The Effect of Yield Management on Hotel Chains

Yield, or revenue management, is the process by which sales of a limited quantity of goods, such as hotel rooms, airline seats, apartment leasing, rental cars, or etc. are managed in order to maximize profits. Successful yield management focuses on selling the product in such a manner that is timely, price competitive, and directed towards the right subset of customers. An economic concept first posited by Dr. Matt H. Keller, and first used by the airline industries beginning in the 1970s, yield management has evolved in more recent years as an important tool especially for the airline and hotel industries for staying economically competitive in otherwise saturated business playing fields.

The basic concept of yield management is based in the economic principle of supply and demand: when supplies are short, prices go up; when supply is high, prices go down. Yield management is a studied, systematic method by which managers can logically place customers within the supply demand spectrum, and thus gain the highest yield for their products. For example, a customer who has very little flexibility in his or her travel plans is the customer who is most likely to pay a higher price for airline tickets and hotel rooms. The customer with a great deal of flexibility is not as inclined to pay a higher price.

Hotel Chains and Yield Management

Many hotels rate their success by their occupancy levels, but this isn't necessarily the best measure of success. Another way to rate a hotel's performance is by determining its REVPAR, or Revenue Per Available Room. REVPAR is calculated by dividing the total room revenue by the total number of rooms. For example, a hotel that makes $6,000 one night with a total number of 100 rooms has a REVPAR of $60.

The yield manager's job is to maximize the revenue per available room by selling rooms to the right customers, at the right price, at the right time. How does the yield manager accomplish this somewhat nebulous task?

Successful yield management arises from several factors: an understanding of what the hotel hopes to achieve (whether that is room occupancy, REVPAR, or some other measurement); a clear understanding of what kind of hotel the manager is working with, which will lead to an understanding of what a customer visiting the hotel wants in his or her hotel experience, and why customers choose their hotel over another hotel; an ability to measure group sales against the overall goals of the hotel (for example, a hotel whose main goal is occupancy will be happy to host a large group at a lowered rate, but a hotel whose main goal is revenue may turn down a larger group in favor of a smaller group who can pay a higher rate); and a knowledge of what will cause the market to fluctuate (such as holidays, regular regional and local events, etc.). The yield manager will ideally consider all these factors when creating different rates for hotel guests.

Typical Yield Management Arrangements

A basic yield management price arrangement might look something like this:

Regular Rate: $89.00

Corporate or Business Rate: $79.00

Triple-A or Other Special Discount rate: $69.00


Other arrangements will take into account seasonal price changes. A mountain resort whose main business is serving winter vacationers, such as skiers and snowboarders, will have a lower supply and higher demand of rooms during winter months, whereas a hotel on the beach can charge more for rooms during the summer months than during the winter months. Hotels can create three seasonal rates: the highest rate for the months during which they expect to serve the most guests, a mid-season rate, and the lowest rate for months during which they have the lowest demand.

Seasonal arrangements do not necessarily need to be tied to the local geography not all hotels are in the mountains or on the beach. City hotel managers must take it upon themselves to learn about the corporations in their area and make personal connections with these corporate executives, learning their business cycles. Different businesses have annual events or conferences that they will be host on a regular basis; it's up to the hotel sales managers to learn these business cycles and cater to these corporate clients.

In conclusion, to stay competitive in today's market, any hotel that wishes to be successful must learn how to apply yield management techniques to their particular situation. Having determined how to gain the highest yield per room, any staff member who interacts with customer must be trained in how to clearly explain room rates to guests. The ability of staff to explain room rates to guests will determine whether customers are happy or unhappy. Their ability will stem from managements' ability to clearly communicate the hotel's goals and yield management principles.

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Posted in: customers,economic principle,focus,highest yield,managers,maximize profits,products,supply and demand,yield management

Golf Course Management: The Complexities Of The Career

It's easy to picture a golf course manager as someone who just makes sure everyone is having a good time playing, but golf course management is actually a complex and challenging career. Anyone who wants to enter this field should understand just how many different hats he or she will be wearing and how many different types of jobs they will be doing to make sure the facility they manage is running smoothly and their customers are happy.

The most obvious focus of the work is Operations; keeping the day to day working of a course, country club or driving range running smoothly. Operations management includes everything from making sure the course opens up on time to making sure cart rental is handled properly and that caddies are lined up for patrons. In the end, it is all about making sure that things happen without a hitch so that patrons are happy and can enjoy playing the game without worries.

