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Accommodation Management

PART A

1. Define forecasting.

        Forecasting is a decision-making tool that helps businesses predict future outcomes based on past events and management insight.

2. What is rule thumb approach?

         Rule of thumb is a general principle or guideline that provides practical advice for approaching or accomplishing a task. It’s a method of procedure that’s based on experience and common sense, and is not intended to be scientifically accurate

3. What do you understand by capital budget?

        Capital budget is a long-term plan that outlines the financial demands of a major investment, purchase, or development. It’s a process that companies use to evaluate and prioritize potential investments that can significantly impact the company’s financial standing.

4. What are the advantage of budgeting control?

  • Efficiency
  • Motivation
  • Performance measurement
  • Planning
  • Resource allocation
  • Coordinate activities
  • Co-ordination
  • Communication
  • Consciousness
  • Decision-making
  • Establish clear financial goals
  • It can lead to financing opportunities
  • Uncertain future Coordination
  • Budgetary revision required Helps maximize profit
  • Set budget goals
  • Boosting profitability

5. Define Potential average single rate.

  • Potential average single rate : Potential average single rate (PABS) is the average rate a hotel would charge for a single room if it didn’t vary the rate by room type. It’s calculated using a weighted average when the single rate does vary by room type
  • Potential average double rate : The potential average double rate is the average rate that a hotel could charge for double rooms if all double rooms were sold at the rack rate. The formula to calculate the potential average double rate is:

Potential Average Double Rate = (Double Room Revenue at Rack Rate) / (Number of Rooms Sold as Double)

  • Room rate achievement factor

Hotel’s room rate achievement factor (AF) is the percentage of the rack rate that the hotel actually receives

6. What are the major benefits of forecasting?

Forecasting can be helpful in many ways, including:

  • Planning: Forecasting helps businesses plan for the future by providing information about current and past trends, and predictions about the future. This helps businesses understand their operations and the market, and identify opportunities and challenges.
  • Decision making: Forecasting can help businesses make important decisions by providing relevant and reliable information.

7. What do you mean by time and motion study?

Time-and-motion study is a systematic analysis of how long it takes to perform a job or series of jobs, and the physical activity involved in each step. The goal of a time-and- motion study is to improve work methods by:

  • Standardizing work
  • Checking the efficiency of people and equipment
  • Increasing productivity
  • Identifying where improvements can be made

8. Difference between security and safety in hotel?

Hotel, safety is about preventing unintentional accidents, while security is about preventing intentional crimes:

  • Safety : Involves preventing accidental damage caused by physical hazards like natural disasters or accidents. Examples include emergency exits and protecting people and the environment from dangerous machinery.
  • Security : Involves preventing intentional damage caused by external factors like theft or cyber- attacks. Examples include building protection and protecting machines so that people can’t stop them or turn off safety functions

9. What is water clarity?

Water clarity, also known as turbidity, is the measure of how clear water is, or how well light can pass through it:

  • Visual clarity: How deep you can see into the water with your eyes
  • Light penetration: How much light reaches underwater, which affects the growth of aquatic plants and algae

10. Explain about why we need interior decoration in hotels?

Interior design in hotels is important because it can significantly impact the guest experience and the hotel’s bottom line. Here are some reasons why:

  • Create a welcoming atmosphere: A well-designed interior can make guests feel comfortable and relaxed.
  • Set expectations: The lobby is the first thing guests see, so it can set the mood and communicate expectations.

PART B

11(a) What are the major benefits of forecasting.

Forecasting can be helpful in many ways, including:

  • Planning: Forecasting helps businesses plan for the future by providing information about current and past trends, and predictions about the future. This helps businesses understand their operations and the market, and identify opportunities and challenges.
  • Decision making: Forecasting can help businesses make important decisions by providing relevant and reliable information.
  • Setting goals: Forecasting can help businesses set goals and evaluate their progress.
  • Operational efficiency: Forecasting can help businesses improve operational efficiency by optimizing production, logistics, distribution, budgeting, and resource allocation.
  • Reducing waste: Forecasting can help businesses minimize waste and streamline operations.
  • Investing wisely: Forecasting can help businesses identify areas to invest in, such as new product launches, new talent, or digital marketing.
  • Learning from the past: Forecasting can help businesses learn from past mistakes and adjust their strategy.

