Room Management – Operative and Optimization

Topic: Analyse room pricing and distribution channels and evaluate their impact on the
customer experience and revenue optimization.

Introduction:

I n A Hospitality industry, Room Management Systems helps the responsible staff to

manage guest reservations, registrations, charges, and other amenities for smoother business
operations.

It helps to manage accounts, rates, room availability, sales channels, guest data & sales
data. Which helps to pay more attention towards guest, enhance hospitality standards. That is in
direct proportion to Customer satisfaction & profitability.

Body of Essay:

A Hospitality Industry in precise Hotel sector has two major revenue centers (e.g. rooms
department and food-and-beverages department). A few thousand products and services are
sold every day. Each area of specialty requires dedication and a quality commitment for each
department to get little things right all the time.

Room Department need a qualitative and Quantitative Management which makes a

prime priority for the complete operational Intrinsic of the Hospitality sector. Room Divisions
are based on availability, rate, standard, space, occupancy, guest priority, loyalty services, facing,
likes and dislikes of guests, physically challenged friendly etc.. Are the key factors that need to
be considered to lead, control and supervise the Front Desk, Guest Services and Housekeeping
departments which work closely with Reservations to assure and maximize occupancy rate and
revenue and they are also in charge of providing all necessary forecasts. The Room Division
plays a important position since its direct impact with operational team’s motivation and actions
(e.g. front desk agents, bell boys, housekeeper and concierge) – this is the team that is
actually providing the service for the guests.

In a hotel - Rooms division department devoted to handling guests' needs and providing a
smooth and comfortable stay. The rooms department handles everything from taking a guest's
reservation to preparing their room and getting the guest checked in for the night.
 Room division responsibility is to make sure your guests have everything they need to
make their stay relaxing and comfortable. If there is a problem with their reservation or visit, we
are in need to be prepared to handle their complaint - and prevent the problem in the future.

Room Pricing Strategy is the key criteria for a successful business enhancement to seek a
competitive advantage over competitors, which in turn seek an attention to make a best revenue
module management that helps to take control over Availability and Duration parameter of the
Hospitality Sector. Before going to analyze the pricing strategy, we need to look at the various
methods implied to make win-win strategy between customers & business. To name of few that
been considered, Seasonal pricing, Forecasting, Featured based, Location, Vacation,
Competition, Segment, Discounts etc… these well formulated criteria’s brings precession in
formulating defined pricing module both from a revenue perspective and guest perspective .
Demand can be volatile and can vary significantly depending on factors such as the seasonality
and country of origin. Climate and other cultural factors determine the type of  booking that is
expected, providing guests with value for money while trying to maintain a stable bottom line
and avoid being undercut by competitors is a complex task that needs constant attention if your
business is to succeed.

To take an example of a Corporate Business Traveler who came for a meet in Bangalore
a Tier A city in India where a decent Hotel with prime connectivity to Urban business point will
be costing around xyz INR for a 24 hours IST time cycle from check to checkout. Now to
analyze the pricing strategy from a Hotel point of view for profit maximization, first we need
answer the question “WHY US?” Out of all the available options in the same city - why he has
to choose us. It starts not from Services offered from entry of customer to hotel lobby, but the
perspective of view that is been seeded to the mindset of prospective customer of time and
future. Starting from Visibility, connectivity, Ratings, various service options available ranging
from a Corporate Meeting setup to Fine dine to add with various amenities’ available at dispose
for customers usage, eg.. Gym, Lounge, Bar etc. Customer always wants a friendly reminder that
your hotel is a place where they can relax, be comfortable and allow others to serve them. By
employees who recognize this, your hotel will exceed their expectations so customers will not
only have a good experience, but will recommend your hotel to others.

From a customer view (Business Traveler), his top two priorities will be Connectivity and
Hospitality. Connectivity has 3 distinctive divisions in today’s modern scenario namely
commutation, technological & accessibility respectively. Every customers in a hospitality
industry, has to be treated like VIP Very Important Person (Psychological Expectation of Every
Human Nature). Customers come into hotels with certain pre-set ideas of how they should be
treated.  A welcoming smile and a cheery greeting from each employee a guest encounters goes a
long way to show your hotel cares about the guests. Frequently asking guests, “Is there anything
we can do for you to make your stay more enjoyable?” shows your guest your employees are
concerned for their welfare.  It is always good when employees hit the mark with what you’re
providing to your customers; a clean room, exceptional service, and a relaxed friendly
atmosphere supported by professional conduct and attention to detail.  That is the first key
Ingredient to attain & retain customer loyalty which in turn helps for future recurring business
and referral business opportunities followed by to provide personalized empathetic customer
service with undivided attention. Has a business traveler Length of Stay may vary from a day to
couple of days, which considered for analyzing & have availability to serve other prospective
customers who might come with prior booking order or just a walk-in.

Customers are the most important component of your hotel. Customer Satisfaction is what
keeps your hotel going and thriving. One of the important pricing strategies for hotels is forecasting
method, which set their prices based on anticipated demand. In simple, times of high demand may
lead to higher room rates, in order to maximize revenue. Forecasting method is priority way to
maximize revenue which relies on various data available on-hand such as occupancy pattern, average
spending on room, reservation patterns, special occasion rush, new trend in market etc. The hotels
demand can be varied based on lower pricing offers prior to demand dates and increase the price
offered when demand date get nearer. When a customer shows their loyalty to our brand,
expectation of loyalty to be acknowledged by customer is a normal aspect.  Well defined customer
loyalty programs reward for the special guests who return for visits, better to offer them by giving
discounts, special occasion’s communications like holiday offers, birthday gifts and perks that make
them to feel the ‘WOW’ factor which in turn helps to maintain the Brand Perseverance upon any
other competitor brand. People want to feel included, welcomed, and acknowledged.  Front desk
personnel are the best ones to be in a position to acknowledge a returning but all employees should
be trained in using similar communications.

Coming to Distribution channels for the optimal business revenue generation form the
available resources, distribution channels are involved in the process of making a product or service
available to the consumer or business user. Has distribution channel is the blood line of Hotel
business. Key function of distribution channel in a chronological order is Information, Promotion,
Contact, Matching, Negotiation, Physical distribution, Financing, Risk taking respectively. Some of
the key factors that needed to be considered for distribution channel amplifications are Customer
Specific Location, Language, Desired dates of Stay, Number of Guests and Number of Rooms
Opted, Length of Stay, Frequent Date and Time of search, Referral factors. Distribution channels can
be of Hotel’s own website and own booking channels through pre- existing own customer’s data
which is always preferred most to seek the profit maximization. But to attain direct booking without
the others means of distribution management is not an easy task.

Some of the channels that play vital roles are, OTA (Online Travel Agents) who provide a
platform of Brand visibility on a virtual world & accessible for every customers from every nuke
corner of world. Maximum exposure leads to maximum footfall which in turn leads to profit
maximization. Others to be followed with Travel Agents (Make My Trip), Tour operators (Thomas
Cook), Referral companies operations (MLM), Global Distribution System(GDS), Retail
Distribution network, SOCIAL Media Operative, Digital Marketing etc..
To Conclude….