Maximizing profits with functional meeting areas

Abstract

The main object of this Master’s Thesis was to understand the potential of space optimization of hotels’ meeting rooms. Ideal objective was to find out how customers could get more value from versatile meeting areas to increase the profits of a hotel. Based on the results an outline of profit maximization with functional meeting areas was created. The outline helps to understand different variables when meeting room efficiency is improved. The goal in this research was to find out how to connect customer experience value and hotel operational excellence in meeting areas while optimising meeting room efficiency. Thus, the dots between value creators and GOPPAR (Gross Operating Profit) are connected. GOPPAR reveals how effectively a hotel is operated in relation to total number of available room nights. The theoretical framework deals with hospitality business, operational excellence and future trends and concepts of the industry. The hospitality business and operational excellence section includes revenue management with a deeper drill to hospitality industry KPI’s (Key Performance Indicators). Dynamic pricing and professionality of hotel staff were excluded from this research. This qualitative study was made using two different interview methods. Open interviews were used in the preliminary investigation phase and semi-structured theme interviews were used after preliminary investigation phase to create a deeper understanding of the research problem. Interviewees represented professionals from revenue management, hotel project management, real estate business, exhibition services and from hospitality business. All nine interviewees had a strong background from their own field from managerial positions. Interviews were implemented between June and September in 2021. Based on the results the research maximizing profits with meeting rooms is linked to many variables of the hotel. Using multiple indicators provides deeper understanding of the meeting room efficiency. Depending of the new concept which is implemented to meeting rooms, chosen KPI’s should be reflected through the GOPPAR. This reveals relation between the GOPPAR and the new revenue stream of the meeting areas. RefWorks citation tool with Harvard style was used in this thesis. According to commissioners wishes appendix two and results are not public.