Ely\'s Boutique Hotel - Main PDF

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Table of Content CONTENT

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Section 1: Introduction

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Section 2: Organization of the Accommodation Department

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2.1 Organization Structure

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2.1.1 Organization Chart

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2.1.2 Functions of each department

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2.1.3 Managing the organization

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Section 3: Manning Plan for Accommodation Department

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3.1 Shift Determination

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3.2 Manning Plan for Housekeeping

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3.3 Manning plan for Front Office

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Section 4: Room Inventory 4.1 Inventory Calculation Section 5: Room Rates 5.1 Pricing Strategy

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5.1.1 Cost Based Method

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5.1.2 Market Condition Approach

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5.2 Room Rate Categories

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5.2.1 Rack Rate

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5.2.2 Corporate/Commercial Rate

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5.2.3 Family Rate

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5.2.4 Promotional Rate

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5.2.5 Group Rate

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Section 6: Standard Policies and Practices

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6.1 Customer Complaint Policy and Practices

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6.2 Lost and Found Policy and Practices

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6.3 Safety and Security Policy and Practices

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Section 7: References

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Ely’s Boutique Hotel

Section 1: Introduction Ely’s Boutique Hotel (EBH) is a small-scale hotel situated in Melaka with 85 rooms, limited facilities, targeting both leisure travelers during weekends and business travelers during weekdays and is due to commence its operations in November 2020. Hence, this proposal aims at providing a detailed report on the vital components of operation relating to the accommodation component of the establishment that needs to be planned well in advance to ensure the proper execution of the hotel’s opening. Thus, the following report is divided into 6 sections with Section 1 providing the background of this proposal, Section 2 focusing on the organization structure and functions, Section 3 on the manning plan for the front office and housekeeping departments, Section 4 on room inventory, Section 5 on room rates and Section 6 on the standard policies and practices of the front office and housekeeping departments.

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Section 2: Organization of the Accommodation Department 2.1 Organization Structure 2.1.1 Organizational Chart Organizational chart is an arranged graphic representation of the employment which is used to explain each department’s positions, jobs, activities and responsibilities including the management power, which is important for every organization to have since it will improve the company’s performance as the employees will have a clear understanding on where they fit into and who they should report to (Petkova, 2012; Andrews, 2013). Since EBH is a new hotel with 85 rooms, it is advisable to use the ‘Flat Organizational Chart’ for both the front office and housekeeping departments. Flat charts are suitable for a small hotel because it is easier to manage as the hotel doesn't need to employ a lot of staff. Thus, Figure 1 below shows the proposed organizational structure for the front office and housekeeping departments.

Fi g

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re 1: EBH Organizational Chart

2.1.2 Functions of each department 2

The departments in the hotel are grouped into 3 categories which is the top management, middle management and operational management.

Top management: Consists of the general manager of the hotel. it is an important role in any hotel establishment as he/she is the person to direct and lead each of the departments in the hotel to meet objectives and financial goals of the company. Developing an effective organizational chart is also part of the responsibility of this role (Bardi, 2003).

Middle management: Consists of the front office and housekeeping manager. These roles will have the responsibility to supervise and direct all the work done by the operation staff. It is also the managers’ job to provide training to the new employees as well as to communicate and educate the employees about policies and procedures (SOP). Managers are also responsible for creating the departmental schedule, managing inventories, and helping with operational duties if necessary (Andrews, 2013; Setup My Hotel, 2020; Tronshaw, 2018).

Operational management: Consists of all the departments that perform the hotel’s daily operations. In the front office, the operational department will consist of front desk agents, reservation agents, switchboard operator and night auditor. Likewise, the housekeeping department will consist of room attendants, public area attendants, linen and laundry attendants as well as house person. These departments in the operational management categories will influence the guest’s impression of the hotel which will have an effect on their experience and thus, are considered important and vital components (The Reservation Office, 2016). They are also responsible to ensure the cleanliness as well as the safety issues in the hotel and to assist the guests in the 4 stages of pre-arrival, arrival, 3

occupancy and departure (Bardi, 2006; Fairmont Hotels & Resorts, 2012; Thibodeaux, 2019).