11(b) What is the effect of occupancy forecasting on hotel?

Occupancy forecasting helps hotels in many ways, including:

  • Revenue management : Accurate occupancy forecasting is essential for effective revenue management. It helps hotels understand their property’s future demand and revenue performance.
  • Staff management : Occupancy forecasting helps hotels plan the number of staff on-shift and understand what tasks are required to keep the hotel running efficiently.
  • Pricing strategies : Occupancy forecasting helps hotels optimize pricing strategies. For example, hotels can identify opportunities to increase prices during times of high demand.
  • Resource allocation : Occupancy forecasting helps hotels improve resource allocation.
  • Financial goals : Occupancy forecasting helps hotels build realistic financial and budget goals.
  • Strategic decision-making : Occupancy forecasting plays a vital role in strategic decision-making, shaping both the short and long-term success of a property.

Occupancy rate is the percentage of rooms occupied over a specific period. A higher occupancy rate often signifies robust demand, while a lower rate might indicate the need for promotional activities or rate adjustments.

12(a) Explain in brief any five types of budget required in front office?

Here are five types of budgets that may be used in a business:

  • Static budget : Tracks fixed expenses like rent, insurance, payroll, and utilities
  • Cash flow budget : Estimates a business’s cash flows over a specific period of time
  • Operating budget : Outlines expenses that will be covered to keep a business generating revenue
  • Cash budget : Plans for cash inflow and outflow for a specific period of time
  • Overhead budget : Includes fixed and variable overhead costs for a specific period

12(b) What is capital and operational budget for front office?

Capital and operational budgets are different in terms of the type of expenses they cover, their time frame, and their purpose:

  • Capital budget : A long-term plan that outlines the financial requirements for a major purchase, investment, or development. Capital budgets are typically used for large, infrequent expenses, such as purchasing real estate, new equipment, or health insurance. They are used to analyze the profitability of a long-term endeavor.
  • Operational budget : A short-term plan that covers the recurring expenses needed for a business’s daily operations. Operational budgets are usually used for smaller, more frequent expenses, such as salaries, equipment expenditures, and office WiFi. They are used to track a business’s revenue and expenses.

Funds from the Capital Budget are specific and may not be used for personnel costs and annual operating costs. The Operating Budget includes personnel costs and annual facility operating costs.

13(a) What are the application of yield management room division?

Yield management (YM) is a variable pricing strategy that can be applied to hotel room reservations to maximize revenue. Some applications of yield management in the hotel industry include:

  • Forecasting : Analyze historical data, market trends, and booking patterns to forecast demand and adjust pricing
  • Segmentation : Segment customers based on demographics, behavior, booking patterns, and preferences to tailor pricing and promotional strategies
  • Understanding customers : Analyze data related to hotel revenue to understand your customer’s needs and preferences
  • Seasonality : Alter rates to increase revenue based on seasonality, special events, and high demand Market mix

Understand that different market segments will be willing to pay different rates at different times

Yield management can help hotels:

  • Maximize revenue
  • Optimize occupancy
  • Improve profitability
  • Enhance the guest experience
  • Achieve financial stability
  • Gain valuable insights into market dynamics

13(b) What are the challenges and problems in yield management.

Yield management is a complex process that involves balancing room rates and sales volume to maximize revenue. Some challenges and problems with yield management include:

  • Data management : Yield management requires accurate data, but businesses may not have the right systems to collect, manage, and analyze it.
  • Demand forecasting : Inaccurate demand forecasting can lead to poor pricing decisions and inventory management.
  • Customer satisfaction : Frequent price changes can lead to customer dissatisfaction.
  • Overbooking : Overbooking can maximize revenue, but it can also lead to customer dissatisfaction if not managed properly.
  • Technology : While technology can enhance yield management, it should not replace strategic thinking and decision-making.

14(a) What is duty roaster? Write advantages of duty roaster.

