Chapter 4 Budget Hotel

Chapter 1:                        Operational Plan

First of all, operational planning is aimed to help our budget hotel to increase the efficiency, improve the services provided and reduced the costs. Therefore, our hotel management sets and carefully monitors meaningful cost controls while not reducing any quality of services which provided by our hotel. It is important that to control the cash flow of hotel which just open for business. Besides that, the rates of the rooms which according the seasoning was structured, checked daily through our guest tracking report and changed as market conditions warrant. This is the way we try to concern about the satisfaction of the customer and try to improve the services if there was any unsatisfied by the customers. We priced the rates of the room which not higher than the market price. So that, the maximum of rate via yield management is an integral part of the operations strategy. Furthermore, the payroll is analyzed daily, energy costs controlled, preventive maintenance programs are established by an operations manager who in charge to operate those planning.

1.1         Operations Objectives

·         To satisfy the customers by providing the best services in our budget hotel.

·         To provide the comfortable environment for the customer who live in our budget hotel.

·         To improve the services provided by our budget hotel by reviewed the feedback of customers.

1.2         Operations Process

There are two methods which can reserve our room which were online reserving or walk-in reserving. By using online reserving methods, customers can book the room through our container hotel website which is http://www.ccbconstruction.com.my/containerhotel. After logging into the web page, guests kindly requested to fill in the information like the departure dates, numbers of person and the types of the room which wish to book. Guests have to make the deposit payment after finished filling the all information which requested by the web page. Lastly, once the rooms requested by the guests is available and agreed to the rates, the reservation is confirmed by the reservation assistant by the advance deposit through various modes and the confirmation number is given to the guests as a proof that the room is booked. In case of any changes or cancellation is made by the guests, the details must be attached with reservation form and updated to the latest requirement of the customers.

The walk-in reserving room was quite similar to the online reserving which the guests have to say the exact numbers of the person who was going to stay in our hotel. Therefore, the receptionist at the counter can provide the most suitable room for the guests. Once the guests agreed with the rates and the type of the room, guests can make the payment immediately. After making the payment, guests can check in and stay in our hotel instantly.

1.3         Capacity Planning

Container hotel was working for 24 hours which similar with the 7-eleven marts in all over the world. By this way, it brings convenience to the guest who would like to stay in a hotel while at the midnight. Besides that, it is also expected that the 24 hours working hours can slightly increase the profits.

1.4         List of Equipment

Table 4.1: List of Equipment

Item	Quantity	Unit Cost(RM)	Total Cost(RM)
1.      Single Bed	20	200.00	2600.00
2.      Double Bed	6	500.00	3000.00
3.      Double Decker	4	650.00	2600.00
4.      Pillow	40	40.00	1600.00
5.      Blanket	30	65.00	1950.00
6.      Single Bed Sheet	30	20.00	600.00
7.      Double Bed Sheet	15	30.00	450.00
8.      Towel	50	30.00	1500.00
9.      Hanger	50	3.00	75.00
10.  Wardrobe	16	400.00	6400.00
11.  Mirror	16	45.00	720.00
12.  Lamp	16	100.00	1600.00
Total:			24,495.00

1.5         List of Machinery

Table 4.2: List of Machinery

Item	Quantity	Unit Cost (RM)	Estimated Value (RM)
1.      Air-conditioner	16	1500.00	24,000.00
2.      Water Heater	16	450.00	7200.00
3.      Vacuum Cleaner	3	450.00	450.00
4.      Computer	3	2500.00	2500.00
5.      Washing Machine	3	1500.00	1500.00
6.      Clothes Dryer	3	750.00	2250.00
Total:			41800.00

1.6         Operation Budget

Table 4.3: Operation budget of Container Hotel

Particulars	Fixed Assets (RM)	Monthly (RM)	Total (RM)
Fixed Assets
Operation Equipment	341,345.00		341,345.00
Working Expenses
Maintenance		833.33	833.33
Salary		12,700.00	12,700.00
SOCSO Contribution		222.00	222.00
EPF Contribution		1,397.00	1,397.00
Utilities		4,750.00	4,750.00
Total	341,345.00	19,902.33	361,247.33

1.7         Layout Plan

Figure 4.1: Layout plan of Container Hotel

1.8         Risk Assessment

Risk assessment is a structured and systematic way for identifying hazards and evaluating risks in order to reduce risks to a tolerable level by prioritizing and it highlights systematically how hazards can occur and provide an understanding of their nature and possible consequences, improving the decision making process for the most cost effective ways to prevent EHS damage. Therefore, conducting hotel business may be facing a variety of risks which could affect the hotel. However, entrepreneurial success cannot be achieved without taking any risk. We need to carry out a proper risk management to control the risk associated with the strategic objectives of the business and to maximize the strategic potential.

1.8.1             Risk of Loss

This can be caused by the factors like bad business decisions, recessions and other changes in the market. Normally that may cause problems to a business, especially during the first year of operations due to the inexperience of decision making and this eventually translates to losses. Bad decision might reduce the guests to stay in our hotel which causing our hotel loss. If a hotel is not making profit as enough, it will make certain hotel suffer the loss and end up the hotel.

1.8.2             Competitive Risk

In Malaysia, there were plenty numbers of budget hotel which built and locate in Pulau Penang. Due to this condition, people will compare the budget hotel which located in the BatuFerringhi with our container hotel. If the services provided by container hotel was not good as the other competitor. This may reduce the numbers of guests who willing to stay in our container hotel.