A Systems Approach to Performance Measurement in Hospitality

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A systems approach to performance measurement in hospitality International Journal of Contemporary Hospitality Management 11/7/1999

This article focused on the processes involved when dealing with employees and resources in the hospitality industry, specifically hotels. This article was interesting to me because I have worked in the hospitality industry my entire working career. Even though I have limited experience working in hotels (my experience comes from working in restaurants), it is still interesting to me how hotels are able to manage large amounts of staff and resources when only part of the business is forecasted. For example, a hotel may be forecasted to have an 80% occupancy rate, but do to circumstances beyond the hotel’s control, the actual occupancy may rise to 100% or drop to 50%. I have always been interested in the methods hotel’s used to handle this type of situation.

Processes in hotels are very important. Because of the large amount of staff, large amounts of resources and the large amount of work to be done, it is important that the hotel uses a five-point framework to develop a systems approach to the work. This systems approach from the article relates to chapter 5. The five-points the article discusses are standards (chapter 12), capacity management (chapter 7 forthcoming), scheduling (chapter 16), inventory (chapter 12) and control (chapter 6 forthcoming). In terms of scheduling, there are many parallels from the reading to the article. For example, the textbook spends some time discussing scheduling customer demands. Hotels use a reservation system to forecast customer demand. Many times, customers know well ahead of time of their stay. This advanced notice helps hotels with scheduling, which according to the article becomes a “back office” procedure. The article states that because of the advanced notice, scheduling can be automated. Furthermore, the article goes further to argue that proper scheduling leads to...
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