The nuts and bolts of Business and Accounting are never far from the mind of a successful course manager, from tracking inventory in the pro shop to knowing what the monthly cash flow is in each department of the course, the manager will oversee millions of dollars and will need an in-depth understanding of how to budget and allocate funds. Fortunately, a bachelor's degree offers business and accounting courses that prepare students for handling all of these details.

Actual course management is another part of the job that contributes to the success of a facility. It requires knowledge of everything from pest management to course design and renovation to make sure the course is always in peak condition and able to compete successfully with other facilities. Changing environmental requirements must also be a concern for anyone in course management.

There is also a portion of managing that requires the same skill set that is needed to successfully run a fine restaurant or hospitality suite. Food and beverage management is taught at academies as a part of the curriculum so that managers can oversee everything from beverage service at the driving range to catering of weddings and banquets in the dining facilities at the club house. These courses will also cover the essentials of ordering and organizing the preparation of the proper quantities of food for special events and tournaments. Decor, inventory and understanding cooking and wait staff needs are all a part of making sure that those dining or drinking at a club's facilities will have a memorable experience.

Marketing and Publicity is essential to successful management. No matter how smoothly the business runs or how fabulous the food and drink service is, if you aren't consistently bringing in new business and successfully retaining the current customers, you won't grow the business. This is why management schools prepare students with courses in marketing, public relations and media relations. Developing strategic partnerships, designing and promoting tournaments, promoting in-house activities and special events and encouraging community outreach are all a part of the success of any club or course, and an experienced administrator will excel in these areas.

Finally, Human Resources are crucial to being the best possible administrator. Recruiting professionals who are the right fit for your green, finding chefs and wait staff who will be an asset to your club's restaurant and understanding how to properly train and retain employees are all crucial skills. You will also need to understand complex payroll, safety and worker's compensation issues. A university offering a bachelor's degree in this industries management will cover all of these areas thoroughly in its coursework.

It's obvious that it takes a well-rounded, highly educated individual to run a country club successfully. A strong business sense is needed in addition to a love of the game and genuine people skills in order to pursue the long term goals of a growing golf facility. Today's academies offer a balanced blend of classroom work and on the greens instruction to prepare students in order to enter the field of golf course management prepared for anything.

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Posted in: bachelor degree,course management,customers,facilities,food and beverage,golf course manager,operations management,successful management

Great Opportunities in a Hotel Manager Career

Though the industry is likely to do well in the long term, the Bureau of Labor Statistics predicts there won't be very much growth in the number of jobs for hotel managers. A lot of new hotels will be economy class and extended-stay hotels, and these kinds of accommodations don't hire as many managers as shorter-stay, more upscale ones. However, increasing business travel and domestic and foreign tourism will drive employment growth of hotel managers and assistants.

Hotel and motels rent rooms to customers. These businesses need employees to clean rooms and check in guests. Larger hotels also need employees to plan conferences, set up rooms for events, and prepare meals for guests. Hotel and motel managers oversee all these departments and make sure employees do good work. Duties vary with the size and type of the business. In small hotels and motels, one manager may be in charge of all departments. In large hotels, each department may be run by an assistant manager. General Managers are in charge of the entire hotel. They often help create budgets, policies, and advertisements. They also may set room rates and fees.

There are several types of assistant managers. Executive housekeepers are in charge of the workers who clean the hotel. They inspect the hotel to make sure that all areas are clean. Front office managers are in charge of reservations and room assignments. Food and beverage managers oversee restaurants and banquets. They plan menus, set prices, and order supplies. Convention services managers coordinate all hotel activities related to meetings. They meet with clients and plan schedules. Then they work with the food service and front office managers to serve and lodge the visitors.

Assistant managers hire, train, and supervise the members of their staff. They assign duties to workers and schedule their shifts. They also solve customers' complaints and answer questions about their departments. In addition, managers write reports about their department. They also order food or supplies and may negotiate contracts with vendors. Assistant managers meet and talk with the general manager several times a week. They also talk to other assistant managers when coordinating large events, such as weddings.