Duty roster is a schedule that organizes employee shifts to ensure adequate staffing and coverage. It can help with many aspects of a business, including:

  • Resource allocation: A duty roster helps managers make the most of their human resources by clearly outlining who is working when and on what tasks.
  • Communication: A duty roster informs employees of their schedules and responsibilities.
  • Accountability: A duty roster helps track employee attendance, punctuality, and performance.
  • Labor and wage costs: A duty roster helps control labor and wage costs by scheduling based on need.
  • Employee morale: A well-planned roster can boost employee morale.
  • Fairness: A rotating roster can be considered a fairer rostering method because it distributes less desirable shifts among all staff.

Some other advantages of a duty roster include: Minimizing wage costs, Flexible rosters, Making updates in real time, Satisfying employee preferences, and Achieving desirable distribution of days off.

14(b) Explain about standard operating manuals standard operating job procedures.

Standard operating procedure (SOP) is a document that provides step-by-step instructions for completing a task or process. SOPs are used to ensure that tasks are performed consistently and efficiently, and to help maintain safety and quality. They are used in a variety of industries, including finance and healthcare.

Here are some characteristics of SOPs:

  • Consistency: SOPs are followed the same way each time to ensure consistency and compliance with industry regulations.
  • Efficiency: SOPs help to increase efficiency and reduce errors. Safety: SOPs help to create a safe work environment.
  • Quality: SOPs help to maintain quality and produce high-quality output.
  • Documentation: SOPs include information on equipment, supplies, policies, and procedures.
  • Structure: SOPs are typically structured with titles, warnings, instructions, and supply lists.
  • Types: There are different types of SOPs, including flowcharts, checklists, and step-by- step

Some best practices for creating SOPs include:

  • Involving employees who participate in the process to help prepare the document
  • Using tables, flowcharts, images, and photos to illustrate and facilitate understanding
  • Keeping documents updated and employees trained on each new revision

15(a) Hue

Hue has multiple meanings, including a color property and a city in Vietnam:

  • Color property : Hue is a color’s dominant wavelength, and is one of the main properties of color. It’s the aspect of color that allows us to identify it as red, yellow, green, blue, or something in between.
  • City in Vietnam : Hue is a city in central Vietnam. It’s accessible by domestic flight from Hanoi and Ho Chi Minh City, train from the Reunification Express line, open bus, or private car from the international airport in Da Nang.

Tint : Tint is a small amount of colour. Its large leaves often show a delicate purple tint. Green has many different shades and tints. Synonyms: shade, colour, tone, hue More Synonyms of tint.

Shade : Slight darkness caused by something blocking the direct light from the sun: The sun was hot, and there were no trees to offer us shade. In/under the shade of The children played in/under the shade of a large beach umbrella

Tertiary colors : Tertiary colors are colors that are created by mixing primary and secondary colors: Examples Blue-green, blue-violet, red-orange, red-violet, yellow-orange, and yellow-green E.Binary. Binary color has multiple meanings, including a color created by mixing two primary colors, and a way to represent images using binary numbers: Color created by mixing two primary colors

PART – C

16(a) Explain in detail about types of forecasting.

Forecasting is a method of predicting future events or conditions by analyzing historical and current data. It is a planning tool that helps businesses prepare for uncertainty by making informed decisions.

Forecasting is used in many areas, including:

  • Business: Forecasting can help businesses estimate customer demand, project sales, and allocate resources. For example, businesses can use forecasting to determine how much inventory to stock, how to budget for each department, and which products or services to prioritize.
  • Supply chain management: Forecasting can help ensure that the right products are in the right place at the right time.
  • Economic forecasting: Forecasting can be used to predict economic conditions.
  • Weather forecasting: Forecasting can be used to predict weather conditions, such as floods.

Forecasting is often associated with big data analytics and predictive analytics. Many forecasting techniques use artificial intelligence (AI) and machine learning methods to build forecasts more quickly and accurately.

The five steps in a forecasting task are:

  • Problem definition
  • Gathering information
  • Preliminary exploratory analysis
  • Choosing and fitting models
  • Using and evaluating a forecasting model

Forecasting refers to the practice of predicting what will happen in the future by taking into consideration events in the past and present. Basically, it is a decision- making tool that helps businesses cope with the impact of the future’s uncertainty by examining historical data and trends.

