Hyatt Regency DelhiSubmitted by-Kartik Agrawal

Manisha AnantharamMegha Singla

Neeraja PadmanNiharica MehtaNirankar Royal

Established in 1957 - small hotel at the Los Angeles International Airport

Today has 483 properties in almost 45 countries

Brands: Park Hyatt Andaz Grand Hyatt Hyatt Hotels Hyatt Regency Hyatt Place Hyatt House Hyatt Vacation Club Hyatt Resorts

Hyatt Corporation

Mission – “to provide authentic hospitality by making a difference in the lives of the people we touch every day”

Goal - “to be the most preferred brand in each customer segment that we serve for our associates, guests and owners”

Values of “mutual respect, intellectual honesty and integrity, humility, fun, creativity and innovation”

Strategy◦ Focus on Improvement in the Performance of

Existing Hotels◦ Expanding Presence in Attractive Markets

Business Environment◦ Intense Competition◦ Seasonal and Cyclic ◦ Federal, Foreign, State and Local Government

Laws and Regulation

Operated by Asian Hotels (North) Ltd. 5-Star Deluxe Hotel Located at Bhikaji Cama Place 517 rooms and suites

Hyatt Regency Delhi

To ensure brand loyalty

To ensure customer satisfaction

To maximize shareholder’s wealth

To increase the occupancy rate

To undergo major expansion plans

Competitive priorities

Marginal increase in its Average Room Rate

Foray into ‘Serviced Apartments’

Need for improvement in existing infrastructure.

Current geo political situations raises a problem.

Current situation in the firm

Number of new hotels have sprung up .

Recent economic crisis in the United States.

Improved Average Room Rates in the metros.

Contd .

Direct effect on hotel’s revenues and profit margin

Efficient planning and decision making Main driver of pricing and room allocation

decisions Human resource planning Inventory control Helps in overbooking (revenue management

technique)

Why forecasting is important?

Moving Average Method◦ Simple◦ Weighted

Both cannot account for seasonal changes or trends Exponential smoothing:

◦ Simple◦ Double: smoothes out trends◦ Triple: smoothes out seasonal changes

Forecasting Techniques

Exponential methods are reasonably accurate.◦ Advanced methods like Monte Carlo simulation also

available

Hotels forecast on a month to month basis. ◦ This month last year is reasonably accurate measure◦ Overall yearly estimate /budget varied according to

developments during the year

The revenue manager usually manages the forecasts based on inputs from various sources◦ Different Software available for forecasting◦ Method subjective to specific hotel

Forecasting Techniques cont

Type MAD MAPD (%)

Simple exponential smoothing

.2 521.038 4.499

.3 566.786 4.875

.5 631.259 5.399

Adjusted exponential smoothing

.2 548.487 4.72

.3 433.137 4.07

.5 679.614 5.78

Correlation coefficient 44.87%

Results

Based on simulating forward in time the actual process of reservations

Considers factors like reservations, arrivals, cancellations, duration of stays, no shows, group reservations, seasonality and trend

Multiple simulated forward paths are created for each factor and then mean of these paths at any future instant of time t is taken.

Monte-Carlo Simulation

Objective is convenience of customer Efficient utilization of available space –

more number of covers increased revenue Cost of operations Flow of goods from receiving to service Smooth circulation of customer traffic Flexible operations Make it appealing to attract the guest Safe and hygienic

Service layout

Fixed position - a single, fixed position at which the service is processed by workers who move to that position for them to carry out their work.

Process Layout - Activities are grouped together non-sequentially to allow a range of different products to be made. Breakdown of one machine/Activity does not halt process.

Facility layouts in hotels

HOTEL DEPARTMENT LAYOUT

Front office Process Layout

House-keeping Fixed Layout

Kitchen Process Layout

Bars Process Layout

Restaurant Fixed Layout

Room Service Fixed Layout

Leisure Facilities Process Layout

Amongst the best all day dining restaurants in India

140 Covers Serves buffet and A la carte Contributes 24.13% towards total F&B

revenue Serves light meals (A la Carte) and lunch &

dinner buffet

Café - the coffee shop

Profile of guest – Upper class, mainly business people

Short length of stay quick service Type of menu – light A La Carte menu and buffet Amount of money customer is willing to spend –

Rs. 1500 – Rs. 3000 140 covers so as to maximize the revenue Pleasant atmosphere and complements the

décor “open” look of the restaurant Level of lighting Bright Efficient use of location - mirror wall to use

sunlight and save energy

Cafe

Low sound as guests wants to have a conversation

To reduce the distance between buffet counter and guest tables, dessert, salad and juice counter are located away from main counter so as to ease out the traffic

Whole restaurant is divided into 5 sections Each section serves to approx. 24 counters Each section has a separate service station

and billing desk for quick service

Contd.

Dimension of tables = 4 feet * 2 feet flexible operation-These tables have two

covers, however they can be joined for group of 4 or more guest

Placement of tables square and rhombus for efficient utilization of space

Waiters serve during buffet as well so as to lessen the traffic around buffet counters

Two exits for guests

Contd.

Divison of work areas

Flow of customer traffic

Restaurant manager (1)

Assistant manager (1)

Team Leader (4)

Stewards (28)

Cleaners (6)

Hierarchy

To place the juice counter in place of dessert counter to ease out the flow

Increase the number of staff members from two to four per section per shift

Increase the space between some guest tables

Our recommendations

The effluent fittings are permanent and can’t be changed.

Difficult that they may face while applying the recommendation