2.1.3 Managing the organization To manage the organization, it is advisable to use job descriptions and job specifications which will enable the hotel to employ the right person for the right job. Job specification is a written description which mainly focuses on the list of qualification, knowledge, skills, abilities and personal characteristics such as personalities and integrity. Whereas, a job description is also a written document but is focused more on the list of tasks that a person is expected to do for a particular job position and how they must be done. Thus, because both the job description and job specification are mainly used for recruiting, selecting and training the staff, they need to be accurate and clear (Ellington, Brannick & Levine, 2015; Jacobson, Trojanowski & Dewa, 2012). Table 1 shows examples of job descriptions and job specifications for one position of both the front office and housekeeping departments. Table 1 below is an example of the job description and specification for the Switchboard Operator of the front office department adapted from Balle (2018) and Bardi (2003) and adjusted to meet the specifications of EBH.

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Table 1: EBH front office job description and specification

Table 2 below is an example of the job description and specification for the Linen & Landry Attendant of the Housekeeping department adapted from Manaf (2016) and Set Up My Hotel (2003) and adjusted to meet the specifications of EBH.

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Table 2: EBH housekeeping job description and specification

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Section 3: Manning Plan for Accommodation Department 3.1 Shift Determination Under the Malaysian Employment Act 1955 Part 3, 60A. (1)b, employees should not work more than 8 hours per day. Therefore, the number and length of shifts will be determined depending on the nature of the work not exceeding 8 hours (excluding lunch time). Hence, the housekeeping department of EBH will have 1 shift from 8 a.m. to 5 p.m. as the hotel will not provide turn down service, while the front office department will have both a day and night shift.

Table 3: EBH Shift Allocation

3.2 Manning Plan for Housekeeping The purpose of planning manning in the housekeeping department is to identify the number of staff needed for the job. Through calculation, the executive housekeeper will know exactly how many people are needed to perform the task on a daily basis. One of the major costs in a hotel is the cost of labor so it is important to get the right number of staff for the job.

Calculation; EBH offers 85 rooms, with a 65% room occupancy percentage for newly established hotels. It is also assumed that 1 attendant is responsible for 14 rooms. 7

Calculatio n 1: EBH Manning Calculation for Housekeeping

3.3 Manning plan for Front Office The hotel has 2 shifts for Front Desk which is 1 morning and 1 evening shift. The hotel is assumed to have 2 staff assigned for the morning shift and 1 staff for the evening shift.

Calculation; Total staff quota per day: (1 morning shift * 2 staff) + (1 evening shift * 1 staff) = 3 staff Therefore, the hotel needs 3 Front Desk staff per day. 8

Section 4: Room Inventory Deluxe Room: The deluxe single room and twin room will be equipped with the basic amenities as shown in Chart 1 and will also be equipped with mandatory amenities and facilities such as free Wi-Fi, a TV, Air-Conditioner, hot & cold rain shower and towels & toiletries. These rooms will not include a sofa set and an iron and ironing board as they are smaller in size. Superior Room: This room type will include a king bed and all amenities available in the Deluxe rooms along with the mandatory amenities and facilities and will also not include a sofa set to avoid over-crowding but will include an iron and ironing board. Family Suite: This room will be equipped with 2 queen beds and all amenities available in Superior rooms along with the mandatory amenities and facilities. This room is spacious and therefore will include a sofa set, an iron and ironing board.

4.1 Inventory Calculation Values shown in Chart 1 were developed using the calculations shown in List 1 below,

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List 1: EBH Inventory Calculation

Shown below in Chart 1 is the breakdown of the room inventory of EBH based on each room type available at the hotel.

