Running head: ACCOMMODATION SERVICES MANAGEMENT 1

Accommodation Services Management

Student Name

Institution Affiliation
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Accommodation Services Management

Accommodation service management involves planning, organizing, directing,

controlling and evaluating various operations of accommodation. Housing services are often

offered in areas such as hotels, student residences, resorts, motels, and other established

accommodation centers. Just like any other business, accommodation centers require market

segmentation to help them raise revenues for various business functions such as management of

expenses, profits, and other financial obligations. In the accommodation industry, customers are

essential, and many companies will strive to attract and retain the highest number of customers

possible. Therefore, they have to work to meet customer expectations, embrace appropriate

service management systems, inventory management, property management, and channels of

distribution.

Interrelationship of Sales and Marketing Function with Accommodation Management

In the business world, sales are the total amount of money collected after a company sells

its good and services while marketing is a process through which the concept of goods and

services move to customers. Marketing involves identification and development of a product,

price determination, selection of a distribution channel, and development and implementation of

an appropriate strategy for promotion (Study.com, 2016). A business volume of sales heavily

rely on the effectiveness of the product marketing; poor marketing often leads to low volume

sales. A marketing plan has to reach the business target group and carry out product promotion to

boost the volume of sales.

Sales and marketing function have a direct relationship despite differences in their

business operation. Sales and marketing functions are carried out as group tasks where the sales

and marketing staff plans a hotel's marketing and sales strategy, prepares and issues sales
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contracts, and communicates and coordinates customers’ special requests (Sales and Marketing

ppt.). Both functions have to review and carry out a competitive analysis of the business

competitors, forecast future market conditions, and development measurement and evaluation

tools.

Most of the organizations assign sales and marketing functions under the same

department since the two are related. The two focus on making better profits for the organization

and survival of the business in the industry. Despite the two being closely related, there are

notable differences among them. The marketing function begins with research on the consumers’

needs and wants and preference and continues to operate even after the business makes sales

while selling start after the production of goods and services is over (Sales and Marketing ppt.).

Marketing function puts its focus on the customer needs only and stresses on the buyer while the

sales function puts its focus on all activities of sales maximization and stresses on the seller

(Sales and Marketing ppt.). For example, marketing in a hotel will consider fulfilling the

customer needs such as a clean environment, personal needs and customer expectations while

sales function will focus on selling the company services as much as possible.SOME

EXAMPLES RELATED TO THE HOTEL INDUSTRY IN ALL THE QUESTIONS PLEASE.

Marketing Segmentation in Relation to Accommodation Center

Market segmentation in the accommodation industry involves the grouping of

accommodation centers or people who have more similar characteristics thereby having same

product needs. To apply for a hotel revenue management, market segmentation is essential as it

allows hotels have target and markets to diverse customer groups possessing different customer

behaviors with offers that meet their budget levels and needs (Market segmentation ppt.). For an
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accommodation center to meet the customer needs and wants, it must make some efforts of

knowing the kind of customer it's dealing with and understand them.

Marketing segmentation helps in the identification of the market target. The main reason

why hotels, restaurants, motels, resorts and other types of accommodation centers divide their

markets into identifiable groups is to enable the marketing team creates a specific group custom

marketing mix (study.com, 2016). A hotel market segmentation helps in the identification of the

customers’ purpose of their trips whether its leisure or business purpose (Marketing

segmentation ppt.). Prices do not decide on the market segments, and a clear distinction has to be

achieved between a group and individual business.

Companies may not easily survive in a competitive business environment if its marketing

strategy targets the entire accommodation mass market. Market segmentation is important since

it allows companies to clearly reach customers with particular needs and wants (Study.com,

2016). Such a marketing segmentation helps a company to effectively use its corporate resources

and make strategic marketing decisions over time. For example, couples may have different

accommodation services from that of the singles or nuclear families.

Standards Used to Manage Customer Expectations in Regards to Quality

Certain standards must be achieved to meet the customer expectations in regard to quality

effectively. A service industry must have fast, accurate and efficient service, friendly and helpful

services, trained staff that can handle the large scope of questions from their customers, and

high-quality products and services (Nuluwang, 2011). It is worth to note that the staff must give

prompt responses to customers’ inquiries whether through phone, in person or online. For a

business to meet the customer expectations on quality, it must reduce the long waits, have

sufficient stock, and have clean business facilities.

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Customers have their expectations whenever they walk into hotel service business.

