1. What are the main types of length of stay restrictions? How do they work? a) Closed to Arrival Restrictions
A closed to arrival (CTA) restriction is useful in slowing demand on one night while increasing demand on the prior night. A CTA restriction won’t allow any new reservations for check-in on that night, but does allow for stay overs. Literally it closes new arrivals. A CTA encourages reservations on the night before where it is needed. For example, if Tuesday were already spiking for a particular week while Monday resembles a hole, a CTA on the Tuesday night would be a good option to even out the demand. b) Minimum Length Stay Restrictions
The minimum length stay (MLS) restriction mandates that all new reservations stay at the hotel for a minimum number of nights. This restriction is effective when demand is known ahead of time to be strong on certain nights but less so on others. The MLS is very effective when used over holidays, for special events, or for citywide. c) The modified length stay (also called Min/Max) restrictions takes longer stays into consideration. It is a hybrid of the MLS and the CTA. It is similar to MLS in that it requires a certain number of nights and resembles the CTA in that new arrivals are restricted. The differences are that it focuses on lengthening a reservation as well as limiting the length of stay.
2. What should be done to compensate a “walked” guest?
* Pay for the room at another facility of the same or better quality. * Pay for a phone call so that the individual can notify other of the change in accommodations. * Provide transportation to the new facility, and back if applicable. A quest who is part of group will want to return in the morning to attend group functions. A transient guest who has more than one-night stay should be allowed to return to the original hotel to complete the stay if they wish. * Other incentives can include a free breakfast, an upgrade upon return, an in-room amenity, an apology from management, and even some type of direct monetary compensation. 3. Explain the two ways of measuring hotel performance.
There are two forms of quantifiable analyses these are rev-par and market share. * Rev-par is defined as revenue per available room; this analysis will allow hotels of different sizes to compare the revenue generated by the sale of sleeping rooms. * Market share is defined as a hotel’s occupancy performance in relation to other hotels within a predetermined competitive set. Market share analysis reveals how a hotel performed based how it “should have done”. It also reveals how much business a hotel “took” from competitors.
Qualifiable analyses are based on the goals of hotel managers. What path they will take down the road to prosperity can differ. That road to prosperity will fork, one path goes down the road of rate driven and the other goes down the path of occupancy driven. Each of the qualifiable goals actually uses one of the quantifiable analyses to support its point of view.
4. Define Empowerment. Give example.
Empowerment is defined as the ability and authority to satisfy guest complaints/requests within present parameters. Whenever issues arise, an empowered employee is able to take whatever action is deemed appropriate to solve the problem. Business management has adopted empowerment in terms of devolution of authority and decision-making from top level executives to workers on the factory floor. This is expanded a little in the section below on empowerment in the commercial sector, including hotel management.
Within the hospitality sector examples of empowerment are found mainly in customer facing roles. The reception staff may be allowed to discount room rates or offer free upgrades dependent on factor such as time of day, occupancy rates, and so on. Restaurant staff may have authority to decide when to reduce a customer’s bill as a result of a complaint. However,...
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