Chart 1: EBH Room Inventory List

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Section 5: Room Rates For each room type, hotels always have more than one rate category. Room prices and price codes can also vary by room features like size, location, view, furniture, ambiance, etc. and competitor’s rates (Hickman, Collins & Wilson, 2019). Thus, the following are methods EBH can apply to establish their room rates.

5.1 Pricing Strategy

5.1.1 Cost Based Method The hotel can use the Cost Based Method consisting of either the Rule of Thousand approach or the Hubbart Approach. However, the Hubbart Approach is most suitable as it takes into consideration factors like the desired ROI, operation costs and projected room nights (which in this case will be adapted from market forecasted information as the hotel is new).

Thus, Table 4 below shows the estimated calculation of the room rate for a Deluxe room at EBH based on the Cost Based Method using both the Rule of Thousand approach and the Hubbart approach.

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Table 4: Cost Based Room Rate Calculation for EBH

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5.1.2 Market Condition Approach As EBH is new, the room rates can also be established by comparing hotels that are similar in nature to EBH that exist in the same geographical market. Hence Table 5 below displays a list of hotels and their rates similar to EBH taken from Google Maps (2020).

Table 5: Competitor Room Rates

Thus, by closely monitoring the room rates of the competitors, it is advisable that EBH place their room rates between the ranges of RM 75.00 to RM 95.00 based on the room categories available and given that the hotel is extremely new and needs to attract guests to ensure a successful opening for the hotel. Thus, even though, the Hubbart formula may require the hotel to price the rooms at RM 116, given the newness of the hotel, it is more appropriate to follow the Market Based approach in order to ensure competitiveness and price attractiveness for the hotel.

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5.2 Room Rate Categories 5.2.1 Rack Rate This is the highest possible rate applicable for any hotel room and is not fixed for all room types and each room category must have its own rack rate (Xotels, 2020). However, with regard to this hotel, applying the Rack Rate is not advisable at the very beginning as the business is just starting and it will impact the revenue of the business, but the rack rate can be applied once the business has firmly established itself after around 6 months.

5.2.2 Corporate/Commercial Rate This is a rate offered to companies and organizations that frequently provide business to the hotel (Hotel Corporate Codes, 2020). Hence, providing this rate will help secure loyalty, future sales and attract potential business travelers right from the launch of the hotel as Melaka is a frequent travel destination.

5.2.3 Family Rate This is the rate offered to families with children. Implementing this rate will help attract families who visit Melaka on vacation or for leisure especially because the hotel is well equipped to serve families having 20 family suites. As a result the hotel will be able to generate revenue from the very beginning.

5.2.4 Promotional Rate This is a rate offered to guests when occupancy is low to increase sales and revenue (BNG Hotel Management, 2020). This rate will greatly benefit the hotel especially as it is just opening and occupancy will be quite low at the beginning. Thus, the hotel can combine their opening of the hotel with a promotional package to boost 14

initial sales and achieve the targeted occupancy especially during the first 4 to 5 months. 5.2.5 Group Rate This is a discounted rate offered to guests sharing common interests and making bookings together (Hickman, Collins & Wilson, 2019). This too is a great strategy as Melaka is a tourist destination and a majority of tourists travel to Melaka in groups for sight-seeing or to take part in festivals. Thus, the hotel will be able to attract these large groups and boost their occupancy, sales and revenue.

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Section 6: Standard Policies and Practices

A ‘Policy’ is a predetermined course of action, that acts as a clear guide in enabling the accepted business strategies to meet with the set objectives (Howlett, 2005). Policies assist in identifying the vital activities of the operations and provide insight to decision-makers on how best to address potential issues. Likewise, a ‘Procedure’ is a clear, detailed and easy-to-understand plan of action that is essential in carrying out and implementing necessary policies (Bandor, 2007).

Thus, Policies and practices assist employees in understanding the limitations of their jobs, enables employees to clearly understand their responsibilities both individually and as a team, provides a clear direction on what, when and how tasks need to be fulfilled and by who, helps save time and resources, enables managers to exercise proper control and also provide legal protection in most occasions (Pacific Crest Group, 2020).