Restaurants offering the highest level of services will identify their customer expectations and

find appropriate ways of making them attain satisfaction (Kumar, 2012). The quality of customer

service is primarily determined by the company ability to meet its customer expectations.

Customers’ satisfaction reflects their experiences and expectations that they have with the

business products and services.

Accommodation centers operate distinctly concerning the quality of their services and

meeting their customers’ expectations. A company may not spend a lot of time worrying about

its customer service, but its ability to consistently meet its customer expectations is perceived to

offer good customer services. However, customer expectations are dynamic, and this process

may not sound easy since customer expectations flow regularly according to a wide range of

factors. But, when customer expectations are not met by the quality of the service customers will

be dissatisfied. For example, customers should not make lines, instead there should be staff

helping them acquire what they need or wait for more that 5 minutes to be served.

Concepts of Services Marketing Management and Customer Relationship Management

Services marketing management concepts, includes the creation of effective and cost-

efficient marketing strategies. For a hotel to arrive at a reliable service marketing management, it

has to possess a detailed and objective understanding of its environment and market of operation.

Customer relationship management, on the other hand, is an approach that focuses on the

customer for all the business processes and practices (Padariya, 2013). Customer relationship

management integrates technology in the client business strategic management plan. Service

marketing management and customer relationship management concepts are interrelated in hotel

and hospitality industry.

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Customer relationship management operations incorporate marketing strategies as it deals

with business marketing techniques. Customer relationship management levels a technology

cutting edge and integrates it into the strategic business plan, organizational development tools

and personal marketing techniques that build both internal and external relationships that

increase productivity and profit margins (Padariya, 2013). Both services marketing and customer

relationship management are customer centric that support effective marketing, better service

processes and strengthening of client relationships. Customer relationship and service marketing

management put together a brand audit, analyze customers and competitors’ value, and assemble

quantitative and qualitative research for appropriate avenues of meeting customer needs as well

as establishing better customer relationships (Sales and Marketing ppt.). The two concepts work

hand in hand in driving organization sales. For example, services marketing management will

focus on attracting customers to the company services while customer relationship management

will target building a stronger relationship between the same customers with the organization.

Property Management Systems: Inventory Management and Business Transactions

Property management systems in the hospitality industry use a comprehensive software

application that covers the basic operational objectives of sales, front office functions, planning,

among others. Inventory management and business transaction systems are the most commonly

used property management systems. Aided by technology inventory management and business

transaction systems make it easier to automate most of the hotel functions such as carrying out

online reservations, recording guest details, guest bookings, accounts receivable, point of sale,

food and beverage costing, human resource and payroll, materials management, sales and

marketing, telephone, quality management and other functions (Wardell 2012).

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Inventory management systems focus on managing the organization equipment and

facilities. In the hotel industry, inventory management system, plans, directs, and controls the

inventory with the aim of lowering the cost of goods sold thereby increasing the company

profitability margin (Wardell, 2012). Many hotel industry businesses heavily rely on the point of

sale systems since they provide businesses with not only a point of sale but also a point of a

customer order or return (Short, 2015). Inventory management and business transaction systems

may interface with revenue management systems or central reservation systems, back office,

front office and payment card authorization systems to reduce costs related to the above systems

when they are used separately (Short, 2015). Good property management systems should give

timely and accurate information based on the key performance indicators of the business.

Current Trends In Relation To Energy Saving

Hospitality industry accounts approximately 60% of the energy used in the world (Lamm,

n.d). Hoteliers and other stakeholders can reduce this number through high-impact and low-cost

steps of which global chains are pushing many of them. Many of the hotel companies are

embracing actions for reduced impacts on the environment and more sustainable growth.

However, they cannot adequately meet their sustainability standards due to limited equipment

that constrains their structures. After employment, energy is the second largest expenses of the

hotel industry (Lamm, n.d).

Energy consumption in hotels is influenced by the architectural, technical, local and

management factors such as technical types of equipment, materials, local policies, climate, and

hotel features (Lamm, n.d). Based on some categories such as air conditioning, room heating and

hot water, laundry, kitchen, and lighting, TV, and radio, the following are the current trends in

energy saving in the hotel industry:

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a) Lowering cooling temperatures

b) Lower cooling when there are no guests

c) Lower heating temperatures

d) Efficient building shapes

e) Energy saving laundry equipment

f) Energy efficient appliances for kitchen

g) Limited use of electronic appliances

h) Switching off computers when not in use

i) Energy saving ventilation systems

j) Transparent windows and sheets to allow natural light stream in

k) Use of energy saving mini-bars

Many upcoming hotels and those carrying out expansion are including environmental friendly

requirements when planning for new buildings rather than making modifications on the building

technical characteristics such as construction materials, the shape of the building, insulation and

equipment of already existing buildings and structures (Lamm, n.d).

