How should we judge a government?

In Malaysia, if you don't watch television or read newspapers, you are uninformed; but if you do, you are misinformed!

"If you're not careful, the newspapers will have you hating the people who are being oppressed, and loving the people who are doing the oppressing." - Malcolm X

Never argue with stupid people, they will drag you down to their level and then beat you with experience - Mark Twain

Why we should be against censorship in a court of law: Publicity is the very soul of justice … it keeps the judge himself, while trying, under trial. - Jeremy Bentham

"Our government is like a baby's alimentary canal, with a happy appetite at one end and no
responsibility at the other. " - Ronald Reagan

Government fed by the people

Government fed by the people

Career options

Career options
I suggest government... because nobody has ever been caught.

Corruption so prevalent it affects English language?

Corruption so prevalent it affects English language?
Corruption is so prevalent it affects English language?

When there's too much dirt...

When there's too much dirt...
We need better tools... to cover up mega corruptions.

Prevent bullying now!

Prevent bullying now!
If you're not going to speak up, how is the world supposed to know you exist? “Orang boleh pandai setinggi langit, tapi selama ia tidak menulis, ia akan hilang di dalam masyarakat dan dari sejarah.” - Ananta Prameodya Toer (Your intellect may soar to the sky but if you do not write, you will be lost from society and to history.)

Wednesday, February 01, 2012

A bit on hotel management

Students of hotel management are taught about the number of room-nights of a hotel. For example, a 100-room hotel has a maximum of 36,500 (365 days x 100) room-nights in a year. The objective of hotel management is to maximise occupancy rate ( up to 100%) as much as possible. There is a physical limit to the amount of revenue which could be earned. If the average room rate is Rm100 per night, then the maximum revenue for a year is Rm3,650,000 (Rm100 x 36,500).

What the students are not taught is the practice of small hotels which cater to day-use guests. This would throw out the earlier statement of a maximum of 100% occupancy, as well as the maximum revenue based on that assumption.

We know why some budget hotels indulge in catering for day-use guests, though there are some genuine cases of people who needed a room for a couple of hours to catch up on sleep and to freshen up before they proceed on a long journey. It is obvious that such hotels with hourly rates cater mainly for prostitution, with the management or staff secretly providing it or 'closing one eye and shut the other' where arrangements are made elsewhere. There are also cases of married men or women indulging in adultery using such facilities.

It is therefore understandable that there is a certain stigma attached to hotel management, especially in small budget hotels. The set-up is such that it is so convenient to indulge in illicit sex in the privacy of a room. In terms of maximising revenues, the limitations based on strict conventional rules are lifted when management indulges in illegal practices. Just imagine the hypothetical case of maximum hours of use in a year! Using the above example, 24 hours x 365 days x 100 rooms, is equal to 876,000 hours! Even at Rm10 an hour, theoretically, the maximum revenue can reach Rm8,760,000! This is more than double that based on room nights. Or, using a more practical 2-hour example, even at Rm10 per two-hour, the maximum revenue is Rm4,380,000, which is also more than that based on room nights. Of course, we must also bear in mind and provide for the increase in variable costs like room maids' wages and laundry charges.

From a practical point, whether a hotel is suitable for a conventional hotel, a day-use hotel or a mix of both, would depend on the location and the people's preference. This could be gauged on a trial basis. If morality is not a problem, and management is involved in prostitution as well, the revenues could skyrocket!

Is it any wonder why some small hotel operators are laughing all the way to the bank, with most of their incomes unreported and therefore untaxed, while 5-star and above hotels report losses mainly because of extremely huge initial capital outlays and very high overheads and operating expenditures? I always believe big international hotels are owned by wealthy people who wish for status and high profile visibility, and not profitability, at least not according to what is shown in the accounts.


hotel management said...

Thanks for sharing nice information.I have been looking information on the hotel management.This discussion has solve my concern to a great extent..

KoSong Cafe said...

Thanks for your comment. One thing unique about room sales is that each room-night must be sold, otherwise it is lost forever. This is why during off-peak periods, discounts have to be given in order to fill the rooms. So long as the room rate is high enough to cover the variable costs, leaving some to contribute towards overheads, it is better than having empty rooms.