Siesta Inns

1
Siesta Inns

• Group 5
• Denise Biggs
• Doris Leung
• Muffadal Saylawala
• Tyler Smith

2
Overview

• Hotel chain operating 650 guestrooms in five
  major cities in the Southwest.
• The five hotels cater to different markets.
• Recently employed a central reservation telephone
  system to handle inquiries and reservations.

3
Siesta Inns Strategy?
4
Strategy

• Increased market share through expansion new
  areas.
• Expand existing hotels while increasing occupancy
  rates.

5
Control objectives of the central telephone
reservation system?
6
Control Objectives of the Central Reservation
System

• Improve customer satisfaction
• Improve efficiency of the reservation system to
  lower costs
• Prevent loss of market share
• Consistency in the quality of customer care

7
Organization Structure
Centralization Decentralization
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Organization Structure
Centralization Decentralization

• Central Reservation System
• Reservationists specialize
• Goal congruence

• Hotel Mangers
• Reservation Manager
• Managers have knowledge
• Goal Incongruence

9
Reservation System Manager
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Reservation System Manager

• Responsible for operating costs
• Evaluated on controlling operating costs
• Decision Rights
• Work schedule for part-time reservationists

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Motivated To?
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Motivated To?

• Reduce Costs
• Reduce number of reservationists

13
Hotel Manager
14
Hotel Manager

• Responsible for profit center
• Evaluated on operating income
• Decision Rights
• Establish room rates (within guidelines)
• Employees
• Food/Supplies
• Promotions

15
Motivated To?
16
Motivated To?

• Reduce costs
• Food/Supplies
• Employee costs
• Increase Revenue
• Charge highest price possible
• Promote hotel
• Increase occupancy

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Why might Tucson oppose?
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Why might Tucson oppose?

• Utilize the central reservation the least
• Pay the second highest amount of costs
• Occupancy rate does not significantly increase
• Cost outside of his control

19
Suggestions?
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Suggestions

• Allocate costs based on how much each hotel uses
  the system --- total calls
• Most fair and efficient
• You get exactly what you pay for
• Participating hotels come to a consensus on
  maximum holding time together
• Quality of Service Monitoring system

21
Questions?
Thanks!