The Ritz-Carlton - Ritz Club (6)
The Ritz-Carlton Club, the fractional residence division of the Ritz-Carlton Hotel Company, requested Carpedia to review its Housekeeping and Concierge functions across its brand. The clubs are located in mostly remote locations serving an affluent clientele who have purchased ownership in this exclusive member only vacation club. The properties in the brand are located in JupiterFlorida, St. Thomas Virgin Islands, Abaco Bahamas, Bachelor Gulch Colorado, Aspen Highlands Colorado & San Francisco California.
The project was designed to improve service and productivity for all positions in both the housekeeping and concierge departments. The objective was to generate $818,000 per annum in savings with only a positive impact on member satisfaction levels. The methodology learned through this project is to be replicated, with the intention to roll it out to other RC clubs as they come on line over the next few years.
The project is on pace to generate the required savings providing a 3:1 return on the project investment.
Some of the method changes put in place to achieve the results included:
- Modified method and responsibilities for stocking carts
- Reduction of multiple trips into the homes by utilizing caddies for linens and cleaning materials
- The staggering of shift start times to avoid morning idle time due to member privacy signs
- Scheduling based on room occupancy in the home versus home occupancy alone
- Schedules based on member’s preferred time of service
- Combining roles and responsibilities of the front desk agent and the concierge to reduce idle time
- Utilization of a concierge floater position to increase service levels and reduce idle time
- Implementation of a problem resolution process to increase member satisfaction
- Elimination of the night auditor position by shifting auditing functions to the evening shift
In addition, the Club leaders have been trained on the Carpedia methodology and are playing an increasingly significant role in the sustainability of the changes.
Case Study: Mandarin Oriental Miami
Mandarin Oriental Miami (MOMIA), along with the rest of the tourism industry, was facing challenges sustaining their guest volumes and revenues.
In addition to the changing markets, seasonality in Miami has always existed with significant dips in volume during the summer months. MOMIA invited Carpedia to conduct an analysis of their Rooms (including Housekeeping and Laundry) and Food & Beverage operations (including Banquets, Cafe Sambal - their 3-meal restaurant, In-Room Dining and Culinary) to determine if there would be more effective ways to execute their services and plan to achieve enhanced financial performance given their immediate and chronic volume fluctuations.
A critical component of the project design was to not only improve operating margins, but to ensure that there was no negative impact on the guest experience. Based on the opportunities identified during the analysis, a project was launched to tackle these obstacles.
At the conclusion of the project, savings between the areas annualized to 60% above the original objective. Key changes in the Rooms Division included:
- Reduced start up time by batched pre-stocking of Housekeeping carts
- Reduced cycle time for guest request deliveries through the pre-staging of supplies
- Improved assignment of rooms based on both room type and status
- Decreased rework in servicing rooms by designing a standard cleaning sequence
- Limited travel time through the development of a floor optimization system to minimize the number of floors in use by the hotel during low volume periods
Key changes in the Food & Beverage Division included:
- Reducing rework by minimizing stewarding touch points
- Decreased event set up time by pre-staging carts with required materials
- Improved order preparation and percentage of on-time deliveries through the development of an expediter process in In-Room Dining
- Limited administrative time through the creation of automated Private Bar assignments
- Improved outlet forecasting methodology to more accurately predict Culinary production needs and staffing requirements across all areas
“The changes that I have seen in our leaderships’ understanding of their departmental performance have been invaluable. The improvements associated with the new planning tools, their ability to show managers that each day is different and consequently requires different resources, have provided my leaders with a methodology to ensure that high levels of service are provided without the excess cost.”
Executive Vice President
Mandarin Oriental - Miami