Budget management and staff management of a resort

Description and context of the Oceanside Tropical Resort
This 4/5- star resort has an excellent reputation. It has a beautiful location, and the community and its population of the area are supportive of the resort.
It is a seasonal resort, mainly because of its climate and weather. The resort attracts guests from northern countries, such as Canada, during the cold winter months in such countries. This is the high season.
The low season is often rainy, although both September and March are part of the low season and can also be described as shoulder seasons, when the weather can be mixed. Even during the low season, the climate is warm and tropical.
All guests arrive at the resort in a taxi, bus, shuttle, or limousine. The resort does not have vehicle parking for guests. Guests may, if they wish, rent a car from a local car rental company, which will deliver the car to the resort.
Description and context of the Oceanside Tropical Resort design
A floorplan and photos of the resort is supplied. You need to note, that the photos are for context, to give you an idea of the level of amenities and the architecture and design of the resort and guestrooms.
As you can see from the floorplan, each floor has the following rooms and spaces.
• 2-double queen rooms
• 2-King rooms
• 1-King Suite
• The resort is designed as two rows of three connected guest room buildings facing each other and the inner courtyardand pool. The end unit suites have a view of the ocean. All the guest rooms overlook the courtyard and pool, and some have views of the ocean. It is not shown on the floorplan, but each guest room has a small balcony or patio (see photo supplied).
The resort has a total of 150 rooms. Each guest room building has 25 rooms per building. There are a total of 6 guest room buildings.
The main restaurant, café, and bar for the resort have the capacity to service all guests when the resort is full and are located closer to the ocean just beyond the pool area where the spa is also located, separate from the guest rooms. (Please see photo). The meeting and banquet rooms are located in a separate building at the entrance of the resort (not show in the photos or floorplan), along with the front office and reception, other resort offices, laundry, and other operational departments.
All housekeeping, including ground maintenance is done inhouse by the resort staff.
Occupancy Percentage and Average Daily Rate
High Season
Typical Week
Typical Week
Low Season
Typical Week
Typical Week
Occupancy %
ADR$
Occupancy %
ADR $
Sunday
73.3%
$177.79
Sunday
36.5 %
$133.34
Monday
88.2%
$181.21
Monday
50.9%
$133.50
Tuesday
90.8%
$186.81
Tuesday
58.3%
$139.09
Wednesday
92.5%
$184.21
Wednesday
65.4%
$146.75
Thursday
87.4%
$181.61
Thursday
66.4%
$150.16
Friday
87.5%
$185.57
Friday
76.7%
$147.55
Saturday
94.1%
$199.97
Saturday
75.0 %
$147.11
Total
Total
For the purposes of this case study, assume that the occupancy percentage and the average daily rate are consistent (the same)for each week in each month in their respective seasons. Remember, ADR is the average of all room prices. Some rooms, such as suites will go for a premium. They can often cost more to clean.
The High Season months are October, November, December, January, and February. The Low season months are March, April, May, June, July, August and September. The increase in occupancy of 50 rooms ONLY happens in two months, March and September.
Incentive and motivation plan for our housekeeping staff
The GM of the resort wants your review, feedback, and recommendation on the following incentive and motivation plans for the housekeeping staff. Remember, you are making only one recommendation. This can be you recommending one system, or none of the proposed systems. The important part of this part of your report is your justification of your evaluation and recommendation.
A. A housekeeping excellence program structured to offer incentives for top-performing housekeepers. The incentives are based on quality-inspection scores. For example, a top-scoring housekeeper will earn a 50cents-per-hour pay increase during a four-week scoring period, while the next-lower level will earn 25 cents more per hour.
If a housekeeper fails to show up for work, the assigned rooms are put up for bid and the top-scoring housekeepers can earn an extra $5 per room (cleaning up to five extra rooms). Housekeepers receiving the next lower level of scores can “buy” rooms for an extra $4.25 per room, instead of the rooms going uncleaned and unable to rent.
Also, there are incentives for managers and supervisors, who can earn bonuses of up to $200 per pay period for the cleaning quality and productivity of their staffing.
B. Another system is an incentive program that combines individual effort and total property effort, based on reaching quality and profitability goals.
This system uses a team approach that uses employee input to provide better cleaning and employee accountability, while also retaining housekeeping employees at the same time.
