1. Redesigning work-life practices @ Central
  1. Far East Organization wins Best Integrated Communications (Merit) PRISM Award
  2. OPHL and Xiamen Harbour Group Co. Ltd to explore development of international passenger terminal wharf in Xiamen, China
  1. Giddit at LVL1
  2. LVL1 Loyalty card
  1. FirstLight
  2. Leaning from the best - France study trip
  3. In Appreciation
  1. Sky High Confidence - in Skyline Tower
  2. Sports City - A new shopping experience for sports enthusiasts
  3. Sino Land reports 310 percent increase in profit
  4. Sino A Caring Company
Archive Section
Disclaimer
Copyright Far East Organization 2004


Fluctuations in travel demand, higher guests’ expectations and uncertain economic conditions, have left hoteliers operating in an anomalous and competitive environment. Although examining the historical performance of a property is important, comparing this performance to hotels with similar operating characteristics is paramount to understanding how we are performing in relation to our peers.

Recognising this, Far East Organization has remodelled its hotel business over the last few years. To further refine our business processes, practices and improve operating efficiency, a team of seven spent a week last year in Paris and Lourdes, France, to identify, understand and learn from the outstanding practices of 20 hotel operators there. The range of accommodation visited included the most luxurious four-star palais hotels, the highest category of hotels in France with room rates of about Euro 500 (S$ 1,000) per room per night, to two-star budget hotels costing Euro 65-90 (S$130-180) per room per night.

To study the best practices of these hotels, the team identified operations, engineering, human resource and internal controls as areas to observe. Below are some interesting practices and observations gleaned from the trip:

Operations
To improve operations, the team observed the possibility to provide a complete service to guests through a one-call service centre. Other ideas are a no frills approach for hotels rated 3-star and below as well as placing greater consideration in the design and layout of the lobby to facilitate multi tasking by staff.

Engineering
4-star palais rated hotels, for instance George V Four Seasons, operate with a “too much is never enough” philosophy. Clever use of technology and the finest materials expected by discerning business and leisure travellers are utilised throughout their facilities and services. On the other hand, where a no frills budget hotel like St Catherine Hotel in Lourdes lacks in terms of amenities and hard products, it compensates with friendly service and a homely atmosphere.

Maintenance activities in the different grades of hotels are also invisible to guests. No unsightly scenes, smells and noise mar the total experience of the customer.

Human Resource
In measuring and comparing productivity gains between room attendants in Singapore hotels versus our French counterparts, the latter appears to be more productive. This means that Singapore hotel room attendants produce less percentage of goods and services in an hour’s work in comparison.

Internal Controls
Luxurious independent hotels with higher staff to room ratios are usually able to share out the various tasks expected in a hotel. However, in 3-star and less hotels, many functions are merged or facilities shared. For instance, the café and front desk could share the same cashier point.

Through this study trip, the participants were able to seek out and study how other hotels perform the same functional task or objective. The insight and ideas gained will affirm and support quality decision making by our executives. And by adapting and delivering these best internal practices in our Far East Organization Hotels, our operational performance can be greatly improved to meet the challenges of the time.