % $Number of .vailable -ooms)

7et4s consider the following example: )ordoba 3otel has '9( rooms: >: of them are single and ?E are double. +n the night of (A%'9%(:, )ordoba 3otel4s Night .uditor counted a total of B> rooms occupied, =9 of which were occupied by more than one guest. @oreover, on the same night '9E guests were registered. In addition, 9 rooms were on a complimentary basis. From the 3ouse eeping -oom /tatus -eport $for the night of 9B%''%(E), there were a total of = rooms +ut of +rder, : of which were /ingle. 7astly, the .ctual -oom -evenue for the same night was at the order of F ?,A?(. a) b) c) d) )alculate the .verage 0uest 8er -oom /old )alculate the .verage ;aily -ate )alculate the .verage -ate 8er 0uest $-ev8.)) )alculate the -ev8.-

Ans.er: .verage 0uest 8er -oom /old # '9E % $B> 1 9) # /#$0 Guest Per Room ol* .verage ;aily -ate # F ?,A?( % $B>!9) # 1 '0#'( .verage -ate 8er 0uest $-ev8.)) # F ?,A?( % '9E # 1 $2#'% Per Guest -ev8.- # F ?,A?( % $'9( 1 =) # 1 (%#%% 0# 3iel* tatistic: <ield /tatistics is an operational ratio that needs to be calculated on a daily basis by the Night .uditor and communicated to the -ooms ;ivision @anager to show how successful the -ooms ;ivision ;epartment is selling its rooms at a rate very near the rac rate6 <ield /tatistic is one approach to come up to a solution to <ield @anagement, which is: GMa4imi5e Room Revenue ub6ect to paceH <ield /tatic can be computed in the following way: 3iel* statistic # $.ctual -oom -evenue) % $8otential -oom -evenue) 7et4s consider the following example: The following data is pertinent to the room price and room type rac rates of /inan4s 3otel for the Night of ;ecember '(th, (:: 7umber o8 Rooms >= =( 'A :A Room Type /ingle /ingle ;ouble ;ouble Room Rate F =( F => F >9 F >> Rac9 Rate F >> F >> F E( F E(

'= '? ':

Triple Triple Triple

F ?( F ?: F E(

F B( F B( F B(

)ould you calculate /inan 3otelCs <ield /tatisticD Ans.er:


7umber o8 Rooms Room Type Room Rate Rac9 Rate Actual Room Revenue Potential Room Revenue

>= =( 'A :A '= '? ':

/ingle /ingle ;ouble ;ouble Triple Triple Triple

F=( F=> F>9 F>> F?( F?: FE(

F>> F>> FE( FE( FB( FB( FB(


Total

F9,'?( F',B(( FABB F9,'=> FB=( F',((B FA'( 1!:'$/

F9,AE( F9,9(( F',::( F9,E:( F','9( F',9B( F',(=( 1/):("%

/inan 3otel4s <ield /tatistic # F A,B>' % F '9,?E( &'(( # ""#"$ &

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