In this extremely advanced and competitory cordial reception universe, nil comes free. Forests et Al ( 2006 ) illustrates that invitees are progressively going more sophisticated about the location, comparing and choice of their hotels. Whenever there have been consumer studies, the most of import ground for the choice of the hotel is the location. The 2nd of import consideration is the monetary value ( i.e. room rate ) . Harmonizing to Kasavana ( old ) , there should be an optimum room rate which is high plenty to run into the disbursals of the hotel yet low plenty to pull a sensible figure of invitees. This essay critically discusses some factors and theoretical accounts that hotelkeepers keep in their heads when they set the monetary values of the suites.

Harmonizing to Bhatnagar ( 2007 ) , some factors should be kept in head while repairing the room duty. The rates should be competitory with other hotels of the same criterion and supplying about similar services and installations as provided by other hotels situated in the same locality. The societal and fiscal position of the patronage of the hotel plays another of import function as it tells the hotel about their paying capacity. The location of the hotel is another outstanding factor as it reflects the convenience that the invitee might acquire. For case, if the hotel is close to airport or railway station, the invitee would n’t mind paying a small excess as he will be salvaging on his conveyance cost, etc. In add-on to the above points, Bhatnagar ( 2007 ) reminds the hotelkeepers to maintain in head the disbursals that have occurred during the devising of the hotel like cost of land, building, decor, trappings, and etc. Furthermore the suites with a good position would be more than the 1s with opening to apathetic Chamberss. Similarly, Kasavana ( old ) emphasises the demand of consideration on both internal and external factors to analyze the pricing construction. Kasavana ( old, p. 171 ) agrees with Bhatnagar ( 2007 ) by stating that “ external considerations sing the strength of competition, the hotel ‘s market portion, and the belongings ‘s location are variable that must besides be considered ingredients to an effectual room evaluation strategy. ” Some internally generated informations that are pointed out by Kasavana ( old ) includes the realization of a return on investing from the cost of constructing the belongings, the aggregation of money to cover services that are provided which generate no direct grosss, the load of extra operating costs assigned to the suites section must be paid for and the specific features of a invitee may justify a discounted or complimentary rate. Jones and Paul ( 1993 ) explicates that room rate is capable to more fluctuations and fluctuations in monetary value than any other gross revenues point. The monetary value charged may change due to different room types available, its size, figure of residents in a room, price reductions for bulk reserves, conferences and Tourss. In add-on to all the above factors, there are certain factors like at certain clip in twelvemonth, when there is thin period, the monetary values of the suites are lowered to increase the tenancy and during extremum season, the monetary values can be quoted highest. Besides, weekdays may be really busy and invitees will pay higher sum which may non be possible on weekends.

One of the most important stating that Woods et Al ( 2006, p. 245 ) expresses sing the development of the hotel ‘s rack rate is that “ there is nil new under the Sun ” . Harmonizing to Woods et Al ( 2006 ) , in today ‘s universe, there are chiefly two types of hoteliers- 1 who follow the traditional pricing schemes and the other who follows the modern pricing schemes. Bhatnagar ( 2007 ) tells that in general there are two cardinal methods of nearing the job of adjustment duty fixation- the cost based pricing ( traditional ) and the market based pricing ( new ) . The Cost based pricing includes two methods- regulation of pollex and the hubbart expression. Despite of being traditional, most of the hotelkeepers follow both these attacks for pricing their suites. Kasavana ( old, p. 171 ) explains the construct of the rule-of-thumb attack by stating that it “ requires that the hotel charge at least $ 1 of mean room rate for every $ 1000 that went into building a room ” . Although this attack is one of the oldest, it remains in usage as “ it is simple to use and building cost have risen about the same gait as room rates thereby rendering it still valid ” . Woods et Al ( 2006 ) besides tells us about the same regulation. However, Woods et Al ( 2006, p. 249 ) informs that “ because the rate is so closely tied to occupancy degree, most advocates besides believe a 70 % tenancy premise is required for the expression to be utile. Besides, the computed rate must be increased proportionally if tenancy is below 70 % and decreased proportionally if it exceeds that degree ” . In add-on to this, nowadays few sophisticated investors use this attack entirely to measure the feasibleness of a hotel purchase. The following most practiced attack is the Hubbart Formula.

Harmonizing to Woods et Al ( 2006 ) , developed in mid-1950s by houses Horwath & A ; Horwath and Harris Kerr Forster in honor of a Chicago hotelkeeper Roy Hubbart, Hubbart expression seeks to find what should be the hotel ‘s Average Daily Rate so that the proprietor ‘s fiscal ends can be met. Kasavana ( old, p. 171 ) says that “ unlike the regulation of pollex method, the Hubbart expression requires that direction prognosis expected grosss and disbursals for the following accounting period ” . Bhatnagar ( 2007, p. 197 ) explains that the expression considers “ the operational costs and include a certain per centum of returns on land and edifice and another per centum on hotel maintaining capital employed ; subtracting from the above cost the income received through leases, nutrient and drink gross revenues and other assorted gross revenues ( all gross revenues other than suites ) ; and so in conclusion divide the staying for bear downing room rates by jutting figure of suites occupied ” . Harmonizing to Kasavana ( old ) , hubbart expression brings about a common breakeven analysis that hotelkeepers use to monetary value their suites. However, Woods et Al ( 2006, p. 247 ) puts some visible radiation on the primary defect of the expression which relates to the figure of suites forecasted to be sold. “ The figure of suites sold normally depends on the rate charged for suites. However, the expression requires that the figure of suites sold be estimated before cognizing the rate at which suites will sell ” . Woods et Al ( 2006, p. 248 ) besides remarks that despite its restrictions, Hubbart formula “ provides an equal return to the hotel ‘s proprietor and consequences in a definite and justifiable rate end ” . On the contrary, Jones and Paul ( 1993, p. 285 ) explains that “ the job associated with utilizing mathematical theoretical accounts is that the monetary value calculated is an mean one which has to be charged over a period of clip instead than an existent monetary value to be quoted ” . Ultimately Kasavana ( old, p. 172 ) agrees with Woods et Al ( 2006 ) by stating that “ despite its defects, the Hubbart expression remains utile in its estimate of a breakeven room rate for the hotel ” .

