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Room Division Manager Forecasting Data And Revenue Study Tourism Essay

By forecasting room availability we mean forecasting the number of rooms available for sale. In order to facilitate forecasting Room Division Manager should collect the following data that helps manage the reservation process.

Number of expected room arrivals- is the number of guests that have already made reservation in the hotel and are expected to check –in.

Number of expected room walk-ins- Walk-ins are the guests without reservations that coming in the hotel. This number helps the front office managers to use the appropriate number of staff and prepare rooms for the expected walk-ins.

Number of expected room stayovers- is the number of guests that will not expected to check out today and will continue stay in the hotel. Helps the management to know the occupancy of the hotel, the number of rooms that are available for sale and the number of employees that must be used.

Number of expected room no-shows- is the number of expected guests who did not arrive in the hotel. This number helps front office managers to know if there are rooms available for sale and decide when to sell rooms to walk-in.

Number of expected room understays- is the number of guests who check out before their departure date. Helps the management to know additional room availability.

Number of expected room check-outs- is the number of guests expected to departure from the hotel that day. This number helps the management with the number of available rooms for sale. It helps them to use the right number of employees will be needed in the front office during the check-out process and the number of housekeepers in order to clean the rooms.

Number of expected room overstays- Overstays are the guests who stay beyond their departure date. This number alerts management for any problems when rooms have been reserved for arriving guests.

Moreover, this type of forecasting can be used as an occupancy forecast that helps the management to decide how many employees needed for a shift depended on the expected volume of business.

2. Explain the concept of revenue management and how R.D Manager can maximize revenue by using forecast data.

Revenue management is the process of each hotel to understanding guest behavior in order to maximize the revenue. The philosophy of the revenue management of a hotel is to sell the right room to the right person at the right time for the right price. The revenue management plays an important role in the financial success of any hotel. It includes a number of tactics and strategies that make the hotel to develop best selling situations. Revenue management is always depends on the law of demand and supply. There are more factors that can draw a reliable forecasting that affects the business, like long/short stay guests, type of room, cost of room etc. The concept of the revenue management is to pick the business that gives the maximum yield for the hotel. The management of the hotel wants to attract guests who pay the most and stay longest. There are numerous benefits coming of Revenue Management. The revenue management improves forecasting. It improves decisions about the prices and the inventory of the hotel. It identifies new market segments and the demand of each market segment. The revenue management improves development of short and long term business plans and tries to increases the profit of the hotel and decrease the operating cost of the hotel by saving in labor cost, waste time from employees or other operating expenses.

The forecasting data have lot to do with the revenue of the hotel. The forecasting data are used for the R.D manager to the revenue management techniques that followed from a hotel in order to increase the profitability to a great extent .These strategies are used from the Revenue Management are the capacity management, the discount allocation and the duration control. The Capacity management involves methods to balance the risks and control the room supply. It balances risks of overbooking against possible loss of revenue from guests that cancel their reservation, under-stays, and no-shows. It also involves in determining the number of walk-ins can be accepted on the day of arrival taking all the above in consideration. The Discount allocation involves methods to manage discounts for the rooms for various time periods from the rack rates. The Room Division manager and the sales agents must be able to sale at the best possible rates and at the same time to sale all the rooms of the hotel. All the room types of the hotel reduced rate- structure below the rack rate is given to reservations. Implementing this method requires reliable demand forecasting. This method helps also in up-selling by limiting the discounts by room type. Duration control is managing to place time limits on accepting reservations in order to give room request that are multiple days that represents higher level of revenue than single day occupancy that represents lower level of revenue. To increase the revenue the management can be combined the strategies of duration control and discount allocation. For example, the hotel can make a discount to a guest that will stay in for two weeks while one day stay require rack rate.

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