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Operational Functions of Hotel

The Director of Operations of XYZ Hotel located at Long Islands, NY, has just joined. XYZ Hotel faces immense competition. The newly appointed Director (Operations) need to understand that alignment of IT in the operational functions of a hotel can significantly enhance the customer satisfaction & guest comfort; improve the productivity of the hotel staff and streamline the major business functions. There are various operational functions that can come under the ambit of information infrastructure.

However, for the purpose of this project, important three functions are emphasized; setting daily room rates, attracting events such as meetings & conferences and housekeeping functions. Setting Daily Room Rates: To set daily room rates, it is important to use the past data in reference to the room occupancy, seasonal room rates, group check-in facilities and market trends affecting the high and low season optimal room rates.

Room occupancy can be calculated as Room occupancy = (Number of rooms let in hotel / Total rooms in hotel) x 100 The following chart clearly shows the relationship between high and low season and the occupancy status as well as the group check-in on the daily room rates. This information can be used to project the revenue per room and

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also forecast the occupancy in the coming years. This helps in revenue management and attaining the high occupancy with high per-room profitability. Revenue per available room (Revpar) is calculated as follows:

Revpar = Occupancy level x Average room rate Event Organizing: Attracting events such as conferences and meetings are major revenue generators for hospitality sector. The cost of organizing meetings and conferences come as flat rates and line item by line item. The concept of flat rates include a combination of services such as meeting room space, food and beverage and audio-visual needs into a meeting package for a flat daily rate on a per attendee basis.

This really helps planners to more easily predict their conference budgets. However, many clients prefer line item by line item, based on the detailed needs of each meeting or event. It frequently creates complicated banquet event orders and requires event planners to pay attention to the overall budget as various aspects of the conference are planned. Another way to attract more clients is by providing customized conference packages.

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