Simulation for Hotel and Restaurant Management books/Cesim Hospitality... · 2019-12-17 · Cesim...

Cesim Oy | cesim.com | tel: +358 9 406 660 | Kalevankatu 16 B, 00100 Helsinki, Finland

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Introduction to

Simulation for Hotel and Restaurant Management


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What is Cesim Hospitality?

Learning Goals

Cesim Hospitality is an interactive hospitality simulation game which focuses on running a hotel and a hotel restaurant.

The simulation integrates concepts from various hospitality management related functions, including revenue management, sales channels, menu engineering, housekeeping, maintenance, staffing, and procurement.

The use of the simulation is done with an on-line platform that provides flexibility and independence of the delivery formats. Participants only need a computer with internet connection and a browser.

Competition against other teams makes the learning experience motivating and fun.

ü To develop the participants’ capabilities in identifying, analysing, and acting on the key operational & environmental variables that influence hotel and restaurant operations

ü To enhance fact-based analytical decision-making and illuminate the financial implications of operational decisions by linking the decisions to cash flows and bottom line performance.

ü To review concepts and ideas concerning the hospitality industry as well as general business management, deepening their understanding by demonstrating them in a concrete context.

ü To give students practical experiences in teamwork and problem solving and excite competitive spirits in a dynamically evolving marketplace.


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Learning Process

Web-based SolutionThe simulation is completely web based. There is no need to install any separate applications and the simulation can be accessed from any computer that has an internet connection.

The simulation platform allows team members to work virtually if they wish. Each team member has her/his own account that enables them to make decisions and scenarios on their own and later combine the outcomes with the other team members on the [decision checklist] -page.

The platform also includes a communications forum that can be used to communicate within teams and between all teams in one market.

Concrete experience____________________

Decision making

Observations & reflections____________________

Results & Teamwork

Applying new ideas____________________

Analysis & Planning

Generalizing fromthe experience

____________________

Lectures & Discussion


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Simulation Platform StructureThe simulation platform includes the following pages:

[Home] - Overview page with deadlines

[Decisions] - All decisions are made under ’Decisions’

[Results] - Results become available in this area after each deadline

[Schedule] - Simulation schedule is available on this page

[Teams] - Teams and team members in your market can be viewed here

[Readings] - Access to the decision-making instructions and case description

[Forums] - Access to the discussion forums for team and market


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Simulation OrganizationEach simulation market consists of 2-12 teams, with 1-8 members in each. The number of parallel simulation markets is not limited, making it possible to utilize the simulation for any number of students in the class.

All teams are starting from exactly the same position, with similar market shares and profits. Equally, teams will face the same market conditions during the simulation.

Note that the teams compete against other teams in their own market, not against a computer. The decisions of each team influences the other teams’ results and the market development overall.

Course Registration Process1. Go to Cesim website www.cesim.com

2. Find the “Register” link on the top right corner of the home page

3. Use a valid e-mail address in the registration. E-mails are used only for in-game purposes.

4. Use the course code to register in to the right course.

5. Follow the on-screen instructions and confirm your registration.

6. After logging into the game user-interface, find the “Readings” tab on the top.

7. Read the Decision-making guide, case description, and whatever additional material has been provided. You can also find the video tutorial there.

8. Study the market outlook on the “Outlook” tab.

9. Start the decision making process!

https://www.cesim.com/


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Flow of operations

After the introduction, the teams familiarize themselves with the decision making process via a practice round. The results of the practice round will not have any influence on the actual game results.

The instructor decides the number of actual decision making rounds (5-12) and decision making follows the cycle on the right.

Note that it is not possible to modify the decisions after the round deadline. If the team has not saved its decisions for a round, the system will automatically use the results of the previous round.

Main Objective & Winning CriteriaThe main objective for the teams is to deliver sustainable, profitable growth. In Cesim Hospitality this is measured by cumulative profits during the decision-making rounds.

The instructor may, at his/her discretion, choose to use other criteria to measure the performance of the teams.


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Decision Making FundamentalsDecision making is round based. One decision making period corresponds to two weeks of real time.

In the beginning of the game, so called ‘initial round results’ are available. These can be used as a starting point for the practice round decisions. After the practice round, the situation is cleared back to the initial, and decisions will be made for the first round.

The manual and the case description should be read before the practice round. The market outlooks should be read before starting to make decisions for each round. A new market outlook containing information about the market development becomes available as soon as the previous round has passed.

Decisions are entered in the grey cells. These will be used in the actual calculation of the results.

Estimations are entered in the blue cells. These will not be used for the calculation of the results, but they are important because together with the decisions they form the basis for the budgets.

