mcs hotel control system

7/28/2019 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
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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)


(%)

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)


(%)

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)


(%)

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.

mcs hotel control system

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