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HAT303-Role Of Operations And Control In Hotel Management

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Question:

The purpose of this individual property portfolio analysis is to further your understanding of the role of operations and control in hotel management by applying hotel operation management concept to a real business case. It will also further your ability to identify a range of factors that influence operations in hotel and accommodation management. Based on concepts discussed in weeks 3 to 8, you are required to compare two opposing Accor Hotel Group brands and critically examine their differences in:
 
1.Provided facilities;
2.Services available;
3.Room rates;
4.Revenue streams;
5.Housekeeping functions;
6.Food and Beverage outlets;
7.Other supplementary services offered by the brands.
 
 

Answer:

Introduction 

Accor group of hotels is an international brand operating in more than 100 countries with a total room strength of around 4000 rooms. Based in France this group has a diversified portfolio to cater to the needs of “Luxury hotel accommodations” and “Budget hotel accommodations (Sturman, 2018).” In order to maintain a variety in its offering, with a passage of time the Accor group has floated more than 15 brands. Each brand has a different set of signature and services (Saha, 2918). This brand has maintained a variety in the offerings while following the norms of star category ratings as they are prevailing for the accommodation industry (Esan, 2018). In the current assignment, we are comparing four different brands of this group falling under two different categories on the lines of a Property Portfolio analysis. We will compare and contrast these properties on six different criteria.

Novotel Hotel Resorts V/S Grand Mercure Hotel & Resorts (Luxury Category) 

Most of the hotel and resorts working under the flagship of the Novotel brand are in compliance with five-star amenity standards. Gradually they are integrating other brands in the service and adding a luxury value to the amenities. Gym facility, Spa and recreation facilities are present in most of the properties (Enfield, 2018).

Grand Mercure Hotel & Resorts 

Their travel desk is functional 24x7 and if you are business traveler then prompt bookings are always on their tips. Rooms are fitted with ironing facility, coffeemakers. A work desk is present in every room. 

 

Service available 

Novotel Hotels and Resorts 

Standard services like doctor on call, bell boy, travel desk, pick up and drop are available on the demand of the customer. High-speed internet service, continental breakfast and gym can be availed as a part of the package or on the basis of independent hiring.

Grand Mercure Hotel & Resorts 

The focus of this brand is more on business tourism, they provide the services like work centers and conference halls with their regular services. You can also plan conventions and business meets in these properties after paying an additional cost.

Room Rates 

Novotel Resort 

The room tariff of Novotel resort shows little variations during various seasons. The property in Berlin is available at $ 150 per night on a twin sharing basis. This is the minima. On the higher side we have Montreal property of the same chain; here you need to pay $440 for a night. Amsterdam property shows a big variation, during the peak season it touches the mark of $1000 per night and tumbles down to $ 400 in regular seasons (Chamberlin, 2015).

Grand Mercure Resorts 

When we check various properties across the world than on an average room tariff with a variation ranging from $ 350 to $450 prevails. 

 

Revenue Streams 

In the year 2015, the Accor group adopted the technology of Total revenue stream optimization and management. They discarded the traditional revenue management systems ahead of the dot.com boom in the business (Ting, 2017). All the 15 accommodation based properties and five ancillary properties were amalgamated in pre-designed and tailor-made and pre-designed packages. This exercise formed a composite revenue model for all the luxury offerings of the company. However, based on the previous year data and general projection of the properties we can state that Novotel mainly caters to the leisure travelers for the revenue streams whereas Grand Mercure is dependent on business tourists (Ballard, 2018).

Housekeeping Functions  

When it comes to the housekeeping facilities, both the properties claim to provide five-star facilities under four-star rates. The Grand Mercure also enjoys a  compliance with five-star rating systems approved by the international bodies.

Food & Beverage Outlets 

Novotel is a brand designed for the style leaders; all the Novotel properties and creates a distinction for them. Grand Mercure is designed for the business leaders and the food and beverage outlets follow standardized menus so that they can cater to business travelers.

Supplementary Services  

Most of the supplementary services spa and gym, parking and laundry are aimed to entertain the leisure travelers. Grand Mercure on the other hands is more focused on convention centers, business centers and other such services that are essential for business travelers.

Budget Scale 

Mercure Hotel V/S Adagio  

The business model of the Mercure hotel follows the traditional lines whereas Adagio works along the lines of paying guest or home rentals. Adagio is a new concept, however, it caters to the lower strata of the budget travelers and provides them long haul stay on the basis of a package (Chetwynd, 2018). 

 

Provided facilities  

Mercure Hotels

Most of the properties are four-star category hotels, standard facilities like a pickup, doctor on a call and travel desk are available. All the properties have separate restaurant facilities and gyms. Certain properties also have a swimming pool attached to them.

