R OOMS D IVISION O PERATIONS M ANAGEMENT Overview and Accommodation Services.

ROOMS DIVISION OPERATIONS MANAGEMENTOverview and Accommodation Services

HAPPY NEW YEAR

2015 By the end of the year you will have completed the

Higher National Diploma in Hospitality. ( except the work placement )

Shangri La in 2017 – 497 rooms / Crown might go ahead 450 rooms 2017

Front Office , Food & Beverage / catering/ room service , Gaming

Rooms Division / HK , Events / conferences/ weddings , Marketing , Travel Desk , Tour guiding , Human Resource , Finance / revenue Management , Spa , Concierge , Hotel group Lawyer / public relations

OPPORTUNITIES Hotels and resorts Restaurants and foodservice Cruise ships and airlines Theme parks and casinos Meeting and event planning Recreation and sports management Tourist destinations and attractions Travel Agents Massage therapy Fitness instructor Sommelier Travel writer / food writer Researcher Porter

OTHER PROJECTS UNDERWAY

1 Heritage Reserves (Pvt) Limited, 1, Horton Terrace, Colombo 07Sri Lanka

Eco-Tourism accommodation units

10 units

2 Dutch Bay resorts, Suit 1904,Al Moayyed Tower ,Kingdom of Baharain 

Eco-Tourism accommodation units 80 – chalets 130 villas

80 – Chalets130 - Villas

3 West Agro Property Developers(Pvt) Ltd No.10,1/1,8 th Lane, Colombo 03 Sri Lanka

Eco-friendly chalets

8-Chalets

4 Elements 57/8,Sir Ernest Desilva Mawatha, Colombo 07Sri Lanka

Water sport project

27 Bungalows Eco style

5 Palm Lanka Holdings(Pvt) Ltd 1001, Kew Road,Colombo 02 Sri Lanka

Hotel – 6 star 50 Rooms

6 M S A Sham Sudeen Development & Reality (Pvt) Ltd,9 College Avenu, Mount Lavinia

Botique Hotel 14 Chalets

7 Ruwala Nature and Adventure parkKalpitiya RoadThihaliya,EththaleSri Lanka 

Nature and Adventure park

12 Rooms 5 Eco-huts

9 Alpha Tours (Private) Limited No :49/16 Island Building Galle Road ,Colombo -03

Nadum odai report(RS: 750 MILION)

52 Rooms

10

Kuwait European Holding Co.po.box :3237Safat 13024Kuwait

5 Star Hotel /Resort (11.0 US $ M )

100 Rooms

11

Divyaa resort Grant Communications (PVT) LTD No :32/1, Caste StreetColombo -08

ECE Cabana Resort(RS:90.0 Mn)

6 ECC Cabana

13

Sun resort Investment Lanka (Pvt) Ltd Office op 1Hotel Galadari 64, Lotus Road Colombo 01

Environmentally Friendly Tourism Resort (SLR 1.2 Bn)

150 - Water Bungalows

14

Qube Lanka Leisure Properties (Pvt) LtdNo: 327 Union Place Colombo 02

Environmentally Friendly Tourism Product (US$ 16.82 Million )

200 – Beach Villas

GROWTH OF TOURISM IN SRI LANKA

RECOMMENDED AREAS OF FOCUS THIS YEAR

Building Knowledge and Skill in Hospitality.

Build Language skills – written / spoken

Decide on an area of the industry that you would really like to engage in.

Make the plan and commit yourself towards staying on track.

Seek support – it’s a strength, Take responsibility !

ROOMS DIVISION

What is it –

The Rooms Division consists of two sub-departments, Housekeeping and Front Office. ( Some may include maintenance and security )

Housekeeping NOT “just a cleaning department”,

hotel surveys have shown again and again that cleanliness is at the top of the list of requirements of hotel guests.

Watch Video on guest check in

ROOMS DIVISION

What is it –

The Front Office is the heart of a hotel. Associates of this department are responsible for the guest’s first and the last impression of the hotel.

the last impression is a lasting impression which will be involved for the guest’s decision to return to the hotel for his next visit.

CLASS WHY IS IT IMPORTANT TO HAVE RETURNING GUESTS ?

ROLES AND RESPONSIBILITIES

ROOMS DIVISION MANAGER KPI’S ASSOCIATED WITH FINANCIAL PERFORMANCE

Room nights

Number of rooms x number of nights.

A group of 20 people can stay in 20 rooms for 10 days ( 200 room nights )

The same group can do twin share then 10 x 10 = 100 room nights.

When a travel executive from American express travel Nigeria asks Nipuna for a quote room only basis for a group (numbers yet to be finalized ) Nipuna can give many options. .

200 room nights LKR 10,000 per room per night, 100 room nights LKR 12,000 per room per night Less than 100 room nights standard rates apply LKR15000 Because in this instance Nipuna doesn’t care if its just one person

in one room as long as he/she stays 100 or 200 nights. It’s the same value to nipuna so he can offer a similar discount.

ROOMS DIVISION MANAGER KPI’S ASSOCIATED WITH FINANCIAL PERFORMANCE

Occupancy Occupancy is the critical factor in the hotel

industry. It is calculated as the percentageof the available rooms occupied for a specific

time period. Occupancy = Paid occupied room nights / room

nights available

Nipuna Inn Piduruthalagala has 200 rooms. For the first quarter of 2014 (beginning of January to the end of March 90 days) he sold 30,000 room nights.

