Thesis Archive

A system study on the service system of Victoria Court Mac Arthur (2010)

Favor, Kristoffer G.
Langga, Darwin V.
Restituto, Paolo Marco B.

Abstract:

-Victoria Court Mac Arthur is a drive in hotel with the mission “IN PURSUIT OF EXCELLENCE: In Customer Service, In Developing its Products, In Developing Its People, In Supporting the Community and in Dealing with its Business Partners.” It is a leader of the motel industry comprised of five major players.

This study is concerned with the service system of the Victoria Court Mac Arthur. The problem being addressed is that there is a very low 32% occupancy rate for the rooms of Victoria Court Mac Arthur in the year 2008. It is Victoria Court Mac Arthur’s top priority problem because they have lost the opportunity of earning PHP 11,900,369 had this rooms been occupied. The process owners and the proponents of this thesis believe that they have time and resources to solve this problem.

The problem has the following specifications: What: There is only 32% average occupancy rate for all the rooms versus the expected 70% for lean months and 80% for peak months. Where: The 16 Deluxe rooms which are only 15% occupied, 10 Suite rooms which are only 17% occupied and the Standard rooms occupied for 48%. When: January to December especially the months of March to May of 2008. How Much: PHP 11,900,369 possible increase in income if the rooms were fully utilized.

Its main causes are: 1. Location (a) The problem with regards to location was the compromise of the customer’s privacy. Due to the stigma of the service being offered, any detrimental factor, however small, may affect the patronage of the branch. 2. Price (a) Catering to the C, D, and E markets, promotions or “freebies” that can be offered may significantly boost the occupancy rate and in turn, the revenues. 3. Product (a) Cleanliness plays a vital factor in the patronage of VCMA. However, intensive data gathering is required in order to identify the specific subfactors that can affect the seemingly qualitative aspects. According to data gathered, the different senses are being employed in assessing the cleanliness of the room not just the sight or by judging the appearance.

The following are recommended to partially solve the problem: 1. To have a free taxi service from nearby establishments where guests will be picked-up and dropped-off 2. To give a free extension of one hour for every check-in during off-peak time during the months of March to May 3. To have a new maintenance policy in which contains the regularly clean the bathrooms even if it is not used 4. To have a maintenance policy which beddings in the inventory will be washed after some period of days without being used 5. To have a quality control and tracking system for linens 6. To replace the king size beds in rooms 12, 28 and 37 7. To have a maintenance policy regarding the simple repair on the room and furnishings.

These solutions are expected to result to the following: 1. Overall additional Expenses in the form of profit deduction of PHP 90 per check in as effect of the solution to address the accessibility and location problem. 2. Additional cost due to investment of PHP 120,000 for quality control system, PHP 33,000 for furnishing solution, PHP 72,000 for cleaning carts, PHP115,000 for air cleaner and additional Utilities cost. 3. An increase of Annual Net Income of PHP 1,511,006 brought by increase in Occupancy Rate to 84% from 32%. 4. Reduction of Complaints and Increased Customer Satisfaction as benefit of an improved service system. This implementation of the recomended solution is proposed to start on February 1, 2010 and end at April 30, 2010.

Adviser:

Mr. Richard Li