In general, managers of small hotels and motels have more duties than managers of larger businesses. This is because there are fewer employees in smaller hotels and motels. Thus, managers are likely to fill in for absent workers. For example, managers may occasionally clean rooms, take reservations, check guests in and out, or make general repairs. Managers of small hotels and motels have many administrative tasks. They interview, hire, and train new staff. They schedule laundry service deliveries and order supplies. In addition, they keep track of income and expenses.

In short, hotel managers wear a million different hats and juggle a million different tasks. As managers who oversee the running of entire hotels or motels, they must have an incredible eye for detail, enormous organizational ability, and lots and lots of energy. Initiative, self-discipline, effective communication skills, and the ability to organize and direct the work of others are also essential for managers at all levels.

In the course of the day, hotel managers face all sorts of crises. They must make many quick decisions with grace and aplomb. They must have a good sense of business and know how to promote their hotel through advertisements, promotional events and special offers.

Twenty years ago, hotel managers came up through the ranks, usually starting out at the front desk. This is less likely today. An associate's degree can qualify someone to be an assistant manager or manager of a small hotel, but in a large hotel, it's difficult to rise beyond assistant manager without additional education. Most department managers have a bachelor's degree, preferably from a hotel-school program. These programs usually require extensive internships, and this is how future managers get their initial work experience. Hotel executives often have advanced degrees in a specialty or an MBA.

In chain hotels like Sheratons or Marriotts, new managers, even those with hotel school degrees, are usually put through a year-long management trainee program before being assigned to an assistant manager position.

Because hotels are open around the clock, night and weekend work is common. Many hotel managers work more than 40 hours per week. Managers who live in the hotel usually have regular work schedules, but they may be called to work at any time. Some employees of resort hotels are managers during the busy season and have other duties during the rest of the year.

Salaries of hotel managers and assistants vary greatly according to their responsibilities and the segment of the hotel industry in which they are employed. Managers may earn bonuses up to 25 percent of their basic salary in some hotels and may also be furnished with lodging, meals, parking, laundry, and other services. In addition to typical benefits, some hotels offer profit-sharing plans and educational assistance to their employees.

A well-run hotel or restaurant is the result of carefully choreographed teamwork and specific knowledge and training in the administration of such places. A Master's degree in hospitality administration will prepare the student for a career in the aspects of the hospitality industry that are nothing less than vital for the success and growth of these kinds of businesses. The coursework is often quite similar to that undertaken by students in MBA programs, but in this case they focus in on the hospitality industry, as opposed to other aspects of the business world. Courses may include marketing, negotiation techniques, asset management, entrepreneurship, systems analysis, and restaurant and spa development.

The Master of Science Program (MS) taking about 1 1/2-year is geared toward hospitality professionals who wish to continue their careers in an academic or research setting and is designed to help students develop solid graduate-level research skills within a focused hospitality research area. The majority of the student's course work is tailored to the student's area of hospitality research interest and academic and professional background. Students plan their concentration area courses as well as thesis research with their thesis committee.

If you are in high school, find out about CTE courses in Hotel/Motel Marketing, Hospitality Management, Hospitality Services and Travel and Tourism Marketing. These courses can lead to hospitality skills certification from the American Hotel & Lodging Association and the National Occupational Competency Testing Institute.

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Posted in: business,customers,employees,hotel management course,hotel manager career,hotel manager jobs,hotels,motels

Hotel Management jobs and operations

To run a hotel successfully the hotel management plays very important role. It is important that the hotel management jobs must be good and world class.

Hotel industry provides a large number of hotel management jobs opportunities to part time an employee who after getting the pertinent and desired experience always leaves the hotel management jobs? Hotel Industry offers low salary which is also one of the main causes for the low retention rate in this industry.

Hotel management jobs should be completed in conditions of the guest attention as well for the reason that the growing anxiety over surroundings welcoming services; most of the people want an emerald and environmental surroundings. Therefore the hotel management jobs should be interested in creating their hotels more environmental and green for the reason that people are ready to pay additional if they are receiving an environmental welcoming accommodations.

Hotel operations also play a lead role for a successful business. Some hoteliers endeavor to be focused through improving specific departments operations where as some other try to improvise with a hotel-broad approach, some forms of quality assurance service has also been executed through some hotels and companies. However, two important areas that receive the attention by the bureaucrats were maintenance and the front-desk; learn shows that through improvising in the operations hotels have experienced the boost up the visitors and also providing the worker satisfaction along by the development of profit as well.

