Cmis 351 Assignment #1

648 words - 3 pages

Assignment 1: Using a Database for Strategic Business Development

Situation:

The Queen’s Inn does not have an automated reservation and bookkeeping system which causes inefficiencies and errors in its daily operations. By utilizing Microsoft Access, the Queen’s Inn will be able to manage their daily business more effectively and efficiently, ultimately reducing errors and costs. Employees will be able to create and confirm reservations with little to no errors and management will be able to easily see how the business is doing.

Summary of Results:

1. The average length of stay per room type varies according to the different room types of the hotel. The average length of stay is 3.00 nights in the Bay-Window rooms; 3.63 nights in the Ocean rooms; and 5.50 nights in the Side rooms. Based on this information, there is a correlation between the cost of the room type and the length of stay in a specific room type. Based on ...view middle of the document...

8 visitors indicating that it usually reserved by families.
• Side rooms have an average of 3.25 visitors indicating that it usually reserved by young family.

3. Based on the report: Summary – Base Income per Room Type, Ocean rooms generate the highest base income at $874.44, followed by Side rooms at $697.38, and then by Bay-Window room generating the lowest income for the hotel at $465.00.

4. The strongest customer base for The Queen’s Inn is 2 visitors per room. Based on the data, the base income is highest when there are 2 guests per room.

Recommendations:

The following business strategies might be pursued to increase room occupancy and revenue for the Queen’s Inn.

Advertising: Increase advertising to attract more customers to the hotel. The Queen’s Inn should advertise the hotel and the packages that they are currently offering i.e. the Romantic Package, the Vacation Package, and the Weekday Discount Package. Advertising would generate more awareness of the hotel, leading to increase room occupancy and increased revenue.

Incentive Program: Offer an Incentive Program for frequent/repeat customers. Guest could collect points towards a free stay, a free room upgrade, free parking, etc.

Pricing Strategies: As the supply is fixed at 30 rooms, The Queen’s Inn should increase the Daily Room Rate based on demand/occupancy to increase revenue. I.e. offer a higher Daily Rate per room during peak times (summer). While offering accommodating rates during non-peak times and also focussing on Ocean rooms to generate a higher base income.

Conclusion:

In order to provide better information for strategic decisions, the Queen’s Inn could improve their database by capturing additional information relating to the hotel. By adding additional columns to the reservation table (such as the frequency of visits, city of residence, etc.) would help the hotel better understand their customer base. Also, by adding additional tables to the database in order to track expenses (such as water, electricity, internet and cable services, hotel staff, etc.) the Queen’s Inn could view its costs in relation to revenue and determine where is could cut cost in order to maximize profits and operate more efficiently.

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