Judgement Forecasting : Judgement forecasting uses only our intuition and experience. Our minds are able to make connections and understand the context in a way that no computer can. However, we’re also prone to certain biases that make analyzing large amounts of data difficult. Judgment forecasting is best where there is little to no historical data- such as new product launches, competitor actions, or new growth plans.

Quantitative Forecasting : Quantitative forecasting uses analytics to analyze large amounts of historical data in order to discern trends and patterns. Quantitative forecasting is excellent at churning through large amounts of data and is less prone to bias. However, it is weakest when there is little to no historical data that can be analyzed. Quantitative forecasting relies, more or less, on identifying repeated patterns in your data so it may take a while to see the same pattern repeat more than once. Combining judgment and quantitative forecasting gets the best results.

16(b) Enlist the various formulas to measuring the yield (atleast any 6).

The yield of a stock, bond, or other asset is the earnings generated and realized on an investment over a particular period of time, including the interest it earns or the dividends paid to investors.

The yield of a stock, bond, or other asset is the amount of money its investors are paid. An investment’s yield includes the interest it earns or the dividends paid to investors.

Yield is expressed as a percentage based on the invested amount, the current market value, or the face value of the security. For example, Microsoft Corp. (MSFT) announced on March 12, 2024, that it would pay a quarterly dividend of $0.75 per share on June 13, 2024. That means the stock’s yield is 0.75%. Owners of the stock’s shares will be paid $75 for every 100 shares they own.

Note that dividend yield is not the same as total return, which reflects any increase in the market value of the asset as well as the dividend payment. If an owner receives the Microsoft dividend on June 13 and sells the shares the next day, the total return or the investor’s total yield for Microsoft stock would include any increase in the value of the stock as well as the dividend payment

The gross yield is the return on the investment before taxes or other expenses. Yield (or net yield) should not be confused with total return, which is a more comprehensive measure of return on investment. Net yield is calculated as:

Yield = Net Realized Return / Principal Amount

For example, the gains and returns on stock investments can come in two forms. First, it can reflect a price increase, such as occurs when an investor purchases a stock at $100 per share and, after a year, sells it for $120. Second, the stock may pay a dividend, say $2 per share, during the year. The yield would be the appreciation in the share price plus any dividends paid, divided by the original price of the stock.

There are multiple formulas for calculating yield, depending on the type of investment and the type of yield:

  • Stocks : Yield is calculated by dividing the price increase plus dividends by the purchase price.
  • Bonds : Yield can be calculated as cost yield or current yield. Cost yield is the returns as a percentage of the original price of the bond, while current yield is measured in relation to the current price.
  • Real estate : Yield rate, also known as the capitalization rate or cap rate, is calculated by dividing the net rental income by the property’s value.
  • Percent yield : Percent yield is calculated by dividing the actual yield by the theoretical yield and multiplying by 100.
  • Yield to maturity (YTM) : YTM is calculated using the formula

17(a) Explain the diagram of back washing cycles in pool. What are the needs and techniques are used?

Backwashing is a process that cleans a pool’s filter by flushing out debris and contaminants. Here’s a general overview of the backwashing process:

  • Turn off equipment: Turn off the pool’s equipment.
  • Rotate the valve: Rotate the valve to the “Backwash” position.
  • Turn equipment back on: Turn the equipment back on and run the first cycle.
  • Repeat: Repeat steps 1–3 two more times.
  • Rotate the valve again: Rotate the valve to the “Filter” position.
  • Turn equipment back on: Turn the equipment back on and add new DE powder.

Backwashing is usually necessary when the pressure gauge indicates a pressure increase of 8–10 pounds above the clean or “startup” pressure. It can also be necessary if there’s an abnormal amount of dirt, dust, or debris in the pool water.

Backwashing removes water from the pool, so it’s important to test and balance the pool’s chemicals afterward

First, the filter is taken offline and the water is drained to a level that is above the surface of the filter bed. Next, compressed air is pushed up through the filter material causing the filter bed to expand breaking up the compacted filter bed and forcing the accumulated particles into suspension.

You have two main options to drain or backwash your pool:

  • YOUR YARD. This is a great option since it allows you to reuse water you already paid for and could reduce your landscape water use. …
  • THE SANITARY SEWER. You can also drain or backwash your pool into your home’s sanitary sewer cleanout.