Adagio 

Vacation rental apartments are available the supply of the facilities is a subject between the owner and the guest. A standardized format is available, however; the delivery of the facilities may vary from place to place.

Service available 

Mercure Hotel 

Room service, high-speed internet, fridge in the room, dining space, working table and other necessary services attached to the four-star category rooms are at the disposal of the guests.

Adagio 

There is no standardization of the services, in general terms, a guest can use the kitchen of the host, and standards of the services may vary from place to place because every country of the world follows different standards of the services (Foxx, 2018).

Room Rates 

Mercure Hotel 

On the scale of a median, we can say that most of the properties of Mercure hotel group offer a price range of $ 100 to $200 for a day depending on the location of the hotel and rate of the inflation in the city.

Adagio  

The rate of the vacation rentals may vary from place to place, it is more of a package, the bigger the package the lesser the amount for a day. Early bird discounts along with surprising deals can amaze the travelers sometimes. 

 

Revenue Streams 

The revenue streams connected to the Adagio are more informal in nature. Its operational areas are limited and the reach is also limited. They are bound to share a big sum with the actual service providers because they are not the owners of the property (Caswell, 2018). Mercure on the other hands moves on the traditional business model of travel agents and tour operators. A big chunk of their investment also comes from direct internet bookings as well.

Housekeeping Functions  

Mercure offers a standardized service palate, anything that you should expect in a four-star hotel or a three-star hotel. All the hotels maintain a housekeeping staff and most of the facilities are available in-house. The rentals available under Adagio offer various packages. Some facilities offer a housekeeping staff whereas in some cases tourists only get a place and the necessary items, they are required to manage housekeeping activities on their own because they are availing the services of a home vacation rental.  

Food & Beverage Outlets 

Mercure hotels provide continental plans, American plans and local cuisines that are available in the restaurants attached to their facilities. While hiring with Adagio, you can have choices, you can hire a kitchen along with the properties, and some vacation rental owners also provides homemade food on the lines of a paying guest. The facilities of restaurant and bars are not a part of most of the properties that are attached to the Adagio.

Supplementary Services  

Properties marketed under Mercure and Adagio offers facilities like laundry and others at a price. Some properties can offer you free parking as well. Certain Properties under Adagio are pet-friendly and you can have pets after paying extra money. 

 

Bibliography

Ballard, S. (2018). Spotlight on: AccorHotels. abtmag, Viewed on 7-9-18. https://abtamag.com/2018/09/03/spotlight-on-accorhotels/.

Caswell, M. (2018). Aparthotel Adagio unveils The Circle concept. Business Traveller, Viewed on 7-9-18. https://www.businesstraveller.com/business-travel/2018/08/02/aparthotels-adagio-unveils-the-circle-concept/.

Chamberlin, C. (2015). The Accor Plus program for Aussie business travelers. Australian Business Traveller, Viewed on 7-9-18. https://www.ausbt.com.au/the-accor-advantage-plus-program-for-aussie-business-travellers.

Chetwynd, C. (2018). Serviced apartments: blurred lines. Buying Business Travel, Viewed on 7-9-18. https://buyingbusinesstravel.com/feature/2927766-serviced-apartments-blurred-lines.

Enfield, L. (2018). Why Novotel London Canary Wharf boss never holidays in hotels. In Your Area, Viewed on 7-9-18. https://www.inyourarea.co.uk/news/why-novotel-london-canary-wharf-boss-never-stays-in-hotels/.

Esan, N. (2018). Hotels: Trading Places. Buying Business Travel, h Viewed on 7-9-18.https://buyingbusinesstravel.com/feature/2329239-hotels-trading-places.

Foxx, J. T. (2018). Operators seek new European markets for serviced apartments. Hotel Management, Viewed on 7-9-18.https://www.hotelmanagement.net/development/operators-seek-new-european-markets-for-serviced-apartments.

Saha, P. K. (2918). India is barely discovered in terms of true tourism: AccorHotels’ Michael Issenberg. LiveMint, Viewed on 7-9-18. https://www.livemint.com/Companies/olvXPUf7t8ADzN9kPv4ZuO/India-is-barely-discovered-in-terms-of-true-tourism-AccorHo.html.

Sturman, C. (2018). Top 10 biggest hotel chains. Business Chief, Viewed on 7-9-18.https://www.businesschief.com/top10/7293/Top-10-biggest-hotel-chains.

Ting, D. (2017). Accor CEO: We Want to Transform the Way Everyone Uses Hotels. Skift, Viewed on 7-9-18. https://skift.com/2017/02/23/accor-ceo-we-want-to-transform-the-way-you-use-hotel

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