A Study Of Contribution Internal Sale In Hotel Profit

1183 words - 5 pages

Rate Category Alternative
Rate category alternative is the technique where front desk will offer a choice of rate category to their guest. Commonly, the hotel will offered three or more rate with the fully description for each rate and this description will bring the guest to choose the most expensive rate compared to lowest rate as the expensive rate appears too much of an extravagance. This technique is use to move the guest’s purchase from the least expensive alternative to one that is higher priced. Otherwise, rate category alternative may help the guest to make a decision for their room, at the same time this technique puts no pressure on the guest. Basically, guest may get confused in ...view middle of the document...

Whereas, for each room category will be divided into other type, for example deluxe room have three types such as deluxe, executive deluxe and premier deluxe, same goes with the suite room. Each of the room type has different room rate and these differences may help front desk to increase their daily revenue. In Malaysia, the common room type that offered by the hotel are standard (for budget hotel), superior, deluxe, junior suite, suite and studio. How front desk may use the rate category alternative to the guest in choosing the room? Below the example of the rate category alternative method based on the room type:-

SITUATION 1:
The guest plan to stay at Shangri La Hotel Kuala Lumpur, they choose superior room which the price is about RM 510.00 per night. The front desk will take this advantage to increase their daily revenue by offered the other choice of rate category which is deluxe room, priced RM 560.00 per night with the deluxe size, view and furniture rather than superior room only provide the standard amenities and furniture. Otherwise, the guests only need to add another RM 50.00 to get deluxe room. So, the guest will choose the deluxe room because it appears more benefit and comfortable. Indirectly, this up selling technique may contribute to the hotel’s profit

SITUATION 2:
The guest plan to stay at Shangri La Hotel Kuala Lumpur and reserved suite room. As the Shangri La Hotel have been offered five type of suite room which are Executive suite priced
RM 1 080, Premier suite priced RM 1 100, Specialty suite (approximate RM 2 000++), Malaysian suite (approximate RM 2 000++) and Royal suite (approximate RM 3 000++), the front desk will offered all the suite type to the guest with description of the different rate, amenities, size, layout, view and design of the room. As the suite rate different is not significant the guest will choose the most expensive rate as it appears more luxuries, comfortable and benefit to the them. Indirectly, this up selling technique may contribute to the hotel’s profit
(refer appendices for suite room type)

Moreover, the examples for bedding type are king, queen, double and twin / single. Basically, type of bed may not influence the room rate, it’s just the choice for the guest to choose which bed that there are prefer and this not giving any benefit to the hotel to increase their sales revenue. The...

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