There are several techniques and methods used to assess needs and gather requirements, including:

  • Needs assessment : Common formats include surveys, interviews, focus groups, and key informant interviews.
  • Requirement gathering : Techniques include interviews, questionnaires, user observation, document analysis, interface analysis, workshops, brainstorming, role-play, use cases and scenarios, focus groups, and prototyping.
  • Requirement prioritization : A strategy that involves categorizing needs into priority groups, such as critical, moderate, and optional.
  • Budgetary control : A tool for planning and controlling that helps organizations enhance efficiency by controlling costs and wastages.
  • Inventory management : There are four main types of inventory management: just-in-time management (JIT), materials requirement planning (MRP), economic order quantity (EOQ), and days sales of inventory (DSI).
  • Trend projection : A quantitative method of demand forecasting that uses statistical analysis or regression analysis to predict future demand levels.
  • Consistency : Being consistent when setting schedules, holding meetings, or conducting performance reviews can help promote group unity.

17(b) Describes the following types of wall covering help in interior decoration.

(i)Paints

You can explore the different types of interior wall paints and select the paint that fits your project, from the paints given below:

  • Emulsion Paints : Emulsion Paint is water-based, hence it is easy to apply and dries quickly. The paint is normally used for areas with a lot of human traffic because provides excellent coverage, durability, and a smooth finish.
  • Matte Paints : Matte range of paints comes in a non-reflective, classy finish to bring about an elegant interior look. These matte finishes are very popular among the Asian Paints interior paint collection and are useful in hiding imperfections and creating a seamless finish. They are most popularly used for bedrooms and living spaces.
  • Gloss Paints : If you want to give your home a luxurious look, then Gloss Paints are the perfect paints, as they provide a shiny surface touch to your home. Being highly durable and with easy cleaning properties, they best suit a kitchen and bathroom area, hence giving a neat look.
  • Satin Paints : Satin paints offer a soft, low sheen to create a look of both matte and gloss home interior colour paints.

(ii)Wood

Wooden interior design can add a warm, cozy feel to a space, and can complement a variety of design styles:

  • Versatility: Wood is a versatile material that can work in many different design styles, from rustic to modern.
  • Timeless: Wood is a classic material choice that can remain in style for years.
  • Natural beauty: Wood can bring the natural beauty of the outdoors inside, creating a calming environment.
  • Symbolism: Wood can represent inner strength, stability, and the ability to withstand challenges.
  • Connection to nature: Wood is an organic material that can connect people with nature.

Here are some ways to use wood in interior design:

  • Furniture: Wooden furniture can add a creative, chic, and sophisticated appeal to a room.
  • Wall art: Painted walls and wood art are trendy ways to use wood as a décor piece. Flooring: Wooden flooring is a popular use of wood in interior design.
  • Ceilings: Wood can be used on ceilings to add volume and make a space look more spacious.
  • Fenestrations: Wood can be used for doors and windows.
  • Wood skins: Wood skins can be used to display wooden interior design.

(iii)Wallpaper

Wallpaper is a decorative paper that can be used to cover walls in interior design. Here are some things to consider when using wallpaper in interior design:

  • Size of the room : A large, bold print in a small room can make it look bigger. In a large room with high ceilings, patterned wallpaper can make it feel smaller.
  • Style : The style of the wallpaper should match the style of the room. For example, a world map wallpaper might look good in an office, while a space adventure wallpaper might look good in a kid’s room.
  • Light : In dark rooms or rooms without much light, light-colored wallpaper or floral motifs can make the space feel brighter.
  • Ceilings : Linear patterns can make short ceilings feel taller.