Occupancy = [17,200 / (200 x 90 ) ] x 100% = 95.55%

ROOMS DIVISION MANAGER KPI’S ASSOCIATED WITH FINANCIAL PERFORMANCE

Average daily rate ADR = Total Room Revenue / occupied room

nights. The Average Daily Rate, or ADR, is

a hospitality industry metric measuring the average amount paid per room over the total rooms occupied over that period.

For example, if a hotel earned $100,000 in a year with 500 rooms occupied, its ADR would be $100,000/500 or $200.

ROOMS DIVISION MANAGER KPI’S ASSOCIATED WITH FINANCIAL PERFORMANCE

Average daily rate ADR excludes rooms used for "house" purposes

(those occupied by hotel employees) and usually complimentary rooms, depending on the hotel.

The ADR is useful to measure a property's financial performance, as well as to compare the hotel's performance to its competitors. Doest take in to account how good the occupancy was . E.g even if the hotel had 10% occupancy you can still get high ADR’s

Average room rate is a less popular but similar indicator where the revenue is divided by PAID rooms occupied

ROOMS DIVISION MANAGER KPI’S ASSOCIATED WITH FINANCIAL PERFORMANCE

Revenue per available room Rev par. RevPar - measures the average room

revenue per available room. This kpi gives a rating that takes in to account the rate as well as occupancy. This KPI is best interpreted when compared against past performance or industry norms.

Rev par = Total Room Revenue / Total Rooms Available.

ROOMS DIVISION MANAGER KPI’S ASSOCIATED WITH FINANCIAL PERFORMANCE

Indicators that compare the hotel against the market / competition.

Market Penetration Index (“MPI”) MPI measures a hotel’s occupancy

relative to average market occupancy levels.

This KPI is an operational measure and is indicative of the proportion of the market a hotel controls

MPI = Hotel Occupancy % / Market Occupancy %

SLTDA DATA

ROOMS DIVISION MANAGER KPI’S ASSOCIATED WITH FINANCIAL PERFORMANCE

Indicators that compare the hotel against the market / competition.

Revenue Generation Index (“RGI”) RGI measures how a hotel’s RevPar compares

against comparative data. This KPI is an operational and efficiency

measure. A RGI score greater than 1 would indicate the hotel is winning more business

relative to local competition.

RGI = Your Hotel's RevPar / Hotel Market RevPar

MAINTENANCE

WORKING PROCEDURES

A Standard Operating Procedure (SOP) is a set of written instructions that document a routine or repetitive activity followed by a Hotel. SOP helps in maintaining quality and consistency of service, health and safety and standard's in your hotel.

The development and use of SOPs are an integral part of a successful quality system as it provides individuals with the information to perform a job properly, and facilitates consistency in the quality and integrity of a product. It is a must that all newly recruited hotel staff should be given training on hotels SOP.

SOP

EXERCISE

Room nights.

1 “Dilan Hotel Kandy Light” of 15 rooms has received two group booking requests over the awurudu season . 1 from golden dragon china for 13 rooms for 2 weeks.

The other is from a university student group who expect the same rate. They are wanting to stay 3 weeks in 8 rooms.

Choose the one you will accept

EXERCISE Occupancy You the rooms division manager of Hilton have a board

meeting this afternoon on occupancy after the recent marketing campaign.

Will you start the speech saying I have good news or Bad news?

Total number of rooms This quarter (sep -dec )– 384 last year 386 ( two were

joined as suites)

Room nights used - This quarter 40,252 ( of which a complimentary room was given to a group that stayed 12 nights ) last year same quarter 39,898

EXERCISE

ADR You feel that the director board may think

that you have dropped the rates and increased occupancy. So its best to discuss the rates also as you did drop the rate a little. So is it still good news?

Room revenue this quarter 482,880,000 Last year 477,978,040

EXERCISE

Rev-Par some directors are used to the very popular

rev-par

Compare the two results from this quarter and last years.

ANSWERS

1 - 182 vs 168 - provided the same rate , strictly on room nights choose Golden Dragon travel.

2 – 122 days 40,252-12/46,848 vs 39,898/47,092 rm nits . || 85.89 vs 84.72 – good news even with the 12 foc nights deducted.

3 - 482,880,000/40,252 vs 477,978,040/39,898

|| 11,996.42 vs 11,980.00 better ADR this year so still good news.

4 482,880,000/(384x122) vs 477,978,040/(386x122)

10,307.38 vs 10,149.88 this year is slightly better.

BIBLIOGRAPHY

http://www.roomsdivision.com/en/index.php?option=com_content&task=view&id=30&Itemid=52

http://www.sltda.lk/statistics http://www.shangri-la.com/corporate/press-ro

om/press-releases/shangri-la-hotel-colombo/ http://www.sltda.lk/ongoing_projects http://www.slideshare.net/PatCabangis09/cha

pter-1-rooms-division-edited http://www.cooneycarey.ie/files/9113/9634/43

57/2014_03_20_Hotel_Metrics_.pdf http://www.sltda.lk/sites/default/files/Guest%

20Night%20Summery.pdf