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Returning to the hypothesis posed at the beginning of this survey, it is now possible to province that different factors contribute in their ain mode while finding the proper room rate. This essay has given an history of and the grounds for the widespread usage of the two traditional pricing methods used by the hotelkeepers. Paine ( hypertext transfer protocol: // ) concludes by stating “ The minute you make a error in pricing, you ‘re eating into your repute or your net incomes. ”


Bhatnagar, S.K. , ( 2007 ) Front Office Management, 2nd Edition, New Delhi: Frank Bros. & A ; Co. Ltd.

Christine, J. , Paul, V. ( 1993 ) Accommodation Management, 2nd Edition, London: B T Batsford Ltd.

Kasavana, M.L. ( ) Effective Front Office Operations, New York: Van Nostrand Reinhold Company Inc.

Paine, K. ( 2009 ) Katherine Paine Quotes [ online ] . Available: hypertext transfer protocol: // [ accessed 26th December 2009 ]

Forests, R.H. , Ninemeier, J.D. , Hayes, D.K. and Austin, M.A. ( 2006 ) Professional Front Office Management, USA: Prentice Hall

Question degree Celsius ) – Detail what a hotel needs to see at each phase of the Guest Cycle when pull offing big groups. ( 500 words )

The construct of the sequence of the client ‘s activities get downing from when the possible client foremost makes contact with the operation until the concluding dealing is completed is referred to as the invitee rhythm, which Kasavana ( 1978 cited in Jones and Paul, 1993, p. 236 ) suggests is “ an effectual agencies for the enabling direction to better proctor, chart and command the invitee ‘s minutess ” . Harmonizing to Woods et Al ( 2006, p. 206 ) , “ any entity that militias 10 or more guestrooms at one clip ” can be known as a group. This essay will give an history of the different things that a hotel should see at each phase of the guest rhythm when covering with big groups.

The Guest Cycle activities tend to fall into four subdivisions, with a figure of activities happening in each subdivision. Harmonizing to Baker et Al ( 2000 ) , the four distinct stages are pre-arrival ( reserve ) , arrival ( enrollment, etc. ) , tenancy ( guest history, etc. ) and going ( measure colony, check-out, etc. ) .

Bhatnagar ( 2007 ) draws our attending to the processs that should be followed during the Pre-arrival phase by stating that one time the engagement is received from the group leader/travel agent, a cut-off day of the month ( by and large 30 yearss before the reaching day of the month ) should be given boulder clay which the group leader/travel agent must corroborate the entire figure of suites to be blocked. After the verification is received the group leader/travel agent is required to direct the name of the group & A ; the group members, expected clip of arrival/departure, inside informations of sharing suites if any, passport inside informations & A ; references of all members, charging instructions, repast program, transport installation needed if any, particular instructions if any. Besides, the group leader/travel agent should direct the verifiers. Baker et Al ( 2000 ) high spots that with all this information ; hotel is in a place to pre-register all the group members prior to their reaching, therefore rushing up the check-in procedure. Bhatnagar ( 2007 ) besides remarks that all sections like nutrient & A ; drink ( welcome drinks, nutrient ) , housekeeping ( suites ready ) , porters, etc. should be informed prior to the reaching. The boarding list and the keys should be ready before the twenty-four hours of reaching of the group.

Baker et Al ( 2000 ) references that at the clip of Arrival, the asst. Front office manager/head receptionist should recognize the group and to take the force per unit area from the chief response, a separate check-in country should be arranged beforehand where the group leader should be given the boarding list, the cardinal envelops and the welcome kit incorporating the map of the surrounding, booklets, etc.. If the members do n’t talk a common linguistic communication, so an translator should be present. Bhatnagar ( 2007 ) informs that merely in instance of a group, maestro pagination & A ; single guest paginations are made and merely one ‘C ‘ signifier attached with the transcript of boarding list is sent to the FRRO ( Foreigner Regional Registration Offices ) . Meanwhile all the baggage of the members should be delivered to the several suites.

Mr Andrew Pennington, lector in Thames Valley University, discussed in his talk on 16 December 2009 that during the Occupancy phase, the chief purpose of the hotel is to supervise guest dealingss. Other thing which can be done and can be utile is that if the group is big, clip slots for breakfast, tiffin and dinner should be made and given to the invitees so that other invitees do n’t hold to wait for long. Besides, if the group members avail any other installations which are non included in their bundle, they should unclutter their history on the point of sale itself as they have non been given a recognition installation.

Baker et Al ( 2000 ) describes the Departure phase by explicating that at the clip of going, the response should guarantee that the chief history has been signed by the group leader, all single measures if any have been paid by the invitees, all suites keys have been returned and in conclusion all the luggage have been cleared before the group departs.

The intent of the current study/essay was to analyze the different processs that need to be followed by the hotel in regard to the groups in each phase of the guest rhythm. If anterior readyings are non done for managing the groups, they can easy put great strain upon the hotel staff. So, all things should be considered while managing the groups as they are the beginning of volume concern and more gross.


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