The resort emphasizes better ways of cleaning instead of continually training new employees. Developing quality improvement teams helped them do both.
Room attendants find solutions to quality issues based on their input in finding the defects in cleaning a room. The system tracks the defects in room cleaning by inspecting a sample of guest rooms. The data is then reviewed to findthe most-frequent defect and uses employee empowerment and teamwork to formulate and evaluate solutions.
Part of this is to retaining employees by empowering them to serve the guests’ needs and go out of their way to provide a better guest experience. They earn incentive rewards for the extra effort. When room attendants feel empowered to take action, they feel more a part of the resort and have more of a vested interest in staying with their jobs.
Weekly Schedule for the Housekeeping Department
Part of your report is to include a sample weekly schedule for the following housekeeping personnel.
• Guestroom attendants (cleaning the guest rooms)
• Public area cleaners
• Housepersons
• Housekeeping supervisors
• Housekeeping managers
You need to complete and include in your report, one weekly schedule based on the information for the high season, one for the low season, and one with the increase in room sales in either September or March. The schedule shows the number of employees at each position, their assignment, what days and time they are at work, and to whom they report; in other words, what will they be doing during their work shifts.
You also decide on the guestroom allocation workload for the guestroom attendants; in other words, you decide, based on what you know about the resort, how many rooms will be assigned to a guestroom attendant to clean. You also decide if rooms are assigned to guestroom attendants individually or to teams of guestroom attendants.
Rooms Division Revenue and Expenses
Housekeeping supervisors and housekeeping managers are paid a salary. This is an amount that they are paid on an annual basis. It is not an hourly wage. So, it is a fixed cost. This means that while there may be a change in the number rooms sold, going up or down, the manager and supervisor will still be paid their salary on a regular basis. This salary must be included in your housekeeping labor cost.
Housekeeping supervisors earns $50,000/year
Housekeeping managers earns $65,000/year
Executive Housekeeper earns $90,000/year
The other costs are listed below. Most vary with increases or decreases of revenue. All housekeeping staff who are paid an hourly wage earn $18/hour. A standard workday is 8 hours. All overtime is paid at double time.
If you so choose, you may add or subtract expenses with justification.
Revenue costs and fixed costs for the Rooms Division
Salaries and Wages
% of revenue or fixed cost
Front Office ***
5.0 includes fixed salaries
Housekeeping ***
You calculate actual amount
Total
TBA (you will calculate this amount)
Taxes & Benefits
4.0
Total Payroll
TBA (you will calculate this amount)
Travel Commissions
2.0
Maintenance
.4
Pool and Spa
.4
Cleaning supplies
.4
Linen replacements
1.0
Guest supplies
2.0
Telephone
.2
Courier
.1
Printing & stationary
.2
Uniforms
Fixed cost of $5,000
Laundry supplies
.5
Airport Shuttle
.2
***NOTE: for the labor cost for the Front Office use 5% of revenue. For Housekeeping, calculate the actual amount based on the inclusion of the fixed salaries and the cost of the other wage personnel.
What needs to go into your report? What should it look like?
The report should be in a report style. That means it has a title page, a table of contents, an Executive Summary, the body of the report, recommendations, and appendices.
A title page and table of contents are, I believe, self-explanatory. (I suggest if you are Word, using their Headings and Page numbers, it makes creating a title page easy; easy to make and easy to change).
An Executive Summary is completed ONLY after the report is written. It is ONLY one page of information. What it tells is ONLY the important information, so that the executive, in this case the GM, can read ONLY this page and make the decision he needs to make. It is similar, but different, to an abstract, as it allows for a decision to be made.
The body of the report should be in sections using headings. Organize the information into categories that make sense. In the body of the report is where information is presented, and justifications are made. Remember this is the important part, your justifications. This is where your recommendations should be outlined.
Appendices are pieces of information that are referred to in the report but would be too cumbersome to include in the body of the report. This information is important. By including it as an appendix, it allows anyone reading your report to refer to the appendix for more detailed information. For example, you may in your report state that the total labor cost for the Rooms Division is less than 14%, as seen in Appendix A. Where Appendix A is the complete Revenue and Expense reportshowing that the cost is less than 14%.
As for the length of the report, that is up to you. You need to produce a report that addresses what was asked of you by your General Manager.

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