Front office hotel management is responsible for setting up reservations and handling out room assignment, and they will ensure that any customer service problems will be handled properly. Some of these professionals are called services managers, and they will have the responsibility of coordinating meetings and conventions within an establishment.

Most lodging managers will work 40 hours a week in a fairly low stress job, while managing conferences and handling difficult clients can be testing. Night and weekend work is quietly general depending on the size of lodging establishment.

Income management is also playing a lead role in the success of any hotel. Aggressive Revenue is always a good practice and it has to be balanced with how the hotels generally manage their guests. Working with loyalty is always superior to get a higher growth then charging some higher rates from certain group of customers or trying to overbook the rooms just to make sure less then full occupancy. These practices always hamper the loyalty of the customers and shame the hotel's reputation as well.

Although on the outside this might look like an easy thing to do, actually, it is truly an art form and learning to master it is key to landing a dream hotel management job. A truly great hotel manager is capable to motivate in their workers a feel great longing to do extremely well and will make them want to do their best to make the hotel where they work as a nice place to visit as possible.

Therefore, if you think that you have what it takes and have a reasonable level of requirement experience then the best time to begin looking for a great hotel management job. Of course, the best place to find a great hotel management job is in a city that is a popular visitor purpose but that does not mean that a hotel near you is not now hiring. Hotel sales can always be greater than before by a good reputation building with the customers and always being ready to help them with their issues.

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Posted in: accommodations,attention,customers,experience,hotel industry,hotel jobs,hotel management,hotel reputation,services

The Specifics of Hotel Management

Resident or hotel managers are responsible for the day-to-day operations of the property. In larger properties, more than one of these managers may assist the general manager, frequently dividing responsibilities between the food and beverage operations and the rooms or lodging services. At least one manager, either the general manager or a hotel manager, is on call 24 hours a day to resolve problems or emergencies.

Assistant managers help run the day-to-day operations of the hotel. In large hotels, they may be responsible for activities such as personnel, accounting, office administration, marketing and sales, purchasing, security, maintenance, and pool, spa, or recreational facilities. In smaller hotels, these duties may be combined into one position. Assistant managers may adjust charges on a hotel guest's bill when a manager is unavailable.

Lodging managers are responsible for keeping their establishments efficient and profitable. In a small establishment with a limited staff, the manager may oversee all aspects of operations. However, large hotels may employ hundreds of workers, and the general manager usually is aided by a number of assistant managers assigned to the various departments of the operation. In hotels of every size, managerial duties vary significantly by job title.

General managers have overall responsibility for the operation of the hotel. Within guidelines established by the owners of the hotel or executives of the hotel chain, the general manager sets room rates, allocates funds to departments, approves expenditures, and ensures expected standards for guest service, decor, housekeeping, food quality, and banquet operations. Managers who work for chains also may organize and staff a newly built hotel, refurbish an older hotel, or reorganize a hotel or motel that is not operating successfully. In order to fill entry-level service and clerical jobs in hotels, some managers attend career fairs.

Because hotels are open around the clock, night and weekend work is common. Many lodging managers work more than 40 hours per week, and may be called back to work at any time. Some managers of resort properties or other hotels where much of the business is seasonal have other duties on the property during the off-season or find work at other hotels or in other areas.

Lodging managers experience the pressures of coordinating a wide range of activities. At larger hotels, they also carry the burden of managing a large staff and finding a way to satisfy guest needs while maintaining positive attitudes and employee morale. Conventions and large groups of tourists may present unusual problems or require extended work hours. Moreover, dealing with irate guests can be stressful. The job can be particularly hectic for front office managers during check-in and check-out times. Computer failures can further complicate processing and add to frustration levels.

Hotels increasingly emphasize specialized training. Postsecondary training in hotel, restaurant, or hospitality management is preferred for most hotel management positions; however, a college liberal arts degree may be sufficient when coupled with related hotel experience or business education. Internships or part-time or summer work experience in a hotel are an asset to students seeking a career in hotel management. The experience gained and the contacts made with employers can greatly benefit students after graduation. Most degree programs include work-study opportunities.

