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Chapter 12 Planning and Evaluating Operations

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1. Describe the management process in terms of the functions front office managers perform to achieve organizational objectives.Explain how managers establish room rates and identify special room rate categories.Apply the ratios and formulas managers use to fo

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Chapter 12 Planning and Evaluating Operations
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    1. Chapter 12 Planning and Evaluating Operations Managing Front Office Operations Seventh Edition (333TXT or 333CIN)

    2. 1

    3. 2 Competencies for Planning and Evaluating Operations Explain how front office managers forecast rooms revenue and estimate expenses when budgeting for operations. Describe how managers use various reports and ratios to evaluate front office operations. Explain what front office managers can do to plan for disasters.

    4. 3 Management Functions ? Planning ? Organizing ? Coordinating ? Staffing ? Leading ? Controlling ? Evaluating

    5. 4 Room Rate Categories ? Rack ? Corporate/commercial ? Group ? Promotional ? Incentive ? Family ? Package plan ? Internet/distressed-inventory ? Complimentary

    6. 5 Pricing Strategies ? Market condition approach to pricing Competitive set TIMS report Phaser report RateVIEW STAR report

    7. 6 Pricing Strategies ? Rule-of-thumb approach to pricing $1 room rate for every $1,000 construction/furnishings cost ? Hubbart formula Bottom-up approach to pricing

    8. 7 Historical/Current Occupancy Forecasting Data ? Arrivals ? Walk-ins ? Stayovers ? No-shows ? Understays ? Check-outs ? Overstays

    9. 8 Percentage of No-Shows Number of Room No-Shows Number of Room Reservations Purpose: Helps front office managers decide when (and if) to sell rooms to walk-in guests when the hotel is near full occupancy.

    10. 9 Percentage of Walk-Ins Number of Room Walk-Ins Total Number of Room Arrivals Purpose: Helps front office managers know how many walk-ins to expect, especially when the hotel is near full occupancy.

    11. 10 Percentage of Overstays Number of Overstay Rooms Number of Expected Check-Outs Purpose: Alerts front office managers to potential problems when the hotel is near full occupancy and rooms have been reserved for arriving guests.

    12. 11 Percentage of Understays Number of Understay Rooms Number of Expected Check-Outs Purpose: Alerts front office manager to probable additional room availability when the hotel is near full occupancy.

    13. 12 Rooms Availability Formula Total number of guestrooms Out-of-order rooms Stayovers Reservations + Reservations ? no-show percentage + Understays Overstays Number of rooms available for sale