Hence, detailed below are policies and practices EBH can implement in both their front office and housekeeping departments with regard to customer complaints, lost and founds and safety and security.

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6.1 Customer Complaint Policy and Practices Policy The customer complaint policy that EBH can implement can be seen through List 2 below, it has been adapted from Bosphorus Hotel (2020) and adjusted to suit the specifications of EBH.

List 2: EBH Customer Complaint Policy

Practices The proposal for handling complaints will focus mainly on the front office area as this department will have direct contact with the guest. When handling customer complaints the hotel can follow a process similar to that introduced by Ramphal (2015) shown below in Figure 2,

Figure 2: EBH Complaint handling process

The front office will be responsible in receiving and acknowledging any and all complaints made by guests of the hotel. The front office department will then follow a similar process as shown in Figure 2 above and will also handle duties of the complaints management department as the establishment of such a department is not required and the front office is more than capable of handling customer complaints.

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6.2 Lost and Found Policy and Practices Policy The lost and found policy that the hotel can implement can be seen through List 3 below, it has been adapted from Prague Hotel (2020) and adjusted to suit the specifications of EBH.

List 3: EBH Lost and Found Policy

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Practices o Housekeeping Department The housekeeping department is responsible for the reporting of any and all lost and found items to the hotel’s lost and found department, but given the small scale of this boutique hotel, the housekeeping department will report such items to the reception and head of security. With regard to lost and found items, the housekeeping department is required to report the item/s with the description, date and time found, person who found it and full guest details (where applicable) to the hotel’s reception and head of security. o Front Office Department The front office will be responsible for recording and maintaining all lost and found reports and details of items found by the housekeeping department including dates and times, locations, room numbers, guest details (where applicable), item descriptions and details of those who found the items. The front office will also coordinate with the Banda Hilir Police Station when handling valuables and clothes, shoes and items of similar nature. The front office will also work together with the head of security and the housekeeping department in investigating complaints related to lost items made by guests. Furthermore, the front office must request guests to fill the lost and found form in Figure 3 when guests report potential lost items.

Postal Code

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Figure 3: EBH Lost and Found Form

6.3 Safety and Security Policy and Practices Policy The safety and security policy that the hotel can implement can be seen through List 4 below, it has been adapted from the author Ghazi (2015) and the Shangri-La Group (2020) and adjusted to suit the specifications of EBH.

List 4:EBH Safety and Security Policy

Practices o Housekeeping Department The housekeeping department is given more responsibility and training with regard to maintaining the safety and security throughout the hotel together with the hotel’s security which will be limited to a lower number in accordance with the requirements of the Banda Hilir Police Station. Thus, safety and security practices of the housekeeping department can be as seen below in List 5 adapted from Milambiling (2014) and adjusted to suit EBH.

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List 5: EBH Housekeeping Safety and Security Practices o

Front Office Department

The front office department too will be given a greater responsibility with regard to maintaining the safety and security of EBH given its significantly smaller scale. The front office safety and security practices can be as shown below in List 6 adapted from Milambiling (2014) and adjusted to suit EBH.

List 6: EBH Front Office Safety and Security Practices

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Section 7: References Andrews, S. (2013). Hotel Housekeeping: A Training Manual. New Delhi, India: McGraw-Hill Education. Arp-Hansen Hotel Group. (2020). Lost and found. Retrieved from https://www.thesquarecopenhagen.com/about-arp-hansen-hotel-group/lost-and-found Balle, L. (2018). Hotel operator job description. Leaf Group Ltd. Retrieved from https://careertrend.com/hospitality-skills-training-13638283.html Bandor, M. (2007). Process and procedure definition: A primer. Technique Report in CMU SEI, pp. 12-30. Retrieved from https://resources.sei.cmu.edu/asset_files/Presentation/2007_017_001_23937.pdf Bardi, J.A. (2003). Hotel front office management (3rd ed.). Hoboken, New Jersey: John Wiley & S...