Drop-down menus are used in certain decisions where there are some specific options to choose from.

Business Case: Hotel CesimHotel Cesim is a medium-sized, high-end hotel in Cesim City. The hotel has been operational for 20 years and gained a good reputation during these years. There are three groups of customers in this hotel; leisure customers, business customers and conference customers. In addition, the hotel also operates a restaurant.

The team will develop and execute operational strategies and the success will depend on the team’s capability to manage revenue and cost both in hotel and restaurant operations. Careful analysis, good planning, and team-work are the main keys to success.


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The participant UI

Instructor toolsCourses• Course creation and administration (moving participants from one team to another, deleting

participants)• Course scheduling (round deadlines etc.)• Access to logs and metrics• Access to individual team-member’s area

Access to results and teams’ decisions for review• Sneak-preview on results• Analyzer• Decision logs

Case management

Materials• Instructor can upload and share materials to participants

Forums

Participants are provided with a decision-making tool that helps them to try and practice with different scenarios as well as analyse the outcomes of their decisions and projections. In addition, the simulation generates a range of reports that will help the teams to analyse and benchmark their own performance against their competitors.

• Decision views

• General information concerning the current season (”Outlook” view)

• Budget view showing revenue and cost items automatically combined from decisions and estimates given on other views

• Reports covering operational, financial and other outcomes from previous rounds

• Forums for discussion with other team members and with other articipants and instructors

• Team information, settings, schedule viewer and other administrative UI features


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Decisions: Restaurant

Decisions: Housekeeping

The restaurant function is operationally divided to the kitchen side and the dining room side

Decisions:• Restaurant staff level - Number of kitchen staff for weekdays/weekend - Dining room staff; can be adjusted on short notice by outsourcing• Dish selection by raw material, preparation style and time spent in detailing• Pricing and sales estimations• Beverages; selction (limited - wide)• Materials – raw, semi-finished, frozen• Seating, crowded – sparse• Sales estimates

The Desk function covers managing the reception and the sales office

Decisions:• Front desk manager focus• Desk staff level - For weekday/weekend shifts• Room rates - Current season/next season/next to next season x weekend/weekday• Promotion decision

Decisions: DeskThe Desk function covers managing the reception and the sales office

Decisions:• Front desk manager focus• Desk staff level - For weekday/weekend shifts• Room rates - Current season/next season/next to next season x weekend/weekday• Promotion decision


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Decisions: Maintenance

Decisions: Procurement

Decisions: HR

The maintenance function keeps the facilities in working order, makes repairs of all sorts and directs renovation projects

Decisions:• Maintenance priorities; Which facilities and/or types of problems or projects are given priority• Manager focus in maintenance to be selected

• Raw-materials, beverages, room consumables• Decision how much to purchase• In case of too low purchase the gap will be filled but with higher costs• Spoilage may happen if purchase too much

• Staff training using external trainers (in addition, key personnel focus areas can include some staff training options)

• Staff compensation, including bonuses• Target staff size and target capability level (”quality”) of new recruits per personnel group

- With staff turnover and compensation decisions this leads to total recruiting and new-worker training needs. Compensation and capability requirements determine the availability of the specified staff.

• Policy selection of using extra hands on need basis


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Outcomes of the decisions

Reports

The decisions of each team have several kinds of consequences• Immediate results for the team, shown in reports after the round

for example, room vacancy and total revenue – see Reports• Longer-term effects for the team, affecting success in later rounds

for example, staff skill level reached• Cumulative degree of success with respect to some victory criteria

such as cumulative return for hotel owners’ capital over time• Effects to the success of other teams competing in the same group

for example, low room price attracts customers that could otherwise find their way to the other teams’ hotels

• Competitor reactions - for example, if a mid-price, excellent-service strategy seems to work brilliantly for one team,

other teams are likely to emulate this approach on later rounds, leading to intensified competitive pressures

• Key figures report• Hotel operations and satisfaction report• Restaurant operations and satisfaction report• Personnel report• Facilities report• Financial reports

- Financial statements- Cash and borrowing calculations- Revenue splits (different splits: weekends/weekdays; rooms/restaurant)- Cost splits (different splits: weekends/weekdays; rooms/restaurant)- Key ratios

More informationCesimKalevankatu 16 B 00100 Helsinki, Finland

Tel: +358 9 406 660

www.cesim.com [email protected]

Technical [email protected]

https://www.cesim.com

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Simulation for Hotel and Restaurant Management books/Cesim Hospitality... · 2019-12-17 · Cesim...

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