Concept of Environmentally Sustainable Business Practices

Environmentally sustainable business practices are business activities that relate to the

corporate and environmental sustainability. These practices involve examination of business

practices and processes by people, profits and the planet with the aim of seeking ways of making

a positive impact on them. Environmentally sustainable business practices improve the working

conditions and protect the environment; they have proven to be admirable goals and good

business strategies (Dögl & Behnam, 2014). Environmentally sustainable business practices
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include the application environmental sustainable business practice principles to all the business

operations.

Many governments have consistently emphasized on the practice of environmentally

sustainable business not only to promote sustainable environmental friendly practices but also to

support sustainable growth of their economies. Due to the increased awareness of business

impacts on the environment, many companies of every type and size have begun the

implementation of environmentally sustainable initiatives recycling programs and reduction of

carbon emission being the most common(Dögl & Behnam, 2014). These initiatives aim at

eliminating adverse effects of business processes.

Businesses promote environmentally sustainable business practices by examination of

their processes and identifying the most favorable approaches for both sustainable growth and

environmental protection. Some corporations take a big picture approach by examining every

process of their product lifecycle and application of green supply management practices on all its

operations(Dögl & Behnam, 2014). There are many ways of promoting environmentally

sustainable business practices and use them as an advantage. For instance, if an organization

implements green supply chain management and other environmentally sustainable practices,

there are potential benefits of eliminating wastes and save on costs. Moreover, as the public is

committed to environmentally green business practices, a business may benefit from favorable

public opinions and customer loyalty.

Hotels can best practice environmentally sustainable practices by going green in all their

activities. They can conduct meetings and conferences that seek to have zero wastes and

establish other options of offsetting carbon such as using recyclable and compostable products.

Hotel industry can reduce its waste by having a waste management system modeled to reuse and
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recycle its resources. Hotels without established water saving initiatives need to have them in

place as one of the ways of conserving energy. Finally hotels and other accommodation centers

can change their purchase behaviors, as they buy in bulk, they can influence their suppliers to

package their purchases with environmentally friendly materials such as bamboos and

cartons.HIGHLIGHT SUSTAINABILITTY MORE.

Security Needs for a Property Management System

Technology has completely changed the hospitality industry in the sense of instant

gratification for travelers. Many travelers can instantly book for accommodation due to the

widespread availability of laptops and mobile phones more so smartphones. Despite the

advantages related to property management systems in the hotel and hospitality industry, there

arise security needs that must be addressed to effectively protect the organizational data as well

as the customers’ data.

Property management system requires high levels of technology that surpass the current

data security threats. One of the most current data security solutions is the cloud-based system.

Cloud-based property management systems provide organizational operators with advanced

features that streamline critical operations of a hotel. It provides hotel and other hospitality

centers with top-flight data privacy and security programs as administered by the system

providers (Wardell, 2012). Hoteliers only need an internet connection to have cloud-based

property management systems.

Property management systems require setting and varying levels of user logins to protect

the system users’ data security from unauthorized access. Hotel management should have

features that allow system operators to set access levels for each member of a group. Having a

system with established personal levels access ensures that only certain people who may be in
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need of sensitive information can access or view the data (Short, 2015). An organization having

various team members logging into the property management system every day provides more

layers for security guests’ financial and personal information (Short, 2015).

It is important to mention that property management systems must support data

encryption while in storage to protect unauthorized access. Data encryption protects information

from being viewed by unintended persons.

Channels of Distribution in Hospitality Industry

Many hotels in the hospitality industry have come up with different strategies and

distribution channels to gain a competitive edge in the industry. Different distribution channels

have emerged targeting travelers all over the globe such as global distribution channel, internet

distribution system, and reservation systems. These channels have been integrated with new

levels of technology which make it easy for not only booking accommodation but also

simplifying distribution processes.

Global distribution system works as a network created by a company for automated

transactions between the travel service providers especially car rental companies, hotels, and

airlines, and travel agencies. It links booking, rates, and other hotel services across various travel

sectors such as hotel reservations, airline reservations, and car rentals (Duran, 2015). For hotels,

resorts, and restaurants, global distribution system enables the selling to a guest through the sales

force, call center, wholesalers, travel agents, and third party intermediaries (Duran, 2015). Global

distribution system supports various devices especially those linked up with the internet such as

telephones and other wireless devices. A global distribution channel is primarily a reservation

tool for travel agents.

