Download - MCS Hotel Control System
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Study of Hotel IndustryManagement Control System
Yogesh Kulkarni - 0532
Manoj Alat - 0501
Mahesh Kothale - 0531
Koustubh Pawar - 0543
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Disclaimer
The presentation has used storyboard format to
illustrate the various management control systems in
hotel industry. All names including the name of the
hotel is used solely for the purpose of illustration. Allcharacters are fictitious as well.
Mr. & Mrs. Saurabh go to Goa
for their Honeymoon!!
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Glossary of Terms
PMS : Property Management System.
POS : Point of Sales System
Revenue Management : Pricing and Product availability
management system
CRS : Central reservation systemChain : Hotel chain like Hilton , Marriott
Front Office : The hotel reception area
Housekeeping : Hotel guest service operation after check-in
Room Service : Self explanatory
Banqueting : Large group dining on fixed menuNight Audit : Daily Reconciliation and revenue
recognition process
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The Plan
Mr. Saurabh is busy person and has managed to take out 5 days from hisbusy schedule, however his manager expects him to be available on call if required.
Mrs. Saurabh is expecting a dream honeymoon and has plans to enjoy her
stay, do shopping and relax.
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Getting best Hotel Deal
Reservation system
Call centre
Third party agents (e.g. websites)
Direct Marketing offers
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Saurabh wants to know more about
hotels
External Rating
Forbes (Mobil travel guide Star ratings)
Trip Advisor
American Automobile association
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Travel Plan for Saurabh
Day Travel Activity
Day 1 Airport-Pickup provided
by Hotel
Arrive at Hotel
Relax at Hotel
Dinner at Hotel
Day 2 To South Goa by cab
arranged by Hotel
Morning Breakfast
Sightseeing South Goa
Dinner and music show at
Hotel
Day 3 To beaches by cab
arranged by Hotel
Morning breakfast
Visit Beaches
Lunch and Dinner at HotelDay 4 Cab as per request,
arranged by Hotel
Shopping, Eating outside
as per Mrs. Saurabhs wish
Day 5 Airport-Drop provided by
Hotel
Breakfast at Hotel, return
back to Pune
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Behind the scene - Revenue
Management
While Mr. Saurabh was trying to book, the Hotelrevenue management was at work.
Products being highly perishable, the hotel industrytries every trick to sell the products before they perish.
Hotel room rates fluctuate on daily basis based onforecasted occupancy.
The occupancy rate changes based on many factorslike day, month, year, time, business segment etc.
Companies use sophisticated forecasting software tomanage their selling price.
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Hotels can offer Saurabh attractive
deals if
His wedding/honeymoon were in the lean period: 10-30%
saving can be achieved since rates are this much higher in
peak season than in the months preceding it. (June -
September)
Mid-week travel plans: 10-15%
Advance Booking, On-Line Booking: 15-20%
All inclusive packages
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Behind the scenes - Customer
Centricity
Customers
Domestic
International
Customer satisfaction target 100%
Communication
Co-ordination
While customer centricity is unavoidable in the service industry, it may be
worthwhile to understand which products may bring value to the customer
and which do not.
It is also important to appreciate the fact that customer centricity does not
necessarily mean that the industry adopt ad-hoc methods
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Behind the scene -Industry models
Franchisee Model: Le Meridien
Operating contract model: Ambience Group
Ownership model: Taj, Oberoi Branding and Certification: Best Western, Ibis
Business Hotels / Leisure Hotels: Courtyard by
Marriott
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Airport to Hotel
Airport Pickup
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The Arrival
Front Office
Room Service
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And they open champagne
Foods and Beverages
Spa
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Services Used by Saurabh at Hotel
Dinnerat the Beach
Wireless
Internetto send mail
Hotel Phone
Booked
a car for
city travel
Hotel
laundry
service
Video on
demand
for movie
Food
through
room service
Video
Conferencing
Used hotel
concierge to seek
information
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Various functions
Club Management
Financial Management
Food & Beverages
Front Office
Gaming
General Management
Guest Service
Housekeeping
Human Resources
Maintenance & Engineering Risk Management
Sales & Marketing
Health Club & Spa
http://shop.ahlei.org/Club-Management_c_21.htmlhttp://shop.ahlei.org/Financial-Management_c_23.htmlhttp://shop.ahlei.org/Food-Beverage_c_24.htmlhttp://shop.ahlei.org/Club-Management_c_21.htmlhttp://shop.ahlei.org/Front-Office-_c_12.htmlhttp://shop.ahlei.org/Club-Management_c_21.htmlhttp://shop.ahlei.org/General-Management_c_27.htmlhttp://shop.ahlei.org/Guest-Service_c_13.htmlhttp://shop.ahlei.org/Housekeeping-_c_14.htmlhttp://shop.ahlei.org/HR_c_28.htmlhttp://shop.ahlei.org/Maintenance-Engineering_c_30.htmlhttp://shop.ahlei.org/Risk-Management_c_33.htmlhttp://shop.ahlei.org/Sales-Marketing_c_15.htmlhttp://shop.ahlei.org/Spa_c_16.htmlhttp://shop.ahlei.org/Spa_c_16.htmlhttp://shop.ahlei.org/Sales-Marketing_c_15.htmlhttp://shop.ahlei.org/Risk-Management_c_33.htmlhttp://shop.ahlei.org/Maintenance-Engineering_c_30.htmlhttp://shop.ahlei.org/HR_c_28.htmlhttp://shop.ahlei.org/Housekeeping-_c_14.htmlhttp://shop.ahlei.org/Guest-Service_c_13.htmlhttp://shop.ahlei.org/General-Management_c_27.htmlhttp://shop.ahlei.org/Club-Management_c_21.htmlhttp://shop.ahlei.org/Club-Management_c_21.htmlhttp://shop.ahlei.org/Front-Office-_c_12.htmlhttp://shop.ahlei.org/Club-Management_c_21.htmlhttp://shop.ahlei.org/Club-Management_c_21.htmlhttp://shop.ahlei.org/Food-Beverage_c_24.htmlhttp://shop.ahlei.org/Financial-Management_c_23.htmlhttp://shop.ahlei.org/Club-Management_c_21.html -
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DEFINITION
The process by which the managers influence other members of the organization
to implement the organization strategies (Anthony & Govindarajan)
ControlPart of Strategy Implementation
TYPES OF CONTROL
Strategy Formulation
Management Control
Operational Control
Definition and types of Management Control
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Formal Management Control
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The main aspects of the Control process deals with:
Risk management
Audit Process
Disclosures
Capital Budgeting
Control Processes
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General Economic Conditions
Socio-political Risk
Competition from international hotel chains
Increased Outbound travel
Foreign Exchange fluctuation risk
Risk Management and Concerns
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Concentrating on the budget planning and asset allocations.
