hotel revenue centres in hospitality management

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Hotel Revenue Centres: Distinctly identifiable department , division , or unit of a firm that generates revenue through sale of goods and /or services . For example, rooms department and food-and-beverages department of a hotel are its revenue centers. A revenue centre is one of the five divisions of a responsibility centre – Cost centre, Revenue centre, profit centre, contribution centre and investment centre. Cost centres, like revenue centres , only monitor costs, thereby making them a counterpart to the revenue centre Revenue centers are solely responsible for activities that bring cash into the business. Because the focus is on generating gross revenues and not controlling costs, it might seem this goal runs counter to the long- term success of a business. Sales or marketing departments are the most common forms of revenue centers in small or large businesses. The marketing team is responsible for selling products or services that the company produces at a specific cost. The team sets a selling price based on production costs plus a margin for profit. Its objective is to meet or exceed revenue targets while maintaining agreed profit margins. Example: In hotels: Rooms division Restaurants Bars Lounges Room service Banqueting facilities Telephone Gift shops Newsstand Valet parking Laundry In hospitals: Blood bank Cardiology Emergency department Inhalation therapy Labour and delivery Laboratory Medical/surgical supplies Operating room Pharmacy

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Hotel Revenue Centres

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Hotel Revenue Centres:Distinctly identifiabledepartment,division, orunitof a firm that generates revenue through sale ofgoodsand /or services. For example, rooms department and food-and-beverages department of ahotelare its revenue centers.A revenue centre is one of the five divisions of a responsibility centre Cost centre, Revenue centre, profit centre, contribution centre and investment centre. Cost centres, like revenue centres , only monitor costs, thereby making them a counterpart to the revenue centreRevenue centers are solely responsible for activities that bring cash into the business. Because the focus is on generating gross revenues and not controlling costs, it might seem this goal runs counter to the long-term success of a business.

Sales or marketing departments are the most common forms of revenue centers in small or large businesses. The marketing team is responsible for selling products or services that the company produces at a specific cost. The team sets a selling price based on production costs plus a margin for profit. Its objective is to meet or exceed revenue targets while maintaining agreed profit margins. Example: In hotels: Rooms division Restaurants Bars Lounges Room service Banqueting facilities Telephone Gift shops Newsstand Valet parking Laundry In hospitals: Blood bank Cardiology Emergency department Inhalation therapy Labour and delivery Laboratory Medical/surgical supplies Operating room Pharmacy Physical therapy RadiologyCost Centre: A cost centre is part of an organization that does not produce direct profit and adds to the cost of running a company. Examples include research and development, marketing, help desks, and customer service and contact centres. Although they are not always demonstrably profitable, a cost centre adds value indirectly or fulfills some other corporate mandate. For example, research and development may yield profitable innovations, while effective public relations and customer service may lead to more customers and increased customer loyalty.

DEFINITION of 'Cost Center'A department within an organization that does not directly add to profit, but which still costs an organization money to operate. Cost centers only contribute to a company's profitability indirectly, unlike a profit center which contributes to profitability directly through its actions. This type of department is likely to be one of the first targets for downsizing because, on the surface, it has a negative impact on profits. Engineering Department: Hotels constitute major Part of the hospitality industry. For proper management of hotels the Hotel Engineering Department plays very important role along with other constituent departments.Such scope is very comprehensive and includes several activities like inspections adjustments, replacements, repairs, keeping records etc., the broad areas of hotel engineering maintenance work include civil, mechanical, electrical, safety & security, energy and waste management, fire protection etc.The role and mandate of any property engineering department is the protection of the buildings/owners assets; the structure from the faade or building envelope, to the integrity of the floors, walls, ceilings and all of the furniture, fixtures, and equipment (FF&E) contained therein. This includes the electrical transformers and the distribution throughout, the domestic water distribution and sewage, the heating-ventilation-air conditioning system, (HVAC), the fire alarm system and fire safety components, the vertical transportation system (elevators), the property surroundings like parking and landscaping and pest control. Utility management such as electrical, gas, steam, water. Kitchen and laundry equipment. Lighting and sound systems and on and on.Hotels are much more extensive and demanding. The engineering department has the responsibility for everything in the building as well. Depending on the organizational structure of the hotel, some elements are assigned to other departments. The Security or Loss Prevention department may take on the task of fire systems but ultimately this is the responsibility of the engineering department as the building operators to monitor for regulatory compliance.Some important works that fall under the department are as under: Civil engineering, Care of grounds and swimming pools, Mechanical-Maintenance: such as Heating, Ventilation, Refrigeration, air-conditioning etc. Electrical system and appliances. Audio-Visual equipments, Heavy Cleaning, Communication and networking Systems, Fire prevention and fighting equipments, Waste management, Energy management, Minor repairs, Painting and patching works and so on The department is required to be in constant contact with other departments of the hotel like Safety & Security, Food & beverage, House Keeping, Kitchen, conference & Banquet, Power Plant, etc.Sales & Marketing Department: Supervision of this area by Corporate Director of Sales & Marketing Guide development and implementation of Marketing Plan Coordinate advertising and marketing Coordinate attendance at appropriate trade shows and share costs with participating hotels Provide sales and marketing training at regular sales meetings and Annual Hospitality Conference Provide tools and systems for effective tracking and implementation of programs Review and approve specific marketing strategies, programs, and print materials (brochures, ads, flyers, etc.) Corporate review of monthly sales reports Participation and membership in key sales related organizations; i.e., National Tour Association, American Bus Association, Hospitality Sales and Marketing Association, and Society of Government Meeting Planners Assist in recruiting, interviewing, developing, and hiring of sales staffA marketing manager in the hotel industry is responsible for maximizing a hotel's revenues by developing programs to increase occupancy and make profitable use of its accommodation, meeting and leisure facilities. A hotel marketing manager must maintain awareness of the factors that influence the hotel industry and gain a deep understanding of the needs and attitudes of a hotels customers. A hotel marketing manager will be responsible for coordinating marketing and promotional activities to meet customer needs, working closely with other hotel staff to ensure customers are satisfied with the facilities and their time there.