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Many hospitality centers have integrated their systems with the global distribution system

due to the benefits accrued. The global distribution channel exposes the hotels, restaurants, and

resorts worldwide thereby increasing their marketability. They also offer business to business

transactions as well as business to customer transactions. Corporate brokers are regulated by the

system since it’s the entry level of all the corporate brokers (Wardell, 2012). A hotel can target

all the travel agencies independent of their distribution platforms. Finally, global distribution

system offers an every time travel agent access to the hotel inventory and full multimedia content

(Short, 2015).

An internet distribution system enables an organization to invest its marketing dollars in

online distribution channels. Online distribution channels are essential in the hotel industry if

hotels need to retain their customers, gain competitive advantages, and improve their hotel

positioning in the markets that are sometimes saturated (Eyefortravel.com, 2013). Online

marketing has been made it easier by the use of internet where measurable and accountable

analytics and metrics show the bottom line of marketing contribution (Eyefortravel.com, 2013).

The most commonly used internet marketing measures are customer lifetime value

(CLV) and customer acquisition cost (CAC). If internet distribution system is skillfully managed,

the hotel’s website could bring the highest customer lifetime value and the lowest customer

acquisition cost (Duran, 2015). Websites enable hotels to directly interact with their customers

which could establish long-term relationships. Internet distribution system is appropriate when it

resonate guests. The booking website should be simple to use and should let customers make

their bookings within several clicks (Eyefortravel.com, 2013). It should build the customers’

confidence by offering customers more online security and eliminate guessing games.
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Reservation systems have made the hotel industry to be one of the most automated

sectors specifically the lodging industry when it involves international travels. Its reservation

system is computerized, archaic, and incorporates high proportions of bookings (Duran, 2015).

In computerized reservation systems, respondents usually reply to the customers’ queries based

on the information displayed on the computer terminals (Wardell, 2012). The management of

hotel reservation system includes the management of core reservation applications, complex

reporting capabilities and the linking of the global distribution system that provides inventory

information (Wardell, 2012). Today, both reservation and global distribution system are

integrated to perform similar work. For example, currently, most hotel companies integrate

reservation systems to global distribution systems to allow users book rental cars and hotel

rooms at ago (Duran, 2015). Reservation systems are not limited to the hotel industry but also

work in bus and railway reservations.

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References

Eyefortravel.com (2013). 10 Tips to sharpen your hotel distribution strategy in 2013. Retrieved

from, http://www.eyefortravel.com/distribution-strategies/10-tips-sharpen-your-hotel-

distribution-strategy-2013

Dögl, C. & Behnam, M. (2014). Environmentally Sustainable Development through Stakeholder

Engagement in Developed and Emerging Countries. Business Strategy And The

Environment, 24(6), 583-600.

Duran Juan (2015). Understanding Online Distribution Channels. Retrieved from,

https://www.hvs.com/article/7380/understanding-online-distribution-channels/

Kumar, Reddy, C. (2012). Customer Relationship Management. Retrieved from,

`http://www.slideshare.net/charanreddy589/customer-relationship-management-

14010865?related=1

Lamm Marie (n,d). Three Companies With Best Practices in Environmental Sustainability.

Retrieved from, http://www.usanfranonline.com/resources/supply-chain-

management/three-companies-with-best-practices-in-environmental-sustainability/#

Market Segmentation PowerPoint Presentation Notes

Nuwulang (2011). An Introduction to Service Management (itil). Retrieved from,

http://www.slideshare.net/nuwulang/an-introduction-to-service-management-

itil?related=2

Paradiya, M. (2013). Customer Relationship Management in Hotel Industry. Retrieved from,

http://www.slideshare.net/Milan_padariya/customer-relationship-management-in-hotel-

industry

Sales and Marketing PowerPoint Presentation Notes

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Short Taylor (2015). Hotel Management Software User/View 2015. Retrieved from,

http://www.softwareadvice.com/hotel-management/userview/report-2015/

Study.com (2016). Market Segmentation: Why Market Segments Are Important to Marketers.

Retrieved from, http://study.com/academy/lesson/market-segmentation-why-market-

segments-are-important-to-marketers.html

Wardell David (2012). Hotel Technology and Reservation Systems. Retrieved from,

https://www.academia.edu/427904/Hotel_Technology_and_Reservation_Systems