Community colleges, junior colleges, and many universities offer certificate or degree programs in hotel, restaurant, or hospitality management leading to an associate, bachelor, or graduate degree. Technical institutes, vocational and trade schools, and other academic institutions also offer courses leading to formal recognition in hospitality management. In total, more than 800 educational facilities provide academic training for would-be lodging managers. Hotel management programs include instruction in hotel administration, accounting, economics, marketing, housekeeping, food service management and catering, and hotel maintenance engineering. Computer training also is an integral part of hotel management training, due to the widespread use of computers in reservations, billing, and housekeeping management.

More than 450 high schools in 45 States offer the Lodging Management Program created by the Educational Institute of the American Hotel and Lodging Association. This two-year program offered to high school juniors and seniors teaches management principles and leads to a professional certification called the "Certified Rooms Division Specialist." Many colleges and universities grant participants credit towards a post-secondary degree in hotel management.

Lodging managers must be able to get along with many different types of people, even in stressful situations. They must be able to solve problems and concentrate on details. Initiative, self-discipline, effective communication skills, and the ability to organize and direct the work of others also are essential for managers at all levels.

Persons wishing to make a career in the hospitality industry may be promoted into a management trainee position sponsored by the hotel or a hotel chain's corporate parent. Typically, trainees work as assistant managers and may rotate assignments among the hotel's departments—front office, housekeeping, or food and beverage—to gain a wide range of experiences. Relocation to another property may be required to help round out the experience and to help grow a trainee into the position.

Work experience in the hospitality industry at any level or in any segment, including summer jobs or part-time work in a hotel or restaurant, is good background for entering hotel management. Most employers require a bachelor's degree with some education in business and computer literacy, while some prefer a master's degree for hotel management positions. However, employees who demonstrate leadership potential and possess sufficient length or breadth of experience may be invited to participate in a management training program and advance to hotel management positions without the education beyond high school.

Large hotel and motel chains may offer better opportunities for advancement than small, independently owned establishments, but relocation every several years often is necessary for advancement. The large chains have more extensive career ladder programs and offer managers the opportunity to transfer to another hotel or motel in the chain or to the central office. Career advancement can be accelerated by the completion of certification programs offered by various associations. These programs usually require a combination of course work, examinations, and experience. For example, outstanding lodging managers may advance to higher level manager positions.

Renewed business travel and domestic and foreign tourism will drive employment growth of lodging managers in full-service hotels. The numbers of economy-class rooms and extended-stay hotels also are expected to increase to accommodate leisure travelers and bargain-conscious guests. An increasing range of lodging accommodations is available to travelers, from economy hotels which offer clean, comfortable rooms and front desk services without costly extras such as restaurants and room service, to luxury and boutique inns that offer sumptuous furnishings and personal services. The accommodation industry is expected to continue to consolidate as lodging chains acquire independently owned establishments or undertake their operation on a contract basis. The increasing number of extended-stay hotels will moderate growth of manager jobs because these properties usually have fewer departments and require fewer managers. Also, these establishments often do not require a manager to be available 24 hours a day, instead assigning front desk clerks on duty at night some of the responsibilities previously reserved for managers.

Additional demands for managers is expected in suite hotels, because some guests—especially business customers—are willing to pay higher prices for rooms with kitchens and suites that provide the space needed to conduct small meetings. In addition, large full-service hotels—offering restaurants, fitness centers, large meeting rooms, and play areas for children, among other amenities—will continue to provide many trainee and managerial opportunities.

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Posted in: assistant manager,customers,hotel management,hotel manager,lodging manager,manager jobs,problems,responsibility

Great Opportunities in a Hotel Manager Career

Though the industry is likely to do well in the long term, the Bureau of Labor Statistics predicts there won't be very much growth in the number of jobs for hotel managers. A lot of new hotels will be economy class and extended-stay hotels, and these kinds of accommodations don't hire as many managers as shorter-stay, more upscale ones. However, increasing business travel and domestic and foreign tourism will drive employment growth of hotel managers and assistants.

Hotel and motels rent rooms to customers. These businesses need employees to clean rooms and check in guests. Larger hotels also need employees to plan conferences, set up rooms for events, and prepare meals for guests. Hotel and motel managers oversee all these departments and make sure employees do good work. Duties vary with the size and type of the business. In small hotels and motels, one manager may be in charge of all departments. In large hotels, each department may be run by an assistant manager. General Managers are in charge of the entire hotel. They often help create budgets, policies, and advertisements. They also may set room rates and fees.