There is a strict allocation of budget for the respective hotels under group and
pre-determined targets for the appraisals.
The company divisions are the profit centers and have set guidelines to be met
under the budgetary planning done by the organization.
All the approvals regarding the capital investments are from the top
management and there is nothing which can be done without the managements
go.
Capital Budgeting
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Behind the Scene
ReservationParameters Call Conversion Talk time FIT business Up-sell Cross-sell
System Reservation Guest feedback CRM
Front OfficeParameters Check in time Check out time Problem resolution Up-sell Cross-sell Customer feedback
System PMS Guest feedback
HousekeepingParameters Zero defect room Time to re make Response time Resolution time Customer feedback
System PMS Guest feedback Service delivery
Restaurant ServiceParameters
Time to serve Accuracy of serve Up-sell Customer feedback
System POS Customer feedback Service delivery
system
Laundry ServiceParameters
Zero defect laundry Time to service Customer feedback
System PMS Customer feedback Service delivery
system
Credit FunctionParameters
Error in invoicing DSO Customer feedback Internal customer
feedback
System PMS Customer feedback AR
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Behind the scene Value Chain
B
R
AN
D
I
N
G
B
R
AN
D
I
N
G
Loyalty Programs
Sales &Marketing Support
Standard Operating
Procedure & guestfeedback system
CentralizedProcurement
Reservation
Network
Employee
Motivation
Program
Finance &legal responsibility
Workforce
TrainingConstruction and
Project Management
Taj
Exotica
Sales &Marketing Support
CentralizedProcurement
Finance &legal responsibility
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Organization Structure
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Balanced Scorecard
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Balanced ScorecardFinancial Perspective
Goal Weight
(x of 10)
Description Performance
(%)
Measure
unit
Target
Values
3 53.63%
Wage Costs as a % of total sales 3 It refers to wage cost
as a % of total sales of
the hotel.
40% % 0%
Annual operating profit per room 3 It refers to annual
operating profit per
room available in the
hotel.
10000 $ 25000
Food cost as a % of food sales 2 Metric is not availablein trial version
40% % 0%
% increase in labor costs 2 Metric is not available
in trial version
20% % 0%
Financial Perspective 53.63%
Customer Perspective
Goal Weight
(x of 10)
Description Performance
(%)
Measure
unit
Target
Values
3 65.56%
Number of positive feedbacks 3 It refers to number of
positive feedbacks
received from the
customers (on a scale
of 1 to 10).
9 Score 10
Number of complaints received 2 It refers to number ofcomplaints received
from the customers
regarding the services
provided by hotel (on a
scale of 1 to 10).
3 Score 10
Response rate 3 Metric is not available
in trial version
1 minutes 1
Frequent customers as a % of total
customers
2 Metric is not available
in trial version
30% % 100%
Customer Perspective 65.56%
Efficiency
Goal Weight
(x of 10)
Description Performance
(%)
Measure
unit
Target
Values
2 29.67%
% of room booked through
reservation channels
2 It refers to % of room
booked through
reservation channels
maintained by thehotel.
25% % 100%
Internet bookings 2 indicates the % of
bookings received
through internet
services.
30% % 100%
Room occupancy 2 Metric is not available
in trial version
60% % 100%
Rate of sales inquiry conversion 2 Metric is not availablein trial version
30% % 60%
Average length of stay 2 Metric is not available
in trial version
2 days 4
Efficiency 29.67%
Staff perspective
Goal Weight
(x of 10)
Description Performance
(%)
Measure
unit
Target
Values
2 65.78%
Staff turnover 3 It refers to staffturnover rate at the
hotel.
10% % 0%
Technological competence of staff 2 It means the
competence of staff to
accurately utilize
technological
equipment like POS,
telephone, etc. (on a
scale of 1 to 10).
9 Score 10
Average length of employment 3 Metric is not available
in trial version
7 Score 10
Number of training sessions 2 Metric is not available
in trial version
3 # 5
Staff perspective 65.78%
Hotel Management Balanced Scorecard
Perspective Performance
Financial Perspective 53.63%
Customer Perspective 65.56%Efficiency 29.67%
Staff perspective 65.78%
Total Performance 54.85%
Scorecard includes 4
categories, 17 indicators
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Thank you.