18(a) Explain about the method which is given below used to do time and motion study:

Pathway chart

Pathway chart is a visual representation of different paths a student can take when faced with a triggering antecedent. The three pathways are:

  • Upper Pathway: Desired behavior
  • Middle Pathway: Challenging behavior
  • Lower Pathway: Acceptable alternative or replacement behavior

To create a pathway chart, you can follow these steps:

  • Discuss the challenging behavior
  • Discuss the desired alternative behavior
  • Discuss the replacement behavior

A pathway chart can also refer to a tool for making a motion and time study in the home. To create a pathway chart for this purpose, you can:

  • Draw a floor plan to scale
  • Fasten it to a drawing board or wallboard
  • Use pins and thread to make the study
  • Process chart

Process chart, also known as a flow chart, is a diagram that visually represents the steps and sequences of a process or workflow. Process charts can be used to:

  • Organize business processes: Break down complex procedures into simple diagrams that can help improve productivity and teamwork
  • Streamline processes: Identify opportunities to improve organizational efficiency
  • Represent the flow of a product: Show the operations a product goes through without regard to the location of the workstations

Some types of process charts include:

Flow process chart : A graphical representation of the activities performed on a work piece during an operation

Outline process chart : Also known as an operation process chart, this chart shows the operations, inspections, and storage for all the components of a product or assembly

  • Micro-motion film analysis : Micro-motion film analysis: using a timing device, every activity is filmed. Then a detailed study, especially of the finer movements of the hands and other parts of the body, helps analyse the areas where changes need to be or can be made to carry out the task with the least expenditure of time and energy.
  • Chronocyclography : Chronocyclegraph uses an interrupter to flash the bulb on and off, creating a dotted line path that indicates hesitation points through dot spacing.
  • Cyclography : Cyclograph (also known as an arcograph) is an instrument for drawing arcs of large diameter circles whose centres are inconveniently or inaccessibly located, one version of which was invented by Scottish architect and mathematician Peter Nicholson.

18(b) Define “yield”. ‘Revenue Management is an effective tool to maximize profit. Justify the statement in approx 500 words?

Yield is the maximum revenue that can be generated from a set inventory of rooms.

Yield management is a pricing strategy that aims to maximize yield by adjusting prices based on demand and supply factors. It’s also known as revenue management.

Here’s why revenue management is an effective tool to maximize profit:

  • Maximizes revenue: Revenue management aims to generate higher prices from more profitable customers while minimizing costs.
  • Optimizes rate and occupancy: Revenue management aims to find the optimal balance between occupancy and rate.
  • Maximizes RevPAR: Revenue per Available Room (RevPAR) is a key metric in revenue management.

Yield has multiple definitions:

  • Financial term : The income generated by an investment, usually expressed as a percentage of the investment’s cost or market value. For example, the yield of a bond is the interest payments an investor receives, and the yield of a stock is the dividend payments.
  • Agricultural term : The amount of agricultural production, especially per acre of crop. For example, “The apple trees yielded an abundant harvest”.

Verb

To produce or provide something, especially as a result of time, effort, or work. For example, “The seeds yield a rich oil”.

  • To give way : To stop in order to allow other vehicles to go past, especially before driving onto a bigger road. For example, “If you’re going downhill, you need to yield to bikers going uphill”.
  • To surrender : To give up or agree to forgo the power or possession of another. For example, “The soldier yielded when the commanding officer threatened a formal charge of insubordination”.
  • To move, bend, or break : To move, bend, or break because of pressure. For example, “Despite our attempts to break it, the lock would not yield”., revenue management is an effective tool to maximize profit: Predicts demand

Revenue management uses data analysis to predict customer behavior and market trends. This helps companies understand what customers are willing to pay and when they are most likely to book.

  • Optimizes pricing : Companies can use this information to adjust prices in real-time, or develop dynamic pricing packages.
  • Manages inventory : Revenue management helps companies ensure they have the right amount of inventory to meet demand.
  • Promotes the right product or service : Revenue management helps companies sell the right product or service to the right customer at the right time.
  • Improves market positioning : Revenue management can help companies improve their market positioning and profitability.

Revenue management is used across many industries, including: Hospitality, Airlines, Retail, and SaaS companies.

Some strategies for effective revenue management include: Analyzing competitors’ pricing strategies, Segmenting customers based on their characteristics, and Monitoring key performance indicators (KPIs).

Revenue management (RM) is a discipline to maximize profit by optimizing rate (ADR) and occupancy (Occ). In its day to day application the maximization of RevPAR

(Revenue per Available Room) is paramount. It is seen by some as synonymous with yield management.