There are several types of assistant managers. Executive housekeepers are in charge of the workers who clean the hotel. They inspect the hotel to make sure that all areas are clean. Front office managers are in charge of reservations and room assignments. Food and beverage managers oversee restaurants and banquets. They plan menus, set prices, and order supplies. Convention services managers coordinate all hotel activities related to meetings. They meet with clients and plan schedules. Then they work with the food service and front office managers to serve and lodge the visitors.

Assistant managers hire, train, and supervise the members of their staff. They assign duties to workers and schedule their shifts. They also solve customers' complaints and answer questions about their departments. In addition, managers write reports about their department. They also order food or supplies and may negotiate contracts with vendors. Assistant managers meet and talk with the general manager several times a week. They also talk to other assistant managers when coordinating large events, such as weddings.

In general, managers of small hotels and motels have more duties than managers of larger businesses. This is because there are fewer employees in smaller hotels and motels. Thus, managers are likely to fill in for absent workers. For example, managers may occasionally clean rooms, take reservations, check guests in and out, or make general repairs. Managers of small hotels and motels have many administrative tasks. They interview, hire, and train new staff. They schedule laundry service deliveries and order supplies. In addition, they keep track of income and expenses.

In short, hotel managers wear a million different hats and juggle a million different tasks. As managers who oversee the running of entire hotels or motels, they must have an incredible eye for detail, enormous organizational ability, and lots and lots of energy. Initiative, self-discipline, effective communication skills, and the ability to organize and direct the work of others are also essential for managers at all levels.

In the course of the day, hotel managers face all sorts of crises. They must make many quick decisions with grace and aplomb. They must have a good sense of business and know how to promote their hotel through advertisements, promotional events and special offers.

Twenty years ago, hotel managers came up through the ranks, usually starting out at the front desk. This is less likely today. An associate's degree can qualify someone to be an assistant manager or manager of a small hotel, but in a large hotel, it's difficult to rise beyond assistant manager without additional education. Most department managers have a bachelor's degree, preferably from a hotel-school program. These programs usually require extensive internships, and this is how future managers get their initial work experience. Hotel executives often have advanced degrees in a specialty or an MBA.

In chain hotels like Sheratons or Marriotts, new managers, even those with hotel school degrees, are usually put through a year-long management trainee program before being assigned to an assistant manager position.

Because hotels are open around the clock, night and weekend work is common. Many hotel managers work more than 40 hours per week. Managers who live in the hotel usually have regular work schedules, but they may be called to work at any time. Some employees of resort hotels are managers during the busy season and have other duties during the rest of the year.

Salaries of hotel managers and assistants vary greatly according to their responsibilities and the segment of the hotel industry in which they are employed. Managers may earn bonuses up to 25 percent of their basic salary in some hotels and may also be furnished with lodging, meals, parking, laundry, and other services. In addition to typical benefits, some hotels offer profit-sharing plans and educational assistance to their employees.

A well-run hotel or restaurant is the result of carefully choreographed teamwork and specific knowledge and training in the administration of such places. A Master's degree in hospitality administration will prepare the student for a career in the aspects of the hospitality industry that are nothing less than vital for the success and growth of these kinds of businesses. The coursework is often quite similar to that undertaken by students in MBA programs, but in this case they focus in on the hospitality industry, as opposed to other aspects of the business world. Courses may include marketing, negotiation techniques, asset management, entrepreneurship, systems analysis, and restaurant and spa development.

The Master of Science Program (MS) taking about 1 1/2-year is geared toward hospitality professionals who wish to continue their careers in an academic or research setting and is designed to help students develop solid graduate-level research skills within a focused hospitality research area. The majority of the student's course work is tailored to the student's area of hospitality research interest and academic and professional background. Students plan their concentration area courses as well as thesis research with their thesis committee.

If you are in high school, find out about CTE courses in Hotel/Motel Marketing, Hospitality Management, Hospitality Services and Travel and Tourism Marketing. These courses can lead to hospitality skills certification from the American Hotel & Lodging Association and the National Occupational Competency Testing Institute.

Read more »

Posted in: advertisements,budget hotel,customers,departments,hotel industry,hotel manager,labor statistics,